ENVIRONMENTALSUSTAINABILITY REPORT 2004

Hitachi Group

Company Profile
Company Profile
2
Corporate Name: Hitachi, Ltd.
Incorporated: Incorporated February 1, 1920 (founded in 1910)
Head Office: 6, Kanda-Surugadai 4-Chome, Chiyoda-ku, Tokyo 101– 8010, Japan
Representative: Etsuhiko Shoyama, President and Chief Executive Officer

Hitachi Group Profile
The Hitachi Group has its origins in Hitachi, Ltd., which started

Japan’s gross domestic product, and consume the equivalent ofdesigning and manufacturing motors in 1910. Today it has grown

about 0.015% of Japan’s energy consumption.

to 1,121 companies in Japan and around the world.

Since the preceding fiscal year Hitachi has been proceeding

The Group covers a wide range of business areas, from homewith strategic alliances, M&As and reorganizations. These haveelectronics, information devices and services, to the development

included the acquisition of IBM Corporation’s hard disk driveof new materials and infrastructure. Group companies employ(HDD) operations and the transfer of system LSI and other semi-

340,000 people, account for 8 trillion yen in consolidated rev-

conductor business operations to Renesas Technology Corp., aenues (of which 34% is outside Japan), equivalent to about 1% ofcompany jointly established with Mitsubishi Electric Corporation.

CustomerBusiness Unit

Product
Personal/Home

Business/Society
System Integration/Software■ ALS Patient’s Communication Equipment P34

Information &telecommunication
systems▲ μ-chip P33
Disk arrays, hard disk drives, servers, general-purpose computers

High-end disk array
subsystem SANRISE9980V● Hard disk drives P20
PCs, peripherals

Liquid Crystal Displays (LCD)
Electronic
devices

Semiconductor manufacturing devices, measurement/analysis devices,
medical devices

Hitachi CD-measurement
SEM● Optical topographys systems P22
Nuclear power generators, thermal power generators, hydraulic power
generators, industrial machinery/plants, air conditioners, construction
machinery, vehicles, elevators, escalators, automotive equipment,
environmental equipment

Power & industrial
systems● Millimeter wave radar● Amorphous transformers▲ Tokyo Eco Recycle Co., Ltd.
▲ Recycling construction
machinery components

Ultra-large HydraulicExcavator EX8000▲ Recycling automobile
components

Optical storage drives, televisions, cellular phones, LCD projectors,
air conditioners, refrigerators, washing machines, batteries,
information recording media

Digital media& consumer
products
Plasma Television
W42-PDH5000

High functional
materials &components

P20 ▲ Bio-degradable plastics plant
P24 ▲ Urban models
P31 ■ Biometric Authentication
System using Finger Vein
P32
Patterns
P32 ■ Nanoimprint■ Elevators● DVD video cameras● Plasma televisions

P18
P21

● Air conditioners

P21

Electrical wire, cable, copper and copper alloys, cast iron, cast steel,high-grade metal, magnetic materials, chemical material,
electronic insulating materials, synthetic resins, circuit boards,
ceramic materials
Anisotropic conductive
films for LCDs
ANISOLM● Metals for drilling P22

Freight transport, property management/sales and leasing

Logistics,
services & others▲ Modal shifting P32
Hitachi Transport System
operates this distribution
center for the AEON Group

Financial services

Loan sales, leasing, life and non-life insurance agency

Multifunctional IC card

The following symbols indicate product and service categories that are covered in this report.

● Nature-friendly Products & Eco-factories▲ Sustainable Business Models■ Social Report

P32
P33
P34

P34
P34

Economic Performance3

As of March 31, 2004

Period: March 2004 (consolidated basis)

Capital Stock: ¥282,032 million

Net sales: ¥8,632.4 billion (105% compared with the previous year)

Number of employees (Unconsolidated basis): 36,582

Operating income/loss: ¥184.8 billion

Number of employees (Consolidated basis): 334,324

Capital investment: ¥816.5 billion (104% compared with the previous year)

Number of consolidated subsidiaries: 956 (Japan: 545, overseas: 411)

R&D expenditure: ¥371.8 billion (99% compared with the previous year)

Number of affiliated companies that use the equity method:

Overseas output as a percentage of consolidated net sales: 34%

165 companies

Trends in Performance Results (Consolidated basis)
Net Sales (billions of yen)

Net Sales by Industry Segment for Fiscal 2002 (billions of yen)

9,000
8,632

8,416
8,001

7,993

8,191

8,000

Information & Telecommunication
Systems
2,314 (23%)

High Functional Materials &Components
1,297 (13%)

Electronic Devices
1,312 (13%)

Digital Media & Consumer Products
1,226 (12%)

7,000

6,000

Financial Services
550 (5%)
Logistics, Services & Others
1,256 (12%)

1999

2000

2001

☞ For more details, please see

2002Power & Industrial Systems
2,297 (22%)

Total Sales for Industry

Consolidated Net Sales¥10,256 billion¥8,632 billion

2003 (FY)

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

About this Report
The Environmental Sustainability Report 2004 reports on the recent activities and results of the Hitachi Group relating to corporate social responsibility, and also reports on future plans.

Editorial Note

Third-Party Comments

The Hitachi Group has been publishing reports on its environmental activities since 1998.
We began reporting on corporate social responsibility (CSR) with the Environmental Sustainability Report 2002, which included information on personnel systems, worker healthand safety, regulatory compliance, and social contribution activities.
The current issue shows the attention we have given to CSR activities to date and indicates
our organizational structure and orientation to expand them further. In particular, thisyear we have added sections on “Contributing to Society through Business Activities” and“Expanding the Shared Sense of Social Responsibility.” Meanwhile, we have limited thereporting of economic performance here to introducing the Internet Web sites where thisinformation is available, because it is provided separately in financial and annual reports.
And for the descriptions of activities and environmental impact data, we have enhanced our reporting as a group of companies that is active on a global scale.

Since 2000, we have received comments from Ms. Kimie Tsunoda of the Valdez Society*1
regarding our environmental reporting. This year we received comments on two occasions
from five persons from the Valdez Society (Yasunobu Okada, Kojiro Tanaka, Kimie Tsunoda,
Yoshiki Midorikawa, and Tamio Yamaguchi), once during preparation of the report, andonce at the final editing phase.
In terms of social reporting from the CSR perspective, we received comments from Reitaku
University’s Prof. Iwao Taka, a member of the Japan CSR Standardization Committee, regarding his evaluation of this report as well as expectations for the future.
For the selection of eco-product examples, we held meetings with product developers andcustomers to discuss matters, particularly from the environmental perspective, and wereport on those meetings here.
*1. This non-governmental organization is based on three pillars: environmental management for companies, social responsibility for investors, and green perspectives for
consumers. It is the sole Japanese registered member of the Coalition for Environmentally Responsible Economies (CERES), which created the Global Reporting Initiative (GRI).

Scope of this Report
In total, a total of 1,121 companies in the Hitachi Group are covered under consolidated
reporting. The environmental impact data reported here covers 258 companies (including
Hitachi, Ltd. and 257 related companies, subsidiaries and affiliates). The companies subject to reporting have changed from last year, as we have excluded companies to which
the equity method of consolidated reporting applies, and there have also been changes ingroup companies. Because of this, for environmental impact data, for fiscal 2003 we display the data for the new scope of companies covered; for past data we show the original
previous data; and for data having a comparison with a base year, we give the base year
data for the new scope of companies covered. Also, data that is given without reference toJapan or overseas represents the total for both Japan and overseas.

Period Covered in this Report
Mainly fiscal 2003 (1 April 2003 to 31 March 2004)

Guidelines Used in Preparing this Report“Environmental Reporting Guidelines” (FY2003 version), by Japan Ministry of the Environment“Guidelines on Environmental Performance Indicators for Business” (FY2002 version), by
Japan Ministry of the Environment“2001 Environmental Reporting Guidelines with an Emphasis on Stakeholders,” by Japan
Ministry of Economy, Trade and Industry“Sustainability Reporting Guidelines 2002,” by Global Reporting Initiative

Next Report
The next report is planned for June 2005.

Other Matters
Symbols used in this report
Terminology:
This symbol appears beside certain specialized terms and names. Please see the terminology list on pages 43 and 44 for explanations.
Web:
This symbol indicates a related Web site address.
Graphs and other visuals use universal design for readers with color-impaired vision.
Company names of customers and suppliers may be abbreviated in this report.

Contents
42Company Profile

3

About this Report

4

Contents

5

Highlights of 2003

6

Message from the President

8

Sustainable Business Models
31

The Inspiration to Achieve Zero Emissions
Recycling and Re-Using PCs
Recycling Storage Products from Europe

Hitachi’s Social Responsibility Initiatives(Environmental and Social)

32

Environmental Report

33

Refurbishing and Re-using Construction Equipment
Recycling Businesses in a Car-Dependent Society
Biodegradable Plastics: The New Focus
Society

Environmental Initiatives
9

The µ-Chip: A Key to Information-Based, Recycling-Oriented
Development of the Energy Cartridge Fuel Cell

Basic Environmental Philosophy

Social Report

Environmental Protection Action Guidelines
Hitachi’s Environmental Vision
10

Environmental Management of the Hitachi Group11

Environmental Impact Data for Corporate Activities (FY2003)

12

Environmental Action Plan and Results

Contributing to Society through Business Activities
34

Promoting Universal Design
Participation in the International Association for Universal Design

Eco-mind & Management
14

Environmental Management System

Quality Assurance Initiatives
35

Environmental Education and Training
Environmental Management System Based on ISO 14001

16

Integrated Environmental Management System

Information Disclosure, Ethics and Human Rights
36

Security: Handling Risks

Nature-friendly Products & Eco-factories
Life cycle Assessment System
An Assessment System that Considers Product Functions
19

Hitachi’s Social Contribution Philosophy and Examples ofEnvironment-Friendly Design and Returnable Packaging

Programs
38

Hitachi Young Leaders Initiative: Developing the Leaders of

Initiatives to Promote Modal Shifting

Tomorrow

Global Warming Prevention: Targets and Results

EU Hitachi Science and Technology Forum

Launch of Hitachi’s CO2 Emissions Reduction System

CFR-Hitachi Fellowship Program

Greenhouse Gas Emissions Reductions and New Energy

Hitachi International School Teachers Exchange Program

Conserving Energy in the Clean Room

Recognizing Students: The Hitachi Foundation, Community

Installing Amorphous Transformers

Service Award

Enhancing the Risk Management System for Chemical
Risk Management for New Chemical Substances

Creating a Good Working Environment
39

Training our Employees

Voluntary Controls to Reduce Environmental Impacts

HItachi Awarded for Promoting Self-Directed Learning

Waste Reduction: Hitachi Group Targets and Results
Supervision of Proper Disposal
Efficient Use of Water Resources

Worldwide Stakeholder Collaboration29

Supporting Diversity
40

Hitachi’s Internet Web Site

Health and Safety Knowledge and EAP

Expanding the Circle of Social Responsibility
41

Working with Suppliers for High Procurement Standards
History of Hitachi’s Products and Technology, and Evolution ofEnvironmental and Social Contribution Activities

Environmental Communication
Communicating through Environmental Sustainability Report and30

Human Resources System: Bringing out our Employees’ Best

Survey of Substances Under the PRTR Law
Preventing Pollution of Soil and Groundwater
28

Overseas Corporate Social Contribution Programs

CO2 Emissions from Transportation

Substances

27

Hitachi Group’s Philosophy and Policy on Social Contribution
Activities

23

26

37

Using Information Technologies for Green Procurement
Eco-Products and Customer Input

25

Harmony with Local Communities

The RoHS Directive and the Phase-Out of Lead Solder and HCFCS

20

24

Compliance with Laws and Regulations
Raising Ethical and Compliance Standards

Our Approach to Environmental Accounting

18

Boosting Customer Satisfaction
Recognition and Awards

GREEN 21 (Version 2) Evaluation Criteria
15

Social Contribution through Technological Innovation

Data

Exhibiting at “Eco-Products 2003 Exhibition”

42

Data on hitachi green web

Running Eco-Poster Contest

43

Terminology

Interacting with Government and Universities

44

Postscript

Environmental Town Meetings

45

Third-Party Comment on Hitachi Group’s Environmental Sustainability Report 2004

Highlights of 2003
Main topics of social responsibility activities in fiscal 2003.

Complete Phase-Out of Lead Solder
We solved problems of reliability and usability of in low heat-tolerant
parts of actual circuit boards by adopting indium-based lead-freesolder, and completely phased out leaded solder in products produced in Japan. For parts produced or procured overseas, we plan
to completely phase out products subject to the European Union’s
RoHS Directive by the end of fiscal 2004.

18

P

Environmental Town Meetings
In order to have direct dialogue with stakeholders , we held an“environmental town meeting”

for readers of a popular Japanese-

language environmental information portal Web site, “Kankyo goo.”
We received evaluations of our environmental reports and opinions
regarding the activities of the Hitachi Group, and we are responding tothat input and with more detailed information disclosure.

P

30International Association for Universal Design
Hitachi, Ltd. became a member and chair of the International Association for Universal Design , formed in Japan in November 2003. This isa body formed to offer ideas from Japan to the world for the benefit ofsociety. The Hitachi Group will work to make contributions by offering
technology and know-how in information technology fields.

Hitachi Young Leaders Initiative
As our contribution to the development of the next generation of leadersin Asia, we support students by organizing public forum, workshops andlocal community work project for them to participate in. In December
2003, we held the conference in Bangkok, Thailand under the theme“Charting a New Course for Asia”, and also arranged volunteer work forthe students in the form of educational activities for the disabled.

38

P

34

P

Message from the President

We Aim to be the World’s Most Trusted Company
Interview by Aki Sato and Kyoko Tajima, Corporate Environmental Policy Division6
and from this base to continuously develop our CSR activities.
For this, I think it is important that not only our employees but also
their families think about society, and take action, so that we aim
for action that each individual can be proud of.
Our customers are a part of society, of nations, and of theentire world. The principle of providing service to our customers
ultimately means doing something for society, and this also benefits each and every Hitachi employee. Because of this, I have set
a high objective, of being the most trusted company in the world.

Using the Synergies of the Hitachi GroupThe Hitachi Group is active in a wide range of businesses, including heavy electrical machinery, computers, home appliances, andmany more. And it is a corporate group rich in variety, with manyof our companies listed on major stock exchanges. Each company has built its business on its own uniqueness through creative
management, and built strength in its own line of business. As a
Since I became the president of Hitachi, Ltd., the company has

result, the entire Hitachi Group has also grown strong.

aimed to become the “best solutions partner” for customers

But today we are in an age of unprecedented global competi-around the world. Being the “best solutions partner” meanstion. For the Hitachi Group to continue developing and increasing

having advanced and broad technological capabilities and theits corporate value, besides having the strengths of each busi-

ability to propose ideas, offering unique services and physicalness, we must also use our synergies.

products, and providing the right solutions. And if we can do

So this spring, in order to more consciously conduct inte-

this for our customers and for society, we will be a company

grated management and use the synergies of the Hitachi Group,

like no other. I believe that this is at the core of corporate social

we created the Hitachi Group Headquarters. In particular, CSR

responsibility (CSR).

and other initiatives for environmental and social contribution ac-

Since Hitachi was founded, it has been our motto to “Contrib-

tivities are a common theme of all companies of the Group. Thus,

ute to society through business,” and the company has consis-

aware that we would produce greater results by organizing thesetently worked with the corporate philosophy of contributing to theactivities at a group-wide level, we made CSR one of our mostadvance of society through technology. This founding philosophy

important themes and will move forward with action. I think thatstill drives us today in the twenty-first century. We want to be a

by making use of the experience and know-how that has been

company whose customers are always glad they gave us busi-

cultivated over many years in the companies of the Hitachi Group,

ness, investors are glad they invested in us, and employees are

we can conduct activities at a higher level.

glad they work with us.

The Hitachi Approach
Hitachi has worked hard to provide exactly the services and solutions that our customers want, and at the same time, to fulfill ourduties in the broadest sense as a corporate and global citizen.
Through these efforts we have built trust for the Hitachi brand.
A good brand can only be realized if each and every person
behind it has pride in it, is fully conscious of its value every day
as he or she works, and has the desire to constantly improve its
value. So a brand is very important, and it is built by a lot of hard
work over a long period of time. I would like to make the reliability
and technical ability that stand behind our brand be our very core

7
Continuous Expansion of CSR Activities,
Hitachi Style

important missionsof management.
This fiscal year we

The Hitachi Group has done quite a variety of activities in the past.

reviewed our evalu-

For example, the development of what we call the “Heart Com-

ation system for em-

municator,” a device that helps people to communicate, started

ployees below thewhen one of our employees contracted an incurable disease

management level, and introduced a new compensation system

known as amyotrophic lateral sclerosis (ALS). After repeated im-that rewards ability and results. Under this system, the burden

provements, it now supports sufferers of this disease by allowing

on the evaluating side is not difficult to imagine. If you don’t know

them to read and write messages.

your counterpart, you can’t evaluate them. This will increase dia-Also, besides inviting students from six countries in Asia tologue with section and department managers, for example, andhelp develop the next generation’s leaders and providing a forum

improve communications, and I expect it will help to create goodfor discussions, we are also working in a variety of areas, includ-

work environments.

ing supporting local cultural activities; advancing home education

In addition, to allow both men and women to be pro-and youth issues; promoting understanding of environmental

moted without any discrimination, and to create a good work

issues; conducting foundation activities that support research into

environment for women, we are gradually working to makeoriginal science and technology; and volunteer activities, etc.

improvements, such as by creating a daycare service in Totsuka,

But with many of these activities, there was no conscious

Yokoyama. We are also trying to support the lifestyle changes

effort to advertise, so many people may have never heard aboutthat come with marriage and childbirth, and considering how tothem. The spirit of quiet virtue may be a tradition at Hitachi, but

positively promote women to the top management level.

from now on, we need to make a greater effort to communicate
our activities to stakeholders, to get them to understand, and to
get them to participate in our activities. Thus, we recently created“Inspire the Next”: Hitachi Continues with
the Challenge

content on the Hitachi Web site titled “Hitachi Kokodemo Hakken!” (“You can find Hitachi’s products and services here!”) This is

Hitachi’s corporate statement “Inspire the Next” expresses our

because we want people to know that we have many approaches

spirit. During this time of change in society, we want to con-to CSR activities.

tinue inspiring new ideas and create people-friendly companies,

Just as the business areas of Hitachi companies are broadand varied, the people targeted by our CSR activities are also di-through new strategies that only Hitachi can do and that Hitachi
alone can do because of what it is.

verse and complex. It is, of course, important to provide accurate

But technology can sometimes cause unforeseen problems.

reporting, but in order to ensure that our activities are not just

In a broad sense, it may have negative impacts on the environ-in a narrow range, it is also important to listen to the opinions ofment and society. Thus, we are prepared to evaluate things in apeople who are at various levels and differ in perspective and age.

balanced way, to ensure that the checking functions are working
properly, and to conduct careful examinations at many levels

Towards Management Transparency andCreation of Good Work Environments

to ensure that no problems arise. And if a problem does arise
inadvertently, we will investigate carefully and make quick corrections. It is also important to try to limit the damage to the smallest

In June 2003, we conducted some management reforms,

extent possible.

including a move toward adopting the committee system. The

In the future, we will continue to fulfill our corporate respon-goals were to improve management supervision and transpar-

sibility as a “best solution partner” for our stakeholders. We willency, and to improve the flexibility of management by clarifying

care for each and every person as the basic principle of our

the responsibilities and powers at the management unit level.

corporate activities.

In addition, we invited four outside leaders from the areas ofcorporate management, government administration, and law
to join as directors. Through this, we receive objective external
opinions, and we have created a structure to manage, infusedwith the spirit of regulatory compliance.
Meanwhile, creating a good work environment is one of the

Etsuhiko Shoyama
President and Chief Executive Officer

Hitachi’s Social Responsibility Initiatives(Environmental and Social)

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

Since Hitachi, Ltd. was established in 1910, it has aimed to contribute to the economic andsocial development using the Hitachi Group’s technologies. The basic credo includes aspects ofcorporate ethics, a customer first philosophy, the satisfaction of employees, and activities as a
Original buildings where Hitachi started
in 1910 as a repair shop for electricalequipment.

corporate citizen. These principles have been carried on for generations.
In recent years, various issues have surfaced in Japan and around the world relating to thesocial responsibility of corporations. The circumstances in which corporations operate havechanged dramatically, and corporations are now expected to be more socially responsible thanever and society has challenged the role of corporations from the perspective of corporate social
responsibility (CSR). As a group of corporations that are active internationally, the Hitachi Groupalso views these as important topics.
In this context, we have reviewed initiatives relating to corporate responsibility, and havestrengthened the Hitachi Group’s responses, clarified guidelines for proactive information disclosure, and in December 2002, created the meeting to prepare for CSR. This body is comprisedof departments responsible for Group operations, brand strategies, customer satisfaction,
global business strategies, labor and personnel, legal affairs, social contribution, environmental
protection, quality assurance, materials procurement, and regulatory compliance. It coordinatesinterdepartmental sharing of information from inside and outside the company, and has promoted
research and discussions about operating guidelines, details of activities, and other matters.
In addition, to keep up with changes in the corporate economic and social environment andto avoid gaps between internal corporate values and the expectations of society, we created theAdvisory Board Meeting in 1999, and invited objective input from external experts. In June 2003,
the company adopted the Committee System. We aim to accelerate the pace of management
operations, and by inviting directors from outside the company, also aim to ensure that management is fair and transparent.
In June 2004, the CSR Promotion Committee was established under the CEO of Hitachi,Ltd., chaired by Isao Uchigasaki, Chief of the Hitachi Group Headquarters. This step created thestructure to promote CSR initiatives on a group-wide level, both in Japan and overseas. The CSR
Promotion Department was also set up within the Legal and Corporate Communications Division.
Main pillars of activities include example setting by the top management, creation of a dynamic company through products and technology, information disclosure and communications,
corporate ethics and respect for human rights, environmental protection, promotion of social contribution activities, creation of a good work environment, and sharing of awareness about social
responsibility. It will work actively with the aim of helping every person involved in the company towork to make it the “Best Solution Partner,” while promoting linkages with other companies in the
Hitachi Group.

Environmental Report
The Hitachi Group has created a vision based on its guidelines, to achieve good environmental management.
We have also established an environmental action plan and are working to achieve its objectives.

Environmental Initiatives

9

Basic Environmental Philosophy
Hitachi’s Environmental Vision (Sustainability Compass) expresses the direction of the Hitachi Group’s environmental activities until theyear 2010, and is based on Hitachi’s Basic Philosophy for Corporate Activities P 8 and Environmental Protection Action Guidelines.

Environmental Protection Action Guidelines
As part of Hitachi’s Standards for Corporate Activities (A Basic Philosophy), these guidelines express standards in response toenvironmental issues concerning the Company’s business activities.
1.
2.

3.
4.
5.
6.
7.
8.
9.

In recognition that problems affecting the global environment are serious matters for all humankind, harmony with the environment will be a top management priority throughout the Company.
By establishing a structure for the promotion of environmental preservation, enacting regulations relating to the environment, setting environmental impact
reduction targets, and similar measures, officers and site directors in charge of environmental promotion will promote environmental preservation activities. Moreover, environmental audits will be used to confirm the efficacy of activities and our efforts towards continued improvement.
Through a concise understanding of how best to resolve environmental problems facing the world, the Company will work to make contributions to society
through the development of highly reliable technologies and products that meet those needs.
The Company gives due consideration to reducing the environmental effects a product will have throughout its entire life cycle, from the R&D and design
stages, through to production, logistics, use, and disposal.
The Company will investigate and examine the effect of its business operations on the environment and seek to introduce new technologies and materials
with superior functionality regarding environmental safety, energy conservation and resource conservation.
In addition to observing international, national and local regulations with regard to the environment, the Company will develop its own standards where
necessary to maintain environmental conservation.
With regard to overseas activities and the export of products, the Company will give due consideration to the effects of products on the local environment,
and implement measures in response to the wishes expressed by local societies.
In addition to working towards enhancing the environmental awareness of its employees, the Company will focus its activities on society at large, contributing to that society, of which Hitachi is a part, through environmental preservation activities carried out from a broad perspective.
Should an environmental problem arise as a result of the Company’s business activities, the Company will take appropriate steps to minimize the impact
on the environment.

Adopted March 1993

Hitachi’s Environmental Vision (Sustainability Compass)
Hitachi Group Companies worldwide will work to help create a corporate community in balance with nature and to open up the way toa sustainable society. For the sake of future generations, we will act as a good corporate citizen and use our products, services, andtechnologies to propose innovative new business models to society while taking progressive action in four major areas:N

Nature-friendly Products & Eco-factories✱ Improve resource productivity✱ Promote sustainable use of energy and resources

Worldwide Stakeholder Collaboration✱ Proactive information disclosure✱ Proactive collaboration with stakeholders

W

Core Value
A corporate community
in balance with nature and thecreation of a sustainable society
A Pioneering Spirit Responsibility
for future generations
Global citizenshipE
Eco-mind & Management✱ Strengthen management systems that promotesustainable business activities✱ Foster advanced eco-minds among employees
and their families

Sustainable Business Models✱ Expand sustainable business models✱ Promote the spread of business operations witha reduced environmental impact

S10

Environmental Management of the Hitachi GroupOur business has grown to what it is today on the principle ofToday the Earth is ringing a warning bell for humanity. It is

contributing to society. We believe that growth requires importantessential that we undertake global initiatives at the global scale.

preconditions: peace of mind, safety and a healthy environment.

In Japan, with the Household Appliance Recycling Law and otherWe established an environmental management center in 1971,

legislation, efforts are under way to move towards a recycling-and ever since then have been working to reduce the environ-oriented society, particularly with consumer products. The Hitachimental impacts and risks associated with our production activi-Group’s environmental activities are expanding based on group-

ties. The Hitachi Group conducts environmental management thatwide targets, not only for consumer products but also for a wide

takes the environment into account in the course of business—range of business areas. To help the progress toward sustainable

in a dynamic way. Our corporate management is based on thesocieties, we are also developing new materials as a part of prod-

philosophy of contributing to society as a “Best Solution Partner,”

uct development, and conducting research into the ideal models

by offering products and services designed with the environment

for cities. Through our future initiatives as a Group, we will bein mind. We propose new sustainable business models to leaddeveloping business models and new technologies that we cansociety towards sound material cycles, work to improve theshare with others.

environmental efficiency of products and services, and include

The Hitachi Group has been able to reduce the total environ-environmental aspects as a key element of the product informa-mental burden of the overall Group by promoting environmentaltion we provide.

activities in an integrated way.

11 As future challenges, weP

To promote environmental activities throughout the entire

will be working on other approaches to reduce impacts on thegroup, we created the Environmental Vision (Sustainability Com-environment, such as developing better materials cycles, andpass) as a group-wide policy. Based on this, we also created afinding alternative substances with lower environmental risks toroad map with targets for 2010. We call it the EcoValue Plan. To

replace certain chemicals. We also believe that one important role

help us achieve the targets set in this plan, every year we createof environmental activities is to spread information and gain thea group-wide environmental action plan. Each business facility inunderstanding of stakeholders. We believe that if corporations

the Group also creates and implements an action plan that incor-

and individuals put their energy into environmental activities withporates specific environmental features. Furthermore, to provide

the same degree of enthusiasm, we will move ahead one step atcriteria to fairly judge and evaluate these environmental activities,

a time, and the global environment will change in a positive way.

we have introduced GREEN 21 (upgraded to Version 2).

Environmental Activities of the Hitachi Group
VisionPlan Based on the Vision

Compare Results with the Plan

Environmental Protection Action Guidelines

Category 4: Eco-products (Manufactured)

Category 6: Eco-factories (Resourc

Sustainability Compass

Environmental Action Plan

GREEN 21 (Version 2)

Environmental Initiatives 11

Environmental Impact Data for Corporate Activities (FY 2003)
Domestic
Total energy consumption (crude oil equivalent)Electricity

New energy types
Electricity

4.12 billion kWh

70 million kWh

1,414,000 kl

Petroleum(crude oil
equivalent)

344,000 kl
Total volume of products manufactured and sold

Heat

Volume of chemical substances discharged or transferred

29 kt
303 ktDischarge or transfer volume for chemical substances covered
under the PRTR law
Volume of discharge for ozone depleting substances
Greenhouse gas emissions
SF6
15 t (352 kGWPt)
PFCs
0.02 t (0.2 kGWPt)
HFCs
Substances subject to emissions regulations
SOX
337 t
NOX

34 kt
338 ktCorporate activities

Materials
Metals 1048 kt
Iron (including steel sheeting)
506 ktStainless steel
Aluminum
75 kt
CopperOther nonferrous metals
135 kt
Plastics 195 kt
Thermoplastics
161 kt
Thermohardened plastics
Rubber
6 kt
Other materials
Chemical substances
Handling volume for chemical substances covered
under the PRTR law
Handling volume for ozone depleting substances

1867 kt including packages

9,000 kl

Total input of materials

Handling volume for greenhouse effect gases

2283 kt (2283kGWPt )CO2 emissions

205 kt131 t1160 t7.1 kt
33 t (1.2 ODPt )44 t (422 kGWPt)
9 t (70 kGWPt)

2134 tTotal volume of waste generated
Waste generated
Recycling (rate)
Volume re-used
Volume of material recycled
Volume of thermal recycled
Final disposal (rate)

565 kt565 ktWaste reduction

83 kt
439 kt (91%)
94 kt (21%)
308 kt (70%)
37 kt (9%)
43 kt (9%)
53.78 million m3

Total volume of wastewater
59.73 million m3

Water consumption
Surface water
Groundwater

7.74 million m3
23.44 million m3

Industrial water

28.55 million m3

Volume of waterreusedBreakdown of wastewater by destination
Public waters
41.56 million m3
Water quality
BOD
361 t

Sewerage system
COD

12.22 million m3
234 t

97.9 million m3

INPUT

OUTPUT
Overseas

Total energy consumption (crude oil conversion)

613,000 kl

Electricity

248,000 kl

1.54 billion kWhPetroleum(crude oil equivalent)

CO2 emissions

1544 kt (1544 kGWPt)

Volume of chemical substances released or transferred
10 million kWh

Total input of chemical substances
Chemical substances
Handling volume for chemical substances covered
under the PRTR law

15.9 kt

9.97 million m3

Water consumption
Surface water
Groundwater3

2.87 million m
2.16 million m3

Industrial water

Corporate activities

New energy types
Electricity

34.94 million m

Volume of waterreused
7.21 million m3

Discharge or transfer volume for chemical substances
covered under the PRTR law
40 t
NOX
SOX

0.6 ktTotal volume of waste generated

143 ktWaste generated

143 ktRecycling (rate)

58 kt (52%)

Waste reduction
Final disposal (rate)

32 kt
53 kt (37%)

8.05 million m3

Total volume of wastewater
Breakdown of wastewater by destination
Public waters
3.98 million m3
Water quality
BOD
214 t

22 t

Sewerage system
COD

4.07 million m3
397 t

Environmental Initiatives 13

12
Environmental Action Plan and Results
This table shows the Hitachi Group’s Environmental Action Plan and results in FY2003, and our roadmap for the future, the EcoValue
Plan, which will help us realize our Environmental Vision.
FY2003 Action Plan
Environmental Management Strategy

2003 Performance Evaluation
FY2003 Actual Performance

Further develop and advance environmental management

Target achieved

Needs improvement

Evaluation EcoValue Plan (FY2010 targets)

See Page

Create environmental value as a corporate group9 – 10

9 – 10Eco-mind & Management
Promotion of environmental management

Aim for consolidated management, work to improve and strengthen environmental management structure to respond to stricter environmental regulations
Actively incorporate environmental management into business strategies, and strive to create environmental value

Number of companies covered by environmental impact reports:
Japan: 224 Overseas: 34 Total: 258

Promote consolidated environmental management. Become a corporate group that creates environmental
value.

GREEN 21 (Version 2)

Improve Green Point (GP) level. Target level for FY2003 was 426 GPs

GP level: 441 points

Target GP levels: 533 GPs (FY2004), 640 GPs (FY2005). Continuous improvement toward GREEN 21 (Version 3). 14

Environmental Education

Encourage “eco-mind” attitudes of all employees and families
Boost employee education and number of licensed and certified personnel

Distributed information pamphlets to employees and families (Mar. 04)
Internet training completed for 22,000 employees

Establish environment-friendly lifestyles

15

Environmental Management System

Improve internal environmental auditing at Hitachi Group companies (improve environmental management systems at overseas affiliates)

ISO 14001 certification acquired at 256 sites

Implement continuous improvement using management systems

15

Establish environmental accounting throughout the Hitachi Group. Actively promote environmental management practices.
Promote the internal use of indicators for environmental impact reduction, etc.

Conducted environmental accounting in FY2003
Expanded the use of indicators showing reduction of environmental impacts

Continue to reduce environmental impacts effectively

15

Expand eco-products offered (target for FY2003 was 60%)
• Set higher targets for eco-products in FY2004 and beyond

Expanded ratio of eco-products offered (achieved 66%)
• Information and communication systems, digital media, consumer devices: 77% achieved• Environmental efficiency and factors indicators: did trial assessments on
6 products

Expand eco-products offered
Target ratio of all products: 80% in FY2006, 100% in FY2010
Products covered: Information and communication systems, digital media, consumer devices
Expand offering under “Eco Products Value ” plan and “Environmental Top-Runner ” products

Promote green procurement

Improved the green procurement system

Conduct investigation of chemical substances in products (FY2007)

19

Completely phase out lead solder in printed circuit board connections for electrical and electronic equipment (FY2003 in Japan)

Accomplished (Mar. 2004)

Completely phase out the use of hexavalent chromium, lead, cadmium, mercury, PBB, and PBDE (by the end of FY2004 electrical and electronic equipment
covered by RoHS directive)

Products covered: Electrical and electronic products in categories covered by the RoHS directive
Substances covered: Hexavalent chromium, lead, cadmium, mercury, PBB, and PBDE. Regions covered not
specified

19

Started using alternatives
Accomplished (Mar. 2004)

Complete phase out products containing HCFCs (overseas, by end of FY2006)

19

CO2 emissions from transport were 425 kt (a 17% increase from FY2002)
Transport factor: 1.1 (compared to FY2002)
Reduced CO2 emissions per unit of production by 7% (compared to
FY1990)
Reduced CO2 emissions by 20% (compared to FY1990)
Limited SF6 emissions to 5% or less of quantity purchased

Reduce environmental impacts of transporting products (through modal shift , greater use of low-emission
vehicles)23

Nature-friendly Products & Eco-factories
Nature-friendly
Products

Eco-Products• Use environmental efficiency and factor indicators on trial basis with “showcase” products

Completely phase out products containing HCFCs
Increase transport efficiency
Eco-factories

Global Warming Prevention(in Japan, FY2003)

Reduce environmental impacts of transporting products (emissions of CO2, NOx , and particulate matter , etc.)
Promote the internal use of indicators of transport efficiency, etc.
Systematically reduce CO2 emissions per unit of production
Systematically reduce CO2 emissions (Japan)
Systematically reduce emissions of greenhouse gases other than CO2(follow industry action plans for HFCs , SF6 , PFCs )Reduced PFC emissions by 12% (compared to FY1995)

Chemical SubstanceManagement

Properly manage chemical substances, reduce emissions, and systematically reduce emissions of targeted substances
compared to FY2000)

Effective use of water
resources

24 – 25

Reduced targeted substances by 45% (compared to FY2000)

Completely phase out emissions of prohibited substances (FY2005), reduce targeted substances by 30%(FY2005)

26 – 27

Conducted proper controls

Prepare and implement a disposal plan (2016)

27

sites

Reduced to 69% (compared to FY1998)

28

Control the amount of waste and reusable waste generated
Promote zero-emissions initiatives

Prepared plans for each business facility
Achieved at 42 facilities

Reduce amount of waste going to final disposal sites (to 80% or lower by FY2005, compared to FY1998)(to 70% or lower by FY2010, compared to FY1998))
Set targets for each business facility and systematically reduce waste disposal (FY2005)
Expand zero-emissions initiatives

Recycle cooling water, strive to reduce water usage by boosting production efficiency, etc.

Reduced to 76% (compared to FY2001)

Reduce water usage

Properly store and control (control quantities, prevent leakage, etc.) electrical equipment containing PCBs
Waste Reduction(reduce by 15% in FY2003

Reduce CO2 emissions per unit of production by 20% in FY2005, and by 25% in FY2010 (both compared to
FY1990)
Systematically reduce CO2 emissions by 3% in FY2005 and by 7% in FY2010 (compared to FY1990)
Reduce emissions of greenhouse gases other than CO2 (follow industry action plans for HFCs, SF6 and PFCs)
For SF6, reduce emissions to 3% or less of quantity purchased (FY2005); for PFCs, reduce emissions by atleast 10% in FY2010 (compared to FY1995)
Increase eco-factory value

18, 20, 21

Reduce the amount of waste going to final disposal(transformers, condensers, etc.)

28

Worldwide Stakeholder Collaboration
Environmental Communication

Improve information disclosure and communications with stakeholders• Disclose information through public relations and advertising (e.g., highlight environmental aspects when announcing products)• Regularly release information about production sites through environmental reports and Web site, etc.
• Actively participate in environmental activities of other organizations, including exhibitions, lectures, local community activities, etc.
• Hold “environmental town meetings,” etc., for individual Group companies, and in each local area
• Conduct exchanges of opinion through questionnaires, surveys, information sessions, and by accepting study tours, etc.
Global Citizen Activities

Become involved in ways that contribute to the community by planning volunteer activities and encouraging employees to actively participate in local volunteer activities• Raise environmental awareness in local communities by providing information about environmental activities, and by opening Hitachi facilities to the public, etc.
• Conduct activities in cooperation with local NGOs • Conduct tree-planting and cleanup activities at the local level

Expand “environmental town meetings” internationally

20 – 30• Published Hitachi Group’s “Environmental Sustainability Report 2003”(May 2003), as well as 28 separate reports for Group companies andindividual facilities• Provided information on the Web site for 42 companies and facilities• Booth at Eco-Products 2003 exhibition (Dec. 2003)• Conducted an “environmental town meeting” (Sept. 2003))• Received 31 responses to questionnaire in environmental report
36 – 37• Conducted environmental education with local primary school students• Provided support for environmental non-profit groups (Hitachi Environment Foundation)

Expand cooperation with communities

Sustainable Business Models
Creation of Sustainable Business Models
Environmental Solution Projects

Create structure to consider sustainable business models. Develop strategies.
• Expand the collection and recycling of used products• Promote R&D that contributes to environmental protection through products and services• Plan and implement environmentally beneficial activities (ecosystem restoration, independent power production, investment in renewable energies, funding assistance, etc.)
Expand and spread environmental solution model businesses• Make use of the Hitachi Group’s environmental protection technologies, and expand the “total solution” approach, including low environmental impact
businesses and environmental information solutions

The assessment for the “performance evaluation” symbols in the table was done as follows: If a target existed for FY2003, we used that target value; if no target existed for FY2003, we assumed a continuation of theannual rate of improvement.

Expand product recycling systems, leasing, and rental businesses• Launched collection and recycling service for home-use personal computers (Oct. 2003)• Received Nanotech Grand Award 2004 (for PC running on fuel cell, etc.)from Nanotech Executive Committee

31 – 33

Eco-mind & Management
Hitachi works to raise the environmental awareness of its employees. We build and continuously improve
our management systems to promote environmental initiatives.

14
Environmental Management
SystemHitachi’s Senior Executive Committee
for Environmental Policy, a managerial
level committee chaired by the president,
assesses and determines the environmental policies and strategies for theentire Hitachi Group. The environmental
policies adopted here are delegated to theEnvironmental Management Operations
Committee to be implemented and communicated throughout the organization.
The Environmental Committee (and each
sub-committee) works to attain environmental goals and tasks, by conducting
investigations and developing useful evaluation methodologies and techniques. It
also designates environmental operations
officers, within the Hitachi’s Group’s business groups, subsidiaries and affiliatedcompanies, who are responsible for managing environmental matters within eachenvironmental goals.
To accurately judge the overall
impacts of Hitachi’s diverse operations
on a consolidated basis, the GREEN 21
system evaluates 53 distinct items in eightcategories: Environmental Management,
Risk Management, Eco-Mind, EcoProducts, Prevention of Global Warming(Eco-Factories), Resource Recycling(Eco-Factories), Worldwide Stakeholder
Collaboration, and Sustainable Business
Models. The period covered is fiscal 2002
to 2005. Progress is rated on a scale of 0
to 5; a rating of 2 is given for an averagelevel of achievement, 4 for meeting thegoal, and 5 for surpassing the goal. The
ratings are then multiplied by weights,
based on each item’s relative importance.
The maximum within each category is 100“Green Points” (GPs), giving a maximum
possible rating of 800 for all 8 categories.
Adjustments are made in cases wherecertain items may not be applicable in aorganization, and tailors environmental
activities to each business.
Both within Japan and overseas, theHitachi Group shares information such as
about laws, regulations and market trends,
and reports on relevant topics to ensurethat activities are timely and effective.

GREEN 21 ( Version 2 )Evaluation Criteria
To assure continuous improvements in
our environmental management activities
and the reduction of environmental risks,
Hitachi utilizes the GREEN 21 (Version2) evaluation system, which employs numerical scores to measure progress. Thisapproach assists with the management ofenvironmental activities within each operations unit, by providing ratings of progress
towards future targets; of the detailed
goals established for each target; and of
the procedures put in place to achieve ourEnvironmental Management System
President

Senior Executive Committee
for Environmental Policy

Assesses and sets environmental management
policies at executive management level (annual)

Environmental Management
Operations Committee

Enforces environmental policies and develops environmental information and activities (semi-annual)Business groups
Group directors, CEOs,
environmental operations
officers

Regional Environmental Committees

Corporate Environmental Policy Division

Production facilities
Operations heads and environmental management
officers
Affiliated companies
Presidents and environmental management
officers

Environmental Committee

Assesses environmental issues anddraws up policies (semi-annual)

Eco-Management Committee

Handles environmental management operations, educational activities, and information releases

Eco-Products Committee

Promotes the development of eco-products andthe reduction of harmful substances used in products

Eco-Factory Committee

Reduces environmental impact caused
by production activities

Major affiliated companies

Production facilities

Presidents, environmental
operations officers

Operations heads and environmental management
officers
Affiliated companies

1,121 firms covered underconsolidated reporting

Presidents and environmental management
officers

GREEN 21 Version 2• Activity period: FY2002 to FY2005• Evaluation method: absolute points• Target• Green Point Average: Results and Targets

FY2002

FY2003

FY2004

FY2005GPs (Green Points)

377*1

426

533

640

• Evaluation Criteria (8 categories/53 performance indicators)
No Category

Principal performance indicators

1 Eco-Management

Environmental management, action plan, environmental accounting

2 Eco-Management—Risk Management

Compliance with laws and regulations, setting of independent
standards

3 Eco-Minds

Employee training and education

4 Eco-Products

Implementation of product and service assessment, green
procurement, distribution

5 Eco-Factories—Prevention of Global Warming Energy saving at operation sites
6 Eco-Factories—Resource Recycling

Environmental Management
57 GPs

*1 Performance results for FY2002.

Year

Waste reduction, chemical substance management

7 Worldwide Stakeholder Collaboration

Information disclosure, communication and community activities

8 Sustainable Business Models

Management systems, planning, product recycling, environmental
restoration activities

Sustainable Business
Models37 GPs
FY2003: 441 GPs(target: 426 GPs)

Risk Management
77 GPs
FY2005 Target:
640 GPs

Worldwide Stakeholder
Collaboration
49 GPsEco-Minds
62 GPs
FY2002: 377 GPs

Resource Recycling
61 GPsPrevention of Global Warming
53 GPs

Eco-Products
45 GPsEco-mind & Management 15
given business unit.
Starting in fiscal 2002, the Green Point
scores were added as one of the criteria
for evaluating business performance inthe Hitachi Group. The results are usedin evaluating appropriate performancefor each buisiness group, thus serving as
an incentive for enhancing environmental
activities, in addition to improving social
contributions and profitability. Based on
this system, the management team withineach buisiness group is able to check
how it is doing, and this leads to further
improvements and greater efforts toachieve the environmental targets. A scoreof 441 GP was achieved in fiscal 2003,
which exceeded by 15 GP the target of
426 GP that had been set for the year. In
particular, the categories of Eco-Products
and Sustainable Business Models saw
a 18% improvement over the past year,
thanks to an expansion of environmentally friendly product sales. With respect
to Eco-Products, greater efforts will beneeded in the future, due in part to theneed to completely phase out the use ofhazardous chemicals in products coveredby the European Union’s RoHS directive
P18 .

Environmental Education
and Training“Eco Stories for Everyone” Booklet for
Households of Hitachi Employees

Environmental Education and Training System

working in operations that have significant
environmental impacts.
In March 2004, we distributed “EcoStories for Everyone” to the 200,000
households of Hitachi Group employees
in Japan. This illustrated booklet explainsenvironmental activities in a way that iseasy for readers of all ages to understand.
It shows that employees and their families
can make a big difference if they are awareof the environmental impacts of their actions. In the hopes that more people willtake the opportunity to act, we have also
made the booklet available on Hitachi’s
Web site.

The Hitachi Group is providing general education to raise the overall environmental
knowledge and awareness of all employees. It also offers trainings in specialized
fields so that our employees learn about
environmental technologies and put theminto practice.
In terms of general education,
management-level personnel are given
more learning opportunities than in thepast, giving them a keen appreciation of
the importance of environmental management, and this is being reflected in ourmanagement policies. Training of generalemployees is being promoted through theInternet, with some 22,000 employees
having completed training courses asof March 2004. Specialized education
is being offered to train environmental
management system auditors, as well
as design and manufacturing personnel,
in areas useful for the development of
Eco-Products. Training based on ISO
14001 is also offered in order to promote
environmental activities and to reduce theuse of resources and energy at our facilities. Specialized trainings and emergency
drills are also conducted for employees

Environmental Management
System Based on ISO 14001
The Hitachi Group addresses environmental issues through its environmental
management system, which is based on
the internationally-recognized ISO 14001
standards. The first ISO 14001 certificationin the Hitachi Group was acquired in July
1995, and the current status of certification is shown below. Our manufacturing
operations were all certified by the end of
fiscal 1999, and our non-manufacturing
operations, such as software and service
companies, all received their certification

General employees
Group training

Administration

Specialized education Auditor training

Executive management level

Head auditor training

Eco-Products development training
General education
Training basedon ISO 14001

Eco-mind education (via the Internet)

Education about environmental management

Specialized education Training for employees working in certain operations
General education

Eco-mind education for each company/site

Status of ISO 14001 Certification
Japan

No. of Certified Sites

Overseas

Total

Production Sites

Non-production Sites Production Sites

Non-production Sites

148

52

2

54

256

Japan
EuropeHokkaido/Tohoku regions
Kanto/Koshinetsu regions
Hokuriku/Chubu regions
Kansai region
Chugoku/Shikoku/Kyushu regions
Total

5

http://greenweb.hitachi.co.jp/pdf/eco.pdf
Asia

39

14
144
17
11
14
200

America12

16
by the end of fiscal 2002. Because ofchanges in the companies covered underconsolidated reporting and in activities
covered, the number of ISO 14001-certified sites currently totals 256.
Each site pursues continual improvements, undergoing internal audits toassess progress, and also receiving
regular inspections by external certification
bodies. Internal audits are conducted byapproximately 2,000 accredited auditors
who have undergone specialized training.
Since 1973, environmental audits havecontinually been included as a part of management auditing of business operations.

System (since 2000), in order to provide
an even wider range of environmental
management information.
Utilizing these systems, we are now
able to carry out our environmental management activities in a timely, effective andreliable manner, share information effectively in-house, and also release accurate
environmental information externally. Thissystem has been highly evaluated in thebusiness world, and other companies
having purchased versions of our system
for their own use; it has in fact become aleading product in the environmental solutions business.
In fiscal 2003, we developed the Chemical Substance Management System, whichlinks our Green Procurement System andproduct design information. With this system it has become possible to act quickly
to reduce the quantities of chemicals usedin our products or to find alternatives.

Integrated Environmental
Management System
The Hitachi Group introduced an information technology-based Integrated
Environmental Management System in
1999, to handle the expanded environmental management activities (i.e., covering the consolidated reporting of the entire
group), and to reflect the growing diversity
and extent of those activities.
In the ensuing years, we haveaugmented this system by developing a
Green Procurement System and a Waste
Contractor System (in 2001) and an Environmental Performance Data Evaluation

Our Approach toEnvironmental Accounting
To promote greater effectiveness and continual improvements in our environmental
investments and activities, Hitachi introduced an environmental accounting system in 1999. Its purpose is to help people
understand our corporate approach to theenvironment, by providing information on
how we allocate management resources
for environmental activities, and on thevalue created through environmental
technologies and Eco-Products.
In addition to investments in plant andequipment for environmental purposes,
which we have been reporting since fiscal
1997, the costs covered in our environmental accounting also include ordinary
expenditures, such as for research anddevelopment, as well as the costs ofoperating and managing environmental
equipment and facilities. Our activities canbe understood both in terms of economic
benefits, which can be evaluated in monetary terms, and material benefits, which canbe evaluated based on the degree to whichburdens on the environment are controlled.
Economic benefits are calculated based ontangible data. Material benefits—which result from Hitachi’s fundamental principle ofcontribution to society by developing superior technologies—are evaluated based not
only on the lower environmental impacts
during the manufacturing process but also
during the use of our products. We strive
for efficiency in reducing environmental
impacts, using an “environmental burden
reduction ratio” to evaluate the extent towhich each type of environmental burden is
reduced per unit of expenditure.

Environmental Audit System
Types of Environmental Audit

Frequency

Auditors

Content

Environmental Policy Office audits

Once every 3 years

Auditors from Corporate

Prevention of environmental problems

Environmental Policy Division

Environmental management from a managerial standpoint

At least once a year

Auditors from the facility to be audited

Efficacy of environmental management systems at the departmental level(performance audits)
ISO14001 environmental audits

Compliance with laws and regulations
Establishment of independent environmental objectives and targets
Audits that meet ISO 14001 standards

Once a year

Auditors from an accredited facility otherthan the one to be audited

Suitability as well as appropriate implementation and maintenance of environmental
management systems

Integrated Environmental Management System
Environmental Management

Environmental operations

Environmental accounting

Environmental Activities
Design for Environment (DfE)
Green procurement
Chemical substancemanagement
Energy saving
Waste reduction•Evaluation of environmental management indicators•Life Cycle

Design Support Tools
Assessment (LCA )•Recyclability Evaluation Method (REM )•Green procurement (A Gree'Net )•Chemical Substance Management System•Systems for recording eco-products and disseminating
information•Environmental efficiency evaluations (products and transportation)
Factory Management Support Tools•Energy saving measurement (H-NET )•Industrial waste processing systems•CO2 emissions reduction•Chemical substance management system (CEGNET )•Material balance management system (total volume ofsubstances handled)

Product
Development
Division
CAD
data
Product
data

Product Evaluation System

GREEN 21

Design for Environment (DfE)•Environmental Performance Evaluation System
Integrated environmental management system

Environmental management
systems (EMS )Chemical Substance Management System

Environmental Management System Tools•ECO ASSIST (document management, etc.)

Hitachi Group Green
Procurement System
ChemicalSubstance
Data for eachsupplier/partLife Cycle Assessment
Recyclability Evaluation
Method (REM)

InternetEco-mind & Management 17
Due to changes in the coverage ofenvironmental accounting caused by organizational restructuring, both the costs
and the economic benefits of our activities
decreased by roughly one-tenth in fiscal
2003. Research and development costs(including design costs) aimed at reducing
the environmental burdens of our products
accounted for 41% of environment-related
costs, while at the same time we succeeded in reducing the energy consumed
during the use of our products by ap-

proximately 500 million kilowatt-hours.
We will continue striving to contribute tosociety not only by reducing the directenvironmental burdens of our facilities, butalso through these kinds of improvements
in our products.

Cost(Unit: billion yen)

Item

Costs

Overview

Expenses

FY2000FY2001

FY2002

FY2003

1.Business area costs

35.96

38.21

35.00

29.02

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

2.Upstream/downstream costs

3.58

3.27

2.40

2.76

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

3.Management activity costs

8.35

11.09

10.41

12.29

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

4.Research & development costs

30.03

34.36

38.21

35.48

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

5.Social activity costs

3.23

0.53

0.52

0.37

Environmental improvements such as afforestation and beautification, PR
and publicity expenses
Environment-related measures, contributions and levies

6.Environmental damage costs

0.93

0.82

0.86

0.51

Total expenditure

82.08

88.28

87.40

80.43

21.25

18.01

14.97

10.17

Total investment

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

Effect• Economic Effect*1(Unit: billion yen)

Item

Expenses

Overview

FY2000FY2001

FY2002

Net income effect

5.58

5.09

6.08

FY2003
4.06

Profit on sales of recycled waste

Reduced expenses effect

12.03

13.56

12.11

11.67

Reduction in material costs due to resource saving, reduction in waste
treatment costs due to reduced waste, reduction in power expenses due toenergy savings

Total

17.61

18.65

18.19

15.73

FY2001

FY2002

FY2003• Physical EffectItem

Expenses

Overview

FY2000
1. Reduction in the amount of energy usedduring production

169 million kWh
49,000 households

331 million kWh
95,000 households

189 million kWh
55,000 households

127 million kWh
37,000 households

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

2. Reduction in the final amount of waste
disposal

6,051 t20,000 households

7,369 t25,000 households

5,210 t18,000 households

5,612 t19,000 households

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

3. Reduction in the amount of energy
consumed during product usage

844 million kWh
243,000 households

552 million kWh
159,000 households

742 million kWh
214,000 households

507 million kWh
146,000 households

Decrease in energy requirements of Hitachi products

Benefits of capital investment are calculated using a five-year constant rate, as with cost.

*1. Economic Effect includes the following items.
1.Net income effect: Benefits for which there is real income, including the sale of resalable material and income from environmental technology patents.
2.Reduced expenses effect: Reduction in electricity and waste treatment expenses arising from environmental impact reduction activities.

Efficiency of Environmental Impact Reduction
FY2000FY2001

FY2002

Reduction in energy used during production

41 million kWh/billions of yen

66 million kWh/billions of yen

53 million kWh/billions of yen

FY200344 million kWh/billions of yen

Reduction in amount of waste for final disposal

1,170 t/billions of yen

1,750 t/billions of yen

1,200 t/billions of yen

1,690 t/billions of yen

This is an indicator of the efficiency of environmental impact reduction, calculated as the amount of environmental impact reduction divided by expenses needed for the reduction.

Cost Breakdown Ratio by Industry Segment
Electronic Devices

Digital Media & Consumer Products
6

16

Economic Effect Breakdown Ratio by Industry Segment

Power & Industrial Systems
38

Information & Telecommunication Systems

10

10

5

Power & Industrial
Systems 23

Digital Media & Consumer Products
5

Information & Telecommunication Systems

High Functional Materials & Components
55
Logistics, Services & Others 2

15

2Power & Industrial
Systems 26

Digital Media & Consumer ProductsHigh Functional Materials & Components
49

7

Information & Telecommunication Systems

Logistics, Services & Others 1

Investment Breakdown Ratio by Industry Segment
Electronic Devices

Electronic Devices(%)
High Functional Materials &Components 29(%)

Logistics, Services & Others 1

Investment Breakdown Ratio by Countermeasure
(%)

(%)

Waste Reduction
Prevention of Global
Warming 28

4Pollution Prevention
59

Other
9

Nature-friendly Products & Eco-factories
Hitachi designs and manufactures products with the environment in mind.

18
goal of 60% that had been set for fiscal
2003. We are aiming to boost these ratios
for some categories, including consumer
items, to 80% in 2006 and 100% in 2010.
As a result of these efforts, 957 Hitachi
products in 14 categories were certified
under Japan’s Law on Promoting Green
Purchasing as of March 2004.

Life Cycle Assessment
System
To minimize the environmental burden
at each stage of a product’s life cycle ,the Hitachi Group develops products
based on our Design for Environment
Assessment System. This is an evaluation
system we have applied since 1999 thatincorporates concepts embodied in the
Design for Environment (DfE) concept.
Products are assessed with respect toeight criteria, namely resource reduction,
product longevity, resource recycling,ease of disassembly, ease of processing,environmental safety, energy conservationand provision of information. We define
as “Eco-Products” those products that
achieve at least 2 on a scale of 0 to 5 foreach of these eight criteria, as well as anaverage score of 3 or higher. *1
As of March 2004, 761 products (2,864
different model types) qualified as EcoProducts, accounting for 66% of ouroverall sales volume, and exceeding theing and lifespan. The first measure is theratio of the product’s value to the amountof greenhouse gases released during thelife cycle of the product (Prevention of
Global Warming Efficiency); the second is
the ratio of the product’s value to the sumof the amount of new resources that are
extracted from the Earth for its production
and the amount of waste remaining when
the product is disposed of (the Resource
Efficiency). We also track product efficiency improvements, defining two “factors”—the “Prevention of Global Warming
Factor” and the “Resource Factor”—that
measure improvements in efficiencies
with respect to a reference year. In fiscal
2003, six products were evaluated in thisway. In fiscal 2004, this evaluation will be
extended to cover representative products
from each of our product lines.

*1. We provide information about products that
qualify as “Eco-Products” by using data sheets
and an Eco-Product symbol in our brochures andon our Web site.

An Assessment System that
Considers Product Functions
To utilize resources more effectively,
we have developed an “Environmental
Efficiency” index that shows the value
created while controlling environmental
impacts and resource consumption. This
index evaluates products by calculating
two measures of efficiency with respect toa product’s value in terms of its function-

Approach to Complete Life Cycle Product Design
Definition of Environmental Efficiency

Resource Conservation

Prevention of global warming efficiency =Component
Materials

Recovery andDisassembly

Usage

Distribution

Production

Proper
Disposal

Product life span*1 x Product function
Volume of greenhouse gas emissions throughout the lifecycle of a product

Reuse and Recycling

Resource efficiency =Product life span x Product function

Design for Environment Assessment System∑ Each resource value coefficient x (Volume of new resources used in a

product’s lifecycle*2 + Volume of resources discarded as waste*3)

Assessment Criteria• Resource reduction• Ease of disassembly• Energy conservation• Product longevity• Resource recycling• Ease of processing• Environmental safety• Provision of information

Definition of Factors
Prevention of global warming factor =Prevention of global warming efficiency for the product being evaluated

Eco-Product Registration Trends

Prevention of global warming efficiency for reference productResource factor =Total sales
comparison (%)
80761 products
2,864different
model types

Actual value

Resource efficiency of the product being evaluatedResource efficiency of reference product
80

66

Target value
568 products
2,056 different
model types

60*1. The specified usage period for a product.
*2. The volume of resources used to manufacture a product - the volume of resources reused or recycled.
*3. The volume of resources used to manufacture a product - the volume of resources with the potential forreuse or recycling.

60

46
40

240 products
1,504 different
model types
22

Evaluation of Factors
30

20
15
3
0
2000

2001

2002

2003

2006 (FY)(target)Product

Prevention of Global Warming Factor

Resource Factor

Washing machine

5.0

2.3

Refrigerator

4.4

1.2

Air conditioner

4.6

2.3

Plasma television

5.2

4.8

Gigabit router

26

32

Nature-friendly Products & Eco-factories 19

The RoHS Directive and thePhase-Out of Lead Solder
and HCFCs
In line with the European Union’s RoHS
Directive (on the restriction of the useof certain hazardous substances inelectrical and electronic equipment), theHitachi Group is working to completely
eliminate six chemical substances fromapproximately 70 products by the end of
fiscal 2004. The development of alternative technologies has been completed forabout half of the affected products. We
have developed three models of RoHScompliant straight fluorescent tube lamps(from Hitachi Lighting, Ltd.), and havebegun selling them in Europe, the UnitedStates, Asia and Japan. We will accelerate
our efforts in the future to develop alternative components and products.
We achieved our goal of eliminating alllead solder, and instead using non-leadsolder by the end of fiscal 2003 for all ofour production in Japan. Our challenge

Calculation Examples for “Environmental
Efficiency” and “Factors” Indicators
Factor Calculation Figure(based on the standard year)
Prevention of Global
Resources
Warming

Product
DVD Video Camera

2.3

3.5

was to find suitable material for assembling components with low heat resistanceonto circuit boards. By adding indium (In)to solder made from tin, silver and copper(Sn-Ag-Cu), we were able to improvereliability and workability, while completely
phasing out lead solder. In fiscal 2003,
we were also able to completely phaseout the use of HCFCs , substances that
deplete the ozone layer and have beenused as refrigerants for refrigerators andair conditioners.

Using Information
Technologies for Green
Procurement
To deliver environmentally sound products
to our customers, Hitachi is promoting“green procurement,” which allows us toprocure materials and components thathave reduced impacts on the environment.
In addition to posting our “Green
Procurement Guidelines” (revised March
2004)*1 on our Web site, we also request

suppliers to provide information throughour Web-based “A Gree’Net” green procurement system. This system provides
information on some 31,000 products
from 4,800 supplier sites.
This information is linked to ourdesign support and materials supply
systems, and is used in the developmentof our environmentally friendly products. In
cooperation with suppliers, we also promote information sharing and the use ofenvironmentally friendly products throughthe “Green Procurement Component
News,” which provides regular updates oncomponents with reduced environmental
impacts, and by hosting our own “Green
Procurement Component Exhibition.” Theexhibition in 2003 featured products thatcomply with the EU’s RoHS Directive, withexhibits from 60 suppliers.
*1.

http://greenweb.hitachi.co.jp/en/pdf/
greenpg.pdf

Green Procurement Activities
Internet: disclosure of environmental information and green procurement details

Supplier (Green Supplier)

Purchasing: purchase of products that have reduced environmental impact
Hitachi Group

Green Companies

Green Procurement System

Sales: providing consumers with products that have reduced environmental impact

Internet: disclosure of environmental information and provision of environmental data sheets and Hitachi’s environmental indicator mark foreco-products
Base model
DZ-MV100

Consumer (Green Consumer)

Evaluation model
DZ-MV580

Green Procurement System “A Gree’ Net”
Item/ProductBase

Current Evaluation

Year of manufacture

2000

2003

Model number

DZ-MV100

DZ-MV580

Product lifespan(set usage period (years))

88

Product function

Pixels1.10 million

1.02 million

Volume (cm3)

7.8×10.8×16.6

6.4×8.9×14.6

Recording time (min60
utes)
Greenhouse gas emissions 3.89(kg/unit)
Prevention of Global
97.2
Warming Efficiency
Resource value coefficient 1

Sharing Information on Green Components“Green Procurement Component
Exhibition”

60
2.66
221
1

New resources used (kg)

1.19

0.61

Resources discarded aswaste (kg)

0.72

0.24

Resource efficiency

198

695

“Green Procurement Component News”

20

Eco-Products and Customer Input - Your “Best Solutions Partner”
We selected six products from each business unit in the Hitachi Group to show how weincorporate environmental factors into design and production. P 2
For this year’s report, we selected six Eco-Products P18 representative of Hitachi’s business units-Information and Telecommunications Systems, Electronic Devices, Power &Industrial Systems, Digital Media & Consumer Products, and High Functional Materials &Components. We explained to customers the key environmental considerations and thedevelopers’ thinking involved in the design of each product. Then we asked what aspects
they evaluated positively, and what improvements they would like to see in the future.
For products that are used widely by consumers—hard disk drives, automotive millimeter wave radar, plasma televisions and air conditioners—we requested feedback fromJapan for Sustainability, an environmental non-governmental organization (NGO). For theitems produced for specialized customers—optical topography devices and ultra finegrained hard metals—we sought the opinions of the actual users.

1. Travelstar 4K80 Series 2.5-inch Hard Disk Drive
Key Environmental Features

This is a hard disk drive used in notebook computers and mobile
computing devices. Recently, much of the demand for hard disk
drives has shifted from general computing to visual media and otherapplications, requiring improved storage capacity. This product has
30% more storage than earlier models.

Despite the increase in storage capacity, this device is 26% more energy efficient than previous models; ituses only one-twentieth of target energy consumption for such devices under Japan’s Energy Efficiency
Law (0.0081 W/GB). Batteries last longer and the unit uses less energy. For environmental reasons, thecircuit board connections are made with lead-free solder and electrodeposition surface coatings are also
free of lead and hexavalent chromium. To reduce the consumption of resources, recycled resin is used for
multiple packaging.

Developer’s Comment
To increase storage capacity of a hard disk drive, it is essential to spin the head disk at a very high speed,
but we were careful to do this without increasing electrical consumption. As a result, we were able toimprove energy efficiency. People say that we have reached the theoretical upper limit for disk capacity. We
really had to hard work to figure out how to consider environmental aspects like going lead free and boosting energy efficiency, at the same time as increasing storage capacity—all in a very short development time.

Customer’s Comment
Hitashi Toyama,
Hitachi Global Storage Technologies“People would generally assume that the product’s unit energy consumption you mentioned increases
directly with any increase in the product’s value-added, but that was not the case here. We can see thatthe benefit of increased hard disk drive capacity is not just greater storage capacity for computers. It also
opens up future possibilities, such as new services like image transmission. This product is an example of
how technological improvements will help shape the future of our society, and the types of benefits such
advances can bring. I look forward to hearing more about how technology can turn dreams into reality.”

2. 76 GHz Millimeter Wave Radar (A sensor device for collision avoidance / mitigation system)
Key Environmental Features

This is a small, lightweight radar device for automobiles. By transmitting radio waves ahead of moving automobiles and detecting thewaves reflected back, it is able to measure the distance to the carahead, as well as the relative speed and angle. It was developed topromote safety and ease of driving, by warning the driver when the
distance between cars becomes too small. This device has better
tolerances to weather condition than those using earlier technologies, such as laser radar, since it uses millimeter wave. This device
can measure the distance from one meter to one hundred meters ormore continuously.

Because this is a product intended to improve the safety and ease of driving in a world that depends somuch on the automobile, we were aware that it would not be appropriate if it had a major environmental
impact, and made an effort to improve it from an environmental viewpoint. We chose lightweight materials
and streamlined the design, and as a result, the weight and volume are 72% less than the previous model.
Also, we have achieved 50% less electricity consumption. Thanks to its reduced weight, it also contributes
to improved fuel efficiency. Because it utilizes an angular position processing that can simultaneously
measure wide angle, there is no need to actuate the antenna mechanically, and so it will also have a longer
lifespan than other products.

Developer’s Comment“We made efforts to make this product small, but I think that it will be necessary to make future models
even smaller. Japan’s Ministry of Land, Infrastructure and Transportation is promoting the Advanced Safety
Vehicles (ASV) project, to encourage the use of vehicles that incorporate high frequency radar and othertechnology to reduce the number of accidents. Ultimately, driving is the driver’s responsibility. But I thinkthat this technology will move toward omni-directional radars, which could be linked to rapidly-opening
airbags and braking in the event when immediate danger is detected.”

Customer’s Comment

Kazuto Nakamura,
Automotive Systems, Hitachi, Ltd.

“Learning about this product, I sensed how corporations have the potential to make positive contributions
to society through new technologies. As you explain, when developing products that are intended tobenefit society, it is important to also consider their environmental aspects right from the beginning. The
automobile can be a dangerous thing, and traffic accident is a serious issue for any society. We really needto think about how improved safety through technological development can transform our relationship withthe automobile. I hope that you can really reach consumers with your vision for a future where technological developments can bring about a better society.”Nature-friendly Products & Eco-factories 21

3. Wooo Series Plasma Television
Key Environmental Features
The Wooo Series incorporates further improvements of the Alternate Lighting of Surfaces Method (ALIS) ,This is a high-definition plasma television that transforms a livingroom into a movie theater. It comes in sizes ranging from 32 to 54
inches. The thin design gives it a stylish look. Its high picture quality,
long life, and improved energy efficiency; have given it the top market share in Japan.

which reduces phosphor wear compared to other flat-panel screens. These displays need only half as muchlight output to give the same picture brightness as conventional flat-panel screens, which gives them alonger lifespan. The estimated lifespan, which is when the panel brightness declines to 40% of maximum, is
60,000 hours. They achieve greater efficiency in light output as well as greater energy efficiency. Televisions
in a typical household are actually in standby mode for about 80% of the day. We succeeded in decreasing
standby energy consumption to less than one watt. Also, by using lead-free solder and haxavalent chromium compounds-free steel plate and plating, we have reduced the use of hazardous substances.

Developer’s Comment“The television and broadcasting industries are moving into the future, such as with the launch of highdefinition broadcasts, and the phase-out of analog terrestrial broadcasting by 2011 in Japan. We thought
about how to impress viewers with the Wooo Series as a next-generation television, and how to improve
quality, lifespan and environmental aspects. Reducing the energy consumption of televisions is the main
environmental concern, but we also worked to reduce energy use in the manufacturing process. In the
future, we will also pay more attention to recycling of used displays.”

Chikara Sato,
Hitachi, Ltd. Digital Media Division

Customer’s Comment“From your explanation, I learned that with these new plasma televisions, you have reduced the energy
consumption during the standby mode, increased the lifespan, selected materials based on environmental
considerations, and that you are working to make environmental information available through the productliterature. I also learned that this technology is superior to cathode ray tubes and liquid crystal displays. Most
households still have conventional televisions, but many people will probably need to replace them in the
coming years, due to the switchover to digital broadcasting in Japan and other countries. It is therefore all
the more important to have manufacturers work to reduce the environmental impacts, and also to provide
the information for consumers to be able to choose environmentally friendly models that meet their needs.”

4. “Fresh Kyu-Hai Shirokumakun” Room Air Conditioner
Key Environmental Features
The PAM system allows for greater energy efficiency than normal inverter-controlled systems . This
product also uses a high-efficiency motor that provides improved energy efficiency, with less than half
the annual energy cost than air conditioners made a decade ago. To promote even greater energy savings through good maintenance, the unit is designed with removable louvers so that the fan can also becleaned. The electrical control circuit boards use lead-free solder, and the rear of the in-room unit is also
made of recycled plastic. We are also cooperating with Kanto Eco-Recycle Co. to make future improvements in the ease of disassembly and recycling.
This air conditioner utilizes pulse amplitude modulation (PAM), and is
the first in the world with a system for controlling the air supply andexhaust airflow, allowing it to exchange the air in a room and keep it
fresh. It also introduces a twin airflow system, with vents on the top
and bottom, to ensure a comfortable air temperature throughout theroom.

Developer’s Comment“The greatest environmental impact of air conditioners is due to the electrical power consumption duringuse. With about one-quarter of household energy consumption used for air conditioning in Japan, energy
efficiency is now a high priority when consumers purchase air conditioners. We made better energy efficiency our main goal during product development.”

Customer’s Comment

Hitachi Home & Life Solutions (Inc.)
Atsushi Otsuka“We can see that due to technological developments, the environmental impact of air conditioners has
been reduced. Life cycle assessments indicate that since the energy efficiency of a unit is the main determinant of its environmental impact, it can actually be environmentally beneficial to replace existing air conditioners, even when taking into account the environmental impact of disposing of the older ones. It would
be very useful if consumers could be given tools that could help them determine the lifetime environmental
impact of their appliances based on their own specific household situation. I also hope that we will see new
business models in the future that allow people to benefit not from things, but rather from the services they
provide, such as through leasing programs.”

Follow-up Comments“First of all, I think it’s very good that Hitachi creates opportunities for product developers to meet directlywith consumers to explain products and promote dialogue. To increase the transparency of corporate
activities, it is useful to involve stakeholders and to create a dialogue with them. Also, once consumers understand the issues and difficulties involved in the development of products, they can feel closer to a company, and develop a better appreciation of its products. The explanations I received gave me the impression that Hitachi is technologically very strong. But some points may be hard for consumers to understand,and there are aspects of people’s lifestyles relating to the use of environmentally friendly products that havenot been fully considered from the larger context of regional, national and global issues. I hope that Hitachi
will continue to work on the environmental aspects and to build on the trust people place in it, and that you
will continue to involve stakeholders and consider environmental improvements in the broadest sense.”

Riichiro Oda,
Senior Manager,
Japan forSustainability (JFS)

Japan for Sustainability is a non-profit
communications platform establishedin August 2002 to share environmental
information about Japan, in the English
language, around the world. A major
mission of JFS is to move Japan andthe world in a sustainable direction,
through communicating information
about Japanese advances in the field ofenvironment, and by providing venues forcreating visions of “a sustainable Japan.”22

5. ETG-7000 Optical Topography System
Key Environmental-conscious Features

Regional brain blood volume changes when the brain activates. The
optical topography system is a device to measure the changes inblood volume in the cerebral cortex, using safe and highly penetrating near-infrared light. The ETG-7000 system has been developed
by Hitachi Medical Corporation who commercialized the optical
topography system for the first time in the world. This device is
expected to open up new possibilities in brain research and examination, as the ETG-7000 system is able to measure most of thecerebral cortex.

In addition to improved features, we have successfully reduced the adverse impact of this equipment onenvironment compared to the previous models by saving resources. Also, we have reduced the adverse environmental effects in the manufacturing process. Previous devices measured brain activity in only one regionof the brain; however, the ETG-7000 system can simultaneously measure 120 points in five regions of thebrain (the frontal lobe, the left and right temporal lobes, the occipital lobe, and the parietal lobe). As this single
unit is able to gather the same amount of information as the five previous models combined, we were able toreduce significantly the amount of energy used during manufacturing and the amount of waste such as circuitboards and cases. Also, the system consumes less power during operation as we downsized the system.

Developer’s Comment
Functional magnetic resonance imaging (fMRI) is used in laboratories and hospitals to image brain activity,
however, the dimensions of the device are extremely large and special installation work is required. We developed the optical topography system to meet customers’ demands of imaging various brain activity anytime
and anywhere. We made the system highly mobile by encasing the technology in a compact and light unit.
It is now possible to image brain activity not only in a laboratory but also in an office, outdoors or in a vehicle.
The low running cost is also an advantage of the system. We hope that the system will be helpful in advancing
studies in brain activity.

User’s Comment

Prof. Shigeru Watanabe (left),
Mr. Kotaro Saito (right)

I use the optical topography system in psychology experiments to understand how the brain functions. Since
the device operates quietly, we no longer need a special room for experiments. I think it can be used in many
situations. The probe holder with a set of optical fibers, which looks like a net, is attached on the head when
we conduct measurement. One drawback of this system is that it can be difficult to evaluate data when thesubject moves, since the system imposes less restraint on the movements of the patient being examined.
However, I think we can say that burden on a subject when using the optical topography system is far lessthan that of when using large devices. It is important to conduct measurements with less patient-restraint
when studying and testing people. I think that this device could even be used to study newborn babies. Another advantage of the system is that since the optical topography system measures and provides real-time
images of changing brain activity; we can discuss the results of the data immediately after the measurement
and utilize the results to modify the measurement right away.
Product User

Discussing the measurement data. Standing
is product developer, Tsuneaki Kawaguchi of
Hitachi Medical Corporation.

Prof. Shigeru Watanabe, Department of Psychology, Keio University
Prof. Watanabe’s experimental psychology research into the nature of human consciousness is part of the initiative “Toward an Integrated
Methodology for the Study of the Mind” at Keio University’s Centre for Integrated Research on the Mind, a part of the 21st Century Centersof Excellence program sponsored by Japan’s Ministry of Education to develop leading global centers for research and education. A graduate
student, Kotaro Saito, has published papers based on his human cognition experiments using the optical topography system.

6. Ultra Fine-Grained Hard Metals
Key Environmental Features
As more and more functions are packed into electronic devices, an increasing number of layers are being designed into circuit boards. The carbide
drills used for making holes in such circuit boards require drill bits that are
thinner than a hair but hard to break and also have a long drill depth andusage life. Meeting these demands requires better quality, which resultsin less waste. In the development of ultra fine grained hard metals, it isessential to prevent grain growth during the heating of the carbide particles.
We redesigned the manufacturing process, reducing a two-step heatingprocess that used vacuum sintering and pressure sintering into a one-stepprocess. This also made it possible to reduce the consumption of energy inthe manufacturing process.

A carbide drill bit

Mobile phone circuit board and carbide drill bits

Developer’s Comment
Microstructure surfaces of ultra fine grained hard metal (left)
and hard metal (right)
Ultra fine grained hard metals, which can be made thinner than ahuman hair, make up a new type of materials jointly developed by
Hitachi Tool Engineering, Ltd. and UNION TOOL CO. for use in drill
bits only 0.075 millimeters thick. The main raw materials used intheir manufacture are tungsten carbide and cobalt. Decreasing thecobalt content strengthens the material, but also makes it pliable.
We succeeded in fine-tuning the ratio of the components to produce
a thin yet strong material for drilling.

“There are approximately 1,000 holes drilled into the circuit board in a typical mobile telephone. Smaller holes
allow thinner wiring—and this gives the phone more possible functions. Carbide drills are needed that canmake ultra-fine holes. To develop the needed material, we asked for advice from a customer, UNION TOOL
CO., and developed this product together. Our achievement was recognized as one of the top ten new
products for 2003 by the Nikkan Kogyo Shimbun, a leading industrial newspaper in Japan.”

User’s Comment“Carbide drills are used in factories to drill an enormous number of holes in the manufacture of circuit boards.
Even one drill bit failure can have a huge impact on the manufacturing process, so we make our drill bits tothe strictest standards. And good materials are essential to make good drill bits. Each of our newly developed
carbide drill bits is able to drill about ten thousand holes, and their useful life is five times longer than earlier drill
bits. We have even made prototype drill bits as thin as 0.05 millimeters.”
Product User

Takeshi Miyamoto
Mr. Takeshi Miyamoto, managing director (left), and the productdeveloper, Yutaka Kubo (right), of Hitachi Tool Engineering, Ltd.

Mr. Miyamoto is managing director of UNION TOOL CO., which was established in 1960 and has its headquarters in Tokyo. It is one of theleading manufacturers of carbide drills for printed circuit boards. Their 2004 production target is for a monthly output of 17.5 million drills.

Nature-friendly Products & Eco-factories 23
reduce its total subcontracted costs for
packaging by 28% from fiscal 1998 to2003, and is working to promote evengreater efficiencies and re-use of packaging materials.

Environment-Friendly Design
and Returnable Packaging
The challenge in designing packaging is tocreate materials with the strength needed
to protect products, while at the sametime increasing transportation efficiency
by making packaging smaller and lighter.
Hitachi, Ltd., in cooperation with Hitachi
Transport System, Ltd., redesigned the
packaging for our laptop computers. Afterevaluating different options for materials,
functionality, and ways of removing the
product from the package, we shiftedfrom a design in which boxes were stoodon end and the computer removed fromthe top, to a design that still had it standing on end, but the box is now laid flat toremove the computer. This award-winning
design reduces packaging volume by
35%, weight by 20%, and truck transport
by 30% (thus reducing CO2 emissions).*1
We are also working to make shipping
containers “returnable” so they can be reused many times. We designed special
purpose-built holders for liquid crystal
display panels that can be used repeatedly
for shipments to and from our assembly
facilities in China, helping us reduce theamount of packaging materials used.
The Hitachi Group has been able to* 1. This innovation received the Good Packaging
Award (for electronics and equipment) in the Japan Packaging Contest sponsored by the Japan
Packaging Institute.

CO2 Emissions fromTransportation
In fiscal 2003, our CO 2 emissions fromtransportation rose to 425,000 tonnes
due to the acquisition of a hard disk drive
business overseas and the expansion of
our automotive equipment business inJapan. In addition, preliminary calculations
conducted for our Japanese operations
indicate that we improved our transportation efficiency (Transportation Factor)
in fiscal 2003 by 10% over the previous
year. We are conducting further analysesof these findings and working to effectively
utilize the Transportation Factor as anindicator for improving our operations.

Packaging Improvements for Laptop Computers
Packing method

Initiatives to Promote Modal
Shifting
To reduce environmental impacts and traffic congestion, and also to achieve transportation efficiencies, Hitachi Transport
Systems, Ltd. is working to realize a“modal shift,” through the combined
use of the railway and truck transportmodes. We did this in 2003 for mediumrange and in January 2004 for longrange shipping, and the latter initiative has
been recognized by Japan’s Ministry ofTransportation, Land and Infrastructure asa Modal Shift Demonstration Project.*1
As a result of these efforts, we project
yearly CO2 emissions reductions of 1,600
tonnes.
Rail transport emits between one-sixthand one-eighth the CO2 emissions of truck
transport. But a modal shift toward rail has
certain drawbacks, since schedules must
be adjusted to match train timetables.
Costs may also rise, since trucks are stillneeded to carry shipments from railway
stations to their final destinations. We
found a way to use trucks (available
after their main deliveries) in collection
and delivery for railway stations. We also
developed new racks to accommodate
railway containers onto trucks designed to

CO2 Emissions from Transportation

Conventional
Opening/closing from the top

NewOpening/closing from the side

CO2 emissions(kt/year)

Total transportation volume(kt-km/year)
3,500
595
3,000

600

CO2 emissions fromtransportation

425
2,500

Stand up

2,000

344

400

362

Carton dimensions (width)

405 mm

402 mm(depth)220 mm

156 mm(height)

358 mm

332 mm500

Carton volume (relative)

100

65

0

Carton weight (relative)

100

80

Air
Ship
Rail

1,500
200

1,000

Truck
Product transportation,by mode

2000

2001

2002

2003

0

Trucks that can Carry both Sea
and Rail Containers

Example of Modal Shift
Wharf
Truck ASea container

By truck (50%)

By rail (50%)
Max 12 containers (40ft) / dayMedium range
The Tokyo
Freight Terminal

Truck A
Rail container

The Fukuoka /Hiroshima
Freight TerminalLong range

The Utsunomiya
Freight Terminal

Truck A
Transports three 5-tonne
containers using racks forrail containers.

Tochigi facilities

Newly-developed racks allow our trucks to carry both sea
and rail containers.

24carry marine shipping containers. By expanding the distribution activities at railway
stations, we have been able to make ashift from truck to rail for our shipments toFukuoka and Hiroshima, several hundred
kilometers southwest of Tokyo.
To shift transportation modes, wemust develop solutions in the context
of the total transportation network. We
will continue to promote modal shifting,such as by developing new transportationroutes and improving how we handle thecushioning materials used for transport byrail container.
*1. Hitachi Home & Life Solutions, Inc., from their
Tochigi site to Fukuoka and Hiroshima.

Global Warming Prevention:
Targets and Results
The Hitachi Group has set 2010 as theyear to achieve two targets (compared
to 1990 levels) for reducing emissions ofCO2, the main factor in global warming:
1. CO2 emissions per unit of manufacturing output: 25% reduction (inJapan)
2. Overall CO2 emissions: 7% reduction (in Japan)

To raise awareness inside the HitachiGroup, we conduct various activities
through the managers responsible for energy efficiency throughout the Group, suchas seminars and reporting on cuttingedge practices. We have also introduced
efficient equipment and control systems
for the air conditioning systems at all of
our facilities. Energy efficiency investmentsof 4.7 billion yen* 1 by the entire HitachiGroup in fiscal 2003 helped to reduce
annual energy consumption by 40,000
kiloliters (crude oil equivalent). As a result,in fiscal 2003, CO2 emissions per unit ofmanufacturing output dropped by 7%(below 1990 levels), and CO 2 emissions
fell by 20% (in Japan).
*1. Costs of control equipment for conversion to
inverters for pumps and fans, and for increasing
the number of such units, as well as for installing
optimal control systems to monitor electric power
and air conditioning, etc.

Launch of Hitachi’s
CO2 Emissions Reduction
SystemThe Hitachi Group launched a new CO 2
Emissions Reduction Program in fiscal
2004. Under this program, we calculate

Trends in CO2 Emissions Per Unit of Production, and Total CO2 Emissions

Greenhouse Gas Emissions
Reductions and New Energy
Six major types of greenhouse gases
are known to contribute to global warming, including CO2 mentioned above, and
CFC substitutes.
Emissions of the greenhouse gases
other than CO2 in fiscal 2003 by the HitachiGroup amounted to 420,000 tonnes (global warming potential), a reduction of 40%
from the preceding year. This reduction
was accomplished by installing equipment
to detoxify releases of these chemicals, aswell as by converting to alternatives thathave lower environmental impacts.
The amount of renewable energy (suchas photovoltaic) used by the Hitachi Group

Structure of CO2 Emissions Reduction System
Planning and implementation of CO2 emissions reduction plans(Each fiscal year, April to March)

Japan

100

the amount of CO2 generated as a resultof energy usage (both electricity and fuels)
for each of our facilities, and then compare
emissions reductions by each facility
based on annual targets and actual results.
77% of our facilities achieved their CO 2
emissions targets for fiscal 2003. These
results were reported to management andshared within the Hitachi Group. Using
this system, we will take additional specificsteps to reduce CO2 emissions efficiently.

World (Japan + overseas)

Trends in CO2 emissions perunit of production

CO2 emissions reports (via Internet)
93

81

Calculate point value from difference with target
80
Implement 4-step process to improve ratings
75

3,000

Share information within Hitachi Group

4,220
3,910

3,830

3,630

New

3,827

2,840

Calculation method(See p.3, “Scope”)

3,052
2,755

2,914

(100)

2,750
2,283

Japan

2,000

Report to management

Original

overseas

CO2 emissions(kt-CO2/year)
4,000

(97)

Other Greenhouse Gas Emissions
2,640(thousand tonnes GWP )
(93)
150

(80)

HFCs
130

PFCs

10

1,000

SF6

40
100
0

85
1990

2000

2001

2002

2003

2005
(target)2010(target)

(FY)

80

6

70
17

50

For the C02 conversion units for electrical power, we use the unit CO2 emissions for end-use demand published by theJapanese Federation of Electric Power Companies (for Japan), and the average unit CO2 emissions for generation andend-use from all thermal and electrical power sources, published by the Intergovernmental Panel on Climate Change andInternational Energy Agency (for overseas).

21
58

50

3
42
7
35

0

2000

2001

2002

2003

(FY)

Nature-friendly Products & Eco-factories 25
in fiscal 2003 was 9.06 million kiloliters(crude oil equivalent) for heating, and 74
million kilowatt-hours for electricity (50%over the proceeding year). These accounted for 3% of total power consumed
for heating and 1.8% of total electricity
consumption; electricity generated throughalternative sources has been increasing,
due to the installation of cogeneration systems using natural gas. We also purchased
electricity generated from wind power, andas a result received certificates for 850,000
kilowatt-hours of “green” electricity,*1 anamount equivalent to the annual consumption of 220 average households.
*1. We utilize the system operated by Japan Natural
Energy Company, Ltd., through which we receive“Green Electricity Certificates” in exchange forpaying fees to contract with wind power generators to provide electricity.

Conserving Energy
in the Clean Room
“Clean room” facilities are indispensable for production of semiconductors.
Generally, they require a large amount ofenergy to maintain proper temperatureand humidity levels. In addition, a considerable amount of CO2 is emitted by the oil-fired boilers that provide heating energy.
Our efforts, so far, to improve energy consumption efficiency have focused mainly
on air-conditioning equipment, but these
efforts have been reaching their limits inrecent years.
The Production Environment Teamof Hitachi Cable Ltd. has tackled theseenergy efficiency improvement challenges.
By analyzing all the energy-consuming
processes in the plant and considering
each separate processes’ relation altogether, they have achieved much better
efficiency through finding ways to mutually
utilize the excess energy that in the past
was not only unutilized but even costmoney to dissipate.
They use the heating energy carriedby the “process cooling water,” whichcomes out of the cooling pipes installed onelectrical furnaces. The “low-grade” heat isused as a source of heating energy for airconditioning and utility equipment, suchas pure-water plants. This engineering
approach has been evaluated in academic
societies as an excellent application ofbasic thermodynamics principles. With thecooperation of process engineers and airconditioning experts, the need for oil-fired
boilers has been eliminated by the better

Energy Conservation in the Clean Room
(Effective utilization of waste heat between multiple processes— An initiative by Hitachi Cable, Ltd.)
After improvements

Air conditioning /other facilities
Clean room23±2˚C
Set temperature
Summer/winter: 23˚C

45˚C
Air conditioner
for outside air Back
BoilerWell water 15˚C
Production facility

40˚C
Back
30˚C

15˚C
Electric
furnaceFreezer
7˚CBack

23˚C±0.5˚CCooling of external wall

Pure water production 21˚Cequipment

Outside air -2˚C (winter)
Air conditioning /other facilities
Clean room23±2˚C
Adjusted temperature
Summer 24.5˚C
Winter 21.5˚CAir conditioner
for outside air

Pure water production 21˚Cequipment
Well water 15˚C
Enhanced heatexchanger
Production facility
15˚CElectric
furnace>=23˚C

Freezer
7˚C
Return*1. In cooperation with Hitachi’s MONOZUKURIEngineering Division.

Installing Amorphous
Transformers
The Power Systems group of Hitachi, Ltd.
has introduced high-efficiency transformers
that use amorphous transformers ,*1 reducing voltage conversion losses by onethird at office facilities.
By installing new electricity monitoring
systems, providing data about our energy
consumption, and using information posters and notice boards, we have been able
to raise employee awareness about energy
efficiency, leading to an annual reductionof some 430 tonnes in CO 2 emissions.
This achievement has been recognizedwith the fiscal 2003 Natural Resources andEnergy Agency’s Director General’s Award
for Superior Facility Energy Management.*2*1. Hitachi’s Power Systems group has worked with
Hitachi Industrial Equipment Systems Co., Ltd toinstall fourteen “Super amorphous transformers.”

30˚C

Cooling of external wall

Outside air -2˚C (winter)

Phased out boiler by utilizing waste heat from electric furnace

Before improvements

use of heat exchangers and by moderating air quality guidelines in the production
area. Based on this, Hitachi Cable Ltd.
received the 2003 Director General’sAward from the Japanese Natural Energy
Resource Agency for excellent achievement in energy efficiency. A patent has
been obtained on this new technology.
So far, similar technologies have already been put into operation in conjunction with these basic improvements in fiveother Hitachi Group plants.*1
The Hitachi Group will continue to develop such energy efficiency technologies,
for use both inside and outside the Group.

23˚C±0.5˚CInitiatives of Power & Industrial Systems Division
Major items for energy conservation

CO2 emission reduction (kt/year)•Introduce of amorphous transformers and clustering of transformers (31➛14)( Zero load loss / reduction of voltage conversion loss: 62%)95

•Introduce monitoring system to better determine power use status- Attach condensers to large motors to improve power factor- Adjust capacity of building power supply transformers

335

Total

430

*2. In recognition of outstanding achievements in energy management over the previous three years.

26
Enhancing the Risk
Management System for
Chemical Substances
Chemical substances must be managed
efficiently and in an integrated manner if
we are to ensure their safe handling andreduce their impact on the environment.
The Hitachi Group strives to comply withlaws and regulations, to systematicallypromote additional voluntary initiatives,
and to enhance a variety of programs tothese ends. In an effort to improve ourchemical risk management, during 1998
we introduced a computer network-based
system in Japan that we call CEGNET(Chemical Environmental Global Network),
and now use it to quickly and efficiently research and verify the hazardous propertiesof chemical substances, as well as trends
in laws and regulations, etc. During 2004,
this system will be expanded for use in ouroverseas operations as we make anotherstep toward global management.

Risk Management for
New Chemical Substances
When introducing a new chemical substance, to ensure proper risk management
it is important to first have an assessmentof that substance. We have a system
in which we collect information about
hazardous properties, laws and regulations, etc., and then evaluations are madeby the Special Committee for Chemical
Substances, etc., on the pros and consof using the substance. In addition, inorder to avoid introducing any hazardous
chemical substance that is controlled bylaws and regulations without first making
the proper preparations, we work closelywith the related departments at eachfacility, including those in charge of design,
manufacturing, and purchasing.

Survey of Substances
Under the PRTR Law
The Hitachi Group collects data on all

Survey Results for Substances Covered Under Japan’s PRTR Law(Volume of releases and transfers in FY2003)

Outline of Chemical Substance Risk Management
CEGNET System

Trends in laws and regulations
Trends in voluntary management

Risk information

Preliminary inspection
for new chemical
substances

Volume released
2%

Tracking the volumes released
and transferred

Data on releases

Handling of chemical
substances

substances that it handles in amountsof 10 kilograms or more per year, even
if the amount is below the minimum for
mandatory reporting under Japan’s “Pollutant Release and Transfer Registers Law”
(formally known as the Law Concerning
Reporting, etc., of Release of SpecificChemical Substances to the Environment
and Promotion of Improvement of Their
Management), which entered into force inApril 2001. We are monitoring discharges
to the atmosphere and public waters, aswell as transfers such as removals in theform of waste from facilities, and as effluent
into sewerage systems. During fiscal 2003,
we used a total volume of 220,000 tonnes,
comprised of 134 of the 354 groups ofsubstances subject to the Law. Amongthem, the amounts of releases and transfers was 2% of the total amount handled,
and the top three substances in terms ofemissions were toluene and xylene (components of paints), and ethylene glycol
monoethyl ether (used as a plastic solvent).
In addition, 112 facilities submitted

Volume transferred
2% Styrene 3%

Reduction of releases

Others9%Ethylene glycol
monoethyl ether
3%

PRTR
reporting

Feedback

Ethyl benzene 2%

Volume handled
221 ktXylene15%

Volume released
3.6 ktUsed for products, etc(Including amounts throughtreatment processes)
96%.

Toluene 68%

Volume handled, released, and transferred

Breakdown of volume released

Prevention of leakage

Voluntary Substance Management

High-pressure
gasesGreenhouseeffect gases

Hazardous
substances

Substances that are prohibited (100): benzine, dioxin, etc.
Ozone depleting
substances

Substances specified for reduction (270): methylene chloride, lead, etc.
Substances that require management (1030): styrene monomer, ethanolamine, etc.

Substances covered under the PRTR law
Substances
subject to theoccupational healthand safety law

Substances
subject to thechemical substances
examination law

Substances
subject to air
and water
pollution laws

Poisonous anddeleterious
substances•High-pressure gases: “The High-pressure Gas Safety Law” •Hazardous materials: “Fire Defense Law”
•Health and safety law: “Occupational Health and Safety Law” •Chemical substances examination law: “Law
Concerning Examination and Regulation of Manufacture and Handling of Chemical Substances” •Clean
water law: “Water Pollution Control Law” •Clean air law: “Air Pollution Control Law” •Poisonous and deleterious substances: “Poisonous and Deleterious Substances Control Law” •Ozone depleting substances:“The Law Concerning the Protection of the Ozone Layer throug •the Control of Specified Substances andother Measures”(The Ozone Layer Protection Law) •Greenhouse gases: “Law Concerning the Promotion of
the Measures to Cope with Global Warming”

Nature-Friendly Products & Eco-Factories 27
reports to local governments as required
under the PRTR Law.

Voluntary Controls to
Reduce Environmental
Impacts
To reduce the impacts of chemical substances on the environment, we control
the releases and transfers of not only
substances subject to the PRTR Law. We
also voluntarily control 1,400 substances,classifying them as substances to “prohibit,” “reduce,” or “control.” This we do inan effort to cut emissions into the environment, including the atmosphere and water
bodies. We have set a target of reducing
the total releases of the substances in the“reduce” category by 70% in fiscal 2005
compared to fiscal 2000, and are working
to achieve this target.
Hitachi Chemical Co., Ltd. installed
equipment that can continuously recoverand reprocess the solvents*1 used in producing the wiring for printed circuit boards,

Trends in Emissions for
Substances Targeted for Reduction

even if they are in the form of rarified
gases. As a result, it has become possible to reuse 80% of the solvent. In the
future, we will work to reduce the releases
into the atmosphere and water bodies,by cutting the actual amounts used, byconverting to alternative substances,and by promoting more recovery of used
substances. As for releases to rivers, wehave set our own independent standards
that are stricter than those under laws andregulations, and we are working to reduce
environmental impacts, with a future aimof chemical-free wastewater discharge.
*1. Ethylene glycol monoethyl ether, methyl ethyl
ketone, etc.

Preventing Pollution of
Soil and Groundwater
To protect soil and groundwater from pollution by hazardous substances, we areworking to improve controls to prevent theleakage of chemical substances. These

Example: Hitachi Chemical Co., Ltd.
Solvent recovery and refinement facility: Flow chart

10.6

10.8

4.4

3.9

9.7

10

3.6

55

7.4

Solvent recovery facility

Copper-clad laminates production process

Production of varnish

Adsorption
tower
Reusing solvents

Trends in Emissions for“Substances Targeted for
Reduction”
70

100

Gas emissions(kt/year)
15

Coating equipment

5.8
5

1.8
6.9

6.1
4.0

0

2000

2001

2002

2003

Solvent recovery andrefinement process
2005 (FY)(target)Refined solvents

6.2

Solvent recovery facility

Calculation method (See p.3, “Scope”)
Newefforts include converting underground
piping, pits and tanks to above-groundfacilities, and conducting thorough inspections. For underground tanks that have still
not been moved above-ground, we work
to prevent leakage by performing thoroughinspections, including ultrasonic tests andmeasures to prevent corrosion.
The Hitachi Group conducts surveys ofsoil and groundwater in accordance withthe law, and works to respond rapidly inthe event of contamination being detected
at any part of a site. At about 90% of theapproximately 200 sites that have beenprohibited from use due to contamination,either clean-up operations have been
completed or we have confirmed that noproblems remain. At the remaining sites,
we are continuing with clean-up measures. At sites where clean-ups have been
completed, we are continuing to monitor
the groundwater quality.

Concentrator

Original

Total emissions volumes include emissions that are directly discharged into the atmosphere and public waterways as well as emissions eventually discharged into the environment through waste, etc.

Activated carbon floating
adsorption tower
Activated carbon migrating
desorption tower

Recovered solvents

Solvent refining tower

Desorptive carbon

Excluding PRTR Law class 1

Adsorptive carbon

PRTR Law class 1 substances

Desorption
towerConcentrator

28
waste generated in a given fiscal year going to final disposal sites, and the volume
going to final disposal of less than 5 tonnes
per year,” and is working to achieve thisobjective. During fiscal 2003, the numberof facilities achieving zero emissions roseby 23, making a total of 42 overall.
We are tackling a number of extensive
initiatives in this regard. Examples of
new improvements include reducing
computer printing by using electronic dataprocedures more; improving the rate ofreusing of resources by fusing incineration
ash and using it as base material for roadbuilding and river bank reinforcement; anddeveloping new routes to handle recyclingby more thoroughly separating waste andby rethinking conventional methods ofhandling recyclable materials.

Waste Reduction: HitachiGroup Targets and Results
Many types of waste are generated frombusiness activities. Japan is in a serious
state of affairs, with little remaining space inlandfills. According to calculations, landfill
sites in the Tokyo metropolitan area will be
full in 1.1 years, and nationally, in 4.3 years.*1
The Hitachi Group is working to
reduce the amount of waste going to thefinal landfill , by promoting the “threeRs” of reduce, re-use and recycle. Our
previous reduction targets were to reduce
waste volume to below 80% of fiscal 1998
levels by the end of fiscal 2005, and below
70% by the end of fiscal 2010. In fiscal
2003, we achieved a reduction to 69%.
The key factors that helped us realize
our plan included, among other things,
reducing the amount of packing materials
used by simplifying our packing, reusing
cleaning cloths of machine parts in the
manufacturing process by washing, andrecycling effluent treatment sludge andincineration ashes by using them as raw
material for making cement.
The Hitachi Group defines “zero emissions” as having “1% or less of the total*1. From research by the Japan Ministry of theEnvironment implemented in 2004 (from analysis
of fiscal 2001 data).

Supervision of Proper
Disposal
The Hitachi Group called together key personnel from sales departments and held

Trends in Final Disposal Volume Reduction

250
100

Trends In Final Disposal
Volume Reduction

New

Original
Japan

69
139

135

100

71

63

80

High Functional Materials & Components
54

70

103

96

51

59

53

47

44

43

54

48

2001

2002

2003

2005
(target)2010(target)

98
57

50

(%)

Reuse
21

8

Information &Telecommunication Systems

Logistics, Services & Others
32

5

(%)
4

Waste Management Practice Seminar

Trends in Volume of Water Usage

50
68
0

1998

72

1999

66
2000

Volume of usage (million m3/year)

(FY)

0

Trends in Waste Emissions
Volume emitted (kt/year)(%)

Trends in recycling ratio

Breakdown of Participants
Non-response
1%
Others10%

Calculation method(See p.3, “Scope”)
New OriginalEnvironment/Production
Technology/Administration
35%

Sales
20%
Construction
Site
23%

Overseas
Japan
(FY)

4

Power & Industrial Systems
Digital Media & Consumer ProductsElectronic Devices 1

50

111

98

Thermal recycling

Breakdown of Final Disposal Volume by Type

147

81

We are making an effort to reduce theamount of industrial water used, such as
by recycling of cooling water and improving production efficiency. In particular,
Hitachi Displays, Ltd. has introduced
equipment of ion exchange, reverse
osmosis membranes, and ultrafiltration.
Through such initiatives, the water use
volume of the Hitachi Group in fiscal 2003
was reduced to 76% (compared to fiscal
2001).

Material recycling
70

(%)
100

Overseas200150

Efficient Use of Water
Resources

Breakdown of Recycling Methods

Calculation method (See p.3, “Scope”)
Final disposal volume (kt/year)

practical seminars on waste disposal. Participants conducted case studies of waste
disposal situations, with the aim of gaining
an understanding the relevant legislation.
By having the key personnel who work at
the front line and who deal directly withthe customer deepen their understanding
about the handling of waste, which is the
final stage of a product or service, the Hitachi Group is not only making an effort tobe thorough in controlling waste within theGroup; these efforts also make it possible
to promote the proper disposal of waste
through cooperation with customers.

Technical/Planning
11%

Municipal water (overseas)
Industrial water (overseas)
Groundwater (overseas)
Municipal water (Japan)
Industrial water (Japan)
Groundwater (Japan)
Activities covered by FY2003 data differ fromprevious years

Worldwide Stakeholder Collaboration
The Hitachi Group is committed to communication with all its stakeholders in order to develop a sharedsense of values, and to identify the synergies that will help create a sustainable society.

29
Environmental
Communication

Exhibiting at “Eco-Products
2003 Exhibition”

At Hitachi, we are committed to environmental communication with our
stakeholders through the disseminationof information and mutual dialogue, sothat the mutual understanding gained andthe opinions received from stakeholders
can help us to improve our environmentrelated efforts and contribute toward thegoal of sustainable society.

We were happy to put 32 of our newest
technologies and products on display
at the Eco-Products 2003 Exhibition,* 1
Japan’s largest environmental exhibition.
The title of our exhibit was “Next EcoTogether with Hitachi Towards an Ecological Future.” Our exhibit featured portable
fuel cells, dye sensitized solar cells andother new products and technology, andwas quite a popular site among visitors.

Communicating throughEnvironmental Sustainability
Report and Hitachi’sInternet Web Site

*1. Eco-Products 2003 was sponsored by the New
Energy and Industrial Technology Development
Organization (NEDO), the Japan Environmental
Management Association for Industry, and Nihon
Keizai Shimbun, Inc., and was held December 11
through December 13 at Tokyo Big Site.

We have published an Environmental
Sustainability Report since 1998. In fiscal
2003 we published a combined total of
25,000 copies in English and Japanese.
In addition, Hitachi’s Internet web site iscontinually updated with specific data andthe latest information.

Hitachi Group Environmental
Activities Website

review were displayed at our booth at theEco Products 2003 Exhibition, and werethen voted on by the 4,770 visitors whocame to our booth during the exhibition.
We then selected winners based on
visitors’ votes and an evaluation of eachposter’s message and creativity. The
winning posters are on the covers of thisreport as well as the Hitachi booklet titled“Eco Stories for Everyone.” P15*1. The call for posters was announced from September 19 through November 21, 2003 on Hitachi’s
Web site, in newspapers, on environmental portal
Web sites, and at schools.

Interacting with Government
and Universities
In fiscal 2003, we held discussions about
environmental issues at a training session
for City of Yokohama municipal employees and at lectures at both Sophia University and Kanto Gakuin University. The
discussions included our Environmental
Sustainability Report and other materials.
We plan to incorporate the participants’opinions and impressions in future environmental activities.

Running Eco-Poster Contest
The Hitachi Group holds an annual ecoposter contest as part of our overall effort
to communicate with the public about
environmental issues. In 2003 the contest
theme was “Dear Earth Eco-Posters,”
and we received 247 entries depicting
thoughts about our irreplaceable earth.
The 30 posters that passed the initial
Web Site Access

Eco-Products 2003 Exhibition
Detailed environmental impact dataand eco-products information added

Hits (million)
5

Accessibility Improved
Eco-products
information added

4
3

400

hitachi green website launched

333
251

2

211

1

The Hitachi Group booth

78
0

1999

2000

2001

2002

2003

(FY)

Environmental Reports Published, by Site
FY2001 FY2002 FY2003
Published on behalf of individual companies andcompany groups
Published by designated sites

12

19

19

4

6

9
Voting Corner of “Dear Earth Eco-Posters”

http://greenweb.hitachi.co.jp/en/

Information disclosure via the Internet, by Site

Highlight of Environmental
Communication Activities (FY2003)
Activities
Environmental Sustainability
Reports
News releases
Media correspondence
Questionnaire correspondence“Environmental town meetings”
Lectures
Contribution of articles

Number of times
approx. 30,000 copies
issuede
9
23
31
1
4
6

FY2001 FY2002 FY2003
Published on behalf of individual companies andcompany groups
Published by designated sites

27

41

38

5

4

4

* Companies covered by FY2003 data differ from previous years due to recentchanges in organizational structure.

A Training for Yokohama
Municipal Employees

30
Environmental Town Meetings
Since 2001 the Hitachi Group has held what we call “environmental town meetings”
for stakeholders. These meetings involve direct dialogue with our stakeholders, andnot only give them a chance to better understand our environmental efforts, but also
provide us with an opportunity to receive valuable feedback to then use in formulating
the Hitachi Group’s environmental program. The 2003 environmental town meeting
was jointly held with the popular environmental information Internet portal site “Kankyo
goo” on September 11, 2003, and included 27 of the site’s users with Hideto Kawakita,
representing the organization IIHOE, serving as moderator. At the meeting we were able
to hear participants’ opinions and impressions about our previous year’s Environmental
Sustainability Report and discuss Hitachi’s core environmental activities (GREEN 21, ecoproducts, and environmental solutions). Participants then wrote down their opinions andoverall ratings of the activities. This was followed by responses from Hitachi representatives, and further discussion.
Participants later commented that the meeting gave them a better understandingof Hitachi’s environmental stance and that they appreciated the two-way nature of themeeting. Some participants also suggested we hold similar meetings both in different regions of Japan and for users of other Internet sites. We will use this valuable feedback to
improve our environmental activities and communication. Going forward, we will augment
our Environmental Sustainability Report by utilizing the Internet as a medium to provide
the public with accurate information.

Participants grading the Environmental Sustainability Report

Attendees asking many straight questions

http://eco.goo.ne.jp/hitachi/meeting/ (Only in Japanese)

Post-Meeting Comments by Facilitator
I suggest the following three steps for making theEnvironmental Sustainability Report more effective incommunicating Hitachi’s environmental stance to the
public. First, the report could be structured differently.
Compliance with guidelines is great if achieved, but
you should try to organize the report in a way thatmakes it easier for readers to understand. Next, you
should include comments from employees actuallyworking on the issues presented in the report. If you
show the actual people in charge, this leads to a better
sense of product quality. Finally, in addition to company headquarters, meetings should be held at bothregional offices and affiliated companies. Having thehead office do everything makes ordinary people feellike the company is disconnected from civil society.

Hideto Kawakita

An opportunity for Q&A and exchange of opinion

Representative of IIHOE (Research Institute for People, Organizations, andthe Earth)

Response from Hitachi Corporate
Environmental Policy Division

Participants stating their expectations and opinions

Concerning the first suggestion, annotations and a glossary were added to thisyear’s Environmental Sustainability Report to make it easier to understand. We also
tried to make the report more objective by including comments from our customers.
Regarding the second suggestion, we have added information obtained
through direct interviews with product designers those Hitachi employees involvedin launching the businesses. Going forward, we will add features about employees
involved in our environmental activities on the Hitachi Web site and elsewhere.
Concerning the final suggestion, we are considering the idea of holding future meetings at our production facilities and other locations, and asking for input
on more specific topics.
Post-meeting, participants gave scores and comments

Sustainable Business Models
The Hitachi Group is working to contribute to sustainable society through various efforts, such as products
and services that incorporate sound material cycles; programs that support recycling industries; andsystems that provide energy cycles.

31
Resource Recycling

materials that arise from this work. Waste
plastics, which in the past were mostly
incinerated as waste, are now handled by
the Neomaterial Center of Hitachi Taga
Electronics Co., which forms them into
pellets, which are then used as bases forwashing machines. The flame-resistantproperties of television cabinets are exploited as distribution boxes for railway. Thus,by thinking in new ways about how to usematerials, these companies are turning
what was once waste into new resources.

The Inspiration to Achieve
Zero Emissions
Japan’s Home Appliance Recycling Law
was enacted with the goal of encouraging
the efficient use of resources. Tokyo Eco
Recycle Co., Ltd.* 1 handles about onequarter of the volume of four categories of
items covered under the Law (air conditioners, televisions, refrigerators, washingmachines). The company handles about
300,000 items per year in Tokyo, and in2003 sent only 0.1% of the total to landfill,meaning that in effect it achieved “zeroemissions” of waste.
The disposed appliances brought tothis handling facility are first disassembled
on the principle that “if it’s mixed, it’s
garbage, if it’s separated, it’s a resource.”
Because there are many makers andmodels, this work must be done by hand.
While keeping in mind the cost of sellingthe disassembled parts, the greatest effort
is made to be efficient in the process inorder to take as much apart as possible.
In addition, the company also makes recommendations on methods to utilize the*1. Established in 1999 with 51% of capital contributed by the Hitachi Group.

Recycling and Re-Using PCs
Depending on how many years they havebeen in use, old computers are treated aseither “used” (for re-sale) or are recycled
to generate new resources. But because
each handling route entails different costs,
labor and costs, there was always the riskof used computers being dumped illegal.
Tokyo Eco Recycle Co. started a service
in which it collects used computers from
corporations. Then, it dismantles someTokyo Eco Recycle Co., Ltd.

Disassembling by Handof them the same way as with appliancesand recovers their resources, and it turns
the reusable ones over to the usedproducts market for sale. By handling bothrecycling and reuse together, this company
has made it possible for corporations to
reduce disposal costs by about two-thirds.

Recycling Storage Products
from Europe
In the European market, the Directive on
Waste Electrical and Electronic Equipment (the WEEE Directive) will make thecollection and recycling of this equipment
mandatory before August 2005. For storage products (external memory devices)
sold in the European Union by the Disk
Array Systems Division of Hitachi, Ltd.,an all-in-one system is now operating tocollect, re-use and recycle at a logistics
center in the Netherlands. Equipment for
disposal is contracted out for recycling to
a company that has been authorized by anindustry organization in the Netherlands.
We will work to expand such systems tocomply with legislation in each EU country.

Flow Chart: Take-Back and Recycling ofStorage Products in the Netherlands
Production site
Hitachi Computer Products (Europe)
S.A.

Disk Array Systems Division(Odawara, Japan)

Distribution center ofsales company
Hitachi Data Systems Europe“I believe this is a significant and pioneering endeavor.”(Kenji Baba, CEO, Tokyo Eco Recycle Co., Ltd.)

Disassembling of washing machine by hand
Sales companies in each country

Components collected by disassembling by handType of household
electric appliances
Air conditioners

TV setRefrigerator

Washing machine

Number of processes
Major components collected
needed for disassembling
14
CFC refrigerant/Heat exchanger/
Compressor/Condenser/Motor/Sound
absorption material/Brass valve/
Transformer/Indoor equipment cabinet/
Others17
CRT/Aperture grill/Circuit board/Speaker/
Degaussing coil/Deflection yoke/Sound
absorption material/Electron gun/Others
12
CFC refrigerant/CFC insulator/
Compressor/Refrigerator oil/Glass/Condenser/Vacuum insulator/Packing/
Vegetable compartment case
15
Washing tank/Motor/Balancer (salt water)/
Impeller blade/Hanging rod/Condenser/
Cabinet cover/Cabinet base/Others
Recycle/volume
reduction (99.9%)

Landfill (0.1%)
Plastics

Dust fromprocessing

MetalsExample of utilizing waste plastics• Washing machine base• Distributing box for railway• Raw material for cement• Sub-base and others

OthersFlow of Processing Used PCs
Corporate users

Customers
Take-back of direct sale

Recycling
reports

Used PCs

Certificate ofdemolition

Tokyo Eco Recycle Co.,Ltd.
(Separation/Disassembling/
Recycling)

Recycling process
Material recycle
Materials market

Renewal process

Reuse
Distribution center(Netherlands)

Take-back organization(Netherlands ICT)

Recycling companies(Netherlands)

Recycling companies(Netherlands)

Reuse
Used goods market

Recycling companies (HDD/circuit boards/metals/
plastics)

32
Refurbishing and Re-Using
Construction Equipment

Recycling Businesses ina Car-Dependent Society

Equipment such as power shovels andexcavators are indispensable in theconstruction business. They are large andspecialized machines, and if one does
not respond precisely to contingencies ineach situation, it is not possible to build
a recycling model. Hitachi Construction
Machinery Co., Ltd. is expanding a business based on the proper after-sales
maintenance of equipment, and also thecollection, refurbishment and sales ofused equipment. Meanwhile, to expand
the market for used construction equipment, Hitachi Construction Machinery
Trading Co., Ltd. has created a databaseof used equipment, and system for selling
it overseas by the Internet. These are businesses that aim to effectively utilize used
construction equipment, which has been
produced with a large amount of energy.

Hitachi Automotive Products (USA), Inc. is
promoting a recycling business in which
it manufactures and sells automotive
parts in the United States. It collects
used parts that have been removed fromautomobiles, such as generators, andstarters, etc., then processes them by
disassembling, cleaning, cutting andplating, etc. It assembles and adjusts
them to the original performance of a new
product, and supplies them to the market
as refurbished goods. The company has
won the trust of customers thanks to its
accumulation of refurbishing technology and quality control. Over the years
the company has expanded the numberof products handled as well as sales (toU.S.$6 million per month, three times morethan in fiscal 1994). The company has also
taken proactive steps to cut the amount ofwaste arising from business activities, andreceived the Waste Reduction Award from
California State in fiscal 2003.*1

Reusing Parts of Power Shovel Equipment
CylinderCenter joint*1. Officially known as the Waste Reduction Awards
Program. The company was recognized for
reducing waste such as through the refurbishing of
automotive parts and recycling of cardboard boxes
used in those processes, amounting to 1.3 million
tonnes per year (worth about U.S.$1.2 million),
and was selected as one of the top ten candidates
from among 2,500 companies that applied.

Biodegradable Plastics:
The New Focus
Biodegradable plastics are interesting fromthe view point of sustainable materials,
because they can be resolved into waterand carbon dioxide in the soil. They canbe made either from petroleum or fromnatural sources, but from the perspectiveof being “carbon neutral,”* 1 bioplastics
made from natural sources are attracting
considerable interest. Toyota Motor Corp.
has developed a polylactic acid derived
from agricultural product (sugar cane), andis already applied to bioplastics such as forfloor mats of passenger cars. Hitachi, Ltd.
possesses high viscosity liquid processing
technology, and, combined with Toyota
Motor Corp.’s basic process know-how, isRecycling Automotive Components: Flow Chart
Components to be
repaired

Pump
Hitachi Automotive
Products (USA), Inc.

Recycled componentsCore(taken-back products)

Repair shops of car
sales companies

Recycled components
Car owner

Used components(Used components)

StarterTaken-back products

Classifying taken-back products

Disassembling

Driving gear
Cleaning

Added components

Cutting
Plating

Adjustment

Shipment

Assembling

Generator
Waste (one portion)

EngineRecycling in Construction:
Flow Chart
Customer

Trends in Sales of Used Construction
Equipment
Number of machines(index)Taken-back Automotive Components(Generator, Before and After Recycling)

Direct sales
Auction sales

ImmediatedeliveryComponents center, Hitachi
Construction Machinery
Trading Co., Ltd(stocking recycled products)

Used products

Order

Recycled
products
Recycling facility, Hitachi Construction
Machinery Trading Co., Ltd

Before Recycling(FY)• Source: Hitachi Construction Machinery Trading Co., Ltd.

After Recycling

Waste Reduction
Award

33
Sustainable Business Models 33
now constructing a plant that will produce
high quality polylactic acid. Because theplactics produced from this plan will becarbon-neutral, it will reportedly have a
low environmental impact. Hitachi predicts
that in 2015, 5% of plastic in the world will
be replaced with biodegradable plastics,
and expects an expansion of the businessof polylactic acid production.
*1. A substance that has no impact on increase or
decrease of carbon dioxide.

The μ-Chip:
A Key to Information-Based,
Recycling-Oriented Society
To support the world’s trend towards
information-based societies, Hitachi, Ltd.
has developed what it calls the μ-chip(“myu” chip), a 0.4-square-millimeter integrated circuit chip containing an embeded
antenna that is among the world’s smallest such chips. It is capable of sending
128-bit data (38-digits) to a remote reader.
It can be incorporated into bills (such as
currency and coupons), and is seen as
The 2005 World Exposition
Entrance Ticket

a technology that can help to prevent
forgery. Its external antanna type has been
adopted for use in entrance passes for the2005 World Exposition to be held in Aichi
Prefecture in 2005. With a view for the
introduction of the μ-chip in the entrance
passes, the chip was assessed using
the environmental impact assessment
program known as System IntegrationLife Cycle Assessment (SI-LCA), whichuses System Integration (SI) developed by
Hitachi, Ltd. The results showed that compared to conventional entrance passes,
the environmental impacts, calculated in
CO2 equivalent, could be reduced by 11%.
With the capability to control materials
data for each part of a product, the μ-chip
has large potential for use in a recyclingoriented society.

Energy Cycles

electricity generating technologies that areclean and sustainable.* 1 Hitachi, Ltd. is
working to develop a portable fuel cell thatgenerates electricity by supplying a methanol solution and air to electrodes. One ofthe obstacles was improving the energy
output capacity; however cumulative improvements in nanotechnologies made it
possible to create a trial concept modelthat uses a cartridge as a supply system offuel.*2 Still, a constant challenge is ongoingto apply the technology in practical uses as
early as possible, so that it can be a power
generation system that will work “anytime,
anywhere,” for the whole range of portabledevices such as mobile computers. (First
sales are expected in 2006.)*1. A reaction of methanol (methyl alcohol) and airemits only water and carbon dioxide.
*2. The cartridge technology is being developed incooperation with Tokai Corporation.

Development of the Energy
Cartridge Fuel Cell
Fuel cells, which operate on the reverse
principle of the electrolysis of water,
are considered as one of the promising

Fuel Cells

SAMPLE"μ-chip" and externalantenna
PDA concept model with electrode imbedded. The
green tube is a cartridge containing methanol solution.

Concept model with electrode attached. It can beused for PCs made by other companies.

Total Circulation

A Proposal for an Environmentally-Friendly City of the FutureLight City Tokyo Project
Hitachi Group is tackling the design of urban models for the future, including
energy creation and materials circulation systems. As one example, Hitachi, Ltd.
created a volunteer project team and conducted research over a period of three
years. It created an urban model called the “Light City Tokyo” and won a prize in aninternational competition in 2003.*1
This model proposes a vision of a city that exists in harmony with the environment and evolves flexibly. In the near future, the Hitachi Group will be working
with the aim of providing new technologies, such as to create efficient transportsystems and networks, and to optimize the creation and consumption of energy ata regional level.

Features of the Light City Tokyo urban model• Sophisticated infrastructure is combined with buildings that are light and can be modified
as lifestyles change.
• Uses information technology to reduce environmental impacts, while maintaining convenience levels.
• Maintains spiritual and cultural values while maintaining functionality and convenience.
• Creates extra time by locating work and home more closely together, enabling a diversityof lifestyles.

A Vision of “Light City Tokyo”*1. This was a plan made by a team consisting of volunteers from the Hitachi, Ltd.
Design Division, architect Prof. Motomu Uno (Chiba University), and Keizo Ikemura(Phase Associates). They envisioned the future of the Chuo Ward of Tokyo andother areas. Their concept was entered into an international competition on Sustainable Urban Systems Design at the 22nd World Gas Conference Tokyo 2003,
and won the Special Jury Award.

(Aerial photo credit: Chuo Ward, Tokyo)

An expansive green zone is built up over
100 years in the Hama-Rikyu bayside areaof Tokyo. Urban greenery is cared for by
the citizens, and the living environment is
resplendent in greenery as it was hundredsof years ago in Edo (what is now Tokyo).

Social Report
The Hitachi Group has a five-part program in place as part of its overall goal of contributing to society as a“Best Solution Partner.” In this section we report on the key activities of fiscal 2003.

34

Contributing to Society through Business Activities
Social Contribution throughTechnological Innovation
The Hitachi Group aims at contributing
to the growth and prosperity of the next
generation. To this end, our researchteams are constantly involved in cuttingedge research and development (R&D) ina wide range of fields including electronics,
nanotechnology, medicine, and biotechnology. These technologies are used in
ALS (amyotrophic lateral sclerosis) patientcommunication equipment and othernursing care devices as well as applied inhuman genome analysis and other medical and life science fields.
We are also making progress in othertechnologies in completely new disciplinesthat will provide people with more convenience and peace of mind in the near
future. These include security technology
based on a biometric authentication system using finger vein patterns, portable
fuel cells P33 and other energy-creating
technologies, as well as nanoimprint
which will make mass production of microfabrics possible.

ALS Patient’s Communication Equipment

Hitachi Kokodemo Hakken!
http://www.hitachi.co.jp/inspire/hakken/index.html(Only in Japanese)

Promoting Universal Design
Universal design refers to designing
products that can be easily used by all
people, regardless of age, gender, or
physical abilities. As Japan becomes anincreasingly older society, basic R&D inthis area underscores our commitment toprovide goods and services that are truly
beneficial to our customers.
For example, in the process ofdeveloping elevators, we invited a wide
range of users, including individuals withdisabilities, to assist us in performing adetailed usage study and to evaluate newprototypes. With these individuals’ help,
we assessed the effectiveness of proposals by identifying places that needed improvement and other potential needs. As
a result, we were successful in developing
an elevator accessible to a wider rangeof people. We have also applied universal
design in designing home appliances andinformation devices.

Nanoimprint

Participation in theInternational Association for
Universal Design
In November 2003, the International
Association for Universal Design wasestablished as a body working across various sectors and types of organizations topromote the use of universal design. Hitachi has taken a role as a leading company
in this organization, serving as a memberof the board in addition to being chair.
Through active participation as a company
leading the promotion of universal designin the public and IT sectors, Hitachi aims
to build a platform whereby contributions
to society can be made through the sharing of both technology and experience.

Quality Assurance Initiatives“Quality First” is the Hitachi Group’s
fundamental stance on quality assurance.
Hitachi believes that quality control in
upstream processes is important. To thisend, all aspects of production, from theinitial planning stage, are carried out withquality, usability, safety, and environmental-

Example of Universal Design

Loreetum(20μm)

This device assists amyotrophic lateral sclerosis (ALS) patients inwriting and using PCs.

Biometric Authentication System using Finger
Vein Patterns

This system realizes higher security by using authentication method
to read finger vein patterns.

Nanoimprint technology is a new technique to fabricate nano-scalepatterns on biochips and LSI integrated circuit, etc. We plan to expand this technology to the fields of medicine, biotech, and more.

User Examination

Implemented a trial using test refrigerator model for wheel chair user.

“New Urban Ace” is an elevator with high design quality and highusability for everyone.

Symbol of the International Association for
Universal Design

35
friendliness in mind. Quality is further
assured using our interactive, total quality
assurance system in which post-sale information and knowledge gained from fielddata and after-service activities are usedin the development of new products.

Boosting Customer
Satisfactionand emergency needs of customers.
*1. Established in 1995 by the Japan Quality Award
Council, sponsored under the auspices of theJapan Productivity Center for Socio-Economic
Development to recognize management innovation made with customers in mind.

Recognition and Awards

The Hitachi Group is working to realize
management practices from the viewpointof its customers. The Hitachi Customer
Satisfaction Improvement Committee,
composed of managerial level staff from thepresident down, holds periodic meetings todevise ways of working in conjunction with
the Hitachi Group’s various business areas
while simultaneously supporting activities
in each of these areas. The committee has
adopted the objective approach called forunder Japan Quality Awards (JQA)*1 as aconcrete measure for promoting innovationin business operations.
The Hitachi Group has also establishedCall Centers across the organization. These
Call Centers play an important role in enabling us to respond to questions, requests,

At the 37th WorldSkills Competition(June 2003),* 1 the Hitachi Group’s teamof five employees competed with skilled
technicians from 37 other countries,
demonstrating their skill as they won one
gold medal (electrical assembling) and one
silver medal (construction steelwork).
As for technological innovation,
Hitachi, Ltd. fellow Hideki Kanbara won
the 2003 Asahi Award* 2 for his work indeveloping a high-throughput DNA sequencer. Also, Hitachi’s work with μ-chips(pronounced as “myu” chips) was recognized for its innovative business aspects,
winning it the Nihon Keizai Shimbun Award(The Best Product Award) presented by
the Nihon Keizai Shimbun, Inc.
Hitachi’s overall sustainability efforts
were recognized by being selected as oneof the components in the 2003 Dow Jones
Sustainability Index,* 3 which evaluates
corporate activities from the perspectiveof sustainability.
*1. Held bi-annually, and formerly known as the “Skill
Olympics,” this is a competition where hundredsof young people gather to compete and test theirskills in various trades.
*2. Sponsored by the Asahi Shimbun Foundation.
Awarded to individuals and groups prominent inacademics and the fine arts. Other 2003 award
recipients included Ikuo Hirayama (President,
Tokyo National University of Fine Arts and Music),
Saichi Maruya (writer), and Yasushi Miyashita(Professor, University of Tokyo Graduate Schoolof Medicine).
*3. Officially known as the Dow Jones Sustainability
World Index. This index measures efforts towards
sustainability. It was co-developed by Dow Jones
Indexes (U.S. company that computes stockindexes) and SAM Sustainability Group (Swiss
research institution that studies corporate sustainability). 317 companies from across the world(including 35 Japanese companies) were selected
in 2003.

Member of 2003 Dow Jones
Sustainability Indexes

Quality Assurance Activities System
Customers

Product Planning

DesignManufacturing

Inspection

Delivery/shipment

Customers

Procured goods

Market trends

Quality Assurance Activities
Design
Review

Evaluation andauthorization oftest productManagementof procured
goods

In-line quality
control (QC)

Improvinginspection
techniqueCollecting field data and after-service

Feedback to each activity

Flow from product planning to service
Relation to quality assurance activities

Call center

Control center monitors and controls buildings 24 hours a day andresponds to emergency calls.

Examples of Awards in FY2003

Hitachi staff in competition at The 37th WorldSkills Competition

The µ-chip won “Nihon Keizai Shimbun Award”(Best Product Award)

36

Information Disclosure, Ethics and Human Rights
public about issues including odor andnoise. All complaints were dealt with toprevent recurrence.

Compliance with Laws
and Regulations
While the Hitachi Group was neither
fined nor penalized in fiscal 2003, we
did receive orders from both Aomori and
Iwate prefectures based on the Waste
Disposal and Public Cleansing Law. In thisincident, 14 cubic meters of plastic scrap
were taken by a waste collection service,processed, and then 28 kilograms of theincineration ash were illegally dumpedby the company we commissioned totake care of final disposal. We assumed
responsibility as the source of the original
plastic scrap. We fully accepted theorders to resolve the issue, discussed
the matter with both prefectures, andduly fulfilled our obligations in August
2003. We have since taken measures toenhance both employee training and ourmanagement and checking systems toprevent this type of incident from happening again.
Other environment-related complaints
received in fiscal 2003 included six written and two oral complaints from publicauthorities, and 15 complaints from theRaising Ethical andCompliance Standards
The Hitachi Group has long included“activity in accordance with both laws
and proper company ethics” and “fair andorderly competition” in its basic corporate
philosophy. The Hitachi Group regularly
conducts internal audits of environmental
disaster prevention, accounting, bidding
on public projects, export management,
and other relevant operations.
Hitachi, Ltd. established a Compliance Division chaired by the Executive
Vice President and Executive Office inFebruary 2002, and introduced an internal
whistle-blower system in April 2003. We
produced an Ethics Handbook in March
2003 and distributed it to all employees
for group study. A supplementary e-learning platform has also been developed.
Guest lecturers from outside the company
were also invited to speak at seminars
designed to raise the ethical awareness of

Hitachi Ethics Handbook

executives and employees alike.

Security: Handling Risks
The Hitachi Group gives high priority toensuring the safety of our employees andtheir families. Hitachi established a Risk
Management Depar tment in October
1991 to promote safety awareness.
In fiscal 2003, the war in Iraq and theoutbreak of SARS posed safety risks. Regarding Iraq, we kept a close eye on U.N.
resolutions and issued “Risk Management
Department Alerts” which gave specificinstructions on how to keep safe. At theoutbreak of SARS in China, Hitachi China
reported promptly to the Risk Management Department. We issued warnings in
February and were able to work with thedivisions concerned to respond quickly.
We also rebuilt our satellite communications system in preparation for a possible
major earthquakes in Japan.
We will continue to maintain our stateof emergency preparedness in order toensure safety and ensure smooth business operations.

Risk Management System

Contents■ Centralized control of information

1. Relationship with society
2. Quality assurance and sales activities
3. Handling of other companies’ trade secrets
4. Compliance with export related regulations
5. Respecting engineers’ ethical standards
6. Relationship with suppliers and business partners
7. Procurement activities
8. Use of privileged information and prevention of insider trading
9. Creation of a good working environment
for everyone
10. Handling of Hitachi’s internal information
11. Handling of company assets
12. Business gifts and entertainment
13. Full implementation of rules and self-audits

Decisions

President / Vice President / Managing Directors

Awareness

Risk Management Department■ Simple organizational structure■ Direct line with top management

Hitachi Sites / Affiliated Companies (130 companies)
Risk Management Officers (500 persons)

Providing the needed information
to the persons who need it,
when they need it.

ActionEmployees / Families (1 million persons)A Three-Step Process: Decision, Awareness, and Action
Hitachi Ethics Handbook

e-learning Web Site

Guest lecture on corporate ethics (Nov. 2003)

Harmony with Local Communities
Hitachi Group’s Philosophy
and Policy on Social
Contribution Activities

Hitachi’s Social Contribution
Philosophy and Examplesof Programs

Hitachi runs programs aiming to benefit
society at large, and they also contributeto our continued grow th and vitalit y.
Hitachi believes they are an effective way
to develop common values throughout
Japan and the world, to build strong ties
with people and to gain their trust.

The Hitachi Group’s social initiatives
include activities by Group companies,
employees and six foundations.
Engaging in programs that benefit
society at large not only fulfills the HitachiGroup’s social responsibility, but it also
goes a long way towards raising Hitachi’s
brand value.
In fiscal 2003, Hitachi donated medical equipment to the Chinese government
during its battle with SARS and also
received the Emperor Showa Commemorative Blood Donation Promotion Awardfor its blood donation programs in placesince the 1960s.
Hitachi encourages its employees
to take part in volunteer activities. By
participating in volunteer work and othercommunity programs, Hitachi Group
employees strive to improve themselves.
Volunteer activities not only provide thecommunit y benefit but also ser ve togenerate greater corporate strength.
Specifically, we promote the support ofPhilosophy
The Hitachi Groups strives to demonstrate
its corporate citizenship in response tos o c i a l n e e d s a n d ex p e c t ati o n s, w h i l eendeavoring to enrich the quality of life andrealize a better society.

PolicyThe Hitachi Group promotes various social
contribution activities to build a vibrantsociety based on fostering leadership toimplement reformation for the next era. Thisis achieved by making optimal use of ourknowledge and information technology inthree specific areas, namely, education, theenvironment, and social welfare.

37
volunteer activities in three ways, namely
by providing information, time, and funding. Information about volunteer activities
is sent to Group employees over the company intranet and Hitachi holds hands-on“Hitachi Volunteer Seminars” and “Corporate Citizenship Evening Seminars” to give
employees ideas about how they might
get involved in volunteer work. Hitachi
also operates a “Hitachi Volunteer Support Program” that provides donations
to projects run by domestic non-profit
organizations in which Hitachi employees
participate. Hitachi also operates special
paid leave system for employees who dovolunteer activities.
For more than 30 years, the HitachiGroup’s six foundations have also been
active in contributing to a better society.
Such efforts include childcare support andthe promotion of science and technology.
The Hitachi Group’s Six Foundations
The Odaira Memorial Hitachi Education Foundation
The Kurata Memorial Hitachi Science and Technology Foundation
The Hitachi Scholarship Foundation
The Hitachi Environment Foundation
The Hitachi Mirai Foundation
The Hitachi Foundation (U.S.A.)

Social Contribution Philosophy
Hitachi Group’s social contribution activities
Stakeholder

Hitachi Group
employees• Volunteer activities, etc.

Each HitachiGroup company• Actively implement social contributions to enhance our brand value• Supports its employees’ volunteer activities• Social contributions to carry out social responsibilities such asproviding aid to disaster victims

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

Improvement ofeach employee

Implementation of business activities withincreased enthusiasm and flexible ideas

Increasing thebrand value

Local society▼
Customers

Building abetter society▼
Stockholders▼
Clients

Examples of Social Contribution Activities

Emperor Showa Commemorative Blood Donation
Promotion Award
In July 2003, in appreciation of Hitachi’s long-standing employee
blood donation activities (in place since the 1960s), Hitachi received
an award from Japan’s Crown Prince Naruhito who serves as anhonorary vice president of the Japan Red Cross Society.

Donation of Medical Equipment for SARS

Hitachi Volunteer Seminars

In May 2003, Hitachi donated ten state-of-the-art
portable X-ray machines to China. China’s deputy
health minister presented Hitachi with a certificate
of honor.

Four seminars were held during fiscal 2003. At the “Wild Bird Park
Clean Up,” participants were able to observe the plants and animals
that inhabit Tokyo Bay’s tidal wetlands.

38
Overseas Corporate Social
Contribution Programs
T h e H i t ac h i G ro u p p ro m ote s s o c i a lcontribution programs worldwide as partof its aim to be a trusted global corporate
citizen.

Hitachi Young Leaders
Initiative: Developing
the Leaders of Tomorrow
The Hitachi Young Leaders Initiative(HYLI) aims to develop the Asian leadersof tomorrow. Founded in 1996, it selects
24 students from six Asian countries (Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Japan) to participate
in a five-day program of public forums,
workshops, and local community work.
The sixth HYLI was held in Bangkok in
December 2003 under the theme “Charting a New Course for Asia,” with discussions on economic engines, urbanization,and balance between growth and theenvironment. Participants also performed
voluntary work by helping teach disabled
persons in the community.

EU Hitachi Science andTechnology Forum
Held annually since 1998, the EU Hitachi
Science & Technology Forum invites experts from a wide range of disciplines
to meet and discuss how science andtechnology can contribute to solving Europe’s societal problems. In May 2003 theforum was held in Antwerp on the theme“Energy and its Implications for European
Society.” The results of the Forum discussions were published in a summary reportand distributed widely among European
policy makers.

CFR-Hitachi Fellowship
ProgramSince 1997, Hitachi has been promoting
a fellowship program with CFR* 1, an
influential US think tank in the field of
foreign relations. In this program, Hitachi
invites four or five American leaders of
the next generation to Japan each year
(a total of 20 par ticipants to date) for
research. The 2003 participants included
a US government-af filiated think tankresearcher who studied Japan’s economy
and a US military personnel who examined security issues. Some fellows gavea presentation of their research results to
Hitachi employees and others.
*1. Council on Foreign Relations.

Hitachi International School
Teachers Exchange Program
In 1987, the Hitachi Group established ateacher exchange program (HISTEP*1) topromote mutual understanding between
Japan, the United States, and Europe inareas such as education, culture, andsocial issues. Each spring, seven teachers from junior high and high schools in
Hitachi City and Hitachinaka City spend

two weeks in Europe or the United States,
observing the local education system,
teaching classes, and staying with ahost family. Likewise, each summer, nineteachers from Europe and the UnitedStates spend two weeks in Japan on asimilar program. Since its inception, 199
teachers have participated in the program. In 2003, the program was altered
due to the war in Iraq, with only four
teachers from Europe coming to Japanand no Japanese teachers going abroad.
*1. “HISTEP” stands for the Hitachi International
School Teachers Exchange Program.

Recognizing Students:
The Hitachi Foundation
Community Service Award(Yoshiyama Award)
Each year, Hitachi presents the Yoshiyama Award*1 to ten high school seniors
from across the United States who haved e m o n strate d exc e l l e nt c o m m u n i t yservice leadership. In 2003, ten new recipients were selected for their wonderful
efforts, including work to brighten the
lives of children stricken with severe illnesses and participation in programs tohelp victims of domestic violence.
*1. The Yoshiyama Award was established in 1988
based on a donation from Hirokichi Yoshiyama(Chairman Emeritus, Hitachi, Ltd.) upon his
retirement.

Biannual magazine“the Caring Tree”

Examples of Voluntary Social Contribution Programs Overseas

Open forum of Hitachi Young Leaders Initiatives(Bangkok, Thailand)

2003 Annual meeting of CFR-Hitachi Fellowship
Program (Washington D.C.,U.S.A.)

Recipients of the Hitachi Foundation Yoshiyama
Award (U.S.)“the Caring Tree” features Hitachi Group companies’ social contribution activities around theworld.
http://www.hitachicontribution.com/
EU Hitachi Science & Technology Forum(Antwerp, Belgium)

School visit during HISTEP(Hitachi City and Hitachinaka City, Japan)

Creating a Good Working Environment
Human Resources System:
Bringing out
our Employees’ Best

comprehensive “off-the-job-training.”* 2
The latter involves both on-site training
and education at the various training centers specializing in management, technology, globalization, sales, production, andother disciplines.
Hitachi also suppor ts employees’
individual efforts to develop their skills. In
2003, the Company launched “HitachiLearning Gate,” an e-learning systemthat employees can utilize to enhancetheir skills.

Hitachi, Ltd. uses a fair and explicit evaluation system to assess each employee’s
ability and performance as part of theoverall goal of receiving maximum contribution from employees. This type of evaluation system was adopted for managerial
staff in fiscal 2000 and was applied to all
employees beginning fiscal 2004.
This evaluation system measures theextent to which employees have demonstrated the “Hitachi Values,” the set ofvalues and action standards shared by all
Hitachi employees.

*1. On-the-job-training involves developing the skills
to perform a job through the process of doing
the actual work.
*2. Off-the-job-training involves comprehensive andsystematic acquisition of knowledge and basic
skills in specific advanced disciplines.

Training our Employees

Hitachi Awarded for
Promoting Self-Directed
Learning

Since its inception, Hitachi, Ltd. has
wo r ke d h a rd to d eve l o p e m p l oye e s
based on the philosophy that “a company
is its employees.” All employee training(from new employee training to managerlevel education) is done using “on-thejob-training”*1 and supplemented with

Hitachi, Ltd. received the fiscal 2003
Award of Excellence for Professional Development presented by the Japan Management Association. This award recog-

Training System
Director
Management training

Division manager

Section manager

Manager

Planning staff

Level-based training

nizes outstanding companies that havebecome stronger as a result of employee
development programs. Hitachi wasselected based on its establishment of an
employee development support system
to develop self-sufficient individuals. Thissystem is comprised of “Humanimate 21,”a system that utilizes IT infrastructure toallow users to manage their own development on the Web, and an e-learning portal
for self-directed studying. Both systems
allow employees to actively assess theirskills, learn, and develop their abilities as
they pursue their desired career path. The
JMA found this employee development
platform to be particularly innovative.

Supporting Diversity
Hitachi, Ltd. is committed to providing
male and female employees with thesame professional oppor tunities andto maintaining a working environmentthat allows employees to balance workand family life, formally announcing an F.
F. Plan*1 in March 2003. Also in March
2003, to address the recent problem of

Hitachi, Ltd. receives “JMA (Japan Management Association) HRD (Human Resource
Development) Excellence Award”

Executive development course
Issue / purpose-based Training
Technical training

Globalization Training

Advanced engineering
Education

Professional Engineering
Education

Basic engineeringcourseAdvanced SE Training

Comprehensive
Engineering course

Hitachi Technicalcollege

Pre-departure training for expatriate
Training on international business
Language training

Sales training

Sales skills training
Marketing training
Sales attitude training

Administrative
function-based training

Function-based training (finance/procurement/general affairs)

Production training

Foreman Training
Basic skills training
Hitachi Senior Technical
Highschool
Manager/Team leader Specialist

Evaluation System for Managers
Hitachi ValueBusiness performance

Evaluation of Hitachi
Value standards
Reflected in Hitachi’s employee
management systems

Management Vision
Business

Organization

Individual

Achievements

Plan

Targets

Targets

Results

Evaluation ofindividual results

39

40
insufficient day-care facilities, the Hitachi
Workers Union established a day-care
center for children of Hitachi Group
employees inside the Labor Union Center.
This operation is supported by HitachiGroup companies in the vicinity.
T h e H i t a c h i G ro u p a l s o a c t i ve l y
suppor ts disabled employees. A normalization policy to expand the hiringof disabled individuals and to widen theiroccupational oppor tunities has been
established, and in conjunction with this a
special subsidiary Hitachi You & I programfor employing only mentally disabled
persons was created.

Hitachi, Ltd. has a basic policy regarding
health and safety in place. It sets healthand safety as the top priority, and to thisend Hitachi works to maintain high healthand safety standards and to make further
improvements in this area.
Hitachi, Ltd. makes good use of its
knowledge regarding health and safetyissues acquired over many years of promoting accident-prevention activities,
including the areas of health and safety
management, education, equipment, andthe creation of safe work environments. In
addition to passing this knowledge on sothat it may benefit others, we have introduced our Occupational Health and Safety
Management System as support for oursystematic health and safety activities.
Hitachi is also proactive in keeping
employees healthy. Medical specialists
are available for health consultations
and industrial health professionals are
consulted for assistance as well.
Furthermore, beginning April 2003,
an EAP (Employee Assistance Program)consultation system was launched toassist employees with any problems or“Genki Club,” a daycare center forchildren of Hitachi Group employees

Occupational Accident Rate (per 1 million hours)*1. Stands for Gender Free & Family Friendly Plan.

Health and Safety
Knowledge and EAP

worries they may have. In-house EAPCenters were established whereby an inhouse EAP professional helps employees
solve personal problems and reinvigorate
them by either visiting them in personat their workplace or by helping themover the phone or online. Feedback andopinions from the help sessions are thenreported to management where they areused to make workplace improvements.
This system helps to both rejuvenate individuals and strengthen the organization asa whole.

2.5

All industries

2.0

Manufacturingindustry

1.5

Electrical-related
Hitachi, Ltd.

1.0
0.5
0

Basic Policy for Occupational Healthand Safety

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

(FY)

An accident in the “all,” “manufacturing” and “electrical” categories is counted when it causes worker to miss at least four days of work. For
Hitachi, Ltd., the criterion is at least one day of work.

Basic Policy
While respecting human life and acting in accordance with thelaw, we are strengthening our platform of“continued growth
into the 21st Century as a corporation overflowing with vitality”through health and safety activities based on the following
universal standard evaluations.

Outline of Employee Assistance Program
Support in solving
individual problems

1. Construct a systematic safety management system, andurge managers to set examples for others.
EAP consultation

2. Make genuine safety improvements to equipment and production processes.
3. Enhance safety awareness, and establish a workplace withgood communication by improving safety education levels.
4. Ensure the physical and mental health of our employees andcreate a comfortable workplace.
5. Reinforce health and safety management at branch offices
and production sites.
6. Strictly enforce countermeasures for dangerous management practices (promote disaster prevention activities
against earthquakes, fire, and explosions).

Interview

Employees seekingconsultation
After-care service

Introduction to an appropriate body(internally or outside the Company)

General employees

Education

Administrative
supervisory level staff

Training

Managerial level staff

Lectures•Organization analysis•Consultation regarding solving
problems in the workplace

Expanding the Circle of Social Responsibility
Working with Suppliers forHigh Procurement Standards
The Hitachi Group procures a wide variety
of raw materials, parts and services fromcompanies worldwide. In doing so wetry to ensure transactions are conducted
fairly, and that goods and services are
obtained properly, in the context of thenorms of society, including the relevant
national laws and regulations. We also try
to consider the environment by promoting
green procurement P19 .
The Hitachi Group aims to conduct its
procurement activities on an equal footingwith the companies with which we dobusiness, and in a way that enhances thecorporate activities on both sides of thetransaction. We strive to ensure that society is in no way harmed, and that specificindividuals do not benefit by exploiting
any business transaction.
To ensure fairness we published
Guidelines for Procurement and BusinessTransactions, covering topics such as
ensuring impartiality in business opportunities, transactions on an equal footing,fair conditions based on dialogue, andavoiding improper demands that exploit
one party’s negotiating position.
At the start of business relations, we
make a mutual pledge to conduct business fairly and respect and carefully manage commercial and technical informationthat may be provided to the other party inthe course of business.
To gain the highest trust in society
a n d of fe r p ro d u c ts a n d s e r v i c e s ofhighest quality, the Hitachi Group also
urges its suppliers to strive for continuous
improvement in product quality and cost.

History of Hitachi’s Products and Technology,
and Evolution of Environmental and Social
Contribution Activities

Social contribution activities
Environmental activities

Became a first manufacturer in Japan of three 5-hp (3.6775 kW)
electric motors

1910

Manufactured Japan’s first large DC electric locomotives

1924

Produced its first electric refrigerator

1932

Completed low-pressure 300 m3/h air separator

1953

Built Japan’s first large cold strip mill

1954

Hitachi electron microscopes win grand prix at World Expositionin Brussels

1958

Produced electronic computers using transistors

1959

Developed fully automated clothes washer

1961

Built experimental nuclear reactor
Built the first cars for Japan’s Bullet Train (Shinkansen)

These guidelines provide the standards of conduct that must
be observed by officers and employees of the Company for theexternal procurement of materials, products, services or information necessary for the operations of the Company
1. For procurement transactions, the entire Hitachi, Ltd. Corporate Code of Conduct (Regulation 2393) shall be the basis of
all conduct.
2. Efforts shall be made from a long-term perspective to develop positive partnerships with suppliers, and to maintain andenhance mutual understanding and relationships of trust.
(continued)

1910
1914

Founded engineer
training facility (later tobecome Hitachi SeniorTechnical School)

Built tall smokestack toprevent ground-level air
pollution at Nihon Kogyo
Hitachi Refinery

1936

1940
Founded Hitachi Golf Club
(later to become Omika
Constructed industrial
Golf Center)water supply infrastructurefor Hitachi

1964

Developed train seat reservation system
Manufactured monorail, running between Haneda Airportand Hamamatsu-cho, Tokyo
Began mass production of color television tubes
using rare earth phosphor material

1965

Developed hybrid LSI (Large Scale Integration)

1968

1967

Developed computer for controller’s use
Produced 300 m/min. elevators for high-rise buildings
Developed on-line banking system

1969

Founded the Juvenile
Rehabilitation & Welfare
Center and the Kurata Memorial Hitachi Science andTechnology Foundation

Launched mass production of all-transistor color televisions
Developed computer-aided traffic control system for Bullet Train

1970

Completed prototype of visual information processing robot
Completed file storage device with 1GB capacity

1971
1971

Commercial operation began at Japan’s first 460,000 kW
nuclear power station

1974

Succeeded in the world’s first experiment of fiber
optic communication systems

1976

Completed world’s first field emission electron microscopewith record-high resolution

1978

Completed 300 MW high-voltage direct current transmission
between Hokkaido and Honshu

1980

Succeeded in world’s first micro-level observation of magnetic fieldby the use of electron beam holography

1982

Completed Japan’s first model of improved standard-typeboiling water reactor

1984

1972

Founded the Environmental
Management Promotion
CenterFounded Hitachi
Environmental
Foundation

1984
1985

Founded the
Hitachi ScholarshipFoundation

Founded the Hitachi
Foundation America
in the U.S.

Started mass production of 256-kilobit DRAMs
Put “fuzzy logic” electronic controls to practical use

1987

Completed rear-projection large liquid crystal color display
Developed 4-legged robot

1988

Developed world’s fastest superconductive computer

1989

1995

Developed MR imaging equipment using superconductive components
Developed high-definition TFT color liquid crystal display

Phased out specified
chlorofluorocarbons
1996

1990

Designed high-speed Bullet Train series 300

1993

Developed the original 32-bit RISC processor SuperH family

1994
1996

Developed new ATM that presses and disinfects bills

Guidelines for Procurement andBusiness Transactions

41

Developed Super TFT LCD module featuring ultra-wide viewing angles

1995

Developed rewritable, large-capacity DVD-RAM drive (4.7GB)

1997

Launched Hitachi Young
Leaders Initiative

1998

Developed techinical method of Magnetocardiogram for clinicalapplication to heart disease

Issued firstenvironmental report

Developed small proton accelerator for cancer treatment
Developed 320 Gbit/s optical data transmission system

Started work to acquirecertification under ISO
14000 environmental
management system

1998

Developed 128-megabit single-electron memory

1999

Developed PAM control refrigerator/air conditioner

Initiated GREEN
21 activities

A lithium secondary battery is put into practical use
by manganese-based cathode system

1999

Succeeded in application of digital watermarking technology

2000

Developed application processor for mobile phones

2001

Developed contactless IC chip “μ-chip”
Developed world’s first silent liquid-cooled notebook PC

2002

Developed compact DNA analysis system for SNP typing
Improved power and energy density of high performance lithium
secondary battery for hybrid electric vehicle by 50% comparedto the conventional model

2003

Succeeded in test operation of a circuit which converts slight building
vibrations to electricity for LSI operation
Developed non-invasive blood suger monitoring device
Developed all-around three-dimensional display system

2004

2001

Held “environmental
town meeting”

2003
Received Emperor
Showa Commemorative Blood Donation
Promotion Award

Data on hitachi green web
You can find details on hitachi green web.
http://greenweb.hitachi.com/data

42

Category

Activity

Related page

Data provided on hitachi green web

3

Overview of Financial Results in Fiscal 2003

3

List of Companies Covered by Report (Environmental Impact Data Covered)

Basic Environmental Philosophy

41

History of Activities

Environmental Action Plan and Results

12 – 13

Environmental Action Plan and Results

Environmental Impact Data for Corporate Activities

11

Environmental Impact Data for Corporate Activities (FY2003)

GREEN 21

14

Green Point Average: Results and Targets

Environmental Education and Training

15

Current and required numbers of legally qualified personnel

Environmental Management System

15

Company Profile

Status of ISO 14001 Certification
ISO14001 — accredited production site list

Eco-mind &Management

Environmental Accounting

17

Expenses, Investment, Effect, Efficiency of Environmental Impact Reduction
Cost Breakdown Ratio by Industry Segment
Investment Breakdown Ratio by Industry Segment
Economic Effect Breakdown Ratio by Industry Segment
Investment Breakdown Ratio by Countermeasure

Eco-Products

18

Eco-Product Registration Trends
List of Eco-Products and Data Sheets
Environmental Efficiency of Products (Details and Examples)Green Procurement

19

Effective Utilization of Resources

23

List of Goods Specified in the Green Purchasing Law
Commission Volumes for Containers and Packaging

Increasing ProductTransportation Efficiency

23

CO2 Emissions from Transportation

Prevention of Global Warming

24 – 25

Ratio of Low-emission Vehicles for the Total Number of Company-owned Vehicles
Trends in CO2 Emissions Per Unit of Production, and Total CO2 Emissions

Environmental Report

CO2 Emission by Industry Segment
Trends in Composition of Energy Use
Trends in Emissions and Composition of Greenhouse Gases
Nature-friendly
Products andEco-factories

Volume of New Energies
Chemical Substance
Risk Management

26 – 27

Trends in Emissions for Substances Targeted for Reduction
Survey Results for Substances Covered Under Japan’s PRTR Law
Survey Results for Substances Covered Under Japan’s PRTR Law, by Substance
Ratio of Volume Handled, by Industry Segment
Ratio of Emission and Transfer Volume, by Industry Segment

Waste Reduction

28

Trends in Final Disposal Volume Reduction
Breakdown of Final Disposal Volumes, by Industry Segment
Breakdown of Final Disposal Volumes, by Type
Trends in Waste Emissions
Zero Emissions Sites
Flowchart for the Treatment of Waste and Reusable Waste Products
Breakdown of Recycling Methods

Environmental Communication

29

Web Site Access
Environmental Reports Published, by Site
Information Disclosure via the Internet, by Site

Worldwide
Stakeholder
Collaboration

Issuance of Environmental Report & Contact
Internet Links of Sites
AwardsEnvironmental Town Meetings

30

Status of Environmental Town Meetings

31

Number of Household Electrical Appliances Recycled and Product Recycling Ratio
PC Take-back Results and Resource Reuse Ratio

Sustainable Business Models

32 – 33

Hitachi Environmental Group (Introducing Businesses such as Environmental Protection Equipments)
Energy Saving Solutions
Hitachi Environmental Information Solution (Introducing Environmental Solution System)

Social Report

Contributing to Society through our Business Activities
Information Disclosure and Corporate Ethics
Harmony with Local Communities

34 – 35“Hitachi Kokodemo Hakken!” (You can find Hitachi's Products and Services here!) (Introducing Products and services that
benefit people's work and life around the world)

36

Environment-related Complaints from Public Authorities and the Public (Results and Response)

37 – 38

Global Community Relations and Activities
Overseas Corporate Social Contribution Program

Creating a Good Working Environment

39 – 40

Occupational Accidents

Terminology

TermExplanation

See Page

A Gree’Net

An Internet-based information collection system developed by Hitachi, on environmental information, including environment activities ofsupplier corporations and chemical substances contained in products.

16, 19Alternate Light Surfaces Method (ALIS)

A method to drive panel displays that was developed to achieve high definition and brightness for high definition televisions. The odd- andeven-numbered lines of the lighting surface are brightened in an alternating sequence. It uses a high-definition broadcast with 1,080 effective
vertical scanning lines, without converting down to 1,024 vertical pixels, giving a realistic-looking image. Hitachi has achieved the world’s top
brightness for this type of device, at 1,100 cd/m2 (with the W42-5000 model). The lighting duty time has been cut in half (the cumulative timethat phosphors are lit-up), producing a longer-life product.

21

CEGNET

Short for Chemical Environmental Global Network. An integrated system used by the Hitachi Group to manage chemical substances.

16, 26chemical substances covered
under the PRTR Law

Short for Pollutant Release and Transfer Register. One of 354 chemical groups listed in Appendix 1 of the Law Concerning Reporting, etc., of
Release of Specific Chemical Substances to the Environment and Promotion of Improvement of Their Management, which was enacted in Japan in
1999.

11

EAP

Short for Employee Assistance Program. A program that aims to provide support for the mental, physical, and social needs of employees.

40

ECO ASSIST

A system to build and maintain environmental management systems. A brand of Hitachi, Ltd.

16

Eco-Factory Value

An Eco-Factory indicator that integrates the CO2 measures emissions, waste and chemical substances.

13

Eco-mind & Management

One theme of the Hitachi Group’s environmental vision, involving environmental training and awareness-raising for employees and their families, and implementation of environmental management activities.

9, 12, 14

Eco-Products Value

An indicator of nature-friendly products that integrates current Eco Products indicators with an environmental efficiency indicator.

13

e-learning

A learning process that involves use of a computer and the Internet.

36, 39EMS

Short for environmental management system.

16

environmental top-runner products

Products that are the top in a given industry, based on indicators such as meeting environmental standards, energy efficiency, etc.

13

Environmental Town Meetings

Our term for a meeting between stakeholders and the Hitachi Group to exchange views on environmental activities.

5, 12, 13, 30, 44

field data

Data obtained during actual use in the market.

35

final disposal volume

The volume that is buried in a landfill after treatment such as incineration, etc.

12, 13, 28

greenhouse gases

Six gases, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N20), perfluorocarbons (PFC), hydrofluorocarbons (HFCS, which are
CFC alternatives), and sulfur hexafluoride (SF6). CFC alternatives have a global warming potential that is several hundred to several thousand
tens times more powerful than CO2.

12, 24

GWPt (tonnes GWP)

Global warming potential (global warming coefficient, in CO2 equivalent tonnes). Converted to amount of CO2 (t) by multiplying greenhouse gas
emissions by the global warming coefficient. The global warming coefficient shows the extent of impact on global warming from a greenhousegas, compared to the equivalent amount of CO2.

11, 24

HCFC

Hydrochlorofluorocarbon

12, 13, 19

HFCs

Hydrofluorocarbon

11, 12, 13, 24

HNET

A monitoring system for electrical power transmission and utilities. A brand of Hitachi Industrial Equipment Systems, Co., Ltd.

16

human genome

The information programmed into every person to make us human.

34

inverter-controlled system

A control method aimed at conserving energy, by reducing the electrical consumption by changing the speed of revolution of a motor depending on the load.

21

Japan’s Law on Promoting Green
Purchasing

Japan’s national law officially known as the Law Concerning the Promotion of Procurement of Eco-Friendly Goods and Services by the State and Other
Entities. It entered into force on 1 April 2001. Its aims are to promote procurement by governmental bodies that is exemplary, by selecting productsthat have low environmental impacts, to report the relevant information, and to promote sustainable society.

18

LCA

Short for life cycle assessment. A method of quantitatively evaluating the extent of environmental impacts in a multidimensional and comprehensive way, for the whole life cycle of a product, from the raw materials stage, to usage, to disposal. It could include, for example, calculations of the amount of resources consumed, the emissions of CO2 and other gases to the atmosphere, and quantification of environmental
impacts by category, such as global warming.

16, 21life cycle

All stages of a product from production, use, and disposal through to recycling (raw materials, production, transport, use, collection, disassembly, and proper disposal).

16, 18, 21

modal shift

Shifting the mode of transport from freight transport on arterial roads to the use of rail transport and ships, which both offer low-pollution masstransport systems, and combining this with the flexible use of truck transport at rail and marine terminals.

13, 23nanoimprint

A molding process on the nano scale by which an imprint is made on the target material such as resin membranes using a metal mold containing miniscule bumps and depressions.

34

Nature-friendly Products &Eco-factories

One theme of the Hitachi Group’s environmental vision, involving product manufacturing and production activities that take the environment
into account.

2, 9, 12normalization

The effort to improve the welfare of society by aiming to guarantee the right, to the greatest extent possible, for disabled persons to live a lifestyle thesame as everyone else.

40

NOx

Nitrogen oxide

11, 12

ODPt

Ozone depletion potential (ozone depletion coefficient in CFC equivalent, in tonnes).

11

PBB

Polybrominated biphenyls, a type of specified brominated fire retardant.

12, 13

PBDE

Polybromodiphenyl ether, a type of specified brominated fire retardant.

12, 13PCB

An oily substance for which manufacture and import is banned in Japan due to its toxicity. PCBs are in long-term storage, but have been disappearing or lost, leading to concerns about environmental pollution. A law that entered into force in July 2001 requires the proper disposal ofthese substances by June 2016.

12

PFCs

Perfluorocarbon

11, 12, 13, 24

PMParticulate matter

12, 13

REM

Short for Recyclability Evaluation Method. A system of evaluating a product’s ease of recycling.

16

RoHS Directive

The directive of the European Union on Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment. Targeting
electrical or electronic equipment, it prohibits the use of 6 substances in any products sold in the EU on or after 1 July 2006. There are currently 25
member countries in the EU.

5, 12, 13, 15,
19

SF6

Sulfur hexafluoride

11, 12, 13, 24

six chemical substances

Lead, hexavalent chromium, cadmium, mercury, and two types of brominated fire retardants (PBB, BBDE).

19

SOx

Sulfur oxides

11

stakeholders

All the parties interested in or affected by an organization, including consumers, governmental bodies, financial institutions, shareholders, suppliers, local communities, and employees, etc.

5, 9, 12, 29

Sustainable Business Models

One theme of the Hitachi Group’s environmental vision. These are business models that will help build a sustainable society, for example,
through products and services from businesses based on resource recycling, businesses that support recycling industries, and systems basedon sound energy cycles.

2, 9, 31

substances in the “reduce” category

Substances that the Hitachi Group classifies as “prohibit” or “reduce” and substances selected by each facility.

12, 13, 27

transformer

Equipment that converts the high-voltage electricity from a power company to a voltage that can be used locally.

25

transportation efficiency

The amount of C02 emissions from transport, divided by the weight of goods transported.

23

transportation factor

The transport efficiency during the year being evaluated, divided by the transport efficiency during the base year.

23

universal design

The concept of providing products and services that can be used by as many people as possible, regardless of age, gender, physical condition,or situation, etc.

3, 34

WEEE Directive

The European Union Directive on Waste Electrical and Electronic Equipment. It will require manufacturers to be responsible for collecting andrecycling any electrical and electronic products sold in EU member countries on or after 13 August 2005.

31

Worldwide Stakeholder Collaboration

One theme of the Hitachi Group’s environmental vision, involving the concept of working toward sustainable development by fostering a common sense of values through communication with various stakeholders.

9, 12, 29zero emissions

To the greatest extent possible, achieving the state in which no emissions are discharged from the overall production process, by striving toensure that resources are recycled. Exact definitions vary with each company. The Hitachi Group defines zero emissions as final disposal volume of 1% or less of the total, and equaling no more than 5 tonnes.

12, 13, 28

Postscript
Thank you for reading this 2004 edition of Hitachi Group’s Environmental Sustainability Report.
With this edition, we did our best to reflect the comments received from readers of last year’s report and from our “Environmental Town Meeting ,” many of which indicated a desire to know more about the actual processes behind activities,
and to hear from the actual product developers. As a result, this year we included direct interviews with product developers
and personnel responsible for environmental activities, as well as dialogue with stakeholders. We hope that these editorialchanges have made it easier to see the human face of the Hitachi Group.
Regarding corporate social responsibility (CSR), we had many departments get actively involved in the preparation of thisreport, including the Global Business Division of Hitachi Group Headquarters, the Corporate Brand Management Office, theCorporate Planning and Development Office, the Employee Relations and Human Resources Department, the Legal Division,
the Public Relations Department and the Social Contribution Department of the Corporate Communications Division, theCorporate Quality Assurance Division, the Compliance Division, the Customer Satisfaction Promotion Center of the Corporate
Marketing Group, and the Group Procurement Division. We made it clear to all that this should be a report that readers
outside the company can understand.
Throughout our editorial process, various requests arose, for example, with contributors indicating the kind of information
they would like to present next year, and suggesting the kind of data that should be collected. Overall, I believe this process
has strengthened our ability to prepare future reports.
I think there are still various aspects that need improvements in the future, like making these reports easier to read. We
would be very happy to hear your comments about the type of world that the Hitachi Group is working toward, and how we
can improve our reporting.

Production assistance: Hitachi, Ltd., Design Division
Hitachi Intermedix Co., Ltd.
Japan for Sustainability

Chief Editor
Yoichi Takahashi,
Director, Corporate
Environmental Policy Division

Third-Party Comments on Hitachi Group’s
Environmental Sustainability Report 2004
Comments on Environmental Reporting
Valdez Society• The report is very detailed overall and it contains a large
amount of information. The reporting for the corporate group,with its wide range of business activities, has been madecompact by providing links to Web pages that have moredetailed information.
• We applaud the introduction of GREEN 21 here as a tool toaccurately determine the environmental management situation on a consolidated reporting basis, and its use to evaluate
the Group’s performance. Since this is an important evaluation indicator, we urge you to dedicate more space to it in
the future and to enhance your reporting on the analysis andfuture prospects.
• Regarding Eco-Products, by including content from customers
and developers in the articles, instead of just listing the products,
the report has benefited with greater depth and persuasiveness.
• Although information provision is an emphasis in your logistics
initiatives, this report makes evident the inadequacy of current
initiatives. We urge you to make stronger initiatives in the future,with modal shifting as a key strategy.
• The title of the Sustainable Business Models section draws
the reader’s interest, but the contents of the section do notreally satisfy expectations. We hope to see Hitachi show theworld a more innovative business model, as one of Japan’s
leading companies.
• Regarding CSR, the Message from the President conveys
the desire to expand activities in this area, but the overall
impression from this report is that the emphasis is placed on
the Group’s technological prowess and ability to present ideas,
and this leaves the reader without a clear overall view of yourDiscussion with the Valdez Society

CSR activities. The kind of CSR performance that is being
expected of Japanese companies is a multidimensional effort
that involves the environment, human rights, labor, and productresponsibility. We do hope to see improvements in the Group’ssocial contribution reporting in the future.

Reply from Hitachi, Ltd.
This time we included direct dialog with third parties right in the
production process of this report. We believe that increasing
the efficiency of logistics requires efforts with a long-term perspective, and includes rethinking the distribution system. Regarding sustainable business models, this time we introduced
some specific examples, but in the future we will develop andintroduce more forward-looking business models. Regarding
CSR, this time we paid the most attention to technological ability and ability to present ideas, as they relate to our corporate
philosophy. In the future, we will make a greater effort to provide information from the perspective of the CSR that the world
expects to see.

Comments on Social Contribution Reporting
Prof. Iwao Taka, Reitaku University
I commend your efforts to include CSR items in this report onenvironmental management, and your major progress in presenting information in a systematic way. CSR reporting styles
have not yet become standardized, even at the global level. I
sense that readers might not imagine the challenges you faced
in preparing this part of the report.
You have introduced major activities in five areas, including the section on “Contributing to Society through Business
Activities.” From reading the report, I can understood the efforts you are making in the social realm, in terms of “harmony,”“sincerity,” and “innovation,” which are part of the company’s
founding philosophy. These are evident in your efforts to carefully consider the local community and your employees, andyour capacity building activities for future generations, etc.
The idea that permeates this report is to “contribute to society through our main business activities.” I agree completely
with this approach. But the fact is that corporations have adimension that can lead to unintentional harm on society andthe environment. For example, even if Hitachi Group companies are not directly involved, it is conceivable that various
problems that could arise in developing countries due to thepressure on subcontractors to keep costs down—problems
such as the exploitation of child labor or the use of materials
because they have a low cost, even if they have a large impact

on the environment.
I hope that your company will demonstrate leadership
regarding issues like these, which go beyond the scope of
the kinds of issues companies faced in the past. I close with
one comment about the content of your report. I felt that
this report will be easier to read if you make a greater effort
quantify things that can be quantified, such as the numbersof promotions of women to management-level positions. With
such changes, I think that Hitachi will attract more and more
admirers of its efforts.

Response from Hitachi, Ltd.
This is the first time we include the CSR perspective in our social
contribution reporting. Because the scope of activities relating to
CSR is wide, we will work to expand global and wide-reaching
coverage in this area, based on our new group-wide structure.
We will also work on our quantitative indicators, and make aneffort to enhance our provision of information in reports.

We welcome your feedback on
Hitachi’s environmental activities.

hitachi green web
http://greenweb.hitachi.co.jp/en/
Find out more about our environmental
activities at this Web site. Please visit
our survey page to provide your input.

Inquiries:

Hitachi, Ltd.
Corporate Environmental Policy Division
6, Kanda-Susugadai 4-chome, Chiyoda-ku, Tokyo 101– 8010, Japan
Tel: ( 81) 3 – 3258 – 1111
Fax: ( 81) 3 – 3258 – 5810
E-mail: kankyohon@hdq.hitachi.co.jp

Printed using 100% vegetable oil
ink containing no volatile organic
compounds.

Hitachi, Ltd. is a memberof the Green Purchasing
Network.

This report was printed on Hitachi Recycled Paper.

This mark is for Hitachi
Recycled Paper containing
100 percent used pulp.

ZZ- E 0 05

Hitachi, Ltd.
Corporate Environmental
Policy Division
July 2004

Hitachi Group—Environmental Sustainability Report 2004
Thank you for your interest in the Hitachi Group and its environmental activities.
It is our pleasure to send you the 2004 issue of the Hitachi Group Environmental Sustainability Report.
In this report, we describe our activities during the most recent fiscal year, from the perspective ofcorporate social responsibility (CSR). We have divided the report into two sections—one on environmental and other on social aspects of our activities. We have also made an effort to respond to
feedback received on last year’s report, and to give readers a clearer description of our activities. For
example, we have provided more detail on initiatives around the world, an interview by employeeswith the president of Hitachi, Ltd., and a dialogue between customers and developers of products
designed with the environment in mind.
For those who would like more details, besides this report we also provide detailed information on
our Internet Web site.
The Hitachi Group will continue to enhance efforts to answer its responsibility to society, and toprovide information about these activities.
We hope that you enjoy reading this latest report, and look forward to receiving your comments
and suggestions.
Please send comments and suggestions to
Hitachi, Ltd., Corporate Environmental Policy Division
6, Kanda-Surugadai 4-Chome, Chiyoda-ku, Tokyo 101 – 8010, Japan
Tel: (81) 3 – 3258 – 1111
Fax: (81) 3 – 3258 – 5810
Email: kankyohon@hdq.hitachi.co.jp

Feedback from Readers’ Survey — Hitachi Group Environmental Sustainability Report 2003
Hitachi Group received 138 responses to the Readers’ Survey in 2003. Below is a summary of the main points. We thank respondents for their valuable feedback.

Comprehensibility
No reply (3%)
High
(43%)

Average(47%)
Low (7%)

VolumeNo reply (6%)

Too much(9%)

Appropriate(78%)
Too little (7%)

Content

No reply (5%)
Good
(56%)

Reader’s standpoint
Customer (25%)

Poor (1%)
Non-profit organization (NPO) (8%)

Hitachi Group employee or family member (8%)

Researcher / Educator(20%)

Heard about the report from
Newspaper(37%)

Average
(28%)

Other
(35%)

Business partner (4%)
Hitachi Web site (7%)

No reply (4%)

Magazine(8%)
Environmental seminar (5%)

Other
(38%)
Exhibition (1%)

Requests and suggestions:Praise• I like the style of having the president’s anddirectors’ own words in the report.
• I think the report did a good job of summarizing the activities of the entire Hitachi Group.
• The Highlights section makes it easy to identify
the key activities of the previous year.
Room for improvement• The report focused too much on activities onlyin Japan.
• I would like to see more about the actual processes behind the activities.
• There are too many specialized terms, making
the report difficult to read.
In response to comments, here are some of
the changes we made in this year’s report:• Data from world-wide operations were included in the summaries of environmental impacts.
• We gave more details in the coverage of specific activities.
• We have provided a glossary of special
terminology.

Readers’ Survey

Hitachi Group—Environmental Sustainability Report 2004
Please answer the questions below and mail or fax the completed survey.
Hitachi, Ltd., Corporate Environmental Policy Division
6, Kanda – Surugadai 4 – Chome, Chiyoda – ku, Tokyo 101 – 8010, Japan

Fax: (81) 3 – 3258 – 5810
Q1. What did you think of the Hitachi Environmental Sustainability Report? (Check one only.)(1) Comprehensibility

High

AverageLow(2) Volume

Too muchAppropriate

Too little(3) Content

Good

Average

Poor✱ Please explain the reason(s) for your selections.

Q2. Which sections of the Hitachi Environmental Sustainability Report did you find valuable?
(You may select more than one.)Highlights of 2003

Message from the President

Environmental Report
Environmental Initiatives

Eco-mind & Management

Nature-friendly Products & Eco-factories

Worldwide Stakeholder Collaboration

Sustainable Business Models

Social Report
Contributing to Society through Business Activities

Information Disclosure, Ethics and Human Rights

Harmony with Local Communities

Creating a Good Working Environment

Expanding the Circle of Social Responsibility✱ If any of the selections above particularly interested you, please explain why.

Q3. Given the chance, would you be interested in sharing your opinions as a participant in one of
Hitachi’s “environmental town meetings”?
Yes

No

Q4. From what standpoint did you read this report? (Check one only.)
Business partner

Customer

Environmental non-profit organization

Government / public administrator

Hitachi Group employee or family member

Media organization

Resident near a Hitachi Group facility

Researcher / educator

Other

Q5. How did you find out about the Hitachi Environmental Sustainability Report? (Check one only.)
Environmental seminar

Exhibition

Newspaper

Other

Hitachi Web site

Magazine

Q6. If there are any environmental issues you would like the Hitachi Group to address, please let us know.

Thank you for your cooperation. Please tell us about yourself (optional).
Name
Address
E-mailOccupation: name of company

Age