Hitachi Group
Corporate Sustainability Report 2010

Contents
1-iii

CSR Activity Reporting Policy

1-iv

A Message from Management

2
4

Top Dialogue

CSR Management at Hitachi
CSR at Hitachi / Ensuring Strict Compliance

8Social Innovation Business Contributions
Hitachi’s Worldwide Reach / Supplying Advanced Railway Systems to the World /Fuging Technologies to Create Smart Energy Solutions / Improving Lives One Person at a Time

16
17

Living Together with Society
Procurement, the Supply Chain, and Respect for Human Rights
Raising Awareness of Human Rights / Collaboration with Suppliers

18

Providing Supportive and Diverse Workplaces
Diversity Embodies Our Respect for Individuality / Employing People with Disabilities / Work-Life Balance20
21

Hitachi’s Environmental Conservation
Environmental Management toward a Sustainable Society
Hitachi’s Environmental Vision / Achieving Environmental Vision 2025 / Prevention of Global Warming /Conservation of Resources / Preservation of Ecosystem

24
25

CSR Management at Hitachi
Corporate Governance
Strengthening Governance / Internal Control / Group Management

27

CSR Promotion Activities
Striving to Be a Global Leader in CSR / Fiscal 2009 Results and Fiscal 2010 Plans

30

Compliance and Risk Management
Preventing the Recurrences of Misleading Representation / Preventing Recurrences of Antimonopoly Law Violations
Compliance Reporting System / Protecting Personal Information and Information Security / Export Control /Respect for Intellectual Property / Business Continuity Plans (BCPs)

36
37

Living Together with Society
Improving Monozukuri and Service
Ensuring Product and Service Quality / Building Customer Feedback into Our Products / Universal Design

43

Communication with Shareholders and Investors
Policy on Information Disclosure / Proactive IR Approach / General Meeting of Shareholders /Results of External SRI Assessments in Fiscal 2009 / Basic Policy for Prevention of Takeovers

46

Social Contribution Activities
Finding Solutions for Social Issues / Educational Initiatives / Environmental Initiatives / Social Welfare Initiatives /The Diverse Activities of Our Six Foundations / Support for Volunteer Activities

54

Collaboration with Suppliers
Global Sharing: Hitachi Guidelines for Procurement / Promoting the Use of Environmental Management Systems /Partnerships / Our Open-Door Policy

56

Employees: The Key to Hitachi’s Future
Creating a Positive Work Environment and Global Corporate Culture / Openness: Promotes the Expression of Employees’ Full Potential /Challenge: Supports Growth / Diversity: A Base for the Healthy Expression of Individuality /A Safe, Pleasant Workplace /Enriching the Lives of Employees and Their Families / Main Assessments & Awards

65

Hitachi’s Environmental Conservation

66

Commitment | Message from the Chief Environmental Strategy Officer

1-iContents

68
70

Vision | Hitachi Group Corporate Environmental Management
Highlights: Contributing to Environmental Conservation through Business
Environmental Business of the Hitachi Group / Prevention of Global Warming / Conservation of Resources / Preservation of Ecosystem

76
78

Environmental Action Plan / Hitachi Group Fiscal 2009 Environmental Action Plan: Targets and Results

Eco-Mind & Global Environmental Management
Environmental Management Structure / Improving on Environmental Initiatives

84

Next-Generation Products & Services
Developing Environmentally Conscious Products / Prevention of Global Warming / Conservation of Resources / Preservation of Ecosystem

90

Super Eco-Factories & Offices
Super Eco-Factories & Offices / Prevention of Global Warming / Conservation of Resources / Preservation of Ecosystem /Environmental Load Data Generated through Business Operations

98

Worldwide Environmental Partnerships
Environmental Communication / Building Environmental Partnerships / Activities to Protect Ecosystems

103

Independent Review

A Century of Service Articles
16

Helping Rebuild Tokyo after the Great Kanto Earthquake

18

Cultivating People since Our Inception

20

Pioneering Effort in Environmental Conservation

24

Welcome Speech to New Employees

36

Hitachi Henjin-kai

65

Construction of the Hitachi Industrial Water Facility

104

Company Profile/Economic Performance

105

Major Fields of Business and Products

106

Comparative Table with GRI Guidelines

116

Indexes by Category

118

Inquiries

Symbol Marks Used in This Booklet† Technical terms, proper nouns, etc., in the text requiring explanation* Additional explanation of terms, etc., in tables or diagrams
Full texts of policies or guidelines, details of activities, numerical data, etc., are included in the Hitachi Group Corporate Sustainability Report 2010 (PDF)
Indicates the title and URL of the Web page related to the article. The environmental action report (Hitachi’s Environmental Conservation; pages 65–103) can be
downloaded as a file from the Web site below
http://www.hitachi.com/environment/data/

1 - iiCSR Activity Reporting Policy
Latest information
Reports on detailed activities (society and the environment)

On Hitachi, Ltd. Web site

Reports on material issues (society and the environment)

bookletCSR (corporate social responsibility)
http://www.hitachi.com/csr/

Hitachi Group
Corporate Sustainability
Report 2010 Digest
Reports on detailed activities (the environment)

Environmental Activities
http://www.hitachi.com/environment/

PDF
Hitachi Group
Corporate Sustainability
Report 2010

bookletHitachi Group
Environmental Sustainability
Report 2010

The Hitachi Group gathers and discloses issues relating to CSR activities that might interest readers. We issue the Hitachi Group Corporate Sustainability Report 2010
Digest (booklet) to present crucial management issues that are of particular social interest; the Hitachi Group Corporate Sustainability Report 2010 (PDF), which offers
more detailed information; and the Hitachi Group Environmental Sustainability Report 2010 (booklet), for stakeholders tracking our environmental activities. We also
disclose the latest information on our Web site.

Scope of Reporting

Initiatives That We Participate in[Period]
The main period covered is fiscal 2009 (April 1, 2009 through March 31, 2010)[Companies]
Hitachi, Ltd. and 900 consolidated subsidiaries (including modified entities towhich the equity method of consolidated reporting applies): total 901 companies[Scope of data]
Financial data Hitachi, Ltd. and 900 consolidated subsidiaries (including
modified entities to which the equity method of consolidated reporting applies)
and 157 affiliated companies that use the equity method
Social data Scope of data indicated under each item
Environmental data Hitachi, Ltd. and 900 consolidated subsidiaries (including
modified entities to which the equity method of consolidated reporting applies):
total 901 companies. However, for environmental load data generated throughbusiness operations, companies that cover 90% of the load (based on Hitachicalculations)

We have been a member of the United Nations Global Compact since February2009.

We have been a member of the World Business Council for Sustainable
De velopment since 1995.

Related Reports
We report on the financial performance of Hitachi, Ltd. in the “Financial
Highlights” and Annual Report.

External Evaluations
We were selected in September 2009 for the Dow Jones Sustainability World
Indexes (DJSI World), one of the world’s leading sustainability investment
fund indexes. We were also awarded the Silver Class in the Sustainable AssetManagement (SAM) Sustainability Yearbook 2010.

Guidelines Referred to in Preparing This Report“Environmental Reporting Guidelines” (FY 2007 version), Ministry of theEnvironment, Japan“Environmental Reporting Guidelines 2001—With Focus on Stakeholders,”
Ministry of Economy, Trade and Industry; JapanGRI Sustainability Reporting Guidelines (G3), Global Reporting Initiative*This CSR report is published annually.

1 - iii

A Message from Management

Takashi Kawamura
Chairman
Hitachi, Ltd.

At Hitachi, Ltd., we celebrate our centennial in 2010. On behalfof the Hitachi Group, I would like to express my gratitude to
all who have supported us over the years. The Company startedout by championing the cause of Japanese technology at the
Hitachi Mine. We have adhered to our founding concepts ofharmony, sincerity and pioneering spirit to overcome various
adversities and to contribute to social progress. In response toserious issues, such as climate change and the financial crisis,
the world has been working to establish new approaches inevery field. We will remain true to our roots over the next century by renewing our determination to continue evolving as acompany that can contribute to a better world.
The business climate has been extremely tough for Hitachi
in recent years. We took immediate steps to overcome thesechallenges in fiscal 2009, notably by improving our cost structure, by slashing fixed expenses, and by increasing our capitalization to reinforce our financial position. At the same time, we
made social innovation our operational focus. We are therefore
overhauling our business portfolio, including the integration of
the information and telecommunications operations with thepower and electronics operations.
We will pursue sustainable growth in fiscal 2010, shifting tothe offensive from our current defensive approach, and I will
strive with our new president to decisively accelerate our global
expansion. With our motto “moving into the next 100 years
with reliable technology,” we aim to be the company of choice
for social innovation solutions throughout the world.
We will redouble our commitment to all our stakeholders—from customers and business partners to shareholders
and other investors, non-governmental organizations, andcommunities—in fulfilling our social responsibilities as a global enterprise. We look forward to your ongoing support andencouragement for these endeavors.

1 - iv

Top Dialogue

Harnessing Comprehensive Strengths toContribute to Environmental andSocial Progress as a Truly Global Enterprise
Hiroaki Nakanishi, President, Hitachi, Ltd.
Aron Cramer, President and CEO, Business for Social Responsibility (BSR)
BSR
Headquartered in the United States, BSR has been a leader in CSR since 1992. It serves a network of more than 250 companies
around the world from offices in Asia, Europe, and America, and advises companies on their CSR management
and the development of sustainable business strategies and solutions.

Cramer: How are you positioning Hitachi for success in thecontext of a stagnating global economy?
Nakanishi: Since 1910, Hitachi has grown and contributed to human progress bymeeting society’s needs
through technology andinnovation, and we willremain firmly committed
to that approach. Today,
our world is changing dramatically, driven by events
that have become increasingly important on a global scale.
I think we can overcome or mitigate challenges such as climate change through alliances and multilateral approaches.
Public and private partnerships that leverage knowledgebased and technology-based business innovation are crucial. That is where Hitachi can add real value, by providing
truly innovative social and environmental solutions that address fundamental global issues. To that end, Hitachi can
support sustainable economic development and humanprogress across countries through total system solutions, orwhat we’re calling Social Innovation. To improve lifestyles
and stability, we must work with government and society
to create a safe, secure, and environmentally sustainablesocial infrastructure. I believe Hitachi will be one of themost trusted and important companies of this decade andbeyond because we are now poised to play a tremendousrole in helping countries become more sustainable throughSocial Innovation. But it is important for our employees tocapitalize on these opportunities by clearly understanding
what society needs from us, and then we must tackle thoseissues and engage in a Group-wide effort to deliver on society’s requirements that benefit both Hitachi and society.
Cramer: Does that mean it’s important for your engineers
to consider social acceptance when pursuing technologicaldevelopment?
Nakanishi: Exactly. But this goes beyond engineers. All
Hitachi employees play a role and should share the same

Hitachi Group
Corporate Sustainability
Report Digest 2010

Top Dialogue

Hiroaki NakanishiAron Cramer

awareness. If we look at the social infrastructure of emerging
countries, where markets and customer needs are incredibly diverse, our engineers must identify needs with thoseconsiderations in mind and develop technologies that winsocial acceptance. On top of that, our sales and planning
people must operate on the frontlines to relay their understanding of what society expects and needs. These attitudes
and actions will be vital for our growth.

Optimizing the Global Social Infrastructure
Cramer: Hitachi will celebrate its centennial this year. Whatlessons from your history are most relevant for the future?
Nakanishi: Our founder, Namihei Odaira, was determined
to help drive social progress by taking it upon himself torevive a struggling Japanese industry and outdated economy. His philosophy was to contribute to society throughinnovative technologies and product development. Hitachi
overcame numerous challenges early on through adaptive
leadership that enhanced technologies and quality, cultivated human resources, demanded high ethical standards,
and improved market and customer trust. We have much tolearn from such leadership behavior.
Cramer: The world must tackle the challenges of securing
energy and water resources. How can Hitachi help resolvethese issues?
Nakanishi: As a Social Innovation Business the environment is an essential
platform for all our operations and thinking. We
have accumulated a diverse
portfolio of environmental
technologies for creating smarter, more sustainable equipment and systems in everything from power to transportation to water systems. Our greatest strength is that we candeliver comprehensive solutions for the entire social infrastructure. Take Tokyo, for example, where natural resources
are limited but energy and water demand is high, Hitachi has

2played a leading role to optimize the social infrastructure of
the city so that it is smarter and more sustainable. As I lookout globally, the opportunities have increased greatly for us
to help governments fulfill their missions of accomplishingeconomic growth while safeguarding the environment andsupporting healthy lifestyles. We can thus optimize societies
as a whole to be more sustainable, and that is Hitachi’s real
strength and differentiating value.
Cramer: Considering the nature of the sustainability challenge, it sounds like social optimization will become increasingly important.

and build borderless alliances.
Cramer: At the same time, it will become important to globalize the mindsets of decision makers at headquarters.
Nakanishi: Certainly. To become a global company, we needglobally minded leaders. One of my missions is indeed toreform the mindsets of senior executives. Management diversity is a key factor for Hitachi’s success. To be global, we
must think locally at the market level and reflect global perspectives at headquarters. When you operate globally you
have to empower those closer to the customer or market tomake swift decisions. So our business “control towers” need
to be near our markets. Also, headquarters must become
global through the diversity of people and ideas. By getting
top managers of businesses to focus more on markets, while
headquarters becomes more global through diverse people
and perspectives, we will operate more dynamically worldwide.
Cramer: I agree. Lastly, what role do you think CSR willplay in helping Hitachi to achieve further success?
Nakanishi: I think that CSR is the foundation of global operations. CSR relates directly to the course we ought to takein serving social needs and cultivating the markets throughwhich we deliver the products and services that customers
want. It is important for top managers in each business unit
to properly understand the regionally specific values andneeds of Hitachi’s stakeholders, then share them within theGroup to operate globally. It is crucial for Hitachi to take action to ensure healthy social progress worldwide.

Employing Borderless Partnerships toDrive Dynamic Global Management
Cramer: What challenges does Hitachi face in promoting
globalization?
Nakanishi: At Hitachi, all employees need to understandthat we seek resources internationally to serve the needsof the world marketplace. We want them to remain awarethat our markets are global and to refine their skills. Our
employees must identify the true needs of our customers
from a global perspective and meet those needs to satisfy
expectations locally. It is critical for us, where needed, toform government and regional partnerships to undertakeprojects that create sustainable economic development supported by Hitachi innovation. However, borders between
countries and industries are eroding, so we can only succeed
if our employees improve their skills to work in the global
economy, while we, as a business, partner with governments

3

Hitachi Group
Corporate Sustainability
Report Digest 2010

Top Dialogue

Hiroaki NakanishiAron Cramer

CSR Management at Hitachi

CSR at Hitachi
We formulated a Group vision to foster
a prosperity-based corporate credo of contributing to society
through the development of superior, original technology and products

CSR Policy of the Hitachi Group
1. Commitment to Corporate Social Responsibility (CSR)
2. Contribution to Society through Our Business3. Disclosure of Information and Stakeholder Engagement
4. Corporate Ethics and Human Rights
5. Environmental Conservation
6. Corporate Citizenship Activities
7. Working Environment
8. Responsible Partnership with Business Partners

Hitachi Group Vision
We will contribute to the solution of
fundamental global issues, and pursue
the realization of a better, more
prosperous global society, in line with
Hitachi’s founding spirit, utilizing thegroup’s knowledge and technology.

Adopted March 2005

Adopted November 2006

Corporate Credo
Adopted June 1983
Revised September 1996

Corporate Credo
CSR Policy of the Hitachi Group
http://www.hitachi.com/csr/introduction/hitachi-csr/index.html
Results of CSR Activities in Fiscal 2009 and Goals/Plans for Fiscal 2010 Pages 27–29

We celebrate our centennial in 2010. In globalizing our operations over the past 100 years, we have addressed such
United Nations Millennium Development Goals as ending
poverty and hunger, providing universal education, combating diseases, and ensuring environmental sustainability. We will continue to contribute to a healthy, safe, andcomfortable lifestyle and environment around the globe bydrawing on our accumulated expertise and technologies to
produce innovations. We will also engage with stakeholders,reflecting social feedback in our strategy, product development, and operations to help resolve the social, economicand environmental issues confronting society.
Five-Year CSR Roadmap

Demonstrate leadership as asocial innovation enterprise
Collaborate with key stakeholders to resolve global
social issues

Becominga truly global
corporation,
realizing“One Hitachi”

Integrate management strategies with CSR and instill CSR principles in operations

Reinforce Group governance and globalize operations and activities

April 2010

Hitachi Group
Corporate Sustainability
Report Digest 2010

April 2011

CSR Management at
Hitachi

CSR at Hitachi

April 2012

4

April 2013

April 2014

CSR Roadmap

the tools in fiscal 2009, testing them in North America andthen supplying them to operations throughout Europe
and Asia. Hitachi, Ltd. and 23 other Japanese and eightGroup companies outside Japan employ these tools.

Hitachi produced its Three-Year CSR Roadmap, a medium-term plan for CSR activities, in fiscal 2006. We drewon this roadmap to review our various activities on society from a global perspective, and sought to resolve theresulting challenges. In fiscal 2009, these efforts included
our selection in the Dow Jones Sustainability World Indexes (DJSI World).†1 We also made the Silver Class in
the Sustainability Yearbook 2010 of Swiss firm Sustainable
Asset Management †2 and PricewaterhouseCoopers published in January 2010.
We have formulated a new Five-Year CSR Roadmap
from fiscal 2010 and beyond. We will strive under thisinitiative to become a truly global corporation, reinforce
Group operational foundations, quantitatively assess our
CSR efforts, and function more transparently.

Results of Fiscal 2009 Self-Assessment
Hitachi’s self-assessment for fiscal 2009 scored higher
than in the previous year, particularly for corporate ethics, human rights, and procurement. The gains were thefruit of a code of conduct and procurement guidelines
based on the 10 principles of the United Nations Global
Compact and efforts to strengthen our compliance system and engage with external experts. We aim to boost
our score in fiscal 2010 by bolstering such areas as risk
management, CSR education, and disclosure.
FY 2009 Self-Assessment Results (Hitachi, Ltd.)

Materiality Process
We include stakeholders in our CSR decision-making
process. We engage with them worldwide on key strategic issues, evaluating global social problems requiring
our attention from the perspectives of community andbusiness sustainability. The CSR Promotion Committee
deliberates on matters raised in stakeholder dialogues.
This body of Hitachi executive officers incorporates themost significant ones into CSR initiatives for subsequentfiscal years and presents information on important social
issues in the Corporate Sustainability Report.
In fiscal 2009, Hitachi representatives met in Brussels with
officials from the European Union and non-governmentalorganizations and with socially responsible investors to discuss regional environmental policies and businesses.

Policy 8
Responsible partnership withbusiness partners
64.0%
70.0%

100

Policy 2
Contribution to society
through our business
71.5%
71.5%

50
Policy 7
Working environment
83.4%
87.6%

Policy 6
Corporate citizenshipactivities
83.5%
83.5%

Summary of Issues That Hitachi Considers Important
Importance for stakeholders

Policy 1
Commitment to corporatesocial responsibility (CSR)
69.5%
72.6%

Policy 3
Disclosure of
informationand stakeholder
engagement
74.2%
74.2%

0

Policy 5
Environmental
conservation
74.0%
74.0%

Policy 4
Corporate ethics andhuman rights
67.3%
78.2%
2008
2009

Main Topics Covered in Each Policy of
the CSR Self-Assessment Tool

Supply chain

Products that help createa sustainable society

Discrimination prevention

Global diversity

Chemicals and emissions
from operations

Making existing products
more energy efficient

Policy 2: Coordination with business strategies; sustainable
designs; customer satisfaction

Labor/safety and hygiene

Product safety

Policy 3: Information disclosure; dialogue with stakeholders

Policy 1: CSR vision; CSR education; risk management

Policy 4: Corporate governance structure; awareness of ethics;
compliance; human rights
Policy 5: Carbon management strategies; resource recycling;
ecosystem conservation

CSR issues raised through dialogues with stakeholders are assessed and confirmed
from two perspectives: importance for stakeholders and effect on business success.
Activities that address especially important issues are detailed in CSR reports.

Policy 6: Strategic social contribution; participation in local
communities; social enlightenment
Policy 7: Respecting diversity; fulfilling work environments;
work-life balance

Effect on business

Policy 8: CSR procurement; communication with suppliers

Employing CSR Self-Assessment Tools
We use the CSR self-assessment tools that we developedin fiscal 2008 to clarify and strengthen our Group-wide CSR
initiatives. We produced an English-language version of†1 Dow Jones & Company and Sustainable Asset Management codeveloped this benchmark forassessing companies from economic, environmental, and social perspectives.
†2 This Swiss entity is a socially responsible investment assessment and asset management firm.

5

Hitachi Group
Corporate Sustainability
Report Digest 2010

CSR Management at
Hitachi

CSR at Hitachi

CSR Management at Hitachi

Ensuring Strict Compliance
The Hitachi Group is reinforcing employee compliance,
while taking steps to address risk

Establishing and Implementing
Corporate Ethics Month

Formulating the Hitachi Group Codeof Conduct

Corporate ethics and compliance form the bedrock of
all our activities. Starting from October 2009, October
is Hitachi Group Corporate Ethics Month. This initiative
highlights the need for executives and employees toalways consider compliance in their actions, with top
management taking the lead to enhance corporate ethics and adherence to legal requirements.
In the past, compliance officers were mainly stationed
in sales divisions. Today, the general managers of all divisions and presidents or directors of Group companies
concurrently serve as such officials.
In fiscal 2009, we distributed top management messages on compliance to all Group company employees
and implemented workplace activities based on Hitachi’s
Corporate Ethics and Compliance Handbook. Other initiatives are displaying compliance messages on computer
screens, ensuring awareness of our internal whistleblower system, and arranging presentations by externallawyers and compliance experts.
All business sites identified compliance risks andmade improvements, if needed. With 15,000 employees attending, seminars were given by in-house andoutside experts.

Hitachi, Ltd. formulated the Hitachi Group Code of Conduct in August 2010 as part of a shift to a new Groupmanagement structure to mark Hitachi’s centennial. This
document prescribes specific requirements for all HitachiGroup employees from corporate ethics and compliance
perspectives. The code applies to all officers and employees of Hitachi, Ltd. and its consolidated subsidiaries.

VOICES

Hitachi Group Code of Conduct Web site:
http://www.hitachi.com/csr/csr_images/codeofconduct.pdf

Global Push to Stop Corruption
Japanese corporations outside Japan face tighter bribery controls and stronger provisions under competition
laws. The U.S. Foreign Corrupt Practices Act has exposed
an increasing number of cases. In August 2008, Hitachi,Ltd. formulated internal rules to prevent bribery of public
officials in and outside Japan. We also established global
guidelines on entertaining and exchanging gifts, detailing procedures and standards for assessing employee
propriety. All Group companies have implemented similar regulations. In October 2008, an independent U.S. attorney delivered an anticorruption presentation to 212

Craig P. Seebald

Strengthening Compliancewith U.S. Antitrust Laws

Partner, McDermott Will & Emery LLP

It is more important
than ever that Hitachi
employees respect
U.S. antitrust laws as
U.S. antitrust enforcement continues
to be a priority, andpenalties are severe.
U.S. antitrust laws
restrict companies and individuals fromentering into anticompetitive agreements,

such as market allocation, price fixing and bid
rigging agreements.
The best way to avoid antitrust risk is
to follow Hitachi’s policies and avoid communications with competitors unless there isa legitimate reason for the communication,such as negotiating business transactions(joint venture or a buy-sell relationship),participating in a trade association and/or
engaging in standard setting activities. It
is generally never acceptable to exchange

CSR Management at
Hitachi6

Hitachi Group
Corporate Sustainability
Report Digest 2010

Ensuring Strict Compliancepricing, supply or customer information
with a competitor. If you have any questions
regarding competitor communications,please consult the Legal Department.
Antitrust compliance is not just for U.S.
employees. Any employee who makes
decisions that impact the U.S. market mustcomply with U.S. antitrust laws.

Group compliance officers.
In October 2009, we arranged for American and European outside lawyers to lecture 286 Group complianceofficers about worldwide anticorruption trends, including U.S. and European competition laws.

Compliance seminar in Asia

Risk Management
All Hitachi divisions manage business risks, and thenaudit areas with potential issues. If problems do arise, divisions collect reports and formulate emergency plans toprevent recurrences.
Risks are increasingly global and complex. They now
encompass everything from natural disasters and othertraditional concerns to climate change, employee diversity, and human rights issues such as poor working conditions in the supply chain.
We are working across the company, by collaborating with in-house companies as well as Group companies, to rebuild our risk assessment standards. We audited
the risks of headquarters operations and regional officesin the Americas, Europe, and Asia, assessing significant
business and company-wide risks.
We will broaden risk audits to comprehensively reinforce our risk management framework. At the same time,
we will improve risk awareness among all employees, notably through information sharing and education.

Lecture on U.S. and European competition law trends

Deploying e-Learning Tools
to Reinforce Compliance in Asia
Group companies in seven Asian countries outside Japanand China strive constantly to boost corporate governance and compliance.
Hitachi Asia Ltd. developed the e-Learning System,
which features modules for such risk areas as contracts,
intellectual property, export controls, and anticorruption
and antitrust laws. More than 1,000 employees registered
to use these modules by the end of fiscal 2009.
To complement online learning, 90 employees fromSingaporean and Indian Group companies attended
seminars on contractual issues, legal systems, and export controls.

VOICES

Complying with European
Commission Competition Law

Through working with Hitachi, Ltd. andvarious subsidiaries in connection withseveral European Commission investigationsof alleged infringements of European
competition rules, we found that eachcompany has taken the investigations
very seriously, not least because theCommission can impose significant fines forproven infringements, based partly on thevolume of affected sales and the durationof a conspiracy. Since January 2007, theMichael Reynolds

Philip Mansfield

Partner, Allen & Overy LLP

Partner, Allen & Overy LLP

Commission has imposed fines totaling over€800 million on Japanese companies forparticipating in cartels in breach of EU competition rules.
Compliance with the EU competition
rules is therefore a key consideration for
Hitachi. Its antitrust compliance program anda presentation on EU competition rules on
Compliance Month on October, 2009, underscored that commitment.

7

Hitachi Group
Corporate Sustainability
Report Digest 2010

CSR Management at
HitachiEnsuring Strict ComplianceSocial Innovation Business Contributions

Hitachi’s Worldwide Reach

The United Nations Millennium Development Goals, adopted in 2000, seek
to address numerous global issues. They include poverty, education, andhealthcare, and extend to dealing with aging populations and deterioratingsocial infrastructures in advanced nations.
The Hitachi Group is taking advantage of its diverse businesses andactivities in 40 countries to help society resolve such fundamental issues.
1 Advanced high-speed
trains in the United Kingdom

Hitachi, Ltd.
(detailed on page 10)
2 EU-Hitachi Science &Technology Forum in Europe

Hitachi, Ltd.

3 Hitachi-DST Scholarship
Program for South African Engineers

Hitachi, Ltd.
We joined hands with that nation’s
Department of Science and Technology
to create a training program in Japanfor young South African electric powerengineers. The curriculum includes
practical training at our plants and visits
to electric power company facilities.

1
2(detailed on page 49)

74Supporting informationand communication
technology training in Saudi
4

5

6

8
9
11 10
12

Arabia and other nations
Hitachi Software Engineering Co., Ltd.
and other Group companies

13

5 Water recycling systems

in the United Arab Emirates
Hitachi Plant Technologies, Ltd.
We built and commercialized a new
business model for purifying household
sewage and selling the recycled waterin Dubai, which depends heavily on
desalination.

3

6 Providing electricity to
Neemrana Industrial Parkin India
Hitachi, Ltd.
Gross Domestic Productby Nation in 2008
(billions of U.S. dollars)

7 Supplying advanced
medical equipment

in Mongolia †1
Hitachi Medical Corporation

1,000 or more

8 Visiting Chineseelementary schools andkindergartens to holdenvironmental classes

250–1,000
10–250

Hitachi (China) Ltd.
We have run such classes continually in
China since fiscal 2008.

0–10(detailed on pages 46–49)

No data available

Donating a dormitory to
Hitachi Hope Elementary
School in China
9

Hitachi (China) Ltd.

Hitachi Group
Corporate Sustainability
Report Digest 2010

Social Innovation
Hitachi’s Worldwide Reach
Business Contributions

GDP data source: International Monetary Fund
http://www.imf.org/external/

814

Regional contributions

Water conservation

EnergyMobility

Healthcare

10 Model project for energy
conservation in China

Hitachi (China) Ltd.
We launched the Cooperation Project forEnergy-saving and Emission Reduction
among SMEs with the China Center for
Business Cooperation and Coordinationand the Ningbo Municipal People’s
Government.
11 Global caravan activities in
China, Thailand, and other countries †2
Hitachi, Ltd.

(detailed on page 57)
12 Removing antipersonnel
mines in Asia and other regions

Hitachi Construction Machinery Co.,Ltd.
(detailed on page 14)
13 Hitachi Young Leaders
Initiative in Southeast Asia

Hitachi, Ltd. and Hitachi Asia Ltd.

17
16

14 Installing photovoltaic
power systems in areas
without electricity in Indonesia

19
18

Hitachi High-Technologies
Corporation(detailed on page 14)15

15 Providing ballast water
purification system in all regions

Hitachi Plant Technologies, Ltd.
Tankers affect aquatic life because they
repeatedly take on and discharge ballast
water to adjust for cargo loads. We
can swiftly purify this water through atechnique that collects and magneticallyseparates organisms.
16 Providing water pumping
systems to California, U.S.A.

Hitachi Plant Technologies, Ltd.

17 Constructing ultra-supercritical pressure thermal
power stations in the United Statesand elsewhere
Hitachi, Ltd.
We have built numerous such worldclass coal-fired facilities in the UnitedStates, Europe, and other countries.
18 Supplying proton therapy
system in the United States

Hitachi, Ltd.
We developed a discrete spot scanning
proton therapy technique to minimize
damage to normal tissues, becoming
the first to achieve Food and Drug
Administration 510(k) clearance.
19 Managing Hitachi North
American Food Drive†1 Including magnetic resonance imaging, computed tomography, and x-ray systems†2 This program instructs local manufacturing sites on ways to improve productivity and save energy†3 Donating food to charities assisting low-income earners

in the United States †3
Hitachi Group (North America)

9

Hitachi Group
Corporate Sustainability
Report Digest 2010

Social Innovation
Hitachi’s Worldwide Reach
Business Contributions

Social Innovation Business Contributions

Supplying Advanced Railway Systems to the World
Leveraging advanced technologies and expertise to provide environmentallyconscious and safe transportation

Ashford Train Maintenance Center

Modal shift has recently gained attention as a concept fortransporting people and goods by alternative means to reduce environmental burdens. Ships and railways generatesignificantly less CO2 per transportation unit than counterpart modes.

St. Pancras
Ebbsfleet

MargateLondonAshfordDover

Making Railways
More Environmentally Conscious

High Speed 1 route
Main conventional lines

Hitachi is building on its long involvement with Shinkansen(bullet train) and other railway projects to pursue technological advances. Work with East Japan Railway Company
on a hybrid drive system that combines diesel engines andstorage batteries is a good example.
The A-train is one of Hitachi’s railway systems. Thisrail vehicle system employs lightweight aluminum toslash operational energy consumption and simplify recycling, thereby minimizing ecological impact. The Atrain’s manufacture is dramatically more productive andHitachi Group
Corporate Sustainability
Report Digest 2010

Social Innovation
Supplying Advanced Railway
Business Contributions Systems to the WorldHigh Speed 1 route and main conventional lines
on which British Rail Class 395 trains run

environmentally conscious than conventional models.
That is because Hitachi can easily collect and recycle aluminum scrap during production and can automate fabrication because the train cars do not have frames. Friction
stir welding, an innovative joining technology, minimizes
warping and eliminates the need for painting. Modular
construction slashes part numbers. Computers replace

10CO2 Emissions from Different Means of Transportationand minimal disruption when starting the regular service.
The Class 395 also won in the Rolling Stock Excellence category of the Eversholt Rail Business Awards 2009, recognizing that the 174 cars that Hitachi delivered are among
the best in the UK.” He added that, “Hitachi is handling upkeep at the newly constructed Ashford Train MaintenanceCenter, which hired most of its staff locally. Employees benefit from excellent training opportunities that enable themto keep refining their skills. The fast service into London has
regenerated Ashford and the entire region of Kent. Hitachi islooking for further opportunities to serve potential growth
in railway demand throughout Europe.”
Such a renewed interest in railways is spreading aroundthe world, notably through the emergence of U.S. plans
for a high-speed railway network. Hitachi is contributing
to such planning in the United States, in Brazil, which isplanning its setup ahead of the Rio 2016 Olympic Games,
and in India. Contributions to modal shifts are yet anotherexample of how Hitachi helps combat climate change.

Passenger vehicles
168
Airplanes
109
Buses
51
Trains19
Grams of CO2 per passenger kilometer in fiscal 2007
Source: Countermeasures against Global Warming in the Transport Sector (inJapanese), Ministry of Land, Infrastructure, Transport and Tourism

many of the tasks of skilled engineers, ensuring high quality and safety, even with short delivery schedules.

Hitachi Train Well Received
in the United Kingdom
Hitachi’s Class 395 high-speed train debuted on High
Speed 1, the United Kingdom’s first high-speed railway
line. Regular passenger service began in December 2009.
We won the contract to supply these trains because wepledged to deliver six months ahead of schedule and because of the proven reliability of the technologies.
High Speed 1 connects London and Ashford in just
37 minutes, down from 80 minutes before. Sir Stephen
Gomersall, Chief Executive for Europe, Hitachi Ltd., commented that, “The first domestic high speed train service
in the UK has been a great success since its inauguration.
South Eastern Railway Ltd. was pleased by the early delivery

VOICES

Hitachi’s Railway Technology

Accelerates modal shift• A-train (aluminum train cars)• High-speed train

Environmentallyconscious

Further reduces environmentalload of railways• Small, lightweight inverter• Hybrid drive system

Highlyreliable

Contributes to safe, stable, andhigh-density transportation• Signaling and train control systems• Traffic system• Operations systems

Charles Horton

Class 395 Proves the Advantages ofHigh-Speed RailThe introduction of the UK's first high-speed
trains has been a great success. The new
Class 395 trains have meant that commutersin parts of the South East have been able
to reduce their journey times by half. As
important though, is the effect the newservices are having on the local economy
with businesses moving to the South Eastand likewise commuters moving to the area.
Throughout the program we have felt
reassured and confident in (Hitachi's) abilities.

Highly efficientManaging Director of London & South Eastern Railway Ltd.

We think their particular strengths are theiremphasis on process, commitment to on timedelivery and focus on reliability, enabling us
to run “preview” services six months early.
With all big complicated railway projects
there are always going to be challenges along
the way, but it is testament to the strong
partnership we have working with Hitachithat these have all been overcome.

11

Hitachi Group
Corporate Sustainability
Report Digest 2010

Social Innovation
Supplying Advanced Railway
Business Contributions Systems to the World

Social Innovation Business Contributions

Fusing Technologies to Create Smart Energy Solutions
Harnessing our strengths in electric power and information technology
to create smart grids that transform energy use

We supply power grid stabilization systems and advanced metering
infrastructure systems that provide detailed assessments and management ofresidential and office building electricity consumption so that the status ofenergy demand and supply can be visualized. Demand and supply are
optimally balanced for renewable energy, whose output is unstable.

Hitachi’s Smart Grid Concept
Renewable energy
Output fluctuates considerably

Photovoltaic power
generation

Tie line power
control
Consumption
information
High-efficienc y
operations

Wind power
generation

Large-scaleconcentrated
power station

Power grid

Storagebatteries

Power supply

Stable electricity supply

Power gridstabilization
systemThermal power
generation
Nuclear power
generation
Hydroelectric
power generation

Power gridstabilization control

SupplyManagement

The increasing deployment of power systems that harness
solar and other renewable energy is helping reduce carbon emissions and society’s dependence on fossil fuels.
But there are numerous challenges in producing electricity
from these resources. Weather conditions cause dramaticfluctuations in output from solar and wind power, increasing the potential for the entire power supply system tobecome unstable.

Japan, for example, has already completed some ofthe power generation and transmission stages of a smart
grid. Hitachi is working on the next step, which will be
the installation of a smart grid for the entire power network, encompassing residential and office building electricity consumption.

Linking Homes and Electric Power
Companies with Information

Toward Smart Grid Installations

Expanding an advanced metering infrastructure will be
the first step toward a truly smart grid and a smarter citythat links homes and electric power companies throughinformation and communications. Once in service, thisinfrastructure enables utilities to remotely monitor anddeal with customers who relocate. Another advantage
is that those companies would get the details on how
much electricity home users consume or send to the gridfrom their residential photovoltaic power systems. Kansai

Smart grids are vital for stabilizing and securing the power
supply. During transmission from unstable sources of electricity or disruptions, smart grids can swiftly obtain and process output and demand data, then automatically optimize
or secure the demand and supply balance. This is why there
is such great worldwide interest in smart grids, although it
is important to note that local transmission and distribution
network requirements currently determine setups.

Hitachi Group
Corporate Sustainability
Report Digest 2010

Social Innovation
Fusing Technologies to Create
Business Contributions Smart Energy Solutions

12

Making Our Environmental
Technologies Available to the World

Office buildings and homes with photovoltaic powersystems and storage battery facilities

In many countries, transmission and distribution networks
are either aging or underdeveloped. Supplying networks
that draw on renewable energy could significantly alleviate global warming.
We will supply advanced environmental technologies,
tailoring them to local conditions and accumulating new
knowledge. These priorities will be central to our involvement in a Japan-U.S. smart grid trial that will begin in New
Mexico during 2010. Another project will be a collaborative initiative in China to lower that nation’s reliance on carbon fuels and to foster recycling. We will inevitably need totackle the challenges of creating international standards
for technologies and will therefore participate in multigovernment and private-sector initiatives.
The involvement of all key stakeholders will be essential for realizing our smart grid concept. They include national and local governments, electric power companies,
automakers, appliance manufacturers, and commercial
and residential power consumers.
We will maintain open relationships with all thesestakeholders while contributing to smart grid development that effectively harnesses renewable energy, such as
solar and wind.

Office buildings

AMI

Factories

AMI

Homes

AMI

Electric vehicles

AMI
DemandAMI (advanced metering
infrastructure systems)
They employ information technology to automatically read metersand provide detailed assessmentsof each user’s power consumption

Electric Power Co., Inc. and Kyushu Electric Power Co., Inc.
have already begun on-site assessments of advanced
metering infrastructure systems. The two utilities haveinstalled Japan’s first telecommunications-equipped watthour meters in homes as part of those trials. The data thatthey collect should help stabilize the power grid.
Linking homes and electric power companies throughan information and communications infrastructure would
enable all residential users to streamline power consumption in line with generation from renewable energy sources.
Hitachi will join hands with Japan Wind Development
Co., Ltd., Toyota Motor Corporation, and Panasonic ElectricWorks Co., Ltd., and several other companies to launch
the Smart Grid Demonstration Site at Rokkasho Village in
Aomori Prefecture, Japan in August 2010. Testing will include charging electric vehicles from wind and photovoltaic sources, with batteries storing surplus power. Trials will
also cover residential electricity consumption.

Smart Grids: The Global Impact in 2020
The global deployment of smart grids would lower CO2 emissions an estimated2.03 billion tonnes worldwide by 2020. That saving would represent 4 percentof the 51.9 billion tonnes of emissions forecast for that year.

ICT smart grids abatement potential
2.03
Reduce transmission anddistribution losses
0.9

CO2 emissions fromthe power sector
in 2020
14.26

Integration of renewables
0.83
Reduce consumption throughuser information
0.28
Demand-side management
0.02(billions of tonnes)

Source: SMART 2020, published by The Climate Group13

Hitachi Group
Corporate Sustainability
Report Digest 2010

Social Innovation
Fusing Technologies to Create
Business Contributions Smart Energy Solutions

Social Innovation Business Contributions

Improving Lives One Person at a Time
Continuing to Pursue United Nations Millennium Development Goals

We collaborate with local enterprises and support nonprofit organizations as part of ongoing efforts to help resolve local community issues.

Machinery employees to establish the non-profit Good
Earth Japan in March 2007. Since its creation, this nonprofit organization has provided agricultural training andplowed paddy fields. It has also built schools to help farmers get back on their feet. Hitachi Construction Machineryand the rest of the Hitachi Group are fully funding these
efforts, with numerous employees assisting.

Improving Quality of Life after Demining
The land mine clearing equipment that Yamanashi Hitachi
Construction Machinery Co., Ltd.†1 developed in 2000 is operating in civil war-ravaged Cambodia. However, engineersfrom Hitachi Construction Machinery Co., Ltd. who were in
Cambodia realized that clearing land mines alone would
not resolve difficulties in the communities.
People who lost their homes and work during the civil
war set about cultivating the cleared land and rebuilding their lives. However, such work is tough without basic
infrastructure such as roads and water, or even farming
techniques. As a result, engineers noticed that people frequently abandoned their land.
This situation prompted former Hitachi Construction

Hitachi Group
Corporate Sustainability
Report Digest 2010

Social Innovation
Improving Lives One Person
Business Contributions at a Time

Brightening Communities with Electricity
Around 230 million people live on Indonesia’s more than
17,000 islands. Yet, only about 60 percent of the population has access to electricity. Approximately 60 percent ofIndonesians live on Java, which represents 7 percent of thenation’s land area and accounts for 80 percent of its energy
consumption. The population density of Jakarta is similar
to that of Tokyo’s 23 wards. But there the comparisons end,
as Jakarta residents suffer from constant planned and unplanned power outages.

14

these communities would improve the generating, maintenance, and management efficiency of these systems.
Another benefit is that residents can take advantage of
stable electricity supplies to do business. Ventures underconsideration include Internet cafés offering refrigeration
and access to mobile communication-equipped PCs andthe industrial production of silk and tapioca.
In response to strong demand from Indonesia’s central
and local governments, Hitachi High-Technologies plans
to install battery recharging stations in three villages in fiscal 2010. Training teams of residents to maintain and manage the equipment will be crucial to ensuring that villages
widely adopt these systems.

The Indonesian government takes this social issue seriously, but it has experienced significant delays in its plans
to deliver 95 percent electricity access by 2025. So, Hitachi
High-Technologies joined hands with a local business
partner that makes storage batteries to electrify districts
with photovoltaic power systems.
Indonesia gets around double Japan’s sunshine hours
and solar radiation. The government has already installed
compact solar systems to power homes without accessto the grid, but the need to place such systems in eachhome caused power efficiency to deteriorate and madeit hard to set up a proper maintenance and management
structure.
Hitachi High-Technologies therefore chose to set up
large photovoltaic power systems to serve entire villages
by charging residents’ batteries as needed. Villages without electricity traditionally comprise 50 to 100 households,
so the company concluded that coordinating closely with

†1 An exclusive dealer and authorized factory for Hitachi Construction Machinery since 1980,
Yamanashi Hitachi Construction Machinery developed the world’s first remote-controlled landmine removal machine, which is based on a Hitachi Construction Machinery hydraulic excavator.
Currently, 70 units operate in Cambodia as well as six other countries (Vietnam, Afghanistan,
Nicaragua, Angola, Thailand, and Colombia).

Indonesian Village Electrification

Home

Home

BatteryHome

Battery

Photovoltaic power system

Battery

Village without electricity (Indonesia)

Community center

Home
Internet equipment

Battery

Satellite mobile phone

Charging andsharing electricalequipment
Home
Home

Battery

Battery

Battery recharging station15

Hitachi Group
Corporate Sustainability
Report Digest 2010

Social Innovation
Improving Lives One Person
Business Contributions at a TimeLiving Together with Society 1

Procurement, the Supply Chain, andRespect for Human Rights
We center our corporate activities around the concept of cherishing humanity. We
respect the human rights of stakeholders in every aspect of our business and the supply
chain, including in terms of product safety, environmental conservation, disclosure, anticorruption, and employment practices.

1923
A Century of Service

Helping Rebuild Tokyo after the Great Kanto Earthquake

The Great Kanto Earthquake of 1923 devastated the Keihin industrial zone, which
was the heart of Japanese manufacturing, surrounding the ports of Tokyo and of
Yokohama. Orders from around the nation poured into the Hitachi Works in Hitachi,
Ibaraki Prefecture, Japan, as it was unscathed. But Hitachi rejected such opportunities
for profit, preferring to devote all its production capacity to help rebuild Tokyo.
Hitachi became renowned for excellence in the process, and demand for its products
subsequently soared.
Photograph courtesy of the National Museum of
Nature and Science (Japan)

Hitachi Group
Corporate Sustainability
Report Digest 2010

Living Together
with Society

Procurement, the Supply Chain, andRespect for Human Rights

16

TOPICS

Exchanging Opinions on Human Rights Issues

Raising Awareness of Human Rights
We reviewed all internal corporate ethics and compliancerules and developed or overhauled our training programs to enhance human rights
awareness Group-wide. Almost
80 percent of our 260,000 Group
employees in Japan took ourrelated e-learning course in fiscal
2009. We are working on an English version of this program forGroup companies outside Japan.

Hitachi, Ltd. representatives met with officials from Amnesty
International Japan in fiscal 2009 to gain further insights into
human rights issues and how companies should address them.
Makoto Teranaka, secretary general of the organization, advised
Hitachi to be aware of human rights issues beyond permanent
employees to encompass contract workers, suppliers, and otherparties. We will draw on such suggestions to become even moresensitive to human rights, focusing particularly on improving our
supply chain management in that regard by collaborating with
relevant parties.

Participating in Supply Chain Sustainability TeamThe United Nations Global Compact Advisory Groupon Supply Chain Sustainability chose Hitachi, Ltd. as amember in fiscal 2009. That body focuses on encouraging adherence to human rights, labor, environment, andanti-corruption principles. We will draw on our expertisein these global social issues to support the UN’s efforts
and similarly we will draw upon best practices resulting
from the UN Global Compact’s recommendations on
implementing supply chain sustainability programs.

Makoto Teranaka, Secretary General, Amnesty International Japansuppliers in line with the Hitachi Supply-Chain CSR Deployment Guidebook, analyzing the results and providing
feedback. Respondents generally paid more attention tohuman rights, labor practices, safety and health, and fairtrade and ethics issues than a year earlier. Such surveys
aim to ensure a shared understanding of CSR while encouraging suppliers to further improve their efforts. We
are building a results database for sharing throughout
the Group.

Implementing European Human Rights Project

We launched a human rights project in Europe in fiscal 2009, the purpose of which is to ensure that humanrights are fully respected in all aspects of our operations.
As part of this, we hold awareness seminars, develop
tools for in-house education, and improve our internalmechanisms. We aim to use this project as a model for
supporting human rights issues around the world.

Results of Surveys Conducted to Promote CSR among Suppliers
Maximum score for each category: 5 points

Collaboration with Suppliers

Human rights /fair labor practices
3.9

The Hitachi Group values partnerships and openness
with suppliers. We accordingly strive to maintain and improve mutual understanding, offering equal business opportunities and choosing suppliers in keeping with theprinciple of free competition.
We publish and disseminate the Hitachi Supply-Chain
CSR Deployment Guidebook throughout the Group. This
document conforms with the guidelines of the Japan
Electronics and Information Technology Industries Association. We recommend our suppliers to use this guidebook for self-evaluation, a process that improves mutual
understanding and communications about CSR issues.
We revised the Hitachi Guidelines for Procurement Activities in June 2009 in line with United Nations Global Compact principles.

Social contributions
3.2

Safety and health
4.0

Information security
3.9

Environment
3.6

Product quality and safety
3.7

Fair trade and ethics
3.6(132 companies responded as of the end of March 2010)

United Nations Global Compact
http://www.unglobalcompact.org/
Hitachi Group Supply-Chain CSR Deployment Guidebook
http://www.hitachi.com/procurement/policy/__icsFiles/afieldfile/2010/08/30/
SC_CSR_E_2.pdf
Hitachi Guidelines for Procurement Activities
http://www.hitachi.com/procurement/policy/__icsFiles/afieldfile/2010/08/30/
guidelines.pdf

Surveying CSR Implementation

In fiscal 2009, we surveyed CSR implementation at 255

17

Hitachi Group
Corporate Sustainability
Report Digest 2010

Living Together
with Society

Procurement, the Supply Chain, andRespect for Human Rights

Living Together with Society 2

Providing Supportiveand Diverse Workplaces
At Hitachi, we believe that respecting and valuing the diversity of our employees createssynergy and adds new value.

1910
A Century of Service

Cultivating People since Our Inception

At a time when many children entered the workforce right after completing
elementary school, Hitachi, Ltd. set up the Apprenticeship Training School inside its
factory in April 1910, its founding year. The school provided general and technicalinstruction. Although many students joined other companies after graduating,
Hitachi founder Namihei Odaira said, “I’m satisfied if they contribute to Japaneseindustry.” The school later became the Hitachi Technical High School, which has
graduated numerous technicians as custodians of Hitachi’s tradition of monozukuri(designing, manufacturing, or repairing of products) craftsmanship, including
WorldSkills International gold medalists.

Hitachi
HitachiGroupGroup
Corporate
CorporateSustainability
Sustainability
ReportReportDigest
Digest2010
2010

LivingContribution
TogetherbywithsocialSociety
innovation

Providing
http://www.hitachi.com/csr/
Supportive andDiverse Workplaces

18

TOPICS

Offering Attractive Employment
for People with Mental Disabilities

Diversity Embodies Our Respect
for Individuality
The Diversity Development Project spearheads our drive
for workplaces that empower our diverse people to realize their potential. We inaugurated the Diversity Development Group Council in fiscal 2009 to complement
our efforts. Council members from 19 Hitachi Group
companies gathered
Number of Female Managers
quar terly during the(People)year to share suc320
303
300
cesses and discuss276
issues. We have con250
tinually held a diver200
sity forum, assisted in150
the creation of em100
73
ployee networks, and50
disseminated more
02000 2007 20082009 (FY)
information throughSource: Hitachi, Ltd.
our intranet.

Ritsuko Gomibuchi
Psychiatric Social Worker

Satoshi Fujiwara
Supervisor,
Employee Relations &Human Resources Dept.,
Hitachi, Ltd.

Hitachi, Ltd. began participating in the Ministry of Health, Labourand Welfare’s Model Project to Promote Employment of Persons
with Mental Disabilities†1 in May 2009. As part of its involvementin that project, Hitachi arranges seminars and trains personnel inhouse to help enhance workplaces for employees with mental
disabilities. Hitachi hired three such people in fiscal 2009. Project
leader Satoshi Fujiwara says, “We want to create bright new vistas
for people with disabilities, expand employment opportunities forthem throughout Hitachi, and share our expertise in this area withas many companies as possible.”

European Diversity Project

We launched the European Diversity Project in June 2009.
With gender diversity as the main focus, a tools package
which includes internal awareness-raising tools such as
training materials, Group-wide policies, and a comprehensive e-learning program has been developed. The
package is accessed and widely used by all Hitachi’s European employees. We perceive diversity not in isolation,
but closely linked with human rights, namely the rightto non-discrimination and equal opportunities. Diversity
will therefore remain a top priority for the Hitachi Group.

strive to offer more employment and responsibilities forpeople with disabilities.

Work-Life Balance
Physical and mental health is vital for balancing professional and personal life. Hitachi improved and expanded
its childcare and nursing care support systems while offering family leave and reduced working hour programs
to create more attractive workplace environments. We
also improve processes to prevent traditionally long
working hours, deploy initiatives to promote physicaland mental health, and provide training to enhance
workplace communications.

Employing People with Disabilities
The Hitachi Group employs around 3,000 people withdisabilities, and 180 work for four special subsidiaries.
Every year, we hold a job interview fair, in collaboration
with Public EmployEmployment Ratio ofment Security Offices, People with Disabilities
for disabled job seek(%)
ers. We also exchange (People)
2.0
2.11
2.06
information within and 1,300
2.01
outside the Group to
1,150
1.8*
1,106 1,091
help maintain ongoing
1,001
employment for these 1,000
people. Group compa850
1.5nies provide internships
in association with sch700
ools and local support
00organizations, educate
2007
2008
2009
(Year)
personnel about mental* Legally mandated employment ratio
Source: Hitachi, Ltd. (collected in June every year)
illnesses, and otherwise

FY 2007
Employees taking
childcare leave

FemaleMale

Employees taking
nursing care leave

FemaleMale

Employees using
reduced working
hour program

FY 2008

436

FY 2009

451

504

2

8

6

10

8

6

10

10

5

Female

349

381

287

Male

1

2

1

Source: Hitachi, Ltd.
Number of people who used system at least once during period in question†1 Hitachi, Ltd. is one of 10 companies participating in the Model Project to Promote Employmentof Persons with Mental Disabilities. This project strives to improve workplace understanding ofpeople with such disabilities and develop attractive career opportunities for them.

19

Hitachi Group
Corporate Sustainability
Report Digest 2010

Living Together
with Society

Providing Supportive andDiverse Workplaces

Hitachi’s Environmental Conservation

Environmental Management
toward a Sustainable Society
Our goal is to achieve a more sustainable society by promoting production that reduces
the environmental burden of products throughout their life cycle.

1942
A Century of Service

Pioneering Effort in Environmental Conservation

In 1942, when Hitachi’s Central Research Laboratory (HCRL) was established in Kokubunji
in Tokyo, Namihei Odaira, founder of Hitachi, Ltd., gave instructions not to cut down
good trees but build around them, in order to preserve the natural beauty of theMusashino area. This lush natural environment, which can still be found today near
the laboratory, continues to bring tranquility and refresh the hearts of researchers andvisitors alike; and is treasured by local residents who visit the laboratory grounds during
the open days held each year in spring and fall. Inheriting the spirit of our far-sighted
founder, we continue to pursue a policy of harmony with the environment in building
facilities and laboratories in various locations.

Hitachi Group
Corporate Sustainability
Report Digest 2010

Hitachi’s
Environmental
Conservation

Environmental Management
toward a Sustainable Society

20

Dr. Kumeo Baba, first general manager of HCRLHitachi’s Environmental Vision

Hitachi’s Environmental Vision

To achieve our Environmental Vision goals, we aim to
make all of our products environmentally conscious EcoProducts†1 through our technology.

The quest for a comfortable existence has led humankind to create a highly convenient society. Today’s society, however, requires a vast amount of energy, and thisis causing problems such as global warming, resource
depletion and environmental damage. We must work toprovide solutions to these issues if we are to assist society
in maintaining a comfortable existence into the future.
We are committed to the prevention of global warming, the conservation of resources, and the preservationof the ecosystem as the three pillars of our vision. Our
goal is to achieve a more sustainable society by promoting global production that reduces the environmental
burden of a product throughout its life cycle.

Goal & Performance Sales Ratio of Eco-Products
Fiscal 2010

Fiscal 2009

50%

53%

Hitachi Group product models registered as EcoProducts reached 8,387 during fiscal 2009, lifting the ratio
to 53 percent of all Group revenues. As this attained thefiscal 2010 goal of a 50 percent ratio, the 2010 goal was
raised to 55 percent.

Achieving Environmental Vision 2025

Amount of Contribution to CO2 Emission Reduction(Base: FY 2005)

Hitachi’s long-term plan Environmental Vision 2025, created in 2007, sets the goal of helping reduce annual CO2
emissions by 100 million tonnes by 2025 through Hitachi
products and services.
Seventy percent, or 70 million of those 100 million
tonnes, comes from electric power generation and otheraspects of the energy supply, while 30 percent, or 30
million tonnes, is associated with energy consumption,
including industry, transportation, commercial, and residential uses.
In fiscal 2009, to ensure the reliability of our calculations on reduced CO2 emissions, we introduced a standard calculation method. We also had a third party review
the method and the results obtained for nuclear, coalfired, thermal, hydraulic and wind power generation, as
well as for an energy-saving service using inverters and
10 products including servers.
Our contribution to CO2 emission reduction in fiscal
2009 was 11.36 million tonnes (estimate).

Amount of contribution to CO2 emission reductions(millions of tonnes/yr)
100 million tonnes/yr

100
80

63.0
60
40
20

35.0

11.36

14.0

2009*
2010
(estimate)

2015

2020

2025

(FY)

*CO2 emission coefficients were calculated using fiscal 2007 figures fromthe International Energy Agency’s (IEA) CO2 Emissions from Fuel Combustion
Highlights (2009 Edition).

†1 Eco-Products: Products that meet certain standards under the Assessment for DfE (Designfor Environment) system, which uses criteria such as material reduction and longevity toprovide a quantitative assessment of the environmental burden.

21

Hitachi Group
Corporate Sustainability
Report Digest 2010

Hitachi’s
Environmental
Conservation

Environmental Management
toward a Sustainable SocietyPrevention of Global Warming

we plan to reduce Group-wide heavy oil use to below 10
percent of the fiscal 2005 figure in 2012.
To save even more energy in Hitachi offices, sales
offices, data centers and other non-manufacturing operations, we have created management standards tomeasure energy use. We have also built a system for gathering electronic data on energy use by operational unit,
enabling us to analyze energy use and facility inspections, which are now revealing areas for improvement.
Outside Japan, despite production increases, CO2
emissions in fiscal 2009 were cut by 22,000 tonnes, a five
percent reduction per unit of production from 2003. In
countries such as China with rising CO2 emissions, we arepromoting energy savings by having experts analyze energy use at every plant and manufacturing center. Theseexperts are making energy reduction proposals. We arealso using energy-saving technologies developed inhouse to increase business with other companies.

The IEA’s World Energy Outlook 2009 listed fiscal 2007
world energy-related CO2 emissions at 28.8 billion tonnes,
and estimated that this would reach 52.2 billion tonnes
by 2050 if the current trend continues. The IEA has therefore called on governments to cut these emissions.
To meet our Environmental Vision goal—helping reduce annual CO2 emissions by 100 million tonnes by 2025
through Hitachi products and services—we are working to
cut greenhouse gases emitted at each of the three stages:
manufacturing, transporting, and using products. We arealso employing our technologies and knowhow to provide
customers with energy-saving services.
Reducing CO2 in Plants and Offices

In fiscal 2009, we invested 5.2 billion yen to save energy across our operations in Japan, reducing annual
CO2 emissions by 43,000 tonnes from fiscal 1990 levels.
We will introduce more energy-saving equipment into
Group operations and boost switching to natural gas inareas such as materials processing, where a great deal ofheavy fuel oil is used. Switching from heavy oil to natural
gas would cut CO2 emissions by around 30 percent, so

Goal & Performance CO2 Emissions
Fiscal 2010
In Japan: Total(from 1990)
Outside Japan: Per
unit of production(from 2003)

TOPICS 1

Technology Exchange Conference in China

Fiscal 2009-12% -21%-5%-5%Conservation of Resources

We are cooperating with China on energy saving and environmental protection projects, focusing particularly on the social
infrastructure development that the Chinese government isadvocating. In November 2009, Japan-China joint projects werelaunched in five areas: smart grids, new energies, rail systems, water
resources, and recycling. As part of these initiatives, in March 2010
we joined with the National Development and Reform Commission,
China’s economic policy-making body, to hold the Green Economy
and Technology Exchange Conference in Beijing to introduce
Hitachi’s cutting-edge technologies to China. We will continue tointroduce the latest environmental technologies and leading-edge
cases to China, collaborating with China on joint ventures, joint
research, and other projects.

To address the global problems of resource depletion andenvironmental pollution, we urgently need to develop
a material-cycle society that will lower natural resource
consumption and reduce the impact on the environment. In response, we are consuming fewer resources
during product manufacturing. We are also boosting resource recycling by cutting emissions during production
and converting waste into raw materials and energy, as
well as reusing end-of-life products.
Developing Technologies for Rare Metal Recovery

We will soon be recycling scarce or difficult-to-extract rare
metals. In particular, rare earths used in energy-saving air
conditioners, washing machine motors, and hybrid cars
are being recovered using acids and alkalines and othertechnologies with a heavy environmental burden. Additionally, we are developing technologies that will further
reduce or eliminate that burden and its associated costs,
by enabling more efficient separation and recovery. We
plan to have these recycling operations running by 2013,
recovering around 10 percent of the rare metals used annually by the Group.

Hitachi Group
Corporate Sustainability
Report Digest 2010

Hitachi’s
Environmental
Conservation

Environmental Management
toward a Sustainable Society

22

TOPICS 2

Ecosystem Assessment Guidelines
at Hitachi Chemical

Reducing Waste Emissions

To reduce the amount of both valuable and non-valuable wastes, we have been improving production andmanufacturing processes, recycling raw materials andchanging packaging specifications. In fiscal 2009, we
achieved a 33 percent reduction in waste emissions
from 2000 within the total-waste reduction group.†1
We recycle resources through methods such as reuse,material recycling, and thermal recycling (recovering andusing heat energy from incineration), while also reducing
the environmental burden.

The Corporate Ecosystem
Services Review (ESR) is a
structured methodology forunderstanding the impact
of companies on ecosystems, as well as corporate
dependence on ecosystems,
and identifying business risks
and opportunities. The World
Business Council for Sustainable Development designed
this evaluation tool in collaboration with the World
Resources Institute and the
Meridian Institute.
Ayako Kohno, Hitachi Chemical
Hitachi Chemical provides
a Japanese translation of the ESR on the Internet in order topromote the use of this method among Japanese companies. As
well, we are using the ESR methodology ourselves to deepen our
understanding of the impact of business activities on ecosystems.

Goal & Performance Waste Emissions
Fiscal 2010
Total (from 2000)

Fiscal 2009-25% -33%

The Corporate Ecosystem Services Review (ESR)
http://www.wbcsd.org/Plugins/DocSearch/details.asp?DocTypeId=25&ObjectId=Mjg5NjQ

Result from the total-waste reduction group

Preservation of Ecosystem
The UN Millennium Ecosystem Assessment showsthat the rapid changes that people have made to theearth’s ecosystem are reducing the benefits suppliedby this ecosystem.
To lighten the ecosystem burden imposed by ourown social and corporate activities, we are contributing
to the preservation of the ecosystem and biological diversity in the three areas shown below.

compounds (VOCs) that cause air pollution. Based on a
program from the Ministry of the Environment to reduce
VOC emissions, our own emission reduction plan covers
41 VOCs, replacing them with alternative substances andinstalling equipment to recover and neutralize VOCs. In
fiscal 2009, we reduced our VOC emissions in Japan to68 percent of the year 2000 level. Outside Japan, giventhat manufacturing is relocating there and production isrising, goals for these plants have been set using an index
of the ratio of emissions to VOC use. In fiscal 2009, we cut
this emission ratio†2 by 14 percent from the 2005 level.

Reducing VOC Emissions

We are cutting emissions of the volatile organic
Contribution through businessSupply products and services that
protect the ecosystem through air,water, and soil purification.

Water treatment system for ship ballast water(seawater used as weight to keep a shipbalanced) / advanced sewage processing system/ denitration catalyst for separating nitrogenoxides from boiler and power plant exhaust gases/ management system for chemicals contained
within products

Goal & Performance Reducing VOC Emissions
Fiscal 2010

Contribution throughenvironmental management
Gauge and reduce the ecosystemburden from corporate activities

Wastewater outflow reduction / reduced chemical
substance use / recognition of the biogenic natureof raw materials / greenhouse gas emission
reduction / material-cycle promotion

Fiscal 2009

In Japan: Total emissions(from 2000)-50% -68%

Outside Japan: Ratio ofemissions to VOC use(from 2005)-10% -14%

Nature protection activities
Contribute to ecosystem recovery
through afforestation, etc.

Afforestation by Hitachi employees / managementof more than 800,000 trees within Hitachi
grounds / support for endangered species
protection†1 Total-waste-reduction group: Group of business sites using a fixed amount of waste
as a reduction goal. The other group of business sites uses the amount of waste per unitof production as the reduction goal because of the particular characteristics of the waste
generated by those sites.
†2 Emission ratio = VOC emissions/total VOCs handled

23

Hitachi Group
Corporate Sustainability
Report Digest 2010

Hitachi’s
Environmental
Conservation

Environmental Management
toward a Sustainable Society

CSR Management at Hitachi
Following a roadmap to support a better, more affluent society for all humankind

1935
A Century of Service

Welcome Speech to New Employees

When addressing new employees, Hitachi founder Namihei Odaira would state, “Iwant you to contribute more to national (social) progress than profits.” His statement
remains integral to Hitachi’s corporate credo of “contributing to society throughthe development of superior, original technology and products,” a sentiment that isshared around the globe.

“I intend and wish to contribute to the development ofJapan’s machinery industry and to a prosperous destiny
for the nation.
All should know that working for the company is
not merely about making profits. I believe that you wellunderstand that this is the essence of Hitachi’s Founding
Spirit, which has been cultivated.”
Namihei Odaira’s address to new employees in 1935

24

Hitachi Group
Corporate Sustainability
Report 2010

CSR Management at
HitachiCorporate GovernanceCorporate GovernanceBy enhancing corporate governance, the Hitachi Group is promoting speedier,more efficient management and is meeting the expectations of stakeholders
as a business that merits the public’s trust

Strengthening GovernanceMonetary compensation is the basis of the compensation system. Beginning with compensation for fiscal
2008, the scheme for directors and executive officers wasrevised to eliminate retirement allowances. In fiscal 2009,
executives were compensated as follows:†1

We operate on the committee system to more effectively manage oversight by bringing in outside directors andto speed up decision making by giving executive officers
broader powers. We have also set up a Group-wide system of internal controls, strengthened governance andmanagement efficiency, and will continue to work hardto earn the trust of all stakeholders.
To reinforce the role of the Group headquarters, we havestrengthened guidelines on the environment, compliance,and risk management, and internal audits. In addition, we
have implemented Group-wide audits of our Group companies. We are striving to enhance corporate value throughclose communications with all stakeholders.

Director Compensation
Salaries and year-end allowances or performance-based
bonusesCategory
Recipients(number)

Governance Structure of Hitachi, Ltd.

Election

Board of Directors(12 members, including 5 from outside )Audit Committee(5 members, including
3 from outside)

Election

Directors(outside directors)

11
(5)

246
(87)

Executive officers

28

1,076

Total

39

1,322

* The number of directors indicated excludes the four directors who serve concurrently as executive
officers.
* Compensation to directors includes the monthly salary, from April 2009 to the time of retirement,of the one director who retired on the expiration of his term, effective at the close of the 140th
Ordinary General Meeting of Shareholders on June 23, 2009.
* Compensation to executive officers includes the monthly salary, from April 2009 to the time ofretirement, of the one executive officer who retired on the expiration of his term, effective June23, 2009.

General Meeting of Shareholders

Nominating Committee(4 members, including
3 from outside)

Total amount(millions of yen)Compensation Committee(4 members, including
3 from outside)

Internal Control
As a public company listed on the New York Stock Exchange, Hitachi, Ltd. is registered with the U.S. Securities
and Exchange Commission and is subject to the Sarbanes-Oxley Act.†2 A comparable internal control evaluation and reporting system (J-SOX†3) came into effect inJapan at the beginning of fiscal 2008. Accordingly, theHitachi Group as a whole and all listed Group companies
now evaluate internal control systems and report the results on a consolidated basis.
We are committed to full compliance with theseand other applicable laws and regulations. Beyond that,
we consider it an important social responsibility to reengineer our internal control systems, to improve thetransparency and credibility of our businesses, and tostrengthen our management structure by clarifying, examining, and visualizing our management and operational frameworks.

Supervision

Executive Officers: Timely execution of company business

Executive Compensation

Compensation for every director and executive officer is set
by the Compensation Committee based on the Japanese
corporate law governing companies with committees.
Compensation for directors and executive officers
consists of monthly salaries together with year-end allowances for directors and performance-based bonuses
for executive officers. While compensation for directors is
generally fixed, performance-based bonuses for executive
officers are set at around 30 percent of annual compensation. Bonuses are determined individually according tobusiness performance and the outcome of work carriedout under the officers’ management.

25

Hitachi Group
Corporate Sustainability
Report 2010

CSR Management at
HitachiCorporate GovernanceHitachi Internal Control Assessment Framework
Management
assessment report

Board of Directors

Hitachi, Ltd.
CEO and CFO*2
ReportFinancial
Services
AgencyReportMonitoring
reportAudit

Internal Control Committee
Monitoring
reportInternal Control Committee OfficeInternal Control Handbook

ReportAudit Committee

Internal Auditing
OfficeMonitoring

Certification, management
assessment report*1 SEC:
Securities andExchange Commission*2 CFO:
Chief Financial Officer

Hitachi Group HQs(Hitachi Group HQs and
In-House Companies of Hitachi, Ltd.)†3

As a conglomerate of many companies, we haveadopted a framework that assigns accountability at theGroup level, including responsibilities for the design andoperation of internal controls. Therefore, Hitachi Group
companies are required to revise, document, and evaluate the effectiveness of their operations in line withguidelines determined by specific levels of corporate
scale and business content. Management assessment ofeach company is collected at the Group level, and is reported to Hitachi, Ltd. along with certifications.

Hitachi Groupsubsidiaries

J-SOX: A framework for evaluating and reporting internal control over financial reporting under
the Japanese Financial Products Transaction Law. It came into effect with the promulgation of
the Financial Instruments and Exchange Law in June 2006 and has been applied since April
2008.

Group Management
In the Hitachi Group, we strive for a management approach that fosters synergy among companies by
nurturing connections while respecting each company’s
independent creativity. To maximize Group synergy andmake optimal use of Group management resources, weare currently developing whole Group management
policies through the Group Strategy Committee that wasestablished in April 2006.
Hitachi, Ltd. instituted an in-house company system
in October 2009 to encourage businesses to assume responsibility for swift management action and to become
more competitive by restructuring, particularly in the social innovation businesses. These six in-house companies(businesses) are Power Systems, Industrial & Social Infrastructure Systems, Urban Planning and Development
Systems, Information & Control Systems, Information &Telecommunication Systems, and Defense Systems.
†1†2

Independent auditors

SEC*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 theexecutive officers, appointed by the board of directors, execute the company’s business affairs
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.

26

Hitachi Group
Corporate Sustainability
Report 2010

CSR Management at
HitachiCorporate GovernanceCSR Promotion Activities
Objective view to strengthening CSR management

Striving to Be a Global Leader in CSR
In fiscal 2006, we established a three-year roadmap to
guide us in becoming a global leader in CSR. The following are the fiscal 2009 results of the implementation plansfor each item of the CSR Policy of the Hitachi Group. Implementation plans for fiscal 2010 are also shared below.

In fiscal 2010, we created a new Five-Year CSR Roadmap with the goal of becoming a truly global enterpriseby 2015. The new roadmap uses key performance indicators to guide our efforts in the effective implementationof that goal.

Structure of Hitachi Group CSR Promotion
President

SeniorExecutive
Committee
CSR
Promotion
Committee

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

Brand &
Communication Division
CSR Promotion Department(Secretariat)

In-house companies
Presidents
CSR promotion officers

Production
facilities

Affiliated companies
Presidents
CSR promotion officers

Affiliatedcompanies

Regional headquarters
outside Japan
Regional executives
CSR promotion officers

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

Hitachi, Ltd. and 900 consolidated subsidiaries,
and 157 companies that use the equity method

Fiscal 2009 Results and Fiscal 2010 Plans
Achievement
Level

CSR Policy of the HitachiGroup

Hitachi Group
Activities in Fiscal 2009

1. Commitment to corporatesocial responsibility• Implement CSR e-learning courses in
Asian countries• Implemented CSR e-learning courses bbb
in Singapore, Malaysia, Thailand, thePhilippines, Indonesia, India, andVietnam (average attendance rate was
80 percent)—• Increase the number of Group
companies using Hitachi Group CSR
Self-Assessment Tool globally• Twenty-four Group companies in Japan bbb
used our CSR Self-Assessment Tool in
fiscal 2009 (up from 22 in fiscal 2008)• Produced an English version that eightGroup companies outside Japan used(four each in North America and India)

p. 5

Results in Fiscal 200927

Page(s)Hitachi Group
Corporate Sustainability
Report 2010

Fiscal 2010 Goals / Plans• Increase number of companies worldwide
using the Hitachi Group CSR Self-Assessment
Tool• Strengthen risk management system

CSR Management at
HitachiCSR Promotion Activities

2. Contribution to society
through our business• Launched projects to assess businesses bb• Introduce materiality process*1 andfrom CSR perspective
incorporate it into corporate strategy,
business operations, and management
decision making

p. 5• Put a stop to serious accidents andfoster global QA (quality assurance)
leaders• Continued to implement process
improvement for business divisions,prioritized by the need for quality
improvement• Conducted reliability courses to educate quality assurance staff in China
and Thailand (basic course four times
and intermediate course once)• Strengthen Group network of Web
sites for general customer inquiries• In fiscal 2009, launched “Web Inquiry bb
Responsiveness Improvement Course,”
with 76 Group employees participating

p. 39

3. Disclosure of information and • Issue clear, concise Environmental
stakeholder engagement
Sustainability Report• Published Hitachi Group Environmental bbb
Sustainability Report 2009 (in Japaneseand English), focusing on environmental reporting• Began using third-party reviews ofenvironmental performance data infiscal 2009

1–iii

• Conduct dialogues with stakeholders
in all overseas regions• Engaged in dialogue with stakeholders, particularly with EU policymakers

p. 5• Improve transparency and disclose
more information on CSR Web site

• Disclosed details of progress on causes bb
and responses to an issue that arose
in fiscal 2009: misleading representations of refrigerators• Improved disclosure of diversity
initiatives

pp. 30–31• Develop a global education programon human rights• Implemented e-learning courses onhuman rights for all 260,000 Group
employees in Japan (more than
207,000 employees, or around 80
percent, participated)

bb

p. 17

• Implement e-learning complianceprograms in Asian countries• Implemented compliance e-learning
courses in Malaysia, Thailand, thePhilippines, and Indonesia (averageattendance rate was 80 percent)bbb—• Promote and expand integrated EMS
certification• Certification acquired: Industrial &bbb
Social Infrastructure Systems Company
of Hitachi, Ltd.; Hitachi Industrial
Equipment Systems Co., Ltd.; HitachiLife, Ltd.; Hitachi Intermedix Co., Ltd.;and Hitachi Consumer Electronics Co.,
Ltd. (Five Group companies certified,compared with a target of three.)pp. 79–80• Increase Super Eco-Product ratio to
22 percent• Register eight more Super Eco-Factories and Offices (for a total of 24)• Achieved Super Eco-Product ratio ofbbb
22 percent• Registered seven more Super EcoFactories and Offices (accumulated
number of sites reached to 32, exceeding fiscal 2010 target of 30)

p. 85• Continue implementing programs on
global environmental themes• Continued tree planting and otherprograms in China, Thailand, the Philippines, and Japanbbb

pp. 49–51• Continue implementing programs for
emerging countries and markets tomeet their social needs• Undertook programs to support
training for young South African andIndian engineers• Implemented educational support
programs for children in Chinabbb

pp. 48–49• Expand educational support programs(further improve visiting lectures on
Universal Design)• Held Universal Design (UD) classes at bbb
18 schools• Strengthened and improved programsfor volunteers to raise the quality of
their activities

4. Corporate ethics and humanrights5. Environmental conservation

6. Corporate citizenshipactivities

28

bbb

bb

pp. 37–39• Implement CSR-oriented business assessments
and reflect the results in business strategy,
operations, and/or management issues• Continue to implement process improvement
for business divisions prioritized by the need for
quality improvement and to reinforce OCHIBOHIROI*2 activities• Increase sales ratio of Eco-Products• Help reduce CO2 emissions through Hitachi
products and services• Set up global, Group-wide Internet inquiry
response network• Expand access to and enhance “Web Inquiry
Responsiveness Improvement Course”• Engage in global stakeholder dialogues• Strengthen internal dissemination of CSR
information

p. 103

p. 19
pp. 58–61• Expand global human rights initiatives• Continue to hold Hitachi Group Corporate Ethics
Month every October• Raise compliance awareness relating to operations outside Japan• Help reduce CO2 emissions through Hitachi
products and services• Target amount for the year: 14 million tonnes• Increase Super Eco-Product ratio to 30 percent

p. 91• Deploy programs where employees contributeto society, focusing on biodiversity• Implement social contribution programs inemerging countries and markets to meet theirsocial needs• Undertake social contribution programs covering the environment, energy, and other areas—

Hitachi Group
Corporate Sustainability
Report 2010

CSR Management at
HitachiCSR Promotion Activities• Held Diversity Development Groupbbb
Committee meetings, sharing
information on best practices andGroup examples (19 Group companies
participated in four gatherings infiscal 2009)• Continued to participate in Work-Life
Balance Promotion Project of the
Ministry of Health, Labour and Welfare

p. 19• Develop a training curriculum for
confirming and learning throughexperience the values and conduct
shared by all Hitachi employees• Completed Hitachi Basis, a shared
basic education program, anddeployed it throughout the Group• Produced 80 different videos to train
and re-educate employees in the
Hitachi Founding Spirit and Corporate
Credo• Established Web portal to enhancesharing and access to educational
programs among Group company
employees and education officers

bbb

pp. 56–57

8. Responsible partnership with • Revise the Guidelines for Procurebusiness partners
ment Activities and publish HitachiGroup Supply-Chain CSR Deployment
Guidebook and implement it amongsuppliers• Completed revisions of Hitachi
Guidelines for Procurement Activities
and Hitachi Group Supply-Chain CSR
Deployment Guidebook and sharedthem with Group companies

bb

p. 17

• Expand the scope of monitoring of
suppliers• Surveyed 255 companies to monitor
suppliers (compared with 100 in
fiscal 2008), with 132 companies
responding

bb

p. 17

7. Working environment• Promote diversity awareness in the
Hitachi Group (encourage informationexchange and development of shared
tools through the Diversity Development Group Committee)• Promote more female employees as executives
and managers• Encourage employment of more people withdisabilities within the Hitachi Group

p. 59• Rebuild supply chain from global perspective• Support voluntary environmental management initiatives by suppliers through New
MMM Club*3

bbb Achieved
bb Partially achieved*1 The materiality process includes activities where stakeholders participate to clarify important
issues influencing society and management.
*2 OCHIBO HIROI (gleaning) is Hitachi’s program for adopting the customer’s perspective whenreflecting on past incidents and working to prevent recurrences.
*3 MMM Club is an organization run primarily by suppliers who have acquired environmental
certification through Hitachi’s activities to support suppliers’ environmental safety programs.
The three Ms come from the first letter of mottainai (regrettable waste), now an international
environmental term.

29

Hitachi Group
Corporate Sustainability
Report 2010

CSR Management at
HitachiCSR Promotion Activities

Compliance and Risk Management
Raising employee awareness and understanding to strengthen compliancePreventing the Recurrence ofMisleading Representation

product features and customer benefits. As a result, catalogs published in and after fall 2009 have offered only
three key recommendations, presenting these on the
cover and opening page.

In April 2009, Hitachi Appliances, Inc. was found to havemisrepresented facts in its Refrigerator General Catalog,
in newspaper advertisements and posters, as well as on
its Web site. As a result, Hitachi Appliances received acease and desist order from the Japan Fair Trade Commission under the Act against Unjustifiable Premiums
and Misleading Representations. The misrepresentations
included statements that recycled resin was used in theflexible vacuum insulation panels for all nine of the company’s main refrigerator models that went on sale after
September 2008. In fact, the recycled resin was only usedin some of these models.
In addition, Hitachi Appliances returned the 2008
Energy Conservation Grand Prize (ECCJ Chairman’s Prize)that was received for its nine refrigerator products on
February 10, 2009.
To prevent misrepresentations and improve transparency in product information, Hitachi Appliances established product-specific working teams made up of
persons in charge of design and development, productplanning and advertising. These teams are responsible foradding environmental information to existing specifications and for ensuring that advertising is fully in line withspecification descriptions.
External Document Management Offices have beencreated in all Hitachi Appliances production facilities, anda Documents and Expression Auditing Office was set up
within the head office. These enforcement offices examine product representations and monitor their operation.
Home appliance catalogs were comprehensively
reviewed, not only checking specifications and catalog
representations but also checking, for example, that expressions could not be misunderstood, that the basis for
figures had been confirmed, that notes were sized andplaced for visibility, and that font colors were easy to see.
Consideration went so far as including whether or not expressions were customer friendly and easily understood.
It was decided that the traditional table format listing allfunctions made it difficult for customers to understand

Revision Point 1
Catalog cover provides key
product information tobetter inform the customer

Refrigerator General Catalog(Fall 2009)
Some content has been changedin the current catalog

In addition to sustaining the above activities, we will
work to produce easily understood catalogs that cater to alltypes of customers, using the principle of Universal Design
to redesign language and boost visibility and readability.
We have been examining misrepresentations andsimilar cases across the Hitachi Group, identifying common issues and taking steps to prevent recurrences ofsimilar mistakes and/or improve transparency.
Hitachi Group companies have clarified their provisions for handling product environmental information,
instituted employee education based on these provisions, and conducted internal audits to enforce proper
implementation of the provisions.
An advisory group on product environmental information and expression has now been established withthe cooperation of non-Hitachi experts. The group regularly checks whether the product environmental information disclosed by Group companies is appropriate andprovides guidance. In fiscal 2009, the group engaged inthree such checking exercises.
In December 2009, Hitachi Appliances’ Tochigi Works,

30

Hitachi Group
Corporate Sustainability
Report 2010

CSR Management at
HitachiCompliance and Risk Management

Before revision

Continuing Activities with a Consumer Perspective

Rice Cooker Catalog(June 2009)

Soak

Boil

External Advisors, Advisory Group on
Product Environmental Information and Expression
Yukiko Furuya, Board Member, Nippon Association of Consumer Specialists
Hideto Kawakita, CEO, International Institute for Human, Organization andthe EarthSteam

We appraise the Group-wide approach to preventing
a recurrence of the recent product misrepresentation
incident, as well as efforts to design catalog language—
not limited to environmental information—more easily
understood by consumers.
For consumers, product descriptions provide basic
information for their buying choices. We look forward to
the Hitachi Group making further progress in changing
employee mindsets and pursuing, as a management
mechanism, sustained and effective action that incorporates a consumer perspective. This should include
disclosing information not only through catalogs but also
various other media, and contributing to environmentalload reduction in partnership with consumers.

Color-blind
simulation

After revision
Rice Cooker Catalog(October 2009)

Soak

Boil

Steam

Color-blind
simulation

Revision Point 2
Color use was improved to bring Universal Design to catalogs

which manufactures products such as refrigerators andair conditioners, was opened to the media. An exchangeof views was also held with consumer groups and NGOs,
explaining efforts to date and gathering valuable input
for further action.

Violations on Bidding for Public Contracts and Initiatives for Prevention
Action (in Japan)

PeriodPunishment

Steps for Prevention

Bidding on contract for electrical instruments andconstruction of mechanical facilities for the Kohoku
Water Supply Bureau’s new Tamari waterworks

March 1999

Interference with competitive bidding
Court ruling: Sept. 2002
Business suspension order: Oct. 2002

Established Compliance Division / carry out audits and guidance on
business activities / thorough sales education / improved work process/ established advisory committee of outside members for oversight

Bidding on special pump facility construction forTokyo Bureau of Sewerage

April 1999–July 2003

Violation of Antimonopoly Law
Order for payment of fine: Aug. 2008
Business suspension order: Nov. 2008

Established a compliance division within the Social Solutions Business
Division to strengthen training and guidance

Bidding on construction of tunnel ventilationequipment on the Shinjuku route of the Metropolitan
Expressway, Tokyo

2004

Violation of Antimonopoly Law
Order for payment of fine: Sept. 2006
Business suspension order: Feb. 2007

Expanded use of notebooks for recording compliance data,*
strengthened training and audits

Bidding on a City of Sapporo contract for electricalequipment construction related to a sewage disposal
facility

April 2003–Dec. 2005

Violation of Antimonopoly Law
Order for payment of fineCease and desist order: Oct. 2008
Business suspension order: March 2009

Interviews conducted by executives of all sales employees involved/ request for signed pledges / additional expansion of training andaudits* In these notebooks employees keep a record by themselves that they avoided situations that would have been illegal or that they suspected may have been illegal.

31

Hitachi Group
Corporate Sustainability
Report 2010

CSR Management at
HitachiCompliance and Risk Management

Preventing Recurrences of Antimonopoly
Law Violations(1) Precautionary measures and prompt security responses
Hitachi clearly classifies information assets to be protected
and takes safeguarding measures based on vulnerability andrisk analysis. We also have an emergency manual for security
breaches, based on the assumption that these are inevitable,
not just possible.
(2) Promotion of stronger ethical and security awarenessamong data users
Hitachi has prepared a curriculum tailored to various personnel
levels—staff, managers, etc.—and is working to raise the prevailing sense of ethics and security awareness through Groupwide education using e-learning. We are also working on theuse of audits to identify and address problems early on.

We act in harmony with our basic principles of “conduct
in accord with the rule of law and ethical corporate integrity” and “fair and orderly competition.”
Regrettably, criminal penalties were imposed on employees who engaged in bid rigging on a government
contract in September 2002, and administrative dispositions were issued against Hitachi, Ltd. in September 2006,
and in August and October 2008 for violating the Antimonopoly Law.
We reflected deeply on these cases, having senior executives communicate with employees about them andthe executive in charge interviewing all the sales representatives, as part of many steps to strengthen compliance awareness.
In June and July 2009, we responded to the revisionof the Antimonopoly Law by educating all sales division
heads about this legislation, and required them to convey
those messages throughout their divisions. In January
2010, we disseminated executive messages and updated
our Antimonopoly Law Handbook, distributing around
55,000 copies, including to Group companies. We willcontinue to improve compliance awareness among all
employees by strengthening and being more thoroughwith audits and training.

Protecting Personal Information

We established a personal information protection management system based on our Personal Information
Protection Policy. With this system, through e-learning
courses for all employees and through periodic audits,
we ensure the protection and safe handling of personal
information.
In March 2009, we renewed Privacy Mark†1 certifications
earned in March 2007. As of March 2010, 71 Hitachi Group
companies had received Privacy Mark certifications.
Odaira Memorial Tokyo Hitachi Hospital earned thePrivacy Mark certification in July 2007, renewing it in July
2009. Hitachi Yokohama Hospital and Ibaraki HospitalCenter were certified in June and July 2009, and they aretaking measures for the protection and handling of thepersonal information of patients and other individuals.

Compliance Reporting System
To prevent illegal or unethical behavior, to promptly address infractions, and to enhance the ability to
self-regulate, we instituted a company-wide compliancereporting system. Employees can now report directly tothe division responsible at Hitachi (Compliance Division)or to an outside attorney. This system can be used not only
by our employees but also by employees of Group companies, former employees, suppliers, and temporary staff.
Another system—Channel to the Board of Directors—has
been introduced to allow employees to report problems
anonymously straight to Hitachi’s board of directors.

Personal Information Protection Policy
http://www.hitachi.com/privacy-e/index.html

Privacy Mark

Report Flow
1. Reporting
Individuals who
submit reports

2. Investigation initiation notice

Information Security Initiatives
Compliance Divisionor outside attorney

The rapid spread of digital information and computer
networks has made it crucial for businesses to strengthen
information security to maintain public trust. We are constantly working to prevent security breaches by applying
the Three Principles for Preventing Leakage of Confidential Information. Using this system to minimize damage
in the event of a breach, we promptly contact customers,
report to the government agency responsible, investigate
the cause, and take steps to prevent a reoccurrence.

3. Feedback on investigation findings

Protecting Personal Information andInformation Security
The Hitachi Group emphasizes two points in policies toprotect personal information and information security:32

Hitachi Group
Corporate Sustainability
Report 2010

CSR Management at
HitachiCompliance and Risk Management

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

Raise user literacy• Educate managers and staff• Enforce rigorous use of checklists

Put in place preventive measures• Apply IT to leak prevention• Apply rigorous managerial measures

Information
assetsto be protected

Establish information security system• Put in place managerial framework (appointment of officer in charge of information security, etc.)• Establish system for reporting breaches

Other measures are taken to prevent unauthorized information disclosure throughout the Group. These measures include: Hibun encryption software; security PCs
that do not store data; document access control and Katsubun data handling software; and filtering systems forunauthorized or malicious e-mail and/or Web sites.
In line with the Global Information Security Administration Standards, Group companies outside Japan are
also making every effort to strengthen information security. Details regarding information security are provided in
the Information Security Report.

This means screening the destination, end-use, and
end-user of all goods and technologies intended for export and promoting all legal compliance. In addition, weare promoting Group-wide export controls by providing
guidance to all Hitachi Group companies on rules anda framework for export control, as well as supporting
education and compliance training to ensure that every
Hitachi employee and business follows the same export
control policies.
In fiscal 2009, we provided a basic e-learning course
in response to the introduction of border controls associated with the revision of the Foreign Exchange andForeign Trade Control Law. We also continue to holdworkshops for export control practitioners in China, andhave started a basic Chinese-language e-learning courseon these controls.

Three Principles for Preventing Leakage ofConfidential Information
Rule 1.
In principle, confidential information cannot be taken from theworkplace.
Rule 2.
Permission must be obtained from an information assets administrator when employees are required to take confidential information from the workplace for business.
Rule 3.
Necessary and appropriate measures to prevent information leaks
are mandatory for confidential information that needs to be takenfrom the workplace for business.

Respect for Intellectual Property
Our basic policy is to respect intellectual property rights(IPR). We respect the IPR of other companies, just as we
expect them to respect ours. To be certain of honoringother companies’ IPR, we work hard to avoid patent infringements during product development, stipulatingin Group regulations that preliminary surveys must be
carried out to determine the coverage of other companies’ patents. Before using another company’s intellectual
property, we negotiate and obtain a license. For our own
intellectual property, we provide licenses to businesses
wishing to make use of these assets, operating on theprinciple of compensated sharing. If another business isfound to have violated our IPR, we encourage that business to acquire the necessary licensing, and we will takelegal action, if necessary. The Hitachi Group periodicallyholds intellectual property conferences and shares information about the Group’s intellectual property policy andintellectual assets.

Notes:
1. Confidential information includes all trade information for which accessis restricted to internal areas and relevant third parties.
2. These rules also apply to confidential information taken from customer
business sites.

Export Control
For basic export control, we use the Hitachi Standardsof Corporate Conduct, which states that we “shall help
maintain international peace and security through compliance with trade laws and regulations.” We adopted
rules for controlling security exports based on this policy
in 1987, and we continue to strive for the strictest possible export controls.

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We are also taking proactive steps to stamp out counterfeit goods around the world, including those from China and other parts of East Asia, the Middle East, and Africa. We work with local authorities to protect the Hitachibrand by uncovering infringements of trademarks, cybersquatting, as well as other intellectual assets. Throughthese measures, we earn the confidence of markets,
consumers, and government agencies, maintain order inmarkets where our products circulate, and protect consumer trust in the Hitachi brand.
We make considerable ongoing effort to increaseawareness of the importance of respecting intellectual
property. We provide regular training programs on thesubject by career stage (e.g., new and midcareer employees and executives). External initiatives include dispatching employees to teach university classes and industry
organization seminars on intellectual property issues.

Table Top Exercise to Prepare for Large-Scale Disaster

In June 2010, Hitachi Works held a table top exercise basedon a large earthquake. The goals of this exercise were toswiftly restore generator manufacturing and maintenanceand other social infrastructure operations and to contribute to the recovery of the social infrastructure after major
damage. This was their second such exercise since 2001
and it was more realistic, as it took into account climatechanges over the years. The roughly 50 employees taking part provided information, requested assistance, andtook other response measures. They learned through thisemergency simulation to make decisions calmly and toact quickly.
We have held disaster simulation exercises annually
since 1998—so far at 17 sites throughout Japan. In addition, we check disaster response preparedness withmonthly drills that use a satellite communications system.

Business Continuity Plans (BCPs†2)
To guard against risks, and being deeply committed tothe social infrastructure, we are enhancing our BCPs tominimize the impact on society of any interruption tobusiness operations.
Novel Strain of Influenza Action Plan and BCPs

Since December 2006, the Hitachi Group has disseminated the Guidelines for Formulation of BCPs to all Group
companies to mitigate risks such as major natural disasters. In April 2008, as a precaution against a novel strain of
influenza that gave rise to fears of a pandemic disease, we
set up a special organization called the Risk Management
Headquarters, headed by the president. In the event ofa pandemic outbreak, the Risk Management Headquarters will take the lead in securing the safety of all HitachiGroup employees and their families. Every effort will bemade to ensure that operations essential for maintaining
social functions, such as medical services, public security,and lifelines, are continued without interruption.
As part of these preparations, we formulated the
Guidelines for Pandemic Influenza Preparedness in June2009 and distributed them to all Group companies. These
guidelines include specific criteria for action in the eventof a pandemic as well as pilot BCPs covering the maintenance of power plants, financial services, and elevators toensure the continuity of essential services.
Based on the Guidelines for Formulation of BCPs and the
Guidelines for Pandemic Influenza Preparedness, all HitachiGroup companies are formulating BCPs for their operations
so that they are fully prepared for emergencies.

The disaster simulation exercise

Providing Information through Our Intranet

The Hitachi Group intranet has included a risk response
page since April 1997. This Web page features informationfrom wire services and Japan’s Ministry of Foreign Affairs
as well as problems that Hitachi Group employees haveexperienced. If emergencies arise, this page presents responses and alerts based on top management policies

Risk response page on intranet

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and disseminates information on damage.
This Web page also adds or updates around 80 news
items every day, and the average access count is about
400,000 every month. The number of monthly pageviews exceeded one million in 2009, when the H1N1
novel influenza spread worldwide, underscoring the essential role that the intranet risk response page plays in
our risk response activities.
†1†2

Privacy Mark: Certification awarded by the Japan Information Processing Development
Corporation to companies and organizations to recognize effective personal information
management
Business Continuity Plan (BCP): A plan for ensuring the continuation of core operations andfor promptly restoring operations in the event of a disaster or accident

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Living Together with Society
We help customers, suppliers, employees, and local communities pursue social prosperity
through our products and activities

1953
A Century of Service

Hitachi Henjin-kai

Dr. Kumeo Baba, one of the founding members of Hitachi, Ltd., was devoted todeveloping highly skilled engineers. He established the predecessor to the current
Henjin-kai in commemoration of reaching a target of 30 doctoral degree holders.
In the early days, the association was called Henjin-kai using the kanji (Chinesecharacters) that mean “eccentric person,” based on Dr. Baba’s statement that, “truly
advanced discoveries can be expected from eccentrics who have escaped from thenorm. Don’t be ordinary or even talented—be eccentric.” Later on the association
changed the characters to encompass the idea of returning to the pure humanstate of love and benevolence. Today, the association has over 2,000 members
including former employees active in their respective fields, and many in mentoring
their successors.

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Improving Monozukuri and ServiceImproving Monozukuri and Service
Protecting our tradition of monozukuri craftsmanship while improving product andservice quality worldwide

Ensuring Product and Service Quality

to continually improve the quality of planning, design,
manufacturing and other processes. To ensure ongoing
improvement while implementing the PDCA (plan-docheck-act) cycle, we use the internally developed Hitachi
Evaluation System for Quality Management.
This system quantifies the extent to which a project
follows procedures and whether there are process issues.
Staff can address problems by referring to a database of examples of advanced responses at other divisions. In fiscal
2009, this system was used at 45 divisions of Hitachi, Ltd.
and 21 Group companies. Teams from the Corporate Quality Assurance Division regularly visit divisions requiring considerable improvement to assess work processes, focusing
on improvement.

With our tradition of monozukuri craftsmanship thatplaces top priority on quality and our motto of “providing
customers with the highest quality products and services,” we conduct thorough quality assurance activities ineverything from product planning and delivery throughafter-sales service.
As part of our painstaking work to ensure productsafety and compliance, and to cultivate human resources, we recently began focusing on raising the quality of
products and services outside Japan, with a particularfocus in China and throughout Asia.
Quality Assurance Flow Chart
Product Manufacturing Process

Quality Assurance Activities

Hitachi Evaluation System for Quality Management

Market trends

Product planning

Design review

DesignPrototype evaluation/approval

Purchased goods

Management of purchased goods

Manufacturing

In-line quality control (QC)*

Inspection

Improving inspection techniques

Shipment/Delivery
Customers

Division

Feedback to each activity

Customers’ needs

Product development projectWork process
Plan Specifications Design Procurement Manufacture

Collecting field data
and after-sales services

Technologies• Quality reliability
committee• Product safety• Observance of technicalregulations• Assessment of quality
management...

Product

Implementation(Compliance with rules)

Evaluation(Based on ISO 9001)

Improvement

Application of best practices
to other production facilities

Activities Supporting Quality Assurance
Human resources• Penetration of OCHIBOHIROI spirit• Improvement oftechnicians’ ethicalawareness• Education on quality
and reliability• Improvement of qualityfirst awareness...

Framework(Work rules)

Organization & control• Control of defective
product accidents• Quality-first control
system• OCHIBO HIROI (gleaning)• Product quality
improvement...

Hitachi evaluation
system for quality
management system

Accumulation of best practices

Best practices

Training to Boost Quality and Reliability

We develop training courses for all technical and skill
levels at divisions engaged in design and quality assurance. The courses include “Reliability: Fundamentals andApplications,” “Product Safety,” and “Engineering Ethics.”
The “Engineering Ethics” course, for example, introduces
managers to the views of experts and presents case studies, with participants discussing workplace issues while
recognizing the importance of individual commitment to* In-line QC: Review and verification for identifying potential defects at the development andprototype stages of the product life cycle.

High-Quality Monozukuri throughImproved Work Processes

To provide high-quality products and services, it is vital

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notify the public through newspaper advertisements,press releases, our Web site, and/or other means and thenrepair or replace the affected products. Our Web site isused to provide detailed product safety information.

ethical thinking, leadership and action.
More than 50,000 employees have taken the “Introduction to Engineering Ethics” e-learning course since its
2004 debut. In fiscal 2009, we augmented general management training with a course that reaffirms the attitudeof a Hitachi engineer and solidifies monozukuri.
Hitachi Works, located in Hitachi City, Ibaraki Prefecture, Japan, maintains a quality assurance training center
to boost production, inspection, and maintenance skills.
Other locations and manufacturing sites offer their own
specialized technical courses.

Strengthening Quality Assurance (QA) Systems
in China and throughout Asia

China and other Asian nations account for much of ouroffshore production. We are therefore reinforcing systems
and training to improve quality there. One example is the
Shanghai Product Quality Assurance Center. It hosts theannual Conference for QA Managers at Hitachi Group

Handling Product Accidents

Safety is our top priority. When products malfunction, we
swiftly resolve the problem by drawing on division assets
and by coordinating with other business units. In especially serious cases, we evaluate the scope of the damage,carefully investigate the cause, submit a status report totop management, and take fast remedial action. At thesame time, we promptly comply with legal requirements
to report to government agencies, and we then publish
information on the incident on our Web site to inform thepublic in a timely manner.
When we respond to possible product accidents, we“Basic Reliability Course” in Thailand

Response Flow in the Event of Product Malfunction
Obtaining information

Customer liaison

Fire department, police department

Company officers
Consumer
Affairs Agency

Confirming
accident status
Product recall

Disposition and reporting

Flow of information

ReportOnsiteinvestigation
Product
investigation

Investigation ofdamage scope

Decision concerning
serious product accident

Serious productaccident

Investigative committee on
serious product accidents
Investigation of
cause

Customer

Quality Assurance Division

Accident
occursNewspapers
Web site
Notification

Sharing of information

Other Key Quality Assurance Programs
Overview
OCHIBO HIROIThis program name means “gleaning” in English, and focuses—from the customer’s perspective—on ways to prevent product accidents from recurring. Quality
assurance executives and officials hold large conferences to identify the motivational factors in major accidents as well as technical causes of those accidents, andthen they take preventive measures. We use their findings to enhance product quality, improve safety and ensure reliability.

Product Safety Initiatives

To deliver safe products and services, we combine expertise and technologies from such diverse areas as planning, research, design, manufacturing, quality assurance,and maintenance. The safety of life, body, and property are the top priorities in product development. Therefore, we verify design safety with divisions and researchlaboratories by collaborating on risk assessments.

Technical Law Compliance Activities

We take the initiative to ensure compliance with product liability, environmental, and other technical laws related to monozukuri. We distribute information on
product regulations with amendment trends and enforcement dates in and outside Japan. We are also building a compliance management system for production
plants. This approach allows us to focus on clarifying product-specific laws, to refine monozukuri compliance processes to satisfy ISO 9001 requirements, and to raiseoverall compliance awareness.
In fiscal 2009, we conducted self-assessments under new compliance guidelines based on 2008 edition of ISO 9001 standards.

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sentatives from Group companies.
Going forward, we will collaborate with Group companies to respond more quickly and effectively to customer inquiries, using this Web site as an important pointof contact.

Companies to increase quality awareness and to share
information. There were 40 key QA leaders from 29 Group
companies at the January 2010 gathering.
We launched the “Basic Reliability Course” in fiscal 2008
for all divisional engineers with less than five years of service to raise quality awareness and improve their technical skills. In fiscal 2009, 53 people from 24 Chinese Group
companies participated in classes in Shanghai, Beijing,and Guangzhou; 11 section chiefs from 7 other Group
companies took the “Intermediate Reliability Course” inShanghai. We began offering the “Basic Reliability Course”
in Thailand in fiscal 2009, with 17 people participatingfrom 10 local Group companies.

CS Activities of the Urban Planning andDevelopment Systems Group

Ever-taller buildings and barrier-free requirements aresome of the challenges of designing and building elevators and escalators. So, while we develop the technologies needed to maintain safety, we also make technicalimprovements—based on user feedback—to ensurecomplete comfort. Our focus is on three items: drive control systems that suppress vibration and shaking; brakes
that operate automatically during power outages andearthquakes; and evacuation instructions.
Hitachi Building Systems Co., Ltd. provides maintenance services through 350 sites around Japan. Our
speedy 24-hour, year-round response uses state-of-theart remote monitoring and diagnostic systems to prevent
accidents and failures.
The speed, safety and carrying capacity of elevators are becoming more important, amid a global rush
to construct taller skyscrapers. To address the technical

Building Customer Feedback into
Our Products
Using the Customer Satisfaction (CS) Management Guidelines, one of the pillars of Hitachi’s business management,
we continue to improve CS with the goal of “creating innovation through collaboration with customers.” We use
CS surveys tailored to each business operation. In addition, we analyze customer opinions submitted to the
Hitachi Customer Answer Center.
Customer Satisfaction Management Guidelines• Our customers determine the value of products and services• Information from our customers is the source of improvement• Offer prices and quality that are competitive• Respond rapidly to keep our promises to our customers• Adopt systems that prevent accidents and minimize their impact
Formulated in 1994

Web Site Customer Support

Our Web site provides comprehensive customer support. It enables us to process customer inquiries, opinions, requests, and complaints in collaboration with thecustomer support units of Group companies to improve
our products and services. We also use educational andother initiatives to speed up and improve our responseto these inquiries.
In fiscal 2009, we set up the “Web Inquiry Responsiveness Improvement Course,” which highlighted casestudies and rules for handling inquiries for 76 CS repre-

Color LCD screen provides passengers with information.
Left: Video display
Right: Earthquake notice“Earthquake! For safety, the elevator has stopped.”

Breakdown of Inquiries Received
from Hitachi Web Site Customer Support
Complaints
Product inquiries
from corporations
33%

Product inquiries Inquiries concerningfrom consumers corporate activities*
29%

24%

10%

Opinions and requests
3%
Other
1%
New elevator research tower at the Mito Building Systems Division of Hitachi’s
Urban Planning and Development Systems Company

January through December 2009
*Managerial policy, television commercials, requests for donations and support, Web site, etc.

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Hitachi Group
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Improving Monozukuri and Servicechallenges and test the safety and effects on passengers,
in April 2010 Hitachi, Ltd. erected a 213-meter elevator
research tower at the Mito Building Systems Division of
the Urban Planning and Development Systems Company in Hitachinaka, Ibaraki Prefecture, Japan. As a result, we are pursuing better and more reliable consumer
safety and comfort.

CS Activities of the Home Appliances Division

To ensure customer satisfaction, the Hitachi Customer
Answer Center and a Web site handle customer inquiries
and complaints about LCD TVs, washing machines, andother appliances. Hitachi Appliances, Inc. developed asystem to reflect customer feedback in new products andservices. The center’s advisors respond swiftly to morethan 600,000 phone calls and e-mails every year. Hitachi
Appliances maintains a database of all customer communications on product purchases and repairs, questions,and complaints, so that this information can be used
when needed.
Customer feedback has driven such improvements as
DVD-based instruction manuals for washing machines or
refrigerators and remote controllers with relocated buttons to simplify air conditioner operations.

CS Activities of the Information andTelecommunications Systems GroupThe IT Systems Group harnesses the uVALUE concept†1 forcollaborative creation with customers to help them withbusiness innovation. Collaborative creation reflects thecustomers’ perspectives, and includes annual surveys togauge satisfaction with Hitachi’s products and services.
Another goal of the surveys is to use customer opinions,
including expectations of Hitachi, to improve overall operations. We assess and respond to the needs and expectations of our customers to ensure that we are their partnerof choice for collaboration to create value. Since fiscal 2007,
many respondents have agreed to donate the compensation they would have received for participating in our surveys to Good Earth Japan, a non-profit organization.†2

Universal Design
The Hitachi Group Approach to Universal Design

Our operations touch on many aspects of society anddaily living, and we promote Universal Design (UD) by
improving the quality and ease of use, accessibility, andlife span of our products.
Quality of use means focusing on the traits that makepeople feel that the product is easy and enjoyable touse. Accessibility refers to the range of people who canuse a product or service. Life span covers all the stagesof the value chain from before the product is purchased
through to disposal.
We are a founding member of the International Association for Universal Design,†3 demonstrating our commitment to creating a society that improves quality of life
where everyone can live with peace of mind.

Overview of the Information and Telecommunications Systems
Group’s Customer-Oriented Activities

Optimized,
customer-oriented activities
Satisfaction
with Hitachi

Measuring customer
satisfaction relative totheir expectations

Expectationsfor Hitachi

Requests and demands

Reflected in uVALUE-based
operations

Product Development Cycle and UD Guidelines

In keeping with our UD philosophy, we maintain an “upward spiraling” product development cycle that completely involves customers and experts in basic research,

Customer surveys

Voice of the Customer Flow Chart
Repair request
Response

Information on after-sales services

Service
Information
CenterIndividual business groups
Quality assurance department

Feedback on improvements

Information sharing

Customers

Suggestions and complaints

Customers
Collaborating tocreate value

Design department
Inquiry
Response
Response activities

Information sharing

Customer
SupportCenterFiled in database

Flow of information40

Feedback

Manufacturing department

Sharing of information

Hitachi Group
Corporate Sustainability
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Living Together withSociety

Improving Monozukuri and Service

guideline formulation, and product development. We
draw on extensive research into consumer behavior
and their characteristics to formulate UD guidelines for
product development. The information obtained during product development goes into a database that ourbusinesses share, and we distribute some of this information externally to promote open-source standardizationand education initiatives.
Concepts and Examples of UD in Products

Those in charge of products formulate UD concepts ineach field and develop products and services based onthese concepts, sharing them with development staff.
Monozukuri is promoted taking into account a wide range
of users, including the aged, people with disabilities, children, and foreigners.

SEIBU Railways Series 30000 commuter
trains feature large glass doors at theends of train cars

3. Web and Information Systems

These systems are vital for gathering information andcommunicating. For example, people with disabilities rely
heavily on these systems and so we aim to make themmore accessible, usable, and secure.
A special prototype television control system that
we are researching (no plan yet for developing it into a
product) illustrates these priorities, by incorporating newinterface technologies and design concepts. Anyone canoperate the system with hand gestures, eliminating sometroublesome remote controller operations.

1. Digital and Home Appliances

We define people as customers as soon as a productinterests them, so it is essential to consider quality ineverything from pre-sales to disposal. Key attributes areusability, features, harmony with the environment, safety,
and maintenance. Our intention is to tailor products topeople’s needs and lifestyles so that they become attached to them. Good examples are refrigerators witheasy-to-use freezer and vegetable compartments withelectric doors, and “talking” washing machines and dryersthat instruct, indicate status, and help resolve problems—
at the press of a button.

Left: Refrigerator with electric freezer and vegetable compartment doors
Right: Operation panel on washing machines that “speaks” at the press of abuttonWe made a hand gesture-based user interface to control the basic features of
televisions

TOPICS

2. Public Equipment and Systems

Digital Ultrasound System: HI VISION Preirus

Since these are to be used in public spaces, it is vital todesign public equipment and systems that even children
can use while optimizing security, privacy, and safety.
A good example is Hitachi’s Series 30000 commuter
trains, which SEIBU Railway Co., Ltd. operates. This modelfeatures large glass doors at the ends of train cars to improve lighting and security. Playful patterns on thesedoors remind children not to walk into them. In 2009,
Hitachi and SEIBU Railway shared the Kids Design Association’s†4 top prize at the Third Kids Design Awards.

This system is being used in many areas of healthcare:obstetrics, internal medicine, pediatrics, emergency
care, and surgery, among others. Its UD features provide
improved usability and comfort for both medical
professionals and patients, such as pregnant women,children, the elderly, and people with disabilities.
For example, a pregnant woman can see her fetus
ultrasonically on a monitor from the comfort of a

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bed. The gentle contours and warm yellow color of
the ultrasound unit are soothing and relaxing. The
pleasing aesthetics also help with internal medicine
and pediatric examinations, particularly for children
and anxious parents.
To ensure swift examinations under all circumstances, the operator console and monitor move in an
arc for flexible positioning, providing more comfort for
operators and patients.
Hitachi Medical Corporation won accolades forthe design concept of the HI VISION Preirus, receiving
a Good Design Gold Award 2009 in the Society
category from the Japan Industrial Design Promotion
Organization,†5 placing in the top 15 entries. It also
won a product design category award at the Third Kids
Design Awards in 2009.

†1

†2

†3

†4

†5

uVALUE 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 tocreate value in a society characterized by ubiquitous IT.
Good Earth Japan was established in March 2007 to support the independence of local
residents in areas where landmines have been removed. In fiscal 2008, it established
an elementary school in a Cambodian village that had been cleared of landmines, andimplemented the Good Earth Japan Cambodia Study Tour.
International Association for Universal Design: Founded in 2003; dedicated to the healthy
development of society and the enhancement of people’s lives through the dissemination andapplication of UD.
Kids Design Association: Founded in 2006; started by companies and other organizationsin Japan dedicated to creating and disseminating designs that promote the safe, secure andhealthy development and growth of children.
The Japan Industrial Design Promotion Organization sponsors these awards. They are
Japan’s premier awards for recognizing outstanding design, and were first given out in 1957
by METI’s (Ministry of Economy, Trade and Industry) forerunner. The renowned G Mark goesto award winners.

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Communication with Shareholders
and Investors
To ensure that shareholders and investors can make sound investment decisions,
we provide the information they need in a fair, transparent and appropriate way thatstrives to enhance communication with them
Policy on Information Disclosure

based on information available at the time of disclosure and are
subject to various risks and uncertainties. Certain forward-looking
statements are based upon assumptions of future events which
may not prove to be accurate. Hitachi discloses the factors that
could cause actual results to differ materially from those projectedor implied in forward-looking statements.

We communicate with shareholders and investors guided by our disclosure policy. We disclose not only information required by laws or regulations, but also informationthat promotes deeper stakeholder understanding of ourmanagement policies and business activities.

Proactive IR Approach

Disclosure Policy
1. Basic Policy
Hitachi’s corporate credo is to contribute to society through thedevelopment of superior, original technology and products. With
this in mind, Hitachi seeks to maintain and develop trust relationships with all stakeholders, including shareholders and other investors, customers, business partners, employees and regional
communities. We will fulfill our responsibility to stakeholders by
disclosing information in a fair and highly transparent manner, andby conducting various communication activities.
2. Information Disclosure Standards
Hitachi discloses information as appropriate in a fair and highly
transparent way, in compliance with the laws and regulations of
the stock exchanges on which the Company is listed.
Hitachi discloses not only information required by laws and regulations, but also management and financial information that is regarded as useful in deepening stakeholder understanding of Hitachi
management policy and business activities. Hitachi also discloses
non-financial information on the social and environmental impactof Hitachi Group activities. Hitachi’s stance on disclosure recognizes
that society regards the above information as important.
3. Disclosure Methods
Hitachi uses appropriate means to disclose the information required by laws and regulations of the stock exchanges on which
the Company is listed. The Company also posts this information
on Web sites immediately after it is disclosed.
Hitachi also discloses information not required by laws andregulations by distributing news releases, holding press conferences and presentations, posting information on Web sites, andconducting other disclosure activities in an appropriate, precise
and timely manner.
4. Quiet Period
Hitachi stipulates a quiet period of a certain length prior to earnings
announcements to prevent information leaks and to maintain disclosure fairness. During this period, Hitachi refrains from answeringinquiries about business performance and related matters.
5. Forward-Looking Statements
For disclosures, Hitachi may make statements that constituteforward-looking statements that reflect management’s views
with respect to certain future events and financial performanceat the time of disclosure and include any statement that does notdirectly relate to any historical or current fact. Such statements are

Our diverse investor relations activities include businessstrategy meetings for institutional investors and analysts,
tours of plants and R&D facilities, participation in brokerage-sponsored investor meetings, and one-on-one gatherings with investors and analysts.
In fiscal 2009, the then-chairman and president, as
well as four senior executives, visited many institutional
investors globally to explain Hitachi’s management policy as Hitachi made a public offering. We held quarterly
results briefings and a strategy meeting to strengthen Social Innovation business that explained Hitachi’s new direction. We also convened gatherings to provide an overview of progress on information and telecommunication
systems, power systems, and railway systems businesses
and R&D. In addition, we held more than 400 one-on-one
meetings with institutional investors and analysts globally. The feedback we receive is reflected in management
and business policies.
We are committed to timely disclosure and we post
briefings and other materials on our investor relations

The strategy meeting to strengthen Social Innovation businesses

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and Investors

period of time. To this end, we keep shareholders andinvestors informed not only about management resultsfor each term but also management measures looking
ahead to the future.
We do not deny the significance of stimulating corporate activities or the economy through the transfer ofmanagement control rights. However, regarding large
purchases of Hitachi and Hitachi Group companies’
shares, it is necessary to cautiously assess the impact thatsuch a purchase or purchase proposal would have on our
corporate value and shareholders’ joint profits, based on
considerations such as the purchaser’s business profile,
future plans, and past investment behavior.
At present there is no imminent concern that any
particular party will acquire a large amount of Hitachi’s
shares, and we have not established any special measures(anti-takeover measures), should such a purchaser appear.
Nevertheless, as a natural duty to our shareholders andinvestors, we constantly monitor Hitachi share transactions and movements, and if a party appears attempting
to purchase large amounts of shares, we will immediately
take the measures considered appropriate. Specifically,
this will mean assessing the purchase proposal with theassistance of external experts, as well as negotiating withthe purchaser. In addition, when such an acquisition does

Web site. Another Web site, specifically designed for individual investors, provides information that cultivates a
deeper understanding of the Hitachi Group.
Disclosure Tools• Financial results• Annual and quarterly reports pursuant to the Financial Instruments and Exchange Law of Japan• Business reports• Form 20-F filings with the United States Securities and Exchange
Commission (SEC)• Annual reports• Hitachi Group Corporate Sustainability reports

General Meeting of Shareholders
At the ordinary general meeting of shareholders, weoffer audio-visual reports designed to give shareholders
a thorough understanding of our situation. The president
reports on management subjects, and some of this information is then posted on the Web site for shareholders and investors following the meeting. To ensure thatshareholders and investors are able to study financial proposals in advance, in addition to sending written noticesof the meetings, this information is also posted on the
Web site.
Investors
http://www.hitachi.com/IR-e/index.html

Results of External SRI Assessments in Fiscal 2009
Institution

Index

Companies selected*1

DJSI World

Hitachi, Ltd.

DJSI Asia Pacific Index

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

SAM

Results of External Socially Responsible
Investing (SRI) Assessments in Fiscal 2009EIRIS

The Hitachi Group performed well in external assessments
as a socially responsible and sustainability investment.

FTSE4Good Global Index*2

Hitachi Chemical Co., Ltd. / Hitachi Capital Corp. /Hitachi Construction Machinery Co., Ltd. / Hitachi
Software Engineering Co., Ltd. / Hitachi HighTechnologies Corp. / Hitachi Maxell, Ltd. / Hitachi
Koki Co., Ltd.
Hitachi, Ltd. / Hitachi Cable, Ltd. / Hitachi ChemicalCo., Ltd. / Hitachi Construction Machinery Co., Ltd. /Hitachi High-Technologies Corp. / Hitachi Transport
System, Ltd.

Basic Policy for Prevention of Takeovers

Morningstar SRI Index

We invest considerable management resources in basic
research for the future and for the development of pioneering products and businesses. To ensure that thesemanagement measures bear fruit, it is necessary to maintain the continuity of management policies over a certain*1 DJSI (Dow Jones Sustainability Index): A global SRI index that was developed by Dow Jones &Company (U.S.A.) and Sustainable Asset Management (SAM) Group (Switzerland). The Asia
Pacific Index—covering Japan, Asia, and Australia—was launched in 2009.
*2 FTSE4Good Global Index: An index developed in the UK by Ethical Investment ResearchServices (EIRS), which evaluates corporations, apart from specific industries, based on theirenvironmental, social, and human rights performance.

Trends in Shareholder Composition

March 2008

Financial institutions& securities firms

Individuals

Foreign investors

27.16

27.06

42.10

Other institutions
3.68
National &local governments
0.00
4.03
0.00

March 2009

30.60

30.24

35.13
3.41
0.00

March 2010

29.49

31.61

35.49
(unit: %)44

Hitachi Group
Corporate Sustainability
Report 2010

Living Together withSocietyCommunication with Shareholders
and Investors

not contribute to our corporate value and the joint profits
of shareholders, we will promptly determine the need forand contents of specific countermeasures, and set up aframework for their implementation. A similar response
will be made in the event of any attempt to purchase large
amounts of the shares of any Hitachi Group company.

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Living Together withSocietyCommunication with Shareholders
and Investors

Social Contribution Activities
Contributing to society in the areas of education, the environment,
and social welfare through a broad range of activities

Finding Solutions for Social Issues

Hitachi, Ltd. and its five distinct foundations in Japan
contributed around 1.4 billion yen as social contributions
in fiscal 2008.

We are committed to resolving basic social issues in thecommunities where we operate. We work in cooperation
with our employees, Group companies, and our six foundations, based on our Social Contribution Philosophy and
Policy, always remembering our Group Vision of “tacklingthe basic issues faced by global society.”
These activities help us to build relationships of trustwith communities as a good corporate citizen and to boost
community awareness of Hitachi employees working inbusinesses that help improve the social infrastructure of
their communities to meet their social needs. ThroughHitachi innovation and social contribution, we foster development of both local communities and sustainabilitydriven business.

Breakdown of Funding for Social Contribution Activities
Other
12%
Culture andthe arts
12%
Total expenditure:
1.439 billion yen

Scholarships and education
44%

Note: Data on Hitachi, Ltd.
and five foundations in Japanfor fiscal 2008

Social welfare
27%
Environment
5%

Educational Initiatives
Monozukuri, the heart of our business approach, is founded on sound human resources. We instill a keen sense ofsocial awareness in our engineers and we nurture theirambition and technological capabilities to adapt, tackle
and overcome new challenges. We do this to ensure thatthe technical and other expertise that our people haveaccumulated in the Hitachi Group is useful for development of the next generation of engineers.

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

Science Education

Hitachi provides children with many opportunities toApproach to Social Contribution Activities
Social Contribution Activities of the Hitachi Group

Local
communities

Volunteer activities, etc.

Foundations

Active operations as Hitachi Group foundations
Dissemination of information

46

Enhanced brand value

Hitachi Group
Corporate Sustainability
Report 2010

Living Together withSocietyBusiness partners

Actively engaging in social contribution activities to enhance brand value
Supporting the volunteer activities of employees
Social contribution activities that allow us to fulfill our duty to society, such as
disaster assistance

Customers

Hitachi Group
companies

Vitalization of business activities
through more flexible thinking andgreater desire to work

Realization of a better society

Individual fulfillment

Shareholders

Hitachi Group
employees

Social Contribution Activities

Japanese and three local elementary schools in the UAE
to teach about the buoyancy of air, using a mock-up hot
air balloon to demonstrate the principles, and to experiment with magnets to purify ballast water.†1 Hitachi Plant
Technologies intends to continue offering these classes
in the UAE’s children, who are the nation’s future.
In Japan, Hitachi, Ltd.’s corporate laboratories holdscience seminars to promote children’s interest in the sciences. Visiting the laboratory and participating in fun andinteresting experiments based on the specialty and characteristics of the host laboratory, provides the students
with the opportunity to experience science outside thetextbook curricula and the school environment. Around
550 junior high and 60 high school pupils have taken partin these seminars to date.
†1

Ballast water: Seawater used for balancing a ship, harms marine ecosystems when discharged
in a port.

Community Partnership Academy of Wisdom class in the United Arab Emirates

learn about science and technology and to progress inthese fields. Our goal is to overcome an increasing disinterest in science, math and technology among theyoung generation.
Hitachi Plant Technologies, Ltd. cultivates the Community Partnership Academy of Wisdom to teach children
about the environment and science. Classes cover suchdiverse topics as air conditioning and water treatment. In
November 2009, the first classes outside Japan were heldin the United Arab Emirates (UAE). Instructors visited two

Top: Science seminar at the Hitachi Mechanical Engineering ResearchLaboratory
Bottom: Science Camp program at the Central Research Laboratory (Sponsor:
Japan Science and Technology Agency)

IT Education

With advances in IT, personal information leaks and underground school Web sites are just two of the increasingly complex and serious problems facing children in

Mini science seminar at the Hitachi Research Laboratory

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Corporate Sustainability
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Living Together withSocietySocial Contribution Activities

Japan today. Our Information & Telecommunications
Systems Group supplies information on these issues andprovides IT ethics education to children.
In July 2009, Hitachi Software Engineering Co., Ltd.
held a class on information ethics from the viewpointof an IT company at Tokai Junior High School in Tokyo’s
Shinagawa Ward. Young engineers took students throughthe convenience and risks of IT by conducting a workshop on posting to a virtual Internet-based school bulletin board.

are keen to build IT systems but lack the expertise andtraining. Experts spoke about security issues, with company systems engineers presenting case studies. Organization officials aired their security concerns, and learned
how to improve information security.
Providing Educational Support in Developing Nations

Developing nations where we have business operations
often face educational challenges. These include too few
teachers and materials, poor facilities and systemic shortfalls, as well as struggling social environments. Children
are deprived of equal educational opportunities in someregions. To help out, we collaborate with national andlocal governments to assist them with education, as we
contribute to sustainable development.

Hitachi Software Engineering employee lecturing on ethical issues with IT

Hitachi Systems & Services, Ltd. held its fifth annual Information Security Day event on February 2, 2010, to continue promoting the IT industry and cultivating humanresources. For the first time, the company organized aplaying card-based game on basic information security
for non-profit organizations. Officials from 10 of these organizations were invited. Many non-profit organizations

Volunteer from Hitachi Global Storage Technologies teaching English at aschool in China

In fiscal 2005, Hitachi Global Storage Technologies(Hitachi GST) manufacturing sites in China launched avolunteer initiative for elementary schools in Gongbai
Town, Heyuan City, in Guangdong, China. Since fiscal
2007, 36 people from Hitachi GST have volunteered
to teach English to more than 1,000 students at sevenschools in the town.
In fiscal 2008, Hitachi (China), Ltd. began visiting

IT security card-based game for non-profit organizations“I didn’t know my PC’s desktop
was so full of junk files.”Cards that Hitachi Systems & Services produced for game to highlight IT
security issues

Class held by Hitachi (China) employee at an elementary school in Beijing

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Hitachi Group
Corporate Sustainability
Report 2010

Living Together withSocietySocial Contribution Activitiesworkshops to assess the curricula in light of the significance and goals of technical training programs and torecommend modifications to increase student interest.
Graduates from the institute are expected to employ
their technical expertise in industry, academia, and government bodies in India and around the world. We willcontinue our involvement to help raise India’s manufacturing technology standards.

elementary schools to teach children about environmental problems. In April 2009, company instructors taught
about 250 children at an elementary school in Beijing. The
highly entertaining classes featured ecology quizzes andwriting environmental slogans, helping to raise awareness of such issues as pollution and climate change.
Helping Educate Engineers and Technicians

Emerging markets are vital to Hitachi’s business strategy.
These markets urgently need to create outstanding engineers and technicians to drive national development,
while building power and water supply infrastructures.
Hitachi invites young exchange students and researchers
from these countries to Japan to take technical courses.
In fiscal 2009, Hitachi, Ltd. partnered with South
Africa’s Department of Science and Technology to create
the Hitachi-DST Scholarship Program for South African
Engineers. Young engineers working in the power industry in South Africa come to Japan for five monthsof technical training at Hitachi’s plants in Japan, visiting
electric power companies as part of the course. Reports
from participants illustrate the program’s usefulness: One
wrote about “learning much about Hitachi and Japan’svery energy-efficient and environmentally conscious
power generation technologies, the need for lowering
environmental impact, and precision design methodologies.” We look to trainees returning to South Africa toapply their knowledge in helping to build the nation’ssocial infrastructure.

Participants in Hitachi’s educational support program for the Indian Instituteof Technology Hyderabad

Environmental Initiatives
The more than 400,000 Hitachi Group employees andmembers of their families are involved in planting trees
and other earth-friendly projects in keeping with two

Trainees from the Hitachi-DST Scholarship Program for South African
Engineers

In fiscal 2008, Hitachi India Trading Pvt. Ltd. began coordinating educational support to students at the Indian
Institute of Technology (IIT) Hyderabad, India’s leading
science and technology education and research institute.
The company undertook a local survey in fiscal 2009 to
identify and address some of IIT’s requirements. In January 2010, Hitachi executives visited faculties holding

Hokkaido Hitachi Group employees and family members planting andtending saplings in Mukawa, Hokkaido

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Living Together withSocietySocial Contribution Activities

central Environmental Vision priorities: “Prevention of
Global Warming” and “Preservation of the Ecosystem.”signing a five-year afforestation agreement with the town
in April 2008. The goal is to reduce CO2 emissions byplanting trees, while raising awareness among employees
and their families of the need to protect the global environment. In September 2008, Hokkaido Hitachi Group
received a certificate from the prefectural government

Afforestation of Hokkaido by the Hitachi Group

Hokkaido Hitachi Group cooperated with the town of
Mukawa in Hokkaido in its forest improvement project,
Other Hitachi Group “Greenification” Initiatives
Company

Initiative

Overview

Hitachi High-Technologies Corporation

Hitachi High-Tech Yasato Forest

In May 2009, new employees removed weeds and underbrush in Ishioka, Ibaraki Prefecture, Japan, and did
this again with other employees and their families in October.

Hitachi Software Engineering Co., Ltd.

Keihin Afforestation

Participated in this City of Yokohama initiative to increase greenery in an industrial district.

Hitachi Capital Corporation

Mt. Fuji Manabi no Mori natural forest

In July 2009, employees weeded the base of trees as part of this reforestation program of Sumitomo ForestryCo., Ltd.

Hitachi Kokusai Electric Inc.
Kokusai Electric Semiconductor Service Inc.
Kokusai Electric Techno Service Co., Ltd.

Corporate Afforestation ProjectHelping conserve approximately two hectares of forest in the Yatsuo Central Industrial Park, in Toyama City,
Japan, with support from the prefectural city, and environmental bodies. Undertook woodland nurturing
activities seven times in fiscal 2009, including weeding, thinning out shrubs and branches, maintaining trails,
and planting trees.

Hitachi Engineering & Services Co., Ltd.

Yu-Yu-no-Mori Forest

From fiscal 2007, began planting trees in national forest in Takahagi City, Ibaraki Prefecture. About 140
employees weeded and thinned out trees in June 2009.

Hitachi Electronics Services Co., Ltd.

Water Catchment Forest Project

In November 2009, thinned trees and made benches from that material under instruction from forest
instructors at Densa Anshin no Mori in a water catchment forest in Kanagawa Prefecture.

Hitachi, Ltd.

Conducted a five-night, six-day tour with assistance from G-Net, a non-profit organization set up to support
Volunteer Experience Tour to the Horqin Desert desert greening and desertification prevention. Hitachi Group employees and their families from Japan and
China planted and pruned trees as part of the afforestation project in the Horqin Desert, an area that is theAfforestation Project in China
source of some of the yellow sand that blows to Japan.

Hitachi Terminals Mechatronics Philippines
Corporation (HTMP)

Adopt-A-Forest Program

In November 2009, HTMP participated in the Adopt-A-Forest Program, a project initiated by the Subic Bay
Metropolitan Authority (SBMA) Ecology Center. HTMP adopted 3,000 square meters of open land. 36 HTMP
employees took part and planted 400 seedlings of fruit bearing trees like mango and santol.

The Billion Tree Campaign

Since 2007, we have been a special sponsor for an environmental initiative called the Billion Tree Campaignthat is jointly run by the Sirindhorn International Environmental Park Foundation, the United Nations
Environment Programme (UNEP), the Ministry of Natural Resources and Environment of Thailand, and theFoundation for Global Peace and Environment. In fiscal 2009, more than 100 Hitachi Group employees andtheir family members planted trees in the Sirindhorn International Environmental Park.

Hitachi, Ltd.
Thai Hitachi Group Companies

Yasato Forest (Hitachi High-Technologies)

Mt. Fuji Manabi no Mori natural forest (Hitachi Capital
Corporation)

Yu-Yu-no-Mori forest (Hitachi Engineering & Services
Co., Ltd.)

Volunteer Experience Tour to the Horqin Desert
Afforestation Project in China (Hitachi, Ltd.)

Adopt-A-Forest Program (Hitachi Terminals
Mechatronics Philippines Corporation)

The Billion Tree Campaign (Hitachi, Ltd. and Thai
Hitachi Group companies)

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Hitachi Group
Corporate Sustainability
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Living Together withSocietySocial Contribution Activitiesfor reducing CO2 emissions by 396 tonnes through tree
planting.
In fiscal 2009, 170 employees and their families from18 Group companies weeded the bases of 3,000 larch
saplings planted a year earlier. Their afforestation projectin fiscal 2010 is being called the Hokkaido Hitachi Group’s
100-Year Forest to mark Hitachi’s centenary.

and some effort was necessary to address the challenges.
We collaborated with the Japan Guide Dog Association
to assist with this process by teaching employees thecorrect way of handling dogs and giving them first-handexperience walking with these dogs. Hitachi Information
Systems posted what it learned on its Web site in February 2009 to encourage other businesses to consider accepting guide dogs in their workplaces.
Hitachi Display Device (Suzhou) Co., Ltd., a Chinese
subsidiary of Hitachi Displays, Ltd., donates funds to nearby elementary schools and schools for disabled children
and then invites the children to participate in its fall athletic meets. Friendships naturally develop as the employees take part and the children display their own skills.

Social Welfare Initiatives
Hitachi also provides support in the field of social welfare
to ensure that various people enjoy the benefits of therich life that technological progress brings. In these activities, we place a special priority on promoting the soundeducation of the young, supporting the independence ofpeople with disabilities, and helping the elderly.
Helping Enhance the Lifestyles of Disabled People

We promote increased capabilities of disabled people sothey can have more active roles and engage in society.
In December 2007, Hitachi Information Systems, Ltd.
welcomed Isshu, a guide dog who helps a vision-impaired
employee commute to work. It is very unusual in Japanfor companies to accept guide dogs in the workplace,
Hitachi Information Systems’ Web site on questions andanswers about guide dogs (Japanese only)
http://www.hitachijoho.com/recruit/guide_dog.html

Donation check presentation at Hitachi Display Device (Suzhou)

Supporting the Japan National Ice Sledge Hockey TeamWe provide financial and coaching assistance for theJapan National Ice Sledge Hockey†2 Team. Kojin Nakakita
of Hitachi, Ltd. coached the team at the Vancouver 2010
Winter Paralympics, which were held last March. The
team won Japan’s first silver medal in team sports forthe disabled. Nakakita played ice hockey at high school,
university, and in North America. After retiring from thesport due to injury, he was attracted to the speed andAn employee works with Isshu

Isshu’s employee ID

Members of The Japan National Ice Sledge Hockey Team51

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Living Together withSocietySocial Contribution Activities

joint initiatives between individuals and organizations.
In this case, the Hitachi Foundation collaborated with
the Annie E. Casey Foundation, the Ford Foundation,
Microsoft Corporation, the U.S. Department of Labor, andother partners to deploy the National Fund for Workforce
Solutions. The Hitachi Foundation thus became the first
body from Japan to receive the highest recognition fromthe Council.
The Critical Impact Award, honoring those who makea difference in their grant giving, was awarded to the
Hitachi Foundation and the Robert Wood Johnson Foundation for collaborating on the Jobs to Careers initiativein the healthcare field. The awards ceremonies were heldat the Council on Foundations’ annual conference in
Denver, Colorado, from April 25 through 27, 2010.

excitement of ice sledge hockey, making it his goal totake a Japanese team to the Winter Paralympics.
After the silver medal game, Nakakita said, “Despite
significant size differences between my players and theworld’s most formidable athletes in what some call ‘martial arts on ice,’ my guys played hard to achieve a solid
result. I think that beating the favorites for the first timesince I became a coach gave our players tremendous
confidence.”
Nakakita aims to deepen society’s understandingof people with disabilities through this sport and help
his team to win gold at the 2014 Winter Paralympics inSochi, Russia.
†2

Ice sledge hockey is a modified version of ice hockey for people with lower-limb disabilities.

The Diverse Activities of
Our Six Foundations

TOPICS 1

Celebrating 25 Years of the Hitachi Foundation

Hitachi’s six foundations, in and outside Japan, give support to a wide range of programs, including promoting
family education, supporting science and technology research , inviting Southeast Asian university faculty
members to Japan, helping environmental conservation
activities, supporting the sound development of young
people and enhancing corporate citizenship activities in
the United States.

The Hitachi Foundation commemorated a quarter
century of service in 2010. It started out in the UnitedStates in 1985 to foster understanding of Hitachi as agood corporate citizen and to deepen understanding
between the Japanese and American people at a timeof considerable bilateral economic friction.
The Foundation has since broadened its activities toencompass CSR, in the process becoming a preeminentphilanthropic organization in the United States.
Among the Foundation’s three signature programsis the Hitachi Community Action Partnership, in
which employees of Hitachi Group companies inNorth America participate. Another is the Yoshiyama
Program, which encourages social activities of young
entrepreneurs. The Foundation also fosters grant
programs to forge an authentic integration of businessactions and societal wellbeing in North America andcreates opportunities for low-income Americans andtheir families to move up the economic ladder.

Hitachi’s Foundations• The Odaira Memorial Hitachi Education Foundation• The Hitachi Environment Foundation• The Kurata Memorial Hitachi Science and Technology Foundation• The Hitachi Mirai Foundation• The Hitachi Scholarship Foundation• The Hitachi Foundation (U.S.A.)

Hitachi’s Foundations
http://www.hitachi-zaidan.org/global/index.html

The Hitachi Foundation Earns High Honors

The Hitachi Foundation has earned much praise over theyears. In 2010, the Foundation received three awards fromthe Council on Foundations in the United States to recognize organizations, companies, and individuals whose initiatives are models of philanthropy. The three prizes were
the Distinguished Grantmaking Award for Collaboration,
the Critical Impact Award, and the Wilmer Shields Rich
Award. The Hitachi Foundation was the first ever to earn
three awards from the Council, a reflection of initiatives tocreate economic opportunities for low-income workers.
The Distinguished Grantmaking Award for Collaboration is the Council’s top honor, and is given for outstanding

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TOPICS 2

Supporting Haiti Earthquake Relief

Commemorating the 25th Anniversary of
the Hitachi Scholarship Foundation

Hitachi Group companies in the Americas donated$393,000 in funds and goods to the American Red
Cross to help the Haitian people recover from the massive earthquake that struck on January 13, 2010. HitachiGroup employees also contributed funds through theirworkplaces’ matching programs.

In 2009, the Hitachi Scholarship Foundation marked
25 years of encouraging Asia’s future leaders. This
organization helps outstanding faculty members fromSoutheast Asian universities to study for a degreein Japan and also fosters bonds between research
institutions.
The Foundation’s key program is the Hitachi Scholarship, which supports overseas education andresearch for faculty members in the field of naturalsciences at 15 universities in six Southeast Asian countries. Over the years, it became evident that manyobtaining degrees in Japan through the program
found it hard to secure adequate research funding
after returning home. So, the Foundation has been
providing graduate support for research and academic
networking for these people.
Over the past quarter century, more than 10 percentof the Hitachi Scholarship Foundation alumni havebecome professors, and some are now vice chancellors
or faculty heads of their alma maters.

Graduation ceremony for Hitachi Scholarship recipients

Support for Volunteer Activities
Hitachi supports employees who engage in volunteer activities by giving them information, time off, and financial
assistance. We disseminate information about volunteer
activities through seminars and on our intranet. In fiscal
2009, we sponsored three seminars, including one outdoors. We encourage people to use their time for volunteer initiatives, or other forms of self-growth, by providingthem with special annual paid leave, which augments
their regular holidays. We also sponsor The Growing Tree,a program that provides financial assistance for non-profit
organizations that Hitachi employees are involved in. Assistance was given in five cases for around 1.3 million yen
in fiscal 2009.

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Collaboration with SuppliersWorking with suppliers to promote CSR through guideline formulation,
active communication, and information sharing

Global Sharing:
Hitachi Guidelines for Procurementlabor, environmental preservation activities, social contributions, good working environment, and recognition of social
responsibilities with business partners.
(1) HITACHI shall not request quotations from suppliers withwhom there is no intention to enter into a future business
relationship.
(2) In accordance with specified internal procedures, therole and responsibility for specifications, terms and conditions, product acceptance and inspection belongs toeach Requester, Procurement Department and Inspection
Department.
(3) Procurement Departments shall be a representative of
HITACHI when contracting with suppliers.
Revised in 2009

In June 2009, we revised the Hitachi Guidelines for Procurement Activities—the basis of our procurement activities—in line with the United Nations Global Compact.
Our guidelines clearly stipulate the elimination of discrimination for employment and occupation, as well as
the elimination of all forms of child labor and forced labor.
The revised guidelines will be distributed throughout the
Hitachi Group to raise awareness of these issues.
Guidelines for Procurement Activities
These guidelines define business transaction standards whichshall be applied to all HITACHI executives and employees in connection with their activities purchasing necessary materials, products, services, and information from outside sources.

* All companies in the Hitachi Group act in accordance with these guidelines.

Promoting the Use ofEnvironmental Management Systems

1. Overall procurement activities of Hitachi shall adhere to the“HITACHI Company Conduct Standards.”
2. HITACHI shall maintain proper partnerships, mutual understanding, and reliable relationships with suppliers with aview to the long term results.
(1) HITACHI shall treat all suppliers impartially and be prohibited from favoritism such as giving unfair priority to any
specific suppliers.
(2) HITACHI respects fair business dealings with suppliers andwill avoid any improper act which might cause a loss to a
supplier apart from normal and customary business transactions.
(3) HITACHI shall keep suppliers’ trade secrets strictly confidential and prevent them from being revealed or improperly used.
3. HITACHI develops suppliers to maintain competitivenessfrom a worldwide point of view.
(1) HITACHI responds to all suppliers’ offers sincerely, and isalways willing to offer the information necessary for suppliers to complete on an even playing field.
(2) HITACHI shall periodically check and review suppliers’ performance and will consider offering more advantageous
business opportunities when comparison with other resources allows.
4. Through a designated selection process, suppliers shall be
evaluated by product quality, reliability, delivery, price, suppliers’ business stability, technical development ability, fair andtransparent information release, compliance with societies’
rules, regulation compliance, respect for human rights, elimination of discrimination in respect of employment and occupation, elimination of all forms of forced and compulsory

For green procurement,†1 we ask all suppliers to promote
environmental management systems (EMSs) by acquiringcertifications. We actively support the acquisition of EMS
certifications, such as KES,†2 Eco Stage,†3 and Eco-Action
21,†4 mainly for SME (small and medium-sized enterprise)
suppliers. We also organized the MMM Club with suppliers who have acquired certification as members, using
information exchanges on activities and training courses
to promote qualitative EMS improvement.
For handling chemicals, for which regulations are
becoming stricter and chemical content management
more complicated—throughout the world—we recommend that suppliers manage them based on the productchemical content management mechanisms drawn up
by JAMP†5 and promote the development of rational, efficient management systems. We also accumulate information on chemicals in Hitachi Group products in every
process of corporate activities, ensuring that the productchemical content management system corresponds with
the EU’s REACH regulation (see page 89), and that we areable to respond flexibly to suppliers’ chemical information management methods.

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Living Together withSociety

Collaboration with SuppliersPartnerships†1

Collaboration (joint activities) with trustworthy, technologically advanced suppliers is essential for product development. We continually strengthen partnerships withsustainable suppliers. In fiscal 2009, the Hitachi Group
Materials Supplier Conference was held in March 2010
(for about 90 suppliers). In fiscal 2010, the Hitachi Group
Mid-Term Management Plan and Strategic Procurement
Policy will be explained to the management of Hitachi’smajor suppliers (approximately 126) aiming at creating a
global partnership.

†2
†3

†4

†5

Our Open-Door Policy

Green procurement: The procuring of parts and materials with reduced environmental burden
from suppliers that are actively protecting the environment
KES: A Japanese environmental certification system administered by the KES Environmental
Organization, an NPO
Eco Stage: An assessment system being promoted by the Eco Stage Institute to support
environmental management. Eco Stage is a registered trademark of Mitsubishi UFJ Research &Consulting Co., Ltd.
Eco-Action 21: An environmental certification system operated by the Institute for Global
Environmental Strategies, based on the Eco-Action 21 Guidelines formulated by the Ministry of
the Environment
JAMP (Joint Article Management Promotion-consortium): An entity that promotes crossindustry activities for establishing and disseminating specific mechanisms for appropriately
managing and facilitating the disclosure and spread of information on the chemicals containedin supply chain products

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

Using an open-door policy, we create opportunities tobroaden our range of transactions with suppliers. We are
forging links with SMEs by cooperating with local government SME-assistance organizations and by participating in tradeshows and other exhibitions. In fiscal 2009,
we took part in the Tokyo Chamber of Commerce andIndustry Joint Business Matching Event. This was a placefor enterprises to meet new business partners, aiming toenhance their business networks and find business opportunities. We are also planning to hold tradeshows formembers of the Hitachi Group in cooperation with otherinstitutions and organizations.
With suppliers outside Japan, we focus on cultivatingand expanding business in emerging countries undergoing rapid economic growth. In fiscal 2009, we held a
Hitachi Group IT parts procurement fair in Seoul in cooperation with the Korea Trade Center, and we sent a new
supplier sourcing team to Vietnam. To help choose companies for further study, we collected information from awide range of sources, including the independent nongovernmental agency Japan External Trade Organization(JETRO), the Vietnam Trade Promotion Agency, and the
Taiwan External Trade Development Council (TAITRA).

Procurement fair in South Korea

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Collaboration with SuppliersEmployees: The Key to Hitachi’s Future
Respecting employees’ individuality
and promoting activities to achieve work-life balance

Creating a Positive Work Environment andGlobal Corporate Culture

the Business Process and Opinion Survey, this survey isconducted through the Hitachi intranet. The results areanalyzed for each workplace, shared with employees, andused for revising personnel policies and transforming thebusiness culture.

Hitachi, Ltd. is working hard to nurture human resourcesthat can meet the requirements of the new age, attract
global talent, and create a more positive work environment. This endeavor is guided by three key words: (1)openness to encourage frank communication and to provide employees with opportunities to express their fullpotential, (2) challenge to aspire to high goals and personal transformation, and (3) diversity to respect individuality.
In the end, every employee is integral to Hitachi’s success,so we are fostering an exciting and positive global work
environment that is inclusive and engaging, challenging
and rewarding.

360-Degree Feedback Program

In this program, about 10,000 managers attend workshops and engage in e-learning to understand feedback
from their superiors, colleagues, subordinates, and juniorstaff, with the help of expert instructors. Understanding feedback in turn enables managers to reassess theirown strong points and areas needing improvement, as acapacity-building exercise.

Openness: Promotes the Expressionof Employees’ Full Potential

Challenge: Supports Growth
Because we believe that maximizing employee potential
is vital for continuing to provide new value, we work hard
to improve employees’ abilities and their careers.

The Hitachi Group has instituted a range of initiatives designed to encourage frank, open communication so that
employees can achieve their full potential. These include
personnel system reforms, an employee awareness survey, and the 360-Degree Feedback Program.

Employee Capacity Building

For capacity building, we supplement in-house education
based on on-the-job training with an extensive training
system. This training consists of six educational programs:“Management Development,” “Education for Engineers,”“Production Worker Training,” “Education for Internationalization,”“Sales Education,” and “Training by Job Function.”
These programs are offered across the Hitachi Group in
conjunction with educational institutions, such as the
Hitachi Institute of Technology, the Hitachi Institute of
MONOZUKURI Skills and Engineering, and the Hitachi Institute of Management Development.
During fiscal 2009, 24,902 Hitachi Group employees
attended these training programs. Hitachi has also developed unique e-learning systems (in Japanese, English, andChinese) for information sharing and to expand educational opportunities for employees engaged in the HitachiGroup’s diverse businesses. These systems are being usedby Hitachi Group companies inside and outside of Japan.
We have specified the Hitachi Basis as a common basic
education platform for sharing our corporate philosophy,

Personnel Systems

At Hitachi, Ltd., our personnel systems are designed to assess the strengths and achievements of employees fairly
and transparently and to reflect these findings in salaries
and bonuses. Details of evaluation are fully disclosed as
employees meet their evaluators to arrive at a shared assessment. In the course of these discussions, employees
receive feedback on their strengths and weaknesses aswell as guidance on achieving business goals and capacity building. An evaluation manual is used to minimize
disparity. As a further step, employees are surveyed annually to review the evaluation process, and follow-up work
is done to ensure proper management.
Survey of All Employees

We conduct an annual survey of all employees of Hitachi,Ltd. to check on items such as employee satisfaction,
workplace culture, and views on management. Known as

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Employees: The Key to Hitachi’s Futureconservation assessments, prepare improvement proposals using Hitachi examples, and provide ongoing consulting support, as necessary.
This global caravan is intended to improve manufacturing plant QCD (quality, cost, and delivery), to promoteenergy conservation, and to foster the growth of local
engineers. Between October 2008 and February 2010,
this program was implemented at 4 companies in China,
11 in Thailand, 8 in Malaysia, and 6 in the Philippines. We
now plan to expand these activities centered on China,
where there are many production plants, and to step up
the training of local production improvement personnel.

work approach, and way of thinking with all HitachiGroup companies worldwide. We are presently designing human resource development policies for each business field and region based on that foundation to createa two-tiered employee education system.
Supporting Career Development

We work to create an environment where employees
can discuss their careers with their supervisors to deepen
understanding between both parties and enable both totackle their jobs with a clear vision.
We also operate the Career Development Workshop,
a development support program designed to foster independent human resources. It helps participants achieveself-realization, enabling them to develop a deeper selfunderstanding, including their reasons for working, living,
and their work values, as well as how to set personal career goals.
In addition, we have established the Hitachi Group
Job Posting System for employees to improve their motivation for work through job transfers within Hitachi.
Under this system, employees can freely apply for open
positions at any Hitachi workplace. As of March 2010, 19
Group companies were participating. We have also adopted the Hitachi Free Agent (FA) System, allowing employees to apply directly for transfers to other divisions.
During fiscal 2009, 79 applications were received, leading
to 13 transfers.

Giving instruction at a plant in Suzhou, China

Reward System for Employee Inventions

Many Hitachi employees are engaged in research anddevelopment, including some 1,200 with doctorates. We
have developed the Reward System for Employee Inventions to stimulate research and encourage outstanding
inventions.
Hitachi provides rewards for patent applications andregistrations, as well as performance rewards given at thestage where revenues are drawn from patent use and/or
patent licensing income. For performance rewards in particular, Hitachi works to ensure objective evaluations of
the extent to which patents have contributed to Hitachi’sbusiness and to provide equitable payment for patents
that have made a substantial contribution.
To ensure fair and transparent operation of the system, Hitachi has developed invention reward criteria andmade these known to employees. An Employee Invention Rewards Internal Arbitration Committee has also
been set up to receive inventors’ claims and to determine
the amount of payment for invention rewards that are offered. Hitachi’s Invention Information system promotes
communication between inventors and business divisions, enabling inventors to make inquiries themselves tobusiness divisions for information on internal or external
use of patents and to confirm the basis for payment of
invention reward calculations.

Global Manager Training

With our operations taking on an increasingly global perspective, it is absolutely critical that all managers working
on the frontlines of global business understand our history, founding spirit, company operations, common values,
corporate philosophy, and basic management skills. To
instill this understanding, we operate a four-day course,“Global Fundamental Course—Ready to Inspire,” which
offers the same training to all Hitachi managers aroundthe world. Since fiscal 2006, when it was launched, thecourse has been taken by approximately 1,150 managers.
We plan to continue this course from fiscal 2010 on, while
broadening the regions and personnel covered, as well as
the training methods.
Global Caravan

In response to the globalization of business and intensified cost competition, Hitachi is providing support tostrengthen monozukuri craftsmanship at production
plants in China and the rest of Asia. Under this program,technical staff are sent to production plants in eachregion, where they perform site diagnoses and energy

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Employees: The Key to Hitachi’s FutureTrend in the Number of Employees Taking Childcare Leave

The Annual Top 100 Rewards for Use of Patents presidential award was launched in fiscal 2005. In addition,
since 2006, the Top 50 Rewards for Patent Applications
award has been given to inventors aged 35 years andyounger based on their records during their first five years
at Hitachi.

(People)
1,200
1,056
19

1,000
800
600

1,037
Male
438

400

Diversity: A Base for the Healthy
Expression of Individuality

200

436

The upper and lower
figures for each bar
indicate data for maleand female, respectively.

510
6

8
451

504

Female0

At Hitachi, we are developing measures that promote diversity, based on our belief that respect for the individual
and acceptance of diverse values generates synergy andcreates the internal foundations for employees to makethe most of their abilities. For example, by supporting thepromotion of women and improving childcare, nursing
care and other systems, we are creating an attractive work
environment to help employees realize their full potential
and capabilities.

2

459

2007

2008

2009

(FY)

* Hitachi, Ltd. and the
Hitachi Group’s 27
companies in Japan

Trend in the Number of Employees Taking Nursing Care Leave(People)
40

20

18

Male
Female

The upper and lower
figures for each bar
indicate data for maleand female, respectively.

20

20
10

11

10

10
0

Hitachi, Ltd.
Hitachi Group*

36

30

Ratio of New Male and Female Graduate Recruits in FY 2009

10

8

2007

2008

5
6

16
2009

(FY)

* Hitachi, Ltd. and the
Hitachi Group’s 27
companies in Japan

Trend in the Number of Employees Working Shorter Hours(People)900

Female

839

800

20%

9

700
600

Hitachi, Ltd.

500
400

80%

Male
350

200

Male

100

Ratio of Male and Female Employees in FY 2009

0

Hitachi, Ltd.
Hitachi Group*

830

300

FemaleHitachi, Ltd.
Hitachi Group*

383
1

2

349

381

The upper and lower
figures for each bar
indicate data for maleand female, respectively.

288
1
287

Female
2007

2008

2009

(FY)

* Hitachi, Ltd. and the
Hitachi Group’s 27
companies in Japan

Female15%

12%Hitachi, Ltd.

Hitachi Group*

Women’s Summit Tokyo 200985%

In December 2009, we co-sponsored a cross-industry
exchange event, Women’s Summit Tokyo 2009, together
with three other companies (Aozora Bank, Ltd., NTT DATACORPORATION, and Hewlett-Packard Japan Ltd.) that promote diversity. As the lead organizer this year, we worked
to increase the number of participating companies andwe called for participation from men.
Overall, 180 employees from 46 companies, including
12 men, attended the Summit. With the theme “Inspire
your career—using soft power in business,” the event featured lectures, group discussions, and lively exchangesof opinions. Women’s Summit Tokyo 2009 promoted
exchanges among different industries, and provided an
opportunity for the participants to think about their own
leadership skills. Hitachi and the three other co-sponsors
will hold this event annually, supporting more dynamic
activities by women, and further promoting the value ofmanagement diversity.

88%
Male

Male

* Hitachi, Ltd. and the Hitachi Group’s 27 companies in Japan

Trend in the Number of Female Managers
(%)
3.5
2.9

3

3

2.5

2.5

(People)
600

1.9

2

520

500

1.5

400
276

300

303

320

1

200
100
0

0.5

73
2000

Hitachi, Ltd.
Hitachi Group*
Hitachi, Ltd.
Hitachi Group*

2007

2008

2009

(FY)

0

* Hitachi, Ltd. and the HitachiGroup’s 27 companies in Japan

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Employees: The Key to Hitachi’s Futurewas distributed to female managers. These women
work for the 19 Hitachi Group companies participatingin the Diversity Development Group Council, which waslaunched in fiscal 2009 (see page 19). The questionnaire,completed by about 440 working women, surveyed experiences and comments on such topics as the rewardsof leadership and ways to balance work and private life.
The results were compiled into a pamphlet, Tips for Enjoying Work, and were distributed via the Hitachi intranet. This pamphlet will aid employees at Hitachi to think
about their careers while choosing a varied lifestyle. It isalso expected to be a reference to help managers foster
the growth of their subordinates.

An employee from Hitachi Transport System, Ltd. making a presentation at
Women’s Summit Tokyo 2009

Work-Life Balance Promotion Project

We are participating in the Work-Life Balance Promotion Project launched in 2008 by the Ministry of Health,Labour and Welfare. This project aims to foster a balance
between work and life by widely publicizing specific activities and their results from 10 leading companies in different business fields. Based on the Charter for Work-Life
Balance and the Action Policy for Promoting Work-Life
Balance, these companies advocate activities using theirrespective independent action plans.
During fiscal 2009, we introduced Hitachi Group examples at Work-Life Balance public lectures sponsored by
the ministry in Tokyo and Osaka, and via our participationin the production of a television program. We will continue to actively promote work-life balance through collaborations with enterprises in other industries.

Tips for Enjoying Work

Women’s Leadership Network in the U.S.

Hitachi Data Systems (HDS), based in Santa Clara, California, launched the Women’s Leadership Network (WLN)
in November 2008 to develop women’s leadership andnetworking skills. Three female HDS managers are on the
WLN executive committee. The WLN promotes diversity
through activities, such as a series of lectures by executive
committee members entitled “Simple Rules for Becoming
a Great Leader.” In 2009, the WLN arranged for 50 women
to attend the Professional Business Women of California(PBWC) conference, which featured renowned speakers
on career and leadership development.
The WLN, which began with just 50 members, now

Hitachi, Ltd. FY 2009 Action Plan
Fostering a Dynamic Workplace Environment(1) Boost productivity by reforming how employees work
(2) Promote physical and mental health(3) Strengthen workplace communication skills

Work-Life Balance Public Lecture (Osaka)

Publishing a Message from Working Women (Japan)

In response to comments by female employees on thelack of nearby role models, a questionnaire on careers

Lecture given by WLN executive committee member Nancy Long

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Employees: The Key to Hitachi’s Futurehas 250. Members have commented that they “feel reassured when they meet other members with the same
worries,” and that “Hitachi Data Systems has been greatlychanged by the WLN.”

Support Companies Awards sponsored by Ibaraki Prefecture. In addition to opening Sakura Hiroba, the companies were recognized for a series of initiatives by the
Hitachi Chemical Group. These include improvements tochildcare leave, childcare allowance and other support
systems; distributing information on various events andsystems; and the development of a support Web site forfemale employees that gives examples of how Hitachi
workers are successfully managing their work while raising children.

Company Day Care Center: Sakura Hiroba

In April 2008, the Hitachi Chemical Co., Ltd. Yamazaki
Works (Ibaraki Prefecture in Japan) and Hitachi Chemical
Techno Service Co., Ltd. established a new company day
care center, Sakura Hiroba, near their plants. The centercreates a way for employees’ children on public day care
waiting lists to receive care. This is part of the Work andChildcare Support Initiative being promoted by the entire
Hitachi Chemical Group. As of January 2010, Sakura Hiroba
had 18 children on monthly contracts and 13 drop-in children. It is open to children—from birth up to elementary
school—of Hitachi Chemical Group employees who workin the area.
The center, which stays open past 8 p.m., considers
employees’ working hours, and provides drop-in day carefor employees when they work on holidays. Parents saythat the center is both convenient and supportive.
In January 2009, the Hitachi Chemical Co., Ltd.
Yamazaki Works and Hitachi Techno Service Co., Ltd. were
presented the Award for Excellence in the Support for
Both Work and Childrearing category at the Childrearing

Employing Retirees (Japan)

Hitachi and Hitachi Group companies have adopted a life
plan selection framework, designed to re-employ people
aged 60 who want to continue working and are suited
to company-designated positions. We strive to make fulluse of older people with deep experience, technical expertise, and skills.
Nichiwa Service Opens Social Welfare Recycling Center

In April 2009, Nichiwa Service, Ltd., a Hitachi Life Group
company, opened Nichiwa Service Social Welfare Recycling Center with support from Hitachi City, Ibaraki Prefecture in Japan. This center was created—in cooperation
with local social welfare facilities—by renovating (for confidentiality, safety, and other measures) an idle facility at
Hitachi, Ltd.’s Kokubu Production Headquarters. It is now
a workplace for people with mental disabilities: The workers at the Social Welfare Recycling Center dismantle usedelectronic equipment and sort the materials for recycling.

Sakura Hiroba company day care center

An employee working at the Nichiwa Service Social Welfare Recycling Center

From the first month, three workers with mental disabilities took apart used PCs, copy machines, cell phones,
printers, and other electronic equipment collected from
Hitachi Group companies, nearby firms, and local government bodies. They sorted the materials for recycling, andlearned other work skills under the guidance of Hitachi retirees. The recovered materials are then sent to refineriesChildrearing Support Companies Awards prize ceremony

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Employees: The Key to Hitachi’s Futureto be recycled as resources. For example, hard disk drives
are crushed and transported to Tokyo Eco Recycle Co.,
Ltd., a Hitachi Plant Technologies Group company. This
contributes to the Hitachi Group’s materials cycle.
Three trainees were hired in November. Today, a teamof six employees dismantles about 600 electronic devices every month. It is now easier for them to carry out
their tasks because they have visual representations—pictures and photographs—of work procedures. We
plan to enhance this business model to include small
household appliances, to establish additional locations
where individuals with disabilities can be active, and toincrease employment.

Hitachi Group Health and Safety Research Presentation Meeting

Division Extends Zero-Accident Record

A Safe, Pleasant Workplace

In July 2009, Hitachi, Ltd.’s Telecommunications & Network
Systems Division (located in Totsuka Ward, Yokohama) received a certificate for the longest zero-accident record in
manufacturing from Japan Industrial Safety and Health Association for the twenty-first consecutive year. Moreover,
the record has been extended to 139,744,244 hours (as ofMarch 31, 2010) with no accidents that result in at least
one day’s injury leave. This no-accident record continues
to be the top of the industry in Japan. As this shows, thedivision has been working hard to boost safety awarenessand carry out comprehensive measures through ongoing programs such as conferences by a health and safetycommittee, safety education, month-long enhancement
activities called “health and safety months’’ and regularsafety inspections.

We encourage all activities that ensure workplace safety,
as well as those that maintain and promote employee
health. This is based on the common group belief that
ensuring the health and safety of employees is our highest priority. We are determined to continually improve thelevel of health and safety throughout the Hitachi Group.
Workplace Health and Safety

With all safety procedures, we make every effort—basedon the principle of self-management—to ensure safety at
every worksite. Our goal is zero serious mishaps and zeroaccidents. Regardless of the industry, we work to steadily
reduce the causes of accidents through consistent regularinspections, safety education and other basic measures,combined with active risk assessment and other hazard
prediction systems. As a result of these safety activities,
several Hitachi Group workplaces have been given thePrime Minister’s Award for Safety in Japan.
Occupational Accident Rate
(People)
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0

All industries
Manufacturingindustries
Electricalmachinery sector
Hitachi, Ltd.
2005

2006

2007

2008

Longest Zero-Accident Record by Industry certificate and plaque2009 (FY)As of May 30, 2010, FY 2009 figures are not available, except for Hitachi, Ltd.

Ensuring Better Work Hours

The Hitachi Group Health and Safety Research Presentation Meeting is also held every year to improve the levelof health and safety throughout the Hitachi Group. The
fiscal 2009 event attracted 250 participants from 70 companies, and featured special lectures by outside experts;
the sharing of accident cases, health and safety issues;and new approaches to health management.

To improve productivity and operational efficiency, we
return to the basics in our reviews of how managers andother employees work.
We encourage employees to reduce overtime andtake annual paid holidays. In this way, we try to ensure
appropriate work hours and help employees maintaina good work-life balance, which ultimately strengthens

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Employees: The Key to Hitachi’s FutureSeries” where employees learn about nutrition, centeredon the relationship between health and food, leading toweight management and disease treatments. They alsooffer courses on the Cooper/Clayton Method smoking
cessation program twice a year.
Hitachi Automotive Products (USA) also campaigns
to spread healthy lifestyle habits in their community.
The company supports games at local “Second Sunday”
sports events held on the second Sunday of each month.
These include the tennis and ping-pong hybrid gamecalled pang-pong,†2 which was originally created at a Hitachi, Ltd. factory.

them and the organization as a whole.
Promoting Mental HealthWith an eye on creating the conditions where every employee works in a healthy environment, we promote themaintenance and improvement of everyone’s physicaland mental health. This is one part of our employment
reforms. We have strengthened our industrial healthsystem, provided education on ways to deal with stress,
encouraged health promotion movements, and haveotherwise improved preventive measures. We also support greater workplace communications, including helping managers to further develop their communication
skills.
One example of a health program is the EAP†1 Center,
which has been set up to help employees resolve theirworries and concerns via person-to-person, telephone, andonline counseling. Through the EAP Center, mental healthexperts provide support for human relations concerns,
work-related problems, life plans and other questions andconcerns. After understanding the situation and condition of the employee seeking advice, and once privacy has
been assured, the information is relayed to management
for use in improving the work environment.
Training for Strengthening Communication Skills

A spirited game of pang-pong in the U.S.

To revitalize workplace communications, we started a
training program in 2008 for managers to strengthen
their communication skills. To promote diversity andgood interpersonal relations based on trust—as well as
to achieve organizational goals—we stress respect for individuality and differences of opinion and culture, while
seeking a full consensus.
The hands-on instruction during the two-day, roleplaying training course focuses on communication skills
that are the basis of all interactive skills: active listening,
essential for mutual understanding; and assertion, whichallows people—after opinions and ideas are expressed—
to reach a conclusion that all parties can accept. About
2,600 managers have taken communication skills training
as of March 2010.

Mentor Program

In fiscal 2008, Hitachi Systems & Services, Ltd. introduceda mentor program to address the career anxiety of new
employees and support their adaptation to work, workplaces, and society. Under this program, in addition toreceiving guidance from their supervisors, new employees (mentees) can talk about their work and company life
concerns with senior employees from other workplaces
who serve as their mentors through face-to-face meetings and e-mail. This system is available to new hires during their first two years of employment. Presently some
180 mentors are providing support to about 400 junioremployees. Mentees who have used the program indicate changes in their awareness as members of society
through such comments as “I came to understand whattypes of abilities and knowledge are required to improvemy skills for my work” and “I learned the knowledge andways of thinking required to build up personal relations
with other workers.” Mentors have also reported benefits,
such as gaining new values and diverse perspectives. The
mentor system is leading to better employee motivation
and bringing renewed vitality to the company.

Encouraging Better Health in the U.S.

Hitachi Automotive Products (USA), Inc., in Harrodsburg,
Kentucky, is promoting employee health. They hold ahealth fair every year for employee education on preventing adult-onset and lifestyle-related diseases. They
publish articles on health and disease treatment in theirmonthly health, safety, and environmental newsletter.
The company offers workplace health education classes, including the ten-week course “Weight—The Reality

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Employees: The Key to Hitachi’s Futureacross the Group—to provide life planning support for
employees. For defined contribution plans, we encourage the active participation of employees in their postretirement planning through, for example, education on
asset management and investments. For defined benefit
plans, we have boosted the number of benefit options in
response to employees’ diverse needs.

Basic Attitudes to HIV/AIDS

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

Hitachi Company Hospitals

In 1938, Hitachi, Ltd. founded the Hitachi Hospital (nowthe Hitachi General Hospital) as the first corporate-affiliated hospital, with the fundamental philosophy of contributing to factory hygiene and public medicine. Hitachi
has now established six company hospitals, centered onregions where our production plants and businesses arelocated. In addition to providing social welfare and healthmanagement services to Hitachi Group employees andtheir families, all six hospitals are also open to local residents. These hospitals strive to provide high-quality, safe
healthcare services using the latest medical treatment
technologies and expertise. They also cooperate with thelocal healthcare community by forming ties with major
local hospitals and medical institutions as well as the
Hitachi Group’s medical businesses by sharing information on medical treatments.

Enriching the Lives of Employees
and Their Families
Hitachi has instituted a range of measures designed tosupport richer, more stable lives for employees and theirfamilies.
Supporting Employee Self-Help and Independence

We employ measures designed to support an employee’s
self-reliance and independence. These include housing support such as dormitories, company housing, anda housing allowance system, as well as other measures
such as an asset-building savings program, an employee
stock ownership program, group insurance, and consolation payments. In 2000, a new “cafeteria plan” system wasintroduced that allows employees to select the benefits
they will receive. Choosing from a list of options, such as
skills development, childcare, nursing care, health promotion and donations, allows employees to tailor a program to their individual lifestyles and needs. Employees
can select the support that they need—when they need
it—according to their “cafeteria points.”

The Six Hitachi Company Hospitals
Name

Location

Year Established

Hitachi General Hospital

Hitachi City, Ibaraki Prefecture

1938

Taga General Hospital

Hitachi City, Ibaraki Prefecture

1942

Hitachinaka General Hospital

Hitachinaka City,
Ibaraki Prefecture

1945

Odaira Memorial Tokyo Hitachi Hospital Bunkyo Ward, Tokyo

1960

Hitachi Yokohama Hospital

Yokohama City,
Kanagawa Prefecture

1942

Hitachi Kasado Hospital

Kudamatsu City,
Yamaguchi Prefecture

1941

Employee Life-Planning Support
through Corporate Pensions

With Japan’s declining birth rate, the aging of society, andthe growing diversity of post-retirement lifestyles, corporate pensions seem positioned to play an increasingly
important role.
In response to the diversification of post-retirement
lifestyles, changes in the employment system, and revisions to legal systems, the Hitachi Group has fundamentally revamped retirement allowances and pensions.
Defined contribution and defined benefit plans havebeen introduced within the systemic infrastructure—

The Hitachi General Hospital today

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Employees: The Key to Hitachi’s Future

The Hitachi Hospital when it was founded in 1938

Main Assessments & Awards
Hitachi, Ltd. has received the following assessments andawards from the media and related organizations to recognize employee-friendly workplaces.
• Nihon Keizai Shimbun, Inc., 2009 Ranking of Companies with theBest Working Conditions: fourth place• NPO Fathering Japan, 2009 Survey of Fathering-Friendly Companies: top three• NPO Japan Mothers Society, third Best Mother Awards, Corporate Prize: 2010 prize winner†1 EAP (Employee Assistance Program): Provides employees with psychological, physical, andsocial support†2 Pang-Pong: Game combining aspects of tennis and ping-pong played using wooden rackets,a wooden net and a soft tennis ball, developed at the Hitachi Plant (Ibaraki Prefecture in Japan)of Hitachi, Ltd. in 1922 to make use of scrap materials. The game has since spread as a sport
among employees in the U.S., as well as the public and at schools in the Hitachi City area.

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Employees: The Key to Hitachi’s Future

Hitachi’s Environmental Conservation
We aim to realize a more sustainable society by promoting monozukuri that reduces
the environmental burden of a product throughout its life cycle

1940
A Century of Service

Construction of the Hitachi Industrial Water Facility

In Hitachi’s early days, we drew water from the Hitachi Mine, but local population
growth had left the entire area with a serious water shortage. Concerned about
this, Kumeo Baba, then the general manager of the Hitachi Works located in HitachiCity, Ibaraki Prefecture, Japan, proposed not only collecting industrial water but
also supplying water to local residents. In 1940, Hitachi built a water collection andpumping station on Kujigawa River in Hitachi City and also established Hitachi
Waterworks Co. (later to become the Hitachi City Waterworks Department) to supply
some industrial water to town residents for domestic use. This facility is still used forindustrial water.
Kujigawa River Water Tower today

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Hitachi Group
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CSR Management at
HitachiCorporate GovernanceCommitment | Message from the Chief Environmental Strategy Officer

A More Sustainable Society through Our Actions,
Products and Services

Environmentally Conscious Management

Contributing to Environmental Conservation
through Business
In November 2009, China’s National Development and Reform
Commission (NDRC) and the Hitachi Group signed a memorandum of agreement on “friendly collaboration for the establishment of a low-carbon society and resource recycling.”
Hitachi will cooperate with China in such areas as power
generation, smart grids, water treatment and recycling, andurban transportation, to help China with its energy-saving
and environmental conservation initiatives. In the UK in
December, Hitachi’s aluminum rolling stock—achieving
high energy efficiency through reduced weight and otherimprovements—went into operation on a high-speed railway
line. Also, we reached an agreement with a Canadian electric
power company in February 2010 for research and development, cooperating with them on carbon capture and storage(CCS) and other low-carbon technologies. These are a few
examples of how we are providing environmental solutions
for our customers.

The Hitachi Group's environmental management aims to
mitigate climate change, resource depletion, ecosystem destruction and other increasingly serious global-scale threats
to the environment. Pursuing our Environmental Vision
based on three pillars—prevention of global warming, conservation of resources, and preservation of ecosystem—we are providing the world with products and services that contributeto environmental conservation, while conducting businessglobally in ways that reduce our environmental burden.
In a major management restructuring in October 2009,
we introduced an in-house company system that gives business groups and subsidiaries the same responsibilities and authority as listed Group companies. Under the new structure,each in-house company and Group company is putting its
own strengths to work, with the Hitachi, Ltd. Group corporate divisions exercising leadership, as we take environmentally conscious corporate action.
Sustainable corporate management cannot be achievedby our efforts alone. It can only be realized by building a solid
partnership with our stakeholders. Through dialogue andcollaboration with stakeholders, we are discovering what is
expected of the Hitachi Group, and we are working to propose and provide the best solutions globally.

Promoting Sustainable Corporate Activities
We have achieved all the targets in our Environmental Action
Plan for fiscal 2009. Sales of environmentally conscious EcoProducts were 53 percent of all sales, bettering the 48 percent target. We reduced the levels of CO2 emissions from ourcorporate activities by 21 percent in Japan (from fiscal 1990
levels) and by 5 percent outside of Japan (per unit of production, compared with fiscal 2003 levels). We are also improving the effectiveness of global environmental management by

Our Achievements in 2009
Undaunted by the difficult economic situation during fiscal
2009, we combined the strengths of the Group to realize ourEnvironmental Vision, as outlined below.

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Message from the Chief
Environmental Strategy Officer

66

holding working-level regional environmental conferences in
Europe and China.

Centennial Year Emphasis:
Social Innovation Business
The year 2010 is our centennial year. As we take the initial steps
toward the next 100 years, we would like to make major contributions to society through our social infrastructure projects
and our technology, in keeping with the original purpose of
the company. This year will see the global deployment of what
we call “social innovation business,” or providing environmentally conscious, highly advanced public infrastructure basedon information and communication systems technology.
In October 2010, the 10th Conference of Parties (COP10) to the Convention on Biological Diversity will meet in
Nagoya; while the 16th COP on the United Nations Framework Convention on Climate Change (COP 16) will meet in
Mexico later in the year. The discussions at these conferences
will focus on global initiatives and goals for preserving biological diversity, as well as the international framework andtargets for reducing CO2 emissions in 2013 and after.
Ever mindful of these international concerns, we will
finalize our third environmental strategy during fiscal 2010
and draw up environmental action plans for the five years
from fiscal 2011. Based on our Environmental Vision, we
pledge to renew our commitment to implementing worldleading, assertive plans for managing the environment.
July 2010

Takashi Hatchoji
Executive Vice President, Hitachi, Ltd.
Hitachi Group Chief Environmental Strategy Officer

67

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Message from the Chief
Environmental Strategy Officer

Vision | Hitachi Group Corporate Environmental Management

Toward the Resolution of Global Environmental Issues

Three Environmental Pillars of Our Vision:
Prevention of Global Warming, Conservation of
Resources, and Preservation of Ecosystem
The Hitachi Environmental Vision

The quest for a comfortable life has led
humankind to create a society based onconvenience. However, environmental
problems have surfaced, such as climatechange, resource depletion, and ecosystem destruction. To realize a materialcycle society in harmony with the earth,
we must share our vision and promote
environmental conservation.
We have created an environmental
vision to achieve a more sustainable
society by promoting global production that reduces the environmental
burden of a product throughout its life
cycle. We have formulated Environmental Vision 2025, a long-term plan placing
priority on preventing global warming,
and we are conducting our business activities accordingly.

Standards of Corporate Conduct—Fundamental Credo
Adopted June 1983

CSR Policy of the Hitachi Group
Adopted March 2005

Hitachi Action Guidelines for Environmental Conservation (Summary)
1. Assist to realize a sustainable society as a management priority.
2. Contribute to society through technologies and products taking into account the prevention of global
warming, conservation of resources, and preservation of the ecosystem.
3. Members of the board in charge of environmental conservation are responsible for promoting appropriate environmental conservation activities.
4. Promote globally applicable monozukuri with the aim of reducing environmental burdens.
5. Introduce excellent technologies and materials useful for safeguarding the environment, i.e. in termsof energy and resource saving, recycling, consideration for the ecosystem, etc.
6. Conserve the environment by observing environmental regulations and implementing voluntary environmental standards.
7. Regarding globally applicable monozukuri activities, consider the environmental impact on the local
community.
8. Educate employees regarding global environmental conservation activities.
9. Evaluate potential environmental problems and prevent them from occurring.
10. Make efforts to disclose information on environmental conservation activities to stakeholders.
Adopted March 1993 (revised July 2010)

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Hitachi Group Corporate
Environmental Management

68

To realize our Environmental Vision, we promote activities in accord with the Hitachi
Action Guidelines for Environmental Conservation. These guidelines are basedon the corporate credo of contributing
to society through the development ofsuperior, original technology and products as stated in the Standards of Corporate Conduct.

Standards of Corporate Conduct—Fundamental Credo
CSR Policy of the Hitachi Group
Hitachi Action Guidelines for Environmental Conservation

We will help reduce annual CO2 emissions by 100 million tonnes
by 2025 through Hitachi products and services
for the prevention of global warming.

Philosophy of Environmental Vision 2025
The Fourth Assessment Report of the IPCC†1 states that it isnecessary to maintain greenhouse gas emissions at about 450
ppm (parts per million) to keep global temperatures from rising
two degrees or higher than before the Industrial Revolution. To
meet this goal, the International Energy Agency has presented
a scenario for halving CO2 emissions by 2050 compared with2005 levels and stabilizing them at 450 ppm.
To contribute to the prevention of global warming, we created Environmental Vision 2025 as a long-term plan for ourbusiness activities. With 2005 as the base fiscal year, our goal isto help reduce annual CO2 emissions by 100 million tonnes by2025 through Hitachi products and services. To this end, we will
boost the environmental efficiency of Hitachi Group products
and aim to make them all Hitachi Eco-Products (see page 85).

(billions of
tonnes)60

Scenario assuming world energy policies
implemented to date
Scenario with stabilization at 450 ppm

40

40.2

30
20

52.2

2025: Help reduce annual CO2 emissions by 100 million tonnes throughHitachi products and services

50

27.1

26.4

20.7
14.5

10
0

1995

2025

2005

2030

2050

(FY)

Based on energy-related CO2 emissions in the International Energy Agency’s
World Energy Outlook 2009

Intergovernmental Panel on Climate Change

Reducing CO2 Emissions through Products and Services
To help reduce annual CO2 emissions by 100 million tonnes,
we will cut emissions by 70 million tonnes in the power sector
by building nuclear power plants, improving the efficiency ofcoal-fired power generation, and promoting more renewableenergy. For industries, we will reduce emissions by 20 million
tonnes by introducing products such as high-efficiency inverters and transformers and by conserving energy such as in data
centers. For the transportation, commercial, and residential
sectors, we will reduce emissions by 10 million tonnes by developing lithium batteries for industry and cars and by reducing the energy used by home appliances.
In fiscal 2009, we formulated a calculation policy to reliably
measure reduced CO2 emissions within the Hitachi Group. Also,
we received third-party reviews on our methods for calculating
reduced CO2 emissions and their results for 10 products, such as
nuclear, coal-fired, and hydroelectric power generation products,
servers, and energy-saving services using inverters (see page 103).

69

Contributions to CO2 Emission Reduction(Base: FY 2005)(millions of
tonnes)
100 million tonnes/year
Transportation,commercial & residential
10%
Industry
20%
63

100
Contribution to CO2 emission reduction†1

Concept behind Hitachi’s Fiscal 2025
CO2 Emission Reduction Goal

CO2 emissions

Environmental Vision 2025

80
60
40
20
0

35

11.36

Power generation
70%

14

2009
2010
(estimate)*

2015

2020

2025

(FY)

* CO2 emission coefficients were calculated using 2007 figuresfrom the International Energy Agency’s CO2 Emissions from Fuel Combustion
Highlights (2009 Edition)

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Hitachi Group Corporate
Environmental Management

sHighlightss

Contributing to Environmental Conservation

Hydroelectric power

Prevention of Global Warming

Reduce CO2 emissions in energy production

Solar power

Nuclear power

Railway systems

Thermal power

Rare metal recycling

Conservation of Resources

Collect products for reuse and recycling
Soil decontamination
Wind power

Recycling home appliances

Preservation of Ecosystem

Reduce negative effect on air, water and soil

Ballast water purification system

Environmental Business of the Hitachi Group
Living in harmony with the earth and building a sustainable society
will require persistent effort and considerable ingenuity. The HitachiGroup Environmental Vision aims for the prevention of global warming, the conservation of resources, and the preservation of the ecosystem. Through our products and services, created with the very latest
technologies, we will go on helping to build a rich, healthy society witha lasting future.

Water environment solutions

Prevention of Global Warming

through Business

Nuclear power

Thermal power

Page 72

In addition to building supercritical andultra-supercritical pressure thermal power
plants with improved generating efficiency,
we are developing CO2 capture and storage(CCS) and other low-carbon technologies

Chugoku Electric Power Company’s
Shimane Nuclear Power Station Unit 3

Evonik Steag GmbH
Walsum Power Station Unit 10 (Germany)

Smart grids
Building next-generation power transmission and distribution systems (smart grids)that use information technology to monitor
power demand and supply, enabling effective use of renewable energy sources regardless of weather conditions

Data center

Home

Renewable energy
Involved in wind, solar, and hydro power
generation equipment to control systems
for stable distribution
Page 72

Building

Home appliances

EnergyIT

Prevention of Global Warming

Enhance energy efficiency of our products
Thermal,nuclear, hydroRenewable energy,
batteries
Tokyo Electric Power Company
Ohgishima Solar Power Plant (tentative name)
Artist rendering of completed plant

Railway systems
Page 73

Batteries
Batteries, including lithium-ion batteries
for hybrid vehicles and lead batteries used
for both industry and renewable energy
applications

Class 395 (UK)IT platforms

Lithium-ion battery
for hybrid vehicles

Page 73

Consumer Products
Creating high value-added products—from
consumer appliances to digital media products—with energy-saving and environmental technologies at the core

Lithium-ion batteries
used in hybrid cars

Modular data center

Conservation of Resources
Rare metal recycling
Page 74

Magnetic parts after dismantlingHome appliance recycling
End-of-life appliances are dismantled andrecycled to reuse resources

Air conditioner recycling

Front-loading washer-dryer

Preservation of Ecosystem
Water environment solutions
Page 75

Bunus sewage treatment plant in Malaysia

Ballast water purification system
Page 75

Soil decontamination
Cleaning contaminated sites using microorganisms to decompose hazardous
substances naturally or using additives fora chemical reaction

Test device onboard a tanker

Soil excavation

sHighlightssContributing to Environmental Conservation through BusinessPrevention of Global Warming
Helping to reduce annual CO2 emissions by 100 million tonnes
by 2025 through products and services

Nuclear Power
Generating electricity by nuclear power results in far
fewer CO2 emissions than burning fossil fuels at thermal
power plants, proving nuclear power to be effective atpreventing global warming. Using technologies accumulated from our involvement in nuclear power projects since 1957, we are taking part in the building andpreventive maintenance of highly safe, reliable nuclear
power plants in and outside Japan.
In fiscal 2009, we delivered a reactor pressure vessel
and turbine to Chugoku Electric for Shimane Nuclear
Power Station Unit 3. At the J-POWER Ohma Nuclear
Power Station, set to begin operating in 2014, we arelaying the foundations and making other preparations
to install a reactor pressure vessel. We are also developing nuclear fuel cycle technology: recovering usable fuelfrom spent fuel and reusing it.

Chugoku Electric Power Company’s
Shimane Nuclear Power Station Unit 3
Wind Power Ibaraki Co., Ltd’s Wind Power Kamisu

Wind PowerWind power is widely seen as clean, since it generates
electricity without emitting CO2. To take advantage ofterrain updrafts, we developed the world’s largest downwind turbines. Also, our technology has more stable
output in variable winds. Our strengths include having
a wide range of technologies and equipment, as well as
being a system integrator, to use these in products andservices. In fiscal 2009, we delivered seven turbines forWind Power Kamisu, an offshore wind farm owned byWind Power Ibaraki Co., Ltd.

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Contributing to Environmental
Conservation through Business

CO2 Emissions from Main Power Generation Methods
Emissions from burning fuelEmissions from facilities and operations

975

800
600

519

400

111

88
Coal-fired

53
Combined
cycle LNG

29

Photovoltaic

0

887
408

22

Wind

200

Nuclear

CO2 emissions per kWh(g-CO2/kWh)
1,000

Sources: Central Research Institute of Electric Power Industry and others

72

IT Platforms
With the increase in IT equipment, energy use by data
centers has skyrocketed. We are tackling this issue in various ways: Our Harmonious Green Plan aims to reduce
CO2 emissions by 330,000 tonnes†1 over the five years
from fiscal 2008 by making IT equipment more energy
efficient. Furthermore, the CoolCenter50 Project seeks to
reduce data center power use by as much as 50 percent
from 2007 levels by 2012. As part of these initiative, wehave developed a modular data center that optimizes
the layout of air conditioners and IT equipment for bothcooling efficiency and space savings. Power use by air
conditioners that cool servers is cut by up to 67 percent†2
and CO2 emissions are reduced. After completing test
operations in fiscal 2009, we have started marketing thisnew data center solution to corporate customers.

Class 395 high-speed train operating in the UK

Railway Systems
Railways will continue to be seen as an environmentally
important means of transportation. As a total railway systems integrator, we operate in a wide range of railway
system businesses from rolling stocks and traction system to traffic management, signaling, and power supply,
as well as information services.
Railway companies in and outside Japan havepraised our hybrid traction system—combining a diesel
engine with storage batteries to improve fuel efficiency
and reduce harmful emissions—and our A-train, whichuses aluminum to reduce weight and save energy. In fiscal 2009, toward more global operations, a Hitachi highspeed train based on the A-train began running in theUK; while in China, among other developments, we aredelivering a train control system.

Modulardata center

CO2 Emissions from Various Forms of Transportation
Private car 168†1

Airplane 109
Bus 51
Railway19

g-CO2/passenger-km (FY 2007)†2

Source: Ministry of Land, Infrastructure, Transport and Tourism (Japan),
Reducing Global Warming in Transportation (in Japanese)

This calculation is based on the assumption that the annual number of IT appliances that
Hitachi will ship is equal to the actual figure for fiscal 2007 every year, staying unchanged overthe five-year period from fiscal 2008. This figure shows the difference in the amount of CO2
emissions from the total amount that would be emitted if this plan were not implemented.
Calculations are based on survey data in the Japan Electronics and Information Technology
Industries Association (JEITA), Survey Report on IT Trends (June 2009) (in Japanese)

Present State of the Environment

Curbing Global Warming
In tandem with the economic development of nations andregions around the world, CO2 emissions—a major cause of
global warming—have been increasing. According to theInternational Energy Agency (IEA), these emissions are onpace to reach 40.2 billion tonnes annually by 2030. Global
warming can cause drought, severe heat, floods and otherproblems. If it worsens, abnormal weather patterns maylead to rising disease and death rates. To avoid these consequences, technological innovation is needed to reduceenergy-related CO2 emissions in such fields as the power
generation and transportation systems that support everyday life.

Scenarios for World Energy-Related CO2 Emissions
Scenario assuming policies implemented to date
Scenario stabilized at 450 ppm (see page 5)(billions of
tonnes)4540.2 billions of tonnes (field and reduction amount)
40
Power generation:
Needed reduction: 9.3 billions of tonnes
13.8 billions of tonnes

35

Transportation: 1.6 billions of tonnes
Industry: 1.6 billions of tonnes
Other: 1.3 billions of tonnes

30
25
0

73

27.1

2005

26.4 billions of tonnes

2030

Hitachi Group
Corporate Sustainability
Report 2010

(FY)

Based on energy-related CO2 emissions
in the International Energy Agency’s
World Energy Outlook 2009

Hitachi’s
Environmental
Conservation

Contributing to Environmental
Conservation through BusinesssHighlightssContributing to Environmental Conservation through Business

Conservation of Resources
Reinforcing recycling of rare metals and other mineral resources
as well as R&D for alternative materials

Rare Metals Recycling

Hitachi Group Products That Use Neodymium Magnets†1

Among rare metals, rare earths are widely used in hightech and energy-saving products—such as electric motors in hybrid cars and hard disk drives—due to theirability to generate strong magnetic power; they can also
be used at very high temperatures. Today, stable supplyof rare earths is becoming a problem: China products approximately 97 percent of these and demand continues
to grow. We manufacture products such as home appliances and medical equipment that use the rare earth
neodymium (Nd). In fiscal 2009, with assistance from
METI,†3 we began developing technology for separating and recovering rare earth magnets from end-of-life
products. Following feasibility tests, we hope to start fullrecycling operations by 2013.

Air conditioners* (compressor)

Washing machines (drum motor)

Refrigerators* (compressor)

Neodymium magnets extracted
from dismantled hard disk drives

Hard disk drives(voice coil motor, spindle motor)
Industrial motors (PM motor†4)

†1
†2
†3

†4

Rare earths: 17 elements including lanthanum and scandium. Rare earth magnets are magnetic alloys of rare earth elements such as neodymium and dysprosium.
Calculated using data from U.S. Geological Survey, Mineral Commodity Summaries 2010
Japan’s Ministry of Economy, Trade and Industry launched a project to promote recycling ofresources in fiscal 2009. The project’s goal is to find technology for recycling rare earth metals
from “urban mines,” such as high-performance magnets from motors.
Permanent magnet motor

Permanent magnet open MRI
scanner (gantry: ring where
magnetic field is generated)

Parts in ( ) use magnet materials* Not all models

Present State of the Environment
Mineable Years of Metal Resources(based on fiscal 2009 data)

Risk of Resource Depletion
Reserves of metals, which are natural resources, are limited.
Given their increasing use due to global economic development, shortages are likely to get worse in the near future.
The inability to obtain stable supplies of resources will affect industry in many ways, including price hikes, making
resource recycling all the more important.

(mineable
years*)
80
70
60
50
40
30
20
10
0

70
50

56

34
20

Gold

Copper

Iron

NickelManganese

Based on data from U.S. Geological Survey, Mineral Commodity Summaries 2010
* Mineable years = reserves/annual production

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Contributing to Environmental
Conservation through Business74

sHighlightssContributing to Environmental Conservation through Business

Preservation of Ecosystem
Helping preserve the ecosystem by cleaning air, water, and soil

Bunus sewage treatment plant in Malaysia

ClearBallast system being tested on an oil tanker

Water Environment Solutions

Ballast Water Purification System

Conserving the water environment is essential for protecting the ecosystems that can be affected by humanwater use and disposal. In addition, since many countries
face severe water shortages, providing water and sewage
facilities, as well as water treatment is an international
issue. As a comprehensive water environment solution
provider, we work on the wider availability of sewage
treatment systems—restoring water to its natural state—
as well as circulating systems for water regeneration. Examples include participating in large sewage treatment
plants in Malaysia, helping improve their water supply,and working on a pilot water circulation project in the
United Arab Emirates. Our water solutions extend to local
flood control and water treatment systems for removing
toxic substances.

Ballast water—seawater that keeps ships stable—contains plankton and other organisms. They are transported by ships and can harm the local ecosystem when
discharged in a port. For this problem, the International
Maritime Organization adopted an international convention on ballast water in 2004. (Conditions for putting
it into effect are unmet, as of June 2010). According to
the convention, ballast water treatment equipment
should be installed on all ocean-going vessels by 2017.
We developed technology in this area early on, and in
2009, Hitachi Plant Technologies’ non-sterilization system
ClearBallast became the first in Japan to win IMO approval. Only about ten companies in the world have received
approval. ClearBallast’s coagulation and magnetic separation are attracting wide attention.

Present State of the Environment
Trends in Populations of Freshwater Animal Species*

Threat of Ecosystem Destruction
Populations of freshwater animal species that live in lakes,
rivers, marshes and other inland waters are said to havedeclined by approximately 35 percent between 1970 and
2005. The causes include over-fishing, invasive non-native
species, and water pollution. Among these reasons, waterpollution by industry is especially serious as a direct cause ofdestruction of ecosystems. One of the “ecosystem services”
that nature provides is water purification, but its capacity
is limited. Effective treatment of wastewater is necessary tohelp preserve ecosystems.

Index
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0

1970

1980

1990

2000

2005

* An index showing changes in populations of more than 300 species living in inland waters,with the 1970 level as 1.0.
Source: World Wildlife Foundation (WWF) Living Planet Report 2008

75

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Contributing to Environmental
Conservation through BusinessEnvironmental Action Plan

Promoting Environmental Action;
Setting Targets for every Fiscal Year
Sustainability Compass

The four directions for our environmental activities are depicted in the
Sustainability Compass. The specificaction items and the targets for eachdirection are outlined in the Environmental Action Plan, for which the final
year is fiscal 2010. The achievementlevel of each year’s target is evaluated and continual improvements
are made. The Environmental Action
Plan is also optimized by adding action items and reviewing targets in
response to, for example, changes in
the global environment, requests fromstakeholders, or early target achievement. By implementing the Environmental Action Plan and promoting
monozukuri through which we reduce
the environmental burden of a product throughout its life cycle, we intend
to achieve emission neutral status byfiscal 2015.

The Concept of Emission Neutral

N Next-Generation
Products & Services

Lays out directions
for environmental activities

E

W
Worldwide
Environmental
Partnerships

Eco-Mind & Global
Environmental
Management

Eco-Factories
S Super& Offices

Emission neutral means making the direct environmental load and the reduction of the social environmental load equal. Direct environmental load includes material production/processing, manufacturing,and transportation, while the reduction of the social environmental load is the amount reduced throughenergy- and resource-saving products compared with the base year of fiscal 2005.

Direct Environmental Load

CO2 emissions
from material
production/
processing

Material production/
processing

Hitachi Group
Corporate Sustainability
Report 2010

Reduced Social (Indirect) Load

CO2 emissions
from manufacturing
CO2 emissions
from transportation

Reduced CO2 emissions
during product use
through energy-saving products

Reduced CO2 emissionsin product take-backand recycling

Distribution

Use

Take-back/recycling

CO2 emissions
from waste recycling

Manufacturing

Hitachi’s
Environmental
Conservation

Environmental Action Plan

76

N

Environmental Action Plan
E

W
S

Hitachi Group Fiscal 2009 Environmental Action Plan: Targets and Results
Item

Page(s)Action goal

Index

Achievement
level

Fiscal 2010
targetCertification acquisitionin five companies

sss

Integrated EMSs
certified

93%

sss

90%

86%

89%

sss

90%

48%

53%

sss

55%

98%

sss

100%

85%

sss

80% or more

Fiscal 2009 target

Fiscal 2009 results

Eco-Mind & Global Environmental Management
pp.
79–80

Set up an integrated
environmental manageIntegrated EMS certification
ment system in every
in-house company/
Group company

Nurtureenvironmental
literacyp. 82

Boost percentage of
employees receiving
Hitachi Group-widetraining (environmental
e-learning)Green purchasing

p. 82

Purchase products suchas environmentally con- Green purchasing percentage
scious office products

Establish
environmental
management
systems (EMSs)

Promotion/expansion

Percentage of employees receiving training 85%

Next-Generation Products & Services
Percentage of sales

PromoteEco-Products

pp.
85–86

Expand Eco-ProductlineupICT systems, digital media,
98%
Percentage consumer products, etc.
of registered
Power systems, social/indusproducts
trial systems, high functional 80% or morematerials & components, etc.
Percentage of Super Eco-Products

22%

22%

sss

30%

Certification of Super Eco-Factories &Offices

24 production facilities (total)

32 production facilities (total)sss

30 production
facilities (total)

CO2 emission reduction rate(base: FY 1990, Japan)

12%

21%

sss

12%

Rate of reduction in CO2 emissions per unit
production (base: FY 2003, outside Japan)

4%

5%

sss

5%

Environmentally Conscious Factories & Offices
Promote Super
Eco-Factories &OfficesPrevent global
warming

Use resources
efficiently

Chemical
substance
managementp. 91

Build industry’s mostadvanced factories
and offices

pp.
92–93

Reduce CO2 emissions
from energy sources

p. 93

Reduce energy used intransportation

Rate of reduction in energy for shipping per
10%real unit output (base: FY 2006, Japan)

26%

sss

11%

pp.
94–95

Reduce waste

Rate of waste volume reduction(base: FY 2000)

24%

33% (total reduction)
24% (per unit production reduction)

sss

25%

pp.
94–95

Promote resource
recycling

Resource recycling rate(base: FY 2005, Japan)

8%

19%

sss

10%

p. 95

Use water effectively

Rate of reduction in water used (base: FY
2005, outside Japan)

8%

20%

sss

10%

Reduce chemical
substance emissions

Rate of reduction in VOC emissions into theatmosphere (base: FY 2000, Japan)

49%

68%

sss

50%

p. 96

Rate of reduction in VOC emissions into the8%atmosphere (base: FY 2005, outside Japan)

14%

sss

10%

Improve dissemination ofenvironmental action

Environmental communication
through media mix of TV commercials, newspaper advertisements,
advertorials, Internet, etc.

sss

Continue toimprovedissemination

Participation in Eco-Products Tokyo

sss

Continue toparticipate in
exhibitions

Worldwide Environmental Partnerships

Environmental
communicationpp.
99–102

Enhance environmental
activities through more
two-way communication

Plannedimplementation

Participate in eco-product exhibitions

sss Achieved
ss Partially achieved

77

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Environmental Action Plan

Eco-Mind & Global Environmental Management

Implementing environmental
programs consistently
Under a system for global corporate management,
we use environmental management systems
to meet the targets of our Environmental Action Plan,
while working hard to instill “Eco-Mind” in all our employees

Targets and FY 2009 Results
TargetResult1

Build EMSs and improve
the quality of activities

52

Instill “Eco-Mind” in employees
through environmental education93

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Eco-Mind & Global
Environmental Managementcompanies were certified
for integrated EMSs

employees completed% ofenvironmental
e-learning courses

78

Further info

p.79

p.82

Eco-Mind & Global Environmental Management
E

Environmental Management Structure
Building a global network to put our environmental strategies to work

Environmental Management Framework

In fiscal 2009, we held regional environmental meetingsin Shanghai and Belgium. Participants discussed the latest environmental regulations and exchanged views onenvironmental issues. We will continue to use these regional networks to improve our global activities—with
the special character of each region in mind.

The Hitachi Group is made up of Hitachi, Ltd.’s in-housecompanies and Group companies. We are building a global
environmental management system to support environmental decision making and action at Hitachi, Ltd., 900
consolidated subsidiaries, and 157 equity-method affiliates.
The Hitachi, Ltd. Environmental Strategy Office is
responsible for developing Group-wide environmental
policies. It drafts basic management policies and actionplans that are deliberated on and approved by the Senior
Executive Committee for Environmental Policy, chairedby the president. The Environmental Strategy Officers
Meeting, made up of representatives from in-housecompanies and major Group companies, ensures thatenvironmental strategies are implemented throughout
the Group. We also have an Environmental Committee
and subcommittees of working level employees in eachpolicy area who develop specific targets and measures
for achieving them.
Outside Japan, we are building networks to promote
environmental action. Regional environmental committees promote understanding and disseminate Group policies, while seeking solutions to local environmental issues.

Building Environmental
Management Systems
The criteria for environmental management at eachbusiness site are determined by the environmental load.
Approximately 300 sites meet these criteria, and the 28
business units to which these sites belong—the R&D
Group, four in-house companies, and 23 Group companies—have together developed and implemented the
Hitachi Group Environmental Promotion Organization
Criteria for Environmental Management Level(major items)
Employees
Electric power consumption
Waste generated
Water used
Paper purchased≥ 500≥ 6,000 MWh/year≥ 500 tonnes/year≥ 600 m3/day≥ 50 tonnes/year

Environmental Management System (EMS)
Environmental
Strategy
Officers Meeting

Senior Executive
Committee forEnvironmental Policy

Environmental
Strategy Office

Factories and Offices
Division heads
Environmental
management officers

In-House Companies
Presidents
Environmental
strategy officers

Environmental
Committee

Group Companies
Presidents
Environmental
management officers

In-House Companies’
Integrated EMSs

Eco-Management
Committee

Factories and Offices
Division heads
Environmental
management officers

Major Group Companies
Presidents
Environmental
strategy officers

Eco-Products
Committee
Eco-Factory
Committee
Environmental Management System
under the Hitachi Group
Environmental Promotion Organization*

Group Companies
Presidents
Environmental
management officers

Group Companies’
Integrated EMS* Organization built around the environmental promotion departments of the Hitachi, Ltd. Research &Development Group, four in-house companies, and 23
Group companies

Regional Environmental Meeting

President

900 consolidated subsidiaries and 157 equity-method affiliates

79

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Eco-Mind & Global
Environmental Management

Environmental Management Structure

EMS to consistently promote the implementation of environmental policies.
In fiscal 2009, the Hitachi Group Environmental Promotion Organization EMS had its first audit for renewalof ISO 14001 certification. No corrective action was required, and renewal was granted.
Also, the in-house companies and Group companiesof the Hitachi Group Environmental Promotion Organization EMS are each working on their own EMSs to improve
environmental activities and to streamline management.
In fiscal 2009, one in-house and four Group companies
carried out EMS integration of their business sites.
At the same time, every business site meeting the criteria for environmental management continues to maintain
ISO 14001 certification. We also extended the EMS campaign to sites that do not meet the criteria. As of March
2010, 602 Hitachi Group business sites were certified.

information on outside complaints, honors received, andother items. By analyzing this information, we identify
environmental management issues and share instructive examples within the Group. We are expanding thissystem to keep pace with new laws and policies. For
example, we added a new function for registration to
the electronic manifest system promoted by the government to prevent inappropriate disposal of wastes. Also, in
fiscal 2009, we upgraded our system to collect and analyze energy-use data from all domestic sites in response
to Japan’s amended Energy Saving Law.†1

Managing Environmental Risk
In the Hitachi Group, we go the extra mile in environmental
management by considering the environmental burdenof all our business activities and setting voluntary management criteria that exceed regulations. At every businesssite, we monitor water quality and noise, for example, andwork to minimize environmental risk. We also share information on environmental regulations and violations toprevent recurrences and to strengthen management.
In fiscal 2009, four incidents exceeded statutory environmental standards and there were five noise complaints, and all were promptly resolved. We will continue
to audit and monitor data to prevent recurrences.
To prevent soil and groundwater contamination
caused by chemical leaks, we inspect underground tanks
ultrasonically and replace underground pipes, pits, andtanks with ones above ground. At the end of fiscal 2009,
approximately 90 percent of all sites where chemical
substances were used had completed soil and groundwater decontamination or were contamination free. At
the remaining sites, cleanups are taking place, and monitoring will continue.

Status of ISO 14001 Certifications (As of March 2010)Japan

No. ofcertified sites

Outside Japan

Producton
Sites

Non-Production
Sites

Producton
Sites

Non-Production
Sites

Total

240

228

111

23

602

Europe
15
China
42

Japan
468

North America
18

Asia
59

Violations of Statutory Standards
Water quality

Air

Total

Japan

0

0

0

Outside Japan

2

2

4

Monitoring Environmental Performance Data

For effective environmental management, we collectenvironmental performance data on business operations using the Environmental Load Evaluation System.
This system collects environmental load data from 300
Hitachi business sites worldwide on such items as energyuse, CO2 emissions, and waste generated, together with

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Eco-Mind & Global
Environmental Management(Fiscal 2009)†1

80

The Act on the Rational Use of Energy
List of ISO 14001-certified sites

Eco-Mind & Global Environmental Management
E

Improving on Environmental Initiatives
Working hard to meet the targets of our Environmental Action Plan
through continuous improvement and education

Environmental Activity Evaluation System

our own evaluation system, GREEN 21. It divides environmental activities into eight categories and evaluatesachievements and progress toward Action Plan targets
by rating 55 items from one to five, then visualizing theresults on radar charts. For any category, a perfect scoreis 200 green points (GPs). Interim evaluations are madeduring the year to identify weaknesses and make improvements in categories with low scores. The annual
evaluations are also reflected in business performance
evaluation of Group and in-house companies. In fiscal
2009, the Group achieved a score of 1,194 GPs, surpassing
the target of 1,152. For fiscal 2010, the target is 1,280 GPs,or a Group average of four points or more on all 55 items.

Our environmental activities are based on the action
items and targets in our Environmental Action Plan. To
enhance the level and quality of these activities, we use
Green Point Average: Results and Targets

8. Worldwide
Environmental Partnerships
139 GPs

2. Eco-Mind
159 GPs

80
0

7. Eco-Factories:
Resource Recycling
153 GPs
6. Eco-Factories:
Reducing Global Warming
133 GPs

FY 2010: 1,280 GPs
FY 2009: 1,194 GPs
FY 2008: 1,108 GPs

1. Eco-Management
153 GPs
160

3. Eco-Products:
Manufacturing
149 GPs

5. Next-Generation
Product / Service Strategy
151 GPs

4. Eco-Products:
Green Procurement
157 GPs

GREEN 21 Awards

The GREEN 21 Award program was set up to encourage
environmental activities and disseminate best practices.
It honors the best environmentally conscious products
and technologies as well as activities that have yielded
outstanding results, based on the combined scores foroverall environmental activities (using GREEN 21) andoutstanding individual achievements. In fiscal 2009, a
grand prize winner, four division awards, and four honorable mentions were selected from 35 entries, including
nine from outside Japan.

Categories and Evaluation Items
1. Environmental management action plan, environmental accounting, risk management, andstatutory compliance
2. Environmental training and education for employees (general education, specialized education,
auditor training)
3. Ecodesign, Eco-Products, management of chemical substances in products
4. Green procurement, green purchasing
5. Next-generation Eco-Product strategy, sustainable business
6. Energy conservation at business sites, environmentally responsible transportation
7. Waste reduction, chemical substance management
8. Stakeholder-oriented information disclosure, communications, global citizenship activities

Fiscal 2009 Green 21 Awards
Category

RecipientAchievement

Grand Prize

Hitachi Works, Power Systems Co. (Hitachi, Ltd.)

Contributing to CO2 emission reduction by joint development and marketing (withKansai Electric Co.) of adjustable-speed pumped storage system enabling regulation of
input power according to demand; winner of 2009 Minister of the Environment Award
for Activities to Prevent Global Warming, technology and product development division

Eco-Mind & Global
Environmental Management

Hitachi Global Storage Technologies (Thailand) Ltd.

Forming an energy conservation team and reducing electricity and fuel consumption;
winner of Prime Minister Industry Award

Next-Generation Products & Services

Alaxala Networks Corp.

Developing dynamic energy-saving system for networks (see page 87)

Worldwide Environmental Partnerships

Hitachi Global Storage Technologies Philippines Corp.

Activities to raise environmental awareness and preserve the environment

Super Eco-Factories & Offices

Kasado Works, Industrial & Social Infrastructure Systems Co.
(Hitachi, Ltd.)

Making production process more energy efficient, using recycled water, promoting
waste recycling (see page 91)

Toyama Works, Hitachi Kokusai Electric Inc.

Improving quality in management of chemical substances in products; ongoing
afforestation activities

Kansai Area Operation, Hitachi, Ltd.

Developing and marketing environmental information management system inpartnership with customers

DivisionAwardsHonorable Mentions

Hitachi Software Engineering Co., Ltd.

Activities to promote community relations, biodiversity

Tohoku Rubber Co., Ltd.

Boosting efficiency of energy use in production processes (see page 91)

81

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Eco-Mind & Global
Environmental Management

Improving on Environmental Initiatives

Participating in the Developmentof International Standards

Specialized training includes advanced education
for staff directly engaged in product development, factory management, and other areas. In addition to HitachiGroup Training, individual companies and units provide
special education and training tailored to their own business area.

We work with the following international standards organizations for environmental issues and environmentallyconscious product technology: the International Organization for Standardization (ISO), Ecma International, the International Telecommunications Union(ITU-T), the World
Business Council for Sustainable Development(WBCSD),
and the International Electrochemical Commission (IEC).
This helps us discover global business opportunities andensure our products’ competitiveness. On the IEC’s technical committee 111, we served as international project
leader for IEC 62430—generic procedural standards forenvironmentally conscious design—published in fiscal
2008. In fiscal 2009, Ecma International began working
on standards for collaborative control of IT equipment
and facilities for energy-efficient data centers, a projectthat we proposed.

Hitachi Group Education and Training System
General employees

Managers

Executives

Hitachi Group Training
General education
Specialized education

Environmental
management
education

Eco-Mind education(online e-learning)
Eco-Productdevelopment training
Education for Eco-Factories
Auditor training

Senior auditor
training

Brush-up training for auditors

Company or Organization Training
General education

Eco-Mind education
for company or organization

Specialized education

Training for employees
working in certain operations

Promoting Green Purchasing
We are improving our green purchasing rate—the ratio ofenvironmentally conscious products purchased to total
office supplies—by using a Group-wide online purchasing system, the e-sourcingMall. This system has a rangeof recyclable products and goods made with recycledmaterials. It promotes purchasing by clearly labeling environmentally conscious products. For fiscal 2009, ourgreen purchasing rate reached 89 percent. In fiscal 2010,
we plan to both lower costs and increase purchasing ofenvironmentally conscious products through Groupwide bulk purchasing of office supplies, with the goal ofreaching 90 percent green purchasing.

An IEC meeting in the Netherlands

Environmental Education
For better employee understanding and awareness ofthe environment, we developed Hitachi Group Training,a Group-wide environmental education program. It is divided into general education—covering subjects such as
Hitachi’s Environmental Vision and environmental strategies—and specialized expert training.
For all employees, a general Internet-based e-learning course is offered in three languages: Japanese, English, and Chinese. By connecting our global production
sites to the Internet, 163,894 Group employees took thecourse in fiscal 2009, a completion rate of 93 percent.

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Eco-Mind & Global
Environmental Management

Required and actual numbers of legally certified staff

82

Eco-Mind & Global Environmental Management
E

Environmental Accounting

Investment Ratio by Countermeasure

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

Other
15%
Pollution
Prevention
Waste Reduction

15%

67%

Prevention of
Global Warming

3%

Environmental Protection Costs
Costs (billions of yen)

Item
Expenses

FY 2007

FY 2008

Overview

FY 2009

Business area

39.72

33.31

Upstream/downstream

2.79

1.97

28.2 Costs of maintenance of equipment with low environmental burden, depreciation, etc.
1.70 Green procurement expenses, recovery and recycling of products and packaging, recycling expenses

Management activities

11.30

11.20

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

Research and development

46.63

50.25

52.81 R&D for the reduction of environmental burden caused by products and production processes, productdesign expenses

Social activity

0.48

0.35

0.25 Planting, beautification, and other environmental improvement expenses

Environmental damage

0.80

0.99

0.68 Environmental mitigation costs, contributions, and assessments

Total

101.72

98.06

92.56

Total investment

15.38

10.17

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

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

Environmental Protection Effec ts
Economic Effects*1
Item

Costs (billions of yen)
FY 2007

FY 2008

Major FY 2009 Activities

FY 2009

Net income effects

14.50

10.90

8.30 Finding value from waste by sorting and recycling

Reduced expenses effects

22.02

18.24

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

Total

36.52

29.14

23.30

Physical Effects
Item

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

Major FY 2009 Activities

FY 2007

FY 2008

FY 2009

Reduction in the amountof energy used during
production

161 million
kWh(34,000)

158 million
kWh(33,000)

191 million Reviewing clean room operating conditions; consolidating worksites and facilities (relocation of production bases); limiting the
kWh number of refrigerator units and switching to inverter technology; partnering with electric supply companies to save energy(40,000)

Reduction in the amountof final waste disposal

7,361 t(53,000)

6,752 t(48,000)

5,955 t Switching to PRF (solid waste fuel); recycling grinding sludge and slag; reducing effluent volumes; reducing packaging(43,000) materials for goods received

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

Efficiency of Environmental Load Reduction*4
Item
Reduction in energy used during production (million kWh/billion yen)
Reduction in amount of waste for final disposal (t/billion yen)

FY 2007

FY 2008

FY 2009

28

33

2,000

1,940

83

42 *4 This is an indicator of the efficiency of environmental load reduction,
calculated as the amount of environmental load reduction divided by
2,290
expenses needed for the reduction.

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Eco-Mind & Global
Environmental Management

Next-Generation Products & Services

Providing productswith a reduced environmental burden
We are committed to preventing global warming and recycling resources, andhelping to protect the global environment through our products and services.
To reduce the environmental burden across the product life cycle,
we are developing Eco-Products that meet rigorous requirements.

Targets and FY 2009 Results
TargetResult1

To help reduce annual CO2 emissions by 100 million tonnes by2025 through Hitachi products andservices

Contributing to

2

To develop and promote
environmentally conscious
products and services

Eco-Products achieved a

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Next-Generation Products & Services

11.36

84

Further info

million fewer tonnesof emissions

53%

sales ratio

p.69

p.86

N

Next-Generation Products & Services

Developing Environmentally
Conscious Products
We develop and design products that minimize the environmental burden

Environmentally Conscious Design

87–88) of these products must be at least ten times morethan reference products (factor 10), or they must be leaders in their industry for their energy efficiency standard
achievement rate†2 or other similar factors, or must be
highly rated outside the company. As of March 2010, 539
models, or 22 percent of Eco-Products sales, had beenregistered as Super Eco-Products.

In 1999, we introduced a Design for Environment (DfE) assessment system that sets specific environmentally conscious criteria for the design and development of products
and services—at all stages, from material procurement toproduction, distribution, use, and disposal. This system
helps reduce the environmental burden throughout thelife cycle of products and services. We designate those
products that meet DfE requirements as Eco-Products.
Where DfE assessment initially focused on consumer
electronics, industrial machinery and other hardware,
we have now widened the scope of DfE by developing
methods that apply to software and IT-based services. In
fiscal 2009, we developed assessment methods for plant
products such as wind power generation systems, aswell as housing. This assessment has also been tailoredto comply with the European Eco-design Directive†1 andother environmental product regulations. We aim to
make all Group products Eco-Products by fiscal 2025.

Hitachi’s Eco-Product System

Super Eco-Products• Either a global warming prevention factor
or a resource factor of 10 or more
• Industry leading level• Highly regarded outside Hitachi

Products that meet DfE
assessment criteria
Eco-Products

Products

Development of Super Eco-Products

Disclosure of Environmental Information

Eco-Products that meet even more demanding requirements are designated Super Eco-Products. Aiming tominimize the environmental burden, the global warming
prevention efficiency or resource efficiency (see pages

In 1999, Hitachi introduced an environmental information labeling system that uses symbols and data sheets
to provide environmental information on environmentally conscious products. The mark in page 86 indicates

How a DfE Assessment Is Performed
During product design, the environmental load is assessed quantitatively for each product life cycle stage using the eight
DfE assessment criteria. If a product scores at least equal to or more than level 2 (the reference level before the latest major
model change) in all eight criteria and its average over all the criteria is level 3 or more, it is designated an Eco-Product.

DfE assessment launched

Eco-Product designation

Assessment
Qualifying products

Non-qualifying products reviewed

Eight assessment criteria (example)
Product Life Cycle

1. Resource reduction
Resource conservation

Material
production

Manufacturing

Distribution

Use

Reuse or recycle

Collection
Disposalanddisassembly

8. Packaging
materials (reduction, etc.)
7. Information
provision
6. Energy
efficiency

85

2. Productlongevity
3. Resource
recycling
4. Ease of
decomposition
5. Environmental and processing
protection

Hitachi Group
Corporate Sustainability
Report 2010

The environmental burden is quantitatively
assessed at each product life cycle stage.
DfE assessment criteria (examples):
1. Size and weight reduction, resource reduction
2. Durability, reliability
3. Use of materials that can be reused and recycled
4. Ease of disassembly and material separation
5. Environmentally conscious parts and units
6. Energy efficiency in production, distribution and use
7. Provision of suitable environmental information
8. Reduced packaging and recycling

Hitachi’s
Environmental
Conservation

Next-Generation Products & Services

Developing Environmentally Conscious Products

Goal & Performancethat a DfE assessment has found the product to be an
Eco-Product, letting stakeholders know that the product’s environmental burden has been highly improved.
We also use our Web site to disclose environmental information, such as data sheets for each environmentallyconscious product and case studies of products that
helped improve environmental efficiency.

Eco-Product Increase

100

80

%*1/at least%*2 in fiscal 2010
Goal
Performance In fiscal 2009, the Eco-Product registration rate was 98
percent for product categories of information and telecommunications systems, and consumer products; 85 percent for product categories of power systems, high functional materials and components
and others. Both categories cleared their goals for the fiscal year (98percent and at least 80 percent, respectively).

(%)

Eco-Product registration rate*1
Eco-Product registration rate*2
No. of registered models

100

97
84

98
86

No. of models

98

(100)

85

(at least 80%)

80

Hitachi’s environmental mark10,0008,387

60Management of
the Whole Development Process

40

†2

0

Hitachi’s
Environmental
Conservation

Next-Generation Products & Services

6,000
4,000

2007

2008

2009

2010
(target)(FY)

Registration rate is the ratio of Eco-Product sales to sales of all
products for which ecodesign is applicable.
*1 Product categories: Information and telecommunications
systems, digital media and consumer products*2 Product categories: Power systems, social infrastructure andindustrial systems, high functional materials and components
and others

Increase in Eco-Product Sales

50 55

%
% in fiscal 2010
Goal
Performance In fiscal 2009, the sales ratio rose to 53 percent, clearing the fiscal 2009 goal of 48 percent. As it also topped the fiscal 2010
goal of 50 percent, the fiscal 2010 goal was raised to 55 percent.

(%)
60
53
50

40

Eco-design Directive: A framework directive on the ecodesign of energy-related products(EU Directive)
Energy efficiency standard achievement rate: Based on the Act on the Rational Use of Energy (also known as the energy saving law), this value indicates the rate of achievement forenergy efficiency targets of certain home appliances. The target values are defined using themost energy efficient products available at the time.
Environmental Efficiency of Hitachi Products based on Factor X

Hitachi Group
Corporate Sustainability
Report 2010

5,741

20

We drew up the Hitachi Group Ecodesign Management
Guidelines to establish environmentally conscious design procedures for the development of both products
and services. Based on the IEC 62430 international standard on generic procedures for environmentally conscious design, the guidelines require divisions, such as
business planning, design, procurement, manufacturing,and quality control, to be environmentally conscious andkeep records on processes and results. Divisions thenincorporate these guidelines into their environmental
management and quality control management systems
based on the ISO 14001 and ISO 9001 international standards, pursuing product and service development in a
PDCA (plan-do-check-act) cycle. First, legal and stakeholder requirements are analyzed and specifications created for products with a minimal environmental burden(plan). This is followed by environmentally conscious
development and design using Hitachi’s DfE assessment
system (do), and then review and ongoing improvement(check and act).
†1

8,000

6,954

(55)
(50)

47
38

30
0

86

2007

2008

2009

2010
(target)(FY)N

Next-Generation Products & Services

Prevention of Global Warming
Looking for greater energy conservation and energy efficiency in our products

Making Products More Energy Efficien t

in product value by function and life span, using theamount of greenhouse gases emitted over the productlife cycle to calculate the reduced environmental load.
By raising the efficiency of global warming prevention, we
increase a product’s value and reduce greenhouse gas
emissions. In addition, the factor of global warming prevention indicates the amount of improvement in efficiencyof global warming prevention compared with a reference
product. Products with a factor of ten or more, or at least
ten times greater efficiency than reference products (fiscal 2000 products), are designated Super Eco-Products.

The energy used to power our products is an indirectcause of greenhouse gas emissions. We are helping toprevent global warming by cutting the amount of energy
used during product manufacturing and distribution. As
well, we are saving indirect energy by making our products more efficient and by reducing their power consumption by, for example, adding a power-saving mode.
We use DfE assessments (see page 85) for product andservice development and design. In this way, we make
improvements at all stages of the product life cycle, including manufacturing, shipping, and use.

Global Warming Prevention Factor Calculation

Improving the Efficienc y of
Global Warming Prevention

Definition of efficiency of global warming prevention
Product function
Product life span
Efficiency of Global
Volume of greenhouse gas emissions
Warming Prevention
throughout the product life span

To measure how effectively energy is used during a product’s life cycle, we introduced efficiency of global warming
prevention. This measurement is based on the concept ofenvironmental efficiency that balances the value of products contributing to the quality of life and the reductionof their environmental load. We gauge the improvement

Definition of factor of global warming prevention
Efficiency of global warming
prevention of evaluated product
Factor of Global
Warming Prevention
Efficiency of global warming
prevention of reference product

Energy Savings in Telecommunication Equipment

Hybrid Drive Systems: Energy Savings for Train Engines

1 Product: Dynamic Power Saving System (AX6700S series,
AX6600S series and AX1240S series LAN switches*1)

1 Product: Hybrid Active Shift Transmission (HAST drive) for
train engines

ALAXALA Networks Corporation

Hitachi Nico Transmission Co., Ltd.
(jointly developed with Hokkaido Railway Company)

1 Environmentally conscious feature: A power-saving function
dynamically regulates energy used by networks

1 Environmentally conscious feature: Regenerative braking captures the energy from braking and stores it to be later fed backthrough the transmission to assist the engine, saving energy andboosting performance
1 Environmental load reduction: Recovered energy is used when
the train accelerates, cutting fuel consumption

p Controls performance and cuts the amount of power used
p Cuts power to areas not in use without affecting communications

1 Environmental load reduction: Power consumption is deliberately reduced when network traffic is low (at night, on holidays, etc.)
1 Third-party evaluation: Japan’s Ministry of Economy, Trade andIndustry (METI) Commerce and Information Policy Bureau Director-General’s Awards at Green IT Award 2009*2

p The engine stops running when the train stops, and the train uses only

the electric motor to start moving again, reducing noise

1 Third-party evaluation: Environmental Award at 36th Environment Prize*1*1 A communication device that exchanges multiple
data simultaneously based on destination information within local area networks*2 Awarded to IT products and services with outstanding energy savings (organized by the Green IT Promotion Council, backed by METI)*1 Awarded for outstanding achievements in R&D, studies, and other research
related to sustainable development that reduces the environmental load(organized by the Hitachi Environment Foundation and Nikkan Kogyo
Shimbun, Ltd., and backed by the Ministry of the Environment)

87

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Next-Generation Products & Services

Conservation of Resources
We are recycling resources and making products more resource efficient

Recycling Resources and Making Products
More Resource Efficien tof their environmental load. This measure also guides us
to improve product value by function and life span; wegauge the amount of resources used over the productlife cycle†1 to calculate the reduced environmental load.
By working to boost resource efficiency, we increase product value while promoting resource conservation. In addition, a resource factor is used to indicate the amount of
improvement in resource efficiency compared with a reference product. Products with a factor of ten or more, or atleast 10 times greater efficiency than reference products(fiscal 2000 products), are designated Super Eco-Products.

Most natural resources not consumed as energy or food areused as materials for products and services, and later discarded.
To conserve resources, we reduce the amount usedduring production by making smaller and lighter products (resource reduction) and reduce waste by lengthening product life cycles (longevity). At the same time, we
use recycled resources or parts and materials that can bereused or recycled (recyclability), and make products sothat materials and parts can be easily reused or recycled(ease of disassembly and disposal). We use DfE assessments (see page 85) to monitor and improve conservation during all stages of the product life cycle, including
manufacturing, shipping, and use.

Resource Factor Calculation
Definition of resource efficiency
Product function
Resource Efficiency

Boosting Resource Efficienc y

Product life span

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

Definition of resource factor

We measure resource efficiency to evaluate how effectively resources are being used during the product life
cycle. This measurement is based on the concept of environmental efficiency that balances the value of products contributing to the quality of life and the reduction

Resource Factor†1

Resource efficiency of evaluated productResouce efficiency of reference productAmount of resource use over life cycle: Newly used resource amount + discarded resource amount
Product and package recycling

Reducing the Environmental Load of Small Batteries
1 Product: Small batteries (alkaline and lithium-ion batteries, etc.)
Hitachi Maxell, Ltd.

1 Environmentally c onscious f eatures: Developing innovativesmall battery technologies opens the way for products with alower environmental loadp Silver oxide batteries

A battery with no mercury or lead that is made using anti-corrosion technology based on a corrosion-resistant zinc alloy and a new electrolyte solution
p Alkaline batteries
Expiry date is extended—from two to five years—by a proprietary additive and conductive agent
An anti-leak design*1 boosts AA and AAA battery reliability
p Lithium-ion batteries
A proprietary electrode technology and new materials cut size by around33 percent (compared with similar batteries in 2000)
A new electrode uses less lithium and cobalt*1 Overdischarge electrolyte leak-proof design using patented technology*2 Awarded for the development of products, services, and technologies that
contribute to a sustainable material-cycle society, environmental protection, and business (organized by Fujisankei Communications Group, andbacked by METI; the Ministry of the Environment; the Ministry of Education,
Culture, Sports, Science and Technology; and the Ministry of Land, Infrastructure, Transport and Tourism)

1 Environmental load r eduction: Reducing a battery’s size andextending its life cuts down on resources used and reduces waste
1 Third-party e valuation: Minister of
Economy, Trade and Industry Award at
the 19th Global Environment Awards*2

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Next-Generation Products & Services

88

N

Next-Generation Products & Services

Preservation of Ecosystem
We are determined to control and reduce the amount ofharmful chemical substances contained in products

Controlling Chemical Substances
Contained in Products

In July 2009, we linked this management system tothe cross-industry JAMP†3 information exchange platform
via Hitachi’s enterprise cloud service TWX-21.†4 The directconnection between customer and supplier databases
has opened the way for fast, efficient information gathering and communication across the entire supply chain.
At the end of March 2010, chemical substance information for 740,000 parts and products was registered in our
integrated management system.

As one corporate initiative to protect the ecosystem andmaintain biodiversity, we need to both consider the impact of manmade chemicals on biodiversity and manage
the risks.
To control the chemical substances contained in
products, we created Regulations for Environmental
CSR-Compliant Monozukuri in 2005. This helps us to manage chemical substances—across the product life cyclefrom development and design to procurement, production, use, and disposal. To voluntarily control chemical
substances, we defined 13 prohibited substances (Level
1) and 12 controlled substances (Level 2) and createdguidelines for their control and handling.
To manage the risks, we comply with REACH,†1 achemical substance regulation in Europe, and we revised our regulations and product information gathering
procedures in 2008. In fiscal 2009, we added potential
REACH SVHC†2 to our voluntarily controlled chemical
substances, strengthening our management structure.
We identified chemical substances used in the HitachiGroup, from raw materials to end products, that should
be controlled, and created a mechanism to collect, examine, and communicate information across the supply
chain from procurement to production, shipping, andsales, in and outside Japan.

Registration database
Managing the amountof designated chemical
substances containedin a product by material
and part

Collection database
Managing the total
amount of designatedchemical substances byproduct and business

TWX-21

Disclosing environmental information Customers/society

Integrated Management System
for Chemical Substances Contained in Products

Communicate

Reduction of Risk management
Design forGreen
Environment procurement environmental (individual products
burdentraceability)(DfE)

Survey/register

Environmental information

Suppliers

Integrated Management System
for Chemical Substances Contained in Products

Survey/register, communicate

JAMP information exchange platform (JAMP Global Portal)

Materials
manufacturers

Parts
manufacturers

Final productmanufacturers

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

Covering the Entire Supply Chain

Working closely with suppliers and customers, we havebeen using and improving the Integrated Management
System for Chemical Substances Contained in Products,
created in 2005, as a way to gather and send out information about chemical substances across the supply chain.

†1
†2
†3
†4

REACH regulation: Registration, Evaluation, Authorisation and Restriction of Chemicals (EU)
Potential REACH SVHC: More than 2,000 substances that are persistent and bio-accumulativeor that have toxic or endocrine-disrupting properties
JAMP: Joint Article Management Promotion-consortium
TWX-21: Cloud-based business service providing an intercompany e-marketplace

Hitachi Group’s Voluntarily Controlled Chemical SubstancesClassification

Application

Substance (Group) Names

Level 1
Prohibited
substances

Chemical substances that the Hitachi Group prohibits from being included
in procured products (chemical substances banned or restricted for use inproducts (including packing materials) by domestic or foreign regulations
and potentially used for procured products for the Hitachi Group)

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

Level 2Controlled
substances

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

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

89

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Next-Generation Products & Services

Super Eco-Factories & Offices

We are reducing the environmental
burden created by our business activities
We are working hard to reduce the burden on the global environment
created by our own business activities.
We are rigorously cutting CO2 emissions to help prevent global warming,
reducing the amount of waste generated, using water resources more effectively,
and sharply decreasing emissions from chemical substances.
Targets and FY 2009 Results
Target1

Reduce CO2 emissions

2

Reduce waste volume

3

Reduce chemical
substance emissions

ResultReduced

21

5

Japan
% in and% outside Japan

30%
ReducedFurther info

68

*1

reduction*2

14%

Japan
%in and

p.92

p.94

outside Japan*3

p.96*1 Total emission reduction rate for Japan (from fiscal 1990), reduction rate per unit of production for outside Japan (from fiscal 2003)*2 Total reduction rate obtained from the sum of both groups: total-waste reduction group (33% cut from fiscal 2000) and waste-per-unit-production reduction group (24%cut from fiscal 2000)*3 Reduction rate of total VOC emissions for Japan (from fiscal 2000), reduction rate of VOC emission ratio (emissions/total volume of VOCs handled) for outside Japan (fromfiscal 2005)

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Super Eco-Factories & Offices90Super Eco-Factories & Offices

Super Eco-Factories & Offices

S

We promote the creation of pioneering facilities that reduce the environmental burden

Promoting Super Eco-Factories & Offices

Information on initiatives and environmental technologies at Super Eco-Factories & Offices are sharedwithin the Group to encourage environmental activities.

To reduce the environmental burden of business activities, a Super Eco-Factory & Office certification is given to
facilities that show a high level of environmental consciousness and take pioneering steps in this area. We
certify those facilities as Eco-Factories & Offices that have
met their targets for the fiscal year under our GREEN 21
system for comprehensively evaluating environmental
action (see page 81). Facilities that have achieved anindustry-leading environmental load reduction basedon criteria such as energy efficiency, improvements inresource recycling, and chemical substance emission reduction are designated Super Eco-Factories & Offices. In
fiscal 2009, seven more facilities were named Super EcoFactories & Offices, bringing the total to 32.

Super Eco-Factory & Offic e Certification Criteria

Super Eco-Factories& Offices
Facilities that have met
their targets for the fiscal
year under the GREEN 21
evaluation system

Eco-Factories& Offices

Certified as achieving industry-leading environmental load reduction
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 meettargets)

Offices and Factories

Examples of Super Eco-Factories

Energy conservation and resource recyclingin train car manufacturing and shipping

Kasado Works, Industrial & Social Infrastructure Systems Company,
Hitachi, Ltd.
Kasado Works in Kudamatsu City, Yamaguchi Prefecture, develops andmanufactures train and bullet train bodies for Japanese and internationalcustomers. By adopting friction stir welding technology for assembling
train cars, this plant has cut the amount of power used for welding by morethan 40 percent. The introduction of a high-speed cutting technology led
to less oil-based paint being used, as well as reduced VOC emissions. In
addition, all the water used during train car waterproof testing—about 120
tonnes a month—is recycled. Since fiscal 2004, all the plant’s waste is being
recycled in some way.

Main Works, Tohoku Rubber Co., Ltd.
A manufacturer of escalator handrails, rubber sheets and other synthetic
rubber products in Sendai City, Miyagi Prefecture, Japan, Tohoku Rubber’s
Main Works has been conserving energy by, for example, installing solar
power generation equipment and introducing ice thermal storage for air
conditioning. In particular, boilers using emulsion fuel—heavy oil, water,and emulsifiers combined—to boost fuel efficiency, have cut the plant’s
heavy oil consumption by 80 kiloliters per year from fiscal 2005. The plant’s
final waste disposal rate has also been trimmed to 0.7 percent throughpractices such as the thermal recycling of rubber waste.

Designated an Environmentally Friendly Enterpriseby Tianjin City, China in 2006

Solar power (maximum output 10 kW) is used at the plant

Hitachi Building Equipment Manufacturing (Tianjin) Co., Ltd.
Hitachi Building Equipment Manufacturing (Tianjin) makes elevators in
Tianjin City, China. In 2006, the Baodi District Environmental Protection
Bureau in Tianjin City named the company an Environmentally Friendly Enterprise, a designation given to model companies that achieve a balance
between the environment and the economy. The company has reduced
VOC emissions by using water-based paint for large parts and has upgraded the painting process. They have also switched from liquefied petroleum
gas to natural gas, improving plant energy use per unit of production by 9
percent in fiscal 2009.

91

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Super Eco-Factories & OfficesPrevention of Global Warming
We are working to curb greenhouse gas emissions in plants and offices and in transportation

Reducing Greenhouse Gas Emissions

Fuel Switching Initiative

Our sustained investment promotes energy conservation, and we employ highly effective CO2 emission reduction measures in Group operations worldwide. Forenergy conservation diagnoses, Group engineers withadvanced, broad knowledge of equipment (air conditioning and boilers, for example) diagnose energy use andpropose improvements. We are also cutting greenhousegas emissions other than CO2 by switching to gases withlow global warming coefficients and installing scrubbers.
And we participated in a government program—Experimental Introduction of an Integrated Domestic Market
for Emissions Trading—meeting fiscal 2008 targets andhelping to identify issues.

We have been switching to natural gas (town gas, LNG)
for materials processing, where heavy fuel oil was used.
This will cut CO2 emissions by around 30 percent by fiscal
2012, and we plan to reduce heavy oil use to below 10
percent (from fiscal 2005).
Trends in Fuel Use Ratios

FY 200526%

FY 2009

Heavy oil

Kerosene

49%

17%
9%

11%

FY 2012 (planned)

Town gas Liquefied petroLNG*
leum gas (LPG)

48%

12%

22%
17%

74%

11%

4%

Trend in Energy Conservation Investment in JapanFY 2007

FY 2008
6.4* Liquefied Natural Gas

FY 2009
7.7

5.2

Reducing the Energy Usedin Offices and Other Business Operations(billions of yen)

We have business operations, such as design offices, data
centers, business offices, and hospitals, that together account for around 13 percent of our total CO2 emissions.
We are promoting rational energy use—to comply withJapan’s amended Act on the Rational Use of Energy, in
effect in fiscal 2009—by developing common management standards for the 10 operation types subject toregulation. A newly built database system also collects
data on energy use for each type. These steps enable us
to gauge energy use in each operation type, to analyze
inspection results, and to make improvements.

Renewable Energy

We are introducing wind and solar power, and otherrenewable energy sources. In fiscal 2009, the Narashino
Division of Hitachi Industrial Equipment Systems installed a 100-kW solar power generator. Now, Group solar power has risen
to 1,156 MWh and wind power to 81.7
MWh. We also buy Certification ofGreen Power for 1,000 MWh of naturalenergy every year from Japan Natural
Energy Company, using this power for
general shareholders meetings, fairs, Green Power symbol
on Certification ofand some offices.
Green Power

Energy Management System

Management standards• Equipment inspection
standards• Inspection records

Introducing Energy Efficient Systems

Since we build transformers, air compressors, lighting,and other plant equipment, we are making them energy
efficient and introducing them into our plants. We also
use our environmental businesses to cut CO2 emissions,collaborating with our energy service company (ESCO)
division, a provider of comprehensive energy conservation services, to promote co-generation systems.†1

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Super Eco-Factories & Offices

Plan
Create an energy
conservation plan

92

Do
Inspect, maintain andrepair facilities
Adjust and manage
devices

Visualization(Evaluation)

Check & Act
Record inspection
results
Measure energy use

Super Eco-Factories & Offices

S

Goals & Results

Reducing CO2 Emissions
from Transportation

Reducing CO2 Emissions in Japan

12

Since we manufacture and ship a variety of products—
ranging from large power plants to mass-produced items
such as home appliances, we are improving transportation effectiveness by reducing size, weight, and packaging to improve truck load efficiencies. We also have mademodal shifts: utilize more railways than road transportation for heavy products such as dry cells, and ships forlarge products assembled at the plant that were truckedin lots before.

% reduction in fiscal 2010 (from fiscal 1990 levels)
Goal
Result In fiscal 2009, we reduced CO2 emissions by 21 percent fromthe fiscal 1990 level, clearing the year’s goal of 12 percent. This wasachieved through steps such as switching from heavy fuel oil to natural gas and by making furnaces more energy efficient.

(kt CO2)

4,000

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

(%)
100

100

88

(88)
79

80

2,600

60

3,294
2,893

3,000

2,000

Trends in Transportation Mode Ratios in Japan

40

1,000

20

1990

2008

Truck

Air

3.3% 6.2%

90.1%

0.4%

4.8% 10.7%

84.4%

0.1%

FY 2009

0
2010
(FY)
(target)Emissions were calculated using CO2 emission coefficients for each electric powercompany, as published by the Ministry of the Environment
0Rail Marine
FY 2006

2009

Goals & Results
Reducing CO2 Emissions from Domestic Transportation

11

Reducing CO2 Emissions outside Japan% reduction in fiscal 2010
Goal
(Rate of transportation energy consumption per real unit of output
from fiscal 2006 levels)
Result In fiscal 2009, we improved CO2 emissions per unit from domestic transportation by 26 percent over 2006 levels, clearing theyear’s goal of 10 percent. The effect of a modal shift to ship-borne
transportation in particular helped to reduce CO2 emissions.

5

Goal % reduction in fiscal 2010(per unit of production from fiscal 2003 levels)
Result In fiscal 2009, we reduced CO2 emissions by 5 percent fromfiscal 2003 levels, clearing the year’s goal of 4 percent. Building a newplant in China pushed up emissions, but energy-saving diagnoses
helped to improve overall energy efficiency.

(kt CO2)

China
Europe(%)
Asia (excluding China)
North and South America
CO2 emissions per unit production(target values are in parentheses)

2,000

100

100

1,242
20

96.7

95

1,419
4

1,397
6

416

(95)

200

554

40

74

50

128

100
510

339

0

514
2003

100

(89)

155

150
60

90

188

80

361

(%)

CO2 emissions
The rate of transportation energy consumption
per real unit of output(target values are in parentheses)
100

369

1,000

0

(kt CO2)

489
2008

20

476
2009

2010
(target)

(FY)

2006

2008

2009

2010
(target)

(FY)

0

0

†1

93

Co-generation system: Energy-saving system making effective use of waste heat for
power generation

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Super Eco-Factories & Offices

Conservation of Resources
We promote the efficient use of waste and water

Using Waste and Valuable
Resources Efficien tly

waste type, disposal method and disposal completion,and that can also register the e-manifests†3 promoted by
the government to prevent inappropriate disposal. We
have bolstered our mechanisms for ensuring appropriate
waste disposal, with the system now issuing a warning if
there are mistakes in a manifest or if disposal completioncannot be completed. A function has been added forcollating data on waste volume, disposal methods, anddisposal volume from electronic manifest information to
boost operational efficiency and promote resource recycling. We are also working to increase e-manifest use
within the Group.

The Hitachi Group is reducing and recycling waste materials generated during manufacturing, including valuable
resources (reusable resources with residual value).
To use resources without generating waste, we are
reusing resources from the manufacturing process by recycling material residue as raw resources or filtering cleaning oil for reuse. These technologies and measures areshared across the Group to reduce the amount of waste.
We also aim to recycle waste into resources rather
than disposing of it in landfills. Using the Group’s 3R load
index to assess the environmental load incurred in waste
disposal, we are developing technologies and applications to promote reuse and recycling. Our initiative toboost the number of zero emission†1 sites that have minimized landfill disposal now has 163 facilities achievingthat status in fiscal 2009 (up 14 from the previous year).

Waste Management System
Input waste information• Type, volume• In-house disposal data, etc.

Promoting Appropriate Disposal* Japan Waste Network,
operated by the Japan Industrial
Waste Technology Center

We have developed a waste management system thatelectronically records information from manifests†2 on

3R Load Concept

Energy for refining

Input

Materials

Waste disposal

Manufacture

Reuse

Energy forrecycling

Energy forincineration

Energy forincineration

Energy forusing landfills

Recycling

Heat recovery

Simpleincineration

Landfill disposal

Heat energy
recovered

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Super Eco-Factories & Offices

JWNET*
E-manifest registration

The 3R load is the expected environmental load from waste disposal. The smaller the environmental load, the more resources are being recycled. The following are totaled for each waste
type and disposal method:[1] Energy used in refining natural resources into materials[2] Energy used in waste disposal[3] Heat energy recovered through waste recycling and reduction in refining energy

Natural resources

Refining energy
saved• Collate and analyze waste disposal
volume• Print and issue manifests• Manage manifest recovery period

94Super Eco-Factories & Offices

S

Goals & Results

Water Resource Conservation

Reducing Waste Generated

To reduce our water consumption, we are recovering andrecycling water used during manufacturing or reusing it
for non-technical use. A particular focus is the application of the Group’s reduction initiatives to outside Japan
where water resource conservation is an issue.

25

Goal
% reduction in fiscal 2010 (from fiscal 2000)
Result In fiscal 2009, the total-waste reduction group achieved a 33
percent reduction from fiscal 2000 in the amount of waste generated,
and the waste-per-unit production reduction group achieved a 24
percent reduction, meeting the year’s goal of a 24 percent reduction.

(kt)EuropeAmericas
China
Asia
Japan

Reduction rate for total-waste
reduction group
Reduction rate for waste-per-unitproduction reduction group

Goals & Results
Reducing Water Use outside Japan10% reduction in fiscal 2010 (from fiscal 2005)
Goal
Result In fiscal 2009, we cut our water use outside Japan by 20 percent from fiscal 2005, clearing the year’s goal of 8 percent. Particularly
in China, recycling and reuse efforts reduced water use, despite therise in production volume.

100

100
76

1,000
863

(%)

1
101
38
63

737

(million m3)

67
53
59
61

500
660

80

(75)

608 1
38
51
54

564

EuropeNorth andSouth America

60
20
40

84

3.83
0

2000

2008

2009

2010
(target)

(FY)

0

10

6.30

10

0

% improvement in fiscal 2010 (from fiscal 2005)
Goal
Result In fiscal 2009, we boosted our resource recycling rate in Japanby 19 percent from fiscal 2005, clearing the year’s goal of an 8 percent
increase. Waste generation reduction was a major contributor to thehigher rate.

3R loadResource recycling rate
Figure in parentheses is target level
17

4,000
3,000

11.75
0.01
2.56

4.80

4.94

60

2005

40
20

4.90
2008

4.24
2009

2010
(target)

(FY)

0

10
0

2,913
2,342

†1

2,000

†2

1,000

†3
2005

12.27
0.02
2.55

20
(10)

2,401

0

80

80

(%)

19

0

(90)

4.58

Boosting the Resource Recycling Rate†4 in Japan(terajoules)

Trend in water(%)
use reduction rate
(target values inparentheses)
100

100
14.73
0.02

20

464

China
Asia

2008

2009

2010
(target)

(FY)

†4

95

Zero emission: Defined as a final disposal rate (landfill disposal/waste) of no more than 1
percent and less than 5 tonnes of final waste in any given year
Manifest: An evidence document for industrial waste management issued by waste generators and relayed along the waste stream to ensure appropriate disposal
Electronic manifest (e-manifest): Mechanism for centralized management of digital manifests, with waste generators and waste disposal companies sharing relevant information
Resource recycling rate: Calculated as (base year 3R load minus subject year 3R load) divided
by base year 3R load
Zero emission sites

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Super Eco-Factories & Offices

Preservation of Ecosystem
We are managing chemical risk and reducing emissions

Goals & Results

Effective Chemical Risk Management

Reducing VOC Emissions in JapanTo deal with chemical risk and comply with laws andregulations, we assess chemical substances, managing
risk in three ways: prohibition, reduction, and control. We
operate an online database for chemical substance management called CEGNET, using it to check on applicablelaws and regulations and our own voluntary regulations.
We collect and aggregate data on chemical substances:amount used, emitted or transferred. This information
helps to reduce chemical emissions. We also regularly
educate chemical substance managers.

50% in fiscal 2010 (from fiscal 2000 levels)
Goal Reduction of
Result In fiscal 2009, we reduced VOC emissions by 68 percent fromfiscal 2000, exceeding the year’s goal of 49 percent. Hitachi Cable’s
Tsuchiura Works installed equipment to adsorb, recover, and reuse
VOCs emitted during its copper product cleaning process, cutting
emissions into the atmosphere by 53 percent over the previous year.

VOC emissions
VOC reduction rate trend(targets are in brackets)
100

(kt)

(%)

100

15
11
10

The CEGNET Chemical Substance Management System

5

Chemical information management server
Regulatory/voluntary
control information

40

Chemical data
Network

New chemicalrisk searches

(50)
38

2003

2008

50

32
3
2009

2010
(target)(FY)

0Registration ofamounts handled
Data collation
Reducing VOC Emissions outside Japan10% in fiscal 2010
Goal Reduction of(Rate of reduction of emissions into the atmosphere†2 from fiscal
2005 levels)
Result In fiscal 2009, we cut the VOC emissions ratio by 14 percent
from fiscal 2005, surpassing the year’s goal of 8 percent. In China, weinstalled VOC recovery equipment in new plants to reduce the emissions ratio there.

Production facilities

Reducing Chemical Substances
To prevent air pollution, we cut emissions of 41 volatileorganic compounds (VOCs) based on a program of the
Ministry of the Environment. We improve manufacturing
processes to introduce VOC alternatives and install equipment to recover and render them harmless. We comply
with Japan’s PRTR Law†1 through Group-wide monitoringof chemical substances released into the atmosphereor into public waters, or transferred outside our plants
as waste, or discharged into sewage systems, reporting
this to local Japanese governments. Although very small
quantities need not be reported, our policy is to keep
data on all PRTR substances, provided the amount is 10
kilograms or more per year, so that we can control thesesubstances as well.
†1
†2

(t)

86
68
1,500

1,000

500

0

Hitachi’s
Environmental
Conservation

Super Eco-Factories & Offices

96

(90)

76
51

57

50

VOCs
VOCs
VOCs
handledhandledhandled
1,020
1,005
1,017
13
26 VOC10
46 emissions 44
41
VOC
VOC
695
emissions15
518
356 emissions
577
33
523
452
7
9
29
285
37
273
189
607
502
427
362
288
268
2005

(%)

100

100

PRTR Law: Pollutant Release and Transfer Register Law
Reduction in emission ratio: The percent difference between the 2005 emission ratio and theemission ratio in the subject year. The emission ratio is calculated as VOC emissions divided bytotal volume of VOCs handled.

Hitachi Group
Corporate Sustainability
Report 2010

EuropeAsia (excluding China)
North and South America
China
Trend in reduction of emissions ratio
Trend in VOC emission ratios(Target values are in parentheses)

2008

2009

0

2010 (FY)(target)Super Eco-Factories & Offices

Environmental Load Data Generated through Business Operations

S

This chart shows resource inputs and the environmental load for Hitachi Group business activities in fiscal 2009.

Total Output of Environmental Load

Total volume of products manufactured: 2,796 kt (in Japan);
488 kt (outside Japan)

Total Input of Resources
Total Energy Input

Greenhouse Gas
EmissionsElectricity
82%
In Japan73%

CO2 emissions
97%
In Japan
66%

OutsideJapan
Greenhouse gases (GHGs) 34%
4,115 GWPkt

Gas
Total energy consumption Outside 12%Japan(crude oil equivalent)
27% Fuel oil 6%
1.87 million kl
In Japan
Electricity

Outside Japan

In Japan Outside Japan
CO2 emissions

4.4 billion kWh 1.7 billion kWh

2,600 GWPkt†1

1,397 GWPkt

75 GWPkt

0

100 million m3

24 million m3

Other GHGs
SF6 (sulfur hexafluoride)

LPG

38,000 t

25,000 t

PFCs (perfluorocarbons)

23 GWPkt

0

Fuel oil (heavy oil, kerosene, etc.)

95,000 kl

14,000 kl

HFCs (hydrofluorocarbons)

16 GWPkt

4 GWPkt

Gas
Town gas, LNG

Total Input ofMaterials

Total Volumeof Waste
Generated

Plastics Rubber
7%0%Metals54%
In Japan
57%
Materials
3,029 kt

Other
Outside 39%
Japan
43%

Recycling75%
In Japan76%

Waste
reduction
15%

Waste generated
608 ktOutsideJapan Final disposal
24%
10%

In Japan

Outside Japan

Metals

1,087 kt

529 ktWaste reduction

30 kt

51 kt

Plastics

165 kt49 kt

Recycling

409 kt55 kt

Rubber8 kt

1 kt

Volume reused

64 kt

–

461 kt729 ktVolume of material recycled

315 kt–Volume of thermal (heat) recycled

30 kt

–

Final disposal

25 kt

38 kt

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

2.5 kt0.8 ktSOx (sulfur oxides)

45 t

11 t

NOx (nitrogen oxides)

460 t

29 t

6t
(0.3 ODPt†3)–

Other materials
Chemical substances
Handling volume for chemical substances covered
under the PRTR Law†2

142 kt17 kt

Handling volume for ozone-depleting substances

7.1 t

–

1,311 t–Handling volume for greenhouse gases

In Japan Outside Japan

Volume of discharge for ozone-depleting substances

Total Water Input

Total Volume ofWastewaterIndustrial water45%
In Japan81%
Surface water
17%

†1
†2
†3

Other 3%Groundwater
38%

Water used
68.47 million m3

Public waters
69%

Volume of water reused
In Japan: 16.22 million m3
Outside Japan: 1.98 million m3

OutsideJapan
19%

Sewagesystem28%

In Japan81%
Wastewater
60.60 million m3

Outside Underground
Japan infiltration, etc.
19%
3%

In Japan

Outside Japan

In Japan

Outside Japan

Surface water

6.29 million m3

5.07 million m3

Public water

39.18 million m3

2.8 million m3

Industrial water

26.91 million m3

3.94 million m3

Sewerage system

8.55 million m3 8.41 million m3

Groundwater

23.52 million m

2.74 million m

Undergroundinfiltration, etc.

1.45 million m3 0.21 million m3

3

3

Water quality
BOD (biological oxygen demand)

263 t

308 t

COD (chemical oxygen demand)

193 t

693 t

Global Warming Potential: Coefficient derived by converting the global warming potential into CO2 equivalent tonnes
The 354 chemical substances covered under Japan’s PRTR Law
Ozone Depletion Potential: Coefficient derived by converting the global depletion potential into trichlorofluoromethane (CHC-11) equivalent tonnes

97

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Super Eco-Factories & Offices

Worldwide Environmental Partnerships

Hitachi pursues open
environmental activities
We disclose information on our environmental activities
to deepen stakeholders' understanding and use two-way communication
to enhance that action, while working to protect the environment
through our business operations

Targets and FY 2009 Results
Target1

Widely communicate information
on environmental activities

2

Build environmental partnerships

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Worldwide Environmental Partnerships

ResultCommunicate through a media mix, including our

Web site, advertising, and exhibitions

partnershipwith suppliers and local residents
Promote environmental protection in98

Further info

p.99

p.101

Worldwide Environmental Partnerships

Environmental CommunicationW

We use information disclosure and dialogue to build two-way communications

Communicating
Environmental Information

Outside Japan, Hitachi participated in the World Energy
Engineering Congress 2009, one of the largest U.S. expositions on saving energy and new energy sources, as well as
the Business on Rails Exhibition & Conference in Brazil, focusing on environmentally conscious urban transportation.

We publish reports every year on our environmental
protection initiatives, their results, and our plans. From
2008, in addition to the Hitachi Group Corporate Social
Responsibility Report, we issue the Hitachi Group Environmental Sustainability Report to enhance environmental
information disclosure. The various Hitachi business sites
and Group companies also issue reports. Our Web site
has information on environmental exhibitions, TV commercials, newspaper advertisements, and environmental
awareness in key Group products, as well as the ideas of
their developers.
In fiscal 2009, our TV
commercial on next-generation smart grids won theoutstanding performance
prize in the environmental
TV commercials categoryof the 13th Environmental
Communication Awards.

Eco-Products 2009 (December 2009, Japan)
We exhibited a model of a power generation system with less CO2 emissions,as well as hybrid rail and other cutting-edge technologies and services. About
20,000 people visited our booth over three days.

Environmental Activities pageon Hitachi’s Web site

Promoting Dialogue
Our dialogues with stakeholders not only deepen theirunderstanding of our environmental activities but also
give us opportunities to listen to their opinions and concerns about improving that action.
WEEC 2009 (November 2009, U.S.A.)
Featuring a wind power generator, a factory energy management system, andair conditioners with outstanding energy-saving performance, our booth received many government and corporate visitors.

Participation at Exhibitions

We have participated in the Eco-Products Exhibition—
the largest on environmentally conscious products inJapan—every year since the first one in 1999. In fiscal
2009, we featured 20 environmentally conscious products and services in the energy, mobility, IT, home, andmaterial zones based on achieving a sustainable society
through social innovation business.
Around 2,300 visitors, or about 81 percent, responding to a questionnaire said that their opinion of ourenvironmental activities had risen since viewing the exhibition. They also called for action and for initiative inrealizing a low-carbon society.

Dialogue with Stakeholders

We held a dialogue meeting with stakeholders in Belgium
in September 2009 on our European environmental business, briefing participants on our environmental strategy,
as well as our rail and thermal power plant businesses
in Europe. We also exchanged views on stakeholders’expectations, which included a clear indication of thesocial benefits and the costs of environmental technologies and a demonstration of environmental leadership
by Hitachi.

99

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Worldwide Environmental Partnerships

Environmental Communication

Responding to External Evaluationsof the world’s leading companies. We participate in the
CDP, submitting environmental strategies and greenhouse gas emission data. In fiscal 2009, we were selected
out of 500 Japanese companies assessed by the CDP as
one of the 31 components of the Carbon Disclosure Leadership Index for our outstanding information disclosure.

To ensure that stakeholders receive the information thatthey require, we cooperate with socially responsible investment†1 ratings and other environmental surveys. We also
apply for awards as a means of energizing our activities.
Selection as a DJSI World Component

Boosting the Reliability ofEnvironmental Information

The Dow Jones Sustainability Index World (DJSI World)
is a stock index created by U.S.-based Dow Jones andSwiss-based Sustainable Asset Management (SAM) toassess the sustainability of 2,500 companies around theworld based on their economic, social and environmental performance. In fiscal 2009, Hitachi was one of the 317
companies (including 32 Japanese) selected as a DJSIWorld component. We were rated particularly highly forenvironmental initiatives, outscoring other companies
with a high 85 (against an average of 38).

In April 2009, one of our group companies was found tohave misrepresented facts concerning its refrigerators. To
prevent such incidents from recurring, our proceduresfor handling product environmental information havebeen clarified and checking systems were improved.
Moreover, an advisory group on the product environmental information and expression was established inJuly 2009, including two external eminent figures. This
group regularly audits product environmental information by checking the procedures at Group companies,
and discusses improvements to product catalogs from a
consumer perspective. Through these initiatives, we willcontinue to boost the reliability of Hitachi Group environmental information.

DJSI logo

CDP Evaluation and Selection†1

Backed by 475 institutional investors with 55 trillion dollars in combined assets under management, the Carbon
Disclosure Project (CDP) assesses the potential risks andopportunities that climate change poses for around 3,700

Enhancing Environmental
Communication

An approach to investing where shares are selected partly on the basis of criteria relating to CSR
CSR/environmental reports published by Hitachi Group companies
List of environmental exhibitions
External environment awards

External Advisors, Advisory Group on the Product Environmental Information and Expression
Yukiko Furuya, Board Member, Nippon Association of Consumer Specialists
Hideto Kawakita, CEO, International Institute for Human, Organization and the Earth

Corporate communication must be sufficiently clear to avoid misunderstandings, andmust represent corporate philosophies andactivities in a way that responds to consumer
expectations and wishes. We urge the HitachiGroup to go beyond the proposal and provision of new environmentally conscious social
structures and lifestyles to also demonstrate

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Worldwide Environmental Partnerships

100

leadership in communications, and to empower individual stakeholders to become
part of realizing a sustainable society.

Worldwide Environmental Partnerships

Building Environmental Partnerships

W

Cooperating with stakeholders to realize a sustainable society

Environmental Conservation
Activities with Suppliers

333 children on the themes of learning about the buoyancy of air from hot-air balloons and using magnets toclean water. Meanwhile, in Shanghai and Beijing, since
fiscal 2008, Hitachi (China) Ltd. employees have visited
kindergartens and elementary schools. The students
learned about global warming and putting environmental awareness into practice in their daily lives. As well, weare creating learning opportunities for children throughout Japan with hands-on demonstrations and classes,
and the themes are being chosen by the schools.

Procuring materials with a low environmental load in cooperation with suppliers is an essential element of developing environmentally conscious products. We drew up
the Green Procurement Guidelines to gain suppliers’ understanding and cooperation on environmental conservation and for developing and supplying products with alower environmental load.
Specifically, we ask suppliers to (1) conserve resources, (2) conserve energy, (3) aggressively pursue the threeRs,†1 (4) reduce the amount of packaging, (5) manage
chemical substances used in products, and (6) provide
clear information. For (1) to (4), we encourage conservation by presenting case studies and by exchanging proposals for cutting costs and improving quality. For (5), we
promote sharing of detailed information (see page 89).
To encourage environmental conservation by suppliers, we recognize suppliers which established environmental management systems with third-party
certifications as green suppliers.
In fiscal 2009, we launched the
New MMM Club,†2 exchanging information with the green suppliers on advanced environmental
technologies and environmental
regulations. We will continue torefine these environmental management techniques in cooperation with suppliers.
Green Procurement Guidelines

Employees in the United Arab Emirates hold a hands-on class, using
experiments to teach about water purification (Hitachi Plant Technologies, Ltd.)

Contributing to Environmental Education
We promote environmental education, in and outside
Japan, to raise children’s eco-awareness and to help
them better understand our environmental activities.
Since fiscal 2007, Hitachi Plant Technologies, Ltd.
has held an environment and science class, “Community Partnership Academy of Wisdom,” on themes suchas water management. In fiscal 2009, they held the firstenvironment and science classes outside Japan, mainlyorganized by their Middle East Regional Headquarters.
Instructors visited two Japanese and three elementary
schools in the United Arab Emirates, holding classes for

Explaining environmental activities to local children at a plant thathas wind and solar power generation facilities (Onuma Works, Hitachi
Engineering & Services Co., Ltd.)

†1
†2

101

Three Rs: reduce, reuse, and recycle
New MMM Club: An organization for exchanging information on environmental managementwith small and medium-sized suppliers who have acquired third-party certification in environmental management systems
Green Procurement Guidelines

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Worldwide Environmental Partnerships

Building Environmental Partnerships

Environmental Cooperation
with Local Communities

working with NGOs and NPOs that specialize in local environmental situations and activities.
To help protect biological diversity around the world,
we have been conducting, among other activities, surveys of the butterfly Reverdin’s Blue, an endangered species found near Mount Fuji, as well as planting trees to aid
in the recovery of ecosystems.

To conserve the environment as a global citizen, we
promote environmental beautification and natural conservation in and outside Japan by cooperating with
employees, their families, and local residents. We also
support local environmental conservation projects by

In cooperation with the NGO
Earthwatch Japan and guided by researchers, we havemade annual surveys of thelarvae and adult stages of
the Reverdin’s Blue butterfly
since 2007.

Activities to Protect Ecosystems
The United Nations Millennium Ecosystem Assessment
published in March 2005 states that the people of theworld depend on ecosystem services such as cleanwater and oxygen, marine and other food resources,
and a stable climate. However, as a result of rapid development, ecosystems are being quickly degraded.
To protect ecosystems and maintain biological diversity, society must reduce the environmental burden on
ecosystems and promote their recovery.
To protect ecosystems as a corporation, we consider it necessary to conduct our activities throughbusiness, through environmental management, andthrough conservation mindful of the natural environment. We are promoting activities in these three areas
in an integrated way.
As a member of the World Business Council for
Sustainable Development (WBCSD), Hitachi ChemicalCo., Ltd. has taken part in the development of Corporate Ecosystem Services Review (ESR) guidelines and isparticipating in the promotion of worldwide efforts toprotect ecosystems.

Contribution through businessSupply products and services that
protect the ecosystem through air,water, and soil purification.
See page 75

Contribution throughenvironmental management
Understand and reduce our burden on
ecosystems through business activities.

Hitachi’s
Environmental
Conservation

Worldwide Environmental Partnerships• Water treatment (ballast water purification systems, advanced sewage treatment
systems, etc.)• Air purification (denitrification catalyst
systems, etc.)• Soil treatment projects• Product chemical substance control systems• Controlling wastewater, controlling/reducing
the use of chemical substances• Using biological raw materials• Controlling greenhouse gas emissions,promoting resource recycling

See pages 89 and 96

Conservation activities
Help ecosystem recovery throughafforestation, etc.
See page 102

Hitachi Group Ecosystem Protection Activities

Hitachi Group
Corporate Sustainability
Report 2010

In cooperation with the NPO
G-Net, every year since fiscal 2005 we have assistedwith afforestation and othergreening projects in the
Horqin Desert in the Inner
Mongolia Autonomous Region of China.

102• Employees participate in tree planting• Protecting endangered species• Using trees and greenery at production sites
to their best advantage

Independent Review
To enhance the reliability of the data disclosed in this report, we have received
the review by Bureau Veritas Japan Co., Ltd.* on our fiscal 2009 performance.
* A certification agency providing inspection, audit and certification services in areas such as marine;building compliance; health, safety and the environment; systems; and consumer products

The standards, guidelines and calculation methods used in collecting data appear on
our Web site.

Calculation methods for environmental load data

Bureau Veritas Japan review report

103

Hitachi Group
Corporate Sustainability
Report 2010

Hitachi’s
Environmental
Conservation

Independent Review

Company Profile
Corporate Name
Incorporated
Head OfficeHitachi Group Profile
Hitachi, Ltd. and the Hitachi Group make up a corporate groupconsisting of 1,058 companies: 365 consolidated subsidiaries
within Japan and 535 outside Japan, as well as 71 equitymethod affiliates in Japan and 86 outside Japan. For businessactivities, there are eleven business units, as indicated on thenext page, with total revenues of about 9 trillion yen. The Group
employs about 360,000 employees.

Hitachi, Ltd.
February 1, 1920 (founded in 1910)
1-6-6 Marunouchi, Chiyoda-ku, Tokyo 1008280, Japan
Hiroaki Nakanishi, Representative Executive
Officer and President

Representative

Asia
Number of companies: 270
Number of employees: 99,216
Revenues: 1,699.0 billion yen

EuropeNumber of companies: 138
Number of employees: 9,488
Revenues: 824.6 billion yen

North America
Number of companies: 80
Number of employees: 14,667
Revenues: 729.6 billion yen

Japan
Number of companies: 366
Number of employees: 230,948
Revenues: 5,313.7 billion yen

Other Areas
Number of companies: 47
Number of employees: 5,427
Revenues: 401.2 billion yen

Economic Performance
As of March 31, 2010

Period: Fiscal year ending March 31, 2010
(consolidated basis)

Common Stock408,810 million yen
Number of employees (unconsolidated basis)
31,065
Number of employees (consolidated basis)359,746
Number of consolidated subsidiaries
900(Japan: 365, outside Japan: 535)
Number of equity-method affiliates
157(Japan: 71, outside Japan: 86)

Revenues

8,968.5 billion yen(90% compared with the previous year)
Operating income
202.1 billion yen(159% compared with the previous year)
Capital investment
546.3 billion yen(69% compared with the previous year)
R&D expenditures
372.4 billion yen(89% 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 by Industry Segment in Fiscal 2009 (billions of yen)

Revenues(billions of yen)

Operating income(billions of yen)
Revenues
Operating income

Others
763.6 (8%)

1,200

Financial Services
419.6 (4%)

1,000

Digital Media & Consumer Products
929.2 (9%)

8,000

800

6,000

600

Components & Devices
754.8 (7%)

12,00010,0004,000

11,226.7
9,464.8

256.0

2,000
0

2005

10,247.9

10,000.3
8,968.5

345.5
182.5
2006

2007

2008

202.1
2009 (FY)Power Systems
882.1 (9%)

Automotive Systems
638.8 (6%)

400
127.1

Information & Telecommunication
Systems
1,705.5 (17%)

High Functional
Materials & Components
1,249.3 (12%)

2000Social Infrastructure &Industrial Systems
1,250.2 (12%)
Construction
Machinery
583.6 (6%)

Electronic Systems &Equipment
998.6 (10%)
Total Sales by Industry: 10,175 billion yen
Consolidated Net Sales: 8,968 billion yen

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

Large disk array subsystem*

Power Systems

Social Infrastructure & Industrial Systems

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

Industrial machinery and plants, elevators,
escalators, railway vehicles and systems
Hitachi Industrial Equipment Systems Co., Ltd.,
Hitachi Elevator (China) Co., Ltd., Hitachi Building
Systems Co., Ltd., Hitachi Plant Technologies, Ltd.

Construction of ElectricPower Development
Company's Ohma Nuclear
Power Plant*

VX series escalator*

Electronic Systems & Equipment

Construction Machinery

Semiconductor and LCD manufacturing equipment,
testing and measurement equipment, medical
electronics equipment, power tools, electronic partprocessing equipment
Hitachi High-Technologies Corporation, Hitachi
Koki Co., Ltd., Hitachi Kokusai Electric Inc., Hitachi
Medical Corporation, Hitachi Via Mechanics, Ltd.

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

Hitachi High-Technologies’ device
characterization system

Hitachi Construction Machinery's hydraulic excavator

High Functional Materials & Components

Automotive Systems

Wires and cables, copper products, semiconductor
and display-related materials, circuit boards andmaterials, specialty steels, magnetic materials andcomponents, high-grade casting components andmaterials
Hitachi Cable, Ltd., Hitachi Chemical Co., Ltd.,
Hitachi Metals, Ltd.

Engine management systems, electric powertrainsystems, drive control systems, car information
systems
Clarion Co., Ltd., Hitachi Automotive systems, Ltd.,
Hitachi Automotive Products (USA), Inc.
Hitachi Auto Parts & Service Co., Ltd.
Hitachi Automotive Systems’ inverter
for hybrid vehicles

Neodymium-iron-boron
permanent magnet NEOMAX®

Components & Devices

Digital Media & Consumer Products

Hard disk drives, LCDs, information storage media,
batteries
Hitachi Displays, Ltd., Hitachi Maxell, Ltd., Hitachi
Display Device (Suzhou) Co., Ltd., Hitachi Global
Storage Technologies Netherlands B.V.

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

Hitachi Vehicle Energy’s lithium-ion battery
for plug-in hybrid electric vehicles

Financial Services

FLEXMULTI, Hitachi Appliances’ multi-split
air-conditioning systems for buildings

Others

Leasing, loan guarantees
Hitachi Capital Corporation

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.
Hitachi Capital’s multifunctional IC card
Hitachi Transport System’s Keihin Distribution Center,equipped with Hitachi security systems

Major Products & Services
Major Consolidated Subsidiaries (as of March 31, 2010) The products marked with an asterisk (*) in the table above are those of Hitachi, Ltd.
(Notes) 1. Hitachi, Ltd. separated out the automotive systems segment to form Hitachi Automotive Systems, Ltd. on July 1, 2009.
2. Hitachi Mobile Co., Ltd. changed its name to Hitachi Auto Parts & Service Co., Ltd. as of April 1, 2009.
3. Hitachi, Ltd. separated out the consumer business, mainly digital media-related products such as flat-panel TVs, to form Hitachi Consumer Electronics Co., Ltd. on July 1, 2009.

105

Comparative Table with GRI Guidelines

In formulating the Hitachi Group Corporate Sustainability
Report 2010, we used the GRI Application Levels system
indicating compliance with GRI Sustainability Reporting
Guidelines. This provides an objective measure of the extent to which the third generation of the guidelines (G3)and other GRI Reporting Framework elements have been
applied. The GRI Secretariat recognized this year’s reportas achieving Application Level B+. A comparative tablewith GRI Guideline indexes is included below.

G3 Performance
Indicators &Sector Supplement
Performance Indicators

B+

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

Management Approach Disclosuresfor each Indicator Category

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

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

A

A+

Same as requirement for Level B

Management Approach disclosed foreach Indicator Category

Report Externally Assured

B

Report Externally Assured

OUTPUTOUTPUT

Not Required
G3 Management
Approach
Disclosures

C+

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

OUTPUT

Standard Disclosures

G3 Profile
Disclosures

C

Report Externally Assured

ReportApplicaiton Level

This report corresponds to Application Level B+ as
defined in GRI G3.

Respond on each core G3 and Sector
Supplement* indicator with due
regard to the materiality Principle
by either: a) reporting on theindicator or b) explaining the reason
for its omission.

*Sector supplement in final version

Item

Index

Items Disclosed

Related Pages in This Report andOther References

1. Strategy and Analysis
1.1

1.2

Statement from the most senior decision-maker of the organization(e.g., CEO, chair, or equivalent senior position) about the relevance ofsustainability to the organization and its strategy
Description of key impacts, risks, and opportunities

A Message from Management

1−iv

Top Dialogue

pp. 2–3

Message from the Chief Environmental Strategy Officer

pp. 66–67

CSR at Hitachi

pp. 4–5

CSR Promotion Activities > Fiscal 2009 Results and Fiscal 2010 Plans

pp. 27–29

Hitachi Group Corporate Environmental Management

pp. 68–69

Hitachi Group Fiscal 2009 Environmental Action Plan: Targets and Results

p. 77

2. Organizational Profile
2.1

Name of the organization

Company Profile

p. 104

2.2

Primary brands, products, and/or services

Major Fields of Business and Products

p. 105

2.3

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

Financial Section

Form 20–F filed with the U.S. SEC

2.4

Location of organization’s headquarters

Company Profile

p. 104

2.5

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

Hitachi’s Worldwide Reach

pp. 8–9Company Profile

p. 104

2.6

Nature of ownership and legal form

Financial Section

Form 20–F filed with the U.S. SEC

2.7

Markets served (including geographic breakdown, sectors served, andtypes of customers/beneficiaries)

Financial Section

Form 20–F filed with the U.S. SEC

106

2.8

2.9

2.10

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

Economic Performancep. 104• Net sales (for private sector organizations) or net revenues (for public
sector organizations)

Financial Section

Form 20–F filed with the U.S. SEC• Total capitalization broken down in terms of debt and equity (for private Financial Section
sector organizations)

Form 20–F filed with the U.S. SEC• Quantity of products or services provided

Form 20–F filed with the U.S. SEC

Financial Section

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

Financial Section

Form 20–F filed with the U.S. SEC• Changes in the share capital structure and other capital formation,
maintenance, and alteration operations (for private sector organizations)

Financial Section

Form 20–F filed with the U.S. SEC

Awards received in the reporting period

Communication with Shareholders and Investors > Results of External
Socially Responsible Investing (SRI) Assessments in Fiscal 2009

p. 44

Employees: The Key to Hitachi’s Future > Main Assessments & Awards

p. 64

External Environment Awards

Hitachi, Ltd. Environmental Website

3. Report Parameters
Report Profile
3.1

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

CSR Activity Reporting Policyp. 1−iii

3.2

Date of most recent previous report (if any)

CSR Activity Reporting Policyp. 1−iii

3.3

Reporting cycle (annual, biennial, etc)

CSR Activity Reporting Policyp. 1−iii

3.4

Contact point for questions regarding the report or its contents

Inquiries

p. 118• Determining materiality• Prioritizing topics within the report• Identifying stakeholders the organization expects to use the report

CSR at Hitachi

pp. 4–5

3.6

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

CSR Activity Reporting Policyp. 1−iii

3.7

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

CSR Activity Reporting Policyp. 1−iii

3.8

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

Major Fields of Business and Products

p. 105

3.9

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

Bases of calculations are described if necessary—

Environmental Load Information Collection Methods

Hitachi, Ltd. Environmental Website

3.10

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

Explanation is given if necessary to complement data descriptions

—

3.11

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

None

—

3.12

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

pp. 106–115

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

p. 103

Report Scope and Boundary
3.5

Process for defining report content, including:

Assurance
3.13

4. Governance, Commitments, and Engagement
Governance
4.1

Corporate Governance > Strengthening Governance
Governance structure of the organization, including committees under
the highest governance body responsible for specific tasks, such as setting
strategy or organizational oversight

p. 25

4.2

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

Corporate Governance > Strengthening Governance

p. 25

4.3

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

Corporate Governance > Strengthening Governance

p. 25

4.4

Mechanisms for shareholders and employees to provide recommendations Compliance and Risk Management > Compliance Reporting Systemor direction to the highest governance bodyCommunication with Shareholders and Investors

107

p. 32
p. 43–45

4.5

Linkage between compensation for members of the highest
governance body, senior managers, and executives (including departurearrangements), and the organization’s performance (including social andenvironmental performance)

Corporate Governance > Strengthening Governance

4.6

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

Corporate Governance > Strengthening Governancep. 25

Hitachi Group Code of Conduct

p. 6

4.7

Process for determining the qualifications and expertise of the membersof the highest governance body for guiding the organization’s strategy on
economic, environmental, and social topics.

Corporate Governance > Strengthening Governance

p. 25

4.8

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

CSR at Hitachi

pp. 4–5

CSR Promotion Activities > Fiscal 2009 Results and Fiscal 2010 Plans

pp. 27–29

Hitachi Group Code of Conduct

p. 6

4.9

4.10

Procedures of the highest governance body for overseeing theorganization’s identification and management of economic,
environmental, and social performance, including relevant risks andopportunities, and adherence or compliance with internationally agreed
standards, codes of conduct, and principles

p. 25

Hitachi Group Corporate Environmental Management

pp. 68–69

Environmental Action Plan > Hitachi Group Fiscal 2009 Environmental
Action Plan: Targets and Resultsp. 77

Initiatives That We Participate inp. 1–iii

CSR at Hitachi

pp. 4–5

Corporate Governance > Strengthening Governance; Internal Control

pp. 25–26

CSR Promotion Activities > Striving to Be a Global Leader in CSR

pp. 27–29

Procurement, the Supply Chain, and Respect for Human Rights

p. 17

Hitachi Group Corporate Environmental Management

pp. 68–69

Eco-Mind & Global Environmental Management

pp. 78–83

Processes for evaluating the highest governance body’s own performance, Corporate Governance > Strengthening Governanceparticularly with respect to economic, environmental, and social
performancep. 25

Commitments to External Initiatives
4.11

4.12

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

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

Ensuring Strict Compliance > Risk Managementp. 7

Compliance and Risk Management > Business Continuity Plans (BCPs)

pp. 34–35

Environmental Management Structure > Managing Environmental Risk

p. 80

Initiatives That We Participate in

p.1–iii

Ecosystem Assessment Guidelines at Hitachi Chemical

p.23

Procurement, the Supply Chain, and Respect for Human Rights > Raising
p. 17
Awareness of Human Rights > Participating in Supply Chain Sustainability Team
4.13

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

None• Participates in projects or committees

Procurement, the Supply Chain, and Respect for Human Rights > Raising
p.17
Awareness of Human Rights > Participating in Supply Chain Sustainability Team—

Improving on Environmental Initiatives > Participating in theDevelopment of International Standards

p. 82• Provides substantive funding beyond routine membership dues

None

—

• Views membership as strategic

None

—

Compliance and Risk Management > Preventing the Recurrence ofMisleading Representation

pp. 30–31

Stakeholder Engagement
4.14

List of stakeholder groups engaged by the organization

4.15

Basis for identification and selection of stakeholders with whom to engage None

—

4.16

Approaches to stakeholder engagement, including frequency ofengagement by type and by stakeholder group

CSR at Hitachi > Materiality Process

p. 5

Ensuring Strict Compliance > Global Push to Stop Corruption

pp. 6–7

Procurement, the Supply Chain, and Respect for Human Rights >Exchanging Opinions on Human Rights Issues

p. 17

Providing Supportive and Diverse Workplaces > Employing People with
Disabilities

p. 19

Compliance and Risk Management > Preventing the Recurrence ofMisleading Representation

pp. 30–31

Social Contribution Activities

pp. 46–53

Employees: The Key to Hitachi’s Future > Diversity: A Base for the Healthy
Expression of Individuality > Women’s Summit Tokyo 2009; Work-Life
Balance Promotion Project

pp. 58–59

Worldwide Environmental Partnerships

pp. 98–102

108

4.17

Compliance and Risk Management > Preventing the Recurrence of
Key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key topics Misleading Representationand concerns, including through its reporting
CSR at Hitachi > Materiality Process

pp. 30–31
p. 5Management Approach and Performance Indicators
Item

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

Financial Results for the Year ended March 31, 2010

Hitachi, Ltd. Investor Relations

Market presence

Form 20-F filed with the U.S. SEC

Hitachi, Ltd. Investor Relations

Indirect economic impacts

Breakdown of Funding for Social Contribution Activities

p. 46

Environmental Load Data Generated through Business Operations

p. 97

Goals and performance

Financial Results for the Year ended March 31, 2010

Hitachi, Ltd. Investor Relations

Policy2012 Mid-term Management Plan

Hitachi, Ltd. News Releases

Additional contextual information

Hitachi Group Corporate Sustainability Report 2010

see PDF

Hitachi Web Site

Corporate Social Responsibility (CSR)
Global Community Relations andActivities
Environmental Activities

Economic Performance Indicators
C
EC1

Economic Performance
Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other community
Social Contribution Activities > Finding Solutions for Social Issues >investments, retained earnings, and payments to capital providers andBreakdown of Funding for Social Contribution Activities
governments
Improving on Environmental Initiatives > Environmental Accounting

C
EC2

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

p. 104p. 46
p. 83

Hitachi Group Corporate Environmental Management

pp. 68–69

Prevention of Global Warming

pp. 72–73

Prevention of Global Warming

pp. 92–93

C
EC3

Coverage of the organization’s defined benefit plan obligations

None

—

C
EC4

Significant financial assistance received from government

None

—

Market presenceA
EC5

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

None

—

C
EC6

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

Procurement, the Supply Chain, and Respect for Human Rights >Collaboration with Suppliersp. 17Collaboration with Suppliers > Global Sharing: Hitachi Guidelines for
Procurementp. 54

Collaboration with Suppliers > Promoting the Use of Environmental
Management Systems

p. 54

Preservation of Ecosystem > Controlling Chemical Substances Containedin Products

p. 89

Building Environmental Partnerships > Environmental Conservation
Activities with Suppliers

p. 101

None

—

C
EC7

Procedures for local hiring and proportion of senior management hiredfrom the local community at locations of significant operation

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

Social Innovation Business Contributions

pp. 8–15

Social Contribution Activities

pp. 46–53

A
EC9

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

Improving on Environmental Initiatives > Environmental Accounting

p. 83

Conservation of Resources

p. 74

Conservation of Resources

P. 88

Environmental Load Data Generated through Business / Total Input ofMaterials

p. 97

Environmental
Disclosure on Management
Materials

EnergyPrevention of Global Warming

p. 87

Prevention of Global Warming

pp. 92–93

Environmental Load Data Generated through Business / Total Energy Input p. 97

109

WaterConservation of Resources / Water Resource Conservation

p. 95

Environmental Load Data Generated through Business / Total Water Input

p. 97

Biodiversity

Building Environmental Partnerships / Activities to Protect Ecosystems

p. 102Emissions, effluents and waste

Conservation of Resources

pp. 94–96

Environmental Load Data Generated through Business / Total Volume ofWaste Generated, Total Volume of Wastewater

P. 97

Products and services

Developing Environmentally Conscious Products

p. 85–86

Compliance

Environmental Management Structure / Managing Environmental Risk

p. 80

Transport

Prevention of Global Warming / Reducing CO2 Emissions fromTransportation

p. 93

Overall

Environmental Management Structure

pp. 79–80

Goals and performance

Hitachi Group Fiscal 2009 Environmental Action Plan: Targets and Resultsp. 77

PolicyHitachi Group Corporate Environmental Management

pp. 68–69

Organizational responsibility

Environmental Management Structure / Environmental Management
Framework

pp.79-80

Training and awarenessImproving on Environmental Initiatives

pp. 81–82

Monitoring and follow-up

Environmental Management Structure / Building Environmental
Management Systems

pp. 79–80

Additional contextual information

Hitachi Group Environmental Sustainability Report 2010

see PDF

Environmental Activities

Hitachi, Ltd. Environmental Website

Materials
C
EN1

Materials used by weight or volume

Environmental Load Data Generated through Business Operations

p. 97

C
EN2

Percentage of materials used that are recycled input materials

None

—

C
EN3

Direct energy consumption by primary energy source

Environmental Load Data Generated through Business Operations

p. 97

C
EN4

Indirect energy consumption by primary source

Environmental Load Data Generated through Business Operations

p. 97

A
EN5

Energy saved due to conservation and efficiency improvements

Improving on Environmental Initiatives > Environmental Accounting

p. 83

A
EN6

Initiatives to provide energy-efficient or renewable energy based products Improving on Environmental Initiatives > Environmental Accounting
and services, and reductions in energy requirements as a result of theseDeveloping Environmentally Conscious Products
initiatives
Prevention of Global Warming

p. 83

A
EN7

Initiatives to reduce indirect energy consumption and reductions achieved Environmental Vision

pp. 68–69

EnergyPrevention of Global Warming > Reducing Greenhouse Gas Emissions

pp. 92–93

pp. 85–86
p. 87

Developing Environmentally Conscious Products

pp. 85–86

Prevention of Global Warming

p. 87

Water
C
EN8

Total water withdrawal by source

A
EN9

Water sources significantly affected by withdrawal of waterA
EN10

Percentage and total volume of water recycled and reused

Conservation of Resources > Water Resource Conservation

p. 95

Environmental Load Data Generated through Business Operations

p. 97

None

—

Conservation of Resources > Water Resource Conservation

p. 95

Environmental Load Data Generated through Business Operations

p. 97

None

—

Biodiversity
C
EN11

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

C
EN12

Social Contribution Activities > Environmental Initiatives
Description of significant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
Hitachi Group Corporate Environmental Management
protected areas
Preservation of the Ecosystem

A
EN13

Habitats protected or restored

pp. 49–51
pp. 68–69
p. 89

Building Environmental Partnerships > Environmental Cooperation with
Local Communities

p. 102

None

—

110

A
EN14

A
EN15

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

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

Preservation of the Ecosystemp. 23

Hitachi Group Corporate Environmental Management

pp. 68–69

Preservation of Ecosystem

p. 75

Preservation of Ecosystem

p. 89

Building Environmental Partnerships > Environmental Cooperation with
Local Communities

p. 102

None—

Preservation of Global Warming > Reducing Greenhouse Gas Emissions

pp. 92–93

Environmental Load Data Generated through Business Operations

p. 97

Emissions, Effluents, and Waste
C
EN16

Total direct and indirect greenhouse gas emissions by weightC
EN17

Other relevant indirect greenhouse gas emissions by weightA
EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved

Environmental Load Data Generated through Business Operations

p. 97

C
EN19

Emissions of ozone-depleting substances by weight

Environmental Load Data Generated through Business Operations

p. 97

C
EN20

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

Preservation of Ecosystemp. 96

Environmental Load Data Generated through Business Operations

p. 97

C
EN21

Total water discharge by quality and destination

Conservation of Resources > Water Resource Conservation

p. 95

Environmental Load Data Generated through Business Operations

p. 97

C
EN22

Total weight of waste by type and disposal method

Conservation of Resources > Using Waste and Valuable Resources
Efficiently

pp. 94–95

Environmental Load Data Generated through Business Operations

p. 97

Environmental Management Structure > Managing Environmental Risk

p. 80

Preservation of Global Warming > Reducing Greenhouse Gas Emissions

pp. 92–93

Environmental Load Data Generated through Business Operations

p. 97

Preservation of Global Warming > Reducing Greenhouse Gas Emissions

pp. 92–93

C
EN23

Total number and volume of significant spills

A
EN24

None
Weight of transported, imported, exported, or treated waste deemedhazardous under the terms of the Basel Convention Annex I, II, III, and VIII,
and percentage of transported waste shipped internationally

—

A
EN25

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

None

—

pp. 70–75

Products and Services
A
EN26

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

Contributing to Environmental Conservation through Business
Next-Generation Products & Services

pp. 84–89

A
EN27

Percentage of products sold and their packaging materials that arereclaimed by category

Product and Package Recycling

Hitachi, Ltd. Web site

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

Environmental Management Structure > Managing Environmental Risk

p. 80

Significant environmental impacts of transporting products andother goods and materials used for the organization’s operations, andtransporting members of the workforce

Prevention of Global Warming > Reducing CO2 Emissions fromTransportation

p. 93

Total environmental protection expenditures and investments by type

Improving on Environmental Initiatives > Environmental Accounting

p. 83ComplianceC
EN28
Transport
A
EN29
OverallA
EN30

Social Performance
Labor Practices and Decent Work
Disclosure on Management
Employment

Company Profile

p. 104

Labor / Management relations

Hitachi Group Code of Conduct 4.4 Respect of Basic Rights at Work

Hitachi, Ltd. CSR Website

Occupational health and safety

Employees: The Key to Hitachi’s Future / A Safe, Pleasant Workplace

pp. 61–63

Training and education

Employees: The Key to Hitachi’s Future / Challenge: Supports Growth

pp. 56–58

Diversity and equal opportunity

Employees: The Key to Hitachi’s Future / Diversity: A Base for the Healthy
Expression of Individuality

pp. 58–61

Goals and performance

CSR Promotion Activities / Fiscal 2009 Results and Fiscal 2010 Plans / 7.
Working environmentp. 29

Employees: The Key to Hitachi’s Future / Diversity: A Base for the Healthy
Expression of Individuality

p. 58

111

Policy

CSR Policy of the Hitachi Group

Hitachi, Ltd. CSR Website

Organizational responsibility

CSR Promotion Activities / Structure of Hitachi Group CSR Promotion

p. 27

Training and awareness

Employees: The Key to Hitachi’s Future / Challenge: Supports Growth

pp. 56–58

Monitoring and follow-up

Employees: The Key to Hitachi’s Future / Openness: Promotes the
Expression of Employee’s Full Potential / Survey of All Employees

p. 56

Additional contextual information

Hitachi Group Corporate Sustainability Report 2010

see PDF

Hitachi Web Site

Hitachi, Ltd. CSR Website

Labor Practices and Decent Work Performance Indicators
Employment
C
LA1

Total workforce by employment type, employment contract, and region

Company Profile

p. 104CLA2

Total number and rate of employee turnover by age group, gender, andregion

None

—

A
LA3

Benefits provided to full-time employees that are not provided totemporary or part-time employees, by major operations

None

—

Labor/Management Relations
C
LA4

Percentage of employees covered by collective bargaining agreements

None

—

C
LA5

Minimum notice period(s) regarding operational changes, including
whether it is specified in collective agreements

None

—

Occupational Health and Safety
A
LA6

Percentage of total workforce represented in formal joint management–
worker health and safety committees that help monitor and advise on
occupational health and safety programs

None

—

C
LA7

Rates of injury, occupational diseases, lostdays, and absenteeism, and number of work- related fatalities by region

Employees: The Key to Hitachi’s Future > A Safe, Pleasant Workplace >Occupational Accident Rate

p. 61

C
LA8

Education, training, counseling, prevention, and risk-control programs in Providing Supportive and Diverse Workplaces > Employing People withplace to assist workforce members, their families, or community members Disabilities
regarding serious diseases
Compliance and Risk Management > Business Continuity Plans (BCPs)

p. 19

C
LA9

Health and safety topics covered in formal agreements with trade unions

pp. 34–35

Employees: The Key to Hitachi’s Future > A Safe, Pleasant Workplace >Promoting Mental Health

p. 62

None

—

None

—

Training and Education
C
LA10

Average hours of training per year per employee by employee categoryA
LA11

Employees: The Key to Hitachi’s Future > Challenge: Supports Growth >Programs for skills management and lifelong learning that support thecontinued employability of employees and assist them in managing career Supporting Career Development
endings

p. 57

A
LA12

Percentage of employees receiving regular performance and careerdevelopment reviews

Employees: The Key to Hitachi’s Future > Challenge: Supports Growth

pp. 56–58

Diversity and Equal Opportunities
C
LA13

Composition of governance bodies and breakdown of employees per
category according to gender, age group, minority group membership,
and other indicators of diversity

Providing Supportive and Diverse Workplaces

pp. 18–19

Employees: The Key to Hitachi’s Future > Diversity: A Base for the Healthy
Expression of Individuality

pp. 58–61

C
LA14

Ratio of basic salary of men to women by employee category

None

—

Collaboration with Suppliers / Guidelines for Procurement Activities

p. 54

Hitachi Group Supply-Chain CSR Deployment Guidebook

Hitachi, Ltd. CSR Website

Hitachi Group Code of Conduct 1.3 Procurement Activities

Hitachi, Ltd. CSR Website

Non-discrimination

Hitachi Group Code of Conduct 4.2 Eliminating Discrimination

Hitachi, Ltd. CSR Website

Freedom of association and collective bargaining

Hitachi Group Code of Conduct 4.4 Respect of Basic Rights at Work

Hitachi, Ltd. CSR Website

Abolition of child labor

Hitachi Group Code of Conduct 4.4 Respect of Basic Rights at Work

Hitachi, Ltd. CSR Website

Prevention of forced and compulsory labour

Hitachi Group Code of Conduct 4.4 Respect of Basic Rights at Work

Hitachi, Ltd. CSR Website

Complaints and grievance practices

Hitachi Group Code of Conduct 4.4 Respect of Basic Rights at Work

Hitachi, Ltd. CSR Website

Human Rights
Disclosure on Management
Investment and procurement practices

Security practices

Hitachi Group Code of Conduct 4.4 Respect of Basic Rights at Work

Hitachi, Ltd. CSR Website

Indigenous rights

Hitachi Group Code of Conduct 4.4 Respect of Basic Rights at Work

Hitachi, Ltd. CSR Website

112

Goals and performance

CSR Promotion Activities / Fiscal 2009 Results and Fiscal 2010 Plans / 4.
Corporate ethics and human rights

p. 28

PolicyHitachi Group Code of Conduct Chapter 4 Respect of Human Rights

Hitachi, Ltd. CSR Website

CSR Policy of the Hitachi Group

Hitachi, Ltd. CSR Website

Organizational responsibility

CSR Promotion Activities / Structure of Hitachi Group CSR Promotion

p. 27

Training and awarenessProcurement, the Supply Chain, and Respect for Human Rights/ Raising
Awareness of Human Rights

p. 17

Monitoring and follow-up

Procurement, the Supply Chain, and Respect for Human Rights/
Collaboration with Suppliers/ Surveying CSR Implementation

p. 17

Procurement, the Supply Chain, and Respect for Human Rights/
Exchanging Opinions on Human Rights Issues

p. 17

Additional contextual information

Hitachi Group Corporate Sustainability Report 2010

see PDF

Hitachi Web Site

Hitachi, Ltd. CSR Website

Human Rights Performance Indicators
Investment and Procurement Practices
C
HR1

Percentage and total number of significant investment agreements that
include human rights clauses or that have undergone human rights
screening

None

—

C
HR2

Percentage of significant suppliers and contractors that have undergone
screening on human rights and actions taken

Procurement, the Supply Chain, and Respect for Human Rights >Collaboration with Suppliers

p. 17

A
HR3

Total hours of employee training on policies and procedures concerning
aspects of human rights that are relevant to operations, including thepercentage of employees trained

Procurement, the Supply Chain, and Respect for Human Rights >Raising Awareness of Human Rights

p. 17

None

—

Non-Discrimination
C
HR4

Total number of incidents of discrimination and actions taken

Freedom of Association and Collective BargainingC
HR5Operations identified in which the right to exercise freedom of association Hitachi Group Code of Conductand collective bargaining may be at significant risk, and actions taken to
support these rights

p. 6

Operations identified as having significant risk for incidents of child labor,
and measures taken to contribute to the elimination of child labor

Hitachi Group Code of Conduct

p. 6

Hitachi Group Code of Conduct
Operations identified as having significant risk for incidents of forced orcompulsory labor, and measures to contribute to the elimination of forced
or compulsory laborp. 6

Child LaborC
HR6

Forced and Compulsory LaborC
HR7Security Practices
A
HR8

Percentage of security personnel trained in the organization’s policies
or procedures concerning aspects of human rights that are relevant tooperations

None

—

None

—

Social Contribution Activities / Finding Solutions for Social Issues

p. 46

Hitachi Group Code of Conduct 3.2 Contribution to Local Communities,
3.6 Observance of Laws and Regulations and Respect of the Culture andCustoms of Each Nation and Region

Hitachi, Ltd. CSR Website

Ensuring Strict Compliance / Global Push to Stop Corruption

p. 6–7

Indigenous Rights
A
HR9

Total number of incidents of violations involving rights of indigenous
people and actions taken

Society
Disclosure on Management
Community

Corruption
Public Policy

None

—

Anti-competitive behavior

Ensuring Strict Compliance / Global Push to Stop Corruption

p. 6–7

Compliance and Risk Management / Preventing Recurrences ofAntimonopoly Law Violations

p. 31–32

Compliance

Ensuring Strict Compliance / Establishing and Implementing Corporate
Ethics Month, Formulating the Hitachi Group Code of Conduct

p. 6

Goals and performance

CSR Promotion Activities / Fiscal 2009 Results and Fiscal 2010 Plans / 4.
Corporate ethics and human rights

p. 28

PolicyHitachi Group Code of Conduct Chapter 4 Respect of Human Rights

Hitachi, Ltd. CSR Website

CSR Policy of the Hitachi Group

Hitachi, Ltd. CSR Website

CSR Promotion Activities / Structure of Hitachi Group CSR Promotion

p. 27

Organizational responsibility

113

Training and awareness

Ensuring Strict Compliance / Establishing and Implementing Corporate
Ethics Month, Formulating the Hitachi Group Code of Conduct

p. 6

Monitoring and follow-up

Corporate Governance / Internal Control

p. 25–26

Additional contextual information

Hitachi Group Corporate Sustainability Report 2010

see PDF

Hitachi Web Site

Hitachi, Ltd. CSR Website

Hitachi Group Code of Conductp. 6Society Performance Indicators
Community
C
SO1

Nature, scope, and effectiveness of any programs and practices thatassess and manage the impacts of operations on communities, including
entering, operating, and exiting

Social Contribution Activities > Finding Solutions for Social Issues > Social p. 46
Contribution Philosophy and Policy

Corruption
C
SO2

Percentage and total number of business units analyzed for risks related to Compliance and Risk Management > Preventing Recurrences ofcorruption
Antimonopoly Law Violations

p. 32

C
SO3

Percentage of employees trained in organization’s anti-corruption policies Ensuring Strict Compliance > Global Push to Stop Corruption
and procedures

pp. 6–7

C
SO4

Actions taken in response to incidents of corruption

p. 32

Compliance and Risk Management > Preventing Recurrences ofAntimonopoly Law Violations

Public Policy
C
SO5

Public policy positions and participation in public policy development and None
lobbying—

A
SO6

Total value of financial and in-kind contributions to political parties,
politicians, and related institutions by country

—

None

Anti-Competitive Behavior
C
SO7

Total number of legal actions for anti-competitive behavior, anti-trust, and Compliance and Risk Management > Preventing Recurrences ofmonopoly practices and their outcomes
Antimonopoly Law Violations

p. 32

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

Compliance and Risk Management > Preventing the Recurrence ofMisleading Representation

pp. 30–31

Compliance and Risk Management > Preventing Recurrences ofAntimonopoly Law Violations

p. 32

ComplianceC
SO8

Product Responsibility
Disclosure on Management
Customer health and safety

Improving Monozukuri and Service

pp. 37–42

Product and service labelling

Developing Environmentally Conscious Products / Disclosure ofEnvironmental Information

pp. 85–86

Marketing communications

Improving Monozukuri and Service / Building Customer Feedback into Our pp. 39–41
Products

Customer Privacy

Compliance and Risk Management / Protecting Personal Information andInformation Security

pp. 32–33

Compliance

Compliance and Risk Management / Protecting Personal Information andInformation Security, Export Control, Respect Intellectual Property

pp. 32–33

Goals and performance

CSR Promotion Activities/Fiscal 2009 Results and Fiscal 2010 Plans / 2.
Contribution to society thorough our businessp. 28

PolicyHitachi Group Code of Conduct

Hitachi, Ltd. CSR Website

Organizational responsibility

CSR Promotion Activities/ Structure of Hitachi Group CSR Promotion

p. 27

Training and awarenessImproving Monozukuri and Service / Building Customer Feedback into Our pp. 39–41
Products

Monitoring and follow-up

CSR Promotion Activities / Fiscal 2009 Results and Fiscal 2010 Plans / 2.
Contribution to society thorough our business

Additional contextual information

p.28

Hitachi Group Corporate Sustainability Report 2010

see PDF

Hitachi Web Site

Hitachi, Ltd. CSR Website

Product Responsibility Performance Indicators
Customer Health and Safety
C
PR1

Life cycle stages in which health and safety impacts of products andservices are assessed for improvement, and percentage of significant
products and services categories subject to such procedures

Improving Monozukuri and Service > Ensuring Product and Service Quality p. 37> High-Quality Monozukuri through Improved Work ProcessesA
PR2

Total number of incidents of non-compliance with regulations andvoluntary codes concerning health and safety impacts of products andservices during their life cycle, by type of outcomes

Improving Monozukuri and Service > Ensuring Product and Service Quality p. 38> Handling Product Accidents; Other Key Quality Assurance Programs

114

Product and Service LabelingC
PR3

Developing Environmentally Conscious ProductsType of product and service information required by procedures, andpercentage of significant products and services subject to such information
requirements

pp. 85–86

A
PR4

Compliance and Risk Management > Preventing the Recurrence ofTotal number of incidents of non-compliance with regulations andvoluntary codes concerning product and service information and labeling, Misleading Representation
by type of outcomes

pp. 30–31

A
PR5

Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction

Improving Monozukuri and Service > Building Customer Feedback into
Our Products

pp. 39–40

Marketing Communications
C
PR6

Programs for adherence to laws, standards, and voluntary codes related
to marketing communications, including advertising, promotion, andsponsorship

Hitachi Group Code of Conduct

p. 6

A
PR7

Total number of incidents of non-compliance with regulations andvoluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship by type of outcomes

Compliance and Risk Management > Preventing the Recurrence ofMisleading Representation

pp. 30–31

Customer Privacy
A
PR8

Total number of substantiated complaints regarding breaches of customer None
privacy and losses of customer data—

Monetary value of significant fines for non- compliance with laws andregulations concerning the provision and use of products and services—

Compliance
C
PR9

None

115

Indexes by Category

To facilitate searching for information on CSR activities,
indexes are provided according to the “Policy, Vision, andGuidelines” and “Result Data” categories.
Policy, Vision, and Guidelines
Category

Title

Ensuring Strict Compliance
Hitachi’s CSR Management

Related Pages in This Report
and Other References

Items Disclosed
Hitachi Group Code of Conduct

p. 6

Corporate Credop. 4

Hitachi Group Vision

p. 4

CSR Policy of the Hitachi Group

p. 4

Procurement and Respect for Human Rights

Hitachi Group Supply-Chain CSR Deployment Guidebook

p. 17

CSR Management

Basic Approach to Information Security Governancep. 33

Personal Information Protection Policy

p. 32

Three Principles for Preventing Leakage of Confidential Information

p. 33

The Guidelines for Pandemic Influenza Preparedness

p. 34

Social Performance

Compliance and Risk Management

Improving Monozukuri and Service

Customer Satisfaction Management Guidelines

p. 39

Communication with Shareholders andInvestors

Disclosure Policyp. 43

Basic Policy for Prevention of Takeovers

pp. 44–45

Social Contribution Philosophy and Policyp. 46

Guidelines for Procurement Activities

p. 54

Green Procurement Guidelines

p. 55

Collaborative Creation with Suppliers

Employees: The Key to Hitachi’s Future
Hitachi’s Environmental Conservation

Basic Attitudes Concerning HIV/AIDS

p. 63

Environmental Visionp. 68

Hitachi Action Guidelines for Environmental Conservation

p. 68

Environmental Vision 2025

p. 69

116

Result Data
Category
CSR Management at Hitachi

Living Together with Society

Hitachi’s Environmental Conservation

Title

Related Pages in This Report
and Other References

Items Disclosed

Corporate GovernanceDirector Compensation

p. 25

CSR Promotion Activities

Fiscal 2009 Results and Fiscal 2010 Plans

pp. 27–29

Communication with Shareholders andInvestors

Trends in Shareholder Compositionp. 44

Results of External SRI Assessments in Fiscal 2009p. 44

Social Initiatives

Breakdown of Funding for Social Contribution Activities

p. 46

Employees: The Key to Hitachi’s Future

Ratio of New Male and Female Graduate Recruits in Fiscal 2009

p. 58

Ratio of Male and Female Employees in FY 2009

p. 58

Trend in the Number of Female Managers

p. 58

Trend in the Number of Employees Taking Childcare Leavep. 58

Trend in the Number of Employees Taking Nursing Care Leavep. 58

Trend in the Number of Employees Working Shorter Hours

p. 58

Occupational Accident Ratep. 61

Employment Ratio of People with Disabilities

p. 19

Hitachi Group Corporate Environmental
Management

Contributions to CO2 Emission Reduction

p. 69

Environmental Action Plan

Hitachi Group Fiscal 2009 Environmental Action Plan Targets andResultsp. 77

Eco-Mind & Global Environmental
Management

Status of ISO 14001 Certifications

p. 80

Violations of Statutory Standards

p. 80

Green Point Average: Results and Targets

p. 81

Environmental Education Completion Rate

p. 82

Green Purchasing Ratep. 82

Environmental Accounting

p. 83

Next-Generation Products & Services

Eco-Product Increase

p. 86

Increase in Eco-Product Sales

p. 86

Super Eco-factories & Offices

Reducing CO2 Emissions in Japan

p. 93

Reducing CO2 Emissions outside Japan

p. 93

Reducing CO2 Emissions from Domestic Transportation

p. 93

Reducing Waste Generated

p. 95

Boosting the Resource Recycling Rate in Japan

p. 95

Reducing Water Use outside Japan

p. 95

Reducing VOC Emissions in Japan

p. 96

Reducing VOC Emissions outside Japan

p. 96

Environmental Load Data Generated through Business Operations

p. 97

117

Inquiries
Hitachi, Ltd.
CSR Promotion Department, Corporate Brand & 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/
Environmental Strategy Ofﬁce (For inquiries on environmental activities)
1-6-1 Marunouchi, Chiyoda-ku, Tokyo, 100-8220, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4235-5835 http://www.hitachi.com/environment/
On the cover: The cover photo is from Moanalua Garden Park (Monkey Pod tree), Oahu Island, Hawaii.
This tree has become known as the “Hitachi Tree” through television commercials over many years.
It represents the qualities that we like to emphasize at Hitachi—synergy, growth, and strength.
(Photo: Tor Johnson; Illustration: Atsushi Hara)118