Hitachi Sustainability Report 2016

Contents

1

Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Contents
Introduction

02

How to Use This Report

02

Fair Operating Practices

Editorial Policy

02

Promoting Work Practices in Line
with International Ethics Codes

52

Hitachi and Society

04

Engaging in Responsible Procurement

54

Management Approach
Leadership

Customers (Consumer Issues)

09
10–11

52–57

58–65

Pursuing Customer Satisfaction

59

Ensuring Accessibility to Products and Services

61

63

CEO’s Message

10

Ensuring Thorough Management of Quality and Safety

Executive Officer’s Message: CSR and the Environment

11

Community Involvement and Development

66–67

12–23

Promoting Sustainable Community Involvement
and Development

66

Recognition of Social Responsibility
Realizing Sustainable, Innovative Management

12

Understanding Issues Through Dialogue
and Taking Part in Initiatives

19

Review and Improvement of CSR Activities

24–27

Enhancing CSR Management

24

Activities

28

Corporate Governance

29–37

Pursuing Management Transparency and Efficiency

29

Sharing a Hitachi Group Identity

33

Advancing Risk Management on Multiple Fronts

35

Human Rights

38–40

Respect for Human Rights Throughout the Value Chain

38

Respect for Workers’ Rights

40

Environment
Promoting Environmental Management

69

Enhancing Environmental Management
on an Ongoing Basis

72

Responding to Environmental Risks and Opportunities

81

Reducing the Environmental Burdenof Our Business Operations (Fiscal 2015 Results)

82

Preserving Ecosystems

91

Performance Data

93

Key Indicators

94–95

Overview of Financial Results,
Board Members, and Employee Data

96–97

Main Assessments and Awards

98–99

Independent Assurance

Labor Practices

41–51

Achieving a Fair and Equitable Work Environment

42

Promoting Diversity and Inclusion

42

Promoting Occupational Health and Safety

47

A Strategy for Growing Together
with Our Global Human Capital

49

68–92

100

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

How to Use This Report
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Contents

1

Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Category Tabs
Go to the beginning of the corresponding section

Editorial Policy
Basic Concept
We are continuously improving our CSR activities in linewith the ISO 26000 international guidelines for CSR andhave identified nine key themes for our CSR Management
Framework: (1) recognition of social responsibility, (2)corporate governance, (3) human rights, (4) labor
practices, (5) environment, (6) fair operating practices, (7)customers (consumer issues), (8) community involvementand development, and (9) review and improvement of
CSR activities.

With reference to these nine key themes, the Hitachi
Sustainability Report 2016 details the social andenvironmental issues that are vital to the sustainability of
our operations and society, presenting our stance and theactivities undertaken in fiscal 2015.
Inasmuch as the report is a tool with which weengage with our stakeholders through honest andtransparent disclosures of information, it contains ourbasic policies, promotion systems, key performanceindicators, and specific measures for our CSR initiatives inline with the disclosure provisions of the GRI Sustainability
Reporting Guidelines (G4).

What This Report Covers (Boundary of Reporting)
Period:The main period covered is fiscal 2015 (April 1, 2015, to March 31, 2016)

Companies:

1,306 companies, namely Hitachi, Ltd. and 1,305 consolidated subsidiaries (including 249 equity-method affiliates)

Boundary of Data:

Financial data:

1,306 companies, namely Hitachi, Ltd. and 1,305 consolidated subsidiaries (including 249 equitymethod affiliates)

Social data:

Boundary of data indicated under each indicator

Environmental data:

1,057 companies, namely Hitachi, Ltd. and 1,056 consolidated subsidiaries. However, for environmental
performance data associated with Hitachi’s business operations, Hitachi, Ltd. and consolidated subsidiaries
whose environmental load comprises 90% of the total (based on Hitachi calculations) are included.

Reporting Cycle:

Published every year as an annual report

Date Published:

October 2016

* The data for each fiscal year are the results according to the boundary of data in that fiscal year.
* The base fiscal year data has been revised to match the boundary of data for fiscal 2015.

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Hitachi Sustainability Report 2016

Management Approach

Activities[Symbol Marks Used in This Report]* Technical terms, proper nouns, tables, diagrams, etc.
requiring explanation[Hitachi References in This Report]
Hitachi, Ltd.: Information on or initiatives of Hitachi, Ltd.
Hitachi and the Hitachi Group: Information on or initiatives of
all Group companies in and outside Japan[Key Guidelines Referred to in Preparing This Report]• G4 Sustainability Reporting Guidelines, Global Reporting
Initiative• Environmental Reporting Guidelines (2012 version),
Ministry of the Environment, Japan• Environmental Reporting Guidelines 2001—With Focus on
Stakeholders, Ministry of Economy, Trade and Industry,Japan

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

Performance Data

Disclosure of Financial and Non-Financial Information
Hitachi, following closely the deliberations of the European
Union (EU) and the International Integrated Reporting Council(IIRC) about non-financial disclosure, presents information tomatch the needs of stakeholders reading this report.
To date the Annual Report has mainly presented
financial information, while the Hitachi Sustainability Reportmainly presented non-financial information. Starting in 2016
the Hitachi Integrated Report will present both financial andnon-financial information in showing how Hitachi is striving
to create value. The Hitachi Sustainability Report willcontinue to serve as a comprehensive tool providing detailed
non-financial information.

Non-Financial Information Reports
The Hitachi Sustainability Report 2016 provides non-financial information toinvestors, auditors, and CSR experts in an easily searchable, interactive PDF
format (A4, 102 pages).
The CSR website contains not only the contents of this report but also
examples of environmental conservation activities and news releases to provide
up-to-date information to our diverse stakeholders.

Hitachi Integrated Report 2016

Hitachi Sustainability Report 2016

Financial Information Reports

WEB Investor Relations
http://www.hitachi.com/IR-e/ SR (Corporate Social
WEB C
Responsibility)
http://www.hitachi.com/csr/* Information about Hitachi, Ltd. is also disclosed in the
Annual Securities Report and the Report on the 147th
Business Term.

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

Independent Assurance
To enhance the credibility of this report, we have engaged
KPMG AZSA Sustainability Co., Ltd. to provide assurance
on environmental and social performance indicators. Thisassurance was carried out in accordance with theInternational Standard on Assurance Engagement (ISAE) nvironmental Activities
WEB E
http://www.hitachi.com/environment/G lobal Community Relations
and Activities (Social
Contribution Activities)
http://www.hitachi.com/csr/sc/
WEB

3000 and 3410, as well as the Practical Guidelines for the
Assurance of Sustainability Information of the Japanese
Association of Assurance Organizations for Sustainability
Information. Performance indicators for fiscal 2015 thathave been assured are marked within the report.

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

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

Hitachi Group Profile
Company Profile (as of March 31, 2016)
Corporate name

Hitachi, Ltd.

Incorporated

February 1, 1920 (founded in 1910)

Head office

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

Representative

Toshiaki Higashihara
Representative Executive Officer, President, and CEO

Capital458.79 billion yen

Number of employees

37,353 (unconsolidated basis)335,244 (consolidated basis)

Number of consolidated subsidiaries(including variable interest entities)

1,056 (Japan: 262, outside of Japan: 794)

Number of equity-method affiliates

249

Consolidated Financial Highlights for Fiscal 2015, Based on the International
Financial Reporting Standards (IFRS)Revenue

10,034.3 billion yen(up 3%, year on year)

EBIT*1531.0 billion yen(down 1%)

Income from continuing operations, before income taxes

517.0 billion yen(unchanged)

Capital expenditure*2

528.5 billion yen(up 23%)R&D expenditure

333.7 billion yen(unchanged)

Total assets

12,551.0 billion yen

Overseas production as percentage of revenue

26%*1 EBIT: Income from continuing operations before income tax, less interest income, plus interest charges.
*2 Since fiscal 2015, the amount of investment in leased assets that fall under the heading of finance and leases included inconventional capital expenditure are deducted from capital expenditure for disclosure.
Note: Hitachi’s consolidated financial statement is prepared based on the International Financial Reporting Standards (IFRS).

Revenue and Income from Continuing Operations, Before Income Taxes(billion yen)
12,00010,000(billion yen)

8,000

1,200

10,034.3

9,774.9

9,666.4

1,000

678.4

800

518.9

6,000

517.0

600

4,000

400

2,000

200

0
Revenue (left scale)

2013

2014

Income from continuing operations, before income taxes (right scale)

2015

(FY)

0

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Other Areas459.0 billion yen (5%)
Number of Companies:
89
Number of Employees:
10,802

Revenue and Ratio by Region(Consolidated for fiscal 2015, based on IFRS)

Asia
2,112.3 billion yen (21%)
Number of Companies:
399
Number of Employees:
95,496

Revenue by Region
Japan 5,231.5 billion yen
Overseas 4,802.7 billion yen

Europe951.1 billion yen (9%)
Number of Companies:
194
Number of Employees:
19,984Japan
5,231.5 billion yen (52%)
Number of Companies:
263*1
Number of Employees:
187,936*1 Including Hitachi, Ltd. and 262 consolidated
subsidiaries in Japan.

North America
1,280.3 billion yen (13%)
Number of Companies:
112
Number of Employees:
21,026

Revenue and Ratio by Segment

Financial Services
365.3 billion yen (3%)(Consolidated for fiscal 2015, based on IFRS)Others (Logistics and Other Services)1,252.7 billion yen (11%)
Smart Life & Ecofriendly Systems
681.0 billion yen (6%)
Automotive Systems
1,001.1 billion yen (9%)

Information & Telecommunication Systems
2,109.3 billion yen (19%)
Subtotal of
Revenue by Segment
11,192.7 billion yen

Social Infrastructure & Industrial Systems
2,333.1 billion yen (21%)

Consolidated Revenue
10,034.3 billion yen

High Functional Materials & Components
1,564.0 billion yen (14%)

Electronic Systems & Equipment
1,127.6 billion yen (10%)

Construction Machinery
758.3 billion yen (7%)
Notes:• Since April 1, 2015, Power Systems has been integrated into Social Infrastructure & Industrial Systems.
• Hitachi Transport Systems, Ltd. included in Other became an equity-method affiliate of Hitachi, Ltd. as of May 19, 2016.
• Hitachi Capital Corporation, which consists of Financial Services, is scheduled to become an equity-method affiliate of Hitachi, Ltd. in October
2016, pending regulatory approval.

Key Business Segments for Social Contributions
The issues humanity faces are becoming global in nature:environmental problems like climate change and ecosystemdegradation, as well as energy, water, resource, and foodshortages, urban population growth, and the graying ofsocieties. As a global corporate citizen, Hitachi engages inbusiness worldwide in social infrastructure and many otherfields, thereby creating both economic and social value in orderto address these issues and contribute to a sustainable society.

Main Products and Services
Systems Integration, Consulting, Cloud Services, Servers, Storage,
Software, Telecommunications & Networks, ATMs
Principal Consolidated Subsidiaries (as of March 31, 2016)
Hitachi Information & Telecommunication Engineering, Ltd., Hitachi-Omron
Terminal Solutions, Corp., Hitachi Computer Products (America), Inc.,
Hitachi Computer Products (Europe) S.A.S., Hitachi Financial Equipment
System (Shen Zhen) Co., Ltd., Hitachi Solutions, Ltd., Hitachi Systems, Ltd.,
Hitachi Consulting Corporation, Hitachi Data Systems Corporation, Hitachi
Information & Telecommunication Systems Global Holding Corporation

Information & Telecommunication Systems
Hitachi provides IT services that address customers’
diverse needs by combining Hitachi’s extensive expertisein a diverse range of business fields including financial
services with advanced information technology. Ourservices cover the entire life cycle of systems, ranging
from consulting to system integration, operation,
maintenance, and other support.
Locations of our business operations:Over

100 countries and regions

To contribute solutions to issues facing society and ourcustomers, we provide IT solutions worldwide, particularly
storage solutions supporting data utilization.

A Hitachi storage system.

Revenue
2,109.3 billion yen

Adjusted operating income
141.3 billion yen

EBIT
109.1 billion yen

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Hitachi Sustainability Report 2016

Management Approach

Activities

Social Infrastructure & Industrial Systems
Hitachi provides infrastructure products and services thatform the underpinning of people’s daily lives and theircommunities, such as rolling stock and train management
systems, power plants and transmission/distribution
systems, elevators and escalators, and water treatment
systems. In addition, it offers industrial equipment andenergy-saving solutions that help reduce theenvironmental impact on our society. Hitachi leverages
technological capabilities and products developed overmany years to maximize the efficiency and reliability.
Business operations are focused on industrial equipment
and plants in the Asia region, railway systems in the
United Kingdom, and elevators in China.
Ultrafast elevator speed:

Performance Data

As of the end of March 2016, Hitachi Medical Corporation(currently the Healthcare Business Unit, Hitachi, Ltd.)*1 hadshipped MRI medical scanners to 87 countries. Throughdevelopment of these scanners and other medical equipment,
Hitachi contributes to realizing a safe and secure society inwhich people live healthy lives.
Main Products and Services
Semiconductor Manufacturing Equipment, Test and Measurement
Equipment, Advanced Industrial Products, Medical Electronics Equipment,
Power Tools
Principal Consolidated Subsidiaries (as of March 31, 2016)
Hitachi High-Technologies Corporation, Hitachi Koki Co., Ltd., Hitachi
Medical Corporation, Hitachi Kokusai Electric Inc.

1,200 m/min (72 km/h)

In 2016, Hitachi is scheduled to deliver elevators traveling
1,200 meters per minute (72 kilometers per hour) for the
CTF Finance Centre, 530 meters tall, under construction in
Guangzhou, China.
A proton beam cancer therapy system.

Main Products and Services
Industrial Machinery and Plants Solutions, Water Environment Solutions,Elevators, Escalators, Railway Systems, Nuclear, Wind, and Photovoltaic
Power Generation Systems, Transmission & Distribution Systems, Digital
Technology Service Solutions

RevenuePrincipal Consolidated Subsidiaries (as of March 31, 2016)

Construction Machinery

Hitachi-GE Nuclear Energy, Ltd., Hitachi Industrial Equipment Systems Co.,
Ltd., Hitachi Elevator (China) Co., Ltd., Hitachi Building Systems Co., Ltd.,
Hitachi Industry & Control Solutions, Ltd., Hitachi Plant Construction, Ltd.,
Hitachi Plant Services Co., Ltd., Hitachi Power Solutions Co., Ltd., Hitachi
Rail Europe, Ltd., Horizon Nuclear Power, Ltd.

Hitachi provides integrated solutions globally, ranging
from the sale of hydraulic excavators and otherconstruction machinery to services and maintenance.
Leveraging decades of expertise with these technologies
and know-how, Hitachi offers solutions that address theneeds of a broad range of industries, including civilengineering and construction, building and structural
demolition, and mining and excavation.

Adjusted operating income

1,127.6 billion yen

Overseas sales ratio:

Adjusted operating income

2,333.1 billion yen

81.3 billion yen

EBIT
29.1 billion yen

Electronic Systems & Equipment
Drawing upon the Hitachi Group’s advanced technologies,
Hitachi provides systems that support the informationsociety, including semiconductor manufacturing
equipment, electronic component processing equipment,
and broadcasting and wireless communications systems.
Hitachi also produces medical and inspection systems
that improve health as well as power tools. We conductbusiness operations in regions including North America,
Europe, and Asia.
MRI scanners shipped:

7,050

64.3 billion yen

69%

This is the fiscal 2015 overseas sales ratio for construction
machinery. Our hydraulic excavators, wheel loaders, anddump trucks are used at construction sites and minesaround the world.

Class 800 high-speed train cars for the Intercity
Express Programme (UK).

Revenue

EBIT

67.0 billion yen

Main Products and Services
Hydraulic Excavators, Wheel Loaders, Mining Machinery
Principal Consolidated Subsidiaries (as of March 31, 2016)
Hitachi Construction Machinery Co., Ltd.

Hitachi Construction Machinery’s ultralarge hydraulicexcavator and dump truck for use in mining.

Revenue
758.3 billion yen

Adjusted operating income
22.6 billion yen

EBIT
25.8 billion yen

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Main Products and Services

High Functional Materials & Components
Hitachi draws upon its wealth of technologies andexpertise to provide various materials and products that
support advanced functions, as well as a host of diverse
products in fields ranging from IT to consumer electronics
and automobiles. These materials and products include
semiconductor and display materials, advanced
performance materials, synthetic resin products, specialty
steels, magnetic materials, casting components, andwires and cables. We conduct business operations inregions including Asia, North America, and Europe.

Engine Management Systems, Electric Powertrain Systems, Drive Control
Systems, Car Information Systems
Principal Consolidated Subsidiaries (as of March 31, 2016)
Clarion Co., Ltd., Hitachi Automotive Systems, Ltd., Hitachi Automotive
Systems Americas, Inc.

World share of anode material for lithium ion batteries:
About

25% (Hitachi estimation)

Hitachi Chemical’s anode material for lithium ion batteries isan essential material for improving the quality of lithium ion
batteries. In the market for eco-friendly automobiles, which
are in increasing demand, we hold the top world share.
Main Products and Services
Semiconductor and Display Related Materials, Circuit Boards andMaterials, Automotive Parts (Molded Plastics, etc.), Energy Storage
Devices, Specialty Steels, Magnetic Materials and Components, Casting
Components, Wires and Cables
Principal Consolidated Subsidiaries (as of March 31, 2016)
Hitachi Chemical Company, Ltd., Hitachi Metals, Ltd.

Hitachi Automotive Systems’ Stereo Camera.

Revenue

Adjusted operating income

1,001.1 billion yen

Hitachi delivers new values and lifestyle innovations tosociety and people all over the world by providing home
appliances, lighting and housing equipment, andrefrigerating and air-conditioning solutions. Hitachi also
helps reduce the environmental impact on our society
through the development of more energy-efficient
products. We conduct business operations in regions
including China, Asia, and the Middle East.

Adjusted operating income

EBIT

125.9 billion yen

153.5 billion yen

Automotive Systems
Hitachi is working on mobility technology innovations forelectronic and motorized automotive parts in the areas ofthe environment, safety, and information to contribute to
the creation of safe and comfortable automobiles withultra-low fuel consumption. We are conducting business
operations globally.
Ratio of automotive electronics products:

3 kinds of products for 3 consecutive years

Three Hitachi Appliances products—IH rice cookers, largecapacity refrigerators, and water pumps—won fiscal 2015
Energy Conservation Grand Prizes. This is the third
consecutive year that three Hitachi Appliances products
have been awarded.

An amorphous metal alloy from Hitachi Metals.

1,564.0 billion yen

53.9 billion yen

Smart Life & Ecofriendly Systems

Grand Prize winners:

RevenueEBIT

61.9 billion yen

Main Products and Services
Home Appliances, Lighting and Housing Equipment, Refrigerating and
Air-Conditioning Products
Principal Consolidated Subsidiaries (as of March 31, 2016)
Hitachi Appliances, Inc., Hitachi Consumer Marketing, Inc., Hitachi
Consumer Products (Thailand), Ltd.

47%

Hitachi Automotive Systems aims for high levels of safety andfuel efficiency in developing electronics products. The
electronics products share in fiscal 2014 placed Hitachi at theequivalent of third place among the top 10 global suppliers.
Hitachi Appliances’ large-capacity“Vacuum Compartment” XG series refrigerator.

Revenue
681.0 billion yen

Adjusted operating income
23.8 billion yen

EBIT
41.9 billion yen

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Hitachi Sustainability Report 2016

Management Approach

Activities

Main Products and Services

Others (Logistics and Other Services)
Hitachi is active in the logistics sector, including system
logistics, transport and installation of heavy products andprecision machinery, and international air and sea freighttransportation, as well as the manufacture and sales of
information storage medium and batteries, and real estate.
We conduct business operations in regions including
North America, Europe, and Asia.
Eco-car ownership rate:

Performance Data

Leasing, Loan Guarantees
Principal Consolidated Subsidiaries (as of March 31, 2016)
Hitachi Capital Corporation

90%

In Japan, Hitachi Transport System*2 has a rising eco-car
ownership rate, including hybrid, natural gas, electric, andLPG vehicles, as well as nationally certified, low-emission
gas and biofuel vehicles.

Hitachi Capital’s Hitachi Corporate Card.

Revenue
365.3 billion yen

Main Products and Services

Adjusted operating income
45.2 billion yen

EBIT
46.6 billion yen

Logistics, Optical Disk Drives, Property Management
Principal Consolidated Subsidiaries (as of March 31, 2016)
Hitachi-LG Data Storage, Inc., Hitachi Life, Ltd., Hitachi Transport System,
Ltd., Hitachi Urban Investment, Ltd., Hitachi America, Ltd., Hitachi Asia
Ltd., Hitachi (China), Ltd., Hitachi Europe Ltd., Hitachi India Pvt. Ltd.*3

Hitachi Transport System’s Metropolitan East Distribution
Center and a large truck.

Revenue

Adjusted operating income

1,252.7 billion yen

52.5 billion yen

EBIT
40.6 billion yen

Financial Services
We offer solutions integrating diverse functions including
leasing, loans, rentals, credit cards, and securitization as
well as payment and collection agency services, insurance
services, trust services, and outsourcing. We provide
these solutions to customers in five key areas: Japan,
Europe, the Americas, China, and ASEAN.
Power generated in renewable projects:

200% growth

Hitachi Capital finances and operates wind and solar power
plants, providing Hitachi’s combined strengths to findsolutions that promote renewable energy use. We boosted
power generated from renewable energy from 160 MW in
fiscal 2012 to 320 MW in fiscal 2015.

*1 The trade name of Hitachi Medical Corporation was changed to Hitachi Healthcare
Manufacturing, Ltd. as of April 1, 2016.
*2 Hitachi Transport System, Ltd. became an equity-method affiliate of Hitachi with thetransfer of some of the shares held by Hitachi in that company.
*3 Hitachi America, Ltd., Hitachi Asia Ltd., Hitachi (China), Ltd., Hitachi Europe Ltd., andHitachi India Pvt. Ltd. are the Hitachi Group’s regional headquarters for the Americas,
Asia, China, Europe, and India, respectively, and they sell the Hitachi Group’s products.

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance DataManagement
Approach
Leadership10–11
CEO’s Message

10

Executive Officer’s Message:
CSR and the Environment

11

Recognition of Social Responsibility

12–23

Realizing Sustainable, Innovative Management

12

Understanding Issues Through Dialogue
and Taking Part in Initiatives

19

Review and Improvement of CSR Activities
Enhancing CSR Management

24–27
24

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Hitachi Sustainability Report 2016

Management Approach
Leadership

Activities

Performance Data

CEO’s Message

Leadership
CEO’s Message

Hitachi’s Social Innovationfor Safer, Richer Lives

The state of the world is in constant flux. Each day brings
new political, economic, and environmental changes, andthe issues facing our customers and societies as a wholegrow ever more diverse and complex. The field of businessand people’s lifestyles are also seeing dramatic shifts as
the impact of IoT (the internet of things) andcomputerization continue to gain momentum.
Anticipating these changes, in May 2016 Hitachi moved
to become an Innovation Partner for the IoT Era with its new2018 Mid-term Management Plan. In this plan, we focus ourefforts in four business domains—power and energy; industry,
distribution, and water; urban; and finance, public, andhealthcare. We have launched a market-driven businessstructure comprising three layers: the “front” businesses thatinterface directly with customers as they develop and provide
services; the “platform” that enables quick, efficient provisionof those services; and the globally competitive “products”
we bring to market.
In line with our Corporate Credo—contributing tosociety through the development of superior, originaltechnology and products—we engage in the Social
Innovation Business on a global basis, putting our IT andcontrol and operational technologies to use in theadvanced social infrastructure systems we provide tocreate a future where people can live safer, richer lives.
Moving forward, we will take our Social Innovation
Business to a more advanced phase with enhanced digitaltechnologies to accelerate “collaborative creation,” tacklingshared issues and crafting solutions together with ourcustomers and partners.

The solutions we provide through our Social Innovation
Business aim to support people’s lives for decades as vital
capital for society. When addressing environmental issues,
too, we must look ahead to the likely state of the global
environment decades from now and implement actions
with an eye firmly on the impact of corporate activities on
the environment. We have created the Hitachi Environmental
Innovation 2050 targets to help achieve a low-carbon
society; a resource efficient society; a harmonizedsociety with nature. Toward the realization of these goals,
we continue developing innovative technologies and solutions.
It is precisely because this is an era of great changethat Hitachi is dedicating itself to working smarter andfaster, creating new value for customers and enhancing
people’s quality of life. In this way we will pursue growth
as a company and sustainable development for society
as a whole.

Toshiaki Higashihara
President & CEO
Hitachi, Ltd.

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Hitachi Sustainability Report 2016

Management Approach
Leadership

Activities

Performance Data

Executive Officer’s Message: CSR and the Environment

Executive Officer’s Message: CSR and the Environment

Integrating CSR
into Corporate Management

With the formulation of the corporate governance code in Japan, the adoption of
the Sustainable Development Goals (SDGs) as the centerpiece of the 2030
Agenda for Sustainable Development, adopted by the United Nations, and thegrowing importance of ESG*1 considerations in mainstream investment, privatecompanies—particularly those with global operations—are increasingly being
called upon by not only investors and shareholders but also various otherstakeholders to incorporate CSR into their management strategies and contributeto building a sustainable society.
For years, the Social Innovation Business has been Hitachi’s coremanagement focus. We have proactively responded to global corporate trends by
expanding our CSR initiatives, such as by strengthening corporate governance,
upholding respect for human rights, ensuring ecosystem preservation, andpromoting diversity management. Our CSR policies, goals, and actual
performance have been disclosed in our annual sustainability reports.
With more companies incorporating CSR into their core management
strategies, and in keeping with our 2018 Mid-term Management Plan (announced
in May 2016), we have decided to publish the Hitachi Integrated Report beginningin fiscal 2016 as a means of providing greater information about our integration
strategies and results, including CSR. The Integrated Report provides insights
into how we are building CSR considerations into the foundations of ourmanagement along with concisely presented non-financial information. For thesake of completeness and continuity, we will continue publishing detailed nonfinancial information in our Sustainability Report.
Of special note during fiscal 2016 is our announcement in September of the
Hitachi Environmental Innovation 2050 targets in line with our 2018 Mid-termManagement Plan. The announcement of ambitious targets to achieve a lowcarbon society, a resource efficient society, and a harmonized society with nature
is an expression of Hitachi’s determination to contribute to the resolution ofenvironmental issues through the development of innovative technologies,
products, and solutions.
At a time when business practices and people’s lifestyles are undergoing a
dramatic transformation due to such factors as the growing impact of IoT andcomputerization, we aim to create new value for customers and enhancepeople’s quality of life by communicating actively with our stakeholders andapplying what we learn to our business operations.
*1 ESG stands for “environment,” “social,” and “governance”—key factors in promoting socially responsible investment.

Toshiaki Kuzuoka, Hitachi, Ltd.
Representative Executive Officer; Senior Vice
President and Executive Officer; General Counsel &Head of Corporate Communication; Head of Risk
Management; General Manager of Legal andCommunications Group; General Manager of Risk
Management Group; General Manager of Corporate
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Hitachi Sustainability Report 2016

Management Approach
Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

Recognition of Social Responsibility
Hitachi’s Aims
We are actively advancing our CSR activities to meet society’s expectations based on an accurate perception of the
impact of our operations on society and our social responsibilities. We are contributing to the resolution of social issues
through our Social Innovation Business, which combines advanced IT with infrastructure technologies developed overmany years, and are conducting dialogue with all our stakeholders to identify and contribute to the identification ofsocial issues. In addition, we are promoting collaborative creation with stakeholders to resolve those issues andachieve the sustainable growth of society by fulfilling our social responsibilities. We are creating both economic andsocial value by aligning our CSR activities with our Mid-term Management Plan to realize the Hitachi Group Vision.

Realizing Sustainable, Innovative Management
Hitachi’s Approach
Trends in Society and Hitachi Group Identity
Society is today undergoing great changes and faces arange of challenges, from environmental issues and natural
resource and energy constraints to poverty, inequality in
education, diseases, and population concentration in cities.
Hitachi’s Corporate Credo is to contribute to society
through the development of superior, original technology
and products. We created our Group Vision in May 2013,at the start of the 2015 Mid-term Management Plan, withthe aims of delivering innovations that help to answer
society’s challenges and of building a safe, secure,comfortable, and fair society.
The Group Vision indicates the path to the next stageof growth. We draw on the ethics and values that Hitachi
has developed over the past 100 years—encapsulated in

our Corporate Credo and Founding Spirit—while
continuously considering the next generation. We lookahead to the longer term, while promoting corporate
activities informed by sensitivity to the needs of a changing
society. Our Mid-term Management Plan is the action plan
we define to realize this vision; by integrating ourmanagement and CSR strategies, we seek to enhance theeffectiveness of this approach.
The implementation of our plan is a way for us to fulfill
our responsibilities as a good corporate citizen throughrobust, diverse governance; the pioneering spirit andstrong ethical stance of our employees; and operations
that help address environmental and other issues. We
comply with the laws of all countries in which we operate
and pursue our activities in line with the Hitachi Group
Codes of Conduct.

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Hitachi Sustainability Report 2016

Management Approach
Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

Trends in Society and Hitachi Group Identity
Hitachi Group Identity
Macro Trends in Society
Toward a society centered on decentralization,
sharing, and recycling
Expansion of free trade zones
Global economic growth led by emerging nations
Global market structural changes based onenergy resources

Achieving a Sustainable Society
Securing water resources, energy, and food
Replacing aging infrastructure systems
Reducing CO2 emissions
Improving transportation systems
Dealing with the low birthrate and aging
population
Promoting material recycling

The mission that Hitachi
aspires to fulfill in society

MISSION

The values crucial to
the Hitachi Group inaccomplishing its mission

VALUES

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

Hitachi Founding Spirit:

Harmony, Sincerity, Pioneering Spirit

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

VISION

What the Hitachi Groupaims to becomein the future

Direction of our management strategies

Rules for fair corporate behavior

Mid-term Management Plan

Codes of Conduct

Business plans

Companies’ regulations and standards

Hitachi’s Social Innovation BusinessWe work with stakeholders to recognize issues society andour customers face, including global environment
problems, and are contributing to the resolution of social
issues through our Social Innovation Business, which
combines advanced IT with infrastructure technologies
developed over many years.
In May 2016, we formulated our 2018 Mid-termManagement Plan, which will culminate in fiscal 2018.
Under the plan, we aim to become an Innovation Partner for
the IoT Era centered on our Social Innovation Business,seeking to expand the sales ratio of frontline operations thatdevelop and deploy services meeting the diverse needs ofglobal society to 40% and to increase our overseas sales
ratio as a whole to 55%. We will expand our frontline

operations by evolving and enhancing our Social Innovation
Business through digital technology and promoting it
overseas in the focus business domains of power andenergy; industry, distribution, and water; urban; and finance,
public, and healthcare.
We will continue to provide optimum solutions tosociety’s issues with advanced network technologies thatare capable of connecting social infrastructure, products,
and people.
Social Innovation Business2018 Mid-term Management Plan

Focus Business Domains and Key Initiatives

Power/Energy
Transition to distributed power
supply utilizing IT
Microgrid, regional energy
management
Renewable energy
Investment Focus
Strengthening Grid and Engineering

Industry/
Distribution/Water
Use “Lumada”*1 IoT platform to
optimize value chains for industry
and distribution
Investment Focus
Strengthening Engineering
Predictive Maintenance
Optimized Factory

Urban
Improvement of quality of life incommunities
From rail as a service to outcomedeliveryFinance/Public/
Healthcare
FinTech, My Number
Healthcare service (platform)
Investment Focus
Strengthening Healthcare Informatics

Investment Focus
Development of Urban Solutions
Expansion of the Rail Business Area

*1 Hitachi’s open and highly versatile IoT solution platform using software technology to obtain new information from integrating and analyzing data and running simulations.

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Hitachi Sustainability Report 2016

Management Approach
Recognition of Social Responsibility

Activities

Performance Data

Realizing Sustainable, Innovative Management

2015 Mid-term Management Plan and Material Issues for Hitachi
The 2015 Mid-term Management Plan focused on the three themes of “Innovation,” “Global,” and “Transformation,” and we haveused our Social Innovation Business to achieve growth and transformation.
Achieving the plan’s goals required improvements in not only our financial activities but also non-financial performance
aimed at addressing Hitachi’s material issues. We set targets for non-financial activities related to key management policies andcarried out these activities from fiscal 2013.

Management Focus
Innovation:
Strengthen services and achieve innovation

Material Issues for Hitachi
Fiscal 2013–15 Targets

Fiscal 2015 Results

Sustainable Business
Expand R&D centers

Promoted R&D in 7 regions
globally (as of June 2015)

Increase R&D staff by 500 people

Launched Global Centers forSocial Innovation as part of R&D
framework with 200 staff inJapan, 350 overseas

Strengthen Open Innovation

Demonstration experiments ofprototypes: 74 (27 in fiscal 2014)

Caring for the Environment
Eco-Product sales ratio: 90%
Global:Grow as a company providing Social Innovation Business solutions
worldwide

95%

Diversity Management

Diversity among directors

Outside directors: 9
Non-Japanese: 5 (of which 2 are
women)(as of June 2015, out of 13
directors)

Female senior executives

Appointed female head of CSR
and Environmental Strategy
Division as senior executive-level
director on April 1, 2015

Female managers (Hitachi, Ltd.)Fiscal 2020 target: 1,000 women

474 women

Respect for Human Rights
Implement due diligence in thefield of “business and humanrights”

Procurement division began
conducting human rights due
diligence based on due diligence
guidelines

Public Policy Initiatives

Transformation:
Achieve Hitachi Smart Transformation marked by global standards andspeedy, responsive management

Engage in dialogue withgovernment officials

Participated in policy councils

Provide forums for stakeholder
dialogue

Four events held in India,
Australia, Europe, and China

Diversity Management

Promotion of global human capitalmanagement strategy

Expanded the range of employees
directly sent the results of the
global employee survey with thegoal of promoting communication
with team members and applying
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Hitachi Sustainability Report 2016

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Recognition of Social Responsibility

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Performance Data

Realizing Sustainable, Innovative Management

Innovation Management
Research and Development Direction
To become an “Innovation Partner for the IoT Era,”
Hitachi is accelerating collaborative creation withcustomers to advance its Social Innovation Businessin four business domains—power and energy; industry,
distribution, and water; urban; and finance, public,
and healthcare.
The Research & Development Group has been setting
the pace in collaborative creation with customers,
evolving from R&D that generates new technology to thatwhich drives innovation and leads to new growth.
R&D is being pursued under the following directives tocreate business innovation amid uncertainty.
(1) Create service businesses by accelerating collaborative
creation(2) Build up technology platforms for Service & Productbusiness growth(3) Challenge future societal issues through open
innovation
Hitachi will contribute to resolving increasingly global
and complex societal issues through the Social Innovation
Business.

Linking Customer-Driven R&D to New BusinessTo accelerate collaborative creation with customers, theResearch & Development Group reconfigured itself as amore customer-driven research organization in April 2015.
The three research laboratories in Japan—the former
Central Research Laboratory, Hitachi Research Laboratory,
and Yokohama Research Laboratory—were realigned
together with the Design Division and overseas research
centers to form four Global Centers for Social Innovation(CSIs), nine Centers for Technology Innovation (CTIs), andthe Center for Exploratory Research (CER) to support the
new business structure. In April 2016, Hitachi transitioned
to a new business structure consisting of service andproduct business groups, supported by R&D, to expand
the Social Innovation Business.
Under the new business structure, the CSIs collaborate
with the 12 Front business units (BUs) and regional centers
to develop services to meet the needs of customers ineach region. The CTIs coordinate with the BU responsible
for the core of Social Innovation and the Product BUs
supporting services with their highly competitive key
components to establish world-leading technologies. As a
global and open laboratory, the CER works with various
research institutions to conduct cutting-edge research torealize solutions to future societal issues and to tie this to
future Social Innovation Business.

Research & Development Group Structure

Business structure from FY 2016

R&D structure from FY 2015
Global Centers for Social Innovation (CSIs)

CUSTOMERS

Service development matched to customer needs in each region

FRONT

North America: 100

Europe: 70

China: 115

Regional bases

APAC: 65

Japan: 200

Total: 550 people(Total: 550 people)

Customer segments (12 Business Units)

Centers for Technology Innovation (CTIs)
PLATFORM
Core of Social Innovation

PRODUCTS
Industrial products, automotive parts,
materials, etc.

Accelerating Collaborative Creation with Customers
Worldwide
Hitachi’s Social Innovation Business is expanding globally.
The CSIs are located in five key regions—Tokyo, the AsiaPacific (APAC), North America, China, and Europe—withresearchers assigned close to their customers to facilitate
collaborative creation. To be able to better serve theneeds of customers in each region, about 350 of theEstablishment of top global technologies(Platform, Products)
Japan: 2,050 people

Center for Exploratory Research (CER)
Solving future societal issues
Japan: 100 people

approximately 550 researchers in the CSIs are
non-Japanese.
CSI-Tokyo focuses on collaborative creation ofsolutions with customers using methodologies developed
through design and service research.
At CSI-APAC, data science, machine learning, andsoftware engineering are used to create energy, transportation,and urban solutions in collaboration with customers.

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Hitachi Sustainability Report 2016

Management Approach
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Performance Data

Realizing Sustainable, Innovative Management

CSI-North America is building a big-data analytics
platform to collaboratively create advanced solutions in suchareas as energy, communications, finance, and healthcarewith customers.
CSI-China conducts collaborative creation to develop
such products as elevators and ATMs in order to realize
solutions for the Chinese government’s industrial policies
including “Made in China 2025,” promoting growth in the
manufacturing sector, and a low-carbon society.
CSI-Europe is participating in the creation of newmarkets through standardization activities led by Europe,
addressing challenges faced by a matured society by
developing solutions together with key institutions.
Communication with customers was also enhanced infiscal 2015 by the increased participation of the Research &Development Group in various external events, such as theregional Hitachi Social Innovation Forums in Japan, North
America, and EMEA, as well as the Hitachi Technology
Forum in China.

Building Up Technology Platforms for Business Growth
In its history, which spans 100 years, Hitachi has continued
to pursue technology development in a broad range ofareas—from information and telecommunications, electric
power systems, and industrial machinery to transportation
and urban development—producing many different types of
products to meet customer expectations and contribute tosociety.
The CTIs are innovating technology through productdevelopment. By accumulating know-how in this way, they
have established 36 technology platforms in nine technologies:
Energy, Electronics, Mechanical Engineering, Materials,
Systems Engineering, Information and Telecommunications,Controls, Production Engineering, and Healthcare.
Through the application and free combination of these 36
technology platforms beyond the boundaries of a given
product or technological field, innovative products andservices are generated, providing greater value to customers.

36 Technology Platforms in 9 Areas of Technology

Promoting Open Innovation
An open R&D environment is maintained in collaboration
with research institutes and universities both within andoutside of Japan and customers to proceed with innovativetechnology development that cannot be achieved by Hitachi
alone. To date, Hitachi has established the Hitachi
Cambridge Laboratory at the University of Cambridge in1985 to pursue research in fundamental physics and pioneer
innovations in future computing, devices, and materials, anda joint research laboratory within the Shanghai Jiao Tong
University, China, in fiscal 2012 to conduct research on
metallurgical materials. In fiscal 2015, the CER became the

hub for open innovation, creating the seeds for the nextSocial Innovation Business. In June 2016, joint researchlaboratories were established within the University of Tokyo,
Kyoto University, and Hokkaido University to work toward
the realization of the “Super Smart Society” (Society 5.0)*1
proposed by the Japanese government. Throughcollaborative creation with each university, Hitachi seeks
insights into future societal challenges and proposes visions
and innovations to realize solutions that both resolve thosechallenges and contribute to economic development.
Furthermore, in fiscal 2015, research collaboration was
conducted with 85 research institutes outside of Japan andContents

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Hitachi Sustainability Report 2016

Management Approach
Recognition of Social Responsibility

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Performance Data

Realizing Sustainable, Innovative Management

233 within Japan. Collaboration with researchers outside ofJapan is being further strengthened through such programsas the Hitachi Research Visit Program (HiVIPS), establishedin 1985 to invite researchers to work for a fixed term in thelabs in Japan.

Key Indicators
R&D Expenditure (Hitachi Group)(billion yen)
500
450

*1 Super Smart Society: A vision proposed by the government of Japan for a new type ofsociety that will be led by innovations in science and technology, following on from thehunter-gatherer, pastoral-agrarian, industrial, and information societies.

400

R&D Ethics Reviews

300

In September 2000, Hitachi established an ethical review
committee to review the handling of information from humangenome analysis. It was the first such committee to beestablished by a private company in Japan. We instituted
this because we were handling information from humangenome analysis. The majority of the committee members
are external experts, and the committee meets two or moretimes a year. The original ethical guidelines were preparedbased on the “Ethical Guidelines for Human Genome/GeneAnalysis Research” from the Ministry of Education, Culture,
Sports, Science, and Technology and the “Ethical Guidelines
for Clinical Research” from the Ministry of Health, Labor, andWelfare; these guidelines remain in effect today.*1
All Hitachi business divisions and Group companies
whose activities require review are expected to show a highlevel of corporate social responsibility and to maintain highethical standards among their researchers and staff.

4.3%

3.7%

351.4

341.3

350

0

3.8%

412.5

2011

2012

Research investment (billion yen)

2013

3.4%

3.3%

335.5

333.7

2014

2015 (FY)R&D expenditure as a % of revenue

Allocation of Research & Development Group Funds

Sponsored
Research

Frontier andPlatform Research

30%

50%

Allocation of R&D
Funds＊1
FY 2016

Advanced SponsoredResearch

20%
Change in digital-solutions-related research
24%*1 On October 1, 2015, the Ethical Guidelines for Clinical Research of the Hitachi ethicalreview committee were changed to the Ethical Guidelines for Medical and HealthResearch Involving Human Subjects.

R&D Planning and Budget
R&D investment by the Hitachi Group is equivalent to about
4% of revenue, of which approximately 20% is used in the
Research & Development Group. Research categories canbe divided into Sponsored Research, Advanced SponsoredResearch, and Frontier and Platform Research. Sponsoredand Advanced Sponsored Research are financed bybusiness units or Group companies, and are based mainly
on business roadmaps from business unit initiatives. Frontierand Platform Research is based on mid- to long-term
technology plans led by the Research & Development
Group. The aim of Sponsored or Advanced SponsoredResearch is to expand and grow core businesses, targeting
practical application within three to five years. Frontier andPlatform Research aims to strengthen customer
collaborative creation and technical platforms and to create
new businesses.
In fiscal 2016, investment in Frontier and Platform
Research focused on digital solutions (Social Innovation
Business using digital technology) as a driver of growthacross the Group in the 2018 Mid-term Management Plan.
Hitachi will continue to pursue R&D aligned withcorporate strategy in order to contribute to the expansion
and accelerated global deployment of our businesses.

FY 201564%
FY 2016*1 Roughly 20% of total Hitachi Group R&D expenditure.

Intellectual Property
Actions in the Intellectual Property Field
Intellectual property (IP) is a key element of Hitachi’sbusiness strategy. We protect the innovations emerging from
our R&D, as well as the Hitachi brand, on the basis of theseIP rights, while providing remuneration and incentive awards
for inventors.
Building a Global Patent Portfolio
One of the IP activities supporting our global operations isdeveloping a global patent portfolio to ensure worldwide
protection for innovations emerging from our R&D and toprevent other companies from using our technologies
without authorization. The portfolio also enables us todemonstrate the advantages of those technologies tocustomers, as well as to provide patent licenses to othercompanies. We boosted our patent application ratio
outside Japan from 47% in fiscal 2009 to 59% in fiscal
2015. We will continue to efficiently build and maintain our
global patent portfolio.

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Management Approach
Recognition of Social Responsibility

Activities
Realizing Sustainable, Innovative Management

In tandem with efforts to globalize our R&D centers,
we are also globalizing our IP hubs. We currently have IP
offices in New York and Santa Clara, California, in the
United States, Beijing and Shanghai in China, and Munichin Germany to protect the innovations generated throughR&D activities outside Japan.
Another key issue is developing globally minded IP
human resources. Since fiscal 1964, Hitachi’s Intellectual
Property Division has operated an international job training
system, sending trainees to IP law firms and Group
companies in Europe and the United States and to study
abroad. In fiscal 2015, four trainees went to the UnitedStates, two to Germany, and one to the United Kingdom.
Key Indicators
Patent Application Ratios by Country or Region(%)
FY 201145

FY 201243

FY 2013

41

9

9

7

6

28

FY 2014

41

9

9

8

6

27

FY 2015

41

9

9

7

5

29

Japan

US

Europe

11

10

9

China

Other

Performance Data

11

PCT*

8
8

6
6

20
23

1

*1 International applications filed for Patent Cooperation Treaty coverage.

Respect for Intellectual Property
We respect the intellectual property rights (IPRs) of others,
as we expect them to respect ours. We follow the HitachiGroup Codes of Conduct and conduct preliminary searchesof others’ patents when undertaking R&D on new products
and technologies in order to avoid IPR infringements. For
IPRs that belong to others, we obtain licenses from IPR
holders before we use the IP. As our Social Innovation
Business expands and opportunities for collaborative
creation with customers and partners increase, we carefully
handle IP acquired from other parties. If any company isfound to have infringed Hitachi’s IPRs, we encourage thecounterparty to acquire the necessary license and take legal
action if necessary.
Hitachi Group Codes of Conduct, 5.3:
Management and Preservation of Company Assets

Anti-Counterfeiting Activities
Protecting the Hitachi brand is crucial for supporting ourglobal operations. We operate a rigorous regime against
such infringements as making and selling counterfeit goods
carrying the Hitachi brand and illegally applying for orregistering trademarks similar to the Hitachi brand.
Until recently, the bulk of counterfeit goods were
manufactured in China, but over the past several years
manufacturing methods and sales routes have become moresophisticated and diverse. In 2015, for example, counterfeit
goods operations were successfully raided in UAE andVietnam as a result of our approaching local authorities. With
the growth in trade over the Internet, anti-counterfeit
measures for the Internet are also increasingly important.
It is important to teach general consumers not to buy
them in order to eliminate counterfeit goods. Hitachi
conducts ongoing consumer awareness activities toeliminate counterfeit goods.
Reward System for Employee Inventions
We motivate employees in the R&D field with an ample
reward system for new inventions. To make this reward
system as fair and transparent as possible, we set standards
to evaluate inventions and disclose these standards toemployees. We also have a mechanism for receiving
inquiries about the rewards, as well as opinions on the
reward system.
We have set up a special division within the Intellectual
Property Division to plan and operate this system. An
internal Invention Management Committee made up of R&D,
legal affairs, personnel management, and IP experts ensuresthat the system operates effectively across the whole Group.
The system includes an invention information channel topromote communication between inventors and thebusiness divisions implementing the resulting patents.
Inventors can ask the business divisions for information
about patent implementation and check the evaluation
standards used to calculate the rewards for their inventions.
To ensure transparency and inventor satisfaction, we also
set up an Arbitration Committee for Invention Rewards withthe same composition as the Invention Management
Committee. Inventors can appeal to this committee if they
disagree with the amount they have been awarded.
From fiscal 2005, we have also given President’s Awards
to the top 100 inventors. Since fiscal 2006, we have also
awarded the top 50 young inventors (under 35 years old)based on patent application rewards received within five
years of their joining Hitachi.

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Hitachi Sustainability Report 2016

Management Approach
Recognition of Social Responsibility

Activities

Performance Data

Understanding Issues Through Dialogue and Taking Part in Initiatives

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

Stakeholder Engagement

Hitachi promotes its Social Innovation Business with efforts
to accurately perceive the social issues in each country or
region, followed by collaborative work with customers andother stakeholders to resolve them. In conducting thisbusiness, we place importance on two-way communication
with stakeholders and active participation in various
initiatives in coordination with various groups.

Stakeholders

Main Roles

Customers

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

Main Divisions
Quality Assurance
Sales

Communication with Stakeholders
The outcomes of communication with stakeholders areshared with respective divisions and actively utilized as
valuable insights into our business. Public interest is growing
in how corporations are taking in stakeholders’ voices toimprove their businesses, and we will continue to globallydevelop and promote ways of capitalizing on the opinions of
the members of society with whom we engage in ourbusiness activities.

Means of Communication
Customer satisfaction activities
MarketingWebsiteAdvertisement activities

Pages
Customer Satisfaction
pp. 59–60
Universal Design
pp. 61–62
Product Information
Disclosure
pp. 63

Adaption for Emerging
Markets
pp. 63
Quality Assurance
Activities
pp. 63–65
Rigorous Information
Management
pp. 65

Shareholders andInvestors

Timely and proper information
disclosure, fair assessment andsupport from capital markets, reflectionof shareholder and investor viewpoints
in corporate management

Public Relations
and IR

Announcements of financial results(quarterly)
General shareholders’ meetings(annual)IR events, one-on-one meetings(about 740 times/year)
IR tools: Integrated Report,
business reports, etc.

Stakeholder Engagement
pp. 19–22

Suppliers

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

Procurement

Procurement activities
Supplier meetings
CSR monitoring (218 companies/
year)
CSR audits (20 companies/year,
annual)Supply Chain Management pp. 54–57

Employees

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

Public Relations
Human Capital

Intranet, in-house newsletters
Training
Town hall meetings between senior
management and employees (21times/year)
Employee surveys (annual)

Diversity and Inclusion
pp. 42–44
Developing Women’s
Careers
pp. 44Work-Life Management
pp. 45–46
Employing People with
Disabilities
pp. 46

Diverse Support Systems
for Employees
pp. 46
Occupational Health and
Safetypp. 47–48
Global Human Capital
Development
pp. 49–51
Stakeholder Engagement
pp. 19–22

National and Local
Governments,
Industrial
Associations

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

Government &External Relations

Policy council participation
Participation in business andindustry associations

Stakeholder Engagement
pp. 19–22

Local Communities

Fulfillment of responsibilities ascorporate citizen, involvement in local
communities

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

Social Contribution Activities
pp. 67

Academic
Associations andResearch Institutions

Promotion of technological innovations,participation in industry-governmentacademia collaborative projects

Research andDevelopment

Open innovation (joint research)Innovation Management

NGOs and NPOs

Incorporation of diverse public
opinions, promotion of stakeholderfocused management, social
contribution through nonprofit activities

CSR Promotion

Stakeholder dialogue (4 times/year)
Dialogue through collaboration

Global Environment

Global warming prevention, resource
conservation, ecosystem preservation

Environment
All Business
Divisionspp. 15–18
Social Contribution Activities
pp. 67

Environment
pp. 68–92

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Hitachi Sustainability Report 2016

Management Approach
Recognition of Social Responsibility

Activities

Performance Data

Understanding Issues Through Dialogue and Taking Part in Initiatives

Engagement with Customers
Global Campaign Rollout
It is critical for Hitachi to gain stakeholders’ understanding of
its Social Innovation Business and corporate vision, whichaspire to realize a sustainable society. Continuing from fiscal
2014, we conducted the Global Brand Campaign in 19
countries and regions. The campaign uses the slogan“SOCIAL INNOVATION—It’s Our Future,” presenting
examples of how Hitachi’s Social Innovation Business is
helping to address the many issues societies now face
globally, such as energy issues, depletion of water
resources, transportation issues linked to urbanization,
healthcare issues associated with the graying of society,advancement of big data and other information
technologies, food safety, and information security.
To globally enhance the Hitachi brand, we have held the
Hitachi Social Innovation Forum in locations worldwide,
including Brazil, Germany, India, Japan, Myanmar, Turkey,
the United Kingdom, and the United States, showcasing
examples of the Social Innovation Business being conductedin each region. Through keynote speeches, panel
discussions, and exhibits, we present a wide range ofstakeholders—including customers and government
officials—with solutions to social issues that countries andregions around the world face today.

Engagement with Employees
Enhancing Management-Employee Communication
Since fiscal 2012, we have been organizing town hallmeetings bringing together senior management andemployees. We held around 130 town hall meetings at
operations in and outside Japan during the first three years,
and in fiscal 2015, the Chairman and CEO and the President
and COO attended 21 meetings in the United States andChina, as well as in Japan and elsewhere.
Ordinary business meetings and conferences are limitedin agenda, and company communications with employees
via our intranet and other channels tend to be one-way.
Town hall meetings, meanwhile, are intended as forums for
direct dialogue where employees can gain a real sense of
the senior management’s way of thinking and what isneeded for Hitachi to make the next leap forward, as well as
occasions for reaching a shared understanding of the workin which everyone is involved.
In the town hall meetings, we believe that it is importantfor senior management to hear the thoughts of frontline
employees and for both sides to share their awareness as
they engage in dialogue on diverse topics, such as how we
can grow our business.

Promoting a Proactive IR Approach
Our investor relations (IR) activities broadly include businessstrategy meetings, tours of plants and R&D facilities for
institutional investors and analysts, participation in

brokerage-sponsored investor meetings, and one-on-one
meetings with institutional investors and analysts.
In fiscal 2015, we held quarterly financial results
briefings and corporate strategy meetings on our progresswith the 2015 Mid-term Management Plan. Following on
from fiscal 2014, we hosted Hitachi IR Day 2015, wheresenior management explained their business strategies andmanagement policies under the plan. Feedback frominstitutional investors and analysts was positive. Theircomments included, “I was struck by the companywide
efforts to generate cash flows,” and “This was a valuable
once a year opportunity to update our understanding of thecompany’s various businesses—one that I very much hope
will continue.”
We also conducted tours of the Nakajo Division of
Hitachi Industrial Equipment Systems and Hitachi Consumer
Products (Thailand), a consumer electronics production site,
to deepen understanding of our product businesses, inaddition to conducting about 740 one-on-one meetings withinstitutional investors and analysts worldwide. Members ofsenior management visit institutional investors in North
America, Europe, and Asia twice a year to explain corporate
management policies and business directions. We are doing
our best to share IR feedback in-house and reflect this in
management and operations.
We also post briefing materials and businessperformance as well as stock price trend charts in a timely
manner on our IR website. We aim to continuously enhance
our information disclosure. In fiscal 2015 we introduced a
new responsive design on our website for improvedbrowsing convenience from smartphones and tablets.
Investor Relations
Disclosure Policy

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Hitachi Sustainability Report 2016

Management Approach
Recognition of Social Responsibility

Activities

Performance Data

Understanding Issues Through Dialogue and Taking Part in Initiatives

Working with Governments and Public Policymakers
External Relations Initiatives
The social infrastructure field draws particularly strong
interest from the public sector. In the task of globally
expanding our Social Innovation Business, government
institutions in Japan and other countries around the world
are important partners to Hitachi, both as customers andas backers.
The Japanese government has implemented a support
structure for fields including the internet of things (IoT),
artificial intelligence (AI), and infrastructure system export
projects to raise industrial competiveness. Effective use of
these structures and advice from the government isenormously helpful to us in advancing our Social Innovation
Business. We also increasingly receive requests for policy
proposals from government authorities when they arelooking into social issues and infrastructure support policies.
In responding to these requests, Hitachi contributes to abetter society.
We also cooperate with government-relatedorganizations in other countries while addressing local social
issues and the forms of society envisioned by the people
there with the aim of creating the best possible societies.
In carrying out the Social Innovation Business, making
various types of policy proposals to the governments ofJapan and other countries is becoming increasingly
important. The Government & External Relations Divisioncontributes to the creation of new social mechanisms.
Promoting External Relations
Hitachi established the Government & External Relations
Division in our corporate headquarters in fiscal 2009 to
guide and accelerate the external relations of the entire
Hitachi Group, and we have since worked to strengthen our
relationships with government and industrial organizations.
In fiscal 2016, we reorganized the division to achieve our
new goals of further enhancing the global expansion of ourSocial Innovation Business from the perspective of external
relations activities.
The Government & External Relations Division works
together with the Hitachi Corporate Office in Washington DC
and the Hitachi Corporate Office, Europe, as well as
business locations in the Americas, Europe, Asia, andJapan. By dealing with these governments andorganizations, the division uncovers new business
opportunities for Hitachi based on the social issues andpolicies in each region. The division works together withother departments in the company to further strengthen theSocial Innovation Business, and to contribute to better
societies in Japan and around the world.

Policy Council Participation
As part of our dialogue with government officials, Hitachi
executives and other representatives participate in a rangeof government-sponsored policy councils. Chairman of theBoard and Representative Executive Officer Hiroaki
Nakanishi served from fiscal 2013 to 2015 as a member ofJapan’s Council for Science, Technology, and Innovation—
which serves as the control tower for science, technology,
and innovation policy under the prime minister—making
policy planning recommendations. He also contributed tothe compilation of the 5th Science and Technology Basic
Plan. His current work emphasizes both resolving social
issues and economic growth with the use of ICT to achieve
the “Society 5.0”*1 proposed by the Japanese government.
Since fiscal 2015 he has participated as a member of
the New Industrial Structure Committee of the Ministry of
Economy, Trade, and Industry in discussions for theformulation of a New Industrial Structure Vision to help
Japan take the lead in innovations based on IoT, big data,
and AI—the so-called fourth industrial revolution.
Staff from Hitachi headquarters and businessdepartments have also participated in meetings androundtable discussions that look into policy and from thestandpoint of expanding businesses, as well as
cooperating in planning new policies for Japan, including
specific recommendations for more effective policy
planning and implementation.
*1 In the 5th Science and Technology Basic Plan, “Society 5.0” refers to scientific andtechnical innovation that leads to transformations to bring about a new society following
the evolution from a hunting society to an agricultural society, industrial society, andinformation society.

Government Support
As one of its infrastructure system export support measures,
METI commissions the Overseas Human Resources andDevelopment Association (HIDA) and the Japan External
Trade Organization (JETRO) to conduct a Global Internship
Program to support global human resource development
and the creation of global networks. From fiscal 2012
through 2015, 17 young Hitachi Group employees took partin this program, which sends junior-level employees fromprivate companies to government institutions and local
companies in emerging countries for several months.
Employee participation in this type of program enables
Hitachi to accurately identify the needs of emerging
countries and propose the optimal solutions for their
particular social concerns, helping to resolve them.

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Hitachi Sustainability Report 2016

Management Approach
Recognition of Social Responsibility

Activities

Performance Data

Understanding Issues Through Dialogue and Taking Part in Initiatives

Participating in Business and Industry Associations
Membership in business and industry associations is anothercritical aspect of our external relations. Hitachi is a memberof Keidanren (Japan Business Federation), where Chairmanof the Board and Representative Executive Officer Hiroaki
Nakanishi has served as vice chair since June 2014. He alsochairs the Committee on South Asia, the Committee on
Information and Telecommunication Policy, and theCommittee on Education and Human Resources
Development (as of May 2016). Other executives andemployees participate in a wide range of Keidanren
committees. As the planning and coordination chair for thesubcommittee on Europe, we also conduct activities withJapanese and European governments to pursue earlyagreement during ongoing negotiations on the Japan-EU
Economic Partnership Agreement, while maintaining close
economic relations with European governments andeconomic organizations in those regions.
As a member of the Japan Electronics and Information
Technology Industries Association (JEITA), we continue toparticipate in activities to formulate industry responses tothe European Union’s General Data Protection Regulation on
personal data protection that was adopted in April 2016, as
well as proposed amendments to Japan’s Act on theProtection of Personal Information that were enacted in
September 2015. We will continue similar efforts related todelegated regulations in the EU and cabinet orders andguidelines in Japan that provide more detailed regulations.
Within the Japan Electrical Manufacturers’ Association(JEMA), Hitachi is surveying the status of the development of
the electric power infrastructure in other countries, including
power generation and transmission facilities, to promote
infrastructure system exports. We are also participating inpublic relations activities—primarily interactions with business
operators in these countries—on how Japanese technologies
and products can help to solve social issues there.
United States: Hitachi Corporate Office in Washington DC
The Hitachi Corporate Office in Washington DC examines
the impact of US government policies and legislation on ourbusiness activities. To promote mutual understanding andimprove business opportunities, we communicate to key
stakeholders on how Hitachi can contribute to the growth of
US society.
For example, we share information gathered by the
Washington office with Group companies, exchanging
reports on key laws and regulations that impact
management and business, analyzing their business impact,
and responding appropriately. To increase the effectivenessof these activities, we cooperate with influential externalbusiness associations, think tanks, and academic groups,
exchanging opinions with specialists and researchers inefforts that will lead to policy proposals.
As part of the global expansion of our Social Innovation
Business, we provide information to policymakers andgovernment representatives on Hitachi’s technologicalexpertise to convey how Hitachi can contribute to the UnitedStates.
These kinds of activities allow us to a foster broader
understanding of Hitachi’s business and technologicalexpertise and to expand our global network.
Europe: Hitachi Corporate Office, Europe
The Hitachi Corporate Office, Europe, located in Brussels,monitors policy and legislation trends in the European Union,such as the European Commission and European
Parliament, and analyzes their impact on Hitachi’s businessactivities. It is active in European societal issues,
contributing to policy development through business.
Specifically, the office actively gathers information in thefields of energy, trade, information and telecommunications,transportation, healthcare, research and development,
environment, and CSR; communicates with relevant
departments within the company; and makes proposals to
EU institutions through business and trade associations like
BUSINESSEUROPE, DigitalEurope, and the Japan BusinessCouncil in Europe (JBCE). We also participate in a European
Commission Product Environmental Footprint (PEF) pilot
project as part of our environmental policy activities,
exchanging opinions and supporting the development of
new policies.
We maintain ongoing dialogues with representatives
responsible for European policy, business associations, andothers, mainly via the JBCE, in the EU-Japan Working Groupon Corporate Social Responsibility, organized by theEuropean Commission and Japan’s Ministry of Economy,
Trade, and Industry, and the UN Asia Regional Forum on
Business and Human Rights, among other organizations.
Since 1998, we have held the EU Hitachi Science &Technology Forum to deepen understanding of Hitachi’sbusiness. In fiscal 2014, the forum took place in Paris,
addressing the theme of healthcare. Starting in fiscal 2016
we are focusing on the Social Innovation Business while
continuing to hold these forums from the perspective ofcontributing to European society through business andtechnology. Through these activities Hitachi actively sharesinformation with European stakeholders. We also
communicate with policymakers through workshops andother activities.

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Hitachi Sustainability Report 2016

Management Approach
Recognition of Social Responsibility

Activities

Performance Data

Understanding Issues Through Dialogue and Taking Part in Initiatives

Participation in Initiatives
Main Initiatives in Which Hitachi Is Involved
United Nations Global Compact
Hitachi became a full member of the United Nations Global
Compact in February 2009. Our corporate foundation is thebasis for continuing growth as a global company, and it also
needs to meet internationally recognized global standards
that go beyond national and regional laws and regulations.
We believe that respecting and implementing the 10
principles of the UN Global Compact will build a stronger
foundation for our business.
Global Compact Network Japan (GCNJ)World Business Council for Sustainable Development
The World Business Council for Sustainable Development(WBCSD) is an organization led by CEOs of forward-looking
companies in more than 30 countries worldwide. Its aim is
to create a sustainable future for business, society, and theenvironment. Hitachi has participated in the WBCSD since
1995.

International Standardization Activities
To help create and expand markets as well as to accelerate
our global business expansion, we are actively involved indeveloping international standards and are willing to commit
employees to serve as chairpersons or internationalsecretaries or in other key positions of international
standards developing organizations, such as theInternational Electrotechnical Commission (IEC) and theInternational Organization for Standardization (ISO).
The Hitachi Group Standardization Committee wasestablished to work for coordination among the HitachiGroup toward international standardization. The Steering
Committee*1 of this body determines priority themes andpromotes standardization activities by creating working
groups for each theme.
Hitachi’s international standardization work is wellregarded. In fiscal 2015, we received the Industrial
Science and Technology Policy and Environment Bureau
Director-General’s Award in the Ministry of Economy,
Trade, and Industry’s Industrial Standardization Awards,
and we were honored by the Telecommunication
Technology Committee and the Information Technology
Standards Commission of Japan.
Hitachi is committed to contributing to international
standardization via standard-developing organizations likethe IEC, ISO, and various consortia to facilitate innovationthat resolves social issues, as well as to providing solutions
consistent with international standards to support thedevelopment of sound global markets.
*1 Steering Committee: Headed by the executive officer overseeing R&D, this entity
includes chief technology officers of Hitachi business units and Group companies. The
committee is responsible for decisions on cross-departmental and companywide
standardization projects.

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

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

Steering Committee

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

Hitachi Group Standardization Committee

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24

Hitachi Sustainability Report 2016

Management Approach
Review and Improvement of CSR Activities

Activities

Performance Data

Enhancing CSR Management

Review and Improvement of CSR Activities
Hitachi’s Aims
Our society faces a wide range of problems, including global warming, poverty, and social discrimination, anddemand is growing for corporations to address these problems.
To meet these expectations, Hitachi is integrating its management and CSR, incorporating CSR into routine
business practices throughout the organization and improving the quality of management by implementing the PDCA
cycle. By communicating with our stakeholders, we are affirming our relationship of trust with society, and by sharing
values with stakeholders, we will aim to achieve both the sustainable development of society and our economic
growth as a global company.

Enhancing CSR Management
Hitachi’s Approach

Hitachi’s CSR Management Framework

We are building our CSR policy on a framework based on
ISO 26000 to promote activities that are consistentthroughout the Group, actively organizing global CSR
meetings and undertaking initiatives at the national andregional levels, with the aim of building and developing a
global, Group-wide CSR network. We attach importance toinformation disclosure, on which communication withstakeholders is based, and are responding to stakeholder
needs through the Hitachi Sustainability Report, containing
standard disclosures defined in the GRI Sustainability
Reporting Guidelines.

To realize the Hitachi Group Vision, which draws on our
Corporate Credo and Founding Spirit that form the core of
our CSR, we have been sharing throughout the Group our
CSR Policy, created in 2005, as the basis of our CSR
activities. In keeping with a management strategy of actively
advancing our Social Innovation Business, we have, since
fiscal 2014, adopted a framework of nine key themes basedon ISO 26000 with the aim of further integrating
management and CSR and continually improving our CSR
activities by running the PDCA cycle.

CSR Management Framework

Recognize
Properly recognize our social
responsibility

Review and Improve
Confirm and enhance CSR
activities through proactive
communication and stakeholder
engagement

1 Recognition of Social
Responsibility
2 Corporate Governance3 Human Rights
1
4 Labor Practices
5 Environment
6 Fair Operating Practices
7 Customers (Consumer Issues)
8 Community Involvement andDevelopment
9 Review and Improvement of
CSR Activities

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

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Hitachi Sustainability Report 2016

Management Approach
Review and Improvement of CSR Activities

Activities

Performance Data

Enhancing CSR Management

The Selection and Boundaries of CSR Reporting
ThemesHitachi’s Engagement with Material Issues
Hitachi’s CSR activities are premised on an accurate
perception of changing social issues and expectations. To
strengthen the integration of management and CSR, fromfiscal 2015 to the first quarter of fiscal 2016, Hitachi, Ltd.
prioritized, from its own perspective, its CSR initiatives inaccordance with the 2018 Mid-term Management Plan. As aresult, three material issues were identified, namely, social
innovation, collaborative creation, and the environment. Ouraims for each item were formulated, and initiatives are being
actively advanced using the CSR management frameworkas the foundation for the achievement of those aims.
Hitachi’s Material Issues
Material issues

Aims for each issueSocial innovation

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

Collaborative creation

Share understanding of issues and ideals with various
stakeholders, suggesting and implementing solutions withthem, to create new social value and minimize adverse risks

Environment

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

In reporting the achievements of its CSR initiatives, Hitachiseeks to select those themes that are of interest to its
stakeholders. To ascertain the ever-changing interests ofstakeholders in the light of fluctuating economic and social
conditions, we have endeavored since fiscal 2014 to give
specific examples of our initiatives under our nine-item
CSR management framework. We take note ofstakeholders’ own priorities, analysis conducted by outside
consultants, and the opinions of experts in choosing
initiatives that correspond to our nine framework items.
These are further screened with reference to the ESG(environmental, social, and governance) investment indexes
and SASB (Sustainability Accounting Standards Board)
standards, reviewed by the executive officer in charge of
CSR, and reflected, starting this year, in Hitachi
Sustainability Report 2016.
We also aim to provide a more detailed account of thereported themes’ social impact by clarifying theboundaries (importance to internal and external
stakeholders) of each theme.

Items

Reporting themes

1

Recognition of social responsibility

Realizing sustainable, innovative management

2

Corporate governance

Understanding issues through dialogue and taking part in initiatives
Pursuing management transparency and efficiency
Sharing a Hitachi Group Identity
Advancing risk management on multiple fronts
3

Human rights

4

Labor practices

Respect for human rights throughout the value chain
Respect for workers’ rights
Achieving a fair and equitable work environment
Promoting diversity and inclusion
Promoting occupational health and safety
A strategy for growing together with our global human capital

5

Environment

Promoting environmental management
Enhancing environmental management on an ongoing basis
Responding to environmental risks and opportunities
Reducing the environmental burden of our business operations
Preserving ecosystems

6

Fair operating practices

7

Customers (consumer issues)

Promoting work practices in line with international ethics codes
Engaging in responsible procurement
Pursuing customer satisfaction
Ensuring accessibility to products and services
Ensuring thorough management of quality and safety

8Community involvement and development

Promoting sustainable community involvement and development

9

Review and improvement of CSR activities

Enhancing CSR management

Reporting boundary
Internal

External

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26

Hitachi Sustainability Report 2016

Management Approach
Review and Improvement of CSR Activities

Activities

Performance Data

Enhancing CSR Management

CSR Management Structure
In October 2013, the CSR Division and the Environmental
Strategy Office at Hitachi, Ltd. merged to form the CSR andEnvironmental Strategy Division. We are sharing the HitachiGroup CSR Statement and Mission, created in fiscal 2014 tolay out the goals of the new organization, with business units
and Group companies.
To promote CSR across the Group, the CSR andEnvironmental Strategy Division, together with CSR-related
departments at Hitachi, Ltd. (the CSR Promotion Team*1)
and CSR departments of business units, Group companies,
and regional headquarters outside Japan, hold regular global
CSR meetings to share a common direction and developGroup-wide CSR policies and initiatives.
To fulfill our social responsibilities, as well as to seek
sustainable growth as a global company, we conduct

stakeholder dialogue on a worldwide basis in cooperation
with our regional headquarters and take a proactive
approach to incorporating global social issues into ourmanagement strategy while continuously striving to improve
the quality of our management.
*1 CSR Promotion Team: Takes the lead in implementing important CSR initiatives
throughout the Group.

Hitachi Group CSR Statement and Mission
We strive to realize a sustainable society by properly understanding
global social and environmental expectations through communication
with our various stakeholders and integrating those expectations into
our management:
CSR and environmental initiatives that contribute to solving social
issuesGovernance that realizes sustainable management
Communication that fosters mutual understanding with stakeholders

Structure of Hitachi Group CSR Promotion
President

Senior Executive
Committee*1

CSR and
Environmental Strategy
Division (Secretariat)

Heads ofbusiness units
CSR promotion officers

Business sites/Plants

Group company
presidents
CSR promotion officers

Group companies

CSR Promotion TeamGroup Management, Corporate Brand Management,
Customer Satisfaction, Overseas Operations, Employee
Relations & Human Capital, Legal Affairs, Corporate
Citizenship, Environmental Conservation, Compliance, Quality
Assurance, Procurement, Public Relations, Research andDevelopment, Government and External Relations

Regional headquarters outside Japan
Regional executives
CSR promotion officers
Hitachi, Ltd. and 1,056 consolidated subsidiaries and 249
equity-method affiliates*2*1 Senior Executive Committee: Develops CSR management policies at the executive level.
*2 As of March 31, 2016.

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Hitachi Sustainability Report 2016

Management Approach
Review and Improvement of CSR Activities

Activities

Performance Data

Enhancing CSR Management

Main Plans and Results
Recognition of Our Social Responsibility
Achievement
level

Policies

FY 2015 goals/plans

Results in FY 2015

· Perception of company’s impact on society throughinteractive communication with stakeholders· Engage in stakeholder
dialogue in Japan· Conducted objective
evaluation of material
issues· Held six dialogues withexperts, investors,
research firms, and others· Continue stakeholder
dialogue at business units· Engage in stakeholder
dialogue outside Japan· Held dialogues in India,
Australia, Europe, andChina· Continue stakeholder
dialogue outside Japan· Implementation of PDCA cycle on the formulation andcommunication (inside and outside the company) of the visionand growth strategy for CSR management· Confirm progress in the
final year of 2015 Midterm Management Planand implement measuresto achieve targets· Examine longer-term
issues in formulating 2018
Mid-term Management
Plan while also
considering anddeveloping specificmeasures· Strengthened frontline
functions throughrealignment into 12
business units toaccelerate collaborative
creation with customers· Management executives
reviewed strategic
scenarios of each business
unit in preparation for 2018
Mid-term Management
Plan· Develop human capitalthrough special training
program (19,000
employees by fiscal 2018)· Formulation andannouncement of 2018
Mid-term Management
Plan and promotion ofstrategic projects· Promotion of innovative R&D that contributes to resolving
customers’ or society’s issues· Actively promote
information on research
activities and achievements· Achieve recognition forworld-leading innovative
research· Issued 27 press releases(7 related to open
innovation)· Received 54 external
recognitions, including theMedal with Yellow Ribbon
and Contemporary Master
Craftsman award· Continue policy of
disclosure and open
innovation· Continue to conduct
world-leading innovative
research that isrecognized by peers andcontributes to resolving
challenges in society· Global brand communication activities· Implementation of “Global Brand Campaign” under aintegrated communication strategy· Advertise in 20 countries,
including Japan· Ran three creative themes(two for TV commercials)
in 20 countries, includingJapan· Awareness ofadvertisements reached
its target level in 15 of the
18 countries surveyed· Advertise in 19 countries,
including Japan· Proactive communication of operations· Proactive participation in and contributions to social initiatives
and policymaking· Revitalize proactive public
relation activities· Actively participated incommittees ofgovernment institutions
and economic
organizations· Continue revitalizing
proactive public relation
activities

Policies

FY 2015 goals/plans

Results in FY 2015

· Development of CSR network on Group-wide, global basis· Hold global meeting of
CSR promotion officers· Held global meeting of
CSR promotion officers· Continue holding global
meeting of CSR
promotion officers· Hold regional meetings of
CSR promotion officers· Communication with stakeholders through information
disclosure· Publish Hitachi Group
Sustainability Report 2015
and Highlights containing
standard disclosures fromthe GRI Sustainability
Reporting Guidelines andobtain independent
assurance· Published Hitachi Group
Sustainability Report 2015
and Highlights containing
standard disclosures fromthe GRI Sustainability
Reporting Guidelines andobtained independent
assurance· Identified issues in the
Hitachi Group
Sustainability Report 2015
and selected reporting
themes for Hitachi
Sustainability Report 2016
in keeping withstakeholder interests· Publish integrated report,sustainability report, andcompany outline and think
about project team fornext year’s publications· Obtain feedback fromstakeholders: Achieved: Partially achieved

FY 2016 goals/plans: Not achieved

Review and Improvement of CSR Activities: Achieved: Partially achieved: Not achieved

Achievementlevel

FY 2016 goals/plans

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28

Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Activities

Corporate Governance

29–37

Pursuing Management Transparency and Efficiency

29

Sharing a Hitachi Group Identity

33

Advancing Risk Management on Multiple Fronts

35

Human Rights

38–40

Respect for Human Rights
Throughout the Value Chain

38

Respect for Workers’ Rights

40

Labor Practices

Fair Operating Practices

52–57

Promoting Work Practices in Line
with International Ethics Codes

52

Engaging in Responsible Procurement

54

Customers (Consumer Issues)

58–65

Pursuing Customer Satisfaction

59

Ensuring Accessibility to Products and Services

61

Ensuring Thorough Management of Quality
and Safety

63

41–51

Achieving a Fair and Equitable Work Environment

42

Promoting Diversity and Inclusion

42

Promoting Occupational Health and Safety

47

A Strategy for Growing Together
with Our Global Human Capital

49

Community Involvement and Development

66–67

Promoting Sustainable Community Involvement
and Development

66

Environment68–92

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Hitachi Sustainability Report 2016

Management Approach

Activities
Corporate Governance

Performance Data

Pursuing Management Transparency and Efficiency

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

Main Plans and Results
Achievement
level

Policies

FY 2015 goals/plans

Results in FY 2015

· Instilling of the
Hitachi Group
Identity inemployees· Further instill the HitachiGroup Identity under an“autonomous
decentralized global
management” structure,raise employee
awareness globally torealize the Hitachi Group
Vision· Implemented the brand awards “Inspirationof the Year Global Awards 2015” to promote
understanding the Hitachi Group Identityand Hitachi brand; shared within the HitachiGroup video of the round table session withCEO Toshiaki Higashihara and the grandprix winners· Held brand-training sessions to gain
employees’ understanding about the
Hitachi brand· Held brand-training sessions in Europe,
Southeast Asia, China, and India· Realize the Hitachi Group Vision by further
instilling the Group Identity in employees,
raise employee awareness to achieve the2018 Mid-term Management Plan
(1) Provide training worldwide to promote
understanding of the Hitachi Group
Identity and the Hitachi brand value(2) Implement the brand awards “Inspirationof the Year Global Awards 2016”; fosterand utilize brand ambassadors(3) Hold brand-training sessions· Establishment ofcorporate ethics,
strict compliancewith laws andregulations· Enhance Group-wide
compliance framework
globally· Held Compliance Management Conference· Convened Advisory Committee· Revised Hitachi Global Compliance Program· Shared CEO’s message during Ethics andCompliance Month· Held Hitachi Group Compliance Conference· Appointed Regional Head of Compliance· Enhance Group-wide compliance framework
globally: Achieved: Partially achieved

FY 2016 goals/plans: Not achieved

Pursuing Management Transparency and Efficiency
Hitachi’s Approach
We not only strive to ensure the legality, soundness, andtransparency of our business but also endeavor to respondrapidly to constantly changing economic and social
conditions and efficiently conduct operations. At the sametime we are bolstering management oversight and monitoring
capabilities and clearly defining managerial responsibilities
with a view to sustainably enhancing our corporate value by

forging ever-stronger corporate governance.
Worldwide social and environmental megatrends, suchas population growth and climate change, have reached apoint in recent years where they are having a bigger impact
on corporate management decisions. As a global company
that contributes to society through our Social Innovation
Business, we are working to ensure that environmental andsocial issues are at the heart of decision making at thehighest levels of corporate governance.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Corporate GovernanceDriving Hitachi’s Governance
Hitachi, Ltd. has adopted the committee system, which has
nominating, audit, and compensation committees.*1 We aim
to establish a framework for quick business operations andto realize highly transparent management by separating the
responsibilities for management oversight from the executionof business operations. The majority of our Board of
Directors are outside directors, including non-Japanese. Our
goals are to reflect diverse and global viewpoints as well as
to reinforce management supervisory functions. We haveformulated and published Corporate Governance Guidelines
outlining the framework of corporate governance, such as
the function and composition of the Board of Directors,
qualifications for outside directors, and the criteria forassessing the independence of outside directors.
*1 A corporate governance system under the Companies Act of Japan, where a board of
directors makes basic policy decisions and oversees the execution of business byexecutive officers, while the executive officers, appointed by the board of directors,
execute the company’s business affairs via a set of statutory committees.

Corporate Governance Guidelines

Governance Structure of Hitachi, Ltd.
The Board of Directors comprises a majority of outside
directors and includes five non-Japanese directors, two ofwhom are women. This represents an effort to reflect global,
diverse viewpoints in company management, as well as toreinforce management supervisory functions.
General Meeting of Shareholders
Election

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

Audit Committee(4 members,
including 3 from outside)

Appoint(5 members,
including 3 from outside)

Pursuing Management Transparency and Efficiency

A Business Structure for Collaborative Creation

Corporate GovernanceNominating
Committee

Performance Data

Compensation
Committee(4 members,
including 3 from outside)

Supervise

Executive Officers: Quick execution of company business

From fiscal 2016 we are transitioning from our existingproduct-specific in-house company system to a businessstructure that bolsters frontline functions to acceleratecollaborative creation with customers and provide innovation
through our services and products.
Market-Specific Business Structure with Strengthened
Frontline Functions
Our new business structure consists of service-focusedbusinesses that provide innovation as a service to ourcustomers and product-focused businesses that furnish
products, parts, and materials.
In the service-focused businesses, the service andplatforms business unit provides a shared, open platform,and 12 front business units offer services in the power andenergy, manufacturing and water, urban development,
finance, public sector, and healthcare markets. The front
business units have bolstered frontline functions such as
sales, engineering, and consulting, while the service andplatforms business unit offers a shared platform for
aggregating and integrating technologies essential toproviding advanced services, including artificial intelligence(AI), analytics, and control technologies, integrating them ina system enabling collaborative innovation with customers.
Our product-focused businesses present customers andfront business units globally competitive products, parts,and materials.
Business units are directly operated by the president,
while CEOs of individual business units have investment
authority and responsibility for profit and earnings. They
work in partnership with other business units,comprehensively and organically leveraging the resources ofthe entire Hitachi Group and creating innovations quickly
and flexibly in order to provide optimum products andservices to customers.
Our business model aims to sustainably create value.
Through our Social Innovation Business it contributes toimproving people’s quality of life by addressing on an
ongoing basis the issues society and our customers face.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Corporate Governance

Performance Data

Pursuing Management Transparency and Efficiency

Fiscal 2016 New Business Structure
President and CEOGroup Corporate
R&D Group
Service-focused businesses

Chief Executive for China

Chief Executive for Asia-PacificChief Executive for EMEA/CIS

Chief Executive for the Americas

Healthcare business unit

Governments and public
corporations business unit

Financial institutions business unit

Defense systems business unit

Urban solutions business unit

Railway systems business unit

Manufacturing/
Water

Building systems business unit

Water business unit

Manufacturing and commercebusiness unit

Electric power business unit

Energy solutions business unit

Nuclear power business unit

Power/Energy

12 front
business units

Finance/Public/
Healthcare

Urban development

Service and platforms business unit

Product-focused businesses

Industrial products business unit

Group companies
Products, components, materials, etc.

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

Transition to a Global Management System
To accelerate growth in the global market, Hitachi in April
2015 appointed regional chief executives in the four global
regions of the Americas, China, the Asia-Pacific, and EMEA/
CIS.*1 In addition to creating regional growth strategies,
promoting localization, and effectively utilizing management
resources, the chief executives have authority to establish
our Social Innovation Business in new business areas where
growth is expected. The chief executives also advance ourSocial Innovation Business based on market needs,
providing services and solutions that leverage our strengths.
Toward the goal of thorough compliance, they promote
coordinated global management of our operations andefficient allocation of our management resources. In thisway, Hitachi provides innovation at the highest level andestablishes firm governance as a global company.
In the Americas, a market that features world-leading IT
innovations, big data analytics are providing new solutions ina variety of industries, including energy. In China, we havebrought the direction of our Group operations in line withgovernment initiatives for strengthening infrastructure
networks and improving health presented in the Thirteenth

Five-Year Plan, and are also promoting our Social Innovation
Business in developing countries. Social-infrastructurerelated demand is very strong in the Asia-Pacific, where theaim is to collaborate with local partners in the region indeveloping our Social Innovation Business to solve issues
common in urban areas. In the EMEA/CIS region, where
innovations in manufacturing drive markets, the focus will beon rolling out our Social Innovation Business aimed atincreasing efficiency in production and supply chains. In allthese regions, the chief executives will act as regional“control towers,” developing and building solutions with
Hitachi customers to resolve a variety of global issues thatare becoming increasingly complex and borderless.
*1 EMEA/CIS: Europe, the Middle East, Africa, and Commonwealth of Independent States.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Corporate Governance

Performance Data

Pursuing Management Transparency and Efficiency

Internal Control over Financial Reporting

Compensation for Directors and Executive Officers

To ensure the reliability of consolidated financial reporting,every company develops and uses assessment
documents for company-level controls, and businessprocess controls based on the guidelines determined by
our J-SOX Committee.* 1
Our business units and major Group companies havedeveloped mechanisms to objectively perform assessments.
Assessment results are reported to the J-SOX Committee’s
office to assess the effectiveness of internal control.

Compensation for each director and executive officer isdetermined by the Compensation Committee in accordancewith the provisions of the Companies Act of Japan.
Compensation for directors consists of monthly
remuneration and a year-end allowance. Compensation for
directors is basically fixed.
Compensation for executive officers consists of monthly
remuneration, a performance-linked component, andmedium- and long-term incentive compensation. The higher
the position that executive officers hold is, the higher the
proportion of variable pay (the sum of the performancelinked component and the medium- and long-term incentive
compensation, not including monthly remuneration as fixedpay) is as a portion of the total annual compensation.
Monthly remuneration is decided by adjusting a basic
amount to reflect the results of an assessment. The basic
amount is set in accordance with the relevant position. The
performance-linked component is decided by adjusting abasic amount to reflect financial results and individual
performance. The basic amount is set within the range ofabout 25% to 35% of the total annual compensation of each
executive officer in accordance with the relevant position.
Medium- and long-term incentive compensation is in theform of stock options as stock-based compensation, withshare price conditions (stock acquisition rights with thestrike price of ¥1), with the number granted determinedwithin the range of about 10% to 40% of the total annualcompensation of each executive officer in accordance withthe relevant position. As for expatriates, cash awards basedon the value of Hitachi’s share price with similar conditions
are substituted for the stock options.
Beginning with compensation for fiscal 2008, the systemfor directors and executive officers was revised to abolishretirement allowances. The payment of retirement
allowances to directors and executive officers due to theabolition of the retirement allowance system will be in an
amount determined by the Compensation Committee at thetime of the retirement of a relevant director or executive
officer. The amount of compensation for directors andexecutive officers in fiscal 2015 is shown below.

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

Hitachi Internal Control Assessment System
Financial Services
AgencyInternal Control
ReportHitachi, Ltd. President
and CFO
ReportReportJ-SOX Committee
Committee’s office
ReportBusiness units andmajor Group companies
ReportSubsidiaries

Audit
Committee

ReportIndependent
Auditors

Collaboration
Internal
Auditing
OfficeExternal
Audit

FY 2015 Compensation to Directors and Executive Officers
Category
Directors (outside directors)

Recipients (number)

Total amount (millions of yen)
11 (8)

398 (280)

Executive officers

28

1,763

Total

39

2,161

* The number of directors indicated excludes two directors who concurrently serve as
executive officers.
* Compensation to directors includes the monthly remuneration of one director who retired
due to expiration of his term of office at the close of the 146th Annual General Meeting of
Shareholders held on June 25, 2015.
* In addition to the above, there are retirement allowances of 56 million yen for two
executive officers who retired on March 31, 2016.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Corporate Governance

Performance Data

Sharing a Hitachi Group Identity

Sharing a Hitachi Group Identity
Hitachi’s Approach
We carry out our business not only in full compliance withlegal requirements but also in ways that ensure socially
responsible conduct. Spreading understanding of thisamong all Hitachi employees is a fundamental
management issue. As economic activity becomesincreasingly borderless, there is a growing need for steps
to eradicate bribery, corruption, and other illegal behavior
in accordance with conditions in the countries andregions where we have operations. As a global company,
we are implementing a consistent compliance structure
across the entire Hitachi Group.
In pursuing sustainable management, we give equal
importance to value creation that contributes to theresolution of social issues. This is being advanced
through the dissemination and sharing among all
employees of the Hitachi Group Identity—an integrated
set of principles spelling out our management vision,
Codes of Conduct, and values.

Sharing Codes of Conduct and ComplianceApproaches Throughout the Group
Ensuring Awareness of the Hitachi Group Codes ofConduct
Hitachi, Ltd. formulated the Hitachi Group Codes ofConduct as a common conduct code for the Hitachi Groupin fiscal 2010. We issued the Hitachi Group Codes ofConduct Handbook in fiscal 2011 as a guidebook for all
employees; as of March 2016, more than 250,000 copies
have been distributed to employees in Japan. We ask
managers to submit a written pledge to comply with the
Hitachi Group Codes of Conduct. To deepen awareness ofthe codes throughout our global operations, we haveproduced English and Chinese versions of a Japaneselanguage e-learning tool showing appropriate behavior andpresenting specific examples for use in Hitachi Group
companies within and outside Japan.
Hitachi Group Codes of Conduct

Enhancing Our Compliance Framework
To comprehensively implement our compliance framework,
we have appointed a senior executive as the head of risk
management for the entire Hitachi Group. Every business
unit and key Group company also has an executive
handling risk management, assisted by a compliancemanager. We are also supporting regional Group
companies and have appointed compliance heads in 11
regions globally.
Under this system, policies and measures are sharedthrough the Compliance Management Conference, composedof risk management executives from business units and key
Group companies. In addition, all compliance managers meet
regularly at the Hitachi Group Compliance Conference toprovide information on compliance and to confirm
implementation of required actions.
The Advisory Committee, consisting of outside experts,
convenes regularly to exchange views on the state ofcompliance initiatives. The insights provided by committee
members are utilized to improve policies and actions.
The internal audit section regularly conducts Groupwide reviews to verify that each area of compliance isbeing appropriately operated. In cases where the reviews
identify necessary improvements, corrective measures are
swiftly implemented.

Compliance Reporting System
Hitachi has instituted a Group-wide whistleblowing system
to prevent illegal and unethical behavior, to promptly addressinfractions, and to enhance our ability to self-regulate.
In this system, reports go directly to the ComplianceDepartment at Hitachi or to an outside attorney. Thissystem can be used not only by employees within the
Hitachi Group, who are able to report issues throughin-house channels, but also by temporary staff andsuppliers. In addition, we have implemented the Channel tothe Board of Directors system to allow employees todirectly report problems anonymously to Hitachi directors.
The facts related to all reports are subject to thoroughinvestigation and checking, and people who have identified
themselves in the reports are informed of the investigation
results. We make every effort to appropriately deal withsituations, including taking remedial action where
necessary.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Corporate GovernancePrevention of Antisocial Transactions
To cut off all relationships with organized crime groups andother antisocial forces, we observe the following threeprovisions laid out in the Hitachi Group Codes of Conduct:
1. We will have no relations whatsoever with antisocial
forces such as organized crime groups, and we will
never engage in antisocial transactions under any
circumstances.
2. We will prevent antisocial transactions through selfinspection of our transactions.
3. We will oppose antisocial forces such as organizedcrime groups with firm resolve, and refuse any
improper demands.
The entire Hitachi Group acts decisively to eliminate
approaches from antisocial forces in partnership with, where
necessary, the police, external specialist institutions (theNational Center for the Elimination of Boryokudan andTokuboren, the Federation on Special Organized Crimes
Within Jurisdiction of the Metropolitan Police Department),
and lawyers. We include an organized crime elimination
clause in contracts so that if it is determined that a business
partner belongs to an antisocial group, we can void thecontract and break off the relationship.

Thorough Export Controls
For basic export control policies, we have adopted the
Hitachi Standards of Corporate Conduct, which state:“We shall help maintain international peace and security
through compliance with trade-related laws andregulations.” We established the Corporate Regulations
concerning Security Export Control based on this policy in
1987. We carry out strict export control practices in linewith relevant laws and regulations, screening all goods
and technologies intended for export against such factors
as destination countries and regions as well as intended
end use and end users. We provide guidance andeducational support to Hitachi Group companies toensure that all Group companies follow the same export
control policies. In fiscal 2015, we held workshops forGroup companies in the United States, South Korea, andIndia providing practical training on export control. During
this period an e-learning program in Japanese, English,
and Chinese—Export Controls of the Hitachi Group(Introductory Course)—was introduced and taken byaround 113,000 employees at Group companies
worldwide.
Preventing Bribery and Corrupt Practices
Preventing Violations of Fair Competition Laws

Performance Data

Sharing a Hitachi Group Identity

Sharing Values Throughout the Group
Solidifying the Hitachi Group Identity
Instilling the Group Identity in Employees
To help us solve social issues through understanding andembodiment of the Hitachi Group Identity, our brandmanagement must engage everyone in the Group. We use
channels including our intranet to ensure that Group
employees are clearly aware of what needs to be done toexpress the Group Identity. To promote understanding of the
Hitachi Group Identity and the Hitachi brand, we launched
the Inspiration of the Year Awards in fiscal 2003 to shareactivities within Hitachi that have demonstrated the HitachiGroup Identity and made an outstanding contribution to ourbrand value. In fiscal 2012, we began evaluating applications
globally, renaming the program the Inspiration of the Year
Global Awards. In fiscal 2015, the awards saw 227
applications from China, Europe/Africa, India, North
America, Southeast Asia, and Japan. Outstanding activities
from each region were highlighted on the intranet, and thepresident presented the awards at a ceremony held at ourTokyo headquarters.
To further instill the Hitachi Group Identity and promote
understanding of the Hitachi brand among our employees
globally, we held brand-training sessions utilizing the Hitachi
Brand Book, a straightforward explanation of the Group
Identity and Hitachi brand, and the Hitachi Vision Movie, avisual depiction of the Hitachi Group Vision. By raising
employee awareness of the Hitachi Group Identity throughthese activities, we continue to strive to become a company
that “delivers innovations that answer society’s challenges.”
Hitachi Group Identity

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Hitachi Sustainability Report 2016

Management Approach

Activities
Corporate Governance

Performance Data

Advancing Risk Management on Multiple Fronts

Advancing Risk Management on Multiple Fronts
Hitachi’s Approach
Changes to our operating environment from such factors as
the globalization of the economy and advances in andspread of information and communications technology (ICT)
lead not only to the expansion of business opportunities but
also to the diversification of risks to our operations.
We have built a diverse risk management system underwhich we carry out risk analysis to accurately gauge
ongoing economic and social changes and use the insights
gained to take preventive measures and ensure a rapid
response to issues that may arise unexpectedly. As acompany deeply involved in infrastructure projects incountries and regions around the world, we strive tominimize risks to society from our operations. Measures
include those to ensure the stable supply of our products
and services, further tighten our information security, andreinforce business continuity plans (BCP).

Reinforcement of Risk Management System
The entire Hitachi Group is reinforcing its risk
management system to address increasingly globalized
and complex risks.
Under Hitachi, Ltd.’s head of risk management, eachbusiness operation assigns an executive as its risk
management officer to manage risks mainly concernedwith compliance, export control, disasters, and crime, andto respond adequately in coordination among the entire
Group. Furthermore, Hitachi is building a comprehensive
risk management system that contains standards andprocedures to objectively evaluate different risks that may
affect business.

secondary and other suppliers, cloud storage andmultiplexing of production information, and the need tosecure alternate transportation and fuel sources.
Based on the lessons learned from this disaster, in
October 2011 we released and distributed new BCP
guidelines for departmental implementation to further improve
our BCPs. Hitachi Group operations in Japan completed their
preparation and review of BCPs, based on applicability to theiroperations, by the end of fiscal 2011. BCPs for large
earthquakes and novel strains of influenza have been preparedfor 49 Hitachi, Ltd. business sites and 96 Group companies.
On top of these efforts, since fiscal 1998, Hitachi, Ltd.
has held annual earthquake drills simulating a major seismic
event at key operations in Japan. In November 2015, Hitachi
Automotive Systems held coordinated drills at its head officeand business sites in the cities of Sawa, Atsugi, andFukushima, where managers in charge of their divisions
confirmed the action plans in emergency situations basedon BCPs.
In fiscal 2013, Hitachi appointed personnel in charge ofrisk-response policies at its main overseas bases andaround 300 companies prepared BCPs with the goal ofcompleting them for key operations by the end of fiscal
2013. These BCPs are aimed at strengthening our ability torespond to business risks, including large disasters, novel
strains of influenza, political instability, and social disruption,
as well as acts of terrorism. Moving forward, we intend tofurther expand the scope of our BCPs.

Stable Provision of Products and Services
Creating BCPs in Key Operations Worldwide
Given the close relation of our business to social
infrastructure, we are enhancing our BCPs to ensure that the
impact of risks does not disrupt our business and thereby
significantly affect society. In December 2006, we issued the
Hitachi Group Guidelines for Developing Business Continuity
Plans in Japanese. In fiscal 2010 these were translated into
English and Chinese for distribution to all Hitachi Group
companies worldwide to ensure our response readiness forlarge disasters and other risks.
When the Great East Japan Earthquake struck in March
2011, our BCPs enabled quick responses and swift decision
making. However, issues emerged including identification of

Hitachi Group Guidelines for Developing Business Continuity
Plans (department version).

Earthquake simulation drill.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Corporate Governance

Creation of Procurement BCPs
We have a deep involvement in social infrastructures inplaces where the suppliers who are our business
partners can be affected by major earthquakes and othernatural disasters.
These disasters can heavily impact not only ourbusiness operations and those of our suppliers but alsosociety as a whole. To minimize this impact, theprocurement divisions in key Group and in-housecompanies in Japan have created procurement business
continuity plans (BCPs) that (1) standardize and use
generic parts to make procurement as flexible as possible;(2) cultivate multiple suppliers; (3) distribute production
across several locations; (4) budget inventory
strategically; and (5) consider substitute products. To see
whether or not procurement BCPs would be effective, we
held desktop exercises to discuss in a group what should
be done during and after a disaster, making further
improvements as a result. In fiscal 2015, 118 Group
companies outside Japan took similar steps to bolster
procurement BCPs, thereby contributing to thecontinuation of Hitachi’s global operations.

Improving Safety for Employees Sent to Dangerous
Regions
Responding to the hostage incident in Algeria in January
2013, then President Hiroaki Nakanishi reinforced his policy
in February 2013 of ensuring the safety of employees sent
to countries and areas at higher risk. Survey missions of
in-house and outside experts are now sent beforehand toareas at high risk of war, terrorism, and other threats. Even
after employees are dispatched to such areas, we conduct
additional local surveys every six months as a means ofconfirming the effectiveness of our safety policies. In fiscal
2014, survey missions were sent to several countries inAfrica and the Middle East. In addition, we have introduceda range of safety measures in the light of recent terrorist
incidents involving Japanese and other nationals, including
providing timely alerts to employees. These and othersteps underscore our commitment to ensuring the safety of
our employees working around the globe. Hitachi is also
contributing to safety measures at other Japanese
corporations operating outside Japan. To help enhancecollaboration between the private and public sectors in thisarea, Hitachi executives participated in the Council for
Public-Private Cooperation for Overseas Safety organizedby Japan’s Ministry of Foreign Affairs. Since 2014 Hitachi
has taken part in public-private kidnap incident preparatory
training exercises.

Performance Data

Advancing Risk Management on Multiple Fronts

Promoting Information Security
Implementing Rigorous Information Security
The Information Security Committee, chaired by the Chief
Information Security Officer, determines our information
security policies and procedures. The Information Security
Promotion Council and other bodies convey decisions
internally and to other companies in the Hitachi Group.
Information security officers at business sites andcompanies ensure that these decisions are implemented in
the workplace.
The Hitachi Group emphasizes two points in
information security and personal information protection:(1) Precautionary measures and prompt security responses
We classify assets to be secured and take safeguarding
measures based on vulnerability and risk analyses. We also
have an emergency manual for security breaches, based on
the assumption that these are inevitable, and not just possible.
(2) Promoting stronger ethical and security awareness among
data users
We have prepared a program tailored to Hitachi’s various
personnel levels and are working to raise the prevailing senseof ethics and security awareness through Group-widee-learning. We are also conducting audits to identify andaddress problems early on.

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

Improve user literacy
Supply security
education materials
Educate managers andstaff

Information
assets to beprotected

Implement preventive
techniques
Widely implementadministrative measures
Deploy technologicalprocesses

Establish information security system
Develop rules (security policy)
Create managerial framework
Establish audit and follow-up system
Ensure solid feedback through extensive PDCA
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Hitachi Sustainability Report 2016

Management Approach

Activities
Corporate Governance

Education on Information Security
Consistently maintaining information security requires all
parties to continually develop their knowledge of information
handling and to remain strongly aware of the issues. For
this reason, we hold annual e-learning programs on
information security and personal information protection for
all directors, employees, and temporary employees.
Nearly all of the roughly 40,000 employees at Hitachi,Ltd. participate in these programs. We provide specificadditional training, with clear goals, that is geared to new
employees and managers, and to information systemadministrators in particular. In 2012, we also began
simulation training to educate employees about theincreasing trend toward targeted e-mail attacks and othercyberattacks. Employees are sent examples of targetede-mail to heighten their awareness of security throughdirect experience.
Our educational programs, available to Hitachi Group
companies in Japan and other global regions, provide
Group-wide education on information security and personal
information protection.

Preventing Information Leaks
Hitachi, Ltd. has formulated the Three Principles forPreventing Leakage of Confidential Information to ensure thehighest level of care for such information and to prevent
leaks and other incidents involving it. Our policies ensurethat if an incident does occur, damage is promptly minimizedby contacting customers, reporting to government agencies,
investigating causes, and acting to prevent any recurrence.
Hitachi Group companies take the following IT steps toprevent information leaks: using encryption software andsecure PCs; employing electronic document access control
and expiration processing software; maintaining ID
management and access control by building anauthentication infrastructure; and filtering e-mail and visited
websites. In response to the recent spate of targeted e-mailattacks and other cyberattacks, we are participating in an
initiative to share information between the private sector andthe government. We are also enhancing our IT organization
by adding more layers to our leak prevention procedures,
including both entry and exit countermeasures.
To ensure the secure exchange of information with our
suppliers, we review their information security measures
based on Hitachi’s own standards before allowing themaccess to confidential information. We have provided tools
to suppliers (procurement partners) for security educationand for checking business information on computers. In
addition, we require suppliers to check and remove businessinformation from personal computers to prevent leaks.

Performance Data

Advancing Risk Management on Multiple Fronts

Three Principles for Preventing Leakage ofConfidential Information
Principle 1
As a general principle nobody can take Confidential Information outof the Company’s premises.
Principle 2
Any person taking Confidential Information out of the Company’s
premises due to business necessity shall obtain prior approval fromthe Information Assets Manager.
Principle 3
Any person taking Confidential Information out of the Company’s
premises due to business necessity shall put in place relevant andappropriate measures against information leakage.

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

Thorough Information Security Audits and Inspections
The Hitachi Group has developed its approach to security
based on the “plan-do-check-act” (PDCA) cycle for its
information security management system. We conduct
annual information security and personal information
protection audits at all Group companies and business units.
The president appoints officers to conduct independent
audits. These officers are not allowed to audit their own
units, underlining our commitment to fairness and objectivity
in auditing. There are 238 Hitachi Group companies in Japanthat conduct audits in the same way as Hitachi, Ltd. and all
results are subject to confirmation. For Hitachi Group
companies outside Japan, we use a “common global selfcheck” approach to ensure Group-wide auditing andinspections. We implement Confirmation of Personal
Information Protection and Information Security
Management annually for the voluntary inspection ofbusiness unit workplaces. We conduct monthly Confirmationof Personal Information Protection and Information Security
Management assessments at 453 operations (as of March
2016) that handle important personal information. This
regular control mechanism ensures ample safety
management and implementation.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Human Rights

Performance Data

Respect for Human Rights Throughout the Value Chain

Human Rights
Hitachi’s Aims
As our value chain expands on a global scale, we find diverse working conditions, business norms, and trade practices
in countries and regions around the world, and this has highlighted the need to ensure respect for human rights in ouroperations. Society’s awareness of human rights issues is also rising, and companies are expected to address humanrights issues in accordance with such international standards as the UN Guiding Principles on Business and Human
Rights. Companies are now being asked not only to undertake initiatives for the in-house promotion of human rights but
also to avoid abetting human rights infringements by suppliers and customers.
In carrying out our business, Hitachi recognizes human rights as a key issue related to risk management. On thebasis of this awareness, we will respect the human rights of all stakeholders, including our own employees and supply
chain, in every country and region where we operate. We are also engaged in raising awareness of human rights
throughout the Hitachi Group and in expanding the scope of our activities through such measures as the launching of
human rights due diligence.
Main Plans and Results
Achievement
level

Policies

FY 2015 goals/plans

Results in FY 2015

· Promotion of
employee
understanding of
the Principles on
Business andHuman Rights
and respect forhuman rights· Implement human rights
training session for
Hitachi, Ltd. executive
officers· Hold human rights
workshops in Europe· Initiated human rights due diligence inprocurement· Implemented human rights due diligence
training for legal and compliance officers in
six Group companies in Europe· Distributed human rights message by CEO
Toshiaki Higashihara to approximately
148,000 executives and employees: Achieved: Partially achieved

FY 2016 goals/plans· Implement human rights training sessions for
Hitachi, Ltd. executive officers· Hold human rights workshops in Europe· Conduct e-learning· Implement human rights due diligence: Not achieved

Respect for Human Rights Throughout the Value Chain
Hitachi’s Approach
Hitachi operates in line with the Hitachi Group Human Rights
Policy and other guiding principles that set forth its respect
for international human rights norms. To implement theseprinciples, we carry out educational activities targeting
executives and employees on an ongoing basis to help

foster an organization in which human rights infringements
do not occur. At the same time, we are pressing forwardwith human rights due diligence. In fiscal 2015 we took
steps in our procurement divisions to assess potential
human rights risks in the supply chain, identify higher-priority
issues and craft specific measures to address them.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Human Rights

Respect for Human Rights
Human Rights Initiatives
In May 2013, we adopted the Hitachi Group Human Rights
Policy to supplement the Hitachi Group Codes of Conduct,drawn up in fiscal 2010. In this policy, we clarify ourunderstanding of human rights as being, at a minimum,
those outlined in the International Bill of Human Rights andthe International Labour Organization’s Declaration on
Fundamental Principles and Rights at Work. This policy
shapes Hitachi’s approach to meeting the responsibility torespect human rights, including implementing human rights
due diligence*1 in line with the UN Guiding Principles on
Business and Human Rights,*2 providing appropriate
education to employees, adhering to national laws andregulations in all the regions and countries where we
operate, and seeking ways to honor the principles ofinternational human rights when faced with conflicts
between internationally recognized human rights standards
and national laws.
In fiscal 2014, Hitachi added the perspective of
Business and Human Rights to its existing structures andpolicies and developed a guidance on human rights due
diligence that explains procedures for everyday businesspractices. Based on this guidance, in fiscal 2015 we initiatedhuman rights due diligence in procurement, assessing andprioritizing human rights risks in the supply chain andconsidering measures to reduce these risks.
*1 Human rights due diligence: An ongoing process to identify and assess potential andactual human rights impacts, integrate findings, and take appropriate action to preventor mitigate potential impacts or to provide for or cooperate in remediation of actual
impacts. The processes also cover tracking the effectiveness of actions to address
impacts and communicating externally.
*2 UN Guiding Principles on Business and Human Rights: Included in the March 2011
Report of the Special Representative of the Secretary-General on the issue of humanrights and transnational corporations and other business enterprises, John Ruggie (A/HRC/17/31).

Performance Data

Respect for Human Rights Throughout the Value Chain

units and business site committees, led by business unit
presidents and division heads. Business units provide
consultation services through which employees can seek
consultation on issues such as sexual harassment and areworking to ensure that those coming forward are treatedwith respect and dignity.
In a practice launched in fiscal 2014, we distribute ahuman rights message by Representative Executive Officer,
President, and CEO Toshiaki Higashihara every year on
December 10, Human Rights Day. In fiscal 2015,
approximately 148,000 executives and employees at
Hitachi, Ltd. and Group companies in and outside Japan
received an e-mail message regarding global trends inhuman rights, Hitachi’s human rights policy and activities,
and the importance of individual employees respecting
human rights in their work.
Compliance Reporting System

Hitachi, Ltd. Framework for Promoting Respect for Human Rights
Corporate Human Rights Promotion Committee
Chairperson Executive officer in charge of human capital
MembersP ersonnel in charge of corporate divisions such as sales, procurement,
human capital, and CSR
Business Unit and Business Site Committee
Chairperson Business unit presidents and division heads
Members

Division managers

Business Unit and Business Site Committee
Chairperson Business unit presidents and division heads
Members

Division managers

Business Unit and Business Site Committee
Chairperson Business unit presidents and division heads
Members

Division managers

Hitachi Group Codes of Conduct
Hitachi Group Human Rights Policy

Framework for Human Rights
Hitachi, Ltd. established the Corporate Human Rights
Promotion Committee in fiscal 1981 to gauge the impact ofbusiness activities on stakeholders’ human rights and todeliberate on mechanisms and policies for preventing
human rights violations. The executive officer in charge ofhuman capital chairs this body, whose members include
representatives from sales, procurement, human capital,
CSR, and other corporate units. Hitachi is improving its
Group-wide human rights awareness based on theguidelines discussed and written by the Corporate Human
Rights Promotion Committee. Information fromdeliberations is shared with all employees through business

Raising Human Rights Awareness Among Executives
and Employees
Hitachi conducts regular group training and seminars anduses videos to educate employees in each business unit
and Group company. The target is for each employee toattend these sessions at least once every three years(equivalent to a yearly participation rate of 33.3%). In fiscal
2015, the participation rate came to 71.8% at Hitachi, Ltd.
and 46.0% among Group companies. We also offer an
e-learning program on business and human rights,
launched in June 2013; as of March 2015, approximately
187,000 Group employees in Japan and elsewhere hadtaken the program. Using educational materials developedin line with the Hitachi Group Human Rights Policy,
adopted in May 2013, the program aims to ensure that
employees understand Hitachi’s human rights policy andact accordingly. The training is provided to all employees

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Hitachi Sustainability Report 2016

Management Approach

Activities
Human Rights

once every three years on average, taking into accounthuman rights trends worldwide.
In July 2015, moreover, 25 Hitachi, Ltd. executive
officers participated in an officer training session on thetheme of human rights in global businesses, led by Takaji
Hishiyama of the Center for Corporate Behavior. Touching
on several cases, Hishiyama discussed what theinternational community expects of corporations regarding
respect for human rights and how human rights risks
translate into business risks, among other topics.

Performance Data

Respect for Human Rights Throughout the Value Chain, Respect for Workers’ Rights

Human Rights Due Diligence Initiatives
In our Hitachi Group Human Rights Policy, we pledged tocontinue to develop structures for human rights due
diligence. Toward that end, in fiscal 2013 some business
units implemented pilot programs for human rights due
diligence to identify key issues that need to be clarified
for implementation of due diligence throughout the
Hitachi Group, while also analyzing and evaluating humanrights risks in six of the ASEAN countries. Based on the
results of these pilot programs, in fiscal 2014 wedeveloped a guidance document for implementing humanrights due diligence in collaboration with the nonprofit
organization Shift.
In fiscal 2015, we initiated human rights due diligence inthe procurement divisions, the activities of which canpotentially have negative impacts on the human rights ofworkers in the supply chain and local communities.
Human Rights Due Diligence in Procurement

A scene from the officer training session.

Respect for Workers’ Rights
Hitachi’s Approach
Our employees are tasked with maintaining respect forhuman rights within the supply chain, but at the same time,in their role as employed persons, they are also stakeholders
whose human rights must be upheld.
Hitachi’s longstanding approach has been to giveimportance to building a mutually beneficial relationship with
our employees as partners in a common effort. Moving
forward, we will continually strengthen our system of mutual
cooperation to build an equitable worker-employee
relationship and improve worker health and safety levels
based on respect for workers’ fundamental rights.

Freedom of Association and Collective Bargaining

In countries and regions where labor unions arerecognized, we espouse the three fundamental rights oflabor unions (to organize, to bargain collectively, and to act
collectively) as seen, for example, in the collective agreement
between Hitachi, Ltd. and the Hitachi Workers Union.

Notification of Work-related Transfers andReassignments
The collective agreement between Hitachi, Ltd. and the
Hitachi Workers Union states that any transfer orreassignment of an employee for work-related reasonsshould adequately take into consideration the situation of
the employee, as well as requiring the company to promptly
inform the Hitachi Workers Union of the decision. Morespecifically, in cases of large-scale transfers or
reassignments, the company will consult with the labor
union regarding the basic issues involved.

Respecting the Rights of Employees

Cooperating to Improve Health and Safety

The Hitachi Group Codes of Conduct, formulated to specify
the standards of behavior applicable throughout the HitachiGroup, call for the upholding of fundamental human rights of
employees, in line with the principles of the United Nations
Global Compact.

Hitachi is dedicated to improving health and safety levels
through employee-management cooperation. This includes
signing a collective agreement with the Hitachi Workers Union
on the promotion of, among other things, health and safetymechanisms, a health and safety commission, education andtraining programs, and health checks for employees.

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Labor Practices

Labor Practices
Hitachi’s Aims
Employees are valued partners who play a vital role in sustaining our business. The cornerstone of a sound andmutually beneficial relationship between employees and the company, and the motive force for sustainable growth, is toprovide proper working conditions for employees and build a framework for the maximization of their potential. By
complying with all work-related laws and regulations and creating a work environment that maintains and develops fair
employment relations and makes full use of the abilities of its diverse human capital, Hitachi aims to be a company inwhich all employees can engage in safe and fulfilling work.
In addition, the nationalities of Hitachi workers are diversifying in response to the globalization of our operations,and the share of non-Japanese employees at Hitachi, Ltd. is rising. In order to adequately meet the needs of customers
that differ from region to region and country to country, we have augmented and strengthened our frontline staff and arealso aiming to build a structure to foster global human capital.

Main Plans and Results
Achievement
level

Policies

FY 2015 goals/plans

Results in FY 2015

· Implementationof career training
for employees,
young and old, atvarious stages intheir careers· Hold career training forover 700 new
employees· Hold Hitachi Career
Development Workshop(H-CDW) for over 700
new assistant managers· Provide Life Plan
Training to older
employees, including
over 700 participants ine-learning program, over
400 in seminars, andover 350 in Life Plan
Briefing· Held career training for 765 new employees· Held H-CDW for 548 new assistantmanagers· Provided older employees with Life Plan
Training; 1,924 registered for e-learning and988 completed program, 602 participated inseminars, and 441 participated in Life Plan
Briefing for employees at age 58· Hold career training for 660 new employees· Hold H-CDW for 800 new assistantmanagers· Provide Life Plan Training, including
participation in (1) e-learning program, (2)seminars for 50-year-old employees onannual contracts, and (3) Life Plan Briefingfor 500 employees at age 58· Promotion of
employment ofpeople withdisabilities within
the Group· Achieve Japan’s legallyrequired employment
rate at Hitachi, Ltd.
· Ensure strict compliancewith legal employment
rate at all Hitachi Group
companies in Japan· Achieved 2.11%
employment rate at
Hitachi, Ltd. and 2.18%
at Group
companies in Japan; 15 still below the legal
rate (as of March 2016)· Achieve legal employment rate at Hitachi,
Ltd.
· Ensure strict compliance with legal
employment rate at all Group companies inJapan· Raising of healthand safety
managementlevels across theGroup throughpromotion of
global health andsafetymanagement· Implement and review
minimum Group-widestandards for health andsafety· Compile global healthand safety statistics byregion· Strengthen health andsafety measures inJapan· Began implementing and reviewing minimum
health and safety standards· Compiled global statistics in 2015 andprovided feedback every six months;
collection rate increased by approximately
11% from previous fiscal year
· Implemented measures to improve safetylevels in Japan, leading to slight decrease in
accidents· Continue to implement and review minimumGroup-wide health and safety standards· Implement preventive measures by utilizing
best practices and accident cases· Introduce measures in response to new laws
and regulations in Japan: Achieved: Partially achieved: Not achieved

FY 2016 goals/plans

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Hitachi Sustainability Report 2016

Management Approach

Activities
Labor Practices

Performance Data

Achieving a Fair and Equitable Work Environment, Promoting Diversity and Inclusion

Achieving a Fair and Equitable Work Environment
Hitachi’s Approach
Ensuring that hiring and promotions, as well as worker
assessment and compensation, are fair is not only a duty
that companies must fulfill toward their employees but also
an important means of building a healthy relationship withoutstanding human capital. Hitachi has a human resource
strategy that emphasizes the concept of “decent work”(that is, work that is humane and fulfilling). This concept
has taken on increased importance globally as a standard
for labor practices, with the International Labour
Organization, for example, positioning the concept as animportant objective of its activities. Companies are
expected to ensure decent work through policies
appropriate to their businesses.

Decent Work
Hitachi’s Thinking on Decent Work
Human resources are key to Hitachi’s ability to adapt to
rapid social and environmental change and continue
providing new value to customers. Diversity and inclusion
are crucial to our strategy, and throughout the Hitachi Group

we promote HR management practices that maximize thestrength we can draw from a diverse, highly engaged
workforce transcending national and corporate boundaries.
Our globally shared leadership development program fosters
leaders who champion our Social Innovation Businessaround the world, while a range of other training programs
help employees obtain the knowledge and skills they needto provide innovative solutions to our customers.
Hitachi also views it as crucial to create a work
environment in which each employee can engage
meaningfully in productive work. As part of efforts in thisarea, we have unified performance review standards
worldwide in a highly transparent and fair system forevaluating each employee’s achievements. We have also
enacted safety policies that apply across the entire HitachiGroup, and continue striving globally to create workplaces
that offer safety and peace of mind to those who work there.
Other initiatives aim to make it easier to achieve work-lifebalance, reduce work hours, and promote healthy lifestyles
among employees. Additionally, we conduct an annual
survey of employee engagement levels across the Group,
using the results as the basis for further improvement inmanagement practices.

Promoting Diversity and Inclusion
Hitachi’s Approach
Hitachi believes that building a corporate culture that fully
draws on the diversity of human capital, in terms of gender,
age, and values, not only offers employees an opportunity toapproach their work with enthusiasm but also contributes toenhancing competitiveness through the provision ofsolutions that incorporate diverse perspectives. In recent
years, with the growing interest among stakeholders for
personnel policies enabling flexible workstyles, we are taking
a proactive stance toward implementing this approach. We
are also establishing key performance indicators to help
expand career options for female employees.
With the strong commitment of top management, we
aim to promote diversity as part of our management strategy
and become a company that makes full use of our diverse
human capital.

Diversity and Inclusion
Statement on Diversity and Inclusion
Diversity is the wellspring of our innovation and our growthengine. Hitachi regards personal differences—gender,
nationality, work history, age, sexual orientation, andphilosophy—as facets of people’s individuality. By
respecting our employees’ individualities and positioning
them as an advantage, Hitachi frames its diversity andinclusion as conducive to both the individual’s and thecompany’s sustainable growth. With strong teamwork andbroad experience in the global market, we will meet ourcustomers’ needs.

Diversity Management Initiative: “Diversity for the
Next 100”
Since the 1990s, we have been at the social forefront,
supporting women and other members of our multifaceted
workforce. This includes setting up systems to help balance
work with child and nursing care. Entering Phase 3 of ourdiversity management roadmap, we are embracing diversity asContents

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Hitachi Sustainability Report 2016

Management Approach

Activities
Labor Practices

Performance Data

Promoting Diversity and Inclusiona management strategy under the initiative slogan “Diversity
for the Next 100.” This means creating an environment where

women and other members of our varied workforce can use
their skills in leadership and business management.

Roadmap for Developing Diversity Management
Phase 3:

Diversity promoted as a management
strategy

Phase 2:

From “women” to “diversity”

Phase 1:

Support for women’s careeradvancement

2012

2009

“Diversity for the Next 100” launched

Diversity & Inclusion Development
Center set up

2000

2006

FF Plan*Diversity Promotion Project
FF Plan II

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

Enhance Hitachi Group partnerships

Promote time- andlocation-free work

Reduce overtime/Review work styles
Promote diversity awareness/Reform work environment
Support work-life balance; support women’s career advancement

Strengthen women’s career development

Introduce, expand support systems for work-life management

1990

2000

2006

2009

2012

2015

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

Expanding the Scope of Diversity Management
Gender, etc.
Men and women, family composition,
marital status

Age

Nationality, etc.

Senior, middle-aged, young

Nationality, race, ethnicity, language

Widening Scope ofDiversity
LGBT

Disabilities

Lesbian, gay, bisexual,
transgender status

Physical, intellectual, mental disability

Step 1

Integration
Step 2

Legal Compliance
Step 3

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

Deepening Diversity Management

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

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

Companies, organizations educate staff about
discrimination so differences are actively
embraced, respected

Evolution from respect for differences toorganizational reform as part of strategy to forge
varied strengths into competitive advantage

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Hitachi Sustainability Report 2016

Management Approach

Activities
Labor Practices

Performance Data

Promoting Diversity and Inclusion

Development Structure of Diversity Management
The Diversity Development Project, launched in fiscal 2006
under the president’s direct control, was replaced in fiscal
2009 with the Diversity & Inclusion Development Center,
which currently operates under the direct supervision of the
Human Capital Group.
Hitachi and 20 Group companies jointly operate theAdvisory Committee and the Diversity Development Council
to accelerate awareness across Hitachi as a whole, including
support for diverse human resources and work-life
management. The Advisory Committee ensures followthrough on our diversity management policy, while theDiversity Development Council discusses specific activities
and shares best practices. Both meet every six months.
Group companies and business groups/sites have also
set up their own diversity-promotion organizations andprojects, such as those to help develop women’s careers, inorder to enhance initiatives geared to the challenges faced
by individual workplaces. We also hold regular meetings to
exchange opinions on diversity with labor unions.
In Europe, too, we are accelerating the pace of ourdiversity and inclusion initiatives on the basis of establishing
the D&I Steering Committee in January 2016. The
committee, which convenes every quarter, is made up of
executives from the seven main Hitachi Group companies in
Europe, including Hitachi Europe Ltd., Hitachi Rail Europe
Ltd., and Hitachi Data Systems Corporation. The three mainareas addressed are “the creation of a diversity and inclusion
framework,” “career development,” and “communication.”
Members are assigned to each area and lively discussions
are held in order to formulate and implement plans topromote diversity and inclusion.

Hitachi Group Diversity Structure
Hitachi, Ltd. President

Advisors: External directors

Advisory Committee:
Chief Human Resource Officer (CHRO)
Executive officers and general managers in charge of personnel affairs and laboradministration in Group companies
General managers in charge of personnel affairs and labor administration in business units
Hitachi Group Diversity Development Council
Managers in charge of personnel affairs and labor administration in Group companies,business units, and business groups/sites

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

Developing Women’s Careers* Participating enterprises (20 companies as of March
2016): Hitachi Metals, Hitachi Chemical, Hitachi Capital,
Hitachi Construction Machinery, Hitachi Kokusai Electric,
Hitachi High-Technologies, Hitachi Transport System,
Hitachi Medical, Clarion, Hitachi Koki, Hitachi Urban
Investment, Hitachi Appliance, Hitachi Automotive
Systems, Hitachi Consumer Marketing, Hitachi Industrial
Equipment Systems, Hitachi Systems, Hitachi Solutions,
Hitachi Insurance Services, Hitachi Maxell, Hitachi Life

Around 50 projects

Goals for Hitachi, Ltd. (KPIs)
Appoint female executives by fiscal 2015 by promoting from within(including the CSR and Environmental Strategy Division chief as acorporate officer in April 2015).
Increase the number of female managers in Japan to 1,000 by
fiscal 2020 (2.5 times more than at the end of fiscal 2012).

KPI of Developing Women’s Careers
Hitachi, Ltd. has created two key performance indicators(KPIs), announced externally in fiscal 2013, to enable as
many female employees as possible to take up leadership
positions and to participate in management decision
making. These KPIs signal our commitment both internallyand to the world to further advance women in the workplace
and to improve our diversity management.
In addition to reinforcing existing programs, we will use
the Hitachi Group Women’s Career Success Survey tohighlight progress with initiatives and outstanding issues ineach business unit and to set numerical targets for each
unit, strengthening our management commitment. We will
also boost women’s individual ambitions and morale throughprograms such as the Hitachi Group Women Leaders’Meeting, which targets female employees at the generalmanager level and above. We intend to create anenvironment where as many women as possible are able tooptimize their potential in management positions.

Diversity & Inclusion Development Center(dedicated organization)
Human Capital GroupKey Indicators
Number and Ratio of Female Managers(people)(people)

800

3,415

600

377

400
200
0

3,670

401

418

5.6%

3.8%
3.4% 3.5%

434

6.0%

3.7%

474

3,727

4,000

6.4%

3,000
2,000

4.0%

1,000

73
2000

2011

2012

2013

2014

2015

(FY)

0

Female managers, Hitachi, Ltd. (left scale)
Female managers, Hitachi Group (right scale)
Percentage of total, Hitachi, Ltd.
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Hitachi Sustainability Report 2016

Management Approach

Activities
Labor Practices

Performance Data

Promoting Diversity and Inclusion

Work-Life Management
Hitachi’s Work-Life Management Approach
Our diversity and inclusion management initiatives aredesigned to enable all employees to reach their full potential,
as well as to enhance our organizational capabilities and tocreate synergies that will boost productivity and grow ourbusiness. This requires building a work environment thatembraces human resource diversity and promotes work
style flexibility.
Boost productivity and grow business

Hitachi looks beyond work-life balance, promoting worklife management that enables our employees to take chargeof improving the quality of both their work and their private
lives. We believe that optimizing time spent in and outside
the workplace through work-life management enhances our
employees’ professionalism and builds character, resulting inboth individual and organizational growth over the long term.

Enhancing Work-Life Management Support Systems
Since the 1990s, we have been introducing and improving anarray of programs for employees to balance work with family,
aiming to create a more employee-friendly work environment.

Fulfill potential to contribute to businessCompany

Enable diverse ways of working(employee-friendly workplaces)

Employees

Work-Life Management Support System (Example of Hitachi, Ltd.)Child Care Support System

Nursing Care Support System

For women

Pregnancy

For menFertility treatment leave (1 year total)

Nursing care leave

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

Return to work

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

Leave for prenatal medical appointments,
pregnancy problem leave, etc.
ChildbirthMaternity leave (8 weeks before and 8 weeks
after childbirth)Paternity leave (5 days total)

Child care leave

Child care leave (Up to 3 years, until the child completes the first grade of elementary
school; can be taken on nonconsecutive days)

Return to work

Shorter working hours (generally 6, 6.5, or 7 hours)
Work from home (career-stream positions)
Family nursing leave (5 days per year), child nursing leave (5 days per child per year)
Half-day leave (unlimited), leave for overseas spouse transfers (3 years or less)Cafeteria Plan*1 (Child care and nursing care menu)*1 Flextime and discretionary labor systems are also available. The cafeteria plan is a system in which employees can select the support that they need, when they need it, according to their“cafeteria points.”

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Hitachi Sustainability Report 2016

Management Approach

Activities
Labor Practices

In-House Child Care Centers
The Hitachi Group, in collaboration with its labor union, has
set up in-house child care facilities as a way to help
employees balance work with child raising.
Genki Club

Promoting Diversity and Inclusion

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

Established

April 2003

Location

292 Yoshida-cho, Totsuka-ku, Yokohama-shi, Kanagawa, Japan(Yokohama Office, Hitachi, Ltd.)

Capacity

Approximately 70 children

Ages eligible

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

Operatinghours

Performance Data

2.02

2.03

1,600
1,200
800

1.85
981

1,072

1,150

1,243

1,332

2.11

(%)
2.1

1,370.5

2.0
1.9
1.8
1.7

400
0

7:30–20:00

2.02

2.08

2000

2012

2013

2014

2015

2016 (FY)0

Employment of people with disabilities (left scale)
Employment ratio (right scale)*1 Up to fiscal 2012, the legally required employment rate was 1.8%; from fiscal 2013 it
has been 2.0%.
Notes:• Data compiled in June of each fiscal year.
• The employment ratio is calculated according to methods prescribed in the relevant laws.

“Genki Club” Logo

Diverse Support Systems for Employees
Support Systems that Meet Diverse Employee Needs
Excursion (sweet potato digging).

Christmas party.

Sakura Hiroba (Hitachi Chemical Group)
Established

April 2008

Location

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

Capacity

20 children (can enroll a maximum of 30)

Ages eligible

Infants aged several months to children up to 6 years old who have
not yet entered elementary school (children of Hitachi ChemicalGroup employees who commute to the city of Hitachi)

Operatinghours

7:30–20:00

Employing People with Disabilities
Expanding Hiring of People with Disabilities
Hitachi, Ltd. and Group companies in Japan have worked
hard to employ people with disabilities, such as by holding a
special hiring fair and study meetings for Group companies
to share information. As a result, as of June 2015 theemployment ratio of people with disabilities was 2.08% at
Hitachi, Ltd. and 2.14% for the entire Group in Japan. As ofJune 2016, the employment ratio of people with disabilities
was 2.11% at Hitachi, Ltd. and 2.18% for the entire Groupin Japan. All of these figures topped Japan’s legally required
employment rate of 2.0%. We will maintain our Group-wide
drive to hire more people with disabilities.

To respond to the diverse lifestyles and needs of ouremployees, Hitachi, Ltd. has provided a wide range of
support by introducing welfare systems that include housing
support, such as dormitories, company housing, and a
housing allowance system, as well as an asset-building
savings program, an employee stock ownership program,group insurance, consolation payments, and a “cafeteriaplan” program. The cafeteria plan allows employees toselect the benefits they receive. This allows them to tailor aplan to their individual lifestyles and living needs by choosing
from a list of options, such as skills development, child care,nursing care, health promotion, and donations. Employees
use “cafeteria points” to select the type of support they needwhen they need it.
For our retirement and pension plans, defined
contribution and defined benefit plans have been
introduced across the Hitachi Group in response to thediversification of lifestyles among the elderly and thechanges in forms of employment. The defined contribution
pension plan encourages employees to participate in theirpostretirement planning by providing asset management
and investment education, as well as other support. We
increased the choice of benefit options and timeframes forboth the defined contribution pension plan and the defined
benefit pension plan in order to better meet the varied
needs of employees.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Labor Practices

Performance Data

Promoting Occupational Health and Safety

Promoting Occupational Health and Safety
Hitachi’s Approach
As a corporate group that engages in multinational businessactivities, building safe, healthy, and hygienic workplaceenvironments at business sites around the world is a Groupwide management task for Hitachi. This means that we mustbe sure to take into careful consideration the social conditions
and workplace environment of each country and region.
Hitachi has thoroughly implemented measures foroccupational health and safety since its founding. Currently, we
are advancing a global occupational health and safety system
based on the concept of decent work while also drawing on
the lessons and knowledge gained at workplaces in Japan.

Occupational Health and Safety
Fundamental Idea for Occupational Health and Safety
Ensuring the health and safety of all employees is the basic
principle underlining the Hitachi Group Health and Safety
Policy. This policy is shared by all Hitachi Group companies
around the world. Employees work together to create safe,
secure work environments that aim to be accident free.
Hitachi Group Health and Safety Policy
Principle“Health and Safety Comes First.”
Policies
In accordance with our mission, “Contribute to society through thedevelopment of superior, original technology and products,” theHitachi Group will endeavor to ensure safe and healthy workplaces
under the principle of “Health and Safety Always Comes First.”
To accomplish this, we will:
1. Continually be involved in health and safety activities in order toprevent work-related injuries and sickness by designating thehealth and safety of employees as management’s top priority.
2. Comply with the local laws and regulations in each company
regarding health and safety.
3. Develop a safe and comfortable work environment by encouraging
employees to maintain their own health and taking a proactive
stance on health and safety activities in the workplace.
4. Require an understanding of Hitachi’s principle and the promotionof health and safety awareness from all business partners of the
Hitachi Group.
5. Contribute to the creation of a safe and pleasant society byemphasizing activities that make health and safety a top priority inall of Hitachi’s business activities.
Revised November 2013

Framework for Promoting Health and Safety
Hitachi views occupational health and safety as vital
preconditions for advancing our Social Innovation Business.

We promote a range of Group-wide occupational health andsafety activities that include preventing workplace accidents
by setting and applying minimum safety standards to beobserved by Group manufacturers around the globe and by
taking into consideration the specific conditions at eachcompany. We respond quickly when an accident occurs,
using incidents to make improvements and boost our levelsof health and safety management.
In accordance with Japanese law, a health and safetycommission—composed of company representatives, laborunion officials, and employees—is organized at eachbusiness site and is convened every month to discuss andshare information related to such issues as workplace
accident causes and countermeasures, the situation
regarding employees who have taken sick leave, and otherpoints of concern.
In fiscal 2011 we introduced the Hitachi Group Key
Safety Management Designation System. This initiative
tracks key safety management improvements at HitachiGroup companies and business sites in Japan that haveexperienced serious work accidents. Under the leadership of
top executives, these companies and business sites take on
management-driven and bottom-up initiatives to formulate
and promote specific improvement plans. We are also
reshaping the Group’s safety management framework andintroducing targeted safety measures, including extensive
investigations of the cause of serious accidents, reviews ofrisks to reduce potential accidents, and engagement of third
parties with a high level of health and safety expertise todiagnose safety issues.
In fiscal 2015, we became able to grasp our safety
management level overseas through the application of safety
statistics and minimum standards. Moving forward, we aim
to continually make improvements to further raise the level ofsafety.
Key Indicators
Occupational Accident Rates
2.0

1.62

1.59

1.58

1.05

1.00

0.94

0.44

0.39

0.41

1.5
1.0
0.5
0

0.15
2011

0.19
2012

0.14

2013

1.66

1.61

1.06

1.06

0.41
0.27
2014

0.54
0.22
2015

(FY)

All industries
Manufacturing industries
Electrical machinery sector
Hitachi Group
Notes: Occupational accidents are defined as those involving fatality or work-time loss ofmore than one day. Hitachi Group figures for Japan, including Hitachi, Ltd., are for
90 Group companies in 2011; for 175 Group companies in 2012; for 195 Group
companies in 2013; for 251 Group companies in 2014; and for 240 Group
companies in 2015.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Labor Practices

Hitachi Group’s Global Safety Figures (Occurrence rate*1)
2014

2015

Performance Data

Promoting Occupational Health and Safety

research results, shared information on methods for
improving occupational health programs at business sites,and discussed training approaches for relevant healthcare
workers.

Americas

2.25

4.35

Europe

3.34

2.02

China

2.38

2.10

Rest of Asia

1.65

0.80

The Hitachi Group Health and Safety Award Program

Other

20.53

22.05

Japan

0.53

0.42

Global total

1.23

1.21

We have implemented the Hitachi Group Health and Safety
Award Program to recognize Group companies in Japan that
extend their accident-free records or that receive prizes forhealth and safety from external organizations.

*1 Occurrence rate is the rate of workplace accidents per 1,000 employees resulting in
fatality or work-time loss of more than one day.

Initiatives to Improve Employee HealthResponse to Laws Related to Occupational Healthand Safety
In terms of legal compliance, the Hitachi Group goes beyond
meeting all legal requirements to also make efforts specified
in the law even when they are not mandatory. As one part ofthese efforts, we made a new Stress Check Systemmandatory in Japan in December 2015. We are encouraging
employees to be aware of their own stress levels and striving
to improve workplaces to help prevent mental healthdisorders, while also strategically using the results of group
analysis as a means of enlivening the workplaces.
In addition, we are carrying out risk assessments ofchemical substances, which became mandatory in Japan inJune 2016, to reconfirm the dangers and harmful effects ofchemical substances in the workplace and to implement
measures well integrated with management conditions tokeep employees who handle such substances fromdamaging their health.

Sharing Health and Safety Information in the HitachiGroup
We built the Hitachi Group Health and Safety Portal System
in 2012 to ensure that every Hitachi Group company inJapan can track the health and safety performance of theentire Hitachi Group.
Group-wide information on work accidents is registeredin the system so that companies can track causes and see
what preventive measures have been initiated. To help
prevent recurrences, statistics are kept on types ofaccidents. Since 2014, we have carried out initiatives toshare information on workplace accidents globally, including
one that tracks and provides feedback on accidents
occurring at Group companies outside of Japan.
Once a year we hold the Hitachi Group Health and
Safety Research Presentation Meeting for Hitachi health andsafety officers. The 59th gathering, held in November 2015,
attracted around 150 participants, who shared newfoundknowledge from case studies and heard special lecturesfrom outside experts on ways to improve health and safety
activities at companies. Around 70 occupational healthcare
workers, including physicians and public health workers,
participated in the 15th Hitachi Group Industrial HealthConference in February 2016. Participants presented

Health is the foundation for being able to work with energy
and peace of mind. The fundamental principle of the HitachiGroup Health and Safety Policy is that “Health and Safety
Always Comes First.” Based on this principle, we areengaged in efforts to maintain and improve the health of
employees.
Occupational healthcare workers, human resource
departments, and the Hitachi Health Insurance Society work
together to provide a range of health support andappropriate health management in accordance with Japan’s
Industrial Safety and Health Act.
In Ibaraki, Tokyo, and Kanagawa Prefectures, where
many Hitachi Group business sites are concentrated, asystem of health-management centers has been put inplace, staffed with occupational doctors, nurses, and othermedical personnel. The centers support the healthmaintenance of employees by providing them with healthguidance based on periodic health checks and otherexaminations to prevent serious disease, while also offering
medical interviews and advice to employees working longhours to head off mental and physical disorders. Support isalso provided to raise health awareness throughconsultations that can help relieve employees’ healthconcerns and promote regular exercise.
In addition, Hitachi Group companies carry out activities
including sporting competitions and other events for
employees and their families as a way of encouraging
workplace cohesion and promoting health.

Participants wait to take part in a strength-measurement test at ahealth event.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Labor Practices

Performance Data

A Strategy for Growing Together with Our Global Human Capital

A Strategy for Growing Together with Our Global Human Capital
Hitachi’s Approach
The globalization of the economy has led many companies
to accelerate the shift toward multinational operations.
Fostering global human capital has thus become
indispensable to providing common global services while atthe same time meeting the needs of each country andregion. Impacting heavily on the employment and humanresource strategies of companies over the medium- to longterm, though, are the falling birthrates and aging populationsof industrial countries and the population explosion indeveloping nations.
The Hitachi Group, with a combined workforce ofaround 340,000 people engaged together in businessactivities in countries and regions around the world, ispromoting a global human capital management strategy.
We are fostering human capital through a diverse array of
initiatives, such as hiring and promoting to management
positions non-Japanese personnel, drafting measures toshare values and promote mutual understanding, andformulating programs to develop human capital capable ofmeeting the needs of global operations.

Global Recruiting and Globalizing Human Capital
As a means of opening up global markets, we have been
accelerating the globalization of human capital in Japanthrough three initiatives: (1) recruiting personnel in Japan
who can promote global operations, (2) providing moreyoung Japanese employees with experience outside Japan,and (3) comprehensively implementing globally unified
management training.
With an eye on the globalization of our business, we arecommitted to hiring activities that secure the right personnel.
In principle, we categorize all employees graduating fromuniversities and technical colleges as global businesspersonnel who can contribute to driving our global
operations. Our priority for employing global businesspersonnel is to attract people who are eager to build theirforeign language skills and relish the challenge of working indifferent cultures, social settings, and work environments.
Key Indicators
Non-Japanese Employees*1 (Hitachi, Ltd.)(people)
600

446

500

340

400

Global Human Capital Development
Advancing Global Human Capital
Our Group-wide global human capital management strategy
optimizes both human resources and organizational
performance in pursuit of Hitachi’s goal of becoming a major
global player.
One example of our initiatives is the Global Human Capital
Database covering all Hitachi Group employees, excluding
factory workers outside Japan. This database enables us to
fully ascertain the status of worldwide Group human capitaland to assess macro management data, such as the allocationof human resources. We have also built a global grading
system that applies to all managers in the Hitachi Group
worldwide, using it as a common platform for job evaluations
throughout the entire Group and as a common standard forassessing the value of management duties.
In addition, we introduced a performance management
system at Hitachi, Ltd. and at some Group companies
worldwide to link the operational business goals andindividual skills, with the aim of mutual sustained
improvement and growth of both businesses and individuals.
This system will be expanded to include more companies.
With an eye to supporting the advancement of employees as
our global operations expand, we are introducing common
global hiring systems to secure talented personnel, boost
efficiency, and reduce hiring costs.

300

509

239

257

2011

2012

200
100
0

2013

2014

2015

*1 Figures include contract-based technical intern trainees with fixed terms.

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Providing Young Employees with Overseas Experience
Hitachi maintains broad programs to systematically cultivateand secure people who can succeed in global business. To
develop the careers of people who can understand andadapt to local cultures and lifestyles, we have offered a
program for younger employees to live outside Japan. We
have sent around 4,800 young Group employees over thefive years beginning with fiscal 2011, allowing them to takepart in more than 80 programs, including understanding
other cultures, language studies, local field studies, andinternships, as well as opportunities to work with local
people to resolve social issues. In fiscal 2015, we shifted our
focus to this practical, work-related model of overseas
postings, instead of the former emphasis on language
training and cross-cultural activities, to accelerate ourfostering of employees ready to take on global tasks.

Performance Data

A Strategy for Growing Together with Our Global Human Capitalof career development support that focuses on employees’“internal careers,” namely, their individual values and viewson the significance and meaning of their work. In addition
to ensuring that these individuals can fulfill their potential
and maximize their creativity, our aim is also to link that
individual growth to the positive outcomes and growth ofthe organization, thereby enhancing our corporate value.
Along with promoting self-understanding and fosteringstrong individuals with the independence and autonomy
needed to think and act for themselves, we also areproviding support to create a framework for theorganization to benefit from the engagement andmotivation of individual employees and to enhance mutual
understanding as a way of fostering the teamwork needed
to enhance organizational strength and performance.

Future Initiatives for Career Development
Globalizing Management Training
Along with the rollout of global human capitalmanagement, we are also globalizing our human capitaldevelopment programs.
Since fiscal 2012, we have been holding the Global
Advanced Program for Leadership Development (GAP-L)
every year in Singapore. The program mainly targets local
human resources with potential to be active at ouroverseas subsidiaries, aiming to foster individuals who
can play leading management-level roles at local
subsidiaries. In fiscal 2015, 24 leaders from around theworld took part in the program. In addition, since fiscal
2013 we have been implementing the Global Advanced
Program for Key Positions (GAP-K), which targets
management candidates. In fiscal 2015, 22 people
selected from Japan and India participated in training
under the program for three months.
These programs focus on global business expansion
by creating customer value and the requisite leadershipskills, moving us closer to our goal of becoming a major
global player. In the GAP-K program in particular, time isset aside for participants to look at themselves objectively
and gain a deeper understanding of the Hitachi Group
Identity, in addition to learning and discussing strategies
for global business expansion with a special emphasis on
emerging markets.
Starting in fiscal 2014, we also initiated standard training
courses for general managers and new managers, witharound 4,300 people taking part across our global Group
operations. As global human capital management evolves torealize Hitachi’s management strategies, we will globalize
our management development programs and continue tocultivate leaders to guide us toward further growth.

Career Development Support
There are differences among individual employees withregard to what they find fulfilling in their lives and careers.
Bearing this in mind, Hitachi has developed a broad range

In pursuit of becoming a major global player, we areprioritizing individual and organizational performance. We
create value built on employees’ individuality and personal
aspirations by implementing Hitachi’s Global Performance
Management (GPM) grounded in diversity and the individual.
We are also committed to supporting career development byfostering communication and mutual understanding between
employees and their organizations based on programs
encouraging individual employees to take greater control ofdeveloping their own careers. In these ways, we provide theresources and tools that enable a wide range of people towork together with enthusiasm.

Conducting a Global Employee Survey
Since fiscal 2013, we have been conducting the annual
global employee survey, Hitachi Insights, as a way ofmeasuring employee engagement.*1 In September 2015, thesurvey was administered for the third time. Around 210,000
employees worldwide were sent the survey in one of 13
different languages, and roughly 170,000 responses werereceived. For the second consecutive year, the results in all
13 categories improved compared to the previous fiscal
year’s results. The year-on-year improvements were theoutcome of the in-house departments and organizations
examining the results and implementing improvements, inline with the PDCA (plan, do, check, act) approach. We
intend to continue making improvements.
Overall, among the 13 categories, Hitachi scored well asin previous surveys in “pride in your company” and “yoursupervisor’s management,” but less well for the category“resources and support.” This suggests that employees areproud to be part of a company that is aiming to grow alongwith society through its Social Innovation Business, but thatmany employees felt that Hitachi can do better on the levelof staffing as well as information and resource tools. In
addition, in fiscal 2015 we expanded the range of an
initiative begun in the previous fiscal year to directly send thesurvey results to section and department heads so that they

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can confirm the survey results and communicate with theirteam members, with the aim of promoting concrete
initiatives. In fiscal 2016, in line with our Mid-termManagement Plan, the content of the survey will be revised,along with providing support to in-house workplaces tocontinually implement the PDCA cycle, as a way to further
enhance the level of engagement within Hitachi as a whole.
*1 Hitachi uses the term “engagement” to refer to employees’ understanding of thecompany’s strategies and policies, as well as their job satisfaction and desire to takeactions on their own initiative to bring about results.

Career Development in the Workplace
For Hitachi, the center of career development is the daily
work that employees perform in the workplace. Based on
our Global Performance Management (GPM), we implementa cycle aimed at the growth of each employee through aprocess in which goals for daily tasks are set and thenpursued, followed by the evaluation of the results toformulate the next objectives. Every fiscal year we also
conduct “performance planning,” in which individual
employees work with supervisor guidance and support,
consulting with the supervisors to reach a consensus
regarding short-term objectives. These consultations include
discussions about past work and evaluations of the content
of the work performed to date and the degree to whichgoals were met, followed by the setting of goals for the next
fiscal year. Repeating the GPM cycle improves individual
performance and further increases motivation and creativity.
This in turn spurs individual growth and improvesorganizational results. Along with GPM, employees also takepart in career consultations with their superiors to discuss
their medium- and long-term career plans regarding suchmatters as requests for transfers or overseas postings.
In addition, Hitachi administers the Career CounselingCenter as part of our career development support, in orderto provide employees with professional counseling services
to help them proactively address concerns related to such
issues as their jobs, career plans, or personal relations.

Promoting Career Development Workshops
Along with our workplace career development, we also
provide direct support for individual career development
through our career development programs. Our key programis the Hitachi Career Development Workshop (H-CDW),
launched in fiscal 2002 as an initiative across Group
companies in Japan. Around 8,600 people have participatedin the program so far (as of March 31, 2016), with a focus
on technicians, managers, and researchers in their 30s.
Participants use self-analysis to deepen their selfunderstanding with an emphasis on their “internal careers,”
affirming their career direction, goals, and paths so that they
can direct the development of their own career and skills.
H-CDW has gained recognition as a high-quality program forin-house career development that has built up research andimprovements during a period of over 40 years.

Performance Data

A Strategy for Growing Together with Our Global Human CapitalIn addition to those programs, Hitachi also offers
programs targeting specific age groups, such as our career
education for younger employees and our training for
middle-aged or older employees to help them prepare forthe changes ahead in their professional life.

“Adventure Kids in the Company” Implemented
Hitachi’s Financial Systems Department is implementing a
10-day training program for all of its new employees called“Adventure Kids in the Company” that involves explaining
the financial systems profession to sixth-year elementary
school students. Under the training, the new employees
formulate a plan for the program while receiving support
from fourth-year employees acting as “team leaders.” They
then create presentation materials based on interviews with
mid-level managers recommended by each section headregarding “work they consider meaningful.” The department
head also takes part in meetings where the first-year
employees refine the content of their presentations before
giving them to the students to convey the joy of work.
For the new employees, preparing a presentation geared
to the understanding of elementary school students, within alimited timeframe, helps them to assimilate the key conceptsof quality and deadlines—essential to the financial systems
sector that supports social infrastructure. The process isalso a way for the newcomers to learn about client relations
while building rapport with colleagues who entered thecompany before them.
The team leaders, for their part, gain insight into thechallenge of management through the team coordination
experience. The program allows participating managers tolook back on past experiences and gain new perceptions
from them. Finally, for the section heads who choose
participants from among the young employees andmanagers, the program is part of their ongoing responsibility
to choose the most appropriate employees for a given task.
In these ways, the program brings together various levels of
the organization in an ongoing project.
The program was launched in 2009. To date, 338 new
employees have participated, as well as 47 fourth-year
employees and another 47 managers.

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Fair Operating Practices

Performance Data

Promoting Work Practices in Line with International Ethics Codes

Fair Operating Practices
Hitachi’s Aims
There is a growing idea that companies should build their businesses with a view to promoting CSR throughout the
supply chain, not just around the company’s operations. This view informs such global initiatives as the Guidelines forMultinational Enterprises of the Organisation for Economic Co-operation and Development (OECD) and the United
Nations’ Global Compact and Guiding Principles on Business and Human Rights.
In seeking to be a company that continually fulfills its social responsibility throughout the value chain, Hitachi
strictly adheres to laws and regulations and acts in a moral and fair manner with all its business partners. We
thoroughly promote the compliance of our employees in all business activities, including procurement, manufacture,sales, export, and taxation. By enhancing activities to raise our suppliers’ awareness, we are advancing the creation ofa framework and fostering a corporate culture to carry out ethical actions and fulfill our social responsibility together
with our business partners.

Main Plans and Results
Achievement
level

Policies

FY 2015 goals/plans

Results in FY 2015

· Contribution tocontinuation of
Hitachi’s
operations byworking with
suppliers tosecure supplies· Establish procurement
BCPs at production
sites outside Japan· Identify bottlenecks anddevelopcountermeasures;conduct BCP surveys ofsuppliers· Established BCPs at 118 targeted
production sites outside Japan· Regularly update information on parts andsuppliers· Reinforcement of
supply chain
from global
perspective· Consider supply chain
management based on
survey results· Held seminar for suppliers in Shanghai as
part of capacity building; 15 people from 12
companies attended· Conducted human rights due diligence at
procurement division· Implement measures based on the results ofthe fiscal 2015 human rights due diligence: Achieved: Partially achieved

FY 2016 goals/plans: Not achieved

Promoting Work Practices in Line with International Ethics Codes
Hitachi’s Approach
Given the globalization of the economy and the increasingly
borderless nature of corporate activities, our businessincreasingly spans countries and regions with different
governmental and economic frameworks, trade practices,and sets of values. Common worldwide principles in theform of initiatives and guidance are becoming increasingly
important in order to thoroughly implement fair businesspractices around the globe and to avoid any risks that could
impede business activities.

Hitachi has formulated in-house regulations in line withwidely accepted international standards to govern importantbusiness practices, such as bribery prevention, ensuring offair competition, and tax compliance, and these regulations
are made known to and thoroughly implemented across the
Hitachi Group.

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Hitachi Sustainability Report 2016

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Activities
Fair Operating Practices

Preventing Bribery and Corrupt Practices

Performance Data

Promoting Work Practices in Line with International Ethics Codes

Tax Compliance

Measures to Prevent Bribery and Corrupt Practices

Implementing Thorough Tax ComplianceTo deal with global bribery and corruption risks, in fiscal
2013 we referred to the US Foreign Corrupt Practices Act
Resource Guide*1 and other documents to develop various
corruption risk scenarios. These were used as the basis fora survey conducted at Hitachi Group companies outside
Japan. By analyzing the survey results, we identified several
companies at risk from corruption. We are monitoring andworking with those companies with the goal of reducing
corruption worldwide.
In 2015, we also created a set of revised rules regarding
prevention of bribery and corrupt practices, which wereglobally adopted by Hitachi Group companies. That same
year, we released a global version of an e-learning program
regarding the fundamentals of preventing bribery and corrupt
practices to be utilized among Group companies worldwide.

The global expansion of Hitachi’s business activities has
made it necessary for the Group as a whole to build asystem of tax governance in order to comply withindications made by the tax authorities in each country andrespond to risks concerning taxation, such as tax-related
legal proceedings.
In January 2016, we established a set of tax-related
regulations with which the entire Group must comply. In
connection with the globalization of our business, we are
implementing risk management for taxation that focuses inparticular on the points listed below.
(1) Group companies strictly comply with all relevant laws
and implement tax management when pursuing theirbusiness activities, bearing in mind such international
tax-compliance standards as the Transfer Pricing
Guidelines for Multinational Enterprises and Tax
Administrations of the Organisation for Economic
Co-operation and Development (OECD), as well as thatbody’s Action Plan on Base Erosion and Profit Shifting(BEPS).
(2) Group companies effectively, continually, and proactively
manage tax-related issues as socially responsibleorganizations, while maintaining Hitachi brand value andseeking to maximize shareholder value.
(3) Group companies build sincere and positive relations oftrust with the tax authorities in the regions where thecompanies do business, and strive to maintain anddevelop those relations.

*1 The US Foreign Corrupt Practices Act consists of antibribery provisions regarding
foreign government officials and transparent accounting provisions within the Securities
Exchange Act. Enforced by the Department of Justice, it prohibits bribes to foreign
government officials. Transparent accounting, enforced by the Securities and Exchange
Commission, requires companies to show transactions fairly and accurately in theiraccounting records and to maintain effective internal control over accounting.

Measures to Prevent Unfair Competition
Preventing Violations of Fair Competition Laws
Hitachi engages in business based on the principles ofconformance with the law and business ethics and fair anddisciplined competition. However, Hitachi, Ltd. was found tohave impaired the fairness of a public bid in fiscal 2002 andwas penalized in September 2006, October 2008, andMarch 2009 for violating the Japanese Antimonopoly Act.
In November 2012, a subsidiary dealing in automotive
components was penalized by the Japan Fair Trade
Commission for violating the Antimonopoly Act. In
September 2013, the same company was prosecuted by
the US Department of Justice for violating American antitrust
laws, resulting in a plea bargain, and in January 2016 thecompany reached a settlement with the European
Commission for a violation of EU competition laws.
We are working to prevent further violations and to
broaden awareness of compliance issues, including
publicizing messages from top executives, developing
company regulations, conducting regular audits, andproviding education and training to employees based on acompliance manual. In fiscal 2015, we held group education
sessions on the Antimonopoly Act for 1,263 participants,
including all Hitachi sales managers. We also released ane-learning program on the fundamentals for compliance withcompetition laws and implemented it at Hitachi Group
companies globally.
Through these initiatives, we will continue working to
improve and enhance our compliance framework.

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Performance Data

Engaging in Responsible Procurement

Engaging in Responsible Procurement
Hitachi’s Approach
International initiatives like the UN Global Compact haveprompted companies worldwide to give greater thought to
CSR and green procurement under which they take socialand environmental concerns into consideration whenselecting suppliers, thereby strengthening CSR activities
throughout the supply chain.
As a company that procures products and services fromsuppliers in regions and countries around the world, Hitachi
was quick to introduce policies on CSR and green
procurement. Moreover, Hitachi has taken the lead in
responding to the issue of conflict minerals, which has been
the focus of public interest in recent years, by scrutinizing
the countries where raw materials are mined in order toprevent the infringements on human rights by countries
engaged in conflict. Along with sharing our procurement
policies throughout the Hitachi Group, we are conducting
CSR- and environment-related inspections and audits ofsuppliers and stepping up awareness-raising activities.

Supply Chain Management
Creating and Sharing Procurement Policies
We base our procurement activities on the Hitachi
Guidelines for Procurement Activities, while sharing global
supply chain issues within the Group. All Group companies
follow these guidelines. The guidelines were created in linewith the United Nations Global Compact and include theelimination of discrimination in employment and occupation
as well as all forms of child and forced labor.
To help suppliers, as the codrivers of our operations, tounderstand Hitachi’s supply chain management philosophy,
we have distributed the Hitachi Group Supply Chain CSR
Deployment Guidebook, revised in 2009, which is based on
the Supply Chain CSR Deployment Guidebook issued by
JEITA.*1 The guidebook is given out to around 23,000
suppliers of our in-house and Group companies.
*1 JEITA (Japan Electronics and Information Technology Industries Association): An
industrial association for electronics technologies, electronic machinery, andinformation technologies.

Guidelines for Procurement Activities
These guidelines define business transaction standards which shallbe applied to all HITACHI executives and employees in connection
with their activities purchasing necessary materials, products,
services, and information from outside sources.
1. Overall procurement activities of Hitachi shall adhere to the“HITACHI Company Conduct Standards.”
2. HITACHI shall maintain proper partnerships, mutual
understanding, and reliable relationships with suppliers with a viewto the long term results, giving due consideration to the following:(1) HITACHI shall treat all suppliers impartially and beprohibited from favoritism such as giving unfair priority to
any specific suppliers.
(2) HITACHI respects fair business dealings with suppliers and will
avoid any improper act which might cause a loss to a supplierapart from normal and customary business transactions.
(3) HITACHI shall keep suppliers’ trade secrets strictly confidential
and prevent them from being revealed or improperly used.
3. HITACHI develops suppliers to maintain competitiveness from aworldwide point of view, with particular attention to thefollowing points:(1) HITACHI responds to all suppliers’ offers sincerely, and isalways willing to offer the information necessary for suppliers
to compete on an even playing field.
(2) HITACHI shall periodically check and review suppliers’
performance and will consider offering more advantageous
business opportunities when comparison with otherresources allows.
4. Through a designated selection process, and in compliance withthe standards given below, suppliers shall be evaluated by productquality, reliability, delivery, price, suppliers’ business stability,
technical development ability, fair and transparent information
release, compliance with societies’ rules, regulatory compliance,
respect for human rights, elimination of discrimination in respect of
employment and occupation, elimination of all forms of forced andcompulsory labor, environmental preservation activities, social
contributions, good working environment, and recognition ofsocial responsibilities with business partners.
(1) HITACHI shall not request quotations from suppliers with whomthere is no intention to enter into a future business relationship.
(2) In accordance with specified internal procedures, the authority
and responsibility for specifications, terms and conditions, andproduct acceptance and inspection belong to each Requester,
Procurement Department, and Inspection Department.
(3) Procurement Departments shall represent HITACHI whencontracting with suppliers.
5. HITACHI members are prohibited from receiving any personal gifts
or offers from suppliers.
Revised in 2009

Guidelines for Procurement Activities
Procurement Policy
CSR/Green Procurement

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Fair Operating Practices

CSR Supply Chain Management Framework
Given the global reach of Hitachi’s business, there is a
growing likelihood of supply chain risks creating
management problems, and we are working hard to identify
and mitigate these risks beforehand as much as possible.
We established a CSR/Green Procurement Promotion
Center within the Hitachi headquarters in fiscal 2011. We
have also established the Hitachi Group CSR Green
Procurement Committee, which includes committee
members from in-house and key Group companies. This
completes a framework that will enable our CSR supply
chain management and green procurement philosophy andinitiatives to be shared throughout the Group.
In order to share the philosophy of Hitachi among our
suppliers, in fiscal 2015 we also introduced a new initiative
to provide suppliers directly with information in a face-toface format, in addition to the information shared on the
Hitachi website as well as our CSR monitoring, CSR audits,and other measures. The first of these face-to-face eventswas held in January 2016 at a CSR and green procurement
seminar held in Shanghai for Hitachi Group partners in
China. The event was attended by 15 people from 12
companies, primarily suppliers in eastern China. At theseminar, Hitachi explained topics including its fundamental
CSR philosophy, the CSR audit situation, regulatory trends
under Chinese environmental laws, and Hitachi’s related
policies. Feedback from participants included a comment
from one person who was “impressed by the emphasis thecompany places not only on monozukuri craftsmanship but
also on fulfilling its social responsibility in a range of areas.”
Another participant “gained a sense that profitability is not
the sole aim and that it is important to adhere toenvironmental laws.” As reflected in the comments, theseminar served to deepen the understanding of Hitachi
initiatives related to CSR and green procurement.
Number of Hitachi Group suppliers(as of December 2015):

26,000 companies (about 62 countries)
Green Procurement
To procure parts and materials manufactured with reduced
environmental impact, so that suppliers help to protect theenvironment, it is crucial that we share our commitment toenvironmentally conscious monozukuri craftsmanshipthroughout our entire supply chain. In fiscal 1998, we led
the industry in developing Green Procurement Guidelines todefine our basic position on procuring parts and productsthat do not have a negative impact on the global
environment, as well as our requirements of suppliers, sothat we can work together to promote green procurement.
The guidelines set out supplier requirements for

Performance Data

Engaging in Responsible Procurement

environmental conservation, including building anenvironmental management system and acquiringcertifications. There are also requirements for reducing theenvironmental impact of products supplied to Hitachi, suchas conserving resources and energy in production,
recycling, managing chemical substances, and fully
disclosing related information.
There is a global trend toward tighter regulations on
chemical substances. In fiscal 2013, we reviewed ourcategories for controlled chemical substances in our Green
Procurement Guidelines to comply with the stipulations on
restricted substances, authorized substances, andsubstances of very high concern (SVHCs) in Europe’s
Registration, Evaluation, Authorization, and Restriction ofChemicals (REACH) regulation for managing chemical
substances within the European Union. Specific changes
include: (1) moving some chemicals to the prohibited
substances list, (2) further breaking down the controlled
substances list, and (3) adopting the industry association
list. The previous guidelines were revised to version 8.2 anddistributed through in-house and Group companies tosuppliers to ensure that they are fully informed. We havebuilt A Gree’Net, an Internet-based green procurement
system, to collect information about chemical substances
contained in products and other environment-related datafrom suppliers as soon as it becomes available. The goal is
to manage chemicals carefully. Under this system, we
encourage suppliers to use the MSDSPlus*1/AIS*2 reporting
templates published by the Joint Article Management
Promotion Consortium.*3 We also encourage them to use
information transmission systems and to minimize theamount of labor.
*1 MSDSPlus: A format for reporting chemical substances contained in products createdby upstream companies (chemical manufacturers) for midstream companies (molded
product manufacturers, etc.).
*2 AIS: A format for reporting chemical substances contained in products created by
midstream companies (molded product manufacturers, etc.) for downstream companies(assembly manufacturers, etc.).
*3 Joint Article Management Promotion Consortium (JAMP): Established in September
2006 as a cross-industry promotion association of 17 companies endorsing the ideathat “it is essential for the enhancement of industrial competitiveness to ensure proper
management of information on chemical substances contained in articles (parts andfinal products), and to establish and popularize a concrete mechanism for smooth
disclosure and transmission of such information in supply chains.”

Hitachi Group Green Procurement Guidelines
Joint Article Management Promotion Consortium

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Management Approach

Activities
Fair Operating Practices

Performance Data

Engaging in Responsible Procurement

Response to the Conflict Minerals Issue

Strengthening Global Partnerships

The Request to Our Suppliers, based on the Conflict
Minerals Procurement Policy that we released in September
2013, has been published on our website as a clear
statement of our position.

A key element of the Hitachi Group Vision is to improve thecompetitiveness of our value chain based on partnerships
with our suppliers. Given our business aim to expand
internationally, we need to extend our procurement globally,
looking toward increasing local production for local
consumption. In fiscal 2011, we appointed procurement
officers to oversee local procurement in China, the rest of
Asia, Europe, and the Americas.
A global supplier database built in fiscal 2013 wasfollowed in fiscal 2014 by a new global procurement scheme
using the Group’s professional service functions (Hitachi
High-Technologies Corporation, Hitachi Capital Corporation,and Hitachi Transport System, Ltd.). We are expanding our
suppliers in emerging nations while also strengthening our
response to CSR-related risks expected to arise from theglobal expansion of our supply chain.

Hitachi Group Conflict Minerals Procurement Policy
The Hitachi Group is committed to responsible procurement practices
to mitigate the risk of sourcing conflict minerals (tantalum, tin,tungsten, and gold) that can directly or indirectly finance armed groups
abetting human rights violations in the Democratic Republic of theCongo (DRC) and adjoining countries. The Hitachi Group Procurement
Division strives to establish a sustainable supply chain that eliminates
procurement of materials and/or parts using conflict minerals. Our
efforts are to continue procurement of minerals from responsible
sources in the region and are not intended to implement a ban on
procurement of minerals from the DRC and adjoining countries.

Request to Our Suppliers
To do so, it is important to enhance supply chain transparency and tostrengthen responsible procurement of materials and parts.
Therefore, we expect our suppliers to agree to our Conflict Minerals
Procurement Policy and to cooperate with us in our efforts to ensure
procurement of conflict-free minerals. In accordance with the DoddFrank Act*1 and the OECD Guidelines for Multinational Enterprises,*2
companies are required to conduct a reasonable country of origin
inquiry and to exercise due diligence covering the entire supply chain
to determine whether final products include conflict minerals which
benefit armed groups.
The Hitachi Group will examine its supply chain through acollaborative industrywide approach by utilizing the tool developed
by EICC-GeSI.*3 We expect our suppliers to adhere to our Conflict
Minerals Procurement Policy and to cooperate with our supply
chain investigation.
As improved processes are introduced to eliminate conflictminerals from the supply chain, we will ask our suppliers to comply
with such programs once they are developed, proven, andestablished (i.e., expansion of the Conflict-Free Smelter*4 list, whichis under implementation by EICC-GeSI). The Hitachi Group willcontinue to engage in industry efforts to develop methods to build astable, conflict-mineral-free supply chain.
*1 Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection
Act, signed into federal law by President Barack Obama on July 21, 2010.
*2 OECD Guidelines for Multinational Enterprises: Government recommendations for
multinational corporations operating in or from the Organisation for Economic
Co-operation and Development (OECD) countries to adhere to their guidelines.
*3 EICC-GeSI: Nonprofit organization of members in the information andcommunications technology (ICT) industry.
*4 Conflict-Free Smelter: A smelter or refinery that does not handle conflict minerals.

Hitachi Group Conflict Minerals Procurement Policy and Request to Our
Suppliers

Rate of Local Procurement of Materials for Main Countries

Japan

China

73

%

80

Thailand

India

66

45

%

%

%

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Engaging in Responsible Procurement

Implementation of CSR Monitoring (Self-Checks)

Increasing Green Purchasing of Office Supplies

To monitor how well Hitachi’s CSR supply chain
management philosophy has been adopted by our suppliers,
since fiscal 2007 we have asked key suppliers to conduct
CSR Monitoring (self-checks) using the JEITA Supply Chain
CSR Deployment Guidebook and detailed checklists. After
collecting and analyzing the results, we provide feedback forthe business operations related to the suppliers, and thenwork with those involved in the operations to resolve issues
related to the suppliers. Since fiscal 2011, we have
expanded the scope to include suppliers in China and therest of Asia, and in fiscal 2015 we asked 218 suppliers
outside Japan to conduct CSR Monitoring.

We are improving our green procurement rate—the ratio ofenvironmentally conscious products purchased to total officesupplies—by using a Group-wide online procurement
system: the E-sourcing Mall. This system has a range ofenvironmentally conscious products and promotes
procurement by clearly labeling these products. In fiscal
2015, our green purchasing rate reached 87%.

Self-Check Results
FY

Suppliers in Japan

Suppliers outside Japan

Total

2011

0

102

2012

57

41

98

2013

55

45

100

102

2014

0

200

200

2015

0

218

218

Total

112

606

718

Implementation of CSR Audits
Since July 2012, we have been auditing suppliers in China
and the rest of Asia. In fiscal 2015 as well, we conducted
CSR audits of 20 suppliers, all of them in China. For
these audits, we engaged the experienced CSR auditing
company Intertek Certification. Our audits are based on theinternational SA8000 certification standard developed bySocial Accountability International (SAI), an American CSR
evaluation institution. These audits investigate our workplace
practices, and an EICC-recognized auditor checks suppliers’
CSR initiatives from the perspectives of labor and humanrights, health and safety, the environment, and ethics.
In fiscal 2015, audit results revealed no major
infringements at the 20 suppliers, but made note of somesmall areas needing improvement, such as overtime work
exceeding stipulated rules (17 suppliers), failure to conductperiodic inspections of machinery and equipment (12), andinsufficient management of hazardous waste (15). We havemandated that these suppliers submit improvement actionplans and will be working with and advising them until they
complete the planned improvements.
*1 Intertek Certification: With a presence in over 100 countries across the globe, theIntertek Group provides a wide array of certification services in every industrial field.

Human Rights Due Diligence in Procurement
Starting in fiscal 2015, the Hitachi Group Procurement
Division began implementing human rights due diligencebased on the Hitachi Group Human Rights Policy. In thecurrent fiscal year we requested the consulting services of
the nonprofit organization Shift for the creation of a working
group centered on the procurement and CSR divisions at
Hitachi, Ltd., which serve as the corporate divisions
overseeing activities throughout the Group, including the
procurement and CSR divisions of two in-house and fourGroup companies and the CSR division of Hitachi Asia Ltd.
The working group has evaluated human rights risks within
the supply chain, set priorities, and considered measures for
reducing risks. Starting from fiscal 2016, plans call for
Hitachi to update existing policies and its guidance
document based on the results of the fiscal 2015 due
diligence, and also to introduce concrete measures such asincorporating human rights initiatives within its ordinary
procurement operations.
Respect for Human Rights

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Customers (Consumer Issues)
Hitachi’s Aims
Under the Hitachi Group Codes of Conduct, we have worked to provide high quality and safe products and services andto prioritize the customer’s perspective. The Hitachi Group provides a broad range of products and services extending
from household electronics to social infrastructure, and we strive to expand our lineup to address the needs of ourclients and issues facing society. We feel it is important to contribute to building societies where everyone can enjoy alifestyle of convenience and comfort, and toward this goal we are working to respond to the diverse needs of customers
regardless of factors such as age, physical and mental abilities, economic circumstances, and cultural background.
We develop products and services with which customers will be satisfied and which can be used with confidence
while also striving to improve their accessibility. We also respect the rights of customers and are working to provide
accurate information about our products and services while strictly managing customer information.

Main Plans and Results
Achievement
level

Policies

FY 2015 goals/plans

Results in FY 2015

· Infiltration andembeddedness
of QF (Quality
First) mindset
and sense of
responsibility andefforts tostrengthen
implementation· Implement ochibo hiroi,
analyzing root causes of
product accidents andreviewing preventive
measures with theneeds of customers
foremost in mind

· Implemented ochibo hiroi at 85 offices
worldwide· Implement ochibo hiroi, analyzing root
causes of product accidents and reviewing
preventive measures with the needs ofcustomers foremost in mind

· Improvement ofcorporate
websiteaccessibility inkeeping with2010 revisions ofJapan Industrial
Standards· Conduct two training/briefing sessions inJapan· Conduct training/briefing
sessions at five locations
outside Japan· Promote use of
guidelines for regional
portal sites· Conducted two training/briefing sessions inJapan· Conducted five training/briefing sessions atfour locations outside Japan· Re-examined the corporate website foraccessibility· Conduct an annual training session in Japan· Annually update information and distributematerials for online conferences at various
locations outside Japan: Achieved: Partially achieved: Not achieved

FY 2016 goals/plans

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Hitachi Sustainability Report 2016

Management Approach

Activities
Customers (Consumer Issues)

Performance Data
Pursuing Customer Satisfaction

Pursuing Customer Satisfaction
Hitachi’s Approach
As a company that offers a broad range of products andservices, we believe it is important to engage in corporate
activities with the general public in mind, not just the corporate
and individual consumers with whom we deal directly.
To improve customer satisfaction (CS), we have created
the Customer Satisfaction Management Guidelines. We
share customers’ thoughts obtained through direct dialogue,
customer service counters, and other means within therelevant divisions and reflect these in our management,
products and services, and solution strategies. We also look
to disseminate information through our advertising andpublic relations activities in a truthful and appropriatemanner that does not mislead customers or in other waysthat may adversely affect society, such as by reinforcing
human rights infringements.

Our Hokkaido, Tohoku, and Shikoku area operations
hold executive seminars for local customers. Throughdirect dialogue with customers participating in our
seminars and lectures, we incorporate their expectationsfor Hitachi and their opinions into product strategies.
We also hold the Hitachi Social Innovation Forum,
which includes lectures, business sessions, seminars, andexhibits showcasing new businesses and initiatives
targeting social innovation. Project leaders explain details
to customers to deepen their understanding of Hitachi’sbusiness. We use feedback from this forum to improve
our operations.
Our R&D Technology Community program provides
opportunities for creation through collaboration withcustomers. Project leaders invite customers to theirresearch labs to see exhibits of products and systems
currently being developed.

Applying Advertisement Guidelines

Customer Satisfaction
CS Improvement Activities
Using the Customer Satisfaction Management Guidelines,
one of the pillars of the company’s business management,
Hitachi continues to improve CS with the goal of creating
innovation through collaboration with customers.
Customer Satisfaction Management Guidelines
1. Listen to our customers, who determine the value of products andservices
2. Review information from our customers is another source ofimprovement
3. Offer prices and quality that are competitive
4. Respond rapidly to keep our promises to our customers
5. Adopt systems that prevent accidents and minimize their impact
Formulated in 1994

Reflecting Customers’ Voices
Our sales and marketing division uses customer input indeveloping management, product, and solution strategies.
We identify key customers who will help grow our business,then assign an account manager (AM) to each one. The
AMs serve as customers’ “portals” into Hitachi Group
companies in Japan, and the whole Group works with themto build closer relations with customers and to boost
customer satisfaction.

Based on its Customer Satisfaction Management Guidelines,
Hitachi, Ltd. applies advertisement guidelines to ensure thatits advertising activities comply with laws and regulations
showing proper consideration for society as a whole. We willcontinue to create advertisements that reflect ongoingchanges in society, that provide customers with clear andconcise messages, and that are appropriate for a company
committed to contributing to society.
As issues that arise from advertisement activities canhave broad impact on the company, we have established ineach business unit a framework for evaluating theexpressions in advertisements that stands independent of
the ad production process. Following this institutional check,
we also evaluate advertisements to ensure that they aresocially appropriate.
We designed our advertisement guidelines to be flexibly
adjusted and applied to the entire Hitachi Group’s diverse
operations. At our business locations outside Japan inparticular, we strive to ensure appropriate advertising
activities by confirming all items on the checklist included in
the guidelines.

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Providing Customer Support Online
Hitachi offers comprehensive customer support on its
website. This enables us to process customer inquiries,
opinions, requests, and complaints—in collaboration withthe customer support offices of Hitachi Group companies inJapan—to improve our business operations, as well as our
products and services. We also conduct training courses toprovide better handling of these inquiries.
As one initiative, we have been holding the Web Inquiry
Responsiveness Improvement Course since fiscal 2009. In
fiscal 2015, 52 Hitachi Group company employees took thecourse (bringing the cumulative total to 701 participants),
which features case studies on responses to inquiries. Goingforward, we will strengthen coordination among Group
companies to respond more quickly and effectively tocustomer inquiries, using the website as an important
contact tool.

Pursuing Customer Satisfaction

Customer Contact Cases, Call Completion Rate
(12-Month Average)(cases per month)(%)

100,000100*1 Since fiscal 2013, technical inquiries from suppliers and parts orders have been
excluded from these statistics.

80.8

82.1

80.5

74.8

80,00060,00045,60740,00020,000040,19339,782

14,376

8,720

31,231

31,473

2011

2012

60

5,952

37,158

4,782

33,8302013

80

36,19732,376

2014

4,050

40

32,147202015 (FY)White goods (electric home appliances and other products) (left scale)
Brown goods (electronic equipment) (left scale)(Call completion rate) (right scale)

Results of Evaluation Survey for Customer Repair Services(Customer Satisfaction)
(%)
100
95

Improving Customer Satisfaction in Electric Home
Appliances

97.1

96.6

97.1

97.2

97.3

2011

2012

2013

2014

2015 (FY)

90
85
80
75
0

Notes: Evaluation survey for 2015 carried out in June–August 2015 (35,400 respondents;
38.8% response rate) and December 2015–February 2016 (28,800 respondents;
37.9% response rate).

Flow of Customer Service
Information on repair service

Repair request
RepairContact
CenterCustomers

The Electric Home Appliances Customer Satisfaction
Division has enabled the expansion of Hitachi’s businessfrom electronic and electric equipment to the environment
business by drawing up a vision for environmental value
creation, actively promoting various service areas.
Our call center and website handle about 2.31 million
customer inquiries, repair requests, and complaints aboutwashing machines, LCD TVs, and other appliances per
year.*1 We have undertaken a number of initiatives to better
respond to inquiries and to reflect customer feedback in ourmonozukuri craftsmanship, including improving the contact
success rate by using outsourcing; creating a database ofcustomer feedback, including consultations, inquiries, andcomplaints; and enhancing our website’s FAQ section.
We also conduct semiannual customer service
evaluation surveys at approximately 90 service centers inJapan. Based on the answers, we improve services throughCS training courses and other programs.
With the expansion of Hitachi’s markets outside Japan,
sales offices have been opened in nine countries in Asia andthe Middle and Near East. We are also working on unifying
management of operations outside Japan.

84.8

RepairInquiry

Response
Response activity

Individual business
group
Quality assurance
department

Feedback on improvements

Customer
SupportContact
Center(no repair)

Input indatabase

Flow of information

Designdepartment
Feedback
Manufacturing
department
Information sharing0

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Hitachi Sustainability Report 2016

Management Approach

Activities
Customers (Consumer Issues)

Performance Data
Ensuring Accessibility to Products and Services

Ensuring Accessibility to Products and Services
Hitachi’s Approach
ISO 26000 provides guidelines for corporate social
responsibility. It identifies such core consumer issues as “fairmarketing, factual and unbiased information” and “access toessential services” and calls on corporations to actively takemeasures addressing these. It is the base of our CSR
management framework, and in applying it we are working
to improve our products and services to make them broadly
accessible to society through such activities as theappropriate disclosure of product information and thepromotion of universal design. In addition, to support thegrowth of emerging economies we are developing products
and services to meet new social needs and carrying out ourSocial Innovation Business while also engaging in active
marketing and other activities.

Universal Design
We promote universal design (UD) with a focus on three
aspects of our products: their quality of use, theiraccessibility, and their entire life cycle. Quality of use means
focusing on the traits that make people feel that the productis easy and enjoyable to make a part of their lives.
Accessibility refers to the range of people who can use a
product or service. And the life cycle covers all thecustomer-relevant stages of the value chain, from productpurchase through to disposal.
We conduct basic research on users’ behavioral andcognitive characteristics to formulate UD guidelines andreflect these in product development, incorporating input
from users and experts at every stage. The information
obtained during product development goes into a databaseshared by our businesses in Japan. We also distribute someof this information externally to promote open-source
standardization and education.

Increasing UD Products in Digital and Home Appliances
We define people as customers as soon as a productinterests them, and therefore make a point of considering UD
concepts in all stages, from presales to disposal. Key
attributes are usability, features, harmony with theenvironment, safety, and maintenance. Our intention is toprovide products that suit the physical capabilities andlifestyles of all customers and are appreciated for a long time.
Our UD focus extends beyond products to include
product manuals. For example, to allow the visually impaired
to use our products safely and easily, we are working with
the NPO Kanagawa Information, Employment, and Welfare
Network for the Visually Impaired (View-Net Kanagawa) tomake our manuals available as audio text files.
The entire manual, including photographs, diagrams,
and tables, is converted into a text file that can be played
aloud using text-to-speech software (a screen reader for thevisually impaired) and made available online. The text files
are created based on feedback from visually impaired
people who have operated and verified product use while
listening to the instructions.
We have also launched a range of measures to improve
the accessibility of increasingly complex electronic
consumer appliances for the elderly and disabled. DVDs
providing clear explanations on product use are included
with products, while some products have Japanese Braillelabeling on their buttons.

Instruction DVD.

Verifying audio text files for product operation.

Universal Design at Hitachi

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Hitachi Sustainability Report 2016

Management Approach

Activities
Customers (Consumer Issues)

Performance Data
Ensuring Accessibility to Products and Services

Bringing UD to Public Equipment and Systems
Public equipment and systems are used by a large number ofpeople, including children, either individually or collectively, inpublic spaces like government buildings, stations, railways,
and hospitals. Product design must address not only ease ofuse but also security, privacy, and safety.
For example, our automated teller machines (ATMs)
include considerations and ideas based on a human-centric
approach aimed at producing a machine that a range of
people can operate in the same way with ease and without
any particular concern. The arched guide frame leads hands
naturally toward the card, bankbook, and cash slots. The
open space below the user panel has been substantiallydeepened to improve wheelchair access.
The screen interface, designed to be easier to use
regardless of differences in color vision, has received Color
Universal Design certification*1 from the NPO Color Universal
Design Organization (CUDO).
*1 CUDO Color Universal Design certification: Granted where the color schemes used in
products and facilities, etc., are tested and found to be consistent with CUDO
standards for color UD, the concept of designing products and facilities for universal
ease of use, regardless of people’s differences in color perception. The aim of the
CUDO certification system is to contribute to the public good by creating a society that
accommodates individuals’ differences.

An arched guide frame leads hands naturally toward the slots.

AKe-S next-generation ATM.

Increasing UD Products in Web and Information Systems
Web and information systems are essential for gathering
information and communicating. For users with disabilities
who have difficulty accessing information, it is particularly
important to make systems accessible, usable, and secure.
Hitachi promotes UD that ensures accessibility in our web
and information systems by using the international Web
Content Accessibility Guidelines (WCAG) 2.0.*1 Examples
include screens and layouts that are easy to read,compatibility with screen readers that read content out loud,and a feature that allows people to alter font size and color.
The Assistance for Color Generation by CSS3 (CSS3
Generator) tool uses CSS3,*2 enabling the rendering of
gradation, shadows, glow effects, font bordering, rounded
corners, and other effects that allow more people to create
web pages efficiently without factoring in colors or using
images. This tool makes it easy to choose colors that can bedifferentiated regardless of color vision. Hitachi has madethis tool available for free so that it can be used by screen
designers and systems developers.
*1 WCAG 2.0: Guidelines created by the World Wide Web Consortium (W3C) that form thebasis of the Japanese Industrial Standard on information communications and Web
content. The International Organization for Standardization (ISO) adopted theseguidelines as an ISO/IEC 40500:2012 standard on October 12, 2012.
*2 CSS3 (CSS Level 3): An additional specification for the W3C’s Cascading Style Sheets(CSS), a language for describing the rendering of HTML and XML documents.

An inset front face below provides better wheelchair access.

Screenshot of the Assistance for Color Generation tool.

A display screen accommodating color vision differences.

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Hitachi Sustainability Report 2016

Management Approach
Customers (Consumer Issues)

Activities

Performance Data

Ensuring Accessibility to Products and Services, Ensuring Thorough Management of Quality and Safety

Product Safety Information Disclosure
Information Disclosure for Safety
Hitachi’s Product Safety Assurance Guidelines state that ourhighest priority is the safety of our customers, and we haveestablished activity guidelines for safety across the Group.
As changes in social norms and the environment bringabout the need for higher standards of safety, we arecrafting even higher safety standards by having the HitachiGroup’s risk assessment team share the latest practicalcases within the Group and evaluate the safety activities
related to each product.
Moreover, we are also proactively working to disclose
safety information on the use of our products and improving
risk communication with our customers by establishing the
Guide for Preparing User Instruction Manuals.

Adaptation for Emerging Markets
Product and Service Adaptation for Emerging Markets
As a consequence of their rapid economic development,
emerging markets face issues including food shortages,
poverty, and environmental and energy concerns, which are
attributed to urbanization and population growth. In an effort
to seek solutions to these social issues, we are expanding ourSocial Innovation Business globally.

Economic growth and rising incomes in India have madebolstering the nation’s financial infrastructure a top-priority
issue, and the Indian government is promoting measures toexpand access to financial services throughout the country,
including in rural communities. Hitachi has entered India’s
payment services market by acquiring a major domestic firmwith a proven record in automated teller machine (ATM)services, including monitoring, maintenance, and support in
optimizing installation for better location selection andfurther efficiency. Pairing the local company’s knowledge ofthe markets with our big data analytic technology has
enabled us to increase our services nationwide. As of March
2016, we manage over 50,000 ATMs and over 270,000
point of sale (POS) service devices.
The introduction of our payment services business
represents a change in direction for our operations in India
toward more complete financial solutions. In contrast to
developed countries, where FinTech*1 such as cashless
settlement services is widely available, the need for ATMcentered financial services is expected to continue as
emerging markets are heavily reliant on cash payments.
Moving forward, we plan to expand our financial services
business in Southeast Asia and other emerging countries.
*1 FinTech: A portmanteau of financial technology, describing convenient and innovative
financial services using IT created from the point of view of customer needs.

Ensuring Thorough Management of Quality and Safety
Hitachi’s Approach
Meeting the quality standards our customers expect andproviding products and services they can use with confidence
are the management themes cited at the beginning of the
Hitachi Group Codes of Conduct that each employee strives
to fulfill as a promise to society. We are establishing thoroughquality assurance measures from the design and production
stages through after-sales service, as well as working toensure a quick response and proper information disclosure in
the event a problem emerges. In addition, as production andother operations increasingly take place outside of Japan, we
giving importance to quality assurance in our global humanresource development activities, and we are working to
expand our current programs.

Quality Assurance Activities
About Our Activities
Based on the Corporate Credo of contributing to society
through the development of superior, original technology andproducts, Hitachi is engaged in the monozukuri
craftsmanship with quality and reliability as top priority. An
integral aspect of this is ochibo hiroi, Hitachi’s traditional
approach meaning “gleaning” in English, through which welearn from failure and further develop our technologies. In
practice, when an accident occurs, we not only investigate
the technical cause of the accident but also have an
executive officer in charge and relevant staff members
thoroughly discuss the process, framework, andpsychological factors of the incident in order to improve our
product reliability and customer satisfaction. To ensure
quality and reliability, we enhance our quality assurance
activities from the perspectives of organization andmanagement, technology, and human resources in every
process—from planning, development, design,
manufacturing, and delivery to maintenance—in order toperform our safety-driven brief.

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Ensuring Thorough Management of Quality and Safety

consciousness and safety labels. We distribute information
on product regulations worldwide, along with amendment
trends and enforcement dates, among Hitachi Group
companies. We have also created guidelines for assessmentof technical laws and quality assurance systems, sharing
them throughout the Group. The guidelines focus on
clarifying product-specific laws (the product-specific lawsmap); on regulatory compliance activities and continuous
improvement of processes, based on our compliancemanagement system; and on compliance education, as wellas raising compliance awareness.

From fiscal 2010 to 2015 we promoted Group-widemeasures to ensure product safety, compliance with laws
and regulations, human resource development, and quality
improvements. To realize our fiscal 2018 Mid-termManagement Plan, from fiscal 2016 onward we are steadily
working to improve the quality of services and the reliabilityof our products for quality, as well as to promote thereduction of loss costs with better quality management.
Intensive Risk Assessment
Hitachi is committed to the quality, reliability, and delivery ofsafe products and services by combining expertise andtechnologies in such varied areas as planning, research,
design, manufacturing, quality assurance, and maintenance.
The safety of our customers’ life, health, and property is the
top priority in product development. Therefore, we verify
safety at every step, from development and production tosales and maintenance, and conduct risk assessments froma wide perspective in collaboration with related business
units and research laboratories.

Handling Product Accidents
When a product accident occurs, the division responsible
acts swiftly to resolve the problem from the customer’s
perspective. For an especially severe accident, we report togovernment agencies in line with legal requirements andpublish the incident information on our website and throughother channels. At the same time, we promptly submit a
status report to top management, ensuring fast andappropriate action at all companies across the Group.

Complying with Technical Laws
To supply our customers with products that they can use
with confidence, we comply with all product safety andtechnical laws, including those covering environmental
Response Flow in the Event of Product Accident
Accident
occurrence

Hitachi Group
Information gathering

CustomerliaisonCustomers,
retailers

Top management

Confirmation of accident status

Investigation of cause

Flow of information

ReportConsumer Affairs
Agency, etc.

QA Department

Emergency
response
authorities

Response andreporting

ReportOnsiteinvestigation

Product
investigation

Investigation ofdamage scope

Investigative
committee on serious
product accidents
Decision on
seriousness ofaccident

Seriousproduct
accident

Product recall
Notification via web,
media

Information sharing

Quality and Reliability Education
We conduct various technical lectures for engineers engaged
in monozukuri craftsmanship, beginners and experts alike, inthe field of the Weibull, FTA, and FMEA analysis methods inaddition to product safety. In addition to these lectures, we
initiated training on reliability improvement to foster
instructors from November 2014 to August 2015. The
content of the training extended from the Founding Spirit andlessons learned from accidents to our distinct approach,monozukuri, which makes Hitachi special. As of August
2015, we have trained over 200 instructors, who are passing
on Hitachi’s monozukuri to the next generation of engineers.

Each business unit also conducts specialized technicalcourses regarding manufacturing, quality assurance, andmaintenance at their quality assurance training centers.

Ensuring Home Appliance Safety
We are reducing consumer appliance accidents to nearzero levels in line with Hitachi’s Customer Satisfaction
Management Guidelines, which set avoidance of all accidents
as the baseline. For example, since fiscal 1987 we have been
testing worst-case scenarios, such as deliberately setting afire inside a product to confirm that the fire will not spreadoutside it. Since fiscal 2006, we have also been conducting

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Customers (Consumer Issues)

Ensuring Thorough Management of Quality and Safety

product safety risk assessments at the development stage,
creating “accidents” that might be caused by misuse.
We will continue to make all our consumer appliances evensafer, using our own voluntary action plan for product safety, sothat customers can use our products with confidence.

Training Global QA Personnel in Asia
As local production has been growing in Asia, we arecarrying out training to ensure that products from the region
meet Hitachi’s global standard of quality. For example, wehost conferences for QA managers in China and Thailand,
where we have a large number of manufacturing sites, toraise quality awareness with regard to Hitachi’s monozukuri
craftsmanship and to share information and best practices.
Additionally, to help employees in quality assurance
become global players and improve their level of quality
management, we provide three levels of training courses in
Beijing, Shanghai, and Guangzhou in China and in Bangkok,
Thailand: the Basic Reliability Course,*1 Intermediate
Reliability Course,*2 and Advanced Reliability Course. In the
Advanced Reliability Course, managers and senior managers
hold group discussions on past product accidents toinvestigate the causes, including process-related,organizational, and psychological factors, and thediscussions help them enhance their ability to identify issues
and craft solutions.
*1 Basic Reliability Course: Deepens understanding of Hitachi’s monozukuri craftsmanship,
quality management, and labor safety.
*2 Intermediate Reliability Course: Improves understanding of more practical issues,
including Hitachi’s monozukuri craftsmanship, ISO 9001 certification, defect elimination,
design for reliability, and purchase management.

Rigorous Information Management
Web Marketing
Hitachi utilizes online platforms, including the corporatewebsite and social media, to promote its business andenhance customers’ understanding of Hitachi as part ofdeveloping the Social Innovation Business globally. The useof these platforms requires effective risk management toprotect our brand and to prevent violations of human rights.
To this end, we have established the Hitachi Disclosure
Policy, the Global Information Security Administration Rules,
and the Social Media Guideline as guidance tools, sharing
them with Group companies worldwide.
Additionally, Hi-CRM, Hitachi’s customer relations
management system, has been applied to 194 Group
companies to collect and accurately manage customer
information Group-wide, in addition to serving as amarketing tool. Hi-CRM covers 66% of the orders received
across the whole Group, with the database enabling us toformulate more effective sales strategies and offer
collaborative solutions by multiple businesses. We are
currently considering rolling out the system moreaggressively across the Group.

Protecting Personal Information
We established a personal information protection
management system based on our Personal Information
Protection Policy. Through the rollout of this system, as
well as the safe handling of personal information,e-learning programs for all employees, and periodic
audits, we are ensuring protection of personal information
throughout the company.
We are also establishing a management system anddefining internal regulations in line with legal requirements toappropriately manage information related to Japan’s My
Number taxpayer identification system, which thegovernment introduced in January 2016.
Hitachi experienced no leaks of personal information
during fiscal 2015.
Privacy Mark*1 Certification
Hitachi, Ltd. first received Privacy Mark certification in March
2007. We have maintained the high level of privacy
protection needed to renew this certification five subsequent
times, most recently in March 2015. We are making every
effort to ensure our sixth consecutive certification in March2017. The entire Hitachi Group is committed to personal
information protection, with 57 Hitachi Group companies inJapan having received the Privacy Mark as of May 2016. In
July 2009, the Corporate Hospital Group in Japan also
gained Privacy Mark certification. This group is working hardto protect and carefully handle the personal information of its
patients and others. Hitachi also strives to safeguard
personal information globally at Group companies outside
Japan based on the Personal Information Protection Policy
and by adhering to all applicable laws and regulations,
including social requirements.
Again, Hitachi experienced no leaks of personal
information during fiscal 2015.
*1 Privacy Mark: A third-party certification established in April 1998 that is granted by theassessment body Japan Information Processing Development Corporation tobusinesses that have taken appropriate security management and protection measuresrelated to personal information.

Personal Information Protection Policy

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Hitachi Sustainability Report 2016

Management Approach

Activities
Community Involvement and Development

Performance Data
Promoting Sustainable Community Involvement and Development

Community Involvement and Development
Hitachi’s Aims
Corporations interact with a diverse community of stakeholders through their onsite operations. In working toward asustainable society, modern corporations are expected to recognize the value of community interaction and utilize theiroperational strengths in actively supporting the local community through projects that bolster involvement anddevelopment at the local level.
As a good corporate citizen, Hitachi is carrying out a diverse range of community activities and advancing
coexistence with society, such as through youth development, creation of cultural diversity, assistance for local
community development, and environmental preservation.

Main Plans and Results
Achievement
level

Policies

FY 2015 goals/plans

Results in FY 2015

· Examination andimplementation of
measures to establish
longer-term
relationship with
communities in which
Hitachi operates· Plan, implement, and review
activities that serve as precedents· Implemented research and analysis
of in-house activities that serve as
precedents· Construct framework for activities· Implementation ofcommunity support
activities· Conduct programs by or for Group
employees· Conduct independent programs incollaboration with Group companies· Have each Group company andbusiness unit conduct independentcommunity support programs· Group employee volunteers
conducted Universal Design (UD)
Educational Programs at 38 schools
in and outside Japan· Held seven Hitachi Science
Seminars in collaboration withGroup companies· Implemented 113 community
support programs during Hitachi
Volunteer Day—a month of social
contributions by the entire Group· Continue with independentcommunity support programs ofeach Group company and eachbusiness unit

· Implementation ofpolicies to cultivate
human resources indeveloping countries· Hold 13th Hitachi Young Leaders
Initiative (HYLI)· Held HYLI in Manila, Philippines,
with the participation of 31 university
students from seven ASEAN
countries and Japan· Prepare for 14th HYLI

· Examine and implement exchange
program with students from Asian
University for Women (AUW)· Implemented internship for one
AUW graduate· Continue exchange program with
AUW

: Achieved: Partially achieved

FY 2016 goals/plans: Not achieved

Promoting Sustainable Community Involvement and Development
Hitachi’s Approach
Our diverse operations span the globe and involve a wide
range of communities. In order to participate in a community,
establish a longer-term relationship with it, and contribute toits development, we feel it is important to strategicallypursue social contribution activities and to establish
sustainable goals. We have formulated a policy on social
contribution activities and are carrying out a wide variety ofactivities across the Group.

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Community Involvement and Development

Classification According to LBG Guidelines

Social Contribution Activities
Policy on Social Contribution Activities
In fiscal 2014, we revised our policy on social contribution
activities based on our own CSR management framework.
With the new Group-wide policy on social contribution
activities, we will proactively promote our activities. The
engine of our various businesses including social innovation
is not only driven by Hitachi’s efforts to build a relationshipwith communities as a corporate citizen but also by our
employees’ flexible mindset and motivation brought about
by volunteer activities. We believe that these initiatives
enable us to contribute to the development of sustainability
in both our business and society as a whole.
As one of Hitachi’s global efforts, we introduced the
Hitachi Volunteer Day in 2012. To mark the International
Volunteer Day on December 5 each year, we set every
November and December as a period during which wefurther encourage our employees to organize and take partin a broad range of volunteer activities to contribute to theircommunities.
In fiscal 2015, Hitachi and the Hitachi Global
Foundation provided 2,057 million yen in funding towardsocial contribution activities worldwide.
Policy on Social Contribution Activities and Statement
Policy on Social Contribution Activities
The Hitachi Group promotes interactive communication with local
society through social contribution activities related to businessactivities, employee volunteers, and charitable activities in the
key fields of human development, the environment, andcommunity support.
Statement“Nurturing People, Connecting to the Future”
The statement was set down to succinctly express and convey
the meaning of the policy to as many people as possible.

Social Contribution Activity

Key Indicators
Breakdown of Funding for Social Contribution Activities
Social welfare

7%

Other

33%
(including disaster
relief at 3%)
2,057 million yen*1
Environment

5%

Promoting Sustainable Community Involvement and Development

Scholarships
and education

Culture and the arts

14%

41%

We conduct surveys of social contribution activities byapplying three categories of motivation based on the LBG*1
measurement framework, namely charitable gifts, community
investment, and commercial initiatives in the community.
Hitachi continues to focus on ways to strategically align its
social contribution activities with its business, with efforts
toward this end including continued charitable activities andincreased community investment across the Hitachi Group.
Ratio of Social Contribution Activities Based on LBG Guidelines(monetary basis)
Fiscal 2014

Fiscal 2015

Charitable gifts

80%

80%

Community investment

18%

16%

Commercial initiatives in the community

2%

4%*1 LBG (London Benchmarking Group): An internationally recognized, global network of
114 companies that provides a framework for measuring corporate community
investment. Over 300 companies worldwide use the LBG model.

LBG

The Hitachi Global Foundation
On April 1, 2015, five foundations in Japan long supportedby the Hitachi Group—namely, the Odaira Memorial Hitachi
Education Foundation, the Kurata Memorial Hitachi Scienceand Technology Foundation, the Hitachi Environment
Foundation, the Hitachi Scholarship Foundation, and the
Hitachi Mirai Foundation—merged into the Hitachi Global
Foundation. The aim is for the newly formed organization todevelop the activities previously undertaken respectively byeach of the five foundations to further meet societal needs.
Under a policy on social contribution activities revised infiscal 2014, the Hitachi Global Foundation plans to utilize
Hitachi’s experience and know-how to promote activities inthree key areas—promotion of academic research, science,and technology; human development; and support for local
communities—in order to enhance social value throughcollaboration across the Hitachi Group.
In fiscal 2016–18 we will focus attention on
consolidation of the organization. The Foundation has along-term view informing how it carries out social
contribution programs based on an array of societal needs,
such as addressing the declining birthrate and the graying ofsociety, responding to the rapid advancement of information
technology, cultivating future human resources, andinvigorating local communities. Our programs include
providing scientific research grants, nurturing future scienceand engineering-related personnel, offering scholarships tofaculty at universities around Asia, and launching new
programs addressing global issues facing the sociallyvulnerable, including youths and the elderly.

*1 Japan: Hitachi, Ltd., 137 Group companies, and the Hitachi Global Foundation.
Outside Japan: 244 Group companies.

The Hitachi Global Foundation

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data

Environment
Hitachi’s Aims
The world’s population, which was 7.3 billion in 2015, is projected to grow to 9.7 billion by 2050 and to 11.2 billion by
2100.*1 Global GDP is also continuing to expand—led by emerging economies—aggravating a host of environmental
problems, including global warming caused by higher CO2 emissions from fossil fuel consumption, the depletion of
resources due to increased demand, and ecosystem destruction. Global-scale efforts are being made to develop
approaches that lighten the burden on the environment so that a prosperous planet can be passed on to future generations.
Hitachi strives to achieve a more sustainable society by addressing environmental problems, which pose a major
challenge for society, based on its corporate mission of contributing to society through the development of superior,original technology and products.
*1 According to World Population Prospects: The 2015 Revision, published by the United Nations.

Main Plans and Results
Achievement
level

Policies

FY 2015 goals/plans

Results in FY 2015

· Expansion of Hitachi Eco-Product lineup(through fiscal 2015)· Improvement in environmental performance of products
and services (from fiscal 2016)· Achieve Eco-Productsales ratio of 90%· Achieved Eco-Productsales ratio of 95%· Reduce CO2 emissions
from use of products
and services by 30%(compared to fiscal
2010)· Promotion of improved energy efficiency in factories
and offices· Reduce energy use perunit by 15%· Reduced energy use perunit by 16%· Reduce energy use perunit by 15% (comparedto fiscal 2005): Achieved: Partially achieved

FY 2016 goals/plans: Not achieved

Promoting Environmental Management

69

Enhancing Environmental Management on an Ongoing Basis

72

Responding to Environmental Risks and Opportunities

81

Reducing the Environmental Burden of Our Business Operations(Fiscal 2015 Results)

82

Preserving Ecosystems

91

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Promoting Environmental Management

Promoting Environmental Management
Hitachi’s Approach
Hitachi faces a broad range of challenges regarding its
products and services, such as reducing carbon emissions
and improving resource efficiency across the value chain. At
the same time, given the expectations of society, innovations
that help resolve environmental issues present major
business opportunities.
Guided by our Environmental Vision, we have formulated
a set of long-term environmental targets called Hitachi
Environmental Innovation 2050 to guide our environmental
initiatives from a broader and longer-term perspective. The
Environmental Action Plan for 2018 lays out specific activity
areas and improvement targets for achieving ourEnvironmental Vision and long-term environmental targets.
Aligning this with the 2018 Mid-term Management Plan, we
will promote Group-wide efforts to achieve the targets set
forth in the Environmental Action Plan, thereby practicing
environmental management in a manner that meets the
expectations of society.

Environmental Vision

Hitachi will resolve environmental issues
and achieve both a higher quality of life
and a sustainable society through its
Social Innovation Business in collaborative
creation with its stakeholders.

Setting Long-Term Environmental Targets: Hitachi
Environmental Innovation 2050
Our Environmental Vision envisions a low-carbon society;a resource efficient society; a harmonized society withnature. To achieve such a sustainable society, we havereviewed the contents of our long-term Environmental
Vision 2025, which we have been promoting until now,and newly established a set of long-term environmental
targets called Hitachi Environmental Innovation 2050.

Hitachi Environmental Innovation 2050

Hitachi’s Environmental Vision and Long-Term
Environmental Targets
Hitachi’s Environmental Vision
As global warming, resource depletion, ecosystem
destruction, and other environmental issues grow more
serious, companies face increasing demands andexpectations to reduce the environmental burden of theirbusiness activities.
The Intergovernmental Panel on Climate Change (IPCC)
concluded in the Synthesis Report of its Fifth Assessment
Report, issued in November 2014, that limiting global
warming “below 2°C relative to pre-industrial levels” would
require “40 to 70% global anthropogenic GHG emissions
reductions by 2050 compared to 2010.” The Paris
Agreement adopted in December 2015 at the 21stConference of the Parties (COP21) to the United Nations
Framework Convention on Climate Change set ambitious
targets, including a global long-term target of keeping global
warming to below 2°C and efforts to limit the increase to
1.5°C. Long-term environmental targets have also been set
in the Sustainable Development Goals (SDGs)—thecenterpiece of the 2030 Agenda for Sustainable
Development, adopted by the United Nations in 2015.
In the light of these global trends and our own
management policy, we created an Environmental Vision tobetter define the kind of society that Hitachi envisions from along-term perspective.

Low-carbon society
Achieve 50% reductions
in CO2 emissions by fiscal 2030
and 80% reductions by fiscal 2050
across the value chain(compared to fiscal 2010)

Resource efficient society
Build a society that uses water andother resources efficiently
Achieve 50% improvement in usage efficiencyof water and other resources by fiscal 2050
(compared to fiscal 2010 in the Hitachi Group)

Harmonized society with nature
Minimize the impact
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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Promoting Environmental Management

Low-carbon society

The target aims for an 80% reduction in CO2 emissions
compared to fiscal 2010 levels by fiscal 2050, going overand beyond the targets set forth in the IPCC’s Fifth
Assessment Report. We will reduce CO2 emissions arisingfrom the use of Hitachi’s products and solutions, which
account for over 90% of emissions in our value chain. We
will contribute to our customers and society by developing
innovative technologies and solutions, as well as enhancing
the efficiency of our products and supplying low-carbon
energy. At the same time, we will also work to cut down onemissions at the production stage.
Resource efficient society

Together with our customers and society, we will do ourutmost through our business operations to help build asociety that uses water and other resources efficiently. We
will expand circulative use of water by further advancing theentire range of water treatment technologies involved inwater use from seawater desalination and other forms offresh water generation to sewage treatment.
We will also improve our usage efficiency of water andother resources by 50% compared to fiscal 2010 levels by
fiscal 2050. To that end, we will create products that last
longer and use less resources, make thoroughgoing efforts
to collect and recycle used products, reduce the volume ofwater used in the production process as well as purifying
and reusing water, and engage in other efforts.
Harmonized society with nature

We will strive to minimize Hitachi’s impact on natural capital,
which bestows the benefits of nature on humankind. We willassess ecosystem impact and advance measures tominimize the burden at each stage of Hitachi’s value chain.
Moreover, we will preserve the ecosystem through our
products and services, such as our air and water purification
systems and environmental monitoring systems. We will alsoendeavor to minimize the environmental burden of ourfactories and offices.

The Hitachi Action Guidelines for Environmental
Conservation
The Action Guidelines for Environmental Conservation weredrawn up to show the direction of our business management
initiatives for environmental protection as we set out torealize the Hitachi Environmental Vision.
The Hitachi Action Guidelines for Environmental Conservation

Performance Data

Environmental Action Plan for 2018
Hitachi is pressing forward with activities in accordance with
its Action Guidelines for Environmental Conservation in orderto achieve its Environmental Vision and its Hitachi
Environmental Innovation 2050 long-term environmental
targets. Toward this end, we are steadily promoting
environmental activities through the implementation andsustained improvements of the detailed environmental
initiatives and targets set forth in our Environmental Action
Plan. To give our environmental strategy a more prominentrole in our management strategy, we revise theEnvironmental Action Plan every three years to align it with
the Mid-term Management Plan for the Hitachi Group.
In keeping with the 2018 Mid-term Management Plan,
which begins in fiscal 2016, we have formulated theEnvironmental Action Plan for 2018 with a view to further
reinforcing our environmental activities from a global
perspective. We will advance our environmental activities
over the next three years through fiscal 2018 under this plan.

Environmental Action Plan for 2018: Targets
Under the Environmental Action Plan for 2018, the following
main targets have been established for fiscal 2016, which isthe first year of the plan, and fiscal 2018, the final year.
Management
Fiscal 2016
targets

Final fiscal year(2018) targets

Items

Indicators

Strengthen
globalenvironmental
management

Voluntary implementation of20%
environmental monitoring by
business units and Group companies
at overseas business sites(implementing sites/total targeted)

80% or higher(cumulative total)

Raise thelevel ofenvironmental
activities

Green points (GPs) under the
GREEN21-2018 environmental
activity index

240 GPs

480 GPs

Fiscal 2016
targetFinal fiscal year(2018) target

30%

40%

Products and Services
Item

Indicator

Improveenvironmental
performance

Rate of reduction in CO2 emissions
from use of products and services(base: FY 2010)

Factories and Offices: Prevent Global Warming
Item

Indicator

Reduceenergy use

Reduction in energy use per unit
(base: FY 2005)

Fiscal 2016
targetFinal fiscal year(2018) target

15%

17%

Factories and Offices: Use Resources Efficiently
Fiscal 2016
targets

Final fiscal year(2018) targets

Reduction in waste and valuables
generation per unit (base: FY 2005)

12%

14%

Reduction in water use per unit
(base: FY 2005)

23%

27%

Items

Indicators

Reduce waste
generation
Enhanceefficiency ofwater usage

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Hitachi Sustainability Report 2016

Management Approach

Activities
EnvironmentP romoting Environmental Management

Factories and Offices: Manage Chemical Substances
Item

Indicator

Reduceemissions ofchemical
substances

Reduction in atmospheric emissionsof chemical substances per unit
(base: FY 2006)

Fiscal 2016
targetFinal fiscal year(2018) target

34%

36%

Fiscal 2016
targetFinal fiscal year(2018) target

30

600

Ecosystem Preservation
Item

Indicator

Contribute to
ecosystem
preservation

New ecosystem preservation
activities implemented

Performance Data

Eco-Products has sufficiently taken root. To take ourenvironmental considerations to an even higher level, we
have formulated a new Environmentally Conscious Design
Assessment based on the IEC 62430*1 international
standard. Beginning in fiscal 2016, we will carry out
Environmentally Conscious Design Assessment on
products and services involving a design process in ourdesign and development activities.
*1 The standard developed by the International Electrotechnical Commission concerning
environmentally conscious design for electrical and electronic products.

Factories and Offices

Partnership with Stakeholders
Fiscal 2016
targetItem

Indicator

Make social
contributions
throughenvironmental
activities

Activities implemented in such areas 800
as environmental education,
information exchange, ecosystempreservation through afforestation,etc., community contribution
through cleanup projects, etc.,
campaigns to turn off lighting, andcommunity energy-saving activities

Final fiscal year(2018) target
2,400(cumulative total)

Products and Services
Hitachi will launch new initiatives in fiscal 2016 to help
address environmental issues through the development andpopularization of products and services of highenvironmental value.
Until now, we have been promoting the development
and expansion of environmentally conscious Eco-Products.
To turn environmental value into the creation and expansionof business opportunities, however, it is important to indicate
more clearly how this leads to added value for ourcustomers. This is why the Environmental Action Plan now
calls for improvements in the environmental performance ofHitachi products and services. The reduction rate of CO2
emissions from the use of our products and services and the
reduction rate of resource use over the life cycle of products
and services are now used as indicators for achieving both
functional improvements and reduced environmental burden
in products and services. We now seek to achieve a targetof a 40% reduction in CO2 emissions compared to fiscal
2010 levels by fiscal 2018 for products that contribute highly
to the resolution of environmental issues.
Thanks to the use of the Assessment for DfE (Designfor Environment) to evaluate the conformity of our products
and services with standards for environmentally conscious
design, moreover, the percentage of Eco-Product sales intotal product sales exceeded 95% in fiscal 2015. This is anindication that the initiative for environmentally conscious

Hitachi engages in efforts to reduce the environmental
burden of its operations through the efficient use of energy
and resources in the production process. We have created
key performance indicators (KPIs) for energy usage, as wellas to gauge our operational efficiency in terms of improved
ratios of waste volume, water usage, and atmosphericemissions of chemical substances per unit, and aresystematically working to achieve our targets while regularly
monitoring our progress in each of these areas.
In addition to continued efforts encouraging factories
and offices to have a high level of environmental
consciousness, the Environmental Action Plan for fiscal
2016 to 2018 includes new targets reflecting emerging
social concerns. By setting these targets, we aim topromote manufacturing activities with less environmental
burden on a global basis.
With respect to the target of mitigating global warming,
we will curb CO2 generation by installing more energyefficient equipment and increase renewable energy use. To
meet the target of making more effective use of resources,
and address environmental problems caused by natural
resource depletion and waste materials, we will work to
reduce the volume and promote the recycling of waste
generated by our business activities, thereby contributing to
the formation of a resource-efficient society. To deal withwater-associated risks, meanwhile, we will increase theefficiency of water usage by gaining an accurate grasp ofcurrent conditions and enhancing water risk management.
And for the target of appropriate management of chemical
substances, we will minimize emissions of substances that
affect humans and ecosystems by improving production
processes and switching to alternative substances. At
companies that have newly joined the Hitachi Group, we will
reduce their environmental burden and promote
environmentally conscious production by sharing thesegoals with them and applying the goals to their operations.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Enhancing Environmental Management on an Ongoing Basis

Enhancing Environmental Management on an Ongoing Basis
Hitachi’s Approach

Environmental Management

To lay the groundwork for strategic environmental
management, the Hitachi Group needs to establish andcontinuously improve systems to reduce the environmental
burden of its business operations. Based on a number ofcertifications and guidelines, including ISO 14001, we havedeveloped Group-wide environmental management systems
that allow us to gauge the environmental burden of ourbusiness activities and steadily implement a PDCA (plan, do,check, act) cycle to reduce that burden. We also have inplace a global environmental management framework, underwhich we evaluate our environmental activities and keep
close track of our environmental performance.

Environmental Management Framework
Our global environmental management system supports
environmental decision making and implementation at
Hitachi, Ltd. and 1,056 consolidated subsidiaries (a total of
1,057 companies), as well as 249 equity-method affiliates.
The CSR and Environmental Strategy Division is
responsible for developing Group-wide environmental
policies. The Senior Executive Committee, which is chairedby the president of Hitachi, Ltd., considers important items
related to environmental initiatives. The Environmental
Strategy Officers Meeting, comprising representatives frombusiness units and major Group companies, ensures thatthe Hitachi Group Environmental Action Plan approved by
the executive officer in charge of environmental concerns is
implemented throughout the Group. The Environmental
Committee and committees of working-level experts foreach policy area develop targets and ways to achieve them,as well as promote initiatives to be carried out by the Group
as a whole. Outside Japan, we assign regional specialists toreport on the progress of the Environmental Action Plan andshare information on the latest environmental regulations
while exchanging views on local environmental issues withineach region.

Hitachi’s Environmental Management Framework (FY 2016)
President

Executive officer in charge of environmental matters

Senior Executive Committee for Environmental Policy

Environmental Strategy Officers Meeting

CSR and Environmental Strategy Division

Environmental Committee

Hitachi, Ltd. Business Units
Environmental Strategy Officers
Environmental Promotion Departments

Eco-Management Committee

Business Sites
Division Heads
Environmental Management Officers

Group Companies
Presidents
Environmental Management Officers
Regional
Environmental
Network Meetings

Eco-Business Committee
Eco-Factory Committee
Major Group Companies
Environmental Strategy Officers
Environmental Promotion Departments

Business Sites
Division Heads
Environmental Management Officers

Group Companies
Presidents
Environmental Management Officers

Regional Specialists(Europe, the Americas, China, and the Rest of Asia)
Hitachi, Ltd. and 1,056 consolidated subsidiaries (a total of 1,057 companies) and 249 equity-method affiliates.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Enhancing Environmental Management on an Ongoing Basis

Building Environmental Management Systems
We have established environmental management criteria toensure efficient management of each business site’senvironmental load. There are approximately 250 businesssites that meet these criteria, and these, together with the
CSR and Environmental Strategy Division, have developedand implemented the Hitachi Group Environmental
Promotion Organization EMS (environmental management
system) to promote the consistent implementation ofenvironmental policies. At the same time, every businesssite meeting the criteria for environmental management
continues to maintain ISO 14001 certification. Certificationis also being pursued at business sites that do not yet meetthe criteria.

Japan

Outside Japan
137

Environmental Activity Evaluation System
We use our own evaluation system, GREEN 21, to improve
the level and quality of our environmental activities. It divides
environmental activities into eight categories and evaluatesachievements and progress toward Action Plan targets by
rating 52 items on a scale from 1 to 5. A perfect score forany category is 100 green points (GPs). We surpassed our
fiscal 2015 target of 640 GPs with a score of 646 GPs.
Starting in fiscal 2016, the system was revised to 47
items under six categories. Our aim is to improve ourenvironmental activities based on the target of 240 GPs
under the revised system.
Key Indicators
Green Point (GP) Average: FY 2015 Targets and Results
FY 2015 target: 640 GPs
FY 2015 result: 646 GPs

Status of ISO 14001 Certifications (as of April 2016)
Number of Certified Sites*1

Performance Data

Total

137

1 Eco-Management Environmental Management

86 GPs274
100*1 Including companies with more than one certified business site.

2 Eco-Management

8 Worldwide Environmental

Americas16Europe14

China
57
Rest of
Asia
50

Japan
137

Partnerships
80 GPs50

Product/Service Strategy
84 GPs7 Eco-Factories

0

3 Eco-Management

Supply Chain
82 GPsResource Recycling
75 GPs6 Eco-Factories Global

4 Eco-Mind

Warming Prevention
71 GPs83 GPs5 Eco-Products

85 GPsList of ISO 14001-certified sites

Categories and Evaluation Items
1 Environmental management,

Monitoring Environmental Performance Data
For effective environmental management, we collect data on
the environmental performance of business operations using
the Environmental Load Evaluation System.
This system collects environmental load data from some250 Hitachi business sites worldwide on items such asenergy use, CO2 emissions, and waste generation, together
with information on awards received and other items. By
analyzing this information we identify environmental
management issues, share instructive examples within theGroup, and improve environmental practices. Specifically,
we collect and analyze environmental performance data in
the key areas of energy, waste materials, water, and volatileorganic compounds (VOCs) monthly and quarterly so that
performance levels can be further increased.

environmental accounting, andcompliance with laws and regulations
2 Progress toward goal of reducing CO2
emissions; environment businessstrategies
3 Gathering and communicating
environmental information across the
supply chain
4 Environmental education and training ofenvironmental experts

5 Assessment of products and services
6 CO2 emission reductions, energy

efficiency improvements, and energy
savings in transportation
7 Resource recycling and chemical
substances management
8 Information disclosure, communication
activities, global citizenship activities,
and ecosystem preservation

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Enhancing Environmental Management on an Ongoing Basis

Next Steps

Environmental Education Initiatives
Promoting Environmental Education
Promoting greater environmental awareness andunderstanding among our employees is essential to Hitachi’seffort to energize its environmental activities. Toward that end,
we are advancing our environmental education. Hitachi Group
training is being implemented for all Group employees,
starting from newly hired workers to working-level employees.
The training covers a wide range of topics, from basic
courses to such specific issues as environmental risks andcompliance with environment-related laws and regulations.

From fiscal 2016, we will continue with environmental
education training across all our global operations toenhance the knowledge and skills of staff in charge offactory management. We will also be holding training
programs so that we can fully respond to the new standards
during the period of transition between the announcement of
the revisions to the ISO 14001 Environmental Management
Systems in fiscal 2015 and September 2018.

Environmental Compliance

Actions and Achievements

Environmental Compliance Response

In fiscal 2015 we provided basic environmental management
courses for employees working in air, water, and waste
management, as well as training in recent amendments tolaws and operational procedures.
In order to respond to the new environmental
management standards (ISO 14001) revised in September,during the three-year transition to those standards,
explanatory meetings for the internal auditors of the HitachiGroup were held to deepen understanding of the revisions.
The meeting held in Japan was attended by 184 internal
auditors from 68 Group companies, while 52 internal
auditors from 36 Group companies attended the meeting in
Chengdu, China. In addition to Hitachi Group training,
individual companies and units provide education tailored totheir own business area. For general education, we offer
Internet-based e-learning courses in Japanese, English, andChinese. To date 178,035 employees worldwide, equaling
96.4% of target employees, have taken this course.

Hitachi considers the environmental burden of all businessactivities and sets voluntary management criteria that are
more stringent than regulatory requirements. We regularly
monitor water quality, noise levels, and other conditions at
each business site and work to minimize environmental
risks. In addition, we take every possible step to prevent
problems or their recurrence and to strengthen controls by
sharing information on environmental laws and regulations,as well as examples of infringements, throughout the Group.

Environmental Education and Training System

Global Notices and Complaints

TargetIntroductory

Beginning

Intermediate

General education
Specialized education

Online e-learning: Eco-Mind
education (General topics: Global
environmental issues,environmental law, etc.)

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

Risk communicator training
Brush-up training for ISO 14001
ISO 14001
auditorcertification
training

3

1

Waste
matter1

Complaints

Other(facilities, etc.)

4

3

To help prevent pollution of soil and groundwater, we
are working to complete decontamination of soil and waterat business sites where chemical substances have beenused or to confirm that they are contamination free. At
other business sites, we continue to carry out cleaning andobservation activities as needed.

Eco-Product development training

Internal
environmental
auditors

Water quality Air quality
Fiscal 2015
cases

Online e-learning: Eco-Mind
education (Hitachi Group topics:
Environmental policy,
Environmental Action Plan, etc.)

Working-level
employees

In fiscal 2015, we received a worldwide total of 12 notices
concerning water quality, air quality, or waste matter andcomplaints about noise or odors, all of which were
promptly addressed.
Hitachi continues to implement enhanced
environmental management in order to prevent repeated or
new contamination occurrences.

Advanced

Introductory training for new
employees

All employees

Actions and Achievements

ISO 14001
senior auditor
certification
training

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Enhancing Environmental Management on an Ongoing Basis

Environmental Load
Data on Environmental Load from Operations (FY 2015)
The data below shows the resource inputs and the environmental load for Hitachi Group operations in fiscal 2015.
Total Input of Resources

Total Output of Environmental Load
Products shipped: 3,064 kt (in Japan),
957 kt (outside Japan)

Total Energy Input

Greenhouse Gas Emissions

Energy consumption(crude oil equivalent) 1.58 million kL

Greenhouse gases

Outside Japan 28%

3,162 kt-CO2e*1

Outside Japan 32%

In Japan 72%

In Japan 68%

Electricity 82%

CO2 emissions 98%

Gas 12%Other GHGs 2%

Fuel oil 6%

Total Volume ofWaste and Valuables

Total Input of Materials
Materials

2,134 kt

Waste and valuables generation

Outside Japan 36%

618 ktOutside Japan 32%

Operations

In Japan 64%

In Japan 68%

Metals 77%

Recycle 84%

Plastics 7%

Waste reduction 9%

Rubber 1%

Landfill 7%

Other materials 15%

Total Volume of Water
Effluents Discharged

Total Water Input
Water use

43.91 million m3

Wastewater

43.30 million m3

Outside Japan 13%

Outside Japan 12%

In Japan 87%

In Japan 88%

Industrial water 46%

Public water 63%

Tap water 13%
Groundwater, etc. 41%

Water recycling
In Japan:
34.44 million m3
Outside Japan:
2.16 million m3*1 CO2e: CO2 equivalent.

Sewerage 22%
Undergroundinfiltration, etc. 15%

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Enhancing Environmental Management on an Ongoing Basis

Detailed Data on Resource Input and Environmental Load Output
Total Input of Resources
Total resources input from Hitachi Group operations.
Total Energy Input
Electricity
Gas

Energy consumption: (crude oil equivalent) 1.58 million kL

Natural gas
LPG, LNG, etc.

Fuel oil (heavy oil, kerosene, etc.)

In Japan
Outside Japan
3.7 billion kWh (36 PJ)
1.4 billion kWh (14 PJ)
0.06 billion m3 (2.7 PJ)
0.05 billion m3 (2.2 PJ)
45 kt (2.3 PJ)
11 kt (0.6 PJ)
81 thousand kL (3 PJ)
4 thousand kL (0.1 PJ)

Total Input of Materials

Materials: 2,134 kt
In Japan

MetalsPlastics
RubberOther materials
Chemicals

Outside Japan
1,005 kt
107 kt5 kt
249 kt155 kt11 t3,655 tPRTR substances*1 handled
Ozone-depleting substances handled
Greenhouse gas substances handled

633 kt
42 kt
15 kt
78 kt
22 kt
0t
136 t

*1 PRTR substances: The 462 chemicals designated in Japan’s Pollutant Release and Transfer Register (PRTR) Law.

Total Water Input

Water use: 43.91 million m3
In JapanTap waterIndustrial water
Groundwater, etc.

Outside Japan
4.17 million m3
17.65 million m3
16.41 million m3

1.48 million m3
2.48 million m3
1.72 million m3

Total Output of Environmental Load
Environmental load output from Hitachi Group operations.
Greenhouse Gas EmissionsGreenhouse gases: 3,162 kt-CO2e
In JapanCO2 emissions
Other GHGs

SF6 (sulfur hexafluoride)
PFCs (perfluorocarbons)
HFCs (hydrofluorocarbons)
N2O, NF3, CH4

Total Volume of Waste and ValuablesOutside Japan
2,090 kt-CO2e
33 kt-CO2e
1 kt-CO2e
14 kt-CO2e
1 kt-CO2e

Waste and valuables generation: 618 kt
In Japan

Waste reduction
Recycling

Outside Japan
49 kt
363 kt2 kt
351 kt
10 kt
8 kt
4 kt
41 thousand Nm3
262 thousand Nm3
1 t (0t-ODP*1)

Reuse
Materials recycled
Thermal recovery
Landfill
Chemicals

995 kt-CO2e
23 kt-CO2e
3 kt-CO2e
2 kt-CO2e
0 kt-CO2e

PRTR substances discharged or transferred
SOx (sulfur oxides)
NOx (nitrogen oxides)
Ozone-depleting substances emitted

4 kt
159 kt1 kt
155 kt3 kt
35 kt
0.4 kt9 thousand Nm3
88 thousand Nm3
0 t (0t-ODP)*1 ODP (ozone depletion potential): A coefficient derived by conversion into equivalent in metric tons of CFC-11 (trichlorofluoromethane).

Total Volume of Water Effluents Discharged

Water effluents discharged: 43.30 million m3
In JapanPublic water
Sewerage
Underground infiltration, etc.
Water quality

BOD (biochemical oxygen demand)
COD (chemical oxygen demand)

Outside Japan
26.74 million m3
5.30 million m3
5.99 million m3
210 t
125 t

0.62 million m3
4.07 million m3
0.59 million m3
223 t
607 t

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Enhancing Environmental Management on an Ongoing Basis

Environmental Load Through the Value Chain
Calculation of GHG Emissions Throughout the Value Chain
We calculate greenhouse gas (GHG) emissions throughout the entire value chain to more effectively reduce these emissions. As
over 90% of emissions come from use of the products we have sold, we worked to reduce emissions by developing Eco-Productsthat meet environmentally conscious criteria throughout their life cycle.
Categories of GHG Emissions in the Value Chain
Extraction companies, etc.
3Power plants, etc.

Fuel- and energy-related
activities not included in
SCOPE 1 and 2

Processors of intermediate
products

Indirect emissions due togeneration of purchased
energy (SCOPE 2)

10 Processing of sold productsElectricity and heating

Shipping companies

Suppliers
1

Purchased goods andservices

4

9Downstream transportationand distribution

In-house

Construction companies,
etc.
2

Product end users

Shipping companies

Upstream transportationand distribution

11 Use of sold products

Waste treatment companies
12 End-of-life treatment of soldCapital goods

products

Facilities andequipment

Direct emissions(SCOPE 1)
Waste materials

Users of leased assets
13 Downstream leased assets

Franchise members
14 Franchises

Investment destinations
Waste treatmentcompanies
5

Leasing companies
8

Upstream leased assets

Waste generation in
operations

SCOPE 1
Direct GHG emissions by thecompany

In-house:

Transportation companies,
etc.
6
7

SCOPE 2
Indirect emissions from electricity,heat, and steam supplied to andused by the company

15 Investments

Business travel
Employee commuting

SCOPE 3: Upstream

SCOPE 3: Downstream

Other indirect emissions not covered by SCOPE 1 and 2, such as
emissions by other entities related to the company’s activities

Within the scope of the company’s organizational boundaries. In principle, the scope of all business activities of the company itself and activities within or controlled by its
consolidated subsidiaries.
Upstream:
In principle, activities related to purchased products and services.
Downstream: In principle, activities related to sold products and services.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Enhancing Environmental Management on an Ongoing Basis

GHG Emissions Throughout the Hitachi Value Chain
Category

Description

Calculation Results(Mt-CO2e)

SCOPE 1*1
Direct emissions

Direct emissions from in-house fuel use and industrial processes

0.77 (0.3%)

Indirect emissions from production of electricity and heat purchased by thecompany

2.92 (1.1%)

SCOPE 2*2
Energy-related indirect emissions

SCOPE 3: Upstream (other indirect emissions)1

Purchased goods and services

Emissions from the resource extraction stage to the manufacturing stage,
including raw materials, parts, supplied products, and sales

8.61 (3.2%)

2

Capital goods

Emissions generated in the construction, manufacture, and shipping of thecompany’s own capital goods, such as equipment, devices, buildings,
facilities, and vehicles

1.38 (0.5%)

3

Fuel- and energy-related activities
not included in SCOPE 1 and 2

Emissions from procuring fuel necessary for electricity and other energy
production, including resource extraction, production, and shipping

0.24 (0.1%)

4

Upstream transportation anddistribution

Emissions from distribution of raw materials, parts, supplied products, andsales prior to delivery of materials to the company, as well as other
distribution activities of products for which the company bears the expense

0.18 (0.1%)

5

Waste generated in operations

Emissions from transportation, disposal, and treatment of waste generated in
the company’s operations

0.08 (0.0%)

6

Business travel

Emissions generated from fuel and electric power used by employees forbusiness travel

0.07 (0.0%)

7

Employee commuting

Emissions generated from fuel and electric power used in employee
commuting

0.07 (0.0%)

8

Upstream leased assets

Emissions from the operation of assets leased by the company, excluding
those counted in SCOPE 1 and 2

Included in SCOPE
1 and 2SCOPE 3: Downstream (other indirect emissions)
Emissions from transportation, storage, loading and unloading, and retailsales of products

0.01 (0.0%)

10 Processing of sold products

Emissions by downstream companies during processing of intermediate
products

N/A*3

11 Use of sold products

Emissions from use of products by end users, such as consumers andbusinesses

258.23 (94.6%)

12 End-of-life treatment of soldEmissions from transportation, waste disposal, and treatment of products by
end users, such as consumers and businesses

0.17 (0.1%)

13 Downstream leased assets

Emissions from operating assets owned by the reporting company as lessor
and leased to other entities

0.03 (0.0%)

14 Franchises

Emissions by franchises under SCOPE 1 and 2

15 Investments

Emissions related to management of investments

9

Downstream transportation anddistribution

products

Total

N/A
0.09 (0.0%)
272.85 (100%)

Note: Figures in parentheses are percentages of GHGs emitted throughout the value chain.
*1 Includes SF6, PFC, HFC, N2O, NF3, and CH4.
*2 The CO2 electrical power conversion factor used to calculate emissions uses the 2005 emission coefficients for individual countries publishedby the International Energy Agency (IEA) in the 2010 edition of CO2 Emissions from Fuel Combustion.
*3 Cannot be determined due to insufficient information on processing.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Enhancing Environmental Management on an Ongoing Basis

Environmental Accounting
Environmental Accounting
Hitachi has adopted and made public a set of environmental accounting procedures conforming to the Japanese Ministry of
the Environment’s Environmental Accounting Guidelines 2005. We have used the results of these procedures to raise theefficiency of our environmental investments and activities, more effectively allocating management resources to our ongoingenvironmental efforts.

Achievements
Environmental Investments, Environmental Protection Costs, and Economic Effects(billions of yen)
150

127.9

119.7

125

123.3
112.0

107.6

100
75
50

29.9

29.0
25

9.6

0
Environmental Investments

5.8

5.3
2011

Environmental Protection Costs

25.8

2012

15.2

4.5
2013

2014

14.1

7.5
2015

（ FY ）

Environmental Protection Effects (Economic Effects)

Fiscal 2015 Environmental Investment by Countermeasure
Other

14.2%
Global Warming Prevention

34.1%

Pollution Prevention

49.1%

Waste Reduction

2.7%

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Enhancing Environmental Management on an Ongoing Basis

Environmental Investments
Costs (billions of yen)
Description
Total investment

Investment in energy-saving equipment andequipment that directly reduces
environmental load

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

9.61

5.28

5.81

4.46

7.50

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

Environmental Protection Costs
Costs (billions of yen)
Item

Description

Expenses
Business area

Maintenance costs for equipment with low
environmental load, depreciation, etc.*1

27.78

31.84

38.63

26.90

24.22

Upstream/downstream

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

1.43

1.38

1.27

1.09

0.97

Administration

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

8.25

7.67

6.77

6.47

5.97

Research anddevelopment

R&D to reduce environmental burdencaused by products and production
processes, product design expenses

79.81

84.71

75.62

76.12

75.71

Social activities

Planting, beautification, and otherenvironmental improvement expenses

0.45

0.41

0.51

0.36

0.45

Environmental
remediation

Environmental mitigation costs,
contributions, and charges

1.94

1.90

0.53

1.03

0.27

119.66127.91

123.33111.97107.59FY 2011

FY 2012FY 2013

FY 2014

FY 2015

Total*1 Equipment depreciation costs are calculated using the straight-line method over five years.

Environmental Protection Effects
Economic Effects*1
Costs (billions of yen)
Item

Major FY 2015 Activities

Net income effects

Recovering value from waste by sorting andrecycling

13.72

17.85

15.98

7.54

7.27

Reduced expenses effects

Installing high-efficiency equipment (lighting,power supply)

15.27

12.07

9.82

7.65

6.78

28.99

29.92

25.80

15.19

14.05

Total

*1 Economic effects include:
Net income effects:	Benefits with real incomes, including incomes from the sale of resalable materials and incomes from environmental
technology patents.
Reduced expenses effects: Reduction in electricity, waste treatment, and other expenses through environmental load reduction activities.

··

Physical Effects*1
Amount Reduced
Item

Major FY 2015 Activities

FY 2011

FY 2012FY 2013

FY 2014

Reduction in energy usedduring production

FY 2015

Installing LED lighting, upgrading airconditioning equipment, etc.

93
millionkWh107
millionkWh70
millionkWh68
millionkWh59
million
kWh

Reduction in landfilledwaste incurred during
production

Promoting sale of waste material, reducing
volume of liquid waste, recycling, etc.

4,754 t3,788 t2,420 t3,979 t5,498 t*1 As with depreciation costs, benefits from equipment investments are calculated using the straight-line method over five years.

Efficiency of Environmental Load Reduction*1
Item

FY 2011

FY 2012FY 2013

FY 2014

Efficiency of energy reduction efforts (million kWh/100 million yen)

2.0

1.7

1.3

1.2

1.2

Efficiency of landfilled waste reduction efforts (t/100 million yen)

183

146

95

166.7

194.6

*1 Environmental load reduction divided by reduction costs.

FY 2015

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Responding to Environmental Risks and Opportunities

Responding to Environmental Risks and Opportunities
Hitachi’s Approach
From abnormal weather conditions around the world
associated with global warming to resource depletion and lossof biodiversity, environmental risks that could seriously affectthe future of humanity and our planet are on the rise.
International calls are being made for measures to mitigate
these risks, as exemplified by the Paris Agreement adopted in2015 at the 21st Conference of the Parties (COP21) to theUnited Nations Framework Convention on Climate Change
and the Sustainable Development Goals (SDGs)—thecenterpiece of the 2030 Agenda for Sustainable Development,
adopted by the United Nations. Businesses, too, must
accurately ascertain the risks they face and the opportunities
that arise for the utilization of management resources.
Hitachi focuses on two particular environmental risks andopportunities—climate change and water resources—andpromotes initiatives to address them in a steadfast manner.

Climate Change: Risks and Opportunities
Engaging with the Risks and Opportunities of Climate
ChangeAccording to the Intergovernmental Panel on Climate
Change (IPCC), there is no room for doubt that our climate
is warming. The report states that the temperatures of theatmosphere and oceans are on the rise and that the volume
of snow and ice has declined. It also notes a heightened
tendency toward extreme climatic phenomena and indicatesthe strong possibility that such consequences of global
warming stem from the impact of human activities.
Hitachi recognizes the risks of climate change as a vitalmanagement issue. Seeing opportunities in the mitigation ofand adaptation to these risks—the former by reducing
greenhouse gases and the latter by changing how society
interacts with nature—we are working closely with ourcustomers and partners to promote our Social Innovation
Business, which fuses social infrastructure with information
technology to tackle the many challenges facing society.
Regulatory Risks and Opportunities
The environmental regulations and policies of countries andregions around the world include measures that affectbusiness activities at manufacturing sites, such as emissions
trading, carbon taxes, and energy efficiency standards, andthose that affect product and service conditions, such asenergy efficiency standards for products, carbon footprintlabeling, and the introduction of a feed-in tariff system forrenewable energy. We view these regulations and policies aspotential risks for the sustainability and growth of ourbusiness. At the same time, efforts in individual countries
and regions to reduce CO2 emissions are helping to expand
our business in the areas of energy-saving equipment andhigh-efficiency equipment and devices. Energy conservation
initiatives are growing to encompass entire cities, as
exemplified by smart cities. We will work to further expand
our business by providing environmentally conscious
solutions suited to the needs of each country or region.
Risks and Opportunities Presented by Physical Factors
Global warming is leading to extreme weather conditions,such as more powerful typhoons and heavier rainfall,causing natural disasters worldwide. Hitachi has had its
share of damage, including flooding of Southeast Asianbusiness sites and submersion of areas surrounding
business sites in Japan due to river embankments giving
way. We view the unavoidable damage that arises fromsuch disasters as risks that threaten the continuity of ourbusiness operations.
Meanwhile, in response to growing worldwide demand
for measures against natural disasters, business is
expanding for disaster-prevention information systems andother disaster-related products and services. Hitachi isusing the latest IT to analyze and evaluate the informationnecessary for people’s daily lives, nature-related
information concerning weather and other factors, andinformation on the operation of the social infrastructure inorder to provide solutions that contribute to appropriately
responding to climate change and help to create new
business opportunities.
Other Risks and Opportunities
Risks that could threaten the continuity of our business
operations might arise if our initiatives to tackle the global
issue of climate change are insufficient, such as the loss of
reputation and trust among stakeholders or the market
rejection of products and services that are notenvironmentally conscious. We believe that developing andmarketing Hitachi products and services with highenvironmental value is the way for us to help mitigate
climate change and also to increase the competitiveness of
those products and services, thereby contributing toincreased sales as well.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance DataR
 esponding to Environmental Risks and Opportunities,
Reducing the Environmental Burden of Our Business Operations (Fiscal 2015 Results)

Water-Related Risks and Opportunities
Activities for Water-Related Risks and Opportunities
The serious crisis confronting water—the source of all life—
is said to stem from increasing demand, rather than adecrease in supply. The growth in the human population has
pushed up water consumption, and people have adopted
lifestyles that lead to more water being wasted. Other
factors behind the crisis include the supplies of products
whose manufacture requires a large amount of water
consumption. For all of these reasons, people today areusing far greater quantities of water than their predecessors.
Along with water shortages due to rising populations
and other human causes, water-related risks also include
shortages stemming from natural disasters or flooding. But
whatever the causes, once such water-related problems

emerge and worsen, they can seriously hinder thecontinuity of business activities. Hitachi surveys thelocations of our various business sites to make sure thatour businesses operate in areas with few water-relatedrisks. We have ascertained the water consumption levels ofaround 700 of our business sites and have continued to
implement measures to reduce water consumption in orderto minimize these risks.
Hitachi has positioned its Water Solutions business asa key area within our Social Innovation Business. Thisbusiness is contributing to preserving and improving the
global water environment and creating business
opportunities through activities including seawater
desalination, the development of drinking water andsewage treatment systems, and the building of pumping
stations to foster vegetation in desert areas.

Reducing the Environmental Burden of Our Business Operations(Fiscal 2015 Results)
Hitachi’s Approach
We systematically promote efforts to reduce the environmental
burden of our business activities while adhering to a PDCA
cycle in line with our Group-wide environmental management
system. The targets and achievements of these efforts areconsolidated into our Environmental Action Plan, based on
which we strive for continuous improvements in priority areas.
The Environmental Action Plan for 2013 to 2015
encompassed many themes, such as promoting Eco-Products,
reducing CO2 emissions, and using resources efficiently. Three
years of improvement activities were concluded in fiscal 2015
with many positive results. In fiscal 2016 we are moving on to
the Environmental Action Plan for 2018. We will further engage
in environmental activities under the plan, not only taking into
account the achievements made over the previous three years
but also incorporating a more global perspective.
Environmental Action Plan for 2018

Environmental Action Plan for 2013 to 2015
Environmental Action Plan for 2013 to 2015:
Achievements
In fiscal 2015, the final year of the Environmental Action
Plan for 2013 to 2015, we were able to achieve our targets
for all items.
Shown in the tables below are the main indicators for
Hitachi’s environmental activities. Initiatives corresponding
to each indicator are introduced in the following pages.

Establish Environmental Management Systems
Fiscal 2015
targets

Fiscal 2015
results

Items

Indicators

Raise the level ofenvironmental
activities

GPs (green points) 640 GPs
in GREEN 21
Environmental
Activity Evaluation
System646 GPs

Ecosystem(biodiversity)preservation

Implementation of
ecosystem
preservationassessment

Completion of
ecosystem
preservationassessment

Completedecosystem
preservationassessment

Fiscal 2015
targets

Fiscal 2015
results

90%

95%

Achievement
level

Promote Eco-Products
Items

Indicators

Expand Hitachi
Eco-Productlineup

Percentage ofHitachi EcoProduct sales

Contribute to the
reduction of CO2
emissionsthrough products
and services

Number of models 340 models
in Eco-Products
Select program

409 models

Volume ofcontribution toCO2 emission
reductions
through products
and services

36.49 million
metric tons

35.0 million
metric tons
(100 million
metric tons by2025)

Achievement
level

Build Industry’s Most Advanced Factories and Offices
Item

Indicator

Promote EcoFactories &Offices Selectcertification

Eco-Factories &Offices Selectcertification

Fiscal 2015
targetFiscal 2015
results

Average of atleast 1
certification per
in-house orGroup company

Newcertifications: 15
Renewedcertifications: 58
Total: 73

Achievement
level

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Hitachi Sustainability Report 2016

Management Approach

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Environment

Reducing the Environmental Burden of Our Business Operations (Fiscal 2015 Results)

Prevent Global Warming
Item

Indicator

Reduce energy
use per unit

Reduction inenergy use perunit (base: FY
2005, global)

Fiscal 2015
targetFiscal 2015
results

15%

16%

Achievement
level

Fiscal 2015
targets

Fiscal 2015
results

Reduction in
waste andvaluables
generation perunit (base: FY
2005, global)

23%

28%

Reduction inwater use per unit
(base: FY 2005,
outside Japan)

30%

41%

Indicators

Reduce waste
and valuables
generation per
unit

Reduce water
use per unit

Achievement
level

Item

Indicator
Reduction in VOC
atmosphericemissions per unit
(base: FY 2006,
global)Hitachi’s Framework for Environmentally Conscious Products

Eco-Products
SelectProducts that meet
Design for Environment
assessment criteria

Manage Chemical Substances

Reduce volatileorganic
compound (VOC)
atmosphericemissions perunit

helping to resolve environmental issues by developing andexpanding the use of products and services with highenvironmental value.
Environmental Action Plan for 2018, Products and Services

Use Resources Efficiently
Items

Performance Data

Fiscal 2015
targetFiscal 2015
results

40%

50%

Eco-Products

Products meeting one ormore of the following criteria
Either a global warming
prevention factor or aresource factor of 10 or more
Industry-leading level forachieving an energy efficiency
standard or similar factor
Recipient of an award outside
Hitachi or officially certified forenvironmental excellence
CO2 emissions reduced by atleast 50% compared to fiscal
2005 products

Achievement
level

Products

Designation of Eco-Products

Global Citizenship Program
Item

Indicator

Fiscal 2015
targetFiscal 2015
results

Make social
contributions
throughenvironmental
activities

Promotion offlagshipenvironmental
communication
activity at eachin-house andGroup company

Implementationof at least 1
flagshipenvironmental
communication
activity percompany

Implemented atleast 1 activity
per company: Achieved

Achievementlevel: Partially achieved

Environmentally Conscious Products and Services

Designation of Eco-Products SelectActions and Achievements
In fiscal 2015, our Eco-Product sales ratio reached 95%,
and we increased the number of Eco-Products Selectmodels by 66, bringing the total to 409 products.
At business sites outside Japan—now with new designand development functions—we went ahead with a planned
approach to expanding the lineup of Eco-Products. This
included improving the eco-design skills of our designers.

Increasing the Ratio of Eco-Products
We promote the development of environmentally conscious
products called Eco-Products as part of our initiative to
reduce the environmental burden of our products andservices as much as possible.
Eco-Products must meet criteria used in the design anddevelopment stages, when we evaluate the extent to which
their environmental burden can be reduced. In addition,
Eco-Products that meet even more demanding requirements
are designated as Eco-Products Select. Until fiscal 2015, we
promoted the development of Eco-Products by setting
targets for raising the Eco-Product sales ratio, a figure
measuring Eco-Product sales against total product sales. In
fiscal 2016, we will launch new initiatives with the aim of

Key Indicators
Eco-Product Sales Ratio*1
(%)
100

89

93

95

2014

2015

75
50
25
0

2013

(FY)

*1 The ratio of Eco-Product sales to sales of all products, excluding elements whoseenvironmental impact Hitachi cannot control or influence, such as patent income.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Reducing the Environmental Burden of Our Business Operations (Fiscal 2015 Results)

Eco-Products Select(number of models)

409

450

343
300

210

150

0

2013

2014

2015

(FY)

Eco-Products by Business Segment (FY 2015 Sales Ratio)
Financial Services, Others

9%
Smart Life & Ecofriendly
Systems

Information &Telecommunication Systems

21%

4%
Automotive Systems

13%
High Functional Materials& Components

15%

Performance Data

Power Systems

7%
Social Infrastructure& Industrial Systems

16%

Construction Machinery

Electronic Systems & Equipment

8%

7%

Hitachi Products Helping to Reduce CO2 Emissions
In fiscal 2015, we expect to achieve a reduction in CO2emissions through products of 36.49 million metric tons,
better than our target of 35 million metric tons. Major
contributions to this achievement came from the products
and services of our Power Systems Company, Infrastructure
Systems Company, Information & Telecommunication
Systems Company, Hitachi Appliances, and Hitachi
Construction Machinery. We plan to continue working harderto develop and popularize other products that contribute to
CO2 emission reductions.
Calculation Methods for Environmental Load Data/Contribution of Hitachi
products and services to the reduction of CO2 emissions

Addressing Our Carbon Footprint
The carbon footprint of products (CFP) is the CO2
equivalent of the total amount of greenhouse gases (GHGs)
emitted over the entire life cycle of a product or service—from procurement of materials through to disposal andrecycling. Making the GHG emission amount visible in thisway encourages efforts to reduce the amount of carbon
emitted by products over their whole life cycle. A numberof countries around the world use the CFP approach.

Hitachi launched CFP assessment in 2009. We
participate in the Carbon Footprint Communication
Program of the Japan Environmental Management
Association for Industry (JEMAI) and are working to expand
the number of approved CFP Products.*1 In fiscal 2015,
our midrange storage systems, IP-PBX communication
systems, and OCR (optical character reader) scanners
were verified and approved by the JEMAI CFP Program. In
addition to visualizing CO2 emission amounts, we quantified
the rate of CO2 emission reductions per function*2 fromprevious models, publishing the quantitative effect of theirenergy efficiency in our catalogs and on our website andoffering explanations at product shows. We will makeefforts to capitalize on CFP as an added value for our
products in the future.
*1 Approved CFP Product: A product subjected to testing according to the CFP
quantification rules of the Carbon Footprint Communication Program, which also
passes the CFP quantification verification and undergoes the application process forregistration and public announcement.
*2 Specifically, the “life cycle GHG emissions per unit function amount,” calculated by
dividing “life cycle GHG emissions per sales unit” by “function amount of applicableproduct” as specified by performance (or performance characteristic) and/or use period.

Products authorized to display the CFP label in fiscal 2015
Product

Midrange storage

IP-PBX communication
OCR scanners
systems

Model

Hitachi Virtual Storage
Platform G200

MX-01 CCUB

HT-4165-48

MX900IP CCUB

HT-4139-48U

Product
appearance[Previousmodel]
Rate ofreduction inCO2emissions(compared
to previous
model)

Single unit (above)and multiple units
in rack. (Notintended to show
standard system
configuration.)

Hitachi Unified Storage
130

–48%

–13%

–27%

Working with European Environmental Footprint
Initiatives
The Product Environmental Footprint (PEF) and
Organisation Environmental Footprint (OEF) initiatives
develop methodologies for measuring the life cycle
environmental burden of products and organizations in up
to 15 areas. Three-year pilot studies were started in
November 2013 to establish assessment methods in
multiple product and organization fields.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Reducing the Environmental Burden of Our Business Operations (Fiscal 2015 Results)

Hitachi, drawing on experience with Japan’s Carbon
Footprint Communication Program and the knowledge
gained from calculating and visualizing CO2 emissions in
the IT product life cycle, is participating in a European
Environmental Footprint pilot study in the IT equipment
field, for which it serves as the technical secretariat.
In fiscal 2015, we established methods for evaluating
the environmental burden of IT products, which wereapproved by the European Commission. We also reviewed
possible means of disclosing and communicating theevaluation results to our stakeholders. At an October 2015
mid-term conference organized by the European
Commission for members of industry, government,
nongovernmental organizations, and the general public, wereported on developments and challenges in the pilot study
and took part in discussions toward their application toEuropean environmental policy.

Next Steps
Having achieved an Eco-Product sales ratio of 95%, ournext step in fiscal 2016 and beyond will be to develop andpopularize products with high environmental value throughour eco-design activities. We will enhance theenvironmental performance of our products and services
by promoting reductions in CO 2 emissions and resourceuse. Our aim in fiscal 2016 will be to achieve 30%
reductions in CO 2 emissions from the use of products andservices compared to fiscal 2010 levels. Moreover, we will
maintain the environmental consciousness of our products
by conducting an Environmentally Conscious Design
Assessment, created in compliance with IEC 62430, on
products and services that involve a design process.
Through these activities, we will strive to ensure that theenvironmental value of our products and services leads to
added value in ways that will help our business to grow,as well as work to contribute to the global environment byoffering products and services with low environmental
burden.

Environmental Considerations at Business Sites
Creating Eco-Factories & Offices SelectTo reduce the environmental burden of our business activities,
since fiscal 2011 we have implemented an Eco-Factories &Offices Select certification program for locations that promote
activities demonstrating a high level of environmental
consciousness and produce notable results in that area. This
helps raise the environmental awareness of employees andpromote environmentally conscious business activities.
Based on certification criteria that were developed forour manufacturing (factory) and nonmanufacturing (office)divisions globally, we certify existing factories that actively
engage in improvements to achieve efficient production andnew offices that have been environmentally designed fromthe start. To maintain and raise the level of environmental
awareness through Eco-Factories & Offices Select, certified
factories and offices are re-evaluated every fiscal year to
confirm that their performance continues to meetrequirements. In fiscal 2015, at least one factory or office
was certified at each in-house and Group company, with 15
facilities obtaining new certifications and 58 facilities having
their certifications renewed.
Eco-Factories & Offices Select Certification Criteria

Eco-Factories &Offices SelectFacilities that have
met their targets foreach fiscal year
under the GREEN
21 evaluation
system

Eco-Factories & Offices

Factories and Offices

Eco-Factories & Offices

An office or factory thathas met at least one of thefollowing criteria
Eco-Factory SelectEnergy efficiency
Renewable energy use
High-efficiency lighting
Recycling of waste andother resources
Efficient water recycling
VOC emission reduction
Eco-Office SelectHigh-efficiency lighting
Renewable energy use
Energy savings
Improved office building
environmental performance

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Activities
Environment

Performance Data

Reducing the Environmental Burden of Our Business Operations (Fiscal 2015 Results)

CO2 Emissions

Next Steps
In fiscal 2016 and beyond, we will continue our efforts to
expand the Eco-Factories & Offices Select program bypromoting more efficient energy use, waste recycling, andother measures in Group factories and offices, thereby
reducing the environmental burden of our business activities.

(kt-CO2e/year)
4,000

3,447

3,453

2011

2012

3,355

3,311

3,085

3,000
2,000
1,000

Environmental Action Plan for 2018, Factories and Offices
0Japan

Global Warming Countermeasures

Rest of Asia

2013
China

2014
Americas

2015

(FY)

EuropeBreakdown by Region (kt-CO2e/year)

Promoting Global Warming Countermeasures
We are promoting ways to use energy more efficiently andreduce GHG emissions during production and transportation,in both manufacturing and nonmanufacturing divisions, tohelp prevent global warming.

Actions and Achievements
We are working to reduce the energy use per unit as one
way to use energy more efficiently. In fiscal 2015, we
achieved a reduction of 16% (from fiscal 2005, the baseyear), surpassing the target of 15%. We are systematicallyworking to improve the energy efficiency of individual lighting
equipment and facilities by installing high-efficiency
equipment and devices, from LED lighting to inverter air
conditioners. In pursuit of more efficient energy use,
moreover, we are actively harnessing the control
technologies and IT systems that are our forte to conserve
energy at our factories and offices.
Key Indicators
Reduction in Energy Use per Unit

EuropeAmericas
China
Rest of Asia
Japan
Total

2011
7
295
287
357
2,501
3,447

2012
4
316
315
381
2,437
3,453

2013
4
321
332
375
2,323
3,355

2014
8
358
305
423
2,217
3,311

(FY)
2015
7
375
211
402
2,090
3,085

Notes:· Emissions are calculated based on the 2005 CO2 emission coefficients for electric powerby country published by the International Energy Agency in CO2 Emissions from Fuel
Combustion (2010 edition).
· Energy-related CO2 emissions were 660 kt-CO2e (Scope 1) and 2,425 kt-CO2e (Scope 2).

Introducing Renewable Energy
We are promoting the use of solar, wind power, and otherforms of renewable energy. During the 2015 fiscal year,
Hitachi produced 3,914 MWh of renewable energy for its own
use. Hitachi Computer Products (America), Inc. proactively
uses renewable energy to power its factory, purchasing 7,242
MWh during fiscal 2015. In Japan, we also contracted forGreen Power Certifications for 1,000 MWh/year throughJapan Natural Energy Company Limited, using these to cover
power generated for offices, showrooms, and exhibitions.

From base year

16%
reduction
FY 2005 (base year)
Energy used 1,746 ML
Activity amount*1

Green Power logo for Green Power Certification.

Reducing Transportation Energy Consumption

FY 2015100 %Energy used 1,581 ML
Activity amount84%*1 A value closely related to the emission factor numerators (environmental burden) ofenergy use from business activities (for example, production quantity, output, building
floor space, and number of employees).

Reductions in transportation energy consumption per unit
are reflected in the individual targets of each business unit
and Group company. This allows additional actions to betaken to further reduce energy consumption. Business sites
are promoting a modal shift to highly efficient transportation
methods, improving truck loading ratios and taking othermeasures to reduce transportation energy consumption, andswitching to the use of eco-cars. Hitachi is actively utilizing
rail transport for surface freight shipments of 500 km or
more, for which we have earned the Ministry of Land,
Infrastructure, Transport, and Tourism’s Eco Rail Mark.*1 CO2emissions from transportation inside Japan for the HitachiGroup in fiscal 2015 were 114 kt-CO2e.

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Environment

Performance Data

Reducing the Environmental Burden of Our Business Operations (Fiscal 2015 Results)

The Mito Works, a building systems business unit, istaking a range of measures to cut transportation energy
usage. These include improving the efficiency of its shippingand delivery network and reducing the distances andfrequency of transportation. In fiscal 2015, CO2 emissions
per unit were reduced by 69% compared with fiscal 2006.

Key Indicators
Reduction in Waste and Valuables Generated per Unit

From base year

28%
reduction*1 A mark conferred on products and businesses when a designated share of freightshipments are made by rail transport, which has low CO2 emissions.

FY 2005 (base year)

Activity amount

About the Eco Rail MarkFY 2015100 %Amount generated 782 kt

Amount generated 618 kt
Activity amount72%

Waste and Valuables Generated(kt/year)

Next Steps
As suppliers of products and services, Hitachi business sites
will continue to promote efficient energy usage andconsistently maintain a high level of improvement activities.
We will also contribute to the reduction of energy-related
emissions of CO2 and other GHGs by making maximum useof renewable energy. In pursuit of these targets, Hitachi
continually implements a PDCA (plan, do, check, act) cycle
and works to reduce GHG emissions.

800

701

655

692

677

618

600
400
200
0

2011

Japan

Rest of Asia

2012

2013
China

2014
Americas

2015

(FY)

EuropeBreakdown by Region (kt/year)

Efficient Use of Resources
Reducing Waste Generation and Promoting Product
Recycling
Resource-related problems arising from economic
development and population growth are universal
challenges, and measures are needed to cope with themass consumption of resources and mass generation ofwaste. To address these issues, Hitachi is working to reducethe volume and improve the recycling rates of waste
generated during production. We also promote the efficientuse of resources by collecting end-of-life products andreusing or recycling them.

Actions and Achievements
For fiscal 2015, we set a target of a 23% reduction (from thefiscal 2005 base year) for waste and valuables generated
per unit, bettering this by achieving a 28% reduction. Everybusiness site is reducing waste through onsite recycling of
byproducts and scrap from the production process andefforts to curb use of packing materials during transport.
Under the Zero Emission initiative, which seeks to minimize
landfill disposal, 111 business sites achieved their zero
emission goal*1 as of fiscal 2015.
*1 Defined as a final disposal rate (landfill disposal/waste and valuables) of less than 0.5%
in any given fiscal year.

Zero Emission Sites

EuropeAmericas
China
Rest of Asia
Japan
Total

2011
3
55
40
80
523
701

2012
1
58
38
80
478
655

2013
1
56
62
93
465
677

2014
2
67
54
106
463
692

(FY)
2015
1
63
36
98
420
618

Using IT for Managing Waste
Hitachi has developed a waste management system aimed
at more efficient processes and reduced compliance risk. In
Japan, we visualize the generation and disposal of waste
produced at our factories, offices, and contract operations
and manage data on waste contractors so that we can keep
accurate track of our progress in waste recycling. In fiscal
2015, entries were made to the system regarding waste
generated at approximately 2,600 locations in Japan. This
information is being put to use in measures to reduce waste
volume and improve recycling rates.
As of fiscal 2015, the e-manifest system*1 registration
rate for Hitachi Group business sites was 95%, surpassing
our target of boosting the registration rate to at least 90% by
fiscal 2015.
*1 The e-manifest is a document that waste generators must issue when commissioning adisposal company to handle waste disposal.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Reducing the Environmental Burden of Our Business Operations (Fiscal 2015 Results)

Waste Management System

Product Recycling Network
OfficeIntranet

E-manifest

Performance Data

Internet

Data link

Paper manifest
Valuable materials
General waste
Waste disposal
Contractor
Contract details

Hitachi Group
Environmental Load
Audit System

Hitachi Group Companies
Hitachi Group (Equity-Method Affiliates)
1 Home Appliance Recycling
2 IT Product Recycling
3 Financial Equipment Recycling
4 Industrial Equipment Recycling
5 Medical Equipment Recycling
Home Appliance Recycling Plants
Regional Business Partners

JWnet*1 e-manifest
Hokkaido Eco Recycle Systems
1 2 3 4 5Internet

Industrial waste
disposal company

Hitachi Industrial Equipment
Nakajo Engineering 3 5
Kanto Eco Recycle 1
Hitachi Capital Services (Osaka) 2 4

Hitachi CapitalServices (Tokyo) 2 4
Hitachi ICT Business
Services 2

Product Collection and Recycling*1 Hitachi Appliances, Inc., Sharp Corporation, Sony Corporation, Fujitsu General Limited,
and Mitsubishi Electric Corporation.

Tokyo Eco Recycle
1 2 4 5

*1 JWnet: The Japan Waste Network is an electronic manifest system operated by theJapan Industrial Waste Information Center under the auspices of Japan’s Ministry of theEnvironment.

In order to comply with the 2001 Home Appliance Recycling
Law, Hitachi has taken part in cooperative efforts by fivecompanies*1 in the same industry while recycling air
conditioners, televisions, refrigerators, and washingmachines at 18 recycling plants nationwide. In fiscal 2015,
we recycled around 56,000 metric tons of the roughly
63,000 tons of end-of-life products we collected.
Today we are building on our know-how in recycling
home appliances by creating a recycling network andexpanding collection and recycling programs to include IT
products like personal computers, servers, andcommunication equipment; industrial equipment including
pumps, motors, distribution boards, transformers,
refrigeration equipment, and machine tools; and industrial air
conditioners and medical equipment. In fiscal 2015, werecycled more than 9,000 tons of the roughly 10,000 tons of
the end-of-life IT products, industrial equipment, and otheritems we collected.

Nichiwa Service 4 5

Next Steps
With a focus on reducing the volume of waste generated,
Hitachi will take a range of measures to address wasterelated issues, such as conserving resources and reducing
product volume from the design stage, recycling waste, andpromoting use of recycled resources. To counteract thecross-border movement of hazardous waste materials,
moreover, we will enhance our management of waste
contractors.
We will also promote the effective use of resources atboth the production and disposal stages of the product life
cycle by expanding our recycling network for end-of-life
products as well as the range of products that we collect.

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Reducing the Environmental Burden of Our Business Operations (Fiscal 2015 Results)

Water Use Outside Japan

Reducing Water Use(million m3/year)
12

Water Conservation
Issues related to water resources are diverse. They include
shortages of domestic- and agricultural-use water due topopulation growth, land subsidence from overuse ofgroundwater, and ecological destruction from wastewater.
Hitachi uses water in such production processes ascleaning, cooling, and painting. To reduce water use throughgreater efficiency, we are enhancing our level of water
management by installing flow meters at more locations,introducing wastewater treatment devices to increase theuse of recycled water, and upgrading water supply facilities
at our business sites.
Different countries and regions are affected by waterrelated issues in different ways. Recognizing the importanceof devising measures suited to each region, we will tackle
these issues by establishing region-specific targets.

9

9.88

8.91

7.37

7.17
5.68

6
3
0

2011

Rest of Asia

2012

China

2013
Americas

2014

2015

(FY)

EuropeBreakdown by Region (million m3/year)

EuropeAmericas
China
Rest of Asia
Total

2011
0.03
2.35
2.92
3.61
8.91

2012
0.03
3.15
2.85
3.85
9.88

2013
0.02
1.20
2.50
3.65
7.37

2014
0.02
0.98
2.32
3.85
7.17

(FY)
2015
0.01
0.89
1.22
3.56
5.68

Actions and Achievements

Next Steps

In fiscal 2015, we set a target for our business sites outside
Japan of a 30% reduction (over the fiscal 2005 base year) forwater use per unit and achieved a 41% reduction. A growing
portion of our production takes place outside Japan, and weare promoting efficient use of water through conservationworldwide. To accurately grasp water-related risks in eachregion, we conducted surveys at 283 business sites aroundthe world on levels of water stress (an index of scarcity ofwater relative to demand), water intake volume per source,
and wastewater volume per discharge destination.

Hitachi will continue appropriately managing its water usage
related to business activities, promoting effective use of thisresource. We will also ascertain water-related risks on an
ongoing basis in each region and take measures that areappropriate for that region’s water environment.

From base year

41%
reduction
FY 2005 (base year)

Activity amountManaging Chemical Substances
In fiscal 2005, Hitachi formulated the Regulations forEnvironmental CSR-Compliant Monozukuri to manage thechemical substances contained in its products at all stages—
from development and design, procurement, and production
to quality assurance and sales. With regard to chemical
substances used in our business operations, we manage risk
by assigning three ranks to the use of such substances:prohibition, reduction, and control. We also reduce risk by
educating chemical substance handlers and managers onlaws and regulations and on proper risk assessment.

Key Indicators
Reduction in Water Use per Unit (Outside Japan)

Amount used 8.89 million m3

Chemical Substances

FY 2015100 %Amount used 5.68 million m3
Activity amount

59%

Managing Chemical Substances in Our Products
To ensure compliance with European REACH*1 and otherregulations, we continuously revise the list of chemical
substances in our products that are to be managed. In
October 2015, we modified the list of Voluntarily Controlled
Chemical Substances so that now 18 prohibited substances(Level 1) and 27 controlled substances (Level 2) are listed. In
compliance with Europe’s REACH regulation, we submitted
reports on the use of particular substances in parts and final
products by the June and December 2015 deadlines.
*1 REACH regulation: The European Union regulation on Registration, Evaluation,
Authorization, and Restriction of Chemicals.

Hitachi Group’s Voluntarily Controlled Chemical Substances

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Reducing the Environmental Burden of Our Business Operations (Fiscal 2015 Results)

Working with the Supply Chain to Manage Chemical
Substances
Working closely with suppliers and customers, we gather
and make available information on chemical substancesacross the supply chain via the Integrated Management
System for Chemical Substances Contained in Products,
which has been in operation since fiscal 2005. As of March
31, 2016, chemical substance information for more than
1.27 million parts and products was registered under thisintegrated management system.
Integrated Management System for Chemical Substances
Contained in Products

local governments for each office or plant. Although some
substances are exempt from reporting due to their small
quantities, our policy is to keep data on the handling,
emission, and transfer of all PRTR substances of 10
kilograms or more per year, recognizing the need to control
these substances as well.
*1 Emissions of SOx and NOx: Calculated as the product of concentration and exhaust
air-flow rate.

Key Indicators for Chemical Substance Management
Reduction in VOC Atmospheric Emissions per Unit

Suppliers

From FY 2006

50

Environmental information%
reduction

Survey/register

Integrated Management System for Chemical Substances
Contained in Products
Registration database

Collection database

Manage amounts of designatedchemical substances in a productby material and part

Manage total amounts ofdesignated chemical substancesby product and business

FY 2006 (base year)

FY 2015

100 %Emissions 6,863 t
Activity amountFY 2015(from base year)

50%

Emissions 3,615 t
Activity amountJapan

Outside Japan

Overall

29%

21%

50%

Communicate

Reducing VOC Atmospheric Emissions
Customer/society(t/year)
5,000

Environmental information
disclosure

4,285

4,127

4,415

4,216

3,615

4,000
3,000

Managing Chemical Substances in Our Business
Operations
As for the management of chemical substances emitted
from our factories and other sites, we are cutting emissionsof 41 volatile organic compounds (VOCs) that we havedesignated with an eye to preventing air pollution. Initiatives
in fiscal 2015 to reduce VOC emissions included switchingfrom paints containing VOCs to water-soluble and powder
paints, expanding the use of stainless steel requiring no
coating and plated sheet steel chassis, and altering washingprocesses. We successfully achieved our targets throughthese initiatives. Information on successful efforts istranslated into English and Chinese and shared globally with
Hitachi Group members. We also monitor and manage
emissions of sulfur oxides (SOx) and nitrogen oxides (NOx),*1
which are required to be measured under the laws andregulations applicable at our business locations.
We comply with Japan’s Pollutant Release and Transfer
Register (PRTR) Law through Group-wide monitoring ofchemical substances released into the atmosphere or into
public waters, removed outside our plants as waste, ordischarged into sewage systems, reporting the results to

2,000
1,000
0
Japan

2011

2012

Rest of Asia

2013
China

2014
Americas

2015

(FY)

EuropeBreakdown by Region (t/year)

EuropeAmericas
China
Rest of Asia
Japan
Total

2011
28
62
427
232
3,536
4,285

2012
6
53
273
346
3,449
4,127

2013
8
76
372
447
3,313
4,216

2014
12
66
281
604
3,452
4,415

(FY)
2015
9
113
199
373
2,921
3,615

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance DataR
 educing the Environmental Burden of Our Business Operations (Fiscal 2015 Results),
Preserving Ecosystems

The CEGNET Chemical Substance Management System
To ensure the proper management of chemical substancesused in its business operations, since 1998 Hitachi has
operated a database for chemical substance management
called CEGNET to keep track of the latest laws andregulations and the company’s own voluntary regulations.
CEGNET also collects and aggregates data on theamount of chemical substances handled, emitted, andtransferred in our operations, helping to reduce the volumeof chemicals that we handle.

PCB-containing waste. Waste materials containing PCBs
stored at 39 business sites were treated in fiscal 2015; weare aiming to complete the treatment process ahead of the2027 deadline set by Japan’s Act on Special Measures
Concerning Promotion of Proper Treatment of PCB Wastes.

Chemical Substance Management System (CEGNET)
Regulatory/Voluntary
Control Information

New Chemical Risk
Searches

Chemical Data

Network

Registration of Amounts
Handled/Data Collection

Production Facilities

Managing Storage of Equipment Containing PCBs
In Japan, we gather and manage information on storing andhandling equipment that uses polychlorinated biphenyls(PCBs) every year and promote the efficient and thoroughtreatment of these units. Waste materials with high PCB
concentrations are subject to a treatment program based onrequirements set by the national government of Japan, andwaste materials with low PCB concentrations are also
processed by treatment companies that have been certified
and have the capacity to handle them. Thanks to these
efforts, we are successfully reducing the stored amount of

Disposing of waste materials (large transformers)
containing PCBs.

Next Steps
In fiscal 2016, with our shift to a new Environmental Action
Plan, we will review our list of targeted substances andcontinue with our emission-reduction initiatives.
In connection with Europe’s REACH regulation, we willcontinue our checks and preparations in the lead-up to thenext round of notification deadlines.

Preserving Ecosystems
Hitachi’s Approach
Various forms of development accompanying economic
growth and urbanization around the world have led toenvironmental degradation and pollution, the overuse ofnatural resources, and threats to biodiversity. Hitachi
believes that preserving ecosystems for diverse livingorganisms is vital to ensuring that biodiversity—a precious
asset—will remain intact for future generations. We are
reducing the burden on the ecosystem from the perspectiveof the entire life cycle of products and striving to produce
things in a way that does not damage the ecosystem. We
are also promoting Group-wide activities that contribute topreserving ecosystems.

Preserving Ecosystems
Initiatives to Preserve Ecosystems
An important aim of our Environmental Action Plan for 2013
to 2015 was to carry out the Business Assessment on the
Preservation of Ecosystems. We were also active outside thecompany, such as participating in the biodiversity working
group of four Japanese electrical and electronic industry
associations*1 and the Japan Business Initiative for
Biodiversity (JBIB). We continue to raise awareness andknowledge within Hitachi and to promote ecosystem

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Hitachi Sustainability Report 2016

Management Approach

Activities
Environment

Performance Data

Preserving Ecosystems

preservation throughout the entire Group while laying the
groundwork for environmental programs through activities
outside the company.
*1 The Japan Electrical Manufacturers’ Association (JEMA), Japan Electronics andInformation Technology Industries Association (JEITA), Communications and Information
Network Association of Japan (CIAJ), and Japan Business Machine and Information
System Industries Association (JBMIA).

The biodiversity working groupJapan Business Initiative for Biodiversity

Corporate Relationship with Ecosystems
Corporations depend on “ecosystem services,” including thenatural supply of materials like fibers and wood, and theability of ecosystems to maintain the quality and quantity of
air, water, and soil. Contributing to ecosystem preservation
through both business and social activities enables
companies to continue receiving these benefits and torestore ecosystems. Through its business activities, Hitachi
is promoting designs and production methods that reducethe impact on ecosystems throughout the product life cycle.
We are also increasing the number of products and services
for direct preservation of ecosystems, such as water
purification measures. We view chemical substancemanagement as part of ecosystem preservation andcontinually ensure that it is carried out correctly. To
contribute to society, we encourage employee volunteer
programs, such as tree planting and ecological surveys ofrare plants and animals, as well as other programs that
preserve ecosystems.
Corporations and Ecosystems

Encouraging Action to Preserve Ecosystems
The Hitachi Group Guide to Preservation of Ecosystems is a
guidebook issued to employees that outlines the relationshipbetween corporate activities and ecosystems, introduces
trends and examples of initiatives being taken around theworld, and makes recommendations. Since fiscal 2013, wehave also been implementing the Business Assessment on
the Preservation of Ecosystems every year in order todeepen employee understanding. The aim is to promote
initiatives that help to preserve ecosystems from a variety ofperspectives by conducting an assessment based on a totalof 53 criteria in eight different categories (such as“communication/education” and “design/development”), as
specified in the table. In fiscal 2015, the assessment was
conducted at around 211 Hitachi business sites (excluding
the headquarters of each company) both within and outside
Japan, with the participants conducting a self-assessment
regarding the results of activities over a three-year period.
Main Criteria and Overview of Assessment
Category

Assessment Overview

1

Communication/
Education

Understanding the gist and goals ofpreserving ecosystems throughbusiness activities

40%

2

Design/Development

Products that take ecosystems into
consideration17%

3

Procurement

Encouraging and educating suppliers
regarding initiatives to preserve
ecosystems

20%

4

Production

Reducing the environmental burden of
the manufacturing process

42%5Site management

Surveying ecosystems at business sites
and taking environmental issues into
consideration when building or
renovating structures at those sites

13%

6

Transportation/
Sales

Conserving energy use fortransportation and reducing use of
printed materials

20%

7

Collecting/
Recycling

Encouraging and educating wastetreatment firms regarding initiatives topreserve ecosystems

16%

8

Engagement

Contributing to society throughpartnerships with stakeholders

20%

Ecosystem Services

Ecosystems

Providing and regulating materials(fibers, wood, etc.) and water

Corporations

Contributions through business
Reducing the load on ecosystems
arising from corporate activities
Creating products and services
that preserve ecosystems
Contributing to society
through nature conservation

Production dependent on ecosystems
Minimizing negative impacts (reducing burden on ecosystems)
Expanding positive impacts (contributing to ecosystem preservation)

Share of BusinessSites that Enhanced
Initiatives Over
3-Year Period

No

Next Steps
In fiscal 2016, we created the “Ecosystem Preservation
Activities Menu” including the pioneering efforts being
carried out at companies and organizations outside the
Hitachi Group. We will continue with existing preservation
efforts and systematically add activities in accordance with
the new menu. As demonstrated by the addition of thenumber of new ecosystem preservation initiatives as a major
indicator in the Environmental Action Plan for 2018, theHitachi Group as a whole will make further efforts to promoteecosystem preservation.

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Management Approach

Activities

Performance Data

Per formance
Data
Key Indicators

94–95

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

96–97

Main Assessments and Awards

98–99

Independent Assurance

100

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data
Key Indicators

Key Indicators
The Key Indicators of Hitachi’s CSR activities are listed below. Comparative tables with the GRI Content Index, as well as
our Policy, Vision, and Guidelines, are only available on our website.

Comparative Tables with GRI Content Index
Policy, Vision, and Guidelines

Recognition of Social Responsibility
FY 2011

FY 2012FY 2013

FY 2014

FY 2015

Realizing Sustainable, Innovative Management
Ratio of R&D expenditure to revenue (%)

4.3

3.8

3.7

3.4

3.3

Number of R&D staff outside Japan

150

—

290

300

350

Patent application ratio outside Japan (%)

55

57

59

59

59

Boundary of Data
Hitachi, Ltd. and consolidated subsidiaries (including variable interest entities).
Number of companies: FY 2011: 940; FY 2012: 964; FY 2013: 948; FY 2014: 996; FY 2015: 1,057.

Labor Practices
FY 2011

FY 2012FY 2013

FY 2014

84:16

84:16

83:17

84:16

84:16

3,670
6.0%

3,727
6.4%

FY 2015

Promoting Diversity and Inclusion
Ratio of male and female employees*1 (%)
Number and global ratio of female managers
—

—

3,415
5.6%

2.00

2.02

2.02

2.03

2.08

Occupational accident rate*1

0.10

0.14

0.10

0.09

0.07

Occupational accident rate*3

0.15

0.19

0.14

0.27

0.22

239

257

340

446

509

1,064

1,202

747

720

674

Disabled employment ratio*1 (%)
Promoting Occupational Health and Safety*2

A Strategy for Growing Together with Our Global Human Capital*2
Number of non-Japanese employees
Number of young employees participating in
training outside Japan*4

Boundary of Data
*1 Hitachi, Ltd.
*2 January to December each year.
*3 90 major Hitachi Group companies in Japan including Hitachi, Ltd. through to 2011; 175 Hitachi Group companies inJapan including Hitachi, Ltd. for 2012; 195 Hitachi Group companies in Japan including Hitachi, Ltd. for 2013; 251
Hitachi Group companies in Japan including Hitachi, Ltd. for 2014; 240 Hitachi Group companies in Japan including
Hitachi, Ltd. for 2015.
*4 Hitachi, Ltd. and Group companies in Japan.

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Activities

Performance Data
Key Indicators

Environment
FY 2011

FY 2012FY 2013

FY 2014

FY 2015

Reducing the Environmental Burden of Our Business Operations
80

84

89

93

95

Contributions to CO2 emission reduction(million metric tons)

Eco-Product sales ratio (%)

19.04

22.74

27.47

32.19

36.49

CO2 emissions (kt-CO2e)

3,447

3,453

3,355

3,311

3,085

Waste and valuables generation (kt)

701

655

677

692

618

Water use (outside Japan) (million m3)

8.91

9.88

7.37

7.17

5.68

VOC atmospheric emissions (t)

4,285

4,127

4,216

4,415

3,615

Boundary of Data
Hitachi, Ltd. and consolidated subsidiaries.
Number of companies: FY 2011: 940; FY 2012: 964; FY 2013: 948; FY 2014: 996; FY 2015: 1,057.
Environmental performance data associated with Hitachi’s business operations: Hitachi, Ltd. andconsolidated subsidiaries whose environmental load comprises 90% of the total (based on Hitachicalculations); data for each fiscal year indicates performance within the given boundary for the fiscal year.

Fair Operating Practices
FY 2011

FY 2012FY 2013

FY 2014

FY 2015

Number of CSR monitoring (self-checks)

102

98

100

200

218

Number of audits supported by external
auditing organizations

—

12

16

20

20

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

Funding for social contribution activities*1(million yen)

—

—

1,806

1,218

889

Funding for social contribution activities*2(million yen)

3,471

3,284

3,076

2,327

2,057

Engaging in Responsible Procurement

Community Involvement and Development
Promoting Sustainable Community Involvement and Development

Boundary of Data
*1 Hitachi, Ltd. and the Hitachi Global Foundation.
*2 Through to fiscal 2014: Hitachi, Ltd. and 136 Group companies (including equity-method affiliates) and five foundationsin Japan, 199 companies outside Japan; for fiscal 2015: Hitachi, Ltd. and 136 Group companies (including equity-method
affiliates) and the Hitachi Global Foundation in Japan, 244 companies outside Japan.

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Hitachi Sustainability Report 2016

Management Approach

Activities

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

Overview of Financial Results, Board Members, andEmployee Data
An overview of the consolidated financial results, board members, and employee data is shown below.
Most data are Hitachi, Ltd. figures.

Financial Results (Consolidated IFRS)(billion yen)

Revenue

FY 2013

FY 2014

FY 2015

9,666.4

9,774.9

10,034.3
634.8
531.0
517.0
172.1
528.5
333.7

Adjusted operating income

604.7

641.3

EBIT*1

691.2

534.0

Income from continuing operations, before income taxes

678.4

518.9

Net income attributable to Hitachi, Ltd. stockholders

413.8

217.4

Capital investment (completion basis)

849.8

374.3

R&D spending

351.4

335.5

*1 EBIT: Income from continuing operations before income tax, less interest income, plus interest charges.

Board Members
GenderTotal

Nationality

Male

FemaleJapan

Outside Japan

Directors*1

13*2

11

2

8

5

Executive officers*1

35

35

0

33

2

FY 2015*1 As of June 2016.
*2 Including nine external directors (four from Japan and five from outside Japan).

Composition of Employees
FY 2011

FY 2012FY 2013

FY 2014

Number of employees*1

32,90833,66533,50031,37537,353Male

27,80528,43728,273

26,42831,536

Female

5,817

5,103

5,228

5,227

4,947

Ratio of female employees (%)

15.9

16.0

16.6

16.3

16.5

Average age (years)

40.0

40.2

40.7

41.0

41.2

Male

40.6

40.8

41.3

41.6

41.7

Female

36.8

37.1

37.6

38.0

38.4

Average service (years)

17.9

18.0

18.3

18.4

18.4

Male

18.6

18.7

19.0

19.0

19.0

Female

14.2

14.5

15.0

15.4

15.6

377
3.4%

401
3.5%

418
3.8%

434
3.7%

474
4.0%

General manager or above

54
1.9%

68
2.3%

77
2.7%

87
2.8%

104
3.2%

Section chief

323
4.0%

333
4.0%

341
4.3%

347
4.1%

370
4.3%

2.00

2.02

2.02

2.03

2.08

Number and ratio of female managers* 2

Employment ratio of people with disabilities (%)*3*1 Number of full-time employees.
*2 See Key Indicators for Group global figures.
*3 Data compiled in June of each fiscal year.

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Management Approach

Activities

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

Hiring Ratios
April 2012

April 2013

April 2014

April 2015

20.3

18.0

19.4

21.7

22.8

Technical

14.7

11.6

14.7

18.3

17.3

Administrative

43.9

43.4

43.4

41.0

45.5

FY 2012FY 2013

FY 2014

FY 2015

Ratio of new female graduates hired*1 (%)

April 2016

*1 Graduates from universities or colleges (including postgraduate schools and technical colleges).

Number of Employees Using Work-Life Balance Support Systems
FY 2011

Number of employees taking child care leave/spouse child care leave
Female

518

525

539

508

524

Male

224

245

238

236

307

Female

608

617

683

663

668

Male

6

8

5

4

3

Female

6

10

8

8

8

Male

6

7

12

9

9

Number of employees using shorter working hours for child care

Number of employees taking nursing care leave

Number of employees using shorter working hours for nursing care
Female

6

7

4

7

9

Male

2

3

2

3

3

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

Working Conditions
Paid leave
Average number of days

15.9

15.3

15.5

15.4

15.6

Ratio (%)

66.8

64.0

64.7

64.3

65.3

12.8

14.1

13.5

12.2

11.9

1

3

1

1

2

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

Average overtime hours/monthOccupational health and safety
Number of fatal accidents

Social Contribution Activities
Social contribution activities
Number of voluntary social contribution programs

32

34

43

39

38

Participants in voluntary social contribution programs

2,087

2,479

2,744

2,344

2,166

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data
Main Assessments and Awards

Main Assessments and Awards
Hitachi actively pursues a range of CSR activities aimed at developing a more sustainable society. These activities haveearned the Hitachi Group high marks from numerous external organizations.

Actively Integrating ESG
The Hitachi Group welcomes external assessments as atarget for ESG*1 and sustainability-oriented investment. For
seven years in a row since fiscal 2009, the Dow Jones
Sustainability World Index (DJSI World),*2 a leading global
sustainability investment index, has listed Hitachi, Ltd. as acomponent stock. RobecoSAM, which handles survey andanalysis for the DJSI listings, also gave its Bronze Class
designation to Hitachi, Ltd. in its 2015 CSR rankings. FourGroup companies (Hitachi Chemical Co., Ltd., Hitachi
Capital Corporation, Hitachi Construction Machinery Co.,
Ltd., and Hitachi High-Technologies Corporation) wereselected for the FTSE4Good Index Series.*3 Hitachi
Chemical, Hitachi Construction Machinery, Hitachi Metals,Ltd., Hitachi High-Technologies, and Hitachi Kokusai ElectricInc. were chosen for the Morningstar SRI Index,*4 with theGroup performing well overall in these external assessments.
Hitachi Chemical was also selected for the MSCI Global
Sustainability Indexes.*5*1 ESG stands for “environment,” “social,” and “governance”—key factors in promotingsocially responsible investment.
*2 DJSI: A family of ESG indexes developed by Dow Jones & Company (USA) andRobecoSAM (Switzerland) that includes global and regional indexes with specificcompositions. DJSI World, for example, selects on a global basis, while the DJSI Asia
Pacific Index covers Japan, Asia, and Australia.
*3 FTSE4Good Index Series: One of the indexes calculated by the London Stock
Exchange–owned FTSE Group that selects component stocks based on their ESG
performance, specifically environmental management, climate change mitigation,
human rights and workers’ rights, supply chain labor standards, and bribery andcorruption prevention.
*4 Morningstar SRI Index: An ESG index for Japanese stocks developed by Morningstar
Japan K.K. with the Center for Public Resources Development.
*5 MSCI Global Sustainability Indexes: A family of indexes developed by US-based Morgan
Stanley Capital International comprising companies with high ESG ratings relative tosector peers.

Results of ESG Analysis in Fiscal 2015
Institution

Index

Companies selected

RobecoSAM

Dow Jones
Sustainability
World Index

Hitachi, Ltd.

Hitachi, Ltd.
Dow Jones
Hitachi Chemical Co., Ltd.
Sustainability
Asia Pacific Index
FTSE GroupFTSE4Good
Index Series

Hitachi Chemical Co., Ltd.
Hitachi Capital Corporation
Hitachi Construction Machinery Co., Ltd.
Hitachi High-Technologies Corporation

Morningstar

SRI Index

Hitachi Chemical Co., Ltd.
Hitachi Construction Machinery Co., Ltd.
Hitachi Metals, Ltd.
Hitachi High-Technologies Corporation
Hitachi Kokusai Electric Inc.

MSCIMSCI Global
Sustainability
Indexes

Hitachi Chemical Co., Ltd.

Hitachi Selected for CDP Climate A List
Hitachi’s efforts to address climate change placed it in the
top 5% of global corporations surveyed by the nonprofit
organization CDP,*1 which selected Hitachi among 113
leading companies, including seven from Japan, for the A
List of its Global Climate Change Report 2015.
*1 CDP is an international NPO that provides a global system used to gauge, disclose,
manage, and share key environmental information on companies and cities. On behalfof 822 investors, representing $95 trillion in assets, CDP sends a survey on climatechange to corporations and then evaluates the results.

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data
Main Assessments and Awards

Nadeshiko Brand Designation
On March 16, 2016, Hitachi, Ltd. was selected as a 2016
Nadeshiko Brand, making it the third year in a row thecompany received the honor. Hitachi was recognized fordeveloping environments where women in management
positions are able to maximize their potential.
Since fiscal 2012, the Ministry of Economy, Trade,and Industry (METI) and the Tokyo Stock Exchange (TSE)have jointly selected, on an industry basis, enterprisesthat are considered to encourage women to play activeroles in the workplace. From fiscal 2015 selection wasincreased from among approximately 1,800 companies
listed on the first section of the TSE to around 3,500 firms
by including those listed on the TSE second section, theMothers index, and JASDAQ. Companies are assessed on
two factors: providing career support for women andsupporting women in balancing work and life. Of the top
scoring companies, those also meeting return on equity
requirements receive the Nadeshiko Brand designation.
Hitachi, Ltd. was one of 45 enterprises chosen in fiscal
2015, the fourth round of selections.

strategy backed by strong management commitment.
On March 18, 2015, Hitachi Group companies Hitachi
Transport System, Ltd. and Hitachi Solutions, Ltd. were chosen
also for the METI Diversity Management Selection 100.

Kurumin Certification
Kurumin certification is granted under Japan’s 2005 Act
on Advancement of Measures to Support Raising NextGeneration Children to companies that create action plansfor child care support in line with this legislation and thatmeet performance requirements. In February 2011, we
acquired this certification* 1 in recognition of ourachievements in developing and implementing actionplans supporting child care so that our employees canwork with the peace of mind that comes from a goodwork-life balance.
*1 Hitachi Group companies receiving Kurumin certification: Hitachi Capital Corporation,
Hitachi Construction Machinery Co., Ltd., Hitachi Kokusai Electric Inc., Hitachi HighTechnologies Corporation, Hitachi Transport System Ltd., Clarion Co., Ltd., Hitachi
Urban Investment, Ltd., Hitachi Systems Ltd., Hitachi Solutions, Ltd., Hitachi Maxell,Ltd., Hitachi SC, Ltd., Hitachi Solutions East Japan, Ltd., Hitachi INS Software, Ltd.,
Hitachi Government & Public Sector Systems, Ltd., Hitachi Architects & Engineers Co.,
Ltd, and Hitachi Aloka Medical, Ltd.

Diversity Management Selection 100
On March 22, 2013, Japan’s Ministry of Economy,
Trade, and Industry (METI) held a ceremony tocelebrate Diversity Management Selection 100.
Hitachi, Ltd. was one of 43 companies receiving
awards in Japan. The Diversity Management Selection
100 system chooses and recognizes companies that
achieve high results in such areas as improving
innovation and productivity by using the talents ofdiverse employees, including women, different
nationalities, older employees, and people withdisabilities. Hitachi was lauded for going beyond
simply introducing diversity programs to promote
diversity management Group-wide as a corporate

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Hitachi Sustainability Report 2016

Management Approach

Activities

Performance Data
Independent Assurance

Independent Assurance
To enhance the reliability of the data disclosed in the Hitachi Sustainability Report 2016, we have received independent
assurance of key environmental and social performance indicators by KPMG AZSA Sustainability Co., Ltd. The indicatorsthat were assured are marked with a.

The standards, guidelines, and calculation methods used in collecting environmental data are posted on our website.
Independent Assurance Report

Calculation methods for environmental load dataInquiries

CSR and Environmental Strategy Division
1-6-1 Marunouchi, Chiyoda-ku, Tokyo 100-8220, Japan
Tel: +81-3-4235-5800 Fax: +81-3-4235-5835
www.hitachi.com/csr/