Hitachi Group
Corporate Social Responsibility Report 2008 Digest

To Our Stakeholders

Etsuhiko Shoyama Kazuo Furukawa
Chairman of the Board

President andChief Executive Officer

Using the Corporate Credo “contributing to society through the development of superior originaltechnology and products,” Hitachi has contributed to the resolution of various social problems—with the support of our stakeholders—from our foundation to the present. Now that social
issues, like corporate activities, have become global, corporations are playing an increasingly important role in the realization of a sustainable society. Hitachi aims to bring about a society where
people can live in comfort and safety within a better global environment. To realize this type ofsociety, we will continue to take up the challenge of resolving the fundamental problems of a
global society, making full use of the Hitachi Group’s knowledge, know-how, and experience.
This report provides our stakeholders with an account of the activities and initiatives that
Hitachi considers most important for a company with a deep sense of social concern and responsibility. In particular, we focus on global environmental problems of great concern throughout
the world, describing Hitachi’s initiatives and future direction. In addition to this report, we haveposted more detailed information on the Web site to promote a deeper understanding of theseissues and our role in their resolution.
Through this report and the Web site, we hope to engage in an ongoing dialogue with you.
July 2008

Scope of This Report
Period: The main period covered is fiscal 2007 (April 1, 2007 through March 31, 2008)
Companies: Companies covered under consolidated reporting of the Hitachi Group
Scope of data:
Financial data
Hitachi, Ltd. and 911 consolidated subsidiaries (including modifi ed entities to which the equity
method of consolidated reporting applies) and 171 affiliated companies that use the equity method
Social data
Scope of data indicated under each item
Environmental data Hitachi, Ltd. and 249 consolidated subsidiaries (including companies outside Japan)
Related Reports
We report on the financial performance of Hitachi, Ltd. in the “Financial Highlights” and Annual Report. Research anddevelopment and intellectual property (intellectual property rights and brands), which are major aspects of the technology
management of Hitachi, Ltd. and its major subsidiaries, are covered in the “R&D and Intellectual Property Report.”
Twenty-one Hitachi Group companies and 13 business divisions and production facilities publish their own reports onenvironmental and social contribution activities. In addition, 44 Hitachi Group companies and 8 business divisions andproduction facilities provide information on their Web sites.
Guidelines Referred to in Preparing This Report“Environmental Reporting Guidelines” (FY 2007 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 2006, Global Reporting Initiative* This CSR Report is published on an annual basis.

Contents
2

commitment Message from the President

4

vision Hitachi’s CSR Vision6

dialogue Hitachi’s Environmental Strategy

8

activities Hitachi Embraces the Challenge of Reducing CO2 Emissions

12

CSR Management CSR Activities of the Hitachi Group13

Corporate Governance and Risk Management

14

CSR Promotion Activities

16

Total Commitment to Compliance

17

Respect for Human Rights

18

Next Society Hitachi: Living Together with Society

19

Monozukuri and Services from the Customer’s Perspective

21

Working in Harmony with Local Communities

23

Collaborative Creation with Suppliers

24

Employees: the Key to Hitachi’s Future

26

Next Eco Environmental Action for a Sustainable Society

27

Eco-Mind & Global Environmental Management

28

Next-Generation Products & Services

29

Super Eco-Factories & Offices

31

Worldwide Environmental Partnerships

32

Company Profile
Hitachi Group Profile
Economic Performance

Reporting the CSR Activities of the Hitachi Group
Latestinformation

CSR (corporate social responsibility)
section of the Hitachi, Ltd. Web site

http://www.hitachi.com/csr/
Detailed
information

Hitachi Group
Corporate Responsibility
Report 2008

PDF
DigestThis booklet
Hitachi Group
Corporate Responsibility
Report 2008 Digest

Reporting the CSR Activities of the Hitachi Group
Information about CSR activities in fiscal 2007 (April 2007–March 2008) is available in two
formats: Hitachi Group Corporate Social Responsibility Report 2008, a PDF that can beaccessed on the Web, and this booklet, Hitachi Group Corporate Social Responsibility
Report 2008 Digest. The PDF edition contains comprehensive information on policies,
actual programs, and quantifiable results. This digest focuses on reporting areas of activity the Hitachi Group has particularly emphasized. Specific subjects not covered in thedigest are listed on pages 12, 18, and 26.
The address of the CSR section of the Hitachi, Ltd. Web site is: www.hitachi.com/csr/
The PDF of the Hitachi Group Corporate Responsibility Report 2008 is available fordownload at: www.hitachi.com/csr/download/index.html
Charts, graphs, and other illustrative materials have, based on the concept of Universal
Design, been presented for optimum legibility by people who have difficulty with color
perception.

commitment

Message from the President

Looking to Tomorrow, Hitachi Works to
Address the Issues of Today

Some 40 years ago, when the telephone network in Japanwas limited, I worked as a new Hitachi employee on developing the country’s automated telephone switching systems. Installing automatic switchboards took me to places
all over Japan, and waiting at the end of my stay at each job
were the happy smiles of people who could now connect
calls without a switchboard operator. This unforgettable experience was the starting point of my commitment to CSR.
Recently, I have made frequent visits to nations
throughout Africa and Asia. Many times I have seen
people suffering there because of poverty, especially the
problems these communities face with the lack of foodand water resources. Looking across the world, I see many
regions that lack an adequate social infrastructure. WhenI remember those happy smiles some 40 years ago, I am
committed now more than ever that in countries where
Hitachi is expanding I would like to contribute—if only
in a small way—to efforts that solve these problems. I
firmly believe that our corporate management will enable
us to pursue the sustainable development of society andour company as complementary goals.

Using Our Combined Resources toLessen Environmental Problems
I believe that CSR has three core components: sustainable
development, the environment, and human welfare. If
problems associated with these three components are notsolved in a balanced way, I think true happiness and sustainability for humankind as a whole cannot occur. As theworld’s population has grown dramatically over the past
100 years, the concentration of CO2 in the atmosphere
has similarly increased. I feel strongly that today—when it
is clear that climate change resulting from increased CO2
emissions presents serious challenges to sustainable socialand economic development—the time has come for us to2

Hitachi Group
commitment
Corporate Social Responsibility
Report Digest 2008

Message from the President
http://www.hitachi.com/csr/

combine our resources to work for the protection of the
global environment.
The Intergovernmental Panel on Climate Change(IPCC) has said that if global temperatures rise by 2050 toa level that exceeds temperatures in the pre-Industrial era
by 2°C, there will be a profoundly negative impact on the
Earth’s climate. To prevent this, the IPCC believes it will
be necessary by 2050 to stabilize CO2 concentrations toto execute our plan so that the world will say, “Hitachi’s
determination and actions have indeed positively altered
the course of current trends.”

Toward a Sustainable Society:Social Trends and Management Approachproducts worldwide by 100 million tons before 2025.
Reaching this goal will require us to vigorously promotemonozukuri (manufacturing that combines innovativetechnologies with experience gained over many years)
and to convert—to a high degree—all of our products
into solutions that are compatible with the environmentand confront the greatest ecological challenge of our time.
The Hitachi Group has already provided the world

As globalization progresses, there are many Group employees working in every region of the world. At the same time,
the number of stakeholders has increased, making it more
important than ever to have dialogues with them and toenhance management transparency. I will align the Group’s
management approach with social trends and stakeholder
needs, and by doing this, build the foundation for bothbusiness and society to achieve sustainable development.
I would also like to work to ensure that Hitachi
employees worldwide, who support both the company’sbusinesses and their families, can lead happy lives now
and in the future. To accomplish these goals, I hope topromote the creation of a workplace environment where
every employee can be healthy in body and mind, makefull use of their talents, and appreciate the challenges andwith a large number of technologies that meet this standard, including technologies for nuclear power genera-

rewards of social activities, such as work- and community-based volunteering.

tion, as well as for supercritical pressure coal-fired power
generation that is highly effective at reducing a coal power
plant’s negative environmental impact. Additional examples of environmental protection solutions from Hitachi

History will come to recognize the value of what we
do. It is with this sense of conviction and urgency that I
wish to take on these challenges and enthusiastically move
forward with my work, while cherishing the feeling of joy

include superconducting high-efficiency power transmission using amorphous transformers, hybrid drive systems
that reduce CO2 emissions from diesel rail engines, lithium-ion batteries for hybrid cars, and power saving inno-that comes from seeing the smiling faces of happy people.

below 450 ppm.
In December 2007, the Hitachi Group announced
Environmental Vision 2025, a plan that set the ambitious goal of contributing to the IPCC target by helping
to reduce CO2 emissions from the use of Hitachi Groupvations for energy-intensive data centers.
The rate of increase for global warming is exceeding
projections. To protect the environment, including reducing global warming, I would like, as quickly as possible,

July 2008

President and Chief Executive Officer
Hitachi, Ltd.

Hitachi Group
commitment
Corporate Social Responsibility
Report Digest 2008

Message from the President
http://www.hitachi.com/csr/

3

vision

Hitachi’s CSR Vision

Hitachi Is Tackling the Basic Issues Facedby Global Society, Aiming to Realizea Sustainable World through Innovation
The vision of the Hitachi Group is to realize a world thatis safer and more comfortable to live in by harnessing ourwhere our strengths could be fully utilized, including the
global environment, safety, and health and medicine. In

knowledge and technologies to resolve the basic issues
facing global society, based on the Fundamental Credo.
In fiscal 2007, referring to the social issues being

response to global environmental issues, we formulated
Environmental Vision 2025, and members of the HitachiGroup resolved to work closely together to achieve our

discussed in Japan and around the world, including theUnited Nations Millennium Development Goals and theWorld Business Council for Sustainable Development,
we conducted a review of the relationship between theobjectives.
In fiscal 2008, through dialogue with our diverse
range of stakeholders, we will strive to have more stakeholders’ voices reflected in our management approach

problems faced by global society and Hitachi’s businessand social contribution activities. We identified areasand projects in order to promote CSR activities that accord with the best direction for society as a whole.

Hitachi Group Vision
We will contribute to the solution of fundamental global issues, and pursue the realization ofa better, more prosperous global society, inline with Hitachi’s founding spirit, utilizing thegroup’s knowledge and technology.
(Adopted November 2006)

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

4

Hitachi GroupvisionCorporate Social Responsibility
Report Digest 2008

Hitachi’s CSR Vision
http://www.hitachi.com/csr/

CSR Policy of the Hitachi Group

1 Commitment to Corporate Social Responsibility (CSR)

The Hitachi Group, including all its executives and employees, recognizes CSR as a vital part of corporate activity and is therefore committed to a course of social responsibility in accordance with this CSR
policy for the sustainable development of society and business.

2 Contribution to Society through Our Business

The Hitachi Group will contribute to the building of a prosperous andvibrant society by providing safe, high-quality products and services
through business activities based on its excellent research, technology and product development.

3 Disclosure of Information and Stakeholder Engagement

The Hitachi Group will disclose information openly and transparently
in order to maintain and develop a relationship of trust with its various stakeholders, and act responsibly towards them through various
means of communication.

4 Corporate Ethics and Human Rights

The Hitachi Group will undertake its business based on the principles offairness and sincerity, act with the utmost respect for human rights andpursue a high sense of corporate ethics in the global business market
which encompasses diverse cultures, morals, ethics, and legal systems.

5 Environmental Conservation

The Hitachi Group will strive to minimize environmental effects andutilize resources towards the development of a sustainable society thatis in harmony with the environment.

6 Corporate Citizenship Activities

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

7 Working Environment

The Hitachi Group will make every effort to create a pleasant andmotivating working environment for all its employees and to fully support those employees who desire self-fulfillment and self-development
through their work.

8 Responsible Partnership with Business Partners

The Hitachi Group will make every effort to promote fair and soundbusiness practices among our business partners by fostering a common awareness of social responsibility.

Adopted March 2005
(For the specific plans and achievements of each policy, see page 15)

Hitachi’s Response to a Third-Party Expert Opinion on Our CSR Activities

Essential“Communication Reform”

Raising the Quality of
Dialogue with SocietyPeter D. Pedersen

Masahiro Hayashi

Chief Executive, E-Square Incorporated

Executive Vice President and Executive Officer,
and Chair of the CSR Promotion Committee, Hitachi, Ltd.

First, as part of Hitachi’s promotion of CSR communication, I appreciate
the idea of dividing the information provided between the printed medium
with a limited number of pages and the electronic medium, where moredetailed information is provided. Furthermore, I enjoyed the organizationof the printed report, which is simple and easy to understand and contains many officers’ and stakeholders’ opinions. While I also appreciate
the description of how Hitachi is tackling its most important CSR tasks,
I would like to know more about the actual investigation process andwhat role the opinions of stakeholders play in the identification of issues.
I think Hitachi is required to show clearly how it views our greatly changing world, avoiding risks and turning them into business opportunities. I
understand that this year’s report is in the process of change, but I think
more essential “communication reform” may be needed. If Hitachi adopts
the approach of determining its methods based on each target, I believe
the quality of its CSR communication will improve.

For last year’s CSR Report we received various opinions from readers,saying that there were too many pages, that the important message wasdifficult to understand, or that the information disclosed was not enough.
Based on this feedback, in addition to reducing the number of pages byhalf and making the report easier to understand, we produced this digest
featuring the global environmental problems that Hitachi is particularly
focusing on, while providing more detailed information in a PDF file. We
are developing new systems that address these issues: the process forinvestigating important issues reflecting the opinions of stakeholders, aswell as the risk avoidance and converting risk into business opportunities
pointed out by Peter D. Pedersen. We hope to report the results fromnext year onwards. For example, we are promoting dialogues with society on a global level and investigating important issues that have a deep
impact on society and management. We are also striving to have thisinformation refl ected in management decision making and to disclose
related information.

Hitachi GroupvisionCorporate Social Responsibility
Report Digest 2008

Hitachi’s CSR Vision
http://www.hitachi.com/csr/

5

dialogue

Hitachi’s Environmental Strategy

Thinking about the Future of the Environment—
Hitachi Contributes to Reducing CO2 Emissions
by 100 Million Tons in at Least One Year by 2025
[ Dialogue ]Junko Edahiro

Takashi Hatchoji

Bringing Environmental Vision 2025
into the Actions of Every Hitachi Employee

Hatchoji: The Japanese government is advocating theCool Earth 50 initiative to halve CO2 emissions and othergreenhouse gases by 2050. From the perspective of corporate activities, however, nearly 50 years is too long atime. So Hitachi prepared Environmental Vision 2025 toset interim goals for the year 2025, focusing on three approaches: First, we want to contribute to society throughour business activities. Specifically, Hitachi contributes
to reducing CO2 emissions from the use of our products

President, e’s Inc.

Hatchoji: Ms. Edahiro, you are well known as the Japanesetranslator of Al Gore’s An Inconvenient Truth, and you haveconsistently offered proposals to address global environmental problems from the citizens’ perspective. To begin
with, please tell us what is expected of corporations.
Edahiro: I see the global environmental problem as aproblem of human happiness. Our way of life has been
to work at companies, receive money for our labor, anduse this to buy things to realize happiness. But today, themore we buy the worse the global environment becomes,
and that leads to unhappiness for ourselves and for our
descendants. I want enterprises to deeply consider what
actions they should take to create happiness for both present and future generations. In that sense, Environmental
Vision 2025 draws my attention as a longer-term plan for
the Hitachi Group.

Hitachi Group Chief Environmental Strategy Officer (CEnO)

by 100 million tons a year. Next, we intend to strengthen
management to build more harmonious relations with society. Finally, we want to share our environmental understanding through active communications.
Edahiro: Reducing CO2 emissions by 100 million tons ayear is symbolically important, but that figure is difficult
for the average person to grasp. Also, to really establish
your plan as a vision shared throughout your organization you may find it necessary to speed up building a

Key Points of Hitachi’s Environmental Vision 2025
Strengthening Measures to Counter Global Warming• Contribute to reducing CO2 emissions from the use of Hitachi products by 100 million tons in atleast one year before 2025
Strengthening Hitachi’s Environmental Businesses• Work to make all Hitachi Group products Eco-Products by 2025
• Use the Hitachi Group’s total technological strengths to pursue environmental efﬁciency for all
aspects of our business including materials, parts, components, products, systems, services
and solutions• With the global market in mind, develop global warming prevention technologies, invest to
strengthen businesses, and promote collaborative projects with other organizations
Reinforcing overall CSR activities by integrating environmental efforts
with other aspects of social contribution activities

6

Hitachi Group
dialogue
Corporate Social Responsibility
Report Digest 2008

Hitachi’s
Environmental Strategy
http://www.hitachi.com/csr/

Hitachi’s Approach to Achieving
the 2025 Emissions Reduction Target(100 million
tons per year)

Global CO2 emissions extension scenario
Global CO2 emissions halving scenario (compared with 2000)

500

420
400

Including the 100 million ton
CO2 emissions reduction
from Hitachi Group products

300
226
200

230
113

100
0

Target for halving
CO2 emissions

1990

2000

2010

2020

2030

2040

[Source] IEA (International Energy Agency), World Energy Outlook 2007.

2050 (year)

Junko Edahiro is an environmental journalist and translator engaged in speaking,writing and translating on environmental issues. Ms. Edahiro is a member of the
Cabinet Secretariat’s Council on the Global Warming Issue and a visiting researcher
at the University of Tokyo’s Research into Artifacts, Center for Engineering (RACE).

framework for every employee to adopt CO2 reductions
as their own issue.

Hitachi Should Take the Position ofGoing beyond Technology
Hatchoji: The Japanese government has made innovation

one of the main pillars for addressing global environmental problems, and has identified 21 revolutionary technologies required to achieve CO2 emission targets. Hitachi
has experience and knowledge in most of these technologies. I am always keenly aware that, in addition to technological progress, the most important thing is to have newtechnologies adopted by society.
Edahiro: The first point I want to make is that there arelimits to what technology can do to solve environmental problems. People’s expectations for technology havebeen growing every year, but it is important to explain the
distinction between what technology can and cannot accomplish. Otherwise, there is a real risk that people will
eventually lose their trust in corporations pursuing technological development. From now on, companies should
work to accurately convey both the potential and the limits of technology. What’s more, from the perspective of
spreading technology, it will become necessary to change
the assumptions that technologies are based on.
Hatchoji: What do you mean by changing the assumptions?
Edahiro: One example is viewing carbon emissions as li-

abilities, which began as a proposal by European financial
institutions. Japanese enterprises often say “the customer

is king,” but in some cases seeing only from the customer’s viewpoint results in a short-term perspective that will
not move society forward. I think we need to make aneffort to change the viewpoint of society itself by asking
such questions as, “What do we want for the future of theearth?” and ‘What must we do now to achieve it?”Hatchoji: Given the demands for greater corporate interac-tion with society, we need to view and promote our corporate statement “Inspire the Next” with renewed feeling.
I also think that “co-creative partnerships,” in other words
collaboration across organizations, will become immensely important in the future. It should be possible to accomplish a great deal through collaboration that transcends
enterprise boundaries. I expect breakthroughs by working
together with external research institutes and rival companies, as well as the spread of technology through teamwork with customers and research centers.
Edahiro: Yes, there are times when one times one equals
three or even four. I expect Hitachi to continue building
up such strategic relationships.

After the Dialogue
Hatchoji: I found Ms. Edahiro’s opinions on what the public expects from
corporations to be very helpful. I was reminded of our responsibility as a
global corporation to propose new business models in line with our vision
for the future of society, and the importance of broadly conveying ourcorporate approach from the perspectives of our stakeholders. Hitachi
will continue pursuing ideal environmental management while advancing
our environmental strategies.

Hitachi Group
dialogue
Corporate Social Responsibility
Report Digest 2008

Hitachi’s
Environmental Strategy
http://www.hitachi.com/csr/

7

activities

Hitachi Embraces
the Challenge of
Reducing CO2 Emissions
Hitachi’s Approach 1

Generating Electricity
Clean Coal-Fired Thermal Power Generation
to Support Tomorrow’s Electricity Supply
Coal Attracts Renewed Interest
as an Energy Resource

Toward More Efficient
Coal-Fired Electric Power Generation

The IEA (International Energy Agency) estimates that about
1.6 billion people still live without electricity. Total electricity
consumption is projected to rise sharply with the economic
growth and insatiable demand of developing nations.

It is, however, also essential to address the emissions issue
because large quantities of CO2 are released when generat-

So, what types of energy will support this increase inglobal energy consumption? The IEA, estimating future electric power generation by energy source, projects that coalfired thermal power generation will continue to rise andreach 46 percent of total electric power generation in 2030.
The greatest reason for this growth is that coal is a
resource with a stable supply. Coal reserves are plentiful
and distributed across many regions. If resource extraction continues at today’s rate, we may run out of oil in 41
years and natural gas in 61 years, but there are coal reserves for 155 more years, providing a stable supply into
the future. With advances in denitrification and desulfurization technologies, which remove the nitrogen oxides(NOx) and sulfur oxides (SOx) that cause acid rain, coalhas been attracting renewed attention as a resource for the
stable supply of comparatively low-priced electricity.

8

Walter Scott, Jr. Energy Center Unit 4

Hitachi Group
activities
Corporate Social Responsibility
Report Digest 2008

Hitachi Embraces the Challengeof Reducing CO2 Emissions
http://www.hitachi.com/csr/

ing electric power from coal, which is a fossil fuel. Hitachi
has been working to improve the efficiency of coal-fired
thermal power, seeking to reduce CO2 emissions by generating more electricity from a smaller amount of coal.
Coal-fired thermal power plants burn pulverizedcoal inside boilers to generate steam, providing pressure to rotate steam turbine generators. In this process,the electricity generation efficiency increases as the steam
temperature and pressure rises. The technology calledsupercritical pressure thermal power generation is basedon this fact. Hitachi has succeeded in commercializing
ultra-supercritical pressure thermal power generation
with steam at a world-record temperature and pressure of
620°C and 25 MPa (250 times atmospheric pressure).
This technology has improved transmission end (net)efficiency (an indicator of the percentage of input energy
converted into electric power) from 30 percent to 42 percent, reducing CO2 emissions by approximately 20 percent

R&D staff at the integrated research facility for combustion and ﬂue gas
treatment research, Babcock-Hitachi K.K. Kure Division, Akitsu Works,
Hiroshima Prefecture, Japangeneration. Hitachi’s 40 percent market share for denitrification and desulfurization equipment demonstrates this.
The Hitachi Group has constructed eight ultra-supercritical pressure thermal power generation plants in Japan and21 overseas, including the Walter Scott, Jr. Energy Center
Unit 4 in the U.S., making Hitachi a world leader.
Together with J-POWER and the Chugoku ElectricPower Co., Inc., we have begun working on the commercialization of integrated coal gasification combined-cycle
power generation, which gasifies coal as a fuel to turn gas
turbines but also turns steam turbines using exhaust heat.
We are also working to develop exhaust gas CO2 recovery

compared with conventional power plants. Hitachi is now
working to further increase the steam temperature to 700°C
to achieve a transmission end efficiency of 48 percent.

Analysis Technologies Support Reliability
It normally takes 36 months from the start of contruction to completing a thermal power plant. In other words,
three years is needed to prove new technologies. To overcome this limitation, Hitachi has been developing analysis
technologies for computer simulations of the combustion
conditions inside boilers. Hitachi’s simulations showing the
combustion of pulverized coal are among the most precise
in the world. Extremely reliable boilers that can withstandultra-high pressures are a key component for ultra-super-technologies through this joint project.
Coal burning technologies brought about theIndustrial Revolution and remain indispensable for our daily lives. Hitachi will continue striving to develop innovativetechnologies for the future, sustainable use of coal consis-

critical pressure steam power generation. These analysis
technologies have made Hitachi a pioneer in this field.
Since the early 1980s, Hitachi has been accumulating technologies for future coal-fired thermal power

Electric Power Generation Plants (1970 –2030)

High Efficiency Coal-Fired Power Plant
Energy supply
composition ratio(2005–2030)

Average annual
growth rate(TWh)

16,00012,0008,000

tent with the needs and expectations of our stakeholders.

’71–’05 ’05 – ’30
Total
3.8%
2.7%
Coal
3.8%
3.1%
Oil
0.2% -1.0%
Natural Gas
5.0%
3.3%

Supercriticalpressure boiler
Coal

Steam

Stream turbine

Electricity
Controlequipment

Water
AQCS (Air Quality Control Systems)(flue gas treatment)

4,000
0

1970

1980

1990

2000

Generator

2010

2020

2030 (Year)

Coal-ﬁred power generation is projected to continue steadily increasing because of
stable supply and advantageous generation costs.
[Sources] 1997–2002: IEA, “Energy Balances of non-OECD Countries” (2004)
2005–2030: IEA, “World Energy Outlook” (2007)

Flue
gas

Clean gas

The basic process of coal-ﬁred thermal power generation is to burn pulverized coal inside a boiler and generate thesteam to rotate a turbine. The combustion exhaust gas is eliminated after cleaning using desulfurization anddesulfurization equipment. Hitachi has developed all of the technologies needed for more environmentally friendly
coal-ﬁred thermal power plants.

Hitachi Group
activities
Corporate Social Responsibility
Report Digest 2008

Hitachi Embraces the Challengeof Reducing CO2 Emissions
http://www.hitachi.com/csr/

9

activities

Hitachi Embraces the Challenge of Reducing CO2 Emissions

Hitachi’s Approach 2

Using Electricity
Greatly Reducing Electric Power Consumption
at Data Centers by Completely Redesigning Facilities

Hitachi Universal Storage Platform

Estimated IT Equipment Electric Power Consumption(trillion Wh)

12 times

600

550

500
400
5 times300

240
Televisions

200
100
0

PCs
Servers

47
2006

Networkequipment

2025

2050 (Year)

Above: The Ministry of Economy, Trade and Industry projects that electric
power consumption from IT equipment will increase to ﬁve times the2006 level by 2025 and 12 times by 2050.
Left: Katsuya Koda (General Manager, Strategy Planning & Development
Ofﬁce, Information and Telecommunications Systems Group, Hitachi,Ltd.) is in charge of the data center energy reduction project

While the IT revolution is improving efficiencies in suchdiverse areas as production, distribution and communications, increasing electric consumption by IT equipment
is emerging as a new energy problem. This is most conspicuous at data centers, which house company servers†1and storage devices, and provide maintenance and operation services. In recent years, along with the dramatic advances in IT equipment integration and performance, theheat generated by servers and storage devices is sharply
up. Consequently, data centers now need a great deal ofenergy to reduce the heat from IT equipment.
To address this problem, in October 2007 Hitachi
launched the Cool Center 50 data center energy reduction
project, with the goal of reducing data center electricity
consumption by up to 50 percent over the next five years.
Hitachi will also build a world-class environmentallyfriendly data center fully adopting state-of-the-art green
IT technology†2 in 2009.
Investigation of the electricity consumed at data cen-for data centers, uninterruptible power supplies (UPSs),
electric power transformers, and large-scale plant construction. Making use of all this expertise, we are aggressively going ahead with the Cool Center 50 project.
To achieve the goal of up to a 50 percent reduction indata center electric power consumption, Hitachi is going
to introduce highly efficient air conditioners and electricalequipment that Hitachi has developed, and will optimize
the placement of IT devices and air conditioners. These
activities are expected to achieve a 20 percent reduction
in electric power consumption. We will realize the full
50 percent reduction by introducing servers and other IT
equipment that conserve energy, and by using other energy conservation operating technologies.
Our new data center will also function as a prototype
test bed. We intend to broadly disseminate the technologies developed by the Cool Center 50 project to the world
at large as one of our contributions to global environmental conservation.

ters tells us that the IT equipment itself consumes lessthan half of the total power. Most of the rest is used by facilities such as air conditioning, power supply units, andother peripheral equipment. The Hitachi Group has accumulated broad know-how about power-saving IT equipment, highly efficient air conditioning especially designed

10

activities
Hitachi Group
Corporate Social Responsibility
Report Digest 2008

Hitachi Embraces the Challengeof Reducing CO2 Emissions
http://www.hitachi.com/csr/†1 Servers
Computers for business use.
†2 Green IT Technology
Reduction of the environmental load from IT equipment, and IT use linked to environmental
conservation.

activities

Hitachi Embraces the Challenge of Reducing CO2 Emissions

Hitachi’s Approach 3

Controlling Electricity
Commercialization of Hybrid Drive Ecology Trains
Kiha E200 operating on the Koumi Line

Coasting

Engine generates
electricity

Acceleration
Batteries
discharge

Train
Stops

Maximum Speed

Braking~25 km/hr ~30 km/hr

EngineStartsTrain
StartsElectricity Generation
Batteries Charging & Electricity Discharge

Hybrid Drive System Electricity Control

Batteries arerecharged

Above: The hybrid drive system starts the train using batteries, andrecharges the batteries using electricity from braking and from theengine while the train is running.
Left: Staff of the Hitachi, Ltd. Industrial Systems Group, Transportation
Systems Division who developed the hybrid drive technology (standing infront of the ﬁrst electric locomotive manufactured in Japan).

Today, railroads are considered to be very energy efficienttransportation systems. However, compared with electrictrains, the diesel trains that run on non-electrified lines
have low energy efficiency, and their exhaust gases contain large quantities of nitrogen oxides (NOx) and otherhazardous substances. Nevertheless, considering the construction costs of electric lines and other above-groundequipment, in practical terms it would be difficult to electrify the non-electrified segments of the Japanese railway
network, which are mostly local branch lines. Presently,
there are approximately 3,000 diesel railcars running inJapan, and they account for less than 6 percent of the nation’s total rolling stock.
The energy efficiency of electric trains has been
greatly increased through the introduction of electrical
regenerative brakes, which feed energy generated frombraking back into the electric lines for use by other trains.
Capturing the braking energy generated by diesel trains—which run on engine power—is more difficult, and thathas been one of the main reasons for their relatively poor
energy efficiency.
To solve this problem, Hitachi has been jointly working, since 2001, on the commercialization of a hybrid
drive system with the East Japan Railway Co. ( JR East).
One easy way to understand this approach is to imagine

trains that carry their own electric power plants. The system’s basic configuration is to use the diesel engine to
produce electricity and then use that electricity to drive
the motor. Lithium-ion batteries are placed in between
the generator and the motor, enabling the reuse of energy
generated from braking, just as in hybrid cars.
Of course, this configuration has different problems
than those associated with hybrid cars. To eliminate noise
inside train stations, the engines are stopped and the motor runs on batteries alone until a speed of 25 km perhour is reached. For that reason, the batteries must be
charged when the trains arrive at train stations. To makethis possible, Hitachi has developed battery charge management control technologies that make detailed assessments based on such factors as train running speed andthe slope of the railway tracks.
JR East’s Kiha E200 hybrid railcar series, the world’s
first in commercial use, have been in operation on theKoumi Line in Nagano, Japan since the summer of 2007.
Compared with conventional diesel trains running on thesame line, the Kiha E200 railcars reduce fuel consumption by 10 percent and emissions of harmful substancesby 60 percent. Hitachi will continue striving to improve
efficient electricity control technologies to further reduce
the environmental impact from railways.

Hitachi Group
activities
Corporate Social Responsibility
Report Digest 2008

Hitachi Embraces the Challengeof Reducing CO2 Emissions
http://www.hitachi.com/csr/

11

CSR Management
CSR Activities of the Hitachi GroupThe CSR activities of the Hitachi Group are following a roadmap
to a better, more affluent society for all humankind

A CSR group meeting

For more information in PDF file format, please visit the following Web site:

http://www.hitachi.com/csr/: Topics not covered in this digest: Topics covered in greater detail in related PDF ﬁlesToshiaki Kuzuoka

Corporate GovernanceCompliance Education

Strengthening Governance

Information Security and theProtection of Personal Information

Internal Control

Export Management

Group Management

Achieving Conscientious
Corporate Management Backed
by Transparency
Vice President and Executive Officer,
in Charge of Legal & Corporate Communications,
Corporate Brand Management, and Management Audit, Hitachi, Ltd.

Risk Management

CSR Promotion Activities

Protecting Intellectual Property

One of Hitachi’s founding spirits is sincerity. From our earliest

Toward Realization of
the Three-Year CSR Roadmap

Respect for Human Rights

days, we highly valued strong ethics. Yet, the standards andHuman Rights Policy

norms expected of us today are undergoing major changes—

A Total Commitment to
Human Rights Awarenessagainst a backdrop of increasingly global enterprise, coupled

Full Implementation of
the CSR Policy

with more diverse stakeholders. To adapt, we must not only

Compliance andRisk Management

adhere to international standards and guidelines, but ensure

Compliance Framework

management transparency and find mutual understanding withstakeholders. In addition, we will take theThree-Year CSR Roadmap Concept
Toward an advanced
global CSR company

Medium-Term Business Plan

Level of CSR Evolution

Realization of ideals

2010

initiative to set new social norms and standards of expectation. As a global corporation, we want to boost every employee’s
ethical awareness while respecting human

Determination ofcurrent statusbased onthe CSR Policy of
the Hitachi Group

April 2006

Verification andvaluation of
CSR activities

April 2007

Optimization of
CSR activities andimplementation ofstrategic CSR

April 2008

Group-wide efforts
to resolve issues
in society

rights, cultural diversity and values. In
addition, our other activities need to besocially beneficial and build stronger
ties of trust with society as a whole.

March 2009

Corporate Governanceand Risk Managementlevel, including responsibilities for the design and operation of

Striving for Continual Enhancements

levels of corporate scale and business content. Management

internal controls. Accordingly, Hitachi Group companies are
required to revise, document, and evaluate the effectivenessof their operations in line with common guidelines for specificassessment of each company is collected at the group level,
and is reported to Hitachi, Ltd. along with the certification.

Policy on Information Disclosure
Hitachi, Ltd. communicates with shareholders and investorsin accord with a disclosure policy that sets the following basic
policy: Hitachi seeks to maintain and develop trust relation-

Strengthening Governanceships with its stakeholders, including shareholders and otherinvestors, customers, business partners, employees andHitachi, Ltd., a company that operates on the committee

regional communities. It will fulfill its responsibility to stakehold-system,†1 endeavors to boost the efficiency of management

ers by disclosing information in a fair and highly transparent

oversight by bringing in outside directors and speeding up

manner, and by conducting various communication activities.

decision making by giving executive officers broader powers.

Hitachi discloses not only information required by law and/or

We have also set up a group-wide system of internal controls,

regulation, but also management and financial information it

strengthened governance and management efficiency, andregards as useful in deepening stakeholder understanding of

have worked hard to earn the trust of all stakeholders.

Hitachi management policy and business activities.

To reinforce the Group headquarters’ role, we have established guidelines on the environment, compliance, risk manage-

Business Continuity Plans (BCPs)†4

ment, and internal audits. As well, we have implemented internal
audits of Group companies. We are striving to boost corporate

In August 2005, Hitachi set up an Expert BCP Promotion

value through close communications with all stakeholders.

Panel, which in December 2006 completed the Guidelines
for Developing Business Continuity Plans. Using the example

Internal Control

of an electronic components plant hit by an earthquake, theguidelines clearly prioritizes the operations that should be

As a public company listed on the NYSE, Hitachi, Ltd. is reg-

restored, depending on estimated risk and impact of inter-

istered with the U.S. Securities and Exchange Commission

ruptions. Using the BCP guidelines, all production plants and(SEC) and is subject to the Sarbanes-Oxley Act (SOX).†2 In

offices can operate more efficiently and employ level-headed

fiscal 2008, Japan will enforce J-SOX,†3 a similar law for therisk management procedures following an emergency.

internal control assessment and reporting.

In Februar y 2007, representatives from 110 Group

Hitachi is committed to full compliance with all laws. But

companies got a detailed briefing on BCP policy. By Marchbeyond that, to fulfill important social responsibilities, we are2008, major Group companies had formulated BCPs. In

working to re-engineer internal control systems by clarifying,

April 2008, for a global outbreak of avian (bird) flu and otherexamining, and visualizing management and operational frame-

strains of influenza, we set up a special organization called

works and taking steps to bolster transparency and businessthe Risk Management Headquarters. With the president serv-

credibility, as well as reinforcing the management structure.

ing as CEO, this organization plays a central role in ensuring

Hitachi, a conglomerate of many companies, has ad-

the safety of Group employees and their loved ones. We areopted a framework that assigns accountability at the groupadding resources to the development of BCPs for a range ofsocially indispensable Group operations, including those for

Hitachi Group Internal Control Assessment Framework

healthcare, security, and social emergencies.

Financial
Services
AgencyHitachi, Ltd.
CEO and CFO*2
ReportInternal Control
Committee

Internal Control
Committee Office

Board of Directors
Audit Committee
Internal audit
reportInternal audit
reportInternal Auditing
OfficeMonitoring

Certiﬁcation, Management
Assessment Report*1 SEC:
Securities andExchange Commission*2 CFO:
Chief Financial Ofﬁcer

Hitachi Group HQs(Hitachi Group HQsand Hitachi, Ltd.
Business Groups)

ReportReportAudit

Independent auditors

SEC*1

Manegement
assessment
reportHitachi Groupsubsidiaries

Hitachi GroupCSR Management Corporate GovernanceCorporate Social Responsibility
and Risk Management
Report Digest 2008
http://www.hitachi.com/csr/†1 Committee system
A corporate governance system where a board of directors makes basic policy decisions
and oversees the execution of business by executive officers, while the executive officers,
appointed by the board of directors, execute the company's business affairs†2 Sarbanes-Oxley Act (SOX)
Section 404 of this act, enacted in July 2002, mandates company management with the
responsibility of establishing, maintaining, and evaluating internal control over financial
reporting, and requires that control be assessed by independent auditors.
†3 J-SOX
A framework for evaluating and reporting internal control over financial reporting under theJapanese Financial Products Transaction Law, which came into effect in April 2008
†4 Business Continuity Plan (BCP)
A plan for ensuring the continuation of core operations and prompt restoring of operations tonormal in the event of a disaster or accident.

13

CSR Promotion
Activities

seven Asian countries, as well as in North America. In China,

A Global Undertaking Shapedby a Strategic Perspective

held “Ideas Competition” to solicit innovative ideas on CSR ac-

we integrated CSR lectures into our Group-wide training programs for new employees in an effort to ensure that they get asolid understanding of CSR from their first day. In Europe, we
tivities from employees and reward those who share ideas that
we can use. We produced e-learning content for new ideas
and drew as many as 135 candidates.
Starting in fiscal 2008, we will develop new e-learning
courses in 12 languages, including English, Chinese, German,
and French, and will distribute them to overseas Group companies. We have also expanded the range of our workshops andare striving to improve Group employee awareness of CSR.

Toward Realization of
the Three-Year Roadmap

Every year, Hitachi gauges employees’ CSR awarenesswith the Business Process and Opinion Survey. In fiscal 2007,

In 2006, the Hitachi Group created the Three-Year CSR

about 80 percent of surveyed employees of Hitachi, Ltd. re-Roadmap, a medium-term plan for CSR activities that reflects

sponded that they “think Hitachi is engaged in CSR-related

stakeholders’ expectations and requirements and aims toactivities,” essentially the same percentage as 2006. This in-make Hitachi an advanced global CSR company. In line withdicates that Hitachi has cultivated fairly complete, widespreadthat roadmap, Hitachi has been pursuing CSR activities withawareness and understanding by employees of CSR-related

goals set in a variety of fields.

activities by distributing CSR reports and by publishing CSR

In fiscal 2007, we prepared the Corporate Ethics andinformation on internal and external Web sites. We will continue

Compliance Handbook and took steps to strengthen compli-

to promote awareness through ongoing employee education

ance. Also, we sought to have Group companies around theprograms and the dissemination of extensive CSR informationworld cultivate a heightened awareness of CSR. To launch an

related to our business operations from a global perspective.

array of strategic CSR activities in fiscal 2008, we selected
themes common throughout the Hitachi Group, as well as
evaluation criteria tools for visualizing CSR activities.

Full Implementation of the CSR Policy
In 2006, Hitachi prepared the CSR Policy of the Hitachi Group
Guidebook and distributed it to about 9,700 managers. English
and Chinese language versions were also prepared and are
now being used by 90 Hitachi Group companies around theworld. Furthermore, CSR e-learning classes have been set up
and are now in use by 68 Group companies in Japan.
For overseas Group companies, we hold workshops designed to instill a better understanding of CSR fundamentals,
local social issues, and Group CSR policies. In fiscal 2007, we
held workshops and seminars for more than 150 managers in

topicsA sample e-learning screen used for “Idea Competitions” in Europe

Hitachi Earns Excellent Corporate Citizen in China
and The Most Responsible Company Awards
Hitachi (China) Ltd. and Hitachi Elevators (China) Co., Ltd. (see page 30) won
the Excellent Corporate Citizen in China
Award, sponsored by China’s Ministry of
Civil Affairs, the Committee of Corporate
Citizenship, and the China Central Television Business Channel. Chosen by experts
and private citizens, companies receive
this award for corporate performance andsocial responsibility. In fi scal 2007, about

14

Hitachi GroupCSR Management CSR Promotion Activities
Corporate Social Responsibility
http://www.hitachi.com/csr/
Report Digest 2008

50 companies from China and abroadwere selected.
Hitachi (China) Ltd. won the third Most
Responsible Company Award, becoming the fi rst Japanese company to do so.
This award is sponsored by the ChineseNews Weekly, the Chinese Red Cross
Foundation, and the China Consumers’
Association.

Results of CSR Activities in Fiscal 2007 and Goals/Plans for Fiscal 2008
This table summarizes the main CSR activities and results based on the Hitachi Group Three-Year Roadmap
in fiscal 2007 as well as plans for future activities.
CSR Policy of the Hitachi Group

Results in Fiscal 2007

Achievement
Level• Ensure that all employees of overseas
Group companies are familiar with the
CSR Policy of the Hitachi Group• Prepared CSR e-learning courses (in12 languages) for use overseas andimplemented them ﬁrst in Europe• Held CSR workshops and seminars
overseas (in North America and seven
Asian countries)• Incorporated CSR training into theeducation curriculum for new company
employees (in China)

✦✦✦

P. 14

• Implement CSR e-learning courses in
the Americas as well as China and other
Asian countries• Continue holding CSR workshops andseminars overseas• Visualize of CSR activities (development
and use of evaluation tools)• Organized social expectations by CSR
focus and prepared (draft) evaluation
tools for CSR activities

✦✦

P. 14

• Engineer plan-do-check-act (PDCA) cycle
through the adoption of Group-shared
CSR visualization tools (tentative name)• Select Hitachi Group’s CSR activities• Focused on social issues in relation to
Hitachi business operations and selected
the environment as a common theme✦✦✦

P. 4–5, 14• Incorporate materiality process anddeﬁne the material issues• Steadily implement various measures bySupervisory Ofﬁce for MONOZUKURI• Conduct Group-wide sharing of in-house
good practices of PS risk assessment*1• Re-implemented exhaustive quality andreliability education through, for example,
training for general managers to further
strengthen monozukuri (manufacturing)• Reorganized quality control benchmarks
and standards, and promoted fullcompliance✦✦✦P. 19–20• PDCA cycle-driven work process
improvement and full compliance• Identify themes for CS activities ineach business and promote activities toimprove CS• Conducted ﬁeld surveys of CS (customer
satisfaction) activities by three businessgroups and two Group companies, andidentiﬁed issues for attention

✦✦

P. 20

• Skills development of sales divisions
aimed at boosting CS activities

3. Disclosure of information andstakeholder engagement• Formulate Global Security Guidelines• Determine appropriate contents andscope of information disclosed to themedia and investors• Hold regular progress reports on
structural reform of business, based on
management policies and improvement of
IR activities• Formulated Global Security Guidelines• Clearly documented and implemented
disclosure policies• Held ﬁve business group IR presentations
during the year
• Publicized management policies using avariety of opportunities

✦✦✦

P. 13

• Expand the dissemination and disclosureof information highlighting priority
initiatives• Expand communication with stakeholders
in Japan and overseas• Reﬁne CSR Web site and improve searchfacility

4. Corporate ethics andhuman rights• Review Business Ethics Handbook andpromote education• Revised as Corporate Ethics andCompliance Handbook and distributed it
to employees in Japan• Implemented compliance education inthree Asian countries✦✦

P. 16–17• Implement corporate ethics and compliance education programs that utilize
the Corporate Ethics and ComplianceHandbook• Continue implementing complianceeducation programs in Asia

5. Environmental conservation• Formulate separate integrated environmental management system (EMS)
plans for business groups and for Group
companies• Drafted outlook and plans for the creationof an integrated environmental management system (EMS) for business groups
and Group companies• Hitachi Global Storage Technologies
earned integrated EMS certiﬁcation (forintegrating 10 plants: two domestic, eightoverseas)

✦✦✦

P. 27

• Earn integrated EMS certiﬁcation for fourGroup companies• Increase Super Eco-Product registration
ratio to 8%• Register 8 Super Eco-Factories• Achieved 8% Super Eco-Product registration ratio• Registered eight Super Eco-Factories✦✦✦

P. 28–29• Boost Super Eco-Product registration
ratio to 15%• Register 16 Super Eco-Factories

6. Corporate citizenship activities• Implement programs using the global
environment as a theme• Expand support programs in education(expansion of regions for promoting
Universal Design)• Implemented overseas programs on
environmental themes (EU-Hitachi
Science and Technology Forum, China
Fellowship Program)• Planned and implemented a reforestation
volunteer tour to China• Extended and implemented educational
assistance programs (Universal Design) in
Nagoya and Yokohama. Implemented 19
elementary school programs, including in
Tokyo

✦✦

P. 21–22• Commence alignment of charitable
activities with business objectives• Implement programs on global environmental themes• Plan and pursue new social contribution
programs to satisfy needs in emerging
countries• Plan and pursue existing social contribution programs for aging and other social
issues• Expand educational programs (forexample, Universal Design in new regions)

7. Working environment• Promote HR diversiﬁcation• Enhance activities for diversity (Groupwide information sharing, hiring womenmanagers)• Continue implementation of global
manager training (1,000 trainees)• Encouraged diversity awareness at all
Group companies, hosted forums for
managers and HR administrators anddisseminated information through Web
sites and other channels• Promoted active appointment of female
managers• 800 personnel had global manager
training✦✦✦

P. 24–25• Promote improved diversity awarenessGroup-wide• Continue encouraging active appointments of female managers• Plan and pursue initiatives (develop andimplement trial training curriculum) for
reafﬁrming Hitachi founding spirit andideals

8. Responsible partnershipwith business partners• Monitor CSR activities of business
partners and establish evaluation method• Qualitatively improve the environmental
management systems of green suppliers
through HI-KES *2• Develop environmental procurement
courses• Implemented substantive monitoringof major suppliers (140 companies)
using checklists prepared by the Japan
Electronics and Information Technology
Industries Association (JEITA)• Assorted education courses (once amonth), aided small and medium-size
suppliers to develop environmental
management systems

✦✦✦

P. 23

• Have Group companies implement CSR
monitoring of suppliers and share supplierinformation• Assist small and mid-size suppliers to
improve environmental management
systems through MMM Club*3 activities

1. Commitment tocorporate social responsibility

2. Contribution to society
through our business

Activities in Fiscal 2007

*1 PS (product safety) risk assessment: The process of assessing the extent of risk to product safety anddetermining whether that risk can be tolerated.
*2 HI-KES: Activities implemented by Hitachi to support the environmental safety programs of suppliers based on the
Kyoto Environmental Management System Standards (KES; see page 23), a speciﬁed non-proﬁ t organization.
*3 MMM Club: An organization run primarily by suppliers who have acquired KES environmental certiﬁcation through
Hi-KES activities. The three Ms come from the ﬁrst letter of mottainai (reducing wastefulness).

Page(s)Fiscal 2008 Goals/Plans✦ ✦ ✦ : Achieved✦ ✦ : Partially achieved

Hitachi GroupCSR Management CSR Promotion Activities
Corporate Social Responsibility
http://www.hitachi.com/csr/
Report Digest 200815

Total Commitment toCompliance
A Stronger Ethical and Legal
Compliance-Oriented Awareness

The Corporate Ethics and Compliance Handbook
Table of Contents
Sincere and Fair Business Activities• Sales Activities• Provision of Safe High-Quality Products and Services• Observance of Engineering Ethics• Procurement Activities• Respect of the Hitachi Brand
Environmental Protection

To have a stronger CSR focus and to account for recent

Relations with Society• Disclosure of Company Information• Use of Inside Information and Prevention of Insider Trading• Contribution to Local Communities• Relations with Politics and Government Administration• Prevention of Anti-social Transactions• Observance of Laws Governing Imports and Exports• Observance of Laws and Respect of the Culture and Customs of
Each Nation and Region• Regarding Gifts, Business Entertainment, Etc.

changes in the law, Hitachi, Ltd. has completely revised theRespect of Human Rights

Compliance Education
Raising Compliance AwarenessBusiness Ethics Handbook that all employees—including
temporary staff—relied on as a code of conduct and reissued it as the Corporate Ethics and Compliance Handbookof Hitachi. Specifically, we expanded the sections on human rights, information disclosure, and contributions to local

Management Foundations• Management and Use of Information• Management and Preservation of Company Assets• Arranging a Work Environment That Draws Out Employee
Strengths
Revised February 2008.

societies, and made other subjects easier to understand. In
fiscal 2008, we will use this revised handbook for training andeducation programs and will have all Group companies strive

In fiscal 2008, we plan to increase education by holding

for heightened ethical awareness and renewed commitment

seminars in more Asian countries. While respecting the local

to total compliance.

laws and regulations, we will strive to develop employees withhigh ethical standards.

Seminars in Asia

Over 100 Hitachi Group companies are operating throughout

Protecting Personal Information

Asia (in seven countries excluding Japan and China). Ensuringthat every employee has strong ethical standards requires

In line with our Policy for Information Security and Standards

special emphasis on local laws and regulations.

on Information Security Measures, we have worked hard to

Hitachi Asia, responsible for operations in the Asian

prevent information leaks and unauthorized disclosure of

region, has been holding Corporate Ethics and Complianceinformation by holding e-learning courses for all employees,

Seminars for Group companies. In fiscal 2007, around 100

including temporary workers, and by implementing periodic

managers participated in seminars held in the Philippines,

audits. In February 2007, we earned Japan’s Privacy MarkIndonesia, and India.

certification.†1 In July 2007, Odaira Memorial Tokyo Hitachi
Hospital became the first corporate-affiliated hospital in Japanto obtain that certification, following an examination by ascreening organization specialized in healthcare.
In 2007 alone, 17 Hitachi Group companies earned
Privacy Mark certifications, and as of March 2008,
the total rose to 58. Additional Hitachiaf filiated hospitals are seek ing
certification in fiscal 2008 and willreinforce personal information
management as they prepare
for the scheduled renewal of thePrivacy Mark in February 2009.

A300031 ( 0 1 )Privacy Mark (Japan)

A corporate ethics and compliance seminar in Asia

16

Hitachi GroupCSR Management Total Commitment to
Corporate Social Responsibility
Compliance
Report Digest 2008
http://www.hitachi.com/csr/†1 Privacy Mark
Certification awarded by the Japan Information Processing Development Corporation (JIPDEC)
to companies and organizations recognized for properly managing personal information.

Respect for
Human Rights

Provisions declaring respect for human rights(1) We will respect every person’s character and individuality
We will respect every person’s character and individuality in the recruitment and treatment of employees, the conduct of commercial
transactions, and all other company activities, and not engage inany acts that impair individual dignity or discriminate on the basis ofsex, age, nationality, race, ethnicity, ideology, belief, religion, social
status, family origin, disease, disability, etc.

Social Contributions Backed
by a Humanitarian Philosophy(2) We will establish information ethics
We will establish information ethics in respect of human rights andthe maintenance of security in information handling, to prevent inadvance the emergence of problems from personal information
leaks, computer viruses, and unauthorized access.

Human Rights Policy
In the global business arena, it is vital that companies respect cultural diversity and conduct themselves with integrity
and honesty, backed by a strong respect for human rights.

(3) We will advance employment and commercial transactions
with proper consideration to corporate social responsibility
We will hire employees in accordance with the governing domestic,
foreign and local laws in each country and region. For example, wewill not use child labor which employs children below the minimum
working age or coerced labor that is against the will of the workers.
Moreover, we will not procure goods or services from enterprisesthat utilize child labor or forced labor.

Supported by a humanitarian philosophy, Hitachi respects the

Excerpted from the Corporate Ethics and Compliance Handbook

human rights of all its stakeholders. We also respect the international ideals of the Universal Declaration of Human Rights,
the International Covenants on Human Rights, and the United

Respect for Human Rights in the Pursuit of Business

Nations Global Compact †1 and we are striving to improve theProcurementt Partnerships
t Fair trade

general level of awareness with all Hitachi stakeholders.

A Total Commitment to
Human Rights AwarenessWorking Environmentt Clean, safe workplacest Support for work-life balance

We link awareness of human rights to actions by highlighting human rights in the Corporate Ethics and ComplianceHandbook of Hitachi (see page 16), making certain that all

Products
t Consumer safetyt Universal Design
Respectfor
Human Rights

Hiring and Managing Personnelt Employing challenged peoplet Support for the careeradvancement of women

Information Disclosuret Accessibilityt Protection of personal information
Environmental Protectiont Preserving the global
environment for future generations

Social Contributions
t Activities to promote a humanitarian spirit

employees are aware of these issues.
To assess how far awareness of human rights has
spread, we conduct internal audits of Hitachi Group compa-

experts. In the future, we will act on these views and publish
the progress made on respect for human rights.

nies throughout the world, verify education programs, andmonitor complaints and requests for counseling. In fiscal 2007,
we sought the views and recommendations of human rights

voices†1 Global Compact
Universal principles relating to human rights, labor, and the environment proposed by then-UN
Secretary-General Kofi Annan at the World Economic Forum in January 1999.

Human Rights at the Core of CSR

Makoto Teranaka
Secretary-General, Amnesty International JapanTo date, corporate violations of human rights
have been seen in many areas of Africa,
Asia, and elsewhere. Moreover, with globalization, the human rights gap between
companies and society has widened. To
close this gap, it is crucial to make respectfor human rights a core part of corporatesocial responsibility. Many companies havebeen urged to show more consideration forhuman rights during procurement. I urge
you, instead of viewing it as a procurement
issue, to consider respect for human rights
as a management policy.

Hitachi GroupCSR Management Respect for Human Rights
Corporate Social Responsibility
http://www.hitachi.com/csr/
Report Digest 2008

Hitachi’s CSR reports address the issue of human rights. However, they should
detail specific efforts, along with progress.
It is necessary also to measure the effectiveness of those efforts through dialogues
with independent organizations and to put
their conclusions and recommendations
into action. In particular, I would like to see
Hitachi disclose more information about
how it addresses human rights issues as
they relate to employees, suppliers, andregions of operation.

17

Next Society
Hitachi: Living Together with Society

Hitachi’s innovations and activities are creating a rich society together
with our customers, suppliers, employees and local communities

Genki Club—an in-company day care center
supporting a balance between work and family

For more information in PDF file format, please visit the following Web site:

http://www.hitachi.com/csr/: Topics not covered in this digest: Topics covered in greater detail in related PDF files

Monozukuri and Services fromthe Customer’s Perspective

Overseas Social Contribution
Activities

Toward the Strengthening ofMonozukuri

Collaborative Creation
with Suppliers

Quality Assurance (QA) Activities
Building customer feedback
into our products
Universal Design

Guidelines for Procurement
Activities
Sharing CSR awareness
Partnership

Communication with
Shareholders and Investors

Improving Supplier Relations with an
Open-Door Policy

Policy on Information Disclosure

Employees, the Key to
Hitachi’s Future

Proactive IR Approach
General Meeting of Shareholders
Basic Policy for Prevention of
Takeovers
Results of External SRI Assessments
in Fiscal 2007

Working in Harmony
with Local Communities
Awareness of social issues
Educational initiatives
Environmental initiatives
Social welfare initiatives
Six Foundations Promote Diverse
Activities
Collaboration with NPOs
Support for volunteer activities

Building a Corporate Culture of
Tackling Problems
Masahiro Hayashi
Executive Vice President and Executive Officer of Hitachi, Ltd.,and Chair of the CSR Promotion Committee(in charge of sales and global business management)

Hitachi is engaged in a wide range of projects and activities
throughout the world. Therefore, I believe it is Hitachi’s responsibility to contribute to local communities—around the globe—
by responding to the problems faced by all regions, countries,
and people. As a corporation that pursues monozukuri, we
have an immense responsibility for the quality and reliability ofour products and services.
It is Hitachi’s mission to create new value by providing

Creating a work-friendly
corporate culture

innovative products and services intended to help realize aOpenness: Promotes the Expressionof Employees’ Full Potential

sustainable society. To fulfill this mission,

Challenge: Supports Growth

we must reconsider the origins of mo-

Diversity: A Base for the Healthy
Expression of Individuality
Securing the Health and
Safety of Employees
Supporting enriched lives for
employees and their families

nozukuri and further promote initiatives
for the diversification of employees andways of working. This will enable us tobuild a corporate culture where all employees can create new value, as well
as tackle difficult problems facing
current and future generations.

Monozukuri andServices from theCustomer’s Perspective

electric shock.. We also do forced ignition testing to confirm
product safety in the unlikely event that a product catches onfire, and take other steps to ensure thorough safety precautions. Risk assessments are done based on broad-based cooperation among Hitachi divisions and research laboratories.

Response in Case of
Product Accidents

Quality First to Take First Priority

If any of our products malfunction, we work to minimize adverse effects for consumers, mobilizing all divisions affected
to mount a rapid response. In serious cases, where consumer
safety is involved, we assess the scope of damage and thoroughly investigate the cause of the accident. We then submit

Improving Product Safety

a status report to top management within 24 hours of the incident. Therefore, we strive to implement a quick, appropriate

The Hitachi Group is dedicated to providing safe products

response, while simultaneously sending timely reports to theand services by combining wide-ranging expertise with tech-

Ministry of Economy, Trade and Industry (METI) and publishingnologies covering planning, research, design, manufacturing,

information about the incident on our Web site.

quality assurance and maintenance.

If necessary, we recall a product over concern about

When developing products, our top design and verifica-possible malfunctions or accident, then we make a publiction priority is the safety of life, health and property. For exam-

announcement through newspaper advertisements and/or

ple, we design consumer electronics with safety mechanisms

Web site announcements to inform consumers about repairs

to prevent, if a component fails, serious injury due to fire oror exchanges.

Response Flow in the Event of Product Malfunction
Obtaining information

Customer liaison

Fire department, police department

Company ofﬁcers

topics

Product recall

ReportOnsiteinvestigation
Product
investigation

Investigation ofdamage scope

Decision concerning
serious product accident

Serious productaccident

Investigative committee on
serious product accidents

Disposition and reporting

Flow of information

Ministry of Economy,
Trade and Industry

Conﬁrming
accident status

Investigation of
cause

Customer

Quality Assurance Division

Accident
occursNewspapers
Web site
Notiﬁcation

Sharing of information

Hitachi Appliances Wins METI First-Place Award for Companies
That Have Contributed to Product Safety
Hitachi Appliances, Inc., a Group company
that makes home electronics, won METI’s
first Award for Companies That Have Contributed to Product Safety, placing first in
the Large Manufacturers and Large Importers Division. This award, established during
2007, was presented by METI Minister Akira
Amari last November. It encourages independent action that promotes product safety, fostering a safer, more secure society.

Hitachi Group
Next Society
Corporate Social Responsibility
Report Digest 2008

Monozukuri and Services fromthe Customer’s Perspective
http://www.hitachi.com/csr/

Hitachi Appliances
received the award
for many safety-related activities, including using systems that gauge acceptablelevels of risk and systems that recognize
employees who discover faulty products,
as well as educational programs that help
employees identify, assess and experience
incidents related to product safety.

19

Response to Product Defects:
Free Repair of Electric Heating Coils

to better understand customer needs and issues, as well as

Some of the 177,073 single and multiple electric heating coils

survey employee opinions on the workplace environment,that Hitachi manufactured from 1984 through 2004 uninten-

which includes internal communications and decision-making

tionally caused fires. The fires were caused because the ON

speed. The results are combined with the customer surveys

switch protruded from the coil body, and therefore was prone

and analyzed from many perspectives to assess how Hitachi’s

to inadvertent contact with objects and people. The coils

activities are reflected in customer satisfaction, with the goal ofturned on accidentally, and in some cases, ignited material

making improvements.

the quality and speed of our response to requests. We also

placed on top of them.

The customer surveys for fiscal 2007 were reorganized

In response, Hitachi Appliances and Hitachi Housetech,to help customers respond more easily to the Information &both manufacturers and sellers of the coils, set up an electric

Telecommunications Systems Group, and we have begun toheating coil countermeasures headquarters, and, through TV

send to customers any findings that they might find interestingand newspaper ads, gathered information from consumers

or useful.

and are now making improvements in the switch design.
In addition, 13 companies in the electric heating coil industry (including the two Hitachi companies) established theThrough these efforts, we are raising employee awareness, promoting communication within the Hitachi Group, andincorporating the customer’s viewpoint into our operations.

Council on Electric Heating Coils for Small Kitchen Units in June

For the fiscal 2007 customer survey, we obtained cus-

2007, which jointly published newspaper ads, and investigatedtomer understanding and cooperation for giving, in an amountand implemented measures to prevent a reoccurrence. As ofequivalent to the compensation that would have gone to

January 2008, 61.2 percent of the Hitachi-manufactured units

survey respondents, a donation to the non-profit organization

had been repaired or recalled. To prevent further accidents

Good Earth Japan (see page 22).

and strengthen product safety, these efforts will continue.

Building Customer Feedback
into Our Products

Universal Design
Universal Design (UD) is the concept that all products andWe made our Customer Satisfaction (CS) Management

services should be useable by anyone, regardless of age,

Guidelines one of the pillars of business management, andgender, nationality, or disability.

we continue to improve CS, with the goal of “creating innova-

The UD perspective is essential because Hitachi is deep-tion through collaboration with customers.” We use customer

ly involved in society and in people’s daily lives in wide-ranging

satisfaction surveys tailored to each business operation, thenways: consumer electronics, information services and public

analyze the opinions submitted, and incorporate this informa-systems. In order to offer better products and services, wetion into product development and business activities.

continually make improvements through a three-step process

Using the concept of uVALUE,†1 the Information andTelecommunications Systems Group is working to bring aboutof basic research, product development, and information/
educational programs.

a more prosperous society by “collaborating to create the bestvalue for our customers.” Beginning with the customer’s perspective, we take annual surveys to evaluate our products andservices. Within the company, employees make evaluations

topicsStatus Display System for Train Stations That Monitors Operational Anomalies

Status display system for train stations in Tokyo Station20†1 uVALUEuVALUE is an operational concept that combines the Hitachi Group’s diverse business activities with IT. This approach—working toward the realization of a richer society— is intended
to create value in a society characterized by ubiquitous IT.

Hitachi Group
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Universal Design is being used in many
ways, including in foreign languages andBraille in ticket machines at railway stations.
When an accident or delay occurs in
the railway system, information is usually
given out only through PA announcements
or in written messages. To convey this information in an easier way to understand,
Hitachi has developed a status display
system that converts written information
into graphic form, showing information on
train delays on a map. This system wasdesigned through repeated experiments

Monozukuri and Services fromthe Customer’s Perspective
http://www.hitachi.com/csr/

based on opinions received from station
employees and train passengers, with thegoal of making it as convenient as possible.
A glance at the display provides accurate
information about train locations and delays, helping non-Japanese speakers, thehearing challenged and others to grasp thesituation—even if they cannot understandor hear public announcements. By March
2008, 150 systems had been installed in 27
East Japan Railway stations. Plans are to install systems in all Tokyo metropolitan stations
that have 50,000 or more passengers a day.

Working in Harmony
with Local Communities
Confronting Social Issues on a Global
Scale as a Good Corporate Citizen

Afforestation project in China’s Horqin Desert

Hitachi, Ltd. and five domestic foundations have donated

Awareness of Social Issues

over 1.4 billion yen to fund such social programs.
Hitachi is committed to a broad range of initiatives that

From global warming—and other environmental problems—tobuild a brighter future, while developing our enterprise in har-poverty and hunger, social issues are intensifying. As a good

mony with society.

corporate citizen, Hitachi looks for ways to help and take action. Using our Social Contribution Philosophy and Policy,

The Environment: Promoting Afforestation around the Globe

we have prioritized education, the environment, and social

In September 2007, in cooperation with Green Network, awelfare. Making full use of human and physical resources,

non-profit organization (NPO), 19 Group employees and family

finances, and technology, we take wide-reaching action: fos-

members volunteered for an afforestation project in the Horqin

tering family education and the healthy growth of children andDesert in China’s Inner Mongolian Autonomous Region. They

teens; fostering young researchers; sponsoring international

learned about desertification there—thought to be one ofstudent and teacher exchanges; educating people about thethe sources for dust and sand blown as far as Japan—andenvironment; assisting environmental NGOs; narrowing theabout the importance of restoring desert plant life. Then,digital divide; and helping people with disabilities.

cooperating with Japanese language students from the Inner
Mongolian University for the Nationalities, they planted poplar

Breakdown of Funding for Social Contribution Activities

and elm trees and cared for trees that had been planted before. Together, they deepened communication and friendship

Other

Social welfare
19%with the local people, and raised awareness among Hitachi
employees about the value of volunteering.

25%

Hitachi, Ltd. is a special sponsor of the Forests for theEnvironment
4%
Culture and the arts

9%

Future Project in Thailand organized by the Foundation for

Total expenditure
1.412 billion yen

Global Peace and Environment. This project, part of the Billion
Tree Campaign, is a global initiative proposed by the UN

43%
Scholarships and education

Environment Programme (UNEP). During 2008, employees
and family members of local Hitachi Group companies will plant* Note: Data on Hitachi, Ltd. and fivedomestic foundations for fiscal 2006

Breakdown by ﬁeld

voicestrees in Thailand's Sirindhorn International Environmental Park.

President Furukawa Joins Volunteer Classes

Volunteer classes on Universal Design
given by Hitachi Group employees justcelebrated their third year. In fiscal 2007, 38
classes were held in 19 locations in Tokyo,
Nagoya, and Yokohama.
President and CEO Kazuo Furukawa,
addressing a class on October 12 at
Komagome Public Elementary School inTokyo’s Toshima Ward, said, “Hitachi has
worked to create products that are easy
for everyone to use since the days before
television, when an icebox was used tokeep things cool instead of a refrigerator.

Hitachi Group
Next Society
Corporate Social Responsibility
Report Digest 2008

Universal Design is a very important part ofdesigning for people.”
After the class, President Furukawa
said, “I was excited by the flexibility andrichness of the children’s imaginations. I
hope they will learn the importance of looking at things from the users’ point of view,
being considerate of others, and appreciating the passion that we put into making
things. This experience reaffirms my belief
in the value of fostering the development ofchildren, the standard-bearers of the next
generation.”

Working in Harmony
with Local Communities
http://www.hitachi.com/csr/

President Furukawa with students

21

started with agricultural training and built schools at Slab Pang
village, Battambang province.
Education: The EU Hitachi Science & Technology ForumThe tenth EU Hitachi Science & Technology Forum was held inParis in May 2007. This was a venue for experts from government, the private sector, and academia to debate and propose
ways for science and technology to help resolve European issues. Each year there is a different theme in a different counLeft: Mine-clearing machinery at work in Cambodia
Right: An agricultural training classtry. This tenth anniversary forum, for about 150 people, had
the theme “Energy, Environment, and Sustainable Society.”

Collaboration with NPOs: Hitachi Construction Machinery
Supports Good Earth Japan

Presenters included Neil Hirst, director of Energy Technology

Hitachi Construction Machiner y and Yamanashi Hitachi

Fuller, chair of the Ford Foundation Board of Trustees; and theConstruction Machinery have been manufacturing anti-per-

University of Tokyo’s Professor

sonnel land mine clearance equipment. Simple clearance of

Ryoichi Yamamoto. The proceed-

land mines does not help the living conditions of local people

ings report was distributed to thein developing countries. From the years of civil war, land mines

European Commission and thestill buried under the ground, together with the poor agricultural

European Parliament.

and R&D at the International Energy Agency; Kathryn S.

A photograph of the forum

environment, have destroyed the lives of local people throughout Cambodia. Hitachi’s goal is to make ex-mine-fields safe
so children can play with happy smiles. In March 2007, theNGO Good Earth Japan was established to help Cambodian
people achieve self-reliance. Hitachi Construction Machinerygives great support to Good Earth Japan. Good Earth Japan†1 CACs (Community Action Committees)
Local volunteer organizations formed by Hitachi Group employees in North America†2 C’s (Coalition for Legislation to Support Citizens’ Organizations)
An independent non-profi t organization established in 1994, C’s was instrumental in passing,and have been played a main role in revising the NPO Law and the system for certified nonprofi t organizations. C’s has continued to play a key role promoting the creation of institutional
support for civic action.

Social Contribution Activities Overseas
North American Hitachi GroupThe city of Tarrytown, New York established the “Hitachi
Community Action Partnership Day.”

Hitachi Europe Ltd.

Employees dressed in special campaign attire: jeans on “Genes In 2007, more than 1,060 pounds (about 230,000 yen) was collected to aid children suffering from genetic
Day” and, on “Wear It Pink Day,” pink clothing, for charities
disorders, a campaign to eliminate breast cancer, and the promotion of a better understanding of prostatecancer.

Hitachi Asia Ltd.

Recipient of Investment in People Award at first Asia Pacific
Entrepreneurship Awards

The Foreign Affairs Minister of Malaysia presented Hitachi Asia (Malaysia) Sdn. Bhd. with an award
acknowledging the Hitachi Scholarship Program and Hitachi Young Leaders Initiative, which is a program tofoster next-generation leadership.

Hitachi (China) Ltd.

Donation of a dormitory to the Hitachi Hope Elementary School

A dormitory building for students from distant locations was completed in November 2007 and donated tothis Hitachi-supported school in the suburbs of Shanghai.

voicesSupporting NPO Activities with Information Technology

The Information and Telecommunications
Systems Group of Hitachi, Ltd. is participating in the NPO-IT Promotion Council,
created at the instigation of Microsof t
Corporation and the NPO C’s (Coalition for
Legislation to Support Citizens’ Organizations).†2 The council, with participants fromIT companies, NPO support organizations,and the community of IT engineers, assistsin the effective use of information technology by NPOs, and is sponsoring a varietyof events and seminars for that purpose.
According to Masaatsu Takehara of
Microsoft, “As part of our global CSR activities, we’ve begun to give assistance withinformation technology to NPOs, which
tend to have meager operational bases andIT infrastructures. By pooling the resourcesof a lot of organizations and results, wehope to expand our partnership and give22

Hitachi America, Ltd. is based in Tarrytown, NY, and the city has designated May 11 as “Hitachi Community
Action Partnership Day” to recognize the many years of service to the community by Hitachi's CAC.†1

Hitachi Group
Next Society
Corporate Social Responsibility
Report Digest 2008

employees of our member companies an oppor tunity to get
involved with NPOs.”
Akira Matsubara of C’s had
this to say: “NPOs in general are
not strong in disseminating information, so they have high hopes
for contacting people from thecorporate world and get tingsome advice at seminars and atother venues. In order to create
new relations for cooperation andmutual benefit among the member companies and participating NPOs, we are asking
everyone to keep cooperating by sharing
their know-how and experience by taking
the opportunity to pass on information.”
Through these activities, we are studying the best ways for us to connect andcooperate with NPOs.

Working in Harmony
with Local Communities
http://www.hitachi.com/csr/

Masaatsu Takehara (right)
Manager, Corporate Social Responsibility Office
Strategic Planning Department
Legal Affairs and Strategic Planning Headquarters
Microsoft Japan
Akira Matsubara
Executive Director
C’s (Coalition for Legislation to Support
Citizens’ Organizations)Collaborative Creation
with Suppliers
For Making Reliable Products

Guidelines for Procurement Activities (excerpt)
2. Hitachi shall maintain proper partnerships, mutual understanding,and reliable relationships with suppliers with a view to the longterm results.
3. Hitachi develops suppliers to maintain competitiveness from aworldwide point of view.
4. Through a designated selection process, suppliers shall be evaluated by product quality, reliability, delivery, price, suppliers’ business stability, technical development ability, fair and transparent
information release, compliance with societies’ rules, regulation
compliance, respect for human rights, environmental preservation activities, social contributions, good working environment,
and recognition of social responsibilities with business partners.
Revised in 2005

Sharing CSR Awareness
The Hitachi Group values partnership and openness withacquire certifications. For small- and medium-sized suppliers

suppliers. We are committed to maintaining and improving

using EMS, we support the acquisition of simpler EMS certifi-

the mutual understanding and trust of our suppliers over thecation, such as KES,†2 Eco Stage and Eco-Action 21. In part-long term. While providing equal business opportunities, wenership with suppliers, we organized the MMM Club†3 withselect suppliers from around the globe based on the principle

these suppliers as members, using information exchangesof open competition.

and training courses to promote qualitative improvements.

In 2005, we revised the Guidelines for Procurement andFor handling chemicals, on which regulations are be-

Business Transactions—the basis of our business transac-

coming stricter throughout the world, we require suppliers totions—and asked about 5,000 suppliers worldwide to conduct

manage them meticulously and to record all information on the

CSR activities in line with these guidelines. In 2007, using the

product chemical content management system. This informa-

Supply Chain CSR Deployment Guidebook created by Japantion is shared and used within the Group (see page 29).

Electronic and Information Technology Industries Association(JEITA), we issued a questionnaire on CSR promotion by our
main suppliers (about 140, including global corporations). We
will build a database of the results of this survey and share
this information throughout the Group. We have also asked
our suppliers to perform information security audits.
For green procurement,†1 we encourage all suppliers
that are using environment management systems (EMSs) tovoices†1 Green procurement
Green procurement is the procuring of parts and materials with reduced environmental impact
from suppliers that are actively protecting the environment.
†2 KESKES is a Japanese environmental certification system administered by the KES Environmental
Organization, an NPO.
†3 MMM ClubMMM Club: An organization run primarily by suppliers who have acquired KES environmental
certification through Hi-KES activities. The three Ms come from the first letter of mottainai(reducing wastefulness).

Employees’ Environmental Awareness Improved by KES Acquisition
Kazushi Watanabe
President and CEO, Taiyo Kogyo Co., Ltd.

Based in Ibaraki Prefecture, Japan, Taiyo
Kogyo uses precision sheet metal processing technology to produce enclosuresfor large-capacity data storage devices
and automotive devices. The company
had been promoting environmental activities since the 1990s. After taking part in a
Hitachi environmental seminar for suppliers,
the company applied for KES Step 2 andobtained certification in 2005.
President and CEO Kazushi Watanabe
commented: “With improving employee
awareness as our theme, we have beenusing employees’ ideas and steadily working toward our goal as an extension of thesmall-scale group activities we have been
conducting for the past 40 years. These
activities include saving energy by hav-

Hitachi Group
Next Society
Corporate Social Responsibility
Report Digest 2008

Collaborative Creation
with Suppliers
http://www.hitachi.com/csr/

ing each division draw up an electricity
management chart and sorting trash using
colored labels. We have always engaged indialogue with Hitachi and they have advised
us on how to conduct environmental activities. I gave a report on these achievements
at an MMM Club meeting.”

Trash bins with colored labels

23

Employees: The Key to
Hitachi’s Future

the percentage increase is large, the number of female man-

Building Workplaces
with Favorable Working Conditions:
Fostering Sustainable Growth andEnabling Employees to Use Their Skills

quest to create energetic and fulfilling workplaces for all em-

agers needs to continuously grow. We also explored ways todevelop a workplace that empowers women who are mothers
and are raising children. In essence, we have embarked on aployees, both male and female.
Trend in the Number ofFemale Managers

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

247

276

200
73

100
0

2000

Women

300

205
200

Diversity: A Base for the Healthy
Expression of Individuality

Men(People)

300

100
2005

2006

2007 (FY)

0

215
1

189
6

2006

* Data: Hitachi, Ltd.

Hitachi believes that people are our most important resource,

215

214

183
2005

217
2

2007 (FY)* Data: Hitachi, Ltd.

and therefore we respect individuality and embrace diverse
values to let employees harness their abilities as well as build

Trend in the Number of
Employees Using Nursing Care Leaveon the synergistic benefits that this base creates. We pursue aMenrange of activities that promote diversity, and aim to capitalizeon the proven increased effectiveness of diverse teams in theachievement of business goals.

Men

Women

Women

(People)(People)

17

20
10

7

0

2
5
2005

100

15
7

Work-Life Balance and Support for
the Career Advancement of Women

Trend in the Number of
Employees Working Shorter Hours

9

10
2006

6
2007 (FY)

96

50
0

2
94

2005

* Data: Hitachi, Ltd.

107
0

117
1
116

107

2006

2007 (FY)* Data: Hitachi, Ltd.

Since 2000, Hitachi has hired more female employees andexpanded assistance for child and nursing care. We encour-Male/Female Employee Ratio

age and assist female employees with their career develop-(March 2008)

ment and support the balancing of the demands at work andhome. In 2006, we launched the Diversity Promotion Project,

FemaleNumber of New Graduate Recruits
in Fiscal 2007
Female14%

19%

reporting directly to the President and CEO, and began building a workplace where everyone can fully apply their skills.
One outcome of the Diversity Promotion Project was the pro81%

86%

motion of more women into management positions, and as aresult, by the end of fiscal 2007, Hitachi, Ltd. had 276 female

Male

Male

managers—almost a fourfold increase from fiscal 2000. While* Data: Hitachi, Ltd.

* Data: Hitachi, Ltd.

voicesWorkplace Improvements through Peer Networking by Women
Masayo Fujimoto
Senior Manager, Financial Information Systems Dept. I, Financial Information Systems Division, Hitachi, Ltd.

In fiscal 2006, the Information and Telecommunications Systems Group organized the
Women’s Council (ITWC), and since thenhas been pursuing a Diversity Promotion
Project. I participated from the beginning,and have been involved mainly in building awareness and creating female peer
networks.
Like many workplaces, we had only a
few women, but in the process of seeking
their participation, we began to hear from
more and more of them that they wanted
access to female counselors. This led tothe creation of a peer network that links
female employees. We began using email

24

Hitachi Group
Next Society
Corporate Social Responsibility
Report Digest 2008

Employees: The Key to
Hitachi’s Future
http://www.hitachi.com/csr/

magazines and internal social networking
services for more interaction and to shareexperiences. Through our activities, women’s voices are being more clearly heard,
helping us to improve the workplace.
My par ticipation over the past two
years has shown me the diversity of needs
that employees have. To ensure that thebenefi ts of networking are substantial andlong-lasting, we will keep at it. The goal is
to create a workplace where all employees
accept one another and achieve a balance
between their jobs and private lives, regardless of gender, and I want to help sustain
our efforts with that in mind.

Promoting the Employment of the Physically Challenged

example, are interviewed and examined by company physi-

As of June 2007, 2,981 physically challenged people were

cians and given guidance.

employed by the Hitachi Group. Workplace improvements
have been made so that they are able to apply their skills to
the maximum. Having the physically challenged work with

Maxell Hokuriku Seiki Earns the Prime Minister’sCommendations on Contributors to Public Safety

other employees builds mutual understanding and a wider ac-

In July 2007, the Yatsuo Plant in Toyama Prefecture (Japan) owned

ceptance of diversity.

by Maxell Hokuriku Seiki, Ltd., a member of the Hitachi Maxell

While the ratio of people with physical challenges hasGroup, received one of the Prime Minister's Commendations on

risen to 2.11 percent of the workforce at Hitachi, Ltd., it aver-Contributors to Public Safety to recognize outstanding indus-

ages 1.76 percent at Group companies in Japan—lower thantrial safety, including an accident-free record since startup. The

the legally mandated ratio. So, Hitachi will continue to hold joint

Yatsuo Plant began operating in March 1981 to make videotapes

interviews and consultations, striving to create more employ-and other magnetic recording media. As of June 2007, it had

ment opportunities for the physically challenged.

achieved a record 26 years and three months accident free—acumulative 6.2 million operating hours. Labor and management

Employing Retirees (Japan)

have united to promote safe, healthy working conditions.

To be a company that employees find appealing and worth
working for, Hitachi chooses people with deep experience,technical expertise, and skill. All Group companies have adopted a “life plan selection framework,” designed to re-employ
people aged 60 who want to continue working, and are suited

Trend in the Employment Ratio for Physically Challenged People

1,300

1.88

Legally mandated
employment ratio

1,150
1,000

1.80
1,001

968
926

1.66
822

850

1.5

731
700

At Hitachi, ensuring the safety and health of employees is a0

top priority. We strive to maintain high health and safety standards and to make continuous improvements.

June
2003

June
2004

June
2005

June
2006

June
2007

0
* Data: Hitachi, Ltd.

Trends in the Occupational Accident Rate(%)

Worker Health and Safety

After many years ensuring health and safety, Hitachi has
accumulated much knowledge and experience on management, education, maintenance, and the environment. It is now
possible to apply the Group’s “safety and hygiene knowledge”
every day.
For health management, we help employees maintain
good health. Employees that work extended overtime, forvoices

(%)

2.0

1.93

to company-designated positions.

Securing the Health and
Safety of Employees

2.11

2.05
(People)

2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0

All industries
Manufacturing industries
Electrical machinery sector
Hitachi, Ltd.

2003

2004

2005

2007 (Year)

2006

Friends Working Together for a Happier Workplace

Established as a special subsidiar y in
Yokohama in October 1999, Hitachi You
and I Co., Ltd. has entered its ninth year ofoperation. Initially, 10 mentally impaired employees cleaned offices and dormitories inand around Totsuka Ward. Today, there are
73 challenged employees (as of April 2008)
working at 30 locations in Kanagawa, Tokyo, and Ibaraki Prefectures performing a
range of duties, from cleaning and on-site
mail delivery to paper shredding/recycling,
text processing, and cafeteria services.
The following are two accounts provided
by employees of the company.
“I perform cleaning duties at employee
dormitories. For operational safety, I recommended that we always carry work gloves,

and was delighted that thecompany agreed to that idea.”(Takahashi)“I ha n dle s h re dde r operations at a company locatedin Shinagawa Ward. I set aside
colored wastepaper, sorting theremainder by size, and removing
staples and so forth. It’s a demanding job but seeing a happy
customer always gives me a lift.”(Yamada)Many workers feel that their own workplaces are happier and healthier thanks to
the friendly demeanor and hard work of the
Hitachi You and I employees.

Tomomichi Takahashi (left)
Yoshiyuki Yamada

Hitachi Group
Next Society
Corporate Social Responsibility
Report Digest 2008

Hitachi You and I Co., Ltd.

Employees: The Key to
Hitachi’s Future
http://www.hitachi.com/csr/

25

Next Eco
Environmental Action for a Sustainable Society

The Hitachi Group aims to reduce the environmental impact
over the entire product lifecycle from a long-term perspective,
based on the four points of our Sustainability Compass

The thousands of trees aroundthe Hitachi Central Research Laboratory
create a rich, natural environment.

For more information in PDF file format, please visit the following Web site:

http://www.hitachi.com/csr/: Topics not covered in this digest

Shozo Saito: Topics covered in greater detail in related PDF files

Eco-Mind & Global
Environmental Management
Awareness of Environmental Issues
and Environmental Activities

Managing Chemical Content
of Products
Supporting Global Ecodesign
Sustainable Business Model

Emission Neutral

Super Eco-Factories & Offices

Environmental Action Planand Achievements

Super Eco-Factories & Offices

Environmental Management
System

CO2 Reduction in Production
Processes

GREEN 21 Evaluation System
Activities

CO2 Reduction in Offices

Environmental Education

Increasing Transportation
Efficiency

Environmental Accounting

Efficient Use of Resources

Environmental Impact Data
for Corporate Activities

Management of Chemicals

Next-Generation Products& Services
Expanding Lineup of Eco-Products

Realizing a Sustainable Society

Worldwide Environmental
Partnerships
Environmental Communication
Participation in Exhibitions

Senior Vice President and Executive Officer in charge of Quality Assurance,
Production Technology and Power Technology, Hitachi, Ltd.

Climate change is most clear in the polar regions: Arctic Sea
ice is shrinking to historic lows and the Antarctic had a massive outbreak of “snow algae,” the result of rising temperatures.
While humanity enjoys the benefits of the global environment,
phenomena like these must be seen as warning signs.
To leave a magnificent global environment for future generations, we aspire to create an environmentally harmonious
society through products and services, and to contribute toenvironmental conservation as a global citizen.
To achieve these goals, environmental action has been
made one of the pillars of our corporate management. The
Environmental Vision lays out the “blueprint” for a future society, while theSustainability Compass (pictured left)
directs our activities toward the specific

Environmental Vision 2015
As a global citizen, we will promote innovation throughout
the world while developing the potential for future generation
to pioneer next-generation products and services.

targets outlined in the Environmental
Action Plan. We will also use informa-

Sustainability Compass

tion disclosure and dialogue to con-

E co-Mind & Global Environmental Management
Next-Generation Products & Services
S uper Eco-Factories & Ofﬁces
Worldwide Environmental Partnershipstinue working with our stakeholders
toward a sustainable future.

Sustainability Compass

Eco-Mind &Global Environmental
Management

we will develop an integrated EMS for each business group

Strengthening Environmental Activities

companies.

and Group company. In fiscal 2007, Hitachi Global Storage
Technologies received worldwide integrated ISO 14001 certification for its 10 locations (two domestic, eight overseas)
across seven countries—marking the completion of integrated
certification by seven of Hitachi’s business groups and Group

Hitachi Group EMS Integration Philosophy
E
President
Senior Executive Committee for Environmental Policy

EMS under the Hitachi Group
Environmental Promotion
Mechanism

Emission Neutral
Hitachi’s “emission neutral” concept was developed to promote monozukuri (manufacturing) that reduces the environ-

Environmental Management Operations Committee

Integrated EMS for eachbusiness group/Group company(by fiscal 2010)

R&D group
Environmental operations
units at business groups

Environmental operations
units at Group companies

EMS for each production site

Production
site

Production
site

mental impact of products during their lifecycle. We intend to

Production
site

Production
site

be emission neutral by fiscal 2015. Emission neutral meansbalancing the direct environmental impact with suppressionof the indirect impact. Here, direct environmental impact cov-

GREEN 21 Evaluation System Activities

ers material production, manufacturing and distribution, while
indirect impact covers finished products after they are soldTo ensure ongoing improvements and to raise the level of envi-(product use).

ronmental activities, we numerically quantify evaluations on 56

In fiscal 2007, we introduced systems for analyzing andevaluating our progress toward becoming emission neutral.

items in eight categories, assessing the degree to which thatyear’s goals have been achieved. The results are made intoradar charts for each business group and Group company for
management decision making. GREEN 21 assessment results

The “Emission Neutral” Philosophy
Reduction of indirect(product use) impact

Direct environmental impact
CO2 emissions
from production
CO2 emissions
from material
refining

CO2 emissions
from waste
recycling

CO2 emissions
fromtransportation

Reduction of
CO2 emissions
duringproduct use

Reduction of
CO2 emissionsin productrecovery andrecycling

are used to evaluate each group’s business performance andas an incentive to raise the level of environmental activities.
While the green procurement category scored poorly in2006, a better score was achieved in fiscal 2007 thanks togreen procurement liaison meetings to increase understanding of procurement operations.
Green Point Average: Results and Targets

Materials/
rawmaterials

Production

Distribution

Use

Recovery/recycling

FY 2007: 966 GPs
FY 2006: 845 GPs
FY 2010: 1,280 GPs

1. Eco-Management
138 GPs

Environmental Management System

8. Worldwide Environmental
Partnerships
117 GPs

2. Eco-Mind
135 GPs

160

80

The Hitachi Group has developed an environmental management system (EMS) for 1,082 Group companies that assesses

7. Eco-Factories:
Resource Recycling
124 GPs

0

3. Eco-Products:
Manufacturing
115 GPs

and sets environmental policies and strategies. As well, it
ensures that this information is disseminated and put into action. Known as the Hitachi Group Environmental Promotion
Mechanism, this EMS obtained ISO 14001 certification in
September 2006. It both promotes the plan-do-check-act(PDCA) cycle of Hitachi’s environmental activities and uses
the combined strengths of the Group to reach environmental
goals. The EMS is centered on Hitachi’s R&D group, the six
business groups, and the environmental operations units in
the 17 main Hitachi Group companies.
To strengthen environmental management, by 2010,

Hitachi Group
Next Eco
Corporate Social Responsibility
Report Digest 2008

Eco-Mind & Global
Environmental Management
http://www.hitachi.com/csr/

6. Eco-Factories:
Reducing Global Warming
108 GPs

5. Next-Generation Product /Service Strategy
126 GPs

4. Eco-Products:
Green Procurement
103 GPs

Categories and Evaluation Items
1. Action plan, environmental accounting, risk management
2. Employee training and education
3. Ecodesign management system, Eco-Products, control of hazardous substances contained in products
4. Green procurement, green purchasing
5. Business and product strategy, sustainable business, publicity
6. Energy saving at production facilities, environmentally responsible distribution
7. Waste reduction, chemical substance management
8. Information disclosure, communication activities, global citizen activities

27

Next-Generation
Products & Services

industry leaders or highly regarded. Environmental efficiency

Building a Recycling-Oriented Society

1,057 Hitachi Group products (6,216 models) were certified

is an index of reducing greenhouse gas emissions, resource
use and boosting product or service value. Hitachi is working
to expand its Super Eco-Product lineup. As of March 2008,
as Eco-Products. The certification rates were 97 percent for
Hitachi’s information and telecommunications systems, digitalN

media and consumer products, and 84 percent for electronic
devices, power and industrial systems, high functional materials and components, logistics, services and others. Of these,
74 products and 184 models are Super Eco-Products, orabout 12 percent of Eco-Products by sales. The intention is to

Expanding Lineup of Eco-Products

boost this ratio to more than 30 percent by fiscal 2010.
Eco-Product Certiﬁcation Trends

Hitachi introduced Assessment for D f E (Design for

Percentage of products certified as Eco-Products *1
Percentage of products certified as Eco-Products *2

Environment) into product development as a way to reducecle. The assessment looks at eight criteria, including resource
reduction, product longevity, resource recycling, and ease of
decomposition. New products that outperform existing products in these criteria are called Eco-Products.
Some Eco-Products are designated as Super EcoProducts when they achieve an environmental efficiency atleast 10 times greater than existing products, or when they are

Percentage of products certified
as Eco-Products (% by sales)

the environmental impact at every stage of the product lifecy-(%)

No. of certified products (no. of models in parentheses)

100

90

80

69

60
40

940
[4,506]

92
79

97
84

1,012
[5,491]

1,057[6,216](No. ofproducts)

1,200
1,000

20

800

0

0

2005
2006
2007 (FY)*1 Product categories: Information and telecommunications systems,
digital media and consumer products*2 Product categories: Electronic devices, power and industrial systems,
high functional materials and components, logistics, services and others

Super Eco-Products

Annual power consumption cut by around 38 percent *1
LCD Television—Wooo UT Series• Slim and lightweight breathtaking design for 360-degree around• Lightweight construction boosts transportation efficiency by 20 percent *2*1 Comparison between UT32-HV700B and 2004 models from the same category*2 Comparison between UT32-HV700B and the Hitachi L32-H01 model from the same category

Annual performance factor (APF) increased by around 50 percent *3
Room Air Conditioner—Moisturizing with Ion Mist (S series)• Recycled plastic used for fan of outdoor unit and cabinet of indoor unit
• Winner of the ECCJ (Energy Conservation Center, Japan) Chairman’s Prizeat the 2007 Energy Conservation Grand Awards*3 Comparison between RAS-S40X2 and RAS-401HX2, Hitachi’s model from the same category 11 years ago

Annual power consumption cut by around 20 percent *4
Refrigerator—Featuring a Mid-freezer Layout and Vacuum Compartment• Uses non-fluorocarbon refrigerant R600a (isobutane),with an extremely low global warming potential (GWP)• Winner of the ECCJ (Energy Conservation Center, Japan) Chairman’s Prizeat the 2007 Energy Conservation Grand Awards*4 Comparison between the new R-X6000and the R-W5700, Hitachi’s model from the same category one year ago

28

Hitachi Group
Next Eco
Corporate Social Responsibility
Report Digest 2008

Next-Generation
Products & Services
http://www.hitachi.com/csr/

Managing Chemical Content of Products
To use chemicals safely, we comply with the REACH regulation,†1 which promotes the safe use of chemicals. REACH
compliance means registering chemical substances exported

Super Eco-Factories& Offices
Reducing Environmental Impact

to the European Union (EU), as well as notifying and providing
information on substances contained in products covering
thousands of chemical types. Because we see registrationand notification under the REACH regulation as a task for thewhole supply chain, we are using our participation in JAMP†2
to develop a more effective information exchange system.

S

For even better communications, we will link REACH
compliance with the Group’s Integrated Management System

Super Eco-Factories and Offices

for Chemical Substances Contained in Products, which conThe Hitachi Group has introduced Super Eco-Factor ytains information on 480,000 parts (March 2008).

Certification as a way to promote industry-leading environIntegrated Management System for Chemical Substances Contained in Products

mental action and develop pioneering best practices.
In fiscal 2007, eight factories and one office were certified

Parts composition
information

Environmental
CSR database
Total amount of designatedchemical substances
received and shipped

Super Eco-Factories. Hitachi aims to raise the total to 30 byDisclosure ofenvironmental
information

Supplier

Composition
simulator

Design forEnvironment
(DfE)

Green
procurement

Reduction ofenvironmental
impactRisk management(Individual producttraceability)

Parts
composition
information

Purchasing
history

Assembly andprocessing
history

fiscal 2010.
Customers/society

A Gree’ Net

Composition
simulator
results

Shipment
history

Sales,
maintenance,and repair history

Supporting Global Ecodesign
In April 2008, we compiled ecodesign management guidelines in line with Europe’s EuP Directive,†3 used for assess-Super Eco-Factory System
Super Eco-Factory
Certiﬁcation Criteria
1. Energy efficiency
2. Improvements in resource recycling
3. VOC emissions reduction
4. Water recycling
5. Renewable energy use
6. Other (special commendation or
use of original technologies
to meet targets)

Super
Eco-Factories(as of 2006)
Certified as achieving
industry-leading
direct environmental
impact reduction

Eco-Factories(as of 1999)
GREEN 21 activities
Overall assessments ofenvironmental management andenvironmental impact reduction
based on target goals for a given fiscal year

Ofﬁces and factories

CO2 Reduction in Production Processes

ing product designs from an environmental perspective. To
minimize the environmental impact, Hitachi product guidelines

We are taking a global approach to reduce the amount of en-

require every operational unit to design products with less en-ergy used and greenhouse gases generated in the production

vironmental impact in all phases—including planning, design,

process, as well as transportation-related energy.

procurement, manufacturing and quality control—and to maintain clear design records. Based on these new guidelines, we

Reduction of CO2 Emissions in Japan

will both meet regulatory requirements and lead the industry in

The Hitachi Group is striving to achieve two CO2 emission

lowering product environmental impact.

reduction targets: cutting total CO2 emissions to 7 percent
below the 1990 level by fiscal 2010; and in the same period, either meeting specific emission targets set by industry
groups, or reducing CO2 emissions per unit of production by†1 REACH
Registration, Evaluation, Authorisation, and Restrictions of Chemicals
This EU regulation came into force on June 1, 2007.

25 percent (in offices, hospitals, etc.).

†2 JAMP
Joint Article Management Promotion-consortium

energy saving, Hitachi reduced CO2 emissions by 102,000
tonnes. The Group’s total CO2 emissions fell to 2.802 million†3 EuP Directive
Directive on Eco Design of Energy-using Products

Hitachi Group
Next Eco
Corporate Social Responsibility
Report Digest 2008

In fiscal 2007, as a result of investing 6.4 billion yen in

tonnes, or 86 percent of the 1990 level.

Next-Generation
Products & Services
http://www.hitachi.com/csr/

Hitachi Group
Next Eco
Corporate Social Responsibility
Report Digest 2008

Super Eco-Factories & Offices
http://www.hitachi.com/csr/29

Alongside energy saving, we are using alternative energy
conversion as a way to cut CO2 emissions, including reducing

Modal Shift Saves Energy on Transportation

The Hitachi Group is lowering the amount of resources used

the use of heavy oil by changing to natural gas as a fuel. Hitachi

in product packaging and reducing transportation CO2 by

Cable has installed a natural gas pipeline at the Tsuchiura

improving load efficiencies. A modal shift to more efficient rail

Works, reducing CO2 emissions by 5,000 tonnes per year.

transport increased the rate of rail shipments from 3 percent infiscal 2006 to 16 percent in fiscal 2007.

CO2 Emission Reduction outside Japan

With greater production volume, the construction of new factories, and other changes in the business environment, theHitachi Group has set the target of reducing CO2 emissions
per unit of production to 5 percent below the 2003 level by
2010. In fiscal 2007, we cut total CO2 emissions per unit ofproduction by 3.3 percent over the 2003 level.
Rail transportation of household appliances in special containers

Trend in CO2 Emissions in Japan

Efficient Use of Resources

CO2 emissions
Trend in CO2 emission reduction rate
(Target values are given in parentheses)(kt CO2/yr)

4,000

( %)

100
3,250

3,000

(93)
86

86

2,805

2,802

100
80

2,000
1,000

1990

2006

2007

is working to meet the fiscal 2010 goals of cutting total waste
to 20 percent below the 2000 level and increasing the resource recycling rate by 10 percent over the 2005 level.

600Applying the 3Rs (reduce, reuse and recycle) concept, Hitachigroups based on the characteristics of their operations: One

20

group reduces the total amount of generated waste, while theother cuts waste per unit production. In fiscal 2007, the first0

2010 (FY)

To reduce waste, Hitachi classifies facilities into two

40

group cut total emissions by 22 percent, and the second cut(target)Emissions were calculated using CO2 emission coefﬁcients for eachelectric power company, as published by the Ministry of the Environment

total waste per unit production by 24 percent. The combined
goal for total waste reduction across the Hitachi Group is 10

Trend in CO2 Emissions outside Japan

percent.
Hitachi also boosted the resource recycling rate by 5 per-

CO2 emissions
CO2 emissions per unit of production(target in parentheses)(kt CO2 /yr)

4,000

100

97.7

96.7

cent by using waste disposal methods that reduce the environ( %)

(95)

80

3,000

mental impact and by focusing on “zero emission” technology.

100Management of Chemicals

60

By fiscal 2010, Hitachi intends to cut domestic VOC (volatile

2,000
1,200

1,379

1,433

40

1,000
0

2003

2006

2007

2010 (FY)and to lower the ratio of VOC emissions overseas by 10 percent

0

from 2005 levels. In fiscal 2007, VOC emissions fell 49 percent
in Japan and the ratio was lowered by 4.1 percent overseas.

(target)topicsorganic compound) emissions to 45 percent below 1990 levels

20

Convergence of Eco-Friendly Actions
Hitachi Elevator (China) Co., Ltd. has afactory in Guangzhou, China that handles
ever y thing related to escalators andelevators—from R&D through to maintenance. A river, surrounded by lawns andmango trees, runs close by the factory. The
company and the employees have taken
the following steps to maintain the naturalenvironment: the production process andfactory have been improved to reduce CO2
emissions, including converting from lique-30

Hitachi Group
Next Eco
Corporate Social Responsibility
Report Digest 2008

Super Eco-Factories & Offices
http://www.hitachi.com/csr/

fied petroleum gas (LPG) to natural gas as
the fuel for paint sprayers; energy-saving
fluorescent lights are now used for factory
illumination; and employees commute on
21 company buses to cut down on using
private vehicles. The company also supports NPO-backed desert greening (afforestation) and releases a CSR report. In
fiscal 2007, Hitachi Elevator (China) won an
Excellent Corporate Citizen in China Award(see page 14).

Worldwide
Environmental
Partnerships

International Contribution through Energy-Saving Technology

Tackling Issues Together

energy-saving inverters that Hitachi makes. Coming from the

Hitachi Industrial Equipment Systems was pleased to receive
25 trainees from Thailand visiting Japan under the Japan
External Trade Organization (JETRO) overseas technicalscholarship program. The trainees were briefed on energysaving measures used at plants, and were trained to use theThailand government, universities, and companies, the trainees are using the knowledge gained to promote energy savingWthroughout Thailand.

Participation in Exhibitions
Environmental Communication

The Hitachi Group participates in exhibitions in Japan andaround the world to publicize the Group’s environmental ac-

The Hitachi Group actively communicates with stakeholders,

tivities and the strong eco-friendliness of Hitachi technologies

using opinions expressed to improve environmental activities

and products.

and to deepen the understanding of what is being done.

In Japan, Hitachi took part in Eco-Products 2007, displaying 35 products and services contributing to the realization

Dialogue with Stakeholders

of a sustainable society based on the theme “Realizing Next

Hitachi Plasma Display Ltd., which produces panels for plasma

Eco: Creating Eco-Cities.”

TVs, invited people from the local community to a production site

Hitachi’s leading-edge technology and techniques were

for an informal exchange. The company outlined energy-saving

commended at the fair, where Hitachi exhibited a hybrid railcar,

innovations introduced into the production process and thewinner of the Environment Minister’s Prize at the Eco-Products

rigorous standards applied to water management. Questions

Awards, and the “Developing and Sustaining a Middle-

and comments from the invitees about environmental activities

Distance Modal Shift” concept, winner of the Eco-Products

followed. The local community admired the environmental con-Awards Steering Committee Chairperson’s Award.

cern and action, but requested that more information be madeOutside of Japan, Hitachi showcased 15 products,

available to the public. Factory tours, such as this one, andincluding home appliances and industrial machinery, at theother events have been featured on Hitachi’s Web site in a

International Eco-Products Exhibition in Hanoi, Vietnam.

series entitled “From the Forefront of Eco-Friendly Production”

Hitachi demonstrated innovative communication methods as

to promote public awareness about how we are reducing

well, such as having visitors write messages about the global

the environmental impact of our factories, as well as the eco-environment and Hitachi’s environmental activities on cards,

friendly features built into Hitachi home appliances.

which were then pinned on a board to form an “eco tree.”Left: Explaining the energy management system at
the factory (Hitachi Plasma Display Ltd.)
Center: Learning to use an energy-saving inverter(Narashino Works, Hitachi Industrial Equipment
Systems Co., Ltd)
Right: Environmental message board or “eco tree”(International Eco-Products Exhibition)

topicsEnvironmental Collaboration with the Chinese Government

Hitachi launched the China Energy Conservation and Environment Commercialization Promotion Project Team to support
environmental protection and energy conservation in China, identified as priorities
in the 11th Five-Year Plan. In 2007, Hitachi
co-hosted the Hitachi Energy Conservationand Environmental Protection Technology
Exchange Conference with China’s National Development and Reform Commission.
This event contributes to conservation in

Hitachi Group
Next Eco
Corporate Social Responsibility
Report Digest 2008

China by encouraging environment-related
exchanges and partnerships. In May 2007,
under the theme “water,” Hitachi and Sichuan
University agreed to share water treatment
technologies.
In January 2008, a presentation on
Hitachi environmental technology, with“eco-cities” as the theme, was followed bya spirited exchange of views with more than
300 participants from 160 Chinese government organizations and companies.

Worldwide Environmental
Partnerships
http://www.hitachi.com/csr/

31

Company Profile

Hitachi Group Profile

Corporate Name: Hitachi, Ltd.

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

Incorporated: February 1, 1920 (founded in 1910)

consisting of 1,082 companies: 418 consolidated subsidiaries

Head Office:within Japan and 492 overseas, as well as 83 equity-method

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

affiliates in Japan and 88 overseas. For business activities,

Representative:

there are seven business units, as indicated on the next page,Kazuo Furukawa, President and Chief Executive Officer

with total revenues of about 11.2 trillion yen. The Group employs about 390,000 employees.

Asia
Number of companies: 271
Number of employees: 105,645
Revenues: 2,167,171 million yen

EuropeNumber of companies: 106
Number of employees: 9,468
Revenues: 1,073,877 million yen

North America
Number of companies: 75
Number of employees: 16,242
Revenues: 1,023,713 million yen

Japan
Number of companies: 419
Number of employees: 251,702
Revenues: 6,484,496 million yen

Other
Number of companies: 40
Number of employees: 6,695
Revenues: 477,478 million yen

Economic Performance
As of March 31, 2008

Period: Fiscal year ending March 31, 2008 (consolidated basis)

Common Stock: 282,033 million yen

Revenues:

Number of employees (unconsolidated basis): 40,223

11,226.7 billion yen (110% compared with the previous year)

Number of employees (consolidated basis): 389,752

Operating income:Number of consolidated subsidiaries:

345.5 billion yen (189% compared with the previous year)

910 (Japan: 418, outside Japan: 492)

Capital investment:

Number of equity-method affiliates:

969.0 billion yen (92% compared with the previous year)

171 (Japan: 83, outside Japan: 88)

R&D expenditure:428.1 billion yen (104% compared with the previous year)
Overseas output as a percentage of consolidated net sales: 24%
See Web site for economic performance reports.

http://www.hitachi.com/IR-e/
Financial Results (consolidated basis)
Revenues and Operating Income
Revenues( billions of yen )12,000

Revenues by Industry Segment in Fiscal 2007 (billions of yen)
Operating income( billions of yen )Revenues
Operating income

11,226.7

1,200

Financial Services
445.4 (3%)

Logistics, Services & Others
1,271.4 (10%)

10,247.9
10,0008,632.4

9,464.8

1,000

8,000

800

6,000

600

4,000
2,000
0

32

9,027.0

279.0

345.5

2003

182.5

2004

2005

Hitachi Group
Company Profile
Corporate Social Responsibility
Report Digest 2008

2006

200

2007 ( FY )http://www.hitachi.com/csr/

High Functional Materials &Components
1,875.0 (15%)
Electronic Devices
1,293.5 (10%)

400

256.0

184.8

Information
Telecommunication
Systems
2,761.1 (22%)

Digital Media &Consumer Products
1,504.6 (12%)

Power & Industrial Systems
3,568.1 (28%)

0Total Sales by Industry: 12,719 billion yen
Consolidated Net Sales: 11,226 billion yen

Information & Telecommunication Systems

Data center(unification control center)

Hitachi Global Storage
Technologies’
500-gigabyte 2.5-inch
hard disk drive

Large disk array
subsystem

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

Electronic Devices

Hitachi Displays’ 2.9-inch
wide and high definition (WVGA)IPS LCD for mobile phones

Hitachi High-Technologies’
Focused Ion &Electron Beam System

Hitahi Medical’s
fluoroscopic X-ray system

Liquid crystal displays (LCD), semiconductor manufacturing equipment, testing and measurement, medical electronics equipment, semiconductors
Hitachi Displays, Ltd., Hitachi High-Technologies Corporation, Hitachi Medical Corporation, Hitachi Display Devices (Suzhou) Co., Ltd.

Power & Industrial Systems

Ashford Train
Maintenance Centre

Hitachi Construction
Machinery’s
hydraulic excavator

Hitachi Vehicle Energy’s
lithium-ion battery

Nuclear power plants, thermal power plants, hydroelectric power plants, industrial machinery and plants, automotive products, construction machinery, elevators, escalators, railway vehicles
Babcock-Hitachi K.K., Clarion Co., Ltd., Hitachi Construction Machinery Co., Ltd., Hitachi-GE Nuclear Energy, Ltd., Hitachi Industrial Equipment Systems Co., Ltd., Hitachi Via Mechanics, Ltd.,
Hitachi Automotive Products (USA), Inc., Hitachi Elevator (China) Co., Ltd., Hitachi Building Systems Co., Ltd., Hitachi Engineering & Services Co., Ltd., Hitachi Mobile., Ltd.,
Hitachi Plant Technologies, Ltd., Hitachi Power Europe GmbH

Digital Media & Consumer Products

UT (Ultra Thin) LCD TVs

Hitachi Maxell’s
prismatic lithium-ion
rechargeable batteries
featuring thin typeand high capacity

Hitachi Appliances’
washer-dryer

Optical disk drives, Plasma TVs, LCD TVs, LCD projectors, mobile phones, room air conditioners, refrigerators, washing machines, information storage media, batteries, air-conditioning equipment
Fujitsu Hitachi Plasma Display Limited, Hitachi Appliances, Inc., Hitachi Maxell, Ltd., Hitachi Media Electronics Co., Ltd., Hitachi Home Electronics (America), Inc.,
Shanghai Hitachi Household Appliances Co., Ltd.

High Functional Materials & Components

Hitachi Chemical’s
molded plastic rearhatch door

Hitachi Metals’
amorphous alloys
for transformers

Hitachi Cable’s
probe cables for
medical applications

Wires & cables, copper products, semiconductor materials, circuit boards and materials, organic/inorganic chemical products, synthetic resin products, display related materials, specialty steels,
magnetic materials and components, high-grade casting components and materials
Hitachi Cable, Ltd., Hitachi Chemical Co., Ltd., Hitachi Metals, Ltd.

Logistics, Services & Others

Financial Services

Hitachi Transport System has opened a joint
distribution center for the medical industry,
Kansai Medical Distribution Center
General trading, logistics, property management
Chuo Shoji, Ltd., Hitachi Life, Ltd., Hitachi Transport System, Ltd., Nikkyo Create, Ltd.,
Hitachi America, Ltd., Hitachi Asia Ltd., Hitachi (China) Ltd., Hitachi Europe Ltd.

Multifunctional IC card andelectronic toll collection auto card
Leasing, loan guarantees, insurance services
Hitachi Capital Corporation, Hitachi Insurance Services, Ltd.

Major Products & Services Major Consolidated Subsidiaries (As of March 31, 2008)*1 Hitachi-GE Nuclear Energy, Ltd. acquired the nuclear power-related business of the company through a corporate split on July 1, 2007.
*2 Guangzhou Hitachi Elevator Co., Ltd. changed its name to Hitachi Elevator (China) Co., Ltd. on June 29, 2007.
*3 Fujitsu Hitachi Plasma Display Limited changed its name to Hitachi Plasma Display Limited on April 1, 2008.

Hitachi Group Corporate Social Responsibility Report 2008 Digest

This report is printed on Hitachi Recycled Paper, partof which is made from pulp recycled from businessdocuments produced by Hitachi Group companies.

Inquiries:

Hitachi, Ltd.
CSR Promotion Department, Corporate Communications 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/
Corporate Environmental Policy Division (For inquiries on environmental activities)
1–18–13 Soto-Kanda, Chiyoda-ku, Tokyo, 101-8608, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4564-4074 http://www.hitachi.com/environment/
On the cover: The cover photo shows a bird perched on a branch of
the “Hitachi Tree,” a monkey pod tree (also in the photo on the left)in Moana Loa Garden Park, Oahu Island, Hawaii.

Hitachi Group CSR Report 2008 Digest

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

Hitachi Group’s CSR activities, Hitachi Group CSR Report

CSR Promotion Department
Corporate Communications Division2008 Digest? Please answer the questionnaire on the other

Hitachi, Ltd.

side of this page. We consider readers’ frank opinions very

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/

important and want to ensure that this feedback is reflected in
our various CSR activities.

Results of Responses to Questionnaire on Hitachi Group CSR Report 2007 (Total respondents: 99)
CSR Report 2007
Low

Too little

Inadequate

Hard to read2%

2%

Too much
3%

4%

28%
Average

Appropriate

39%

69%

Average

32%

AverageComprehensibility

VolumeEnvironmental
protection

LayoutBreakdown of Responses
Employment
environment

Technology/quality

Technology/quality
Compliance

5%Easy to read

ArticlesCSR Activities
Employment
Customer environment
satisfaction
improvement

58%
Excellent

High

11%

28%

9%
15%

23%

NPO/NGO 2%
Student 2%
Shareholder/investor 3%
Research/education
institution employee

18%
17%
17%

Social contribution

40%

66%

57%

21%

Environmental
protection

9%

Supplier

4%
39%

16%

19%
17%

Other

CustomerSocialcontribution

25%

Compliance
Customer satisfaction
improvement

Areas of Excellence

Hitachi Group employee/family member

Areas for Further Improvement

Main Feedback and Our Responses
PraiseSuggestions

Our Responses• From the section “Hitachi’s Response to
Nuclear Reactor Turbine Problems,” I could
understand clearly Hitachi’s monozukuri andquality assurance activities.
• From the examples of “CSR Activities”
closely related to people’s lives and positiveenvironmental protection activities, I got aclear idea of Hitachi’s approach of aiming at
a sustainable society.
• The good balance between articles, tables
and photographs and the notes explaining
abbreviations and technical terms made iteasy to read.

• There are too many pages and the contents
are too diverse. Since the distinctive features and message are not clear, how about
focusing on the main points or producing aseparate booklet?
• I would like to see more comments from
employees on the frontlines and fromstakeholders.
• I expect Hitachi to continue conducting
activities that can contribute to society, local
communities, and environmental protection
through its technologies.

• We have produced the whole CSR Reportin PDF format and posted it on our Web site.
This booklet is a digest outlining the main
messages and topics in the Report.
• The project areas Hitachi is focusing on in
the field of environmental protection are
outlined under “Activities.”• Opinions of employees participating in activities and diverse stakeholders have been included in the Report in the “Voices” articles.

Please answer the Questionnaire overleaf.

Questionnaire on Hitachi Group CSR Report 2008 Digest
Please complete the questionnaire and mail or fax it to the address below.

CSR Promotion Department, 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 CSR Report 2008 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.)
Message from the President
Activities
Generating Electricity

Hitachi’s CSR Vision
Using Electricity

Hitachi’s Environmental Strategy

Controlling Electricity

CSR Management
Corporate Governance and Risk Management
CSR Promotion Activities
Total Commitment to Compliance
Respect for Human Rights
Next Society
Monozukuri and Services from the Customer’s Perspective
Working in Harmony with Local Communities
Collaborative Creation with Suppliers
Employees: The Key to Hitachi’s Future
Next Eco
Eco-Mind & Global Environmental Management
Next-Generation Products & Services
Super Eco-Factories & Offices
Worldwide Environmental Partnerships
Other
Third-Party Expert Opinion
Company Profile• 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 activities
Technology/quality(1) Areas of Excellence
Social contribution activities
Employment environment
Other ()
Compliance activities
Technology/quality(2) Areas for Further Improvement
Social contribution activities
Employment environment
Other ()• Please write below any other comments you have regarding the Hitachi Group’s CSR activities.

Customer satisfaction activities
Environmental protection activities
Customer satisfaction activities
Environmental protection activities

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

Web site

SeminarExhibition

From a Hitachi employee)

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

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

)