ENVIRONMENTALSUSTAINABILITY REPORT 2002

Hitachi Group

2 Contents and Editorial Policy

3 Our Future, Your Future
4 Message from the President
5 Executive Commitment
6 Environmental Vision
8 EcoValue Plan 2010
10 Environmental Action Plan and Evaluation
11 GREEN 21 Activities Results Report
12 Eco-mind & Management

13

Eco-management Structure
From GREEN 21 to Sustainability Progress Indicator (SPI)

14

Environmental Education - Nurturing Eco-minds
Environmental Management System

15

Environmental Accounting

16 Nature-friendly Products & Eco-factories

Editorial policy of this report
The Environmental Sustainability Report centers on the results andenvironmental activities of the Hitachi Group, and informs our readersof plans we intend to carry out in the future.
This report contains the following:●The Hitachi Group’s newly adopted Environmental Vision●Explanations on employee relations and social contribution activities
as part of Hitachi’s social role in creating a sustainable society●Concise coverage of Hitachi’s main activities and results. The
environmental considerations of individual products and otherdetailed data are published on our Web site.
●The addition of actual result data, which until now, have been
published in a separate booklet. Starting with this report, they will be
included in the main report to allow for easier reading.
For further details,
refer to the hitachi
green web homepage at:

http://greenweb.hitachi.co.jp/en/(See page 36 of this report for a copy of the data list published on the hitachi
green web homepage. The homepage also contains information about the latest
news releases from Hitachi.)Report period
Centered on fiscal 2001 (1 April 2001 to 31 March 2002)

Scope of report

17 Nature-friendly Products
Design For Environment Assessment and Eco-products
Chemical Substances Used in Products
18

Green Procurement
Increasing Product Transportation Efficiency

19 Eco-factories
Prevention of Global Warming
20

Waste Reduction

21

Chemical Substance Management

22 Worldwide Stakeholder Collaboration

323 firms of the Hitachi Group (Hitachi, Ltd. and its 322 related companies,
subsidiaries and affiliates)
We conducted a survey on the environmental impacts of consolidated group firms
and reported on those firms that account for 85% of the Hitachi Group's overall
environmental impact.

Reference indicators“Sustainability Reporting Guidelines” (Global Reporting Initiative)“Environmental Report Guidelines, Fiscal Year 2000 Version” (Ministry for the Environment)“Environmental Performance Indicators for Business, Fiscal Year 2000 Version”(Ministry for the Environment)“Environmental Reporting Guidelines, Fiscal Year 2001 Version”(Ministry of Economy, Trade and Industry)

The next Environmental Sustainability Report is scheduled
for release in May 2003.

Highlights 2001
●Establishment of a new Environmental Vision

23 Environmental Communication
24

Environmental Town Meetings

25

Opinions on Hitachi’s Environmental Sustainability Report

26 Third Party Comments on the Environmental
Vision and EcoValue Plan
27 Employee Relations

Based on scenario planning with a target date of ten years into
the future (the year 2010), the Hitachi Group established a new
Environmental Vision. The vision states the future direction wewill take towards creating a sustainable society, based on our
Sustainability Compass.

●Communication with stakeholders
We believe that through collaboration with our stakeholders we
can realize the creation of a sustainable society. Based on this,we held an environmental advertisement contest and set up
town meetings with stakeholders.

29 Social Contribution Activities
30 Sustainable Business Models

31

Constructing Business Models- Product Take Back and Recycling

32

Offering Total Environmental Solutions

33

New Technology Development for Environmental Solutions

34 Data Summary

Cover Front cover: Winning entries in the environmental advertisement
contest sponsored by the Hitachi Group
Rear cover: Our Determination as a Global Citizen
2

The cover of the Environmental Sustainability
Report 2002 is based on six of the winning entries
collected from members of the general public in the
categories of Award for Excellence, Eco Products
Exhibition Visitors' Award, and the Original Idea
Award, in response to our Environmental
Advertisement contest.
“My entry illustrates the ease with which both Hitachi’s conventional
and latest models of washing machines can be disassembled as an
expression of Hitachi’s stance on environmental issues. Without
realizing it, when people purchase Hitachi’s products they areparticipating in environmental preservation activities. My entry
features the catch phrase ‘It looks so innocent – Hitachi,’ and refers
to the manufacturer’s obligation to think more about recycling
without being forced to do so.” (Comments from the Award for
Excellence winner)

Sustainability:
Stakeholders:Award for Excellence
winning entry
Yoshitaka Suzuki

Aiming for sustainable development through the balancing of environmental
protection, economic development, and social responsibility.
All parties with an interest in the organization.

Our Future, Your Future
The Future Direction of Hitachi and Society

Towards “Green Frontiers” (regionally independent sustainable societies) in 2010
A diverse and fulfilling
lifestyle with emphasis
on individuality

Signs of a new industrial
structure

As a result of the spread in broadband communications, there isa trend towards the establishment of “small office home office”(SOHO) systems, and an increase in the number of people working
from home. This shift away from conventional workplaces meansthat the way people spend their time is diversifying to suit the paceof individual lifestyles. Society is becoming increasingly networkbased as information technology sweeps its way into our homes,
linking us to the outside world through a variety of networks.
As businesses that deal in intellectualand high technologies, and advanced
services fight to survive by demanding
greater quality from their employees, thedisparity in wages is widening. However,in contrast, the disparity between regions
has diminished.

Products and services developed with consideration forenvironmental issues are highly regarded in the market place, andan increased amount of capital is being invested into environmental
ventures. While the focus of business is slowly shifting away fromthe production of goods and moving towards the provision ofservices, the manufacturing industry is producing unique productswith new technology such as high-tech, nano technology, IT, andenvi-ronmental technologies. New service industries are also
emerging in response to an aging society.
Many corporations are reducing the scopeof their operations and decentralizing as
they expand into other regions. Also, thespeed with which business can be carriedout between regions is increasing as
corporations equip themselves withinformation technology and other modern
tools.

Regional independence
and
its multi-facetted appeal

An end to further
environmental
destruction by 2010

In addition to streamlining local governments, expanding civil
markets, and increasing regional demand, regional areas are taking
positive steps towards establishing new industries. They are doing
this by actively decentralizing and reorganizing power structures in
the hopes of attracting new corporations. New industries are
beginning to emerge in a variety of regions as many areas regulate
the activities of these businesses while helping them to grow.

Environmental awareness is growing both domestically (inJapan) and overseas. Corporations, administrative bodies, andcitizens are working together to take a proactive stance against
global environmental issues, and we are slowly beginning to see
results.

The allure of regional living is growing
due to the establishment of regionallyindependent societies, causing people tomove away from large cities and into
regional ones.

Corporations are further strengthening
their efforts in tackling environmental
issues. Environmental preservation
activities are also proceeding smoothly asa result of their cooperation withstakeholders on a variety of levels, andcontinued maintenance of corporate
environmental databases.

Envisaging the future of societyHigh Sustainability Brand Value

Green Frontiers
A regionally
Independent Sustainable
Society

Dark LifeMy World

A stressful societythat reinforces rules
and regulations

A superficial society
based on environmental
countermeasures

High regional independence

Low regional independencePower City
A network society
centered aroundlarge cities

The environmental burden caused by waste and exhaust gases
is becoming less centralized and reduced in scale due to an
alleviation in the number of peoplechoosing to live in large cities.

Low Sustainability Brand Value* Sustainability Brand Value: Corporations that proactively promote environmental
management activities and implement sustainability strategies are widely
supported by markets and consumers. While attracting talented people,
corporations with high sustainability brand value are supported by stakeholders ingeneral, and the transition in business models from the sales of goods to theprovision of services is accelerated.

As the very structure of society changes in order to produce
a sustainable recycle-oriented society, we may wonder whatkind of corporations will be left in the year 2010 and whatsociety would be like. The above scenarios are outlines of four
possible future societies and were developed using the
scenario planning method. Members from a variety ofdepartments from the Hitachi Group held a series of group
discussions to review ideas about what Hitachi can do torealize the most appropriateof our scenarios – the “Green
Frontier Society”. The resultsof these discussions were
presented in “Environmental
Vision(Sustainability
Compass)” as the future
direction of the HitachiGroup.
Scenario planning3

Message from the President - The Hitachi Group as a Global Citizen
The expansion of economic activities that far exceed the restorative capabilities of the naturalenvironment has become an important topic, and problems such as global warming, atmosphericpollution, a n d wa s t e d i s p o s a l , a l l o f wh i c h ar e g l o b al en v i r o n m en t al i ssu es, ar e i n t h e f o cu s.
As a result, a recycle-oriented society has become indispensable, and there is currently a great
movemen t t o wa r d s t h i s . Th a t i s t o s a y , w e n eed t o d ev el o p a so ci al st r u ct u r e t h at n o t o n l y su p p o r t s
environme n t a l p r e s e r v a t i o n a c t i v i t i e s , b u t t h at al so p r o m o t es su st ai n ab l e d ev el o p m en t .
In terms o f p r o d u c t i o n a c t i v i t i e s , m a n u f act u r er s ar e p u r su i n g “r eso u r ce p r o d u ct i v i t y , ” t h e co n cep t o f
producing p r o d u c t s wi t h a h i g h e r l e v e l o f f u n ct i o n al i t y f r o m f ew er r eso u r ces. I n d i v i d u al s ar e al somaking lifestyle changes in order to find a balance between consumption and minimizing thegeneration o f wa s t e . Fu r t h e r m o r e , I b e l i ev e w e n eed t o co n st r u ct a so ci al sy st em t h at su p p o r t s t h i s atvarious st a g e s , f r o m t h e d e v e l o p m e n t o f r eso u r ce r ecy cl i n g t ech n o l o g i es an d sal es an d d i st r i b u t i o nactivities , t o t h e r e c o v e r y o f u s e d p r o du ct s. A s p r esi d en t o f t h e H i t ach i G r o u p , I h o p e t o p l ay a
pos itive r o l e i n p r e s e r v i n g t h e n a t u r a l e n v i r o n m en t an d co n st r u ct i n g a su st ai n ab l e so ci et y .
The Hitach i Gr o u p i s c o m p r i s e d o f a p p r ox i m at el y 1 0 0 0 co m p an i es, b o t h i n Jap an an d o v er seas, an d i s
involved i n a b r o a d c r o s s - s e c t i o n o f c om m er ci al act i v i t i es, f r o m co m p o n en t m an u f act u r i n g an d t h e
es tablis hme n t o f p o we r p l a n t s , t o a c t i v it i es i n t h e f i n an ci al an d ser v i ce i n d u st r i es. O u r o p er at i o n s
account f o r a p p r o x i m a t e l y 1 . 5 % o f J a p a n ’ s G D P , an d 0 . 1 5 % o f t h e co u n t r y ’ s t o t al en er g y co n su m p t i o n .
The large s c a l e o f o u r o p e r a t i o n s r e q u i r es t h at w e t ak e a g l o b al st an ce t o w ar d s en v i r o n m en t al i ssu es,
and in or d e r t o p r o m o t e a c t i v i t i e s i n t h i s ar ea, w e i n i t i at ed en v i r o n m en t al co n f er en ces i n t h e t h r ee
major reg i o n s o f Eu r o p e , As i a , a n d Am e r i ca d u r i n g 2 0 0 1 .
However, a s g l o b a l c o m p e t i t i o n i n t e n s i f i es, w e m u st f i n d a co m m o n set o f v al u es sh ar ed b y p eo p l efrom dive r s e c o u n t r i e s a n d r e g i o n s i n or d er t o i n cr ease t h e ef f i ci en cy o f o u r b u si n ess m an ag em en t
operation s . Bu t b e f o r e t h i s i s p o s s i b l e , co r p o r at i o n s m u st h av e a co m p l et e g r asp o f t h e n eed s an dvalues of the societies and regions in which they operate. It is also extremely important forcorporatio n s t o e s t a b l i s h a s t r o n g s e n s e o f t r u st w i t h t h ei r st ak eh o l d er s b y i n d ep en d en t l y w o r k i n g
towards so l v i n g a v a r i e t y o f k e y i s s u e s . I b el i ev e t h at H i t ach i h as t h e cap ab i l i t y t o b eco m e t h e m o sttrus ted en t e r p r i s e i n t h e wo r l d , a n d t h a t t h i s v er y f act w i l l h el p i n cr ease an d en h an ce o u r co r p o r at evalue.
We at Hit a c h i a r e n o t j u s t m e m b e r s o f a b u si n ess, b u t al so m em b er s o f so ci et y , an d w e ar e st r i v i n g t o
fos ter glo b a l c i t i z e n s o n wh i c h t h e f u t u r e w i l l r est .

B e c oming a c orpora tion
tha t c re a te s e nvironme nta l va lue

May 2002
President and Director

Ets uhiko Shoya ma

4Executive Commitment

Senior Vice President and Director

Recently I began composing Japanese haiku poems asa hobby. With neither a feel for wabi or sabi (beauty andelegant simplicity), nor any poetic sense, my work isharshly criticized as senryu (satirical poetry), rather than
beautiful haiku. Nevertheless, I have become
increasingly interested in my hobby, and am thoroughly
enjoying it. In addition, as my compositions improved, I
made a startling rediscovery.
It is impossible to compose haiku amidst the hustle
and bustle of company life. One needs to get away andstand amidst nature, where poetry flows more freely. By
remembering what it is like to be away from it all and theoverwhelming feeling of warmth that nature provides,
one is able to compose poetry about this wonderfulrelationship between people and nature. It is as if themagnificent natural environment itself is a haiku.
I have lasting memories of the time I took a trip into
the Shirakami Mountains. When I stepped into thepristine Japanese beech forest, the splendor of the green
leaves stretched as far as the eye could see. The air, time,and space were all wrapped in the gentle green of thetrees. I remember feeling as if my soul had just beencleansed.
A natural environment such as this enriches the heartof people. I realized then that in order to create a society
filled with happy people, it is imperative that we protect
the natural environment together with our cultural
heritage.
While realizing that we must both protect nature andcare for the environment, we drew up a newenvironmental vision based on a scenario of what theworld would be like ten years from now (2010). Our
Environmental Vision takes up the challenge of creatinga recycle-oriented society that will continue to develop
into the future. This vision also plans out the future
direction of our business operations using anenvironmental compass, which we refer to as our“Sustainability Compass.”“Sustainability Compass” indicates the four directions
in which our environmental activities are aimed. Here, I
would like to briefly describe my understanding of eachof these directions.

Eco-mind & Management
Individual awareness is an important aspect ofenvironmental consideration, and by raising
environmental awareness through educational activities,
and teaching people how to change their lifestyles so thatthey have less impact on the environment, we can
improve our eco-management. We provide educationalcourses so that all employees and their families not only
possess an awareness of environmental issues, but also
apply this knowledge in their own lifestyles.

Worldwide Stakeholder Collaboration“Young people these days…” is a phrase often heard
in response to social problems, but in actual fact, many
young people proactively participate in activities thatcare for the environment. We aim to expand the scope ofsuch activities and create a sustainable society throughthe promotion of idea and opinion exchanges withstakeholders and through the nurturing of common
environmental values.

Nature-friendly Products & Eco-factories
At our operation sites there is much debate during
product development as to whether a product has been
designed with due consideration for the environment. If a
product clears our independent standards for ecoproducts, it is labeled with an environmental indicatorand released together with a data sheet containing its
environmental specifications. In addition, we have set
ourselves the goal of becoming a leader in eco-productmanufacturing through the utilization of new
manufacturing technologies.

Sustainable Business Models
As part of our eco-management structure, we consider
the provision of sustainable business models including
services such as the recovery and recycling of usedproducts to be very important. Equally, corporations
must be able to provide environmental solution systems.
We are striving to change our status from one of amanufacturer, to that of “Best Solution Partner.” That is
to say, not merely a provider of solutions, but a true
partner based on a relationship of trust. I hope that byjoining hands with our customers, we will be able torealize the creation of a sustainable society.

Finally, it is our job to ensure continued protectionof the natural environment we are in effect borrowing
from our grandchildren.

Together with a statueof Basho Matsuo

5

Environmental Vision

The Hitachi Group has drawn up a new Environmental Vision (Sustainability Compass) based onStandards for Corporate Activities (A Basic Philosophy) and Environmental Protection Action
Guidelines with the ultimate aim of creating “Green Frontiers” (regionally independent sustainable
societies) by 2010.

Standards for Corporate Activities (A Basic Philosophy)
and Environmental Protection Action Guidelines

Standards for Corporate Activities (A Basic Philosophy)
The basic philosophy of Hitachi, Ltd. is to further promote the principles upon which the Company was founded harmony, sincerity and a pioneering spirit - to take pride in Hitachi and to contribute to the society of which
Hitachi is a part through superior technologies and products.
In accord with this, the Company is fully aware that enterprises are also members of society, and, in addition toa deep devotion to just and transparent corporate activities, the Company strives as a responsible corporate
citizen to bring about a society of real wealth through harmony with the environment and the aggressive pursuitof activities that contribute to society.
Enacted June 1983 (revised September 1996)

Environmental Protection Action Guidelines
As part of Hitachi’s Standards for Corporate Activities (A Basic Philosophy), these guidelines
express standards in response to environmental issues concerning the Company’s businessactivities.
1. 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.
2. 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 andsite 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.
3. Through a concise understanding of how best to resolve environmental problems facing the world, theCompany will work to make contributions to society through the development of highly reliable
technologies and products that meet those needs.
4. The Company gives due consideration to reducing the environmental effects a product will havethroughout its entire life cycle, from the R&D and design stages, through to production, logistics, use,and disposal.
5. The Company will investigate and examine the effect of its business operations on the environment andseek to introduce new technologies and materials with superior functionality regarding environmental
safety, energy conservation and resource conservation.
6. In addition to observing international, national and local regulations with regard to the environment, theCompany will develop its own standards where necessary to maintain environmental conservation.
7. 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.
8. 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, throughenvironmental preservation activities carried out from a broad perspective.
9. 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.
Enacted March 1993

6

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

Nature-friendly Products& Eco-factories

N●Improve resource productivity and promotesustainable use of energy and resources
through products and services developedwith consideration for the environment.

Core ValueW

A corporate community inbalance with natureand the creationof a sustainable societyE

A pioneering spirit
Responsibility for future generations
Global citizenshipWorldwide Stakeholder
Collaboration

Eco-mind & Management●Extensive information disclosure●Proactive collaboration with stakeholders●Expand sustainable business models●Promote the spread of low environmental
impact business initiatives● Strengthen management systems
that promote sustainable business activities● Foster advanced eco-minds among
employees and their families

S
Sustainable Business Models

Why establish an Environmental Vision (Sustainability Compass) now?
In keeping with the times, the environmental
activities of the Hitachi Group keep evolving.
The New Environmental Vision (Sustainability
Compass), a platform for eco-management, wasintroduced in order to help realize our 2010
“Green Frontier” society scenario (see page 3).
The basic policy of Sustainability Compass is tocreate a business community, and ultimately, a
recycle-oriented society that is able to co-exist

in harmony with nature. We promote our actions
based on the key concepts of “a pioneering
spirit,” “responsibility for future generations,”
and “global citizenship.” As part of Sustainability Compass, our activities are grouped into
four basic categories, that of north, south, east,
and west. We believe that positive advancementin each of these directions will lead us closer tothe creation of a sustainable society. On thecompass, the directions north and south indicate

business activities, and the directions east andwest indicate corporate activities.
However, these activities have only just begun.
In accordance with EcoValue Plan 2010
(Roadmap) and the more fundamental Action
Plan outlined on the following pages, we intend
to collaborate with our stakeholders, while
promoting the disclosure of information.

7

EcoValue Plan 2010
EcoValue Plan 2010 is a roadmap indicating the future direction the Hitachi Group intends to takein order to realize the Company’s Environmental Vision. In keeping with social changes, we will
expand upon the goals we have set ourselves.

Category

FY2001

Environmental Management Strategy

Promotion of environmental management

Assessment system●GREEN 21 Version 2 (integrationof results assessment/sustainability assessment)

Environmental education●Strengthen employee training and education systems

Eco-products●Expand the rate of eco-products to 60% (by FY2003)

Effective use of resourcesand energy●Draw up and adopt an environmental efficiency indicator

Chemical substances usedin products●Abolish the use of lead solder usedin printed circuit board connections (by FY2003)

Increased efficiencyof transportation●Draw up and adopt a green logistics (transport efficiency) indicator

Eco-mind & Management

Nature-friendly products
Nature-friendly Products& Eco-factories●Reduce the unit requirements for production-related CO2 emissions
Eco-factories
Worldwide Stakeholder
Collaboration

Prevention of global warming●Reduce emissions of global-warming gases other than CO2
Waste reduction●Reduce the amount of waste for final disposal(promotion of zero emissions)Chemical substance reduction●Reduce the emissions of chemical substancesby 15% in FY2003 (based on FY2000 levels)

Disclosure of information●Full disclosure of information

Communication●Conduct environmental town meetings*3

Community activities●Continue regional activities at each operation site

Constructionof business models●Expand product recycling systems, leases, and rental businesses

Environmental
solution businesses●Expand the spread of environmental solution models for business

Sustainable Business Models■Environmental management - history

8

Compliance withenvironmental regulations

Environmental
operations

1971 Established the Environmental
Management Promotion Center
1972 Established the Environmental
Research Center
1973 Initiated environmental audits

1991 Established Corporate
Environmental Policy Division
1992 Established the Environmental
Committee:Formulated
the Environmental Action Plan
1994 Established the ISO
Certification Committee

Environmental
management
1998 Released the first Environmental Report
1999 Established the Senior Executive
Committee for Environmental Policy
Established GREEN 21 activities
and the environmental logo mark2000 Disclosed environmental
accounting results Establishedthe Green Awards for Social Contribution
2001 Established Hitachi’s
Environmental Vision

FY2005

FY2010Development and advancementof environmental management

Become a corporationthat creates environmental value●Development of GREEN 21 Version 3●Development of educationaland regional activities for employees and their families●Establishment of ecological lifestyles●Draw up and adopt the Eco-products Value Plan*1●Development of advanced (top-runner) environmental products
in accordance with the Eco-products Value Plan
●Abolish the use of six chemical substances,including hexavalent chromium, lead, and cadmium●Increase efficiency of product transportation(promotion of a modal shift), and introduction of low-emission vehicles●Draw up and adopt the Eco-factories Value Plan*2●Improve the Eco-factories Value Plan

●Reduce unit requirementsfor production-related CO2 emissions by 20% (based on FY1990 levels)●Reduce unit requirements for production-related CO2 emissions
by 25% (based on FY1990 levels)●Reduce SF6 emissions to 3% or less of the purchased quantity●Reduce PFC emissions to 10% or less (based on FY1995 levels)●Reduce the amount of waste for final disposal
to 80% or less (based on FY1998 levels)●Reduce the amount of waste for final disposal to 70%
or less (based on FY1998 levels)●Reduce emissions of chemical substancesby 30% (based on FY2000 levels)●Promote a reduction in chemical substance emissions●Extensive information disclosure for operation sites●Develop environmental town meetings at regional and international levels●Promote cooperation with the communities●Promote volunteer activities, such as programs that foster talent*1: An eco-products indicator that combines the existing eco-products indicator with an environmental efficiency indicator.
*2: An eco-factories indicator that combines the volumes for CO2 emissions, waste, and emissions of chemical substances.
*3: The name of communication meetings held with stakeholders in order to discuss environmental issues.

Promotion ofenvironmental
management

Further development and advancementof environmental management

Become a corporationthat creates environmental value

9Environmental Action Plan and Evaluation
The following is our Environmental Action Plan for fiscal 2002, and anevaluation of our performance in 2001. For a description and current
evaluation of each activity see the page indicated below.

2001 performance evaluation key: ○:Accomplished activity △:Needs improvement ☆:New target

Category/activity
Eco mind & Management

Promotion of Environmental
Management

Green 21

Environmental
Management System

Activity targets

Target values

Performance
Target date evaluationin 2001

Aiming towards consolidated operations of the Hitachi Group’s environmental preservation activities, and endeavoring to strengthen
environmental management systems that are in accordance with environmental regulations. Further, the Hitachi Group will take up
environmental management as one of its business strategies, and strive to become a corporation that creates environmental value.

Implementation of an environmental management system(principally at non-manufacturing sites)(representing 85% or more of the environmental burden of consolidated group companies)

P.13

21% improvement (domestic)(based on FY2001 levels)

FY2005○／☆

21% improvement (overseas)(based on FY2000 levels)

FY2003△Acquire ISO 14001
certification

FY2002○

P.14,34

P.11,34

Improve green points (GPs)

Environmental Accounting

Establish environmental accounting practices throughout the Hitachi Group and its affiliate companies.

○

P.15,34

Environmental Education

Create advanced eco-minds amongst employees and their families
Increase the level of employee education and number of licensed and certified personnel

○

P.14

○
○

P.17,35
P.18

Expand range of eco-products

FY2003

60% or greater

Promote green procurement activities

Eco-products

Nature-friendly Products and Eco-factories

Abolish the use of lead solders in printed circuit board connections

Abolished(Hitachi Group products)

FY2003△

P.17,35

Abolish hexavalent chromium, lead, cadmium, mercury, PBB, and PBDE*1)

Abolished (electrical and electronic
devices covered by RoHS*2))

FY2005☆

P.17

Abolished

Domestic: End 2003
Overseas: End 2006

○

P.17

Promote the reduction of environmental loads (emission of CO2 ,NOx, PM {particulate matter} during product transportation)○

P.18,35

Reduce the basic unit of production-related CO2 emissions
as an energy saving measure at factories△

P.19,35○

P.35

Abolish products that use HCFCs*3)

Increase efficiency of Transportation

Preventionof Global Warming

Reduce global warming gases other than CO2(in compliance with the Industrial Action Plan on HFC, SF6, and PFC*4))

Reduce the amount of waste for final disposal

Waste Reduction
Control the amount of waste and reusable waste generated
Promote zero-emission facilities

Reduced by 25%(based on FY1990 levels)

FY2010SF6: Emission volume of 3% orless of the purchased quantity

FY2005

PFC: Reduced emissions by 10% or
greater(based on FY1995 levels)

FY2010

Reduced to 80% or less(based on FY1998 levels)

FY2005

Reduced to 70% or less(based on FY1998 levels)

FY2010Planned reductions and settingof target values for each site

FY2005☆

28 facilities

FY2005○{Prohibited substances} Totally abolished{Emissions} Reduced by 15%(based on FY2000 levels){Emissions} Reduced by 30%(based on FY2000 levels)

FY2005
FY2003○Chemical SubstanceManagement

Thorough management of chemical substancesand reduction of emission volumes

PCB Management

Strict storage management (quantity, leakage etc.) of electrical devices that use PCBs, such as transformers and capacitors

P.20,36☆

P.21,36○

P.21

FY2005Worldwide Stakeholder
Collaboration

Hitachi is committed to strengthening communication with stakeholders (customers, government bodies, shareholders,business partners, and general citizens), and information disclosure activities under the following categories:

Environmental
Communication

Global Citizen Activities

Sustainable
Business Models(Information disclosure and communication)●Disclosure of information through PR and advertising activities●Periodic release of information about production sites through the publication of environmental reports and our Web site
●Active participation in a variety of environmental activities outside the Company, from presentations and lectures, to regional activities●Conducting environmental town meetings with stakeholders●Opinion exchanges through questionnaires, surveys, and study tours

Become involved in activities that contribute to society through the planning of volunteer activities and by encouraging
employees to actively participate in local volunteer activities

P.23〜26●Carry out environmental awareness education activities with local communities through the introduction of environmental activities, and by opening Hitachi facilities to the public●Cooperation with local NGOs
●Implementation of local afforestation activities

P.28、29Work towards expanding the recycling and collection of used products, and the spread of recycle-oriented business models

P.31

Maximize the use of the Hitachi Group’s environmental preservation technologies, and strive to develop total solutions,
including low environmental impact business and environmental information solutions

P.32

Actively promote R&D that contributes to environmental preservation activities

P.33*1) PBB: Polybrominated biphenyl, PBDE: Polybrominated diphenyl ethers*2) RoHS: Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment EU (proposed)*3) HCFC: Hydrochlorofluorocarbons*4) HFC: Hydrofluorocarbons, SF6: Sulfur hexafluoride, PFC: Perfluorocarbons

10○

Reference
page

Green 21 Activities Results Report

Green 21 Activities

Results Report

While using specific evaluation standards to continually improveand advance all our environmental activities, Hitachi has actively
promoted a system of harmonious co-existence with theenvironment together with the managers of our business groups
and major affiliated companies, who play an instrumental role inour environmental management structure.
●Evaluation target: 8 categories (43 performance indicators)●Evaluation frequency: Once a year
●Calculation method: 100 points in each category, with apossible maximum of 800 points.
(Evaluation points are referred to as “green points” (GP).)●Targets:
Domestic: To achieve a 21% improvement in green points byfiscal 2001
(Base year: FY1998)
Overseas: To achieve a 21% improvement in green points byfiscal 2003
(Base year: FY2000)●Application method: Results are displayed in a radar chart tofacilitate decisions of business groups andmajor affiliated companies concerning
environmental management. By doing thison an annual basis, progress can bequantitatively evaluated.

The results for fiscal 2001, the final target year for domestic sites,
are as follows. The green point average*1) improvement rate*2) of
37.2% for Hitachi, Ltd. and our domestic affiliated companies
exceeded our target of 21% (based on fiscal 1998 levels).
Improvements were particularly noticeable in the categories ofEnvironmental Management Policies and Environmental
Consideration of Products. Improvements in the first category are due
to our successful implementation of a groupwide Environmental
Action Plan at all of our production sites, made possible through astrengthened environmental management structure. Similarly,
improvements in the second category are a result of further
developments with regard to eco-products.
Conversely, the green point average dropped in the category ofEnergy Saving at Facilities due to a decrease in unit values as theresult of a decline in sales. Our task now is to continue strengthening
activities in these areas, while creating more advanced indicators
based on our new Environmental Vision. This new system will bepromoted as GREEN 21 Version 2.

■Green Point Average Trends and Improvement Rates■Green Points Acquired by Production Sites (FY1998/ FY2001 comparison)*1) Green point average = the number of green points obtained by a site divided by the total
number of sites*2) Rate of improvement = (the GP* for the new fiscal year – the GP for the base year) dividedby (the maximum GP score possible – the GP for the base year)●Hitachi, Ltd. and affiliated companies (domestic)■Hitachi, Ltd. and affiliated companies (domestic)（Points）

Environmental Management Policies

Information Disclosureand Education

ChemicalSubstances
Management

80

Improvement rate

Compliance withEnvironmental
Regulations

600

FY2001 results

FY2001 Total Improvement rate
548 GPs
37.2%

800

FY2000 Total Improvement rate
498 GPs
24.7%

50

20

Environmental
Accounting

Recycling

FY1999 Total Improvement rate
14.0%
455 GPs

Environmental Considerationof Products

Equivalent toFY1998 levels

400

200

FY1998 Total
399 GPs

Target area0
0Green point
improvement of 21%

200

Energy Saving at Facilities■ Evaluation Criteria (8 categories/43 performance indicators)
No Category

Principal performance indicators

2

Degree of development of environmental management policies,
Environmental
Management Policies structure of activities, consistency, comprehensivenessCompliance with
List of regulations, preparation and management ofEnvironmental Regulations independent standards, sufficiency of licensed and certified personnel

3

Environmental
Accounting

4

Implementation of product assessment,
Environmental
Consideration of Products plans for and execution of green procurement

5

Energy Saving
at Facilities

1

Equipment expenditure, maintenance costs,
stages in the management process

7

Rate of improvement for energy conservation, amount ofenergy conserved, measurement coverage rate
Recycling and appropriate disposal of industrial waste,
Recycling
recovery and recycling of used products
Chemical Substance Preliminary inspection system for new chemical substances, status of Pollution
Management
Release and Transfer Register (PRTR), plans for reduction and the abolition of substances

8

Information Disclosure Information disclosure outside the company, internal and externaland Educationcommendations, regional activities, education and training

6

400

600

FY1998 results

800（Points）■Example of Evaluation Standards
Category ④ Environmental Consideration of Products
Category ③ Environmental Accounting
Category ②: Compliance with Eenvironmental Regulations
Segment No
Additionsection1

Item
0 point
・No list of applicable
Arrangement status of regulations andregulations
equipment, etc

1 point

2 pointsーー

3 points
・Incompele list of
applicable regulations
and equipment, etc

4 pointsー

5 points
・Complete list of
applicable regulations
and equipment, etc

・No internal standards ・Internal standards are
Setting status ofInternal standards are set for all of applicable items, substances.
2
are set.
set for part of items orinternal standards
substances.
・Internal standards are・Internal standards
・Internal standards are
set allowing a margin ofexceeding theset regardless of theー
50 % to the regulation environmental
degree of margin to thestandards are set.
values.
regulation values.
・Not higher than the ・Clear all the internal
values regulated bystandards
Compliance status with3
lower than the values regulated by laws, but exceedsinternal standards continuously or frequentl ylaws, but exceed internalinternal standards
standards temporarily
sufficient counter plan・Countermeasures
・Insufficient counterplan report,
underwaycompleted
No counter-planclarification of causes,
counter budget etc.)
The regulated number of qualified staff plus more than one secured.
The same number of qualified staff as regulated secured (No margin）
4

Sufficiency of legallyqualified personnel

・No training program ・Insufficient training ・Sufficient training
・Complied with part ofregulations
program（schedule of program
qualification acquisition, （selection of
no selection ofcandidates, budget, etc.)
candidates, budget, etc）

・Complied with all of
regulationsーFor further details on data, see P.34.

11

Eco-mind & Management
Bountiful crops are the result of good quality soil. For
instance, if we were to compare our environmental
activities to a small bud, the soil which nurtures that
bud is eco-management, and it is the awareness, the“eco-mind”, of our employees which helps this bud
grow strong. This small bud is growing rapidly, anduntil it finally bears fruit as a sustainable recycleoriented society, we will perform each of ourenvironmental activities to the best of our ability.

Eco-mind & Management

Eco-mind & Management
Eco-mind & Management
In order to realize eco-management, Hitachi promotes organizationaland educational structures as well as management systems that
support the awareness and actions of each company employee.

Eco-management Structure
We are developing an eco-management
structure on a consolidated corporate basefrom which to promote activities related toenvironmental issues. We established the
SeniorExecutive
Committee
forEnvironmental Policy, an executive
management level body led by Hitachi’s
president, which assesses and sets the
direction for our environmental policies andactivities.
Information regarding policies andactivities set by the Committee is releasedby the Environmental Management
Operational Committee. Further, theEnvironmental Committee and its various
sub-committees develop surveys, sharedtechnologies, and evaluation methods
designed to resolve the topics and issues
that are central to drawing up policies andachieving targets.

As a body specifically designed topromote fundamental environmental
activities in accordance with business
operations, the Committee has appointed
environmental promotion officers tomanage the environmental departments foreach of our business groups and affiliatedcompanies.
In fiscal 2001, we initiated environmental
conferences in the three major regions ofEurope, Asia, and America. At these conferences, in addition to making ourenvironmental policies more comprehensive
and sharing information about the laws andre-gulations of various countries and theirmarket trends, participants are asked tothink of new ways in which we canstrengthen environmental activities at ouroperational sites.

From GREEN 21 to Sustainability
Progress Indicator (SPI)
With the establishment of our new
Environmental Vision (Sustainability
Compass), GREEN 21 Version 2(Sustainability Pro-gress Indicator (SPI))
will replace GREEN 21, an environmental
activity evaluation system adopted in fiscal
1998. SPI will be systematically designed
to complement Sustainability Compass asa means for measuring our progress inachieving the goals we set ourselves. SPI
is to be divided into several parts - Ecomind & Ma-nagement, Nature-friendly
Products & Eco-factories, Worldwide
Stakeholder
Collaboration,
andSustainable Business Models - to ensurethat our Roadmap and action plans for
future direction are enforced. This new
indicator will be drawn up and announced■Eco-management Structure
President

Senior Executive Committee
for Environmental Policy

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

Environmental Management Enforces environmental policies and develops
environmental information and activities (semi-annual)Operational Committee
Corporate Environmental Policy Division
Business Groups
Environmental Committee
Assesses environmental issues anddraws up policies (semi-annual)Group directors, CEOs,
environmental operation
officers

Affiliated companies

Presidents andenvironmental
management officers

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

Major affiliated companies

Presidents,
environmental
operation officers

Environmental Management Operational Committee meeting

Global Conference

Production Facilities
Operations heads
and environmental
management officers
Affiliated companies

Eco-factories Committee
Reduces environmental impact
caused by production activities

Production Facilities
Operations heads
and environmental
management officers

Based on the consolidated
accounts of approx. 1200 firms

Presidents andenvironmental
management officers
Environmental Conference (Europe: Brussels)

13

Environmental Education– Nurturing Eco-minds
The
Hitachi
Group
has
an
environmental education system aiming
to nurture eco-minds, in other words,
making employees think more about
environmental issues, and encouraging
specialists to study and implement newenvironmental
technologies.
This
education system can be divided into twobasic categories: group training andonsite training.
As part of our special employee
education system, group training focuses
on educating internal auditors forenvironmental management systems, aswell as educating planners andmanufacturing departments about ecoproduct development. In fiscal 2002, wewill focus on general environmental
education activities through the Internet,
with the aim of improving environmental
awareness amongst executive-level

management staff, and creating ecominds amongst our general employees.
Onsite education activities also target
eco-mind creation by strictly enforcing
environmental activities as well as
resource and energy conservation
activities based on ISO14001 standards
at each site. In addition, we teachemployees with certain job classifications
the correct operation procedures andemergency drills with regard tooperations that have a notable impact on

Seeking continued improvement inenvironmental management and the
reduction of environmental risk, we haveestablishedanenvironmental
management system based on theinternational standard ISO14001. In
accordance with this, we promote

continued participation in all of ourenvironmental activities. In fiscal 1999,
our entire manufacturing base hadreceived ISO14001 accreditation, and we
aim to acquire accreditation at theoperation bases of all our nonmanufacturing sites, such as softwareand services companies, during fiscal
2002.
Our business sites seek to makecontinual improvements not just based on
the results of their own internal audits,
carried out to assess the effectiveness ofenvi-ronmental activities, but also based on
the periodic audit results of accredited
auditors outside the Company. We hostseminars for environmental auditors to
improve the quality of internal audits, andregister qualified staff as auditors at theseseminars.
Furthermore, we have been carryingout environmental and performance
audits from a managerial standpoint as

To be introduced in FY2002■Trends in Acquiring ISO14001 Certification

Environmental Management
System■Education System
Special education
Group training

Eco-products development training

Generalemployee education

Eco-mind education (via the Internet)

Special education［Training that meets ISO standards］

Generalemployee education

220
200

head auditing training

Education about environmental
management

Training for employeeswith certain job classifications

Number of sites

Onsite training

Auditing training

Onsite eco-mind creation

General employees

Administration

Executive
management level

Affiliated companies (overseas) 198
Hitachi, Ltd.and affiliatedcompanies (domestic)
173

180
160
140
120
100

0

23

27

23
132
17
89 8

80
60
40
20

216

150
39 1
6 3

171

193

115
81

38

1995 1996 1997 1998 1999 2000

2001

（Fiscal year）■Environmental Audit System
Types of Environmental Audit

Frequency

Environmental Policy Office Once every 3
audits (performance audits)
years

Group training for internal auditors

Auditors

Content

Auditors from Prevention of environmental problems
Corporate
Environmental Environmental management from
Policy Division a managerial standpoint

Auditors fromInternal At least once the facility toa year
ISO14001 environmental
be audited
environmental audits
auditsAuditors from an
Audits thatmeet
Once a year accredited facility
ISO14001
other than the one
standards
to be audited

Efficacy of environmental management
systems at the departmental level
Compliance with laws and regulations
Establishment of autonomous environmental
objectives and targets
Suitability as well as appropriate implementationand maintenance of environmental
management systems
For further details on data, see P.34

14

Eco-mind & Management

Environmental Accounting
Hitachi is striving to help the public
better understand the Company’s stanceon environmental activities throughinformation releases on the distributionof ma-naged resources, as well as
releases concerning environmental
technology and environment-preserving
products. In fiscal 1999, we introduced
our first environmental accounting system
in order to promote efficiency andcontinual improvements in the areas ofenvironmental
investment
andenvironmental activities.
In addition to environmental activityrelated plant and equipment investment
fi-gures, which we have been announcing
since fiscal 1997, costs include ordinary
expenditure items, such as R&D costs
and the cost of operating and managing
environmental conservation facilities. The
effectiveness of environmental activities isassessed both in terms of economic
results (monetary values) and quantitative

results (based on the degree ofenvironmental
impactreduction).
Economic results are calculated on the
results obtained from obtainable valid
data. Quantitative results are based on
our fundamental principal of contribution
to society through the development ofsuperior technology and products,
meaning that these results are calculated
according to the degree of environmental
impact reduction achieved not only
during product manufacturing, but also
during product usage. Furthermore, ecoefficiency is assessed according to theamount of cost reduction achieved foreach environmental impact item.
In fiscal 2001, we recorded an 8%
increase in environmental impact
reduction expenditure compared with theprevious year, while eco-efficiency
increased by 6%. Because the increase ineco-efficiency should exceed that for
expenditure, we will focus on improving
internal
environmental
accounting

Environmental Performance
Evaluation System
We have created an Environmental
Performance Evaluation System toquicklyandaccurately
compileinformation
about
environmental
performance
relatedtoourenvironmental activities. This system,
establishedon
ourintranet,
automatically calculates environmental
data registered by our production
facilities and affiliated companies. The
results are effectively used to plan environmental activities for the HitachiGroup, as well as our business groups,
affiliated companies, and individual
production facilities.

Intranet homepage for our Environmental
Performance System■Trends in the Implementation ofEnvironmental Accounting■Environmental Performance Evaluation System●Cost (expenditure)（100 million yen）

900
800
700
600
500
400
300
200
100
0

Hitachi, Ltd.
Affiliated companies

283

821

883

539

588

282

295

267

1998

1999

2000

●Cost (investment)

2001（Fiscal year）

Corporate Environmental
Policy Division●Data searches (calculation) for
the Hitachi Group, affiliatedcompanies, and individual sites●Analysis ofdownloaded data
●Environmental
policyinvestigations,etc.

Transfer of data between Hitachi
business groups andaffiliated companies

Intranet

Hitachi, Ltd. and affiliated companies/Data Collection Department●Confirmation (calculation) ofcollected site data
●Provision of collected site data
●Data downloads（100 million yen）

300
250
200
150
100
50
0

Hitachi, Ltd.
Affiliated companies

Group data
213

Production facility
data

180
154
144

57

68

1998

1999

59
2000

36
2001
（Fiscal year）

Environmental
Sustainability
ReportEnvironmental
performancedatabase●Results (economic effect)（100 million yen）

250

Hitachi, Ltd.
Affiliated companies

200

176

187

134

146

150
100
50
0

37

42

1998

1999

42
2000

41
2001

●Green 21●Water consumption and waste●Eco-products
water discharge●Reduction of lead solders ●Energy consumption●Consumption volumes for ●Waste and reusable waste material
containers and packaging ●Chemical substance usage●Green procurementand discharge, etc.

Production facilities and affiliatedcompanies/Environmental
Supervisory Department●Data registration using a browser
and confirmation of registered data

（Fiscal year）

For further details on data, see P.34.

15

Nature-Friendly Products & Eco-factories
Objects created by Nature are returned to theecosystem once they have served their purpose. In
contrast, the majority of conventional man-madeobjects place a large burden on the environment.
Therefore, in the future, we intend to follow Nature’s
example and develop products that tread lightly on
the ecosystem not only during the manufacturing
process, but also during usage. We have establishedstrict independent standards, and our eco-factories
are manufacturing eco-products while controlling
environmental impact.

Nature-Friendly Products & Eco-factories

Nature-friendly Products & Eco-factories
Nature-friendly Products
During product design, it is essential to assess the potential environmental
impact of a product. Hitachi is endeavoring to develop environmentallyfriendly products through the implementation of a product assessment
system, green procurement, and similar activities.

Design For Environment
Assessment and Eco-products
Design For Environment (DFE) is an
ideology based on the principle ofminimizing the environmental impact of a
product over the course of its life cycle,
from the selection of a product’s
component materials, to its manufacture,
distribution,use,
recoveryanddisassembly, and proper disposal. With
this in mind, we have introduced the
Design For Environment Assessment
System, an assessment method applied toeach product during the development
stage. Before a product can be labeled as
an “eco-product,” indicating that it has asuperior environmental rating, it mustreceive a minimum rating of 2 points (outof a total 5 points) for each assessment
item, or a total average of 3 points ormore.
We
provideenvironmental

information about our eco-products
published in catalogs and on our Web site
in the form of an environmental data sheet
and environmental logo mark.
As of March 2002, we have developed
240 products, including a total of 1,504
different model types, classified as “ecoproducts.” In terms of sales, theseproducts account for 22% of our overallsales volume, and we are making efforts

Chemical Substances
Used in Products
During product manufacturing, we aim
to use only those chemical substancesthat are non-harmful to the environment.
Therefore, we promote the abolishment oflead solders that were used in the printed
circuit board connections of conventional
electrical and electronic devices. Currently,■Complete Life Cycle Product Design Ideology

50
Component Production Distribution
materials

Usage

RecoveryandDisassembly

Proper
Disposal

60

Target value40

240 products and1,504 different
model types

30

22

20

Reuse and Recycling■Examples of Ecoproducts■Eco-product Registration Trends
Total sales comparison (%)
60
Actual value

Resource
conservation

we test components used in certain
products to check their heat-resistance, as
well as checking their connection reliability
using a mixing process. Although we wereunable to achieve our goal of abolishing
the use of lead solders in fiscal 2001, we
continue
topromotetechnology
development in this area, and have set a
new target of fiscal 2003. In regard to
products that use HCFCs, during fiscal
2001, we completed the switchover to
HFCs for turbo-powered refrigerators, andplan to complete the switchover for shopand office use air conditioners by October
2002. Furthermore, we have started
working towards the goal of abolishingother chemical substances used inelectrical and electronic devices, such as
hexavalent chromium, lead, mercury,cadmium, and bromine-based flame
retardants (PBB and PBDE), by fiscal

30
Vacuum cleaner Karuwaza Clean Ball: model number XV-PE915

1040% reduction in power consumption
50% reduction in resource usage

3
0

2000

2001

2002

2003（Target）（Fiscal year）■Design For Environment Assessment System Criteria
Design For Environment
Assessment System

Category
Resource reduction
Product longevity
Resource recycling

Provision of information
through an environmental
data sheet andenvironmental logo mark

Expanding our range of ecoproducts (60% by 2003)
Products that meet or exceed thestandards set in accordance with
the Design For Environment
Assessment System are registered
as “eco-products.

Ease of disassembly
Ease of processing
Environmental
safetyLife cycle stage

Assessment criteria

Selection of component
Resource conservation, compactness, lightweight,
materials, production, distribution conformity, high yield, standardization
Upgradability, ease of repair and maintenance,
Usage
durability, reliability
Reusability, conformity of component materials, use of recycled
Reuse, distribution materials, promotion of resource recycling, labeling of materials
Ease of disassembly, selection of component materials,
Disassembly
ease of separation, labeling of materials
Production, distribution, Crumbling, fragmentation, disassembly andseparation, ease of processing
disassembly
Selection of component Potential toxicity, potential harmfulness, explosiveness,materials, production,
distribution, usage,
potential for implosion, potential hazard
disassembly, disposal

Energy conservation

Usage, production

Provision of
information

Usage, disassembly Provision of information regarding processing, provision of
information regarding product disposal

Residental ceiling mounted fixture with
100W Twin-tube circular fluorescent lamp
Pearumic IC
20% reduction in power consumption(when used in full power mode)

Energy conservation, energy consumption, energy efficiency
Cash dispenser: model number HT-2808EX
30% reduction in power usage
30% reduction in resource usage

For further details on data, see P.35.

17

Green Procurement
To create products that have a low
environmental impact it is essential to beable
toprocurematerials
andcomponents with reduced environmental
impact. Hitachi distributes copies of its
Green Procurement Guidelines tosuppliers, and requests that they provide
the Company with certain information
about themselves and their products via
the Internet. This includes information
regarding the environmental preservation
activities of the supplier, environmental
impact reduction details for the products
being procured (such as resource andenergy conservation, as well as recycling
details), together with information on
chemical substances used in products

up their procurement investigations. In the
future, we plan to carry out these types ofinvestigations as a group in the Kansai,that are subject to our independent
management standards. We make theinformation collected available to all of themembers in our group, and aredeveloping eco-products by effectively
utilizing this in our design support andmaterials procurement systems. By March
2002, we had completed surveys on 2000
of our suppliers.
Further, in February 2002, we hosted
the Green Procurement Components
Exhibition. 57 of our suppliers participatedin the exhibition, displaying componentsthat reduce environmental impact, as wellas providing visitors with information
about trends in environment-related
technologies. 820 Hitachi employees
attended the exhibition in order to follow

Increasing ProductTransportation Efficiency
In order to regulate carbon dioxide(CO2) and nitrogen oxide (NOx) emissions
during product transportation, we areworking to create an efficient distribution
system. As part of this, we aim toincrease the efficiency of our producttransportation methods by promoting
collective transportation with othercompanies, and building a cooperativetransportation system.

■Green Procurement Activities
Supplier (Green Supplier)Internet: disclosure of environmental informationand green procurement details
Purchasing: purchase of products that have
reduced environmental impact

Green Companies
Hitachi Group

Green Procurement System
Sales: providing consumers with productsthat have reduced environmental impact

Internet: disclosure of environmental information, and provision of environmental
data sheets and Hitachi’s environmental indicator mark for eco-products

Consumer (Green Consumer)■Transportation System Improvements – Example 1(Kansai-Shikoku Collective Transportation System)
Hitachi Transport System, Ltd. (Kansai)

Hitachi Transport System, Ltd. distributes
products to the Shikoku region
Goods belonging to
Hitachi Transport System, Ltd.

Green Procurement System
homepage (log-in page)

Green Procurement Components Exhibition(held at Hitachi’s head office in February 2002)■Transportation System Improvements – Example 2(Cooperative Transportation System)

Logistics Company A (Kansai)

Logistics Company A distributes
products to the Kansai region
Goods belonging to
Logistics Company A

In this example, Hitachi Transport System, Ltd. and Logistics Company A are dispatching goods
to the Kansai and Shikoku regions. However, since Hitachi Transport System Ltd. is in charge ofcollective transport in the Shikoku region, and Logistics Company A in the Kansai region, freightcapacity (efficiency) is doubled. (A reduction in transport vehicle numbers due to increased
freight efficiency = a reduction in CO2 emissions)

Hitachi Group
production facility

Dispatch of Hitachi’s products(outward bound)

Warehouse in Kansai region

Kanto region
distribution center for
Production Facility B

Dispatch of Production Facility B’s
products (inward bound)

Production Facility B

Hitachi’s products

Production Facility B’s products

A 50% reduction in transport vehicle numbers due to a reduction in inward-boundempty vehicles = a large scale reduction in CO2 emissions

For further details on data, see P.35.

18

Nature-Friendly Products & Eco-factories

Nature-friendly Products & Eco-factories
Eco-factories
In order to reduce the environmental impact at each of its production sites, Hitachi
is creating eco-factories working to prevent global warming through energy
conservation measures, reducing waste and managing chemical substances

Prevention of Global Warming
Energy Conservation
Energy conservation activities must be
carried out in order to realize the 6% globalwarming gases reduction target set for Japanin the Kyoto Protocol. Until now, we havemade continual improvements to our
production-related CO2 emission unit
requirements based on our Environmental
Action Plan. This has included increasing theefficiency of our air conditioning systems aswell as introducing high-efficiency motors andenergy-saving equipment on a groupwide
basis. For example, our Telecommunication
Systems Division used financial assistance from
NEDO* to introdu-cing BEMS (Building Energy
Management System), a system based onmathematical principles. Using BEMS together
with their onsite energy monitoring system,
the Telecommunication Systems Division used
the results obtained from this process tocreate an ope-rating system that can estimate
time periods for the following day when theenvironmental impact of air conditioning canbe minimized.
In fiscal 2001, our production-related CO2
emissions decreased by 15% compared withfiscal 1990 levels. However, this result was

1% higher than the previous year due to alarge drop in output.
* NEDO: New Energy and Industrial Technology

Hitachi’s CO2 Emissions
Reduction System
To stimulate activities that reduce CO2
emissions, we have introduced a CO2
Emissions Reduction System. This systemassesses whether production facilities
have attained their reduction targets forCO2 emissions by comparing annual target
values and actual values for the amount ofenergy (electrical power or fuel) converted
into CO2 at each production facility. The
CO 2 Emissions Reduction Systempromotes efficient energy conservation
activities through the energy-saving
activities fund; a special in-house fund thatawards performance points based on theabove evaluation. We intend to test thissystem for two years starting in April 2002,
and will target approximately 100
production sites that account for 80% of
the our overall CO2 emissions. If it issuccessful, the system will be officially
implemented at the end of the trial period.

We have begun introducing renewableenergies, including the use of solar power
at two sites in Japan - Hitachi System
Plaza Okayama (20 kW of solar power)and Hitachi Cable, Ltd.’s Takasago
Works site (10 kW of solar power).
Further, in support of our new energy
creation objectives, we were recognizedunder the Japan Natural Energy Company
Ltd.’s Green Power Certification System,and have signed a contract to provide
them with 1 million kW of annual wind
power.

Solar power system introduced
at Hitachi System Plaza Okayama■Introduction of BEMS (Example for the Telecommunication Systems Division)■ Trends in Production-Related
CO2 Emissions

Energy Monitoring System･Entire Building ･Roof･Transformer ･Workplace●Hitachi, Ltd. and affiliated companies (domestic)(CO2 emissions, kt/year)*1

The Introduction of
Renewable Energies

Calculation of stored heat remaining
Actual heat radiation(CO2 emissions per production unit (%))
Next day heat radiation prediction

3500

100

100

85
81

3000

84
78

85
77

75

2500

2126
2047

60

2141
1979

40
30

1000
500
0

20

921

911

776

10
0

1990

1999

2000

2001

Trends in production-related
CO2 emissions
Hitachi, Ltd.
Hitachi, Ltd. and affiliated companies (domestic)

Conveyance System

Indoor System

・Maximum temperature∆T=10Åé
・Night-time storage
operations
・Number of operable
cooling towers, etc.

・Water pressure setting
for the inverter current
transformation
・Water supply
temperature setting,etc.

・Fresh air intake/air
conditioning
・Settings value schedule・CO2 density, etc.

Calculation of operation periods

Calculation of operation start time

50

1500

1070

Calculation of stored heat required
Heat Source System

80
70

2000

Control Facility
Control Plan Design Terminal (based on mathematical principals)

902010 (Fiscal year)(Target)■Main Energy Conservation
Activities
Category

Activity policy

Air-conditioning
systemInstall energy-efficient equipment,
reduce airflow of air-conditioning,
increase efficiency by regulating unit numbers

Heat-treatment
furnace

Reduce heat loss through improved insulation,
reduce operation loads by regulating
the rotational frequency of blowers

Co-generation
systemIncrease overall efficiency by using a gas
turbine co-generation systeacm

Boiler

Switch to smaller boilers, increase efficiency
by regulating unit numbers,
recover exhaust heat

Compressor

Increase efficiency by regulating
unit numbers, correct exerted pressure

Motor

Switch to high-efficiency motors

Other

Switch to smaller vacuum pumps, installenergy-efficient lighting, install thermal
ice storage systems, etc.

CO2 Emissions
Hitachi, Ltd.
Affiliated companies(domestic)*1: For the conversion unit of CO2 for power, we used the user's end CO2 emission unit
requirements publicized by the Federation of Power Operators. The figures for fiscal
2001 were calculated by interpolating the values for fiscal 1998 and fiscal 2010 with astraight line.

■Outline of Hitachi's CO2 Emissions
Reduction System
Hitachi Group
Site attaining
reduction target

Energy-saving
activities fund(points system)

Site not attaining
reduction target

CO2 emissions
PointsFor further details on data, see P. 35.

19

Waste Reduction
Hitachi’s numerous production activities
produce a variety of waste and reusable
waste products. The operational years offinal disposal sites that treat industrial
waste are limited. With this in mind, and inaccordance with our policy of using
valuable resources in the most efficientmanner possible, we establishedindependent targets for reducing final
disposal volumes, and promote resourcerecycling activities based on these targets.
In a consolidated business step, we
adopted a standard target value for
reducing our final disposal volumes to
70% or less by fiscal 2010 for all HitachiGroup members and affiliates. In fiscal
2001, we had reduced our final disposal
volumes to 64%, but this was largely the
result of active participation in final
disposal reduction activities, and a drop in■Trends in Final Disposal Volume Reduction●Hitachi, Ltd. and affiliated companies (domestic)(kt)

700 100

100
90

89

600
500

(%)

Trend in final disposal
volume reduction

97

79.3

82.0

110.9
58.0

80

80
70

64

400
300 407.0 435.0 444.8
455.0
200

Reduced volume
Recycled volume
Final disposal
volumewaste caused by a decrease in production
volumes.
We not only aim to reduce our final
disposal volumes, but hope to ultimately
a-chieve zero emissions. At Hitachi, zero
emissions is defined as an emissions
volume of less than 1% of the final
disposal rate of the current fiscal year, orless than 5 tons/year, and we areparticipating in activities that will bring us
closer to this target. We not only recycle
the waste we generate during production,
but are working to control the very
generation of waste itself by increasing
production line yields (efficiency) and

Strict Enforcement of Correct
Disposal Methods
The majority of our industrial waste isprocessed by recycling contractors, andas part of our responsibility as a waste■Zero Emissions Production Sites

discharging
company,
wehaveestablished our own guidelines forappropriate waste disposal to ensure thatrecycling contractors meet certain
standards.
In April 2001, we set up an information
database on our intranet, enabling Hitachi
businesses to access information onwaste processing plants and recycling
companies contracted by Hitachi. Using
this system, recycling contractors can besearched for according to region, type, or
process used. Furthermore, the databaseis used as a medium for sharing
information on recycling technology andcorrect disposal methods. While pursuing
activities in waste reduction, ourinformation database also allows us toeffectively manage correct disposal ateach of our production sites with regard
to permit and contract periods forrecycling contractors.

■Intranet Homepage for Hitachi’s Recycling
Contractor Information Database

Hitachi, Ltd.
Mechanical Engineering Research Center andDigital Media Division, Tokai Region70

Hitachi Tokyo Electronics Co., Ltd.

60

Hitachi Electronics Device Sales Co., Ltd.

50
40
30

Hitachi Maxell, Ltd.
Hitachi Via Mechanics, Ltd.

20

100
74.2

0

72.1

66.3

47.3

1998 1999

2000

2001

59.3

51.9

2005

0
2010 (Fiscal(Target)10(Target)year)■Main Reuse Methods
Material

Reuse method

Paper

Material for Recycled paper, RDFs*

Wood

Charcoal, RDFs

Plastics

Recycled for internal processing,
RDFs, material for blast furnaces

SludgeBase material for cement

Oil

Distilled and reused, used as fuel additives

Acid, alkali Distilled and reused, used as neutralizing agents
Slag

Base material for iron, steel, and cement

Raw garbage Compost■Hitachi's Sustainable Recycled Paper Recycling System
Use

Take - back

Returned to
Hitachi forreuse(recycleoriented green
procurement)

Shredding paper and returning it to a pulp
state using onsite wet type AS shredders

Secretdocuments
Scrap
paper
and others

Installed at ten sites throughout the Hitachi Group

Approx. 30 t/month (7.5 million sheets of A4-size copy paper)
Reuse
Daio Paper Corporation

Office use paper, printing
paper, etc. reused as Hitachi
Recycled Paper

Transportation

Waste paper
recycling
companies

Hitachi has introduced wet type AS shredders at ten of its sites. By adding a small amount of water topaper waste, these machines transform paper back into pulp, and because actual shredding of thepaper's fibers is minimized, the resulting pulp material can be easily recycled. Furthermore, as the paper
is converted into pulp, printed information becomes illegible, ensuring information security. The
introduction of these shredders has enabled us to recycle our office use paper and reuse it as our own
brand of recycled paper - Hitachi Recycled Paper, creating a repetitive recycling system.

For further details on data, see P.36.

20

Nature-Friendly Products & Eco-factories

Chemical SubstanceManagement
The
introductionofHitachi'sComprehensive Chemical SubstanceManagement System has enabled HitachiGroup members to search for information
on chemical substances, as well as
perform
real-time
PRTR* 1) datacompilation, via the group network. As
part of our independent standards,
comprehensive management activities
include expanding the number ofsubstances covered (to include highpressure
gases
and
dangerous
substances), and reinforcing the minimum
values set for handling volumes (1/10th orChemical Substance
Emissions Reduction
We manage the emission and transfer
volumes for chemical substances
according to their classification (“abolish,”“manage,” or “reduce”) in our original Risk
Assessment Standards. In order to reducethe burden we place on the environment,

we plan to abolish the discharge ofchemicals classified as substances to beabolished by fiscal 2005. In addition, we
have established reduction targets of
30%, based on fiscal 2000 levels, forsubstances to be reduced. For instance,
we have reduced the volume of chemicals
discharged when handling toluene by 30%
through the introduction of a material
recycling system that uses solvent
recovery equipment, as well as a thermal
recycling system that uses heat storage
type furnaces. In terms of preserving waterand air quality, we have establishedindependent standards for each of our
production sites that are far stricter thanthe values set by laws and regulations,and are carrying out operations inaccordance with these.

As PCBs (polychlorinated biphenyls)
possess insulation and non-flammablecharacteristics, they were once used as
insulating oils in transformers andcondensers. However, their toxic effects
soon became apparent, and the productionof PCBs has been prohibited in Japan
since 1972. Further, in accordance with a
special domestic law that promotes thecorrect processing of polychlorinatedbiphenyl waste, which came into effect inJuly 2001, it became mandatory forcorporations to strengthen their storage
management practices and dispose of all
PCBs over the next 15 years.
At Hitachi, we use the correct storage
management practices for PCBs, including
special locking devices and identification
plates to guard against mishandling, as wellas bulwarks and storage boxes to prevent
leakage in the unlikely event that thesedevices become damaged or corrode. We
are also continuing our investigations into
correct disposal procedures.
In the past, some of the transformers andcondensers we manufactured contained
PCB insulating oils. In response to this, wehave posted alternative storage methods
specific to each affected device on ourInternet Web site.

Using Hitachi’s network to search for information on
chemical substances, and compile and confirm PRTR data.

PCBs(An example of high-pressure condenser storage management)

Storage of Devices
That Use PCBs

■Trends in Chemical Substance Emissions
and Transfer Volumes(kt/year)15

Hitachi, Ltd.
Affiliated companies

100
10
70
10.9
5

9.7
1.0

0.8

0.9
0
1999

2000

2001

2005 (target) (Fiscal year)■Hitachi’s Voluntary Substance Management System (for 1,400 substances)
Highpressure
gases

Globalwarminggases

Hazardous
substances

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

Substances covered
under the PRTR law
Substances subject
to the occupational
health andSubstances
safety law
subject to thechemical
substances
examination law

Substances
subject to air
and water
pollution laws

*1 PRTR: Pollutant Release and Transfer Register

Poisonous
anddeleterious
substances

Substances specified for reduction (270): methylene chloride, lead, etc.
Substances that require management (1030): styrene monomer, ethanolamine, etc.
●PRTR law: “The Law Concerning Reporting, etc. of Releases to the Environment of SpecificChemical Substances and Promoting Improvements in Their Management” (Chemical
Substance Management Law)●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 andRegulation 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 through the Control ofSpecified Substances and other Measures” (The Ozone Layer Protection Law)●Greenhousegases: “Law Concerning the Promotion of the Measures to Cope with Global Warming”
For further details on data, see P. 34. For information regarding alternative storage
methods for devices containing PCBs, refer to the following Web sites:
http//www.hitachi.co.jp/Prod/i-support/pcb/ (only in Japanese)
http//www.hgl.co.jp/pcb/hgepcb00.htm (only in Japanese)21Worldwide Stakeholder Collaboration
As one company, it is limited how much we
can do to create a recycle-oriented sustainable
society. However, we can increase our power tomake a difference by networking with ourcustomers, suppliers, local citizens, and otherstakeholders. We provide information about ourenvironmental activities and listen to the opinions of
our stakeholders. Through this system of mutualcommunication, we are joining forces to increase thescale of our activities, from the individual to theregional and on to the global level.

Worldwide Stakeholder Collaboration

Worldwide Stakeholder Collaboration
Environmental Communication
A stakeholder is defined as any party with an interest in the activities ofan organization. To create a sustainable society, stakeholders and corporations must create a partnership and work together.
Hitachi sets up hands-on display corners at exhibitions where children canhave fun learning about the environment, and hosts environmental town
meetings with stakeholders. Through these types of activities, we areworking to increase communication with our stakeholders.

Information Disclosure

Environmental Advertisement Contest

We are constantly providing more information regarding ourenvironmental activities through the publication of our Environmental Sustainability Report andour Web site (hitachi green web). In
addition to this, our group companies
and production sites have begun
publishing reports concerning theirown individual environmental activities,
and displaying this information on our
Web site.

As a way of conveying information concerning ourenvironmental activities to the public, we invited applications for
artwork that clearly expresses our activities and philosophy as a
Company. We received 139 entries from around the world, andafter they were initially judged, the best 48 entries were displayedat our booth at the Eco Products exhibition in December 2001.
The competition attracted some 2500 votes from the visitors to
the exhibition, and we declared the six winning entries based onthese results.

The hitachi green web homepage

Eco-Products 2001

Award for Excellence

Original Idea AwardAt the Eco-Products 2001 exhibition, we provided a fun learning
experience for children on products and services developed withconside-ration for the environment based on the theme “Look, Touch,Experience,” with a presentation that included experiments and a quiz.

Fumihiro Hayamura (Tokyo)

Original Idea Award

Environmental Sustainability
Advertisement contest ballot corner

Experiment corner

Original Idea Award■Communication with Stakeholders

Suppliers

Yoshitaka Suzuki (Ibaraki Prefecture)

Investors

Kenji Abe (Fukuoka Prefecture)

Financial
institutions

Consumers

Eco-Products Exhibition
Visitors’ Award

Hitachi Group
Yoshinobu Sasamoto (Tokyo)
RegionallyindependentbodiesType of communication

Regional citizens

Eco-Products Exhibition
Visitors’ Award

Employees&
their families

Main methods

Sustainability Report,
1 Environmental information regarding Hitachi Environmental
Internet, exhibitions, etc.
catalogs, Internet,
2 Environmental information on products and services Productexhibitions, etc.
open days, participation in regional
3 Regional and groupwide environmental activities Factory
environmental activities, etc.

Kazuko Souji (Kanagawa Prefecture)

Teruaki Narita (Chiba Prefecture)

For further details on data, see P.36.

23

Environmental Town Meetings
Hitachi commenced its environmental town meetings withstakeholders in FY2001. These meetings are the first step towards
establishing a new communication system with our stakeholders
which is not one-way, but based on a mutual exchange of ideas
in the hope that this will lead to a better understanding of ouractivities. We aim to establish a forum where we can exchange
opinions freely. When we asked our stakeholders for their opinions,

we received frank and honest ideas about what we can do to
make our environmental activities more effective. We are currently
investigating how we can apply these ideas.

Comments on Eco-products“I think that using
your products topublicizetheC o m p a n y ’ senvironmental
activities, and thecreation of a brandname image would
send an importantmessage to the
public.”(Mr. Hayamura)“Information handed out
to children inevitably
ends up in their parents
hands. By making anenvironmental report
aimed at children, you
could
raise
the
awareness of people
who would otherwise not
be interested, and at thesame time improve yourcorporate image.”(Ms. Mizuno)“After entering your
Environmental
Advertising Contest, I
becamereallyinterested in Hitachi’senvironmental
activities. It would beeven more interesting if
some of the ideas inyour
Eco-products
Design Contest actuallymaterialized.”(Mr. Suzuki)“I think it would catch
people’s attention
easier if you included
a list of eco-friendly
points about products
next to their picturesin product catalogues
and on the productinformation pages of
the Company’s Web
site.”(Mr. Abe)“I think recycling isimportant, but I also
think that consumers
want to be able to repair
and continue using theirfavorite products for as
long as possible. So why
don't
you
provideconsumers with more
information about the
product repair system?”(Mr. Sasamoto)“I think it would be agood idea to present
more
negative
information,
thatreads like a story
from ‘problem tosolution’.”(Mr. Okura)Comments On Environmental Information Disclosure and General Topics“I think it is only naturalthat enterprises should
carry out environmental
activities. However, what
I didn’t realize until now,
was that it is the effort
and enthusiasm of
employees
thatisresponsible for the
results.”(Ms. Toda)“I
realized
thatenterprises are listening
to the opinions of citizens
and students, and aretrying to pick up on those
opinions. I also came tounderstand the stance ofbusinesses in relation tothereleaseof
information. I’d like to see
more of the actual
production sites, and talkwith employees.”(Mr. Kijima)(The photographs are from Town Meetings held in February 2002 with applicants in Hitachi’s Environmental Advertisement Contest and with students in March 2002.)

24

Worldwide Stakeholder Collaboration

Opinions on Hitachi's 2001 Environment Report

Third party opinion on Hitachi’s
Environmental Sustainability Report 2002

We received 50 responses to the questionnaire we supplied withthe 2001 Environment Report.The results are as follows:

Appraisal Points
・I could easily see that Hitachi is working on a broad variety ofissues.
・I found the evaluation method GREEN 21 Activities interesting.

Ms. Kimie Tsunoda

・The report was concise and easy to understand.

Member, Organizing Committee

Main Requests

Valdez Society*

・The report would be easier to understand if all of the data waspublished in a single document.

Since publishing the Environmental Report 2001, Hitachi
has taken up the challenge of sustainability reporting basedon its new Environmental Vision, and I believe they aremaking real progress in this area. I especially felt Hitachi’s
spirit for taking on challenges in the description of theCompany’s environmental vision in EcoValue Plan 2010, thepositive note in the foreword by Hitachi’s executive-level management, and the articles on environmental town meetings.
On the other hand, many items start with generalexplanations and finish with targets from previous fiscal years,
making it unclear as to what Hitachi’s “continual
improvements” actually were. Although the actual
improvement results for environmental impact were
presented as having increased in Hitachi’s self
assessment with the previous year, these results need to
be further expanded upon to make the Company’s
improvement efforts easier to understand.
While information on environmental impact was presented
as separate topics (CO2 emission levels, waste, and chemical
substances), there is still room for improvement in the
breakdown of information for raw material expenditure andoverseas data. Furthermore, although data was included in
the main body of the report, the reason for including somedata in the main report and some in a separate data summaryneeds to be clarified.
I have no doubt that the gap between printed and electronic media will increase in the future. However, I hope that
Hitachi will take the needs of its stakeholders and their levelsof IT literacy into account when disclosing environmental

・ Sometimes there are too many words on each page making
the report hard to read.
・Future policies and the direction of Hitachi’s activities need to
be stated more clearly.
・The pages on “Exchanges with Society” need improvement.
Points Reflected in This Report
・ Added information to the main report about major areas of
improvement, such as the accomplishment of action plans.
・ Improved readability by adjusting the size of the charactersand page layout.
・Clarified the future direction of our environmental activities byadopting an Environmental Vision.

・ Expanded upon activities carried out in collaboration withstakeholders, and disclosed information about these
activities.
Ms. Kimie Tsunoda, who works in the field of corporate
environmental information disclosure, for the second consecutive
year reviewed our environmental report. She kindly noted her
opinions about the report, while making suggestions along the way.
Based on such comments, we will work towards improving our
information disclosure through media such as future environmental
preservation activities and environmental reports.

* Valdez Society is a non-govermental organization composed of civic conscious consumers,
corporate employees, scholars and journalists. The main target is to introduce the spirit of the
CERES principles and to make Japanese corporations disclose more environmental information
through its research groups and seminars.

■Survey Results for Opinions on Hitachi’s 2001 Environment Report
No response 3
Average
3 responses●Impression about the report:
Very good
3 responses

Good
33 responses

NPO-related position
3 responses

Research or educational establishment
24 responses

Customer
2 responses

Stockholder/investor
2 responses●Impressionable topic:
Environmental
management
18 responses

Not very good
2 responses
Government oradministrative position
1 response●Perspective of reader:(a total of 50 responses, period of response: June 1, 2001 to March 31, 2002)

Corporate environmental
4 responses department

Employee or family
1 response
Other
6 responses

Regional citizen
1 response

Environmental management
systems
12 responses

Research & development
4 responses

Products & services
31 responses

Production
activities
21 responses

Overseas activities
3 responses
Data collection
19 responses

Provision of environmental preservation systems
History
15 responses
3 responses
Exchange with society
Other
9 responses
1 response●Found out about this report through:Newspaper
4 responses

Other (school lectures, etc.)
30 responses

No response
6

Exhibition
Hitachi’s Web site
2 responses
6 responses
Magazine
2 responses

Supplier 3 responses

25Third Party Comments on the Environmental Vision and EcoValue Plan 2010
To assist in formally cementing our Environmental Vision and EcoValue Plan 2010, we asked
the 2001 Blue Planet Prize recipient, Dr. Norman Myers, to give us his opinions from theperspective of a third party.

■HITACHI'S ENVIRONMENTAL VISION AND ECOVALUE PLAN 2010

Consultant in Environment and Development
Professor of ecological systems and resource economics
at the University of California

Dr.Norman Myers

Providing consultancy services to a variety of research organizations anddevelopment agencies such as the U.S. National Academy of Sciences,
Soviet Academy of Sciences, World Resources Institute, the White House,
U.S. Departments of State, Defence and Energy, World Bank, United
Nations agencies, OECD, NASA, European Commission, Shell and
McKinsey, and the Rockefeller and Ford Foundations.
Dr. N. Myers is well known as an authority on the Gaia Theory*. He hasserved as a visiting professor to several universities including Harvard
University and the University of Oxford, and is the recipient of many prizes,
including the UNEP Environment Prize and the 2001 Blue Planet Prize.

Comments:
I think the fundamental concepts
behind the Hitachi Group’s Environmental
Vision and EcoValue Plan 2010 are fine,insofar as they set the direction for theentire enterprise in its journey toward asustainable society. Hitachi is certainly to
be congratulated for even venturing toprobe in this direction. However, there areseveral comments and suggestions I
would like to offer regarding both theEnvironmental Vision and EcoValue Plan

2010.
●Environmental Vision:•
Concrete goals regarding theimprovement of resource productivity
through the implementation of ecoproducts as described in “Naturefriendly Products and Eco-factories”
are not clear.
•
Concrete goals for reducing
environmental
impactthroughsustainable business models as
described in Sustainable Business
Models” are not clear.

●EcoValue Plan 2010:• More concrete goals concerning theGaia Theory: The Gaia Theory
considers the Earth as a whole,possessing self-adjusting and selfregenerating mechanisms to maintainan ideal condition for life processes.

development of eco-products by 2010
should be included in “Nature-friendly
Products.”• Activities for improving product ecoefficiency as described in “Naturefriendly Products” should be
implemented forthwith.
• Clearer focus on the indicator of zero
emissions in “Eco-factories” issuggested to give Hitachi’s Roadmap
more substance.

I commend the conceptual analyses
andsynthesis
in
Hitachi's
Environmental Vision. However, insome places it sounds a little academic
and lacks concreteness. Therefore, I
suggest that Hitachi constantly review■Hitachi's response and future approach:
We will search for ways to implement each of the above items into EcoValue
Plan 2010. Our Environmental Vision (Sustainability Compass) is a broadconcept that sets the overall direction of our environmental management
structure, whereas concrete items are addressed more clearly in EcoValue
Plan 2010 (p.6-9)

26

Worldwide Stakeholder Collaboration

Employee Relations
We have implemented Hitachi Value; a set of standards outlining a code of behavior and list of shared values for all of ouremployees. While endeavoring to improve the environmental awareness of our employees, we have introduced a variety of
personnel systems in the hope of creating a vibrant workplace that will inspire our diversely talented employees to continually
set themselves challenges. Further, we place the highest priority on maintaining the health and safety of our employees, andare making efforts not just to maintain, but also to further improve our already high safety and sanitation levels.

Developing a Shared Sense
of Values through Hitachi ValueIn November 1999, in order to realize ourbasic stance on management as stated in the
Hitachi Management Vision, we drew up the
Hitachi Value standards, detailing the values
and behavioral conduct we would like to instillin all of our employees. By releasing thesestandards groupwide, we hope to improve thegeneral environmental awareness level of ouremployees.
Hitachi Value documents the conduct we
expect from our employees, in particular, thetype of behavior and attitudes we expect fromour leaders. The standard outlines ten
separate items specifically related to
employees, including “customer satisfaction,”“reliability,” “speed,” and “challenges andreforms,” and details the conduct required toachieve positive results in each of these areas.
Since fiscal 2000, we have been introducing
personnel rating systems to evaluate whether
the code of conduct in Hitachi Value is being
carried out in the workplace, an activity initiallydirected at managerial staff. While promoting
improved environmental awareness in our
employees, we aim to establish a system
where the concepts of merit and performance

form the basis of our employee management
practices.

Systems That Promote
Employee Satisfaction
We value the different abilities and ideas of
our workers, and in support of this, have set
up a variety of internal public appeal
systems in which participation is completely
voluntary. These include our FF Plan
(Gender Free & Family Friendly Plan) which
supports the activities of women andcompatibility between work and family life,and career plan selection system for older
employees. These systems were devisedwith the ultimate aim of creating new andimportant business activities at each of our
production departments.

Equal Opportunity Employment
for the Handicapped
We have developed a normalization policy underwhich we are actively increasing the number of
positions available to handicapped persons aspart of our employment promotion activities. Asof March 2002, our employment of handicapped persons satisfies the minimum statutory
employment rate requirements, and we plan totargets

targets

Evaluation ofindividual results

results

Introduction of Occupational
Health and Safety
Management System

Hitachi Industrial
Insurance
Research Committee

Business groups and production sites

Company intranet
Company regulations
and standards
Company circulars
and notification
Company
educational text
Actual examples of disasters
and countermeasures

Production site
executive management

MSDS data
Health support system
Health and safety knowledge

Industrial doctor
fromhealthcare
center

Health and
Safety Office

Statistical data
Registerof information

While respecting human life and acting in accordance with the law, we are strengthening
Basic Policy ourplatform of “continued growth into the 21st Century as a corporation overflowing with

Regional
healthcare
centerRegisterof information■Basic Policy for Occupational Health and Safety

Head office

Company-wide Healthand Safety ResearchPresentation Committee

Applicationof information

Plan

Individual Achievement

Registerof information

Organizational

We make good use of the knowledge
regarding health and safety issues that wehave acquired over many years of promoting
accident-prevention activities, including knowhow in the areas of health and safety
management, education, and equipment, as
well as how to create safe work environments,
and pass this on for the benefit of others. In
addition, we are supporting the introduction ofan Occupational Health and Safety
Management System that provides a highlevel of health and safety standards that canbe maintained and improved upon under thesupervision of any of our employees.
Furthermore, to ensure that our employees arealways bright and fresh and perform to thebest of their ability, we are taking positive
steps to preserve their health throughcounseling, specialist support, educational
activities, and a support page on the Internet,
allowing employees to contact staff trained inindustrial health issues.

Sponsor/administrator

Business

Evaluation of Hitachi
Value standards

Reflected in Hitachi's employee
management systems

Management Vision

Hitachi Value

Occupational Health and Safety■Occupational Health and Safety Action System■A New Evaluation System and Business Planfor Hitachi's Management Vision
Business
performancefurther promote employment in this area. The
establishment in October 1999 of Hitachi You
and I, a special subsidiary that only employs
mentally disabled persons, was part of this plan.

Workplacemanagement staff

Employees

vitality” through health and safety activities based on the following universal standard evaluations.
1. Construct a systematic safety management system, and urge managers to set examples for others.
2. Make genuine safety improvements to equipment and production processes.
3. Enhance safety awareness, and establish a workplace with good communication
by improving safety education levels.
4. Ensure the physical and mental health of our employees, and create 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).

Intranet homepage for Hitachi's Health Consultation System
For further details on data, see P.37.

27

Social Contribution Activities
In order to become an energetic corporation that can continue to growinto the 21st Century, it is essential that Hitachi share its values withpeople throughout the regions of the world, and build strong ties of trust
through continued social contribution activities that promote theCompany's principles and policies. Under the motto "Inspire the Next," weintroduced a new set of principles and policies on a group-wide scale,along with the slogan "Growing People, Our Link to the Future" and a new
symbol to inspire employees to work together as they engage in social
contribution activities. Our active participation in social contribution
activities is centripetal to these renewed principles and policies.

A Group-Wide Common Philosophy
and Policy of Social Contribution Activities

Basic Philosophy of Hitachi’s Social
Contribution Activities

Philosophy
The Hitachi Group strives to demonstrate its corporate citizenship in
response to social needs and expectations, while endeavoring to enrich
the quality of life and realize a better society.

PolicyThe Hitachi Group promotes various social contribution activities tobuild a vibrant society based on fostering leadership to implement
reformation for the next era. This is achieved by making optimal use of
our knowledge and information technology in three specific areas,
namely, education, the environment, and social welfare.

All of the companies belonging to the Hitachi Groupand six of its foundations have come together to forma single corporate entity. As this corporation works tofulfill its social responsibilities, it is adopting the social
contribution activities each of its individualorganizations previously participated in. However,these are not viewed as mere charity activities, but ascorporate activities that are important in helping to
make Hitachi into an environmental brand value.
Together, all of the members of the Hitachi Group arecarrying out social contribution activities towards thebuilding of a better society.
Hitachi employees are striving for “Improvement ofeach employee” by taking part in social contribution
activities, such as volunteer activities. These types ofactivities not only help to build a better society, but
produce corporate vitality on a large scale.

■Basic Philosophy of Hitachi’s Social Contribution Activities
Hitachi Group social
contribution activities

Hitachi Group
employees● Volunteer activities, etc.

Building a better society

Increasing
the brand value

Clients

28

Implementationof business activities
with increased enthusiasm
and flexible ideas

Local society

Stockholders

Foundations● Positive activities as foundationsof the Hitachi Group●Active dissemination of information

Improvementof each employee

Customers● Actively implement social contributions
to enhance our brand value●Supports its employees' volunteer activities
Each HitachiGroup company ●Social contributions to carry out social
responsibilities such as providing aid to
disaster victims

Stakeholders

Worldwide Stakeholder Collaboration

Volunteer Activity Support
Hitachi supports the creation of a workplaceenvironment, where employees are free toparticipate in volunteer activities as often as
they like. So that employees can easily learn
about their work environment, we conduct avariety of in-house training and educational
programs, as well as disclose information toteach the importance of participating insocial contribution activities.
In order to support the volunteer activities
carried out by each of our employees, wehave dedicated a page on our intranet tooutlining the aims of each of these social
contribution activities, providing a forum
where employees can exchange ideas andinformation about volunteer activities. We
have also set up a “special annual paid
leave system” to encourage our employees
to participate in these types of activities.

Activity Examples●Green Award for Social Contribution
We established the Green Award for Social
Contribution to support and promote
activities that contribute to society and theglobal environment, and recognize worthy
contributions in these areas.
The fiscal 2000 Award for Excellence wasawarded to Hitachi Industrial Equipment
Systems Co., Ltd. Nakajo Division for its

continued exchange in a wide variety ofregional activities, including afforestation
activities carried out by employees,
exhibitions detailing the Company’senvironmental activities, participation in awater quality survey sponsored by theprefecture, and the Company’s acceptanceas a research fellow of the Japan-China
Friendship Environmental Conservation
Center.
Further, the Chubu branch of Hitachi Systems& Services, Ltd. received a special prize for its
efforts towards creating a recycle-oriented
society through recycling activities. The
Chubu branch donates disused officecomputers to NPOs as part of its activities
aimed at recycling reusable resources.
●Mt Fuji Foothills Restoration Support
With the aim of re-vegetating the forest
regions on the foothills of Mt. Fuji that
suffered great damage caused by typhoon
No. 17 in 1996, the employees and theirfamilies of Hitachi Capital have been
actively
participating
with
local
governments, businesses, and citizens to
restore the natural forests. These activities
are carried out under the “Manabi no Mori”
project, which began in 1998, and in April offiscal 2001, twenty members of the Hitachi
Capital Group participated in project
activities.

●Victims of Terrorism in America
In support of local restoration efforts andvictim relief activities after the multiple
terrorist attacks took place in America on
September 11, 2001, the Hitachi Group
donated 1 million dollars to the U.S. Red
Cross. In addition, we contributed
equipment in the form of DNA sequencers
to aid in the identification of victims' bodies,
as well as demolishing hammers and metal
cutting devices.
Further, our employees, particularly thoseaffiliated with our American companies,
donated blood and made personal
contributions, while some even participatedin victim relief volunteer activities.
The Hitachi Foundation located in
Washington D.C. made a special donationof 5 million dollars to the American Red
Cross Fund.
●Foundation Activities
We have established a total of six domestic
and international foundations, which
conduct social contribution activities. The
Hitachi Environment Foundation conducts
surveys and research on environmental
issues, while carrying out business
operations that expand and encourage
environmental preservation activities.

The Hitachi Group’s Six Foundations
The Odaira Memorial Hitachi Education
Foundation
The Kurata Memorial Hitachi Scienceand Technology Foundation
The Hitachi Scholarship Foundation
The Hitachi Environment Foundation
The Hitachi Mirai Foundation
The Hitachi Foundation

Intranet homepage for supporting
volunteer activities

Hitachi Industrial Equipment Systems Co., Ltd.
Participating in their annual water quality survey
activities together with elementary school children.

Hitachi Systems & Services, Ltd.
Computers that were donated to NPOs

Conducting nature restoration activities
on the foothills of Mt. Fuji.

The Hitachi Environment Foundation"Environmental Research"Journal.

For further information about our social contribution activities, visit the following Web site:
http://global hitachi.com/Int-e/skk/

29

Sustainable Business Models
In the future, we intend not only to create new products
and services for people, but also to create new
businesses that will benefit the environment. We are
currently focusing our efforts on creating “sustainablebusiness models” that will serve as the basis forcreating a recycle-oriented society. While looking to the
future, we are developing business practices that help
preserve the environment, including environmental
research and environmental support services forcustomers based on this research.

Sustainable Business Models

Sustainable Business Models
Constructing Business Models – Product Take-back and Recycling
Based on the principle of “Extended Producer Responsibility,” Hitachi isconstructing a recycling system that effectively utilizes the resources
recovered from used products.

Household Recycling

PC Recycling
Under revisions made to the Effective Useof Resources Promotion Law in April
2001, computers were classified as“products for recycling.” This made it
mandatory for manufacturers andimporters to recover and recycle allcomputers employed throughout theirbusiness operations once they are nolonger needed. Until this time, ourmanufacturers and importers had beenreferring customers to industrial waste
treatment services in response to theirrequests for disposal. However, in■Number of Household Electrical Appliances Recycled
and Product Recycling Ratio (FY2001)■PC Take-back Results (FY2001)

Washing
Air
Televisions Refrigerators
conditioners
machines

Category

Number ofunits 172,564
appliances recycled
Recycling rate79（％）

accordance with this new law, and inorder to promote the smoother recoveryof resources, we have joined hands withIBM Japan, Ltd. to build a new national
recovery system. We have also been
approved as a designated waste
processor for a wide range of industrial
waste materials. This has enabled us to
improve our services, in particular the
publication and management of manifests(industrial waste management forms) onbehalf of our customers. Furthermore, wehave established an Internet service forhandling
everything
from
waste
management price inquiries andapplications, to the confirmation ofrecycling processes.

environment throughout their life cycle,
and increasing the amount of reusable
materials used to manufacture future
products.

In response to the electric Home Appliance
Recycling Law, Hitachi Home & Life
Solutions, Inc. (established in April 2002,
after a split and merger within the
Company’s Home Appliance Group)
established a new subsidiary, Kanto Eco
Recycle Co., Ltd. in May 1999, to handle
recycling operations for four maincategories of used household electricalappliances.
The new plant is located at Hitachi Home
& Life Solution’s Tochigi site, and is the
only recycle plant in Japan to be built
within a production facility. By feedingback information obtained from theproduction facility to product designers,
this new company is helping to reducethe burden products place on the

330,298

360,827

376,532

78

61

57

Category

Desktop
computers

CRT
displays

18,673

15,330

Number ofcomputers
recovered (units)

Notebook Liquid crystal
computers monitors
3,734

184

Take-back results for FY2001 are from before the introduction of wide area certification■Household Electrical Appliance Recycling(at a recycle-oriented plant built within a production site)■PC Recycling System

Under Hitachi Home & Life Solutions Inc. management
Hitachi Management
CenterKantou Eco Recycle Co., Ltd.
Web application
Collectionof goods

Sales
outletHitachi Recycling
HotlineHitachimanagement

Distributor
ProperdisposalCustomerSales
outletHitachi Home & Life
Solutions Inc.

Component
manufacturers

Services provided by
Hitachi's affiliatecompanies(PC andnon-PC related)

Request toprocess computers
Reception of
information

Collection Center(15 centers throughout Japan){Jointly used by IBM Japan, Ltd.}

HitachiRe-use Center

Processors

Business customers

Recycling Plant

Internet

Flow of goods
Flow of information

PC only
Goods other thanPC
Transfer
Intermediate processingof goods/final disposal

For more information about household electrical appliance recycling, visit the following Web site:
http://kadenfan.hitachi.co.jp/kankyo/recycle/index.html (only in Japanese)
For more information about computer recycling, visit the following Web site:
http://www.hitachi.co.jp/Prod/comp/OSD/pc/flora/environment/recycle.htm (only in Japanese)31Offering Total Environmental Solutions
Hitachi utilizes a wide range of tools, such as results and technologies
accumulated through activities in a variety of environment-related areas,
to provide customer support for environmental management, especially inregard to waste, energy, air, water solutions and services.

A Project Promoting
Environmental Symbiosis
With the assistance received from the
New Energy and Industrial Technology
Development Organization (NEDO), weare using an old mining site in the City ofUtashinai in Hokkaido as the base for our
regional
development
promotion
activities. The project centers around theestablishment of a recycle-based power
plant that uses waste to create electricity
and heat. In general, the plant uses
shredder dust (the byproduct created
when waste vehicles and household
electrical appliances are crushed and thereusable waste removed) as fuel, andgenerates electricity and heat by melting
industrial waste and converting it into aharmless material.
We sell the electricity generated from thisprocess to a power company, andprovide new businesses with the heat
energy collected. In this way, we arehelping to build an industrial communitythat can coexist in harmony with theenvironment, combining environmental

business with regional development
activities.
In July 1999, the City of Utashinai and the
Hitachi Group established “Eco Valley
Utashinai, Ltd.,” to oversee this new
venture. With donations received from theJapan Regional Development Corporation,
the Hokkaido Mining Regional Development Center and the city of Utashinai,
the plant which is presently underconstruction is expected to be producing
recycled power by October 2002.

where the energy saving effects of the
new equipment are shared between the
ESCO and cooperating company.
At Hitachi, in addition to installing energysaving equipment at the production sitesof our business partners, we provide acomplete range of services, including
guaranteed energy savings and postinstallation maintenance services. At the
Sapporo Beer Company’s Hokkaido
plant, we introduced a highly efficient gas
cogeneration system using city gas,
resulting in annual energy savings of
25,052 giga joules. This is equivalent toapproximately 7% of the total energy
currently used at the Hokkaido plant.
At the Sendai plant, we installed aninverter control device into an existingbrine refrigerating machine used in the
manufacture of beer, producing annual
energy savings (electricity only) of 3,197
giga joules.
Both of these improvements wereintroduced at the end of September 2001.

Implementing Shared Energy
Savings through ESCOs
The adoption of an energy service
company initiative(hereafter ESCO) at the
Sapporo Beer Company’s Hokkaido andSendai plants was the first time project
financing had been used for this purpose
in Japan.
The ESCO introduced energy-saving
equipment at no cost to the customer,
adopting a shared energy savings model■A Project Promoting Environmental Symbiosis■ESCOs（Energy Service Companies）

Environmental businessNew business

Establishment of a recycle-based power plantat an old mining site
Complete combustion

Establishment of a business provided withenergy by a recycle-based power plant●A business that guarantees energy savings over the long term
through improvements in facilities and equipment
Cooperating company
BeforeAfterprofit over a 10-year
improvements
improvements
contract period
Customer profit

Clean gas
Exhaustgas

Gas

Shredder dust

Waste
energycollection
boilerSteam

Exhaust gas
treatment system(dioxin reduction)

Cultivation ofCultivation of
flowers and plants vegetables

Power
sales

Energycosts

Improvements
in facilities andequipment

Energycosts

Facilities andequipment investment
ESCO (Hitachi)
Rehabilitation Construction materials(interlocking, etc.)
centerConsultationand diagnosis

Proposedenergy savings

Project initiationand financing

SystemMaintenanceestablishment management

Electricity
Heat
Ash melting furnace

Steam turbine(electric power generation)
Slag

32

The recycle-based power plant
For business schedule details, visit the following sites.
Hitachi Group environmental news (information on the products and services offeredby 30 of the Group's companies): http://www.hitachi.co.jp/Div/kankyo/
Energy solutions: http://www.hitachi.co.jp/ESCO/index.html
Environmental information solutions: http://www.hitachi.co.jp/Prod/siji/kankyo/(Homepages only in Japanese)

Sapporo Breweries, Ltd.
Hokkaido Plant, gas
co-generation facility

Sapporo Breweries, Ltd.
Sendai Plant, refrigeration
inverter facility

Sustainable Business Models

New Technology Development for Environmental Solutions
While actively engaging in research and development that contributes toenvironmental preservation through products and services, the HitachiGroup is studying how it can best develop its various environmental
systems.

Environmental
Management Systemmanagement and know-how, and “EcoAssist,”
an environmental management system.

We collect data relating to theenvironmental activities carried out by eachof our departments, and then calculate thecost of these activities per department.
This is a complicated and enormous task,
the results of which are analyzed from avariety of angles, and offered on a timely
basis to help management in decisionmaking activities, aiming to achieve theultimate environmental management
system. We proposed the most suitable
management system based on an analysis
of our present state of affairs, offering an“environmental solution” for phasing inenvironmental management.
We offer a complete series of management
software packages that cover a variety of
topics, including green procurement, LCA
support, recyclability assessment, environmental
specifications creation support, environmental
accounting support, and environmental
information collection. Two examples inthis series are “Chemilution,” a compact
Web-based system for chemical substanceDirect Methanol Fuel Cells
As a countermeasure to global warming
and resource depletion, we promote thedevelopment of clean fuels as analternative for conventional fossil fuels. As
part of our research and development into
compact fuel cells, we have conducted
tests on direct methanol fuel cells(DMFCs) to determine their suitability as
an alternative “clean” power source formobile devices, such as notebook
computers and portable information
terminals. As DMFCs can supply acontinual source of power generated froma combination of methanol, water, andoxygen, they make an excellent powersource that does not need to berecharged. Also, since the process usedby these fuel cells to generate power isextremely simple, they can be made morecompact, lightweight, and affordable thanconventional fuel cells.

■Environmental Management System
Overview
Environmental
Division

ISO14000-related activities

Environmental
accounting

e-

H2O

CO2

e- H + e-

Research and
Design departments

Materials andFinance departments

Production
Department

General Affairs
Department

Design For
Environment supportGreen
procurement

Environmental
measure management

Occupational health andsafety management

Ease of disassembly/recyclability assessment

Environmental
accounting

Various simulation
systems

Environment-related laws
and regulations search

CH3OH

Information
disclosure

O2

Methanolsolution
Fuel pole

Component history
management

Internet

Exhaustgases(including
H2O)

CO2

IntranetGreen
procurement■Photograph and Specifications
for a Low-power Application
Processor Chip

Environmental
effect assessment

Business process

Affiliated companies
and suppliers＊Java and all Java trademarks and logos aretrademarks or registered trademarks of Sun
Microsystems, Inc.

■Structure of a Methanol
Fuel Cell

Risk communication

Information
disclosure

Chemical storage
management

With improvements in data transfer
efficiency for next-generation cell phones,
multimedia processing, such as video clip
and music transfer, has become
essential. In order to perform these typesof operations, we have developed lowpower application processor technologythat enables media transfer at highspeedswith
reducedpower
consumption. Because this technology iscompatible with the encoding software
MPEG-4, which is required when sending
video mail, we can confirm operation at
low power levels similar to those for 70
MHz and 140 mW specialist hardware.
This technology not only supports MPEG4, but can be used to play back music or
perform Java* (TM) processing, enablinga variety of multimedia functions requiredof next-generation cell phones at low costand reduced power consumption.

Comprehensive
chemical management

Integrated environmental
database(Integration of information
and unified management)

Green procurement
Environment-related laws
and regulations search

Low-power Application Processor
Technology for Next-generation
Cell Phones

Air
Air pole
H+ type ion
exchange membrane

General consumers/investors

Processor
0.18umFrequency
133mHzPower during operation
170mW
Power during standby 10uA or less
Chip size
43mm2
Cache size
32KB
Internal RAM
144KB

33

Data Summary

Eco-mind & Management
GREEN 21 Activities■Average Points by Category
No.

（Unit: points）

Hitachi, Ltd. and affiliated companies(domestic)

Affiliated companies(overseas)*

FY 1998
57
61
42
31
45
55
57
51
399

FY 2000
63
57
49
27
45
47
65
54
407

Hitachi, Ltd.

Category

FY 1998 FY 1999
1 Environmental Policies
70
77
2 Compliance with Environmental Regulations
73
80
58
65
3 Environmental Accounting
44
51
4 Environmental Consideration of Products
60
57
5 Energy Saving
67
73
6 Recycling
63
66
7 Chemical Substances Management
66
70
8 Information Disclosure & Education
498
542
Total Average Points
14.6
Base year
Improvement Rate（％）

FY 2000
81
84
69
56
65
77
72
77
581
27.5

FY 2001
84
83
71
63
66
79
73
81
600
33.8

Base year

Environmental Management System■ISO14001 Certification Status
Hitachi, Ltd. and affiliatedcompanies (domestic)

No. ofCertified
Sites

Affiliated companies(overseas)

Production
sites

Non-production
sites

Production
sites

162

31

23

Europe 2

Total

FY 1999
67
68
49
37
50
61
63
60
455
14.0

FY 2000
72
72
57
43
54
65
68
67
498
24.7

FY 2001
89
73
68
52
49
66
72
79
548
37.2

Japan
Hokkaido/Tohoku regions 14
Kanto/Koshinetsu regions 124
Hokuriku/Chubu regions 19
Kansai Region 15
Chugoku/Shikoku regions 21
Total 193

FY 2001
72
71
51
31
47
52
69
59
452
11.5
Base year

America 4

Asia 17

216

Environmental Accounting■Cost（Unit: 100 million yen）

Costs
Item
FY 1999

Hitachi, Ltd.
FY 2000 FY 2001

Hitachi, Ltd. and affiliated companies

FY 2000

FY 2001

Overview

Expenses

1.Business area costs

97.7

107.2

111.8

359.6

382.1

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

2.Up stream/down stream costs

18.0

14.0

13.2

35.8

32.7

3.Management activity costs

26.0

28.6

36.3

83.5

110.9

4.Research & development costs

111.9

116.5

130.0

300.3

343.6

5.Social activity costs

10.6

12.4

1.3

32.3

5.3

Green procurement expenses, recovery and recyclingof products and packaging, recycling expenses
Labor costs of environmental management,
implementation and maintenance of an environmental management system
R&D for the reduction of environmental loads caused by products
and production processes, product design expenses
Environmental improvements such as afforestation and beautification,
PR and publicity expenses

6.Environmental damage costs

3.3

3.0

2.8

9.3

8.2

Environment-related measures, contributions and levies

267.0

281.7

295.4

820.8

882.8

67.6

59.0

35.8

212.5

180.1

Total expenditure
Total investment

Investment in energy-saving equipment
and equipment that directly reduces environmental loads■Effect（Units: 100 million yen）

Econoomic EffectExpenses
Hitachi, Ltd.

Item
FY 1999

FY 2000

Hitachi, Ltd. and affiliated companies
FY 2001

FY 2000

Overview

FY 2001

Net income effect

11.0

9.4

7.6

55.8

50.9

Reduced expenses effect

30.6

32.2

33.6

120.3

135.6

Total

41.6

41.6

41.2

176.1

186.5

Profit on sales of recycled waste
Reduction in material costs due to resource saving, reduction in waste treatment
costs due to reduced waste, reduction in power expenses due to energy savings

Physical EffectExpenses
Item

Hitachi, Ltd.
FY 1999

FY 2000

Hitachi, Ltd. and affiliated companies
FY 2001

FY 2000

Overview

FY 2001

94 million kWh
84 million kWh
97 million kWh
169 million kWh
331 million kWh
1. Reduction in the amount ofenergy used during production 27,000 households 24,000 households 28,000 households 49,000 households 95,000 households Decrease in energy expenses due to installation of energy-saving equipment
792t
1,212t1,905t6,051t7,369t2. Reduction in the final amount
Decrease in final waste output volumes due to separation and recycling activities
3,000 households 4,000 households 6,000 households 20,000 households 25,000 households
of waste disposal
772 million kWh
303 million kWh
844 million kWh
522 million kWh
3. Reduction in the amount of energy 165 million kWh
48,000 households 223,000 households 87,000 households 243,000 households 159,000 households Decrease in energy requirements of Hitachi products
consumed during product usage

Note 1: Depreciation on capital investment and the resulting effect are calculated using a five-year flat rate formula.
Note 2: Regarding the classification of items and economic effect•Net income effect: Effects for which there is real income, including the sale of valuables and environmental technology patent income.
•Expense reduction effect: Reduction in electricity fees and waste treatment expenses related to environmental impact reduction activities.

34■Efficiency of Environmental Impact Reduction (Eco-efficiency)■Ratio of Eco-products to Total Sales●Hitachi, Ltd. and affiliated companies●Hitachi, Ltd. and affiliated companies
2001

2000

Reduction in energy used during production 0.41 million kWh/billions of yen 0.66 million kWh/billions of yen
Reduction in amount of waste for final disposal

Eco-products

2000

2001

3.0％

22.0％

17.5 t/billions of yen

11.7 t/billions of yen

Note: Eco-efficiency is the amount of reduction in expenses per environmental impact item.

Nature-friendly Products & Eco-factories
Eco-products■Trends in the Use of Lead（％）

■Commission Volumes for Containers and Packaging* (Hitachi, Ltd.)
（％）

100

100
80

75.2

60
40

0

80
60

46.4
26.9

20

24.8

19.5

1997

2000

21.9
13.6
8.3
2001

78

77

19.4

16.4
14.1

18.9

47.3

44.9

59
15.4
12.2

0

2003 （FY）

1998

1999

12.9

2000
■Paper production■Paper use

2001 （FY）■Plastic production■Plastic use○Low-emission vehicles*2 as an expression of the total number of company-owned vehicles*3●Hitachi, Ltd. and affiliated Companies (domestic)
Total number of vehicles: 10,208●Hitachi, Ltd. and affiliated Companies (domestic)

Gasoline vehicles
49.2%

Total transportation volume: 2,227,824,000 t-km/year
Transportation-related CO2 emissions: 332,000 t-CO2/year

Air
Product transportation method as an expression of the total transportation volume 1.6%
Rail
7.4%

30.9

* The volume commissioned basedon the Containers and Packaging
Recycling Law.

We calculated and tabulated the transportation impact required to deliver products fromproduction sites to the customer for each transportation method (road, rail, sea, and air).

Road (truck)
64.9%

52.2

20

■Increased Transportation Efficiency

Diesel vehicles
32.5%

Low-emission
vehicles18.3%●Affiliated Companies (overseas) *1

Sea
26.1%

Total number of vehicles: 478●Affiliated Companies (overseas)*1

Dieselvehicles17.4%

Gasoline vehicles
41.4%

Total transportation volume: 86,260,000 t-km/year
Transportation-related CO2 emissions: 11,700 t-CO2/year

Air
Product transportation method as an expression of the total transportation volume 3.2%
Rail
7.0%

2.5

25.9

40

（Target year）

Road (truck)
38.6%

100

100

■Affiliated companies (domestic)■Hitachi, Ltd.

Low-emission vehicles
41.2%*1: Data is for 17 selected affiliated companies (overseas).
*2: Low-emission vehicles include electric, methanol hybrid, CNG, LPG,
fuel cell, and fuel-efficient vehicles (excluding overseas data).
*3: Data is for company-owned vehicles, including forklifts used
for loading goods.

Sea
51.2%

■Prevention of Global Warming●Volume and Composition of Global Warming Gas Emissions
Hitachi, Ltd. and affiliated companies (domestic)
PFC
210,000 t
6%SF6580,000 t
Global16%

HFC
60,000 t
2%

warming
gas emissions:
3,610,000
CO2
GWP*t
2,760,000 t
76%*GWP: Global Warming Potential (CO2 conversion)●New Energies Volumes
Hitachi, Ltd. and affiliated companies (domestic) Wind power Solar power
0.2%
11.3％

4.7％

Heat energy:
11,029.9 kL(crude oilconversion)

Electricity:
53,466.1
MWh

38.5％

0.1%

Gas co-generation systems
RDFs*
Solar power
Wind power
Other

50.2％
95.0％

Heat energy as an expressionof the total energy volume: 3%

Electricity as an expressionof the total energy volume: 1%*RDFs: Refuse-Derived Fuels

35

Waste Reduction

Flowchart for the Treatment of Waste and Reusable Waste Products■Trend in the Amount of Industrial（fiscal 2001 performance results）【Unit: kt】
Waste Generated (Hitachi, Ltd.) （%）（kt）200 100

100

32.4

80

●Hitachi, Ltd. 108

60●Hitachi, Ltd. and affiliatedcompanies (domestic) 561

150

14.8 13.5 19.3 15.4

7.5

108.4

6.0

100

48

113.0 105.8

107.0

50

113.3

112.5

26

Volume Generated

Final Disposal

Disposal without
treatment

40●Hitachi, Ltd. 1

99.0

3.1 20
19
16
15
13
31.0
10
10
4.7
14.8 8.0 5.9 5.1 4.1
3.0
001991 1996 1997 1998 1999 2000 2001 2005 2010
（Fiscal year）

Primary recycling
or reuse

Chemical Substance Management●Hitachi, Ltd. 38■Trends in Handling Volumes for Hazardous

Secondary Waste Disposal

Air Pollutants* As Designated By the Air
Pollution Control Law (Hitachi, Ltd.)（t）

In-house waste
treatment

20

18.2
2.2
8

10

11.6
1.6

5
0

8
1997

6
1998

4.7

1999

2000

Disposal withtreatment●Hitachi, Ltd. 2●Hitachi, Ltd. and affiliatedcompanies (domestic) 16

Secondary recycling
or reuse●Hitachi, Ltd. and affiliatedcompanies (domestic) 106●Hitachi, Ltd. 61●Hitachi, Ltd. and affiliatedcompanies (domestic) 281

Contracted waste
treatment

4
5.5 0.4
0.1
5●Hitachi, Ltd. and affiliatedcompanies (domestic) 174●Hitachi, Ltd. 6■Tetrachloroethylene■Trichloroethylene■Dichloromethane

15●Hitachi, Ltd. and affiliatedcompanies (domestic) 31

Recycling and Reuse

3.3●Hitachi, Ltd. 63●Hitachi, Ltd. and affiliatedcompanies (domestic) 250

2001 （Fiscal year）* The “Voluntary Management Plan for Hazardous Air Pollutants,”
formulated by four electrical organizations and based on the Air Pollution
Control Law, targets the management of four substances. Hitachi has
already abolished three of these four substances. They are: chloroform,
tetrachloroethylene, and trichloroethylene.

Worldwide Stakeholder Collaboration

Data Provided on “hitachi green web”
hitachi green web provides information
about our environmental activities. For adetailed list of data items, visit this site at:Environmental Communication■Information Disclosure●Environmental reports published by site

●Information disclosure via the Internet by site

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

Published on behalf of individualcompanies and company groups

Published on behalf of individualcompanies and company groups

Category

4

Published by designated sites

27
5■Response to Administrative Guidance, Recommendations, and Outside Complaints●Recommendation from the Government

Activity

Data provided on hitachi green web

Promotion of environmental
History of our activities
managementcommunication
Implementation of an environmental
management system

Environmental
accounting

ISO14001-accredited
production site list
Costs
Percentage breakdown by department
for expenses and capital investment
Percentage breakdown of capital
investment measures
EffectPercentage breakdown bydepartment for economic effectEnvironmental education

Worldwide Stakeholder
Collaboration

In regard to an incident involving therelease of CFCs into the atmosphere by
Kansai Recycle Systems Corporation, a
Hitachi Ltd. affiliate in charge of recycling
household electrical appliances, we
received reprimands from both the Ministerof Economy, Trade and Industry and theMinister for the Environment dated March
20, 2002. We took responsibility for the
corporation's actions, and although we
confirmed that there were no problems at
the sites of our other recycling contractors,
we are working together with their
manufacturers to improve the quality of theaudits carried out at the sites of ourrecycling contractors. In addition, we arestrengthening management practices toensure that this kind of incident does notoccur again.

Eco-products & Eco-factories

According to the data collected, theHitachi Group was not subject to any
monetary penalties or fines during fiscal
2001. However, there was one recorded
instance in which we received a
reprimandation from the government.
We also received some complaints fromcitizens concerning industrial noise (6complaints), dust (2 complaints), andunpleasant odors (2 complaints). In
addition to offering an explanation ineach case, we took measures toimprove the machinery concerned, andmade adjustments to machinery
operation times as necessary. Further,as a preventative measure, we revised
our guidelines for operation, andstrengthened the values set out in our
independent standards.

Eco-mind & Management

Published by designated sites

12

Eco-products

Prevention of global
warming

Current and required numbers of legally qualified personnel*
Registered products list and data sheets*
Examples of eco-products
List of products targeted by our green procurement policy*
Green Procurement Guidelines
Percentage breakdown by department for CO2 emissions
Composition of energy consumption
Percentage breakdown by department for final disposal

Waste reduction

Percentage breakdown by type for final disposal
Percentage breakdown of recycling methods

Chemical substance management PRTR survey results
Resource purchasing anddischarge into the environment

Trends in water consumption

Environmental
communication

Environmental reports publishedby each company and site
hitachi green web links to eachcompany and site
Commendations*mark date is prvided on "hitachi green web"only in Japanese.
The address is "http://greenweb.hitachi.co.jp"36Company Profile■Company Profile (as of March 31, 2002)
Corporate
Name

Hitachi, Ltd.

■Main Products and Services
System integration services, software, magnetic disc systems, servers,
Information andnotebook and desktop computers, peripheral devices for computers,
Telecommunication Systems converters, optical components for communication systems

Incorporated

February 1, 1920

Principal Office

6, Kanda-Surugadai 4-chome, Chiyoda-ku, Tokyo 101-8010, Japan

Representative

Etsuhiko Shoyama, President and Director

CapitalSystem LSI solutions, memory, multi-purpose semiconductors, liquid crystal
displays, semiconductor manufacturing equipment, measurement andanalysis equipment, medical equipment
Nuclear power generation hardware, thermal power generation hardware, hydro power generation
Power &
hardware, industrial machinery and plants, air conditioning systems, construction machinery, train
Industrial Systems
carriages, elevators, escalators, machinery for automobiles, environmental equipment
Optical storage drives, televisions, video tape recorders, portable devices, liquid crystal
Digital Media &projectors, air conditioners, refrigerators, washing machines, lighting fixtures, cooking
Consumer Products
equipment, batteries, video tapes, media for recording information
High Functional Materials & Electrical wires, cables, copper and brass products, iron castings, steel castings, high-grade
specialty steel, magnetic material, chemical substances, electrical insulation materials,
Components
synthetic resins, carbon products, printed circuit boards, ceramic materials
Logistics, Services & Others Electrical and electronic equipment sales, transportation of freight, real estate management, trade, and leasing

Electronic Devices¥282,032 million

Financial Services

Sales of affiliated loans, leasing, life and non-life insurance businesses• Number of consolidated subsidiaries : 1,066• Number of affiliated companies accounted for using the equity method : 108

Sustainability Data
Financial Data
■Financial Summary for Fiscal 2001 (year ended March 31, 2002)
CapitalConsolidated

Unconsolidated

Net sales￥7,993,700 million ￥3,522,200 million

Net profit￥-483,800 million ￥-252,600 million

Number of employees

321,51750, 427【Trends in Consolidated Performance Results】
Net sales (100 million yen)

Net Sales by Industry Segment
for Fiscal 2001 (100 million yen)

10000080,012

Operating Income by Industry Segment
for Fiscal 2001 (100 million yen)
1000

3000
79,937

79,773

3,423

3500

Financial Services 5,671 (6%)
84,16980000

Operating Income/Loss (100 million yen)

Information andTelecommunication
Systems 18,296 (18%)

Logistics, Services& Others
14,308 (14%)

550
500

2500
2000

1,743

32
0

1500

60000

374

357

-146

1000

Electronic Devices
14,872 (15%)

High Functional Materials& Components
12,502 (12%)

40000

0

Digital Media &Consumer Products
11,707 (12%)

20000

-500

Power & Industrial
Systems
22,669 (23%)

-1000

-340

-1000

-1500
-1,636-1500-1,174

0

1998

1999

2000

-2000

2001 (FY)

-220

-500

500

1998

1999

2000

2001（FY）

Information and Telecommunication Systems
Electronic Devices
Power & Industrial Systems
Digital Media & Consumer ProductsHigh Functional Materials & Components
Logistics, Services & Others
Financial Services-2000

Total Sales by Industry Sector ￥10,002.7 billion

Total Operating Income by Industry Sector¥- 68.9 billion￥7,993.7 billion

Consolidated Operating Income¥-117.4 billion

Consolidated Net Sales

Environmental Data
■Resource Purchasing and Discharge into the Environment●Hitachi, Ltd. and affiliated companies (domestic)
Chemical Substances 191 kt

EnergyElectricity 5 billion kWhPetroleum 390,000 kl(crude oil conversion)

Hitachi Group
Production Process
AtmosphereCO22,755kt-CO2
Chemical substances 10 kt
SOx
452 t
NOx
1,678 t●Affiliated Companies (overseas)

Water
Surface water 10.18 million m3
Industrial water 31.14 million m3
Underground water 37.08 million m3

Amount of water reused: 55.92 million m3

Waste water
Sewerage system 10.01 million m3
Public waterways 59.57 million m3

Waste
Waste generated
Waste reduction
Recycling
Final disposal

561 kt59 kt
455 kt47 kt

Chemical Substances 13 kt

EnergyElectricity 1.1 billion kWhPetroleum (crude oil conversion)
60 million l

Hitachi Group
Production Process

Amount of water reused: 12.87 million m3

Waste water
Sewerage system 6.23 million m3
Public waterways 2.80 million m3

AtmosphereCO2 487 kt-CO2

Water
Surface water 7.32 million m3
Industrial water 1.57 million m3
Underground water 0.77 million m3

Waste
Waste generated
Waste reduction
Recycling
Final disposal

118 kt
32 kt
35 kt
51 kt

Social Data
【 Work Related Accidents Rate 】（per 1 million hrs）
2.5

All industries

2.0

Manufacturing industry
Electrical-related

1.5

Hitachi

1.0【 Hitachi’s No-accident Upgrade Register 】
Operation site

Initialization date Suspension date

Telecommuni- August 11, 1978
cations System
Division

Ongoing

No-accident hours

Reference

123,900,000 (as of February On May 15, 2001, we
2002)
established our
the Japan Record
which we arecontinually updating.

0.5
0.0

'92 '93 '94 '95 '96'98 '99 '00 '01

37

Corporate Environmental Policy Division
Hitachi, Ltd.
July 2002

Hitachi Group - Environmental Sustainability Report 2002

Thank you for your concern and interest in the business activities of the Hitachi Group, and inparticular, for the interest you have shown towards our environmental preservation activities.
With our compliments, please find enclosed a copy of the Hitachi Environmental Sustainability
Report 2002, detailing the environmental activities undertaken by the Hitachi Group during
the 2001 fiscal year.
Together with the results of our activities for the previous fiscal year, this year's report also
includes some additional information, including the Hitachi Group's new environmental vision,and information regarding our communication activities with the our stakeholders.
In the future, while striving to continually improve our environmental preservation activities, theHitachi Group intends to pursue greater information disclosure in order to facilitate a wider
understanding of the content of these activities.
We hope you will enjoy reading our latest Environmental Sustainability Report, and lookforward to receiving your unreserved thoughts and opinions.

Inquiries:
Corporate Environmental Policy Division
Hitachi, Ltd.
6, Kanda-Surugadai 4-chome,
Chiyoda-ku, Tokyo 101-8010, Japan

We would like to use the opinions and advice of our customers in formulating our futureenvironmental activities and environmental reports. Please take the time to fill in the questionnaireon the reverse side of this page, and send your answers by fax to:Tel:(81) 3-3258-1111
Fax: (81) 3-3258-5810
E-mail:kankyohon@hdq.hitachi.co.jp

Fax: (81) 3-3258-5810

Questionnaire
Please answer the questions below and mail or fax your completed questionnaire to the address/facsimile number on the right.
Corporate Environmental Policy Division
Hitachi, Ltd.
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 box only)□ Excellent□ Good□ Average□ Not very good

□ Poor・Explain the reason(s) for your selection. (Contents, comprehensibility, etc.)
Q2. What impressed you most about the Hitachi Environmental Sustainability Report? (You may select more than one box.)□ Our Future, Your Future□ Message from the President□ Executive Commitment□ Environmental Vision□ EcoValue Plan 2010

□ Environmental Action Plan and Evaluation□ GREEN 21 Activities Results Report□ Eco-mind & Management□ Nature-friendly Products & Eco-factories□ Worldwide Stakeholder Collaboration□ Sustainable Business Models□ Data Summary□ Sustainability Data

□ Our Determination as a Global Citizen

・If any of the selections above particularly interested you, please explain why.
Q3. If any of the categories in the fiscal 2001 Data Summary particularly impressed you, please let us know.

Q4. Do you have any suggestions for information that should be included in the Hitachi Environmental Sustainability Report.

Q5. Have you visited the hitachi green web?
□ Yes

□ No

・If you visited the hitachi green web, please let us know your impression.
Q6. Given the chance, would you be interested in sharing your opinions as a participant in one of Hitachi's environmental
information sharing town meetings?
□ Yes

□ No

Q7. From what standpoint did you read the Hitachi Environmental Sustainability Report? (Check one box only)□ Customer□ Business partner □ Government/Public administrator □ Researcher/Educator □ Non-profit organization (NPO)□ Resident near a Hitachi Group facility □ Hitachi Group employee or employee family member□ Other ()

Q8. How did you find out about the Hitachi Environmental Sustainability Report? (Check one box only)□ Newspaper □ Magazine □ Hitachi Web site □ Environmental seminar □ Exhibition□ Other ()

Q9. If there are any environmental issues you would like to see us tackle, or feel that we are not tackling properly,
please let us know.

Thank you for your cooperation. Please fill in your personal details below. (Optional)
Name:

Male/Female

Address:
E-mail:Occupation/Name of company:

Age: