Hitachi Group
Sustainability Report 2012 Digest

V A L U E

C R E A T I O N

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

Sustainability Report Editorial Policy

Basic Concept
The Hitachi Group Sustainability Report 2012 (issued in July 2012) presents basic policies, promotion systems, measures, and key
performance indicators on each initiative in keeping with reporting guidelines. This approach maintains honest and transparent
disclosure of information regarding fiscal 2011 initiatives and Hitachi’s stance in addressing social and environmental issues thatare vital to the sustainability of corporate management and society.
This Hitachi Group Sustainability Report 2012 Digest (issued in September 2012) summarizes and mainly reports Hitachi’s key
management issues.
Key Guidelines Referred to in Preparing this Report“Environmental Reporting Guidelines (FY2012 version)”, Ministry of the Environment, Japan“Environmental Reporting Guidelines 2001 – With Focus on Stakeholders,” Ministry of Economy, Trade and Industry, Japan“GRI Sustainability Reporting Guidelines (G3.1),” Global Reporting Initiatives“ISO 26000: 2010,” International Organization for Standardization
Scope of Reporting[Period] The main period covered is ﬁscal 2011 (April 1, 2011 to March 31, 2012)[Companies] Hitachi, Ltd. and 939 consolidated subsidiaries (including modiﬁed entities to which the equity method of consolidated reporting applies): total 940
companies[Scope of data]
Financial data Hitachi, Ltd. and 939 consolidated subsidiaries (including modiﬁed entities to which the equity method of consolidated reporting applies): total 940
companies and 183 affiliated companies that use the equity method
Social data Scope of data indicated under each item
Environmental data Hitachi, Ltd. and 939 consolidated subsidiaries (including modiﬁed entities to which the equity method of consolidated reporting applies): total
940 companies. However, for environmental load data generated through business operations, companies that cover 90% of the load (based on Hitachi calculations)
are included.
∙ The data for each ﬁscal year indicates the results according to the scope of data in that ﬁscal year.
∙ The base ﬁscal year data has been revised in accordance with the scope of data for ﬁscal 2011.

Disclosure of Financial and Non-Financial Information

Third-Party Assessments

Hitachi Ltd., referring closely to deliberations of the EU andInternational Integrated Reporting Consortium (IIRC) about
non-financial disclosure, presents information to match theneeds of stakeholders reading this report. While financial
information is in the Annual Report 2012, the Hitachi Group
Sustainability Report 2012 presents non-financial information and clarifies how sustainability issues relate to financial
activities. Up-to-date information is available on the HitachiGroup’s website.

To enhance the credibility of this report, we commissioned
third-party assessments of environmental, management,
and social performances in fiscal 2011. Bureau Veritas Japanassessed environmental performance. Ernst & Young Sustainability Co., Ltd., verified management and social performancebased on International Standard on Assurance Engagement(ISAE) 3000. The certification report is posted in the HitachiGroup Sustainability Report 2012 (PDF).

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

Initiatives That We Participate in
We have been a member of the United Nations Global Compact since February
2009 and the World Business Council for Sustainable Development (WBCSD)
since 1995.

Received 15th Green Reporting Award (sponsored by Toyo Keizai Inc. and theGreen Reporting Forum).

Contents

02

Hitachi Group Proﬁle04

TOP COMMITMENT Hiroaki Nakanishi, President, Hitachi, Ltd.

06

VISION Management Strategies and CSR
FEATURE08

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

16

Caring for the Environment
The Hitachi Environmental Vision / Long-Term Plan Environmental Vision 2025 /Increasing the Ratio of Eco-Products / Building a System for Visualizing Energy Use /Recycling Water Resources / Omika Smart Factory Project / Green Curtain Project /Participation at Exhibitions / Reducing the Environmental Burden of Business Activities

20

Respect for Human Rights
Human Rights Policies / Raising Awareness of Human Rights / Contributing to International Discussions

21

Supply Chain Management
Promoting Globalization / CSR Awareness and Supplier CSR Surveys /Response to the Conﬂict Minerals Issue

22

Diversity Management and Human Capital Strategy
Diversity Development Project / Global Human Capital Management Strategy

24

Public Policy Initiatives
Promotion Structure and External Relations / Strengthening Global External Relations /Stakeholder Dialogues
Management Information Disclosure / Report Media

Items Included in the Hitachi Group Sustainability Report 2012 (PDF)
The following items can be viewed on the website:
http://www.hitachi.com/csr/download/
Top Commitment
Hitachi’s Management Strategies and CSRManagement Report
Corporate Governance / CSR Management / Risk Management /Compliance / Innovation Management / Intellectual Property / Brand
Management
Environmental Report
Environmental Activities Worldwide / Corporate Environmental
Management Strategies and Initiatives / Environmentally Conscious
Products and Services / Environmentally Conscious Production /Environmental Management Framework and Communication

Social Report
Respect for Human Rights / Supply Chain Management / Diversity
Management / Public Policy Initiatives /Quality Assurance and Customer
Satisfaction / Communication with Shareholders and Investors / Employee
Health and Safety / Global Human Capital Development / Social
Contribution Activities
Comparative Table with GRI Guidelines
Comparative Table with ISO 26000 Core Subjects
Comparative Table with the UN Global Compact
Policy, Vision, and Guidelines
Major Results Data
Independent Assurance

Major CSR (Corporate Social Responsibility) Content on the Website
The CSR website has a full PDF version with details on our activities and the following content. The Environmental Activities website reports onenvironmental protection initiatives. The Global Community Relations and Activities website discloses social contribution activities.
Hitachi’s CSR Principles: Vision and Policies / Highlights: Spotlighting 2005 through 2011
Innovation Management* / Global Human Capital Development*/ Diversity Management / Quality Assurance Activities* / Employee Health and Safety* /Welfare / Supplementary Data for Environmental Report**Expanded version of Hitachi Group Sustainability Report 2012 (PDF)

Symbol Marks Used in This Booklet† Technical terms, proper nouns, etc., in the text requiring explanation* Additional explanation of terms, etc., in tables or diagrams
WEB Indicates the title and URL of the Web page related to the article. The Environmental Report (pages 16–19) can be accessed fromhttp://www.hitachi.com/environment/data/

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

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

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

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

Revenues
Operating income
11,226.7
10,000.3

10,0009,315.8

8,968.5

9,665.8

8,000

600
444.5

Revenues by Geographic Area (billions of yen)

02

2008

2009

2010

2011
(FY)

0

Information &Telecommunication Systems
1,764.2 (16%)

Financial Services
353.2 (3%)
Digital Media & Consumer Products
858.8 (8%)
Components & Devices
768.0 (7%)

Total Revenues byGeographic Area
9,665.8 billion yen

Automotive Systems
811.5 (8%)

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

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

2007

400
200

Others
951.6 (9%)

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

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

127.1

202.1

Revenues by Industry Segment (billions of yen)

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

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

412.2

345.5

2,000
0

1,000
800

6,000
4,000

Operating income(billions of yen)
1,200

Hitachi Group Profile

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

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

Construction
Machinery798.7 (7%)

Power Systems
832.4 (8%)

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

Electronic Systems & Equipment
1,101.7 (10%)

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

Enterprise storage platform*

Power Systems

Social Infrastructure & Industrial Systems

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

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

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

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

Hitachi High-Technologies’ FieldEmission Scanning Electron
Microscope

Hitachi Construction Machinery’s
land mine removal excavator

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

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

Hitachi Metals’ NEOMAX
neodymium sintered magnet

Components & Devices

Digital Media & Consumer Products

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

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

Financial Services

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

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

Others

Leasing, loan guarantees
Hitachi Capital Corporation

Hitachi Capital’s multifunctional
IC card

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

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

Hitachi Group Profile

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

03

TOP CO MMITME NT

Message from Management

Contributing to a Sustainable Society
as a Good Corporate Citizen

Realizing a Sustainable Society
In 2011 we faced many natural disasters, fromthe Great East Japan Earthquake to the ﬂoodingin Thailand and then the earthquakes in Turkey.
Hitachi City in Ibaraki Prefecture (northeast ofTokyo), Hitachi’s birthplace, was among the areas
heavily impacted by the March 11 quake, andour operations were damaged by the Thai ﬂoods.
Despite these setbacks, along with the accompanying disruption to our global supply chain, we
achieved solid business results. Our consolidatedﬁ scal 2011 statements showed record net income for04

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

TOP COMMITMENT

the second consecutive year. I would like to again
thank the many people who made this possible; we
owe our success to all stakeholders. Through lastyear’s experiences, we gained new awareness of theimportance of partnerships. In an age of diverse
values and rapid change, creating business withpartners is a true driver of growth. By thinking
deeply about what societies need and by cooperating with our partners, we aim for growth leading
to a new stage. At the same time, we continue
to foster mutual understanding with stakeholders around the world—customers, suppliers, andnational governments, as well as NGOs and otherpolicy and business inﬂuencers—as we help toresolve social issues throughout the world over the
medium to long term.

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

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

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

Hiroaki Nakanishi
President, Hitachi, Ltd.

TOP COMMITMENT

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

05

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

Corporate Credo
Adopted June 1983

WEB

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

Hitachi Group Vision
We will contribute to solving fundamental
global issues, and pursue the realization of abetter, more prosperous global society, in linewith Hitachi’s Founding Spirit, utilizing theGroup’s knowledge and technology.
Adopted November 2006

Hitachi Group Codes of Conduct
Adopted August 2010WEB

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

CSR Management

06

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

incorporating these important issues, which are
deeply related to the main measures of the MidTerm Management Plan, in CSR activities, we arepromoting the realization of CSR based on ourmanagement strategies. This report is also conducted in accordance with these important issues.
Material Issues for Hitachi

Importance for stakeholders

In ﬁscal 2010, we created the Five-Year CSR Roadmap, a medium-term plan for CSR. Based on thisroadmap, we are striving to resolve social issues byreinforcing the foundations of the management andintegration of CSR with the management, in orderto demonstrate global leadership as a Social Business Innovation enterprise in 2014.
Using global advanced enterprises as a benchmark, the Hitachi Group CSR Self-Assessment Tool
was developed in ﬁscal 2008 to clarify measuresthat should be taken, and was revised in ﬁscal 2011
based on changes in the requirements, such as ISO
26000 and globalization. This tool is used as a new
guideline for activities to realize the roadmap.
To promote the integration of management strategies with CSR, the “material issues for Hitachi”
have been clariﬁed using the materiality process,which emphasizes dialogue with stakeholders. By

Management Strategies and CSR

1.Products That Create a Sustainable
Society (Sustainable Business)
2. Protecting the Environment
3. Public Policy Initiatives
4. Respect for Human Rights
5. Supply Chain Management
6. Diversity Management

Inﬂuence on business2012 Mid-Term Management Plan
Management Goals and Forecasts for the Final Fiscal YearWe created the 2012 Mid-Term Management Plan inﬁscal 2010. Regarding the forecasts for ﬁscal 2012,
although revenues will not reach the target due
to our sale of the HDD and small-to-medium LCD

Revenues
Operatingincome ratio

Fiscal 2011 Results

Fiscal 2012 Forecasts

Fiscal 2012 Targets¥9,665.8 billion¥9,100 billion¥10,000 billion

4.3%

5.3%

Over 5%¥347.1 billion¥200 billion

Consistently
generate
at least¥200 billion

Debt-to-equity
ratio*

0.86 times

0.80 times

0.8 times
or below

18.8%

20.0%

20%

Total Hitachi, Ltd.
stockholders’equity ratio*Including the non-controlling interest and liabilities associated with the consolidationof securitized entities

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

Forecast Revenue Ratio and Percentage of
Employees outside Japan
Fiscal 2010 Results* Fiscal 2011 Results Fiscal 2012 Forecasts
Outside Japanrevenue ratio
Employee composition

Net income
attributable to
Hitachi, Ltd.

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

41%

43%

43%

Employees inJapan

212,000

212,000

212,000

Employees
outside Japan(percentage)

100,000 (32%)

111,000 (34%)

125,000 (37%)

312,000

323,500

337,000

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

2012 Mid-Term Management Plan: Key Management Policies andRelated CSR Activities
CSR activities are playing a crucial role in achieving 2012 Mid-Term Management Plan goals. For our key
management policies in particular, we will need to promote CSR activities and strategies related to Hitachi’smaterial issues (see page 016).
Material Issues for Hitachi

2012 Mid-Term Management Plan
Key Management Policies

I. Strengthen Management Base

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

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

CSR Initiatives and Results
Supply Chain Management (see page 021)
Promotion of the Hitachi Smart Transformation Project*1*2
Expand rate of procurement outside Japan FY 2011 38%
Products that Create a Sustainable Society (Sustainable Business)
Focused R&D investment in Social Innovation Business*3 FY 2011 ¥230 billion
Diversity Management (see pages 022–023)
Participation in Global Fundamental Course FY 2011 Total participants: 139
Number of non-Japanese employees FY 2011 239 people
Number of young employees given experience outside Japan FY 2011 1,064 people*4
Caring for the Environment (see pages 016–019)
Contributions to CO2 emission reduction FY 2011 (estimate) 18.09 million tonnes
Eco-Product sales ratio FY 2011 80%
Respect for Human Rights (see page 020)
Implementing human rights e-learning in Europe*1 FY 2011 Provided to approx. 10,000 employees
Public Policy Initiatives (see page 024)
Implementation of stakeholder dialogues*1 FY 2011 Held in three regions: Brazil, Indonesia, and Belgium*1 Non-quantitative activities *2 See Hitachi Group Sustainability Report 2012 (PDF), page 024, Corporate Governance. *3 See Hitachi Group Sustainability Report 2012 (PDF), page 036, Innovation
Management. *4 See Hitachi Group Sustainability Report 2012 (PDF), page 115, Global Human Capital Development.
Management Strategies and CSR

Hitachi Group Sustainability Report 2012 Digest
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07

F E A T U R E

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

Protecting Lives
With Customers: Minami-Gamo Purification Center

Kita-Nippon Bank
M7.3

March 11, 2011
15:08

Sendai City Hall
M9.0

Minami-Gamo
Purification Center

March 11, 2011
14:46

Hitachi Industrial
Cooperative
M7.3

Tokyo

08

March 11, 2011
15:15

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

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

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

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

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

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

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

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

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F E A T U R E

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Financial Systems Support Communities
With Customers: Kita-Nippon Bank

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

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

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

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

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

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

Relationships Drive a Sustainable Society

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

F E A T U R E

Relationships Drive a Sustainable Society

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

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

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

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

Partnerships Shine during Disaster
Recovery

Growing Together by Sharing Information and Challenges

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

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

Relationships Drive a Sustainable Society

Hitachi Group Sustainability Report 2012 Digest
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Relationships Drive a Sustainable Society

Supporting Disaster-Resistant Cities
With Government: Sendai City Hall

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

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

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

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

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

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

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

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

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

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

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

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

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F E A T U R E

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

Tatsuro Ishizuka

Hideto Kawakita

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

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

Harnessing Human Resources and a
Swift Restoration
Kawakita: The Power Systems Company delivers
thermal and nuclear power generation, power transmission and distribution, and renewable energy. I
heard that Hitachi Works, a core plant which you
oversaw during the earthquake, was severely damaged. What was your initial response?
Ishizuka: Above all, we worked on preventing a secondary disaster because there were frequent aftershocks. We did not let people go into the plant until
we made sure that it was safe.
Kawakita: So, safety was the overriding concern.
Ishizuka: We also needed to respond swiftly to customer needs. At ﬁrst, we were unable to picture theoverall damage. So, we summoned general managers
and above and instructed them to gather informationon the situations at nuclear and thermal power plants,
especially those requiring immediate attention, andwe provided support to Emergency Response Centers.
We had trained employees for contingencies and had
a communications network in place. So, there waslittle confusion in conﬁrming safety.
Still, the earthquake ruined plumbing and someplant equipment, causing water cuts and blackouts.
We had to restore things quickly. But only 10 of 6,000
employees were plumbers or electricians. So, weformed teams with other Hitachi Group employees
and with people from outside the Group who cameto help. We harnessed their expertise and skills. For
example, an inspector knowledgeable about high14

Hitachi Group Sustainability Report 2012 Digest
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Hideto Kawakita
Set up IIHOE in 1994 to help
non-proﬁt organizations
and socially responsible
corporations while laying
the foundations forcooperation between nonproﬁt organization andgovernments, and engaging in
corporate social responsibility
and environmental and social
communications.

voltages inspected a power plant, a construction engineer helped to build a temporary office, and so on.
Hitachi Works traditionally holds a sports day thatcrosses business boundaries. I think that one reason
our recovery went so smoothly was that we wereable to form cross-divisional teams.
Kawakita: What about community assistance?
Ishizuka: We used the gasoline we obtained fromheadquarters to fuel emergency vehicles and enable
Group company Hitachi Dentetsu Co., Ltd. to operate local buses. We felt it was important to rebuild
the community infrastructure based on the belief
that the town would start up again once it regainedsome transportation. Although we had a well at theplant, we could not distribute water to local residents
because we did not have approval from the publichealth department. After the earthquake, we did
get authorization and reached agreement with themunicipal government to supply well water during
emergencies in the future.

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

Relationships Drive a Sustainable Society

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

World Electricity Generation by Fuel Type(trillion kilowatt/
hour)
40
167%
30

Natural energy

Steam turbine for ultra supercritical
thermal power generation

119%
20

Natural gas

100%

CO2 emission reduction from coalfired thermal power generation

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

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

Coal

10

−7% (Comparison
with Hitachi)
Sub-criticalpressure

Oil

Ultra supercritical thermal power

Nuclear

0
2008

2015

2030 (FY)

Source: International Energy Outlook 2011

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

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15

Caring for the Environment

Guided by the Environmental Vision to achieve asustainable society, our corporate environmental management aims for the goals set by thelong-term Environmental Vision 2025 and ourEnvironmental Action Plan. Also, corporate environmental management is a focus of the 2012 MidTerm Management Plan. We are helping to reduce
environmental burden by providing our products
and services and through our business operations.

The Hitachi Environmental Vision
We have drawn up the Environmental Vision which
describes the aim of our corporate environmental
management: “to achieve a sustainable society.” The
world’s population is expected to reach 9 billion by
2050, while the world economy continues to grow.
The increase in economic and social activities increases
Hitachi’s Environmental Vision

the demand for energy, water, minerals, and otherresources. This has made environmental problems
worse, including resource depletion and climatechange. To solve these problems faced by the entire
world, the load on the environment must be reduced
to the highest extent possible to achieve a sustainable society.
We are committed to the prevention of global
warming, the conservation of resources and the preservation of ecosystems as the three pillars of our vision.
Our goal is to achieve a more sustainable society bypromoting global production that reduces the environmental burden of a product throughout its life cycle.

Long-Term Plan Environmental Vision 2025
The Intergovernmental Panel on Climate Change(IPCC), a UN panel assessing and advising on thecauses and effects of climate change, concluded in its
Fourth Assessment Report that CO2 emissions must
be reduced by 50 to 85 percent of their 2000 levelsby the year 2050 in order to meet the minimum stabilized density scenario for greenhouse gases (450ppm stabilization scenario). The International Energy
Agency (IEA) has drawn up a CO2 emission reduction scenario allocating the amount of reductions for
power supply and demand. Hitachi is widely conducting business in both of these sectors.
The long-term Hitachi Group Environmental Vision
2025 targets the prevention of global warming, oneof the issues that the world is facing today, and states
our goal of helping reduce annual CO2 emissions by
100 million tonnes by 2025 through Hitachi products
and services. This means that as we reduce CO2 emissions—by improving the environmental efficiency of
Hitachi Group products and by other means—ourcontribution to curbing CO2 emissions through the use

Main Products Contributing to CO2 Emission Reductions in Fiscal 2011
Supercritical Thermal Power Plant
Power Systems Company, Hitachi, Ltd.

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

190,000

23.4

9.7

tonnes of CO2

tonnes of CO2

tonnes of CO2

Keephills 3 power plant (Canada)

Hitachi Virtual Storage Platform

ZH200 hybrid hydraulic excavator

Canada’s Keephills 3 power plant (output: 495 MW)
began commercial operation. Hitachi supplied theentire plant for this high energy-efficiency supercritical thermal power plant, including the boiler, turbine,
environmental control systems and related facilities.
The new plant will contribute to an annual reduction in
CO2 emissions of 190,000 tonnes.

The Hitachi Virtual Storage Platform is an enterprisedisk array optimized for a cloud environment, taking
advantage of innovation in virtualization and automation. Energy efficiency is improved by using largecapacity 3.5-inch HDDs (hard disk drives), etc. The
contribution to the annual reduction in CO2 emissions
per system is 23.4 tonnes.

A motorized swing arm stores electricity during deceleration so that it can be used to assist the hydraulicmotor during acceleration. The hydraulic system uses
three pumps and control valves, reducing fuel consumption by 20 percent compared with the standard
model (ZX200-3). One ZH200 excavator contributes toan annual reduction in CO2 emissions of 9.7 tonnes.

*Please see page 055 of the Hitachi Group Sustainability Report 2012 (PDF) on the method used for calculating
the contribution of Hitachi products to CO2 emission reduction and other details.

16

Hybrid Hydraulic Excavator
Hitachi Construction Machinery Co., Ltd.

Hitachi Group Sustainability Report 2012 Digest
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Caring for the Environment

of our products and services will be 100 million tonnes
per year by 2025 compared with the products of thebase year, ﬁscal 2005.
Our contribution to CO2 reduction in ﬁscal 2011 isestimated to be 18.09 million tonnes. A wide range of
products and services contributed to the reduction inemissions, including high-efficiency thermal and hydropower plants, energy-saving information systems,
consumer electronics products, as well as parts andmaterials used in energy-saving products. Due to theeffects of the disaster caused by the Great East Japan
Earthquake, however, plans for introducing electric
power plants were drastically altered, preventing us
from achieving the original target of 20 million tonnes.
We will continue working to develop and popularize
products that contribute to CO2 emission reductions.

increase the Eco-Products sales ratio, or the ratio of
Eco-Product sales to total product sales.
In ﬁscal 2011, we increased the number of models
designated as Eco-Products to over 10,000 and the
Eco-Product sales ratio to 80 percent, topping our goalof 79 percent. We aim to boost the Eco-Products sales
ratio to 88 percent by ﬁscal 2015.
Eco-Product Increase(No. of models/year)
12,00010,476
9,456
8,387

9,000
6,954
6,000

5,741

3,000
0

2007

2008

2009

2010

2011 (FY)

Contributions to CO2 Emission Reduction (base: FY 2005)
Number of Eco-Product models(millions of tonnes/year)
Contribution to CO2 emission reduction

100 million tonnes/year
Transportation, commercial,
and residential sectors
Industrial
10%
sector100
80

Building a System for Visualizing Energy Use

20%

63.00
60

20
0

Power
sector
70%

35.00

40
15.51

18.09

2010

2011
(estimate)

2015

2025

2020

(FY)

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

Increasing the Ratio of Eco-Products
In 1999, we introduced Assessment for DfE (Design forEnvironment) which sets speciﬁc environmentally conscious criteria for designing and developing products
and services to minimize their environmental burden
across their life cycle. Products that meet DfE standards
are designated as Eco-Products. One of our goals is toStarting in April 2012, we began tallying the monthly
use of energy such as fuel oil, gas, electricity at 200
large business sites in Japan, and started a system topost the results on the Hitachi Group intranet as partof a visualization system. Since July 2012, we havebeen operating the Hitachi Group Electric Power Data
Counting and Monitoring System to collect hourly dataon power use at 238
large sites (contracted
capacity of 500 kW orabove). This system
makes more efficientenergy use possible
and makes employees more aware of the
Display Example of Typical Energy
need to save power.
Visualization System

Examples of Eco-Products Select*
HDRIVE Hitachi Motor Drive Energy Conservation Service
Infrastructure Systems Company, Hitachi, Ltd.
Customer’s
factory

Energy savings report
Machinery installation
Operational status

Financecompany

Notiﬁcation ofenergy-saving effects

Hitachi, Ltd.

Inverters
installed
without
customerinvestment

Super-Amorphous XSH series
Hitachi Industrial Equipment Systems Co., Ltd.

User fees

High-voltage motors and large 400 kVA+ inverters are installed at large factories, suchas petrochemical plants and cement works, at no initial cost to customers. Since thissystem began in 2001, 360 GWh of energy has been saved (as of May 2011), equal toabout 138,000 tonnes of CO2.

The amorphous alloy with a high magnetic ﬂux density used in the iron core boosts
performance to more than 150 percent of Top-Runner standards. Compared withconventional transformers using silicon steel plates in their iron cores, less stand-by
power is wasted when equipment is not operating.

*Eco-Products that meet even more demanding requirements are designated Eco-Products Select.
For more information on Eco-Products Select, please see page 062 of the Hitachi Group Sustainability Report 2012 (PDF).

Caring for the Environment

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

17

Recycling Water Resources
We are committed to effective water use by reducing
the consumption in our operations.
Hitachi Elevator (Shanghai) Co., Ltd. uses water
recycling equipment employing advanced technologies such as chemical treatment, ﬁltration, and reverse
osmosis membranes. After the wastewater fromproduction is collected and treated, it is reused for
manufacturing as well as for toilets and other domestic
water use and for watering trees and plants within the
grounds. Through these recycling technologies, wesave around 80 m3 of water a day, the same amountused by a Shanghai resident in 18 months.
Recycled Water Use Flow
Domestic wastewater

Domestic water(For toilets and for watering trees)

Primary water
puriﬁcation treatment

an Energy Management System (EMS) so that production timelines can be shifted based on energy supply
and demand forecasts.

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

Advanced water
puriﬁcation treatment

Domestic wastewaterIndustrial water

Participation at Exhibitions

Omika Works, producing information and control
systems in Ibaraki Prefecture, Japan, has installed a
940 kW photovoltaic system that has been operating
since May 2012. Around 900 monitoring devices, suchas smart meters, make power consumption visible foreach building and use. The factory has also introduced

We value direct dialogues with stakeholders, so weparticipate in environment-related exhibitions. In
Japan, we participated in the Eco-Products Exhibition
2011 in December 2011, and outside Japan, the ChinaJapan Green Expo 2011 in June 2011, and we held the
Hitachi Eco Conference 2011 in February 2012.
We reduce the environmental load of our exhibition booths. Our booth at Eco-Products Exhibition
2011 used LED lights as well as carpets and wallmaterials that were made from environmentally conscious materials. The Hitachi booth won the best Eco& Design Booth Prize, and it was our second straight
prize winning following last year.

Photovoltaic system installed at Omika Works

Hitachi booth at Eco-Products Exhibition 2011

Pond where recycled water is stored after treatment

Omika Smart Factory Project18

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Caring for the Environment

Reducing the Environmental Burden of Business Activities
We have set targets for reducing greenhouse gas emissions, chemical substance emissions, waste (including valuable
resources), and water use. In the new Environmental Action Plan, we set higher targets for environmental load reduction for each of the action items, and in ﬁscal 2011, the ﬁrst year of the plan, we were able to achieve our targets forten items, including reducing CO2 emissions and using water effectively, but fell short in the remaining two*: reducing
waste generation per unit production rate (assembly industry group) and decreasing the ratio of VOC atmosphericemissions. We are now making every effort to ensure our targets are achieved for all items by the ﬁnal year of the plan.
*Please see page 055 of the Hitachi Group Sustainability Report 2012 (PDF) for more information.

CO2 Emissions per Unit Production

CO2 Emissions in Japan

From base year21%

3,568 kt
Emissions

Emissionsimprovement

From base year

3,121 kt

28%

improvement

Production$

Production

$

100%

3,046

79%

FY 2005(base year)

2,200

kt

kt
FY 2011

FY 1990(base year)

FY 2011We are promoting sustainable energy-saving investment and higher
efficiency in production processes. In addition to sharing energy-saving
knowhow across the Group, we support the development of energy
conservation personnel and assess energy efficiency.

Through our sustainable energy-saving investment, we are introducing
energy-efficient machinery and switching to alternate fuels. In ﬁscal 2011,
CO2 emissions decreased, since Hitachi Global Technologies, Inc. and Hitachi
Displays Ltd. were removed from the total calculation.

Rate of Transportation Energy Consumption
per Unit Production in Japan

Amount of Waste Generated per Unit
Production Rate
From base year

From base year
188 ktEmissions19%
improvement

138 ktEmissions
Production$

Production

$

100%

12% Assembly
15%
Industry Group* improvement

High Functional
Materials Group*1 improvement

Production

Amountgenerated*1：481 kt*2：266 kt

Amountgenerated81%

2*1： 88% Production*2： 85%100%$*1：418 kt*2：249 kt$

FY 2011

FY 2006(base year)

FY 2005 (base year)

FY 2011

Truck transportation soared after the long-term railway damage from theGreat East Japan Earthquake. This led to an increase in CO2 emissions
compared with ﬁscal 2010. However, we achieved a 19 percent reduction
in energy consumption per unit production from the base year.

We are reducing and recycling waste materials generated during
manufacturing, including valuable resources. We have improved recycling
efficiency by installing foreign matter removal equipment and by introducing returnable transportation packaging materials and pallets.

Rate of Water Use per Unit Production
outside Japan

Ratio of VOC Atmospheric Emissions*

From base year

11.2
Amount3
used million m
Production$

FY 2005(base year)

42%
improvement
100%

Amount8.91
used million m3
Production$

From FY 2010

0.5%
improvement

Emissions

3,653 tAmounthandled52,771 t

58%

6.9%

Emissions

4,285 tAmounthandled67,121 t

6.4%

FY 2010

FY 2011

We have set a Group target and introduced measures to reduce water use,
especially outside Japan where water resources are scarce. We will strive
to optimize water use efficiency, as well as reduce our water consumption
by preventing leaks and boosting the rate that we recycle.

FY 2011

Because of an increase in painting processes, we did not achieve our ﬁscal
2011 target of 5.8 percent. We will introduce alternate materials into thepainting process, as well as improve these processes.
*VOC atmospheric emission ratio: VOC atmospheric emissions / total volume of
VOCs handled.

Caring for the Environment

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

19

Respect for Human Rights

Cherishing humanity has been fundamental tomanagement since our founding. When operating
globally, we respect human rights based on international codes for all of our stakeholders, appreciating the cultures of every country and region toenhance our understanding of their values.

Human Rights Policies
We established the Hitachi Group Codes of Conduct
in 2010. Central to these rules are respect for nationaland regional laws as well as universal human rights
based on international norms. Our codes require
respect for the individuality and personalities of all
stakeholders, ending discrimination in recruitment andemployment, as well as respect for basic human rights
in all workplaces. We have translated the codes into 17
languages to improve human rights awareness among
all Hitachi Group employees worldwide. We also focus
on corporate management that respects human rights,
as outlined in ISO 26000.
We established the Central Human Rights
Promotion Committee to gauge the impact of businessactivities on stakeholders’ human rights and to deliberate on mechanisms and policies that prevent humanrights violations. A Hitachi, Ltd. executive officer chairs
this body, and members include representatives fromsales, procurement, human resources, and other corporate divisions. Information from deliberations is sharedwith all employees through company and business site
committees, led by company and division executives.
We maintain a framework to more swiftly detect
and resolve internal and external human rights
violations. This framework includes the Compliance
Reporting System, a sexual harassment consultation
system, and employee awareness surveys. We identify
human rights risks globally by regularly assessing
management and business risks.

once every three years.
As a global enterprise, we encourage humanrights awareness. One example: we work with our
CSR team in Europe as, we believe, the most advanced
region that is addressing human rights, to develop
educational materials and other awareness-raisingprograms. Our European CSR team collaborated with
European Group companies to launch a human rights
project, promoting the United Nations framework forbusiness and human rights called “Protect, Respect
and Remedy,” which was formulated by Professor
John Ruggie, Special Representative of the SecretaryGeneral. Based on that framework, we exchange views
with the people who helped to shape and write the
UN Guiding Principles, and we provide human rights
education based on these principles. In ﬁscal 2011,an e-learning program was made available to about
10,000 employees. We are also helping our suppliers
to understand our position on human rights.

Contributing to International Discussions
As a member of the UN Global Compact (UNGC)
Human Rights Working Group, we promote humanrights principles and support the understanding andthe implementation of the UN framework. In Europe,
we are in a working group on supply chains andhuman rights operated by CSR Europe, a businessnetwork promoting European CSR.

Raising Awareness of Human Rights
Hitachi improves Group-wide human rights awarenessbased on guidelines deliberated on and decided by
the Central Human Rights Promotion Committee. We
provide educational materials and information for theentire Group that augment a business unit’s grouptraining, seminars, and video education. We also give ahuman rights e-learning course that all employees take20

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

Respect for Human Rights

VOICES

Leading the Way on Human Rights

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

The new UN Guiding Principles on Business and Human
Rights provide companies with a blueprint to “know andshow” that they are respecting human rights in their own
activities and in their business relationships.
The next steps for Hitachi will be to develop thehuman rights due diligence and remediation processes
needed to implement the policy. The implementation ofthese kinds of systems and procedures takes a lot of time,
particularly for a company of Hitachi’s size and diversity,
but we have high expectations of Hitachi’s activities.
Moreover, as both a Japanese-headquartered company
and a global company, we want Hitachi to play a leading role in sharing the learning from its own efforts withothers who are just beginning to address these issues.

Results of CSR Monitoring Survey of 101 Suppliers in
China and the Rest of Asia

Supply Chain Management

One priority of the 2012 Mid-Term Management
Plan—expanding our global procurement ratio bypurchasing more in emerging economies—reinforces our competitiveness. During procurement,
we respect the human and basic work rights ofeveryone in the supply chain, and we collaborate
with suppliers to promote CSR.

No. ofcompanies
surveyed

Top
score

Bottomscore

Average

100

54

87

10

100

59

78

6

98

60

84

Thailand

6

99

64

82

5

Malaysia

4

90

79

86

6

Indonesia

2

63

61

62

7

Vietnam

2

76

64

70

8

The Philippines

2

96

55

76

9

Singapore

1

80

80

80

101

100

54

84

No.

Country/Region

1

China

68

2

South Korea

3

Taiwan4

Total

Promoting Globalization(Maximum score = 100)

Using the 2012 Mid-Term Management Plan, we
intended to raise the Hitachi Group’s global procurement ratio from 36 percent (ﬁscal 2010) to 50 percent
by ﬁscal 2012. We therefore formulated the HitachiGroup Mid-Term Procurement Strategic Plan. The key
aims are to establish global partnerships to create
Group procurement strategies, to stabilize the supplyof materials, and to reinforce CSR and sustainability
within the supply chain. In ﬁscal 2011, the global
procurement ratio reached 38 percent. We appointed
procurement officers to oversee local procurementin China, the rest of Asia, Europe, and the Americas.
These officers are responsible for expanding the poolof suppliers in the emerging nations, as well as forreinforcing our responsiveness to CSR risk, a growing
concern as the global supply chain expands.

CSR Awareness and Supplier CSR Surveys
We distribute, throughout the Group and to our suppliers, the Hitachi Group Supply Chain CSR Deployment
Guidebook, which conforms to JEITA (Japan Electronics
and Information Technology Industries Association)
guidelines. To mitigate procurement risks, in ﬁscal
2011 we used this guidebook for a supplier CSR evaluation survey conducted in China and elsewhere in Asia.
The ﬁscal 2011 survey covered 101 suppliers. When
we collated the results, converting the points on the
JEITA checklist to a maximum of 100, four companies(three in China and one in South Korea) achieved the
maximum score, while the bottom score of 54 was recorded by one company. The average was 84. These
results show how effective CSR initiatives are and how
strong CSR awareness is at the companies we surveyed.
Below is the point distribution across the 101 companies. Seventy-two companies, or around 70 percent,scored 80 or more, while four scored between 50 and 59.
In ﬁscal 2012, we will use these survey results forDistribution of Points across 101 Suppliers in China andthe Rest of Asia
(No. ofcompanies)
40

39
29

30
20
11
10
0

14

4
50–59 60–69 70–79 80–89 90–99

4100(score)working out which suppliers to audit, using an externalorganization.

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

Response to the Conﬂict Minerals Issue
The Dodd-Frank Wall Street Reform and Consumer
Protection Act became law in the US in 2010. Fourconﬂict minerals—columbite-tantalite, cassiterite, gold,
and wolframite—that are produced in the Democratic
Republic of Congo (“DRC”) and adjoining countries(together the “DRC countries”) are ﬁnancing conﬂicts
where atrocities and other serious infringements ofhuman rights are occurring. The goal of this law is to
cut off revenues from armed groups that use violenceand violate human rights.
Hitachi is committed to responsible procurement
practices and has no intention, directly or indirectly, of
abetting the human rights violations in the DRC countries. Accordingly, we are working with Group companies, suppliers, and the industry association JEITA toboost supply chain transparency and to ensure that theminerals we procure do not ﬁnance or beneﬁt armed
groups committing human rights violations.

Supply Chain Management

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

21

Diversity Management andHuman Capital Strategy

Our diversity initiatives build a corporate culture
and work environment that motivates people to
fulﬁll their potential, enabling every employee tofeel that his or her job is rewarding and worthwhile, and allowing them to work with enthusiasm.

Diversity Development Project
We launched the Diversity and Inclusion Development
Project in ﬁscal 2006 to strengthen our commitment toprograms that enable employees to balance work withchild or nursing care and to promote women in theworkplace.
Diversity Development Group Council
We began the Diversity Development Group Council
in ﬁscal 2009 to foster Group-wide diversity (within
Hitachi, Ltd. and 25 major Group companies). The
Council works to raise the standards of the entire
Group by sharing internal and external expertise andthrough exchanging views.
Trend in the Number and Ratio of Female Managers
within Hitachi, Ltd.
(People)

(%)
2.9

3.0

303

3.4

4
3

400

300

3.3
386

377

2
1
0

2010

2011

(FY)

320

200

100

73

0
2000

2008

2009

Women’s Summit Tokyo 2011
We cosponsor Women’s Summit Tokyo, a cross-industry
networking event helping to advance women in theworkplace. People discuss in groups and workshops
how to support women’s goals, diversity management,
and globalization. At the fourth event, in November
2011, 190 people from 42 companies took part.

22

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

WLB-up! Logo

Women’s Summit Tokyo 2011

Second Work-Life Balance-up! MonthIn ﬁscal 2010, we began holding Work-Life Balance-up!
Month (WLB-up! Month) every
November to inform employees
and encourage them to use
work-balance programs.
In the 2nd WLB-up! Monthin ﬁscal 2011, we included people from Group companies, who now encourage others to review their worklife balance, creating a supportive corporate culture.
Diversity Training and Workshops for Managers to
Improve Awareness
It is vital to improve awareness among managers of
the need to respect diversity and encourage the participation of all employees. We started diversity training
for managers in ﬁscal 2011, and 450 managers participated. Comments by the participants included, “Itis necessary to change old ways of thinking regarding
work,” reﬂecting the beneﬁcial effect of this training.
We conducted a World Café†1 workshop to create
a better understanding of and to highlight the needfor diversity and work-life balance. The workshop provided opportunities for all employees, including senior
executives and young employees, to discuss diversity
and work-life balance. We received many positive
comments from participants. One person felt satisﬁed at being able to contribute to diversity initiatives;
another found that the workshop was a good way toshare issues and opinions. This event also helps foster a
corporate culture of mutual respect and assistance. In
ﬁscal 2011, 550 people participated.
†1 World Café: Open dialogues among groups of four or ﬁve people about speciﬁc
topics in an informal, café-like atmosphere.

Diversity Management andHuman Capital Strategy

Global Human Capital Management
Strategy

Diversity workshop

External Assessments of Initiatives
We have received awards for diversity and workplace initiatives, such as 2nd place in the Nihon
Keizai Shimbun 2011 Ranking of Companies with
the Best Working Conditions and 21st place in the
Nikkei Business Publications
2011 Ranking of the Best 100
Companies that Encourage
Working Women. Also, Hitachi
Data Systems Corporation was
selected by Fortune Magazine in
the US as one of the “100 BestThe Kurumin MarkCompanies to Work For” in 2012.
European Diversity Project
Europe’s population is aging at an unprecedented
rate. Over the coming decades, companies in Europe
will face an intensifying struggle over talent.
The European Diversity Project that we started internally in 2009 continues to address diversity issues acrossall Hitachi Group companies in Europe. With the focus
on gender diversity, an e-learning course is available toall employees, and more than 80 percent of selected
managers have taken part in face-to-face workshops.
We believe that having a diverse, inclusive corporate
culture supports us in becoming a truly global company.
Employing People with Disabilities
We are developing workplaces where anyone canmake a full contribution. We continually employ
those with disabilities and promote Group-wide
understanding in Japan.
During ﬁscal 2011, we stepped up hiring people
with disabilities. We held the Hitachi Group job fairfor disabled jobseekers twice instead of once. We also
held ﬁve study meetings during the year on employing
people with disabilities. The goals were to deepen understanding and to share information among companies. As of June 2011, the employment ratio of people
with disabilities was 2.00 percent at Hitachi, Ltd. and1.86 percent for the entire Group, reaching the legally
mandated ratio of 1.8 percent.

Hitachi, Ltd. created the Global Human CapitalManagement Strategy to support the Group’s worldwide expansion, and established the Global Human
Capital Division in July 2011, to drive that strategy. The
new division uses a common framework for humancapital (resource) management, while optimally
matching human capital management programs withthe speciﬁc requirements of regions, businesses, andmarket needs—in collaboration with other businessdivisions. We consider Japan as important a region as
the Americas or Europe. We intend to further develop
the global human capital management framework,
systems, and knowhow, and implement them globally.
To reinforce local management, we built the Global
Human Capital Database to cover all Hitachi Group
employees, excluding factory workers outside Japan. We
will encourage the inclusion of information from this database into Group company human resource management. Also, we are building a global grading system thatwill apply to all managers in the Hitachi Group, in andoutside Japan. This new system will be a common platform for job evaluations throughout the entire Group.
In-house and Group companies are collaborating to
optimize human capital management in keeping with
regional and business requirements. By the end of ﬁscal
2011, we completed surveys in the 11 key regions outside Japan (excluding China). And based on the resultsof the 2011 surveys, we will develop managers who arefamiliar with each region, helping to grow our business.
We have also provided the Global Fundamental
Course for Hitachi Group managers to instill in theman understanding of our core values, such as the
Corporate Credo and guidelines for conduct. In ﬁscal
2011, 139 managers took this course.
Trend in the Number of Non-Japanese Employees
within Hitachi, Ltd.
(People)
300

218
200

230

239

2010

2011

200
179

100

Diversity Management andHuman Capital Strategy

0

2007

2008

2009

(FY)

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

23

Public Policy Initiatives

Partnerships with governments and policymakers worldwide are helping to grow our Social
Innovation Business and create a sustainable society. We are improving relationships by informing
management of social and policy trends and are
responding to expectations as a company supplying social infrastructure.

Promotion Structure and External Relations
Our basic plan is to participate in public policy initiatives not only in Japan but in countries and regions
across the world and to help develop a sustainable
society. This means building networks with government institutions to monitor policy trends and to offer
recommendations for social innovation solutions, suchas energy generation and smart cities.
In ﬁscal 2011, the Government & External Relations
Division was set up as an organization directly under
our president that will liaise closely with senior management. The division’s operations were substantiallyenhanced, adding personnel in charge of external
relations at Hitachi’s in-house and Group companies.
Regular information exchanges are held with theseexternal relations personnel at the Hitachi Group
External Relations members meeting.
Hitachi External Relations Promotion Structure
Hitachi, Ltd.
President

Government &External Relations
Division

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

ment and international institutions who contribute to
public policymaking. Hitachi also extends invitations
to government institutions that are operating on thefrontlines of public policymaking.
Within the Japan Business Council in Europe (JBCE),
an association formed in 1999 by Japanese companies
in Europe, Hitachi participates in policy committees
on issues such as the environment, CSR, and trade. In
particular, as Chair of the JBCE CSR Committee, we
assist policymakers by making recommendations to
EU institutions, and by enhancing our proﬁle by, for instance, attending European Commission-led meetingsas an invited stakeholder. In ﬁscal 2011, talks were heldwith the European Commission and industry associations on disclosing non-ﬁnancial information. On thesame issue, we gave the European Commission andother key ﬁgures a letter of recommendation from theperspective of non-European global companies. Our
proactive approach received a positive response.

Stakeholder Dialogues
We hold stakeholder dialogues worldwide to identify
social issues, understand what is expected of us, and toreﬂect this in our management and strategy. Especiallyin the 11 key regions, we are discussing the socialand environmental issues faced by local communities
and how we might help resolve them through Social
Innovation Business. We are building relations withlocal communities as a good corporate citizen.
In Brazil in November 2011, we discussed socialand environmental issues, looking at urban transportation in particular following the Olympics and theWorld Cup. We received advice on the diversity ofcities, working with local governments, and technologies that improve transportation. In February 2012,
dialogues were held in Indonesia and Belgium. In
Indonesia, discussion focused on environmental issues,
with stakeholders suggesting areas other than technology where we might contribute. Smart cities were
the topic of discussion in Belgium, where stakeholders
suggested how local residents’ needs and cities’ particular characteristics should be reﬂected in technology
and urban development.

Hitachi Group
External Relations members meeting

Strengthening Global External Relations
An important factor in strengthening external relations is exchanging experts among public institutions
and private ﬁrms. Hitachi currently has many people
with valuable expertise on loan to Japanese govern-

24

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

Public Policy Initiatives

Stakeholder dialogue in Indonesia

Management Information Disclosure

We disclose non-financial information, mainly our activities in fiscal 2011, ended March 31, 2012, in the Hitachi Group Sustainability Report 2012. Operating and financial information for shareholders and other investors is in the Annual Report 2012. Our
website provides the latest information on these and other topics.
Non-Financial Information Reports

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

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

WEB Global Community Relations and Activities (Social Contribution Activities)
http://www.hitachi.com/csr/sc/index.html

Hitachi Group Sustainability
Report 2012

Financial Information Reports

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

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

Annual Report 2012

Report MediaThe Hitachi Group Sustainability Report 2012 Digest (A4, 24 pages) is a summary of policies, areas of special social interest, andreports on key management issues from the larger Hitachi Group Sustainability Report 2012 (A4, 141 pages), which is issued as a
PDF. Our website also reports on detailed activity, as well as news releases and other up-to-date information. Since fiscal 2011, theHitachi Group Sustainability Report has combined edited contents of the Hitachi Group CSR Report and the Hitachi Group Environmental Sustainability Report, which we published through fiscal 2010.

Latest Information
Reports on detailed activities

Hitachi, Ltd. website

Reports on material issues
ThisbookletPDF

Hitachi Group
Sustainability Report
2012 Digest

Hitachi Group
Sustainability
Report 2012

Web

CSR (Corporate Social
Responsibility)
Environmental Activities
Social Contribution Activities

Hitachi Group Sustainability Report 2012 Digest

Inquiries:

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certified by the FSC ® (Forest
Stewardship Council®)

Hitachi, Ltd.
CSR Promotion Department, CSR Division (For inquiries on this report or CSR activities overall)
1-6-6 Marunouchi, Chiyoda-ku, Tokyo, 100-8280, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4564-1454 http://www.hitachi.com/csr/
Environmental Strategy Office (For inquiries on environmental activities)
1-6-1 Marunouchi, Chiyoda-ku, Tokyo, 100-8220, Japan
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Hitachi Group Sustainability Report 2012 Digest

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

Hitachi Group’s CSR and environmental activities, Hitachi

CSR Promotion Department
CSR Division

Group Sustainability Report 2012 Digest? Please answer thequestionnaire on the other side of this page. We consider
readers’ opinions very important and want to ensure that thisfeedback is reflected in our various CSR activities.

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

The full version of the Sustainability Report can be viewed
and downloaded as a PDF file from the following web page:
http://www.hitachi.com/csr/download/

Results of Responses to Web Questionnaire on Hitachi Group Sustainability Report 2011 Digest(Conducted by DFF Inc., Total respondents: 570)

Sustainability Report 2011
Low

Too little

6%

Inadequate
Too much

2%

High

3%

28%

Appropriate

Comprehensibility

Average

Average

VolumeProducts/
technology/quality

environment
Relationship withpublic policies
Respect forhuman rights

7%
9%
9%

16%

10%

14%

Customersatisfaction

16%

Environmental
protection

Social contribution
Compliance activities
12%
Areas of Excellence

Easy to read60%

ArticlesLayoutCSR Activities

Supply chain management
7%
Employment

32%

62%

70%

Average

8%

Excellent
35%

37%
57%

Hard to read

Breakdown of Responses

Supply chain management
8%Complianceactivities

Environmental
protection
14%
14%

Relationship withpublic policies

9%9%Products/
technology/quality

10%
13%
11%

Customer satisfaction

Supplier 1%
Research/education
institution employee
2%

Social contribution
Employment
environment

Shareholder/investor
Hitachi Group
employee/family member

Other
7%
4%
2%
74%
Customer

Respect for human rights
12%

Areas for Further Improvement

Main Feedback and Our Responses
Encouragement

Suggestions

Our Responses• Hitachi is aiming to become a sustainable
company and the report outlined its projects
for that purpose.
• I got the impression that the report focuseson providing information that people require.
• The graphs and use of colors made it easy
to understand.

• I think objective assessments by third parties
are necessary.
• I would have liked to see more detail on thechange in values after the Great East Japan
Ear thquake and Hitachi’s vision for the
future.
• In general there were too many terms inkatakana phonetic script, making it hard toread.

• We conducted screening by an independent third party regarding the data and otherfacts included in the Report.
• The themes of the feature article were energy and the lessons learned from the Great
East Japan Earthquake.
• Regarding technical and other specialist
terms, we appended footnotes as much as
possible.

Please answer the questionnaire overleaf

Questionnaire on Hitachi Group Sustainability Report 2012 Digest
Please complete the questionnaire and mail or fax it to the address below:

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

Fax: +81-3-4564-1454
Q1. What were your impressions of Hitachi Group Sustainability Report 2012 Digest?
(Please select one only in each of the following)High(1) Comprehensibility
Too much(2) Volume
Easy to read(3) Layout
Excellent(4) Articles• Please explain the reasons for your selections

Average
Appropriate
Average
Average

Low
Too little
Hard to read
Inadequate

Q2. Which articles in the report did you find valuable? (You may select more than one)
Hitachi Group Profile
TOP COMMITMENT: Message from Management
VISION: Hitachi’s Management Strategy and CSR
FEATURE: Relationships Drive a Sustainable Society—Lessons from the Great East Japan Earthquake
Caring for the Environment
Respect for Human Rights
Supply Chain Management
Diversity Management and Human Capital Strategy
Public Policy Initiatives• If any of the above articles particularly interested you, please explain why

Q3. What is your opinion of the Hitachi Group’s CSR activities and initiatives?
(You may select more than one in each of the following)
Compliance
Environmental protection(1) Areas of Excellence
Customer satisfaction
Public policy initiatives
Respect for human rights
Supply chain management
Other ()
Compliance
Environmental protection(2) Areas for Further Improvement
Customer satisfaction
Public policy initiatives
Respect for human rights
Supply chain management
Other ()• Please write below any other comments you have regarding the Hitachi Group’s CSR activities

Product/technology/quality
Social contribution activities
Employment environment
Product/technology/quality
Social contribution activities
Employment environment

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

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

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

Magazine

WebsiteSeminarExhibition

From a Hitachi employee)

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

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