Hitachi Group
Sustainability Report 2011

Contents

Hitachi Group
Sustainability Report
2011

003

Management Information Disclosure / Sustainability Report Editorial Policy

005

Hitachi Group Proﬁle007

TOP COMMITMENT Hiroaki Nakanishi, President, Hitachi, Ltd.

009

TOP DIALOGUE Dialogue with WBCSD President

010

Effect of the Great East Japan Earthquake and Hitachi’s Response

015

VISION Hitachi’s Management Strategies and CSR
Corporate Credo and Management Plan / 2012 Mid-Term Management Plan /Creating a Sustainable Society / Material Issues for Hitachi

019

FEATURE Next-Generation Smart Cities by Hitachi
Urban Planning for Tianjin Eco-City
Hitachi Projects Extending around the World

025

Third-Party Expert Opinions

026

Management Report

027

Message Toshiaki Kuzuoka, Senior Vice President and Executive Officer

028

Corporate Governance
Strengthening Governance / Internal Control

030

CSR Management
CSR Management Structure / The Five-Year CSR Roadmap /CSR Self-Assessment Tool / FY 2010 Results and FY 2011 Plans

034

Risk Management
Responding to the Great East Japan Earthquake /Reinforcing the Risk Management System / Business Continuity Plans (BCPs)

036

Compliance
Formulating and Ensuring Awareness of the Hitachi Group Codes of Conduct / Implementing
Corporate Ethics Month / Compliance Reporting System / Preventing Corruption / Preventing
the Recurrence of Misleading Representations / Protecting Personal Information and Information
Security / Export Control

041

Innovation Management
Research and Development Strategy / Research and Development Goals /Enhancing Overseas Research Bases / R&D Plan and Investment /Hitachi Fellow System / Examples of R&D Achievements

044Intellectual Property (IP)Globalization of Intellectual Property / Building a Strategic Patent Portfolio /Strengthening International Standardization / Business Contributions /Respect for Intellectual Property / Reward System for Employee Inventions /Cultivating Human Capital

046

Brand Management
Global Brand Strategy / Improving the Global Brand / Web Management /Internal Brand Management / Evaluating the Effectiveness of Brand Initiatives /Reputation Management / Action against Infringement of the Brand Value

049

Environmental Report050

Message Shigeru Azuhata, Senior Vice President and Executive Officer

051

Corporate Environmental Management Strategies and Initiatives
The Hitachi Environmental Vision / Long-Term Plan Environmental Vision 2025 /Environmental Action Plan

060

Activities to Preserve Ecosystems

063

Environmentally Conscious Products and Services
Increasing the Ratio of Eco-Products / Recycling Product Resources /Managing Chemical Substances Contained in Products /Participating in the Development of International Standards

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071

Environmentally Conscious Production
Creating Super Eco-Factories and Offices / Reducing Greenhouse Gas Emissions /Reducing Waste / Water Conservation / Chemical Substance Management /Managing Environmental Risk / Environmental Load Data Generated through Business
Operations (FY 2010)

081

Environmental Management Framework and Communication
Environmental Management Framework / Environmental Education /Environmental Accounting / Environmental Communication

Hitachi Group
Sustainability Report
2011

090

Independent Review

091

Social Report092

Message Makoto Ebata, Senior Vice President and Executive Officer;

Naoki Mitarai, Vice President and Executive Officer
093

Quality Assurance and Customer Satisfaction
Quality Assurance Activities / Quality and Reliability Education /Strengthening Quality Assurance Systems in China and throughout Asia /Handling Product Accidents / Customer Satisfaction / Universal Design099

Public Policy Initiatives
External Relations Policy / External Relations Structure / Stakeholder Engagement /Partnerships for Combating Global Warming / Global External Relations Initiatives

101

Communication with Shareholders and Investors
Policy on Information Disclosure / Proactive IR Approach /General Meeting of Shareholders / Socially Responsible Investment andSustainable Investment Assessments in Fiscal 2010 /Basic Policy for Prevention of Takeovers

104

Social Contribution Activities
Philosophy and Policy / Education / The Environment / Social Welfare /Hitachi's Foundations / Support for Volunteer Activities / Disaster Relief and Recovery

116

Respect for Human Rights
Human Rights Policies / Framework for Promoting Respect for Human Rights /Raising Awareness of Human Rights / Applying Human Rights Worldwide

119

Supply Chain Management
Promoting Globalization / Sharing Procurement Policies / Building Partnerships /Helping Create International Guidelines / Sharing CSR Awareness / Green Procurement /Response to Conﬂict Minerals Issue

123

Diversity Management
Diversity Development Project / European Diversity Project /Employing People with Disabilities / Model Project for Promoting the Employment ofPeople with Mental Disabilities

130

Global Human Capital Development
Aligning Hiring with Global Business / Global Education for Young Employees /Global Manager Training / Training Future Managers / HITACHI BASIS / Training System

132

Employee Health and Safety
Health and Safety Programs / Mental Health Care / Basic Attitudes to HIV/AIDS

134

Comparative Table with GRI Guidelines

144

Comparative Table with ISO 26000 Core Subjects

145

Comparative Table with the UN Global Compact

146

Policy, Vision, and Guidelines

147

Major Results Data

149

Inquiries

Symbol Marks Used in This Booklet† Technical terms, proper nouns, etc., in the text requiring explanation* Additional explanation of terms, etc., in tables or diagrams
WEB Indicates the title and URL of the Web page related to the article. The Environmental
Report (pages 049–090) can be downloaded as a file from the Web site below
http://www.hitachi.com/environment/data/

Hitachi Group Sustainability Report 2011
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Management Information Disclosure
We disclose non-ﬁnancial information, mainly our activities in ﬁscal 2010, ended March 31, 2011, in the Hitachi Group
Sustainability Report 2011. Operating and ﬁnancial information for shareholders and other investors is in the Annual Report 2011.
Our Web site provides the latest information on these and other topics.

Non-Financial Information Reports
WEB Global Community Relations
and Activities(Social Contribution Activities)
http://www.hitachi.com/Int-e/skk/
index.html

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

Hitachi Group
Sustainability Report 2011

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

Hitachi Group
Sustainability Report 2011

Financial Information Reports

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

Annual Report 2011

Note: We also disclose operating and ﬁnancial
information on Hitachi, Ltd. in the Form 20-F
ﬁlings with the United States Securities andExchange Commission (see page 102).

Sustainability Report Editorial Policy
The Hitachi Group Sustainability Report 2011 is a combination of the Hitachi Group Corporate Sustainability Report and the HitachiGroup Environmental Sustainability Report, which we published through ﬁscal 2010. We publish the Hitachi Group Sustainability
Report 2011 Digest (24 pages), a summary of policies, areas of special social interest, and reports on key management issues fromthe larger Hitachi Group Sustainability Report 2011 (149 pages), which is issued as a PDF. (The Japanese and English versions of thisdigest are scheduled to be released in September and October, respectively.) Our Web site also reports on detailed activity, as well
as news releases and other up-to-date information.
Latest information
Reports on detailed activities
On Hitachi, Ltd. Web site

Reports on material issues

bookletPrinted version
Hitachi Group
Sustainability Report
2011 Digest

Web

PDF

Hitachi Group
Sustainability Report
2011

CSR (Corporate Social Responsibility)
Environmental Activities
Global Community Relations andActivities(Social Contribution Activities)

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PDF

Reports on Detailed Activities
Hitachi Group Sustainability Report

booklet

Reports on Material Issues
Hitachi Group Sustainability Report Digest

Hitachi Group Proﬁle
Top Commitment
Effect of the Great East Japan Earthquake and Hitachi’s Response

Effect of the Great East Japan Earthquake and Hitachi’s Response
Hitachi Group Proﬁle
Top Commitment

Hitachi’s Management Strategies and CSR
Corporate Credo and Management Plan / 2012 Mid-Term Management
Plan / Creating a Sustainable Society / Material Issues for Hitachi

Hitachi’s Management Strategies and CSR
Corporate Credo and Management Plan / 2012 Mid-Term Management
Plan / Creating a Sustainable Society / Material Issues for Hitachi

FEATURE
Next-Generation Smart Cities by Hitachi

FEATURE
Next-Generation Smart Cities by Hitachi

Third-Party Expert Opinions

Caring for the Environment / Respect for Human Rights/ Supply Chain
Management / Diversity Management / Public Policy Initiatives

Management Report
Message from the Executive Officer for Management Audits / Corporate
Governance / CSR Management / Risk Management / Compliance /Innovation Management / Intellectual Property / Brand Management
Environmental Report
Message from the Executive Officer for Environmental Strategy / Corporate
Environmental Management Strategies and Initiatives / Activities to
Preserve Ecosystems / Environmentally Conscious Products and Services/ Environmentally Conscious Production / Environmental Management
Framework and Communication
Social Report
Message from Executive Officer for Procurement / Message from Executive
Officer for Human Capital Group / Quality Assurance and Customer
Satisfaction / Public Policy Initiatives / Communication with Shareholders
and Investors / Social Contribution Activities / Respect for Human Rights/ Supply Chain Management / Diversity Management / Global Human
Capital Development / Employee Health and Safety
Comparative Table with GRI Guidelines / Comparative Table with ISO
26000 Core Subjects / Comparative Table with the UN Global Compact /Policy, Vision, and Guidelines / Major Results DataWeb

Latest information
Major CSR (Corporate Social Responsibility)
Content on the Web Site

The CSR Web site has a full PDF version with details on our activities andthe following content. The Environmental Activities Web site reports onenvironmental protection initiatives. The Social Activities Web site discloses
social contributions.
Contents Disclosed Solely on the Web Site
CSR at HITACHI: Vision and Policies
Highlights: Spotlighting 2005 through 2010
Policies on preventing the recurrence of misleading representations
Diversity management*
Employee safety and health*WelfareSupplementary data for Environmental Report**Expanded version of detailed activities report (PDF)

Scope of Reporting[Period]
The main period covered is ﬁscal 2010 (April 1, 2010, to March 31, 2011)[Companies]
Hitachi, Ltd. and 913 consolidated subsidiaries (including modiﬁed entities
to which the equity method of consolidated reporting applies): total 914
companies[Scope of data]
Financial data Hitachi, Ltd. and 913 consolidated subsidiaries (including
modiﬁed entities to which the equity method of consolidated reporting
applies) and 164 affiliated companies that use the equity method
Social data Scope of data indicated under each item
Environmental data Hitachi, Ltd. and 913 consolidated subsidiaries(including modiﬁed entities to which the equity method of consolidated
reporting applies): total 914 companies. However, for environmental load
data generated through business operations, companies that cover 90%of the load (based on Hitachi calculations) are included. The data for eachﬁscal year indicates the results according to the scope of data in that ﬁscal
year. The base ﬁscal year data have been revised in accordance with thescope of data for ﬁscal 2010.
Guidelines Referred to in Preparing This Report“Environmental Reporting Guidelines” (FY 2007 version), Ministry of theEnvironment, Japan“Environmental Reporting Guidelines 2001—With Focus on Stakeholders,”
Ministry of Economy, Trade and Industry, JapanGRI Sustainability Reporting Guidelines (G3.1), Global Reporting Initiative

Initiatives That We Participate in
We have been a member of the United Nations Global Compact since
February 2009.

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

External Evaluations
We were selected in September 2010 for the Dow Jones Sustainability
World Indexes (DJSI World), one of the world’s leading sustainability
investment fund indexes. We were also awarded the Silver Class in the
Sustainable Asset Management (SAM) Sustainability Yearbook 2011
(February 2011 issue).

This sustainability report is published annually.

Hitachi Group Sustainability Report 2011
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Hitachi Group Profile
Company Profile (as of March 31, 2011)
Corporate Name Hitachi, Ltd.
Incorporated
February 1, 1920 (founded in 1910)
Head Office
1-6-6 Marunouchi, Chiyoda-ku,
Tokyo 100-8280, Japan
Representative Hiroaki Nakanishi, Representative
Executive Officer and President

Capital409,129 million yen
Number of employees (unconsolidated basis)
32,926
Number of employees (consolidated basis)361,745
Number of consolidated subsidiaries
913(Japan: 351, outside Japan: 562)
Number of equity-method affiliates
164(Japan: 72, outside Japan: 92)

Consolidated Business Overview and Results for Fiscal 2010
Revenues

9,315.8 billion yen(104% compared with the previous year)
Operating income
444.5 billion yen(220% compared with the previous year)
Capital investment
556.8 billion yen(102% compared with the previous year)
R&D expenditures
395.1 billion yen(106% compared with the previous year)
Overseas output as a percentage
of consolidated net sales
27%

Revenues and Operating Income
Revenues(billions of yen)
12,00010,000

11,226.7
10,247.9

10,000.3
8,968.5

9,315.8

8,000
6,000

1,000

600
444.5
345.5

4,000
182.5

0

Sales Revenue by Geographic Region (billions of yen)

2006

400
127.1

2007

2008

202.1

200

2009

2010
(FY)

0

Revenues by Industry Segment (billions of yen)
Others767.4 (7%)

Other 431.6 (5%)
Number of companies: 50
Number of employees: 5,832

Information &Telecommunication Systems
1,652 (16%)

Financial Services
372.9 (4%)

Asia 2,073.7 (22%)
Number of companies: 291
Number of employees: 114,150

Operating income(billions of yen)
1,200

800

2,000

Digital Media & Consumer Products
951.5 (9%)
Components & Devices
809.8 (8%)

Net sales
9,315.8 billion yen

Total Sales by Industry:
10,500.8 billion yen
Consolidated Net Sales:
9,315.8 billion yen

Automotive Systems
737.9 (7%)

Europe 760 (8%)
Number of companies: 142
Number of employees: 9,833
North America 781.1 (8%)
Number of companies: 79
Number of employees: 15,537

Revenues
Operating income

Japan 5,269.2 (57%)
Number of companies: 351
Number of employees: 216,393

High Functional Materials& Components
1,408.1 (13%)

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Construction
Machinery
751.3 (7%)

Power Systems
813.2 (8%)

Social Infrastructure &Industrial Systems
1,156.9 (11%)

Electronic Systems & Equipment
1,079.3 (10%)

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

Enterprise storage platform

Social Infrastructure & Industrial Systems

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

Industrial machinery and plants, elevators,
escalators, railway vehicles and systems
Hitachi Industrial Equipment Systems Co.,Ltd.,
Hitachi Elevator (China) Co., Ltd., Hitachi
Building Systems Co., Ltd., Hitachi Plant
Technologies, Ltd.
Sewage treatment plant built byHitachi Plant Technologies, Ltd.
in Malaysia

Ultra supercritical steam turbine

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

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

Hitachi High-Technologies’ device
characterization system

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

Hitachi Construction Machinery’s
hydraulic excavator

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

Hitachi Chemical’s carbon
anode materials for lithium-ion
batteries

Components & Devices

Hitachi Automotive
Systems’ stereo camera

Digital Media & Consumer Products

Hard disk drives, LCDs, information storage
media, batteries
Hitachi Displays, Ltd., Hitachi Maxell, Ltd.,
Hitachi Display Device (Suzhou) Co., Ltd.,
Viviti Technologies Ltd.
2.5-inch hard disk driveby Hitachi Global Storage
Technologies

Financial Services

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

Syo-ene No Tatsujin PREMIUM,
Hitachi Appliance’s Air Conditioners
for use in shops and offices

Others

Leasing, loan guarantees
Hitachi Capital Corporation

Hitachi Capital’s multifunctional
IC card

Logistics, property management
Chuo Shoji, Ltd., Hitachi Life, Ltd., Hitachi
Transport System, Ltd., Hitachi America,
Ltd., Hitachi Asia Ltd., Hitachi (China) Ltd.,
Hitachi Europe Ltd.
Hitachi Transport System’s Keihin
Distribution Center, a distribution
center equipped with security systems

Major Products & Services
Major Consolidated Subsidiaries (as of March 31, 2011) The products marked with an asterisk (*) in the table above are those of Hitachi, Ltd.
(Notes.) 1. Hitachi Solutions, Ltd. was formed through a merger between Hitachi Software Engineering Co., and Hitachi Systems & Services, Ltd. as of October 1, 2010.
2. Hitachi Automotive Products (USA), Inc. changed its name to Hitachi Automotive Systems Americas, Inc. as of January 1, 2011.
3. Viviti Technologies Ltd. is a holding company whose operating companies include Hitachi Global Storage Technologies, Inc., a company engaged in the manufacture and sale ofhard disk drives, and was established on October 5, 2010.

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TOP COMMITMENT

Creating social and economic value
at the same time to contribute to realizing
a sustainable society
I would like to begin my message by offering thedeepest condolences of everyone in the HitachiGroup to the victims of the Great East Japan
Earthquake on March 11. I’m afraid some ofour customers experienced disruptions due toHitachi’s supply chain in the affected disaster areas.
Although the earthquake damaged several HitachiGroup plants, we restored most of the affected
manufacturing operations through concerted
companywide efforts.
Hitachi was established a century ago in HitachiCity, Ibaraki Prefecture, northeast of Tokyo, andjust south of the accident at the Fukushima Nuclear
Power Station. Hitachi has since grown within thecommunity of Ibaraki as well as the region as awhole. We believe that it is our responsibility to giveback to the city and the region that nurtured ourbusiness, as well as to help eastern Japan recoverfrom the earthquake by rebuilding devastated towns
in safer and more sustainable ways. To that end, weare focusing our energies to use our technologies
and expertise in a concerted effort to help deal
with and overcome the accidents at the Fukushima
Daiichi Nuclear Power Station.

Changing Perceptions of Value
Following the Great East Japan
Earthquake
The earthquake damage temporarily halted
production at many plants across Japan, while itdeeply affected the global value chain, and has
cast doubt on the business continuity planning ofJapanese manufacturers. As part of Japan’s social
infrastructure, we are reinforcing our risk andcrisis management policies for business continuity
planning and the entire value chain.
The earthquake caused temporary shutdowns ofelectricity, telecommunications, water, and sewage,
as well as other parts of the infrastructure thatpeople take for granted. It highlighted many risks
for a secure and reliable infrastructure, including
the possibility of major power shortages. Today,
as I write this, I feel that this disaster forces us
to reprioritize our commitments for the social
infrastructure. Accordingly, I now believe that our
mission is to help create safe, secure, and vibrantcommunities, and that we contribute to building
a social, industrial, and daily life infrastructurethat can better withstand disasters. We willcontinue striving to create a sustainable societythat conserves resources and energy. We will fulﬁll
this mission by focusing on our Social Innovation
Business.

Pursuing Further Growth
Despite the impact of the earthquake, our 2012 MidTerm Management Plan has borne fruit in several
respects during ﬁscal 2010, the ﬁrst year of the plan.
For example, while all business segments were
proﬁtable, we re-engineered our in-house company
system and began other internal reforms.
I’m ﬁrmly committed to position Hitachi
to lead the drive toward creating a sustainable
society, amid economic globalization, by devisingand implementing growth strategies centeredon Social Innovation Business. We will therefore
concentrate investments in eleven key regions,such as the Asian Belt Zone†1 where economic

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growth is remarkable, South America, and Central
and Eastern Europe. We will achieve true global andtransnational management by positioning Japanas one of the key areas, and by strengthening local
leadership. We will recruit globally and employ theright people in the right places.

CSR: the Foundation of Global
Management
I believe that CSR is the foundation of global
management and, indeed, any management. The
world faces such global problems as climate change
and ecosystem destruction, as well as energy
depletion, human rights abuse, and other issues.
I think that in order to resolve these fundamentalsocial issues in line with Hitachi’s corporate credo,
it is important to create value that can be handed
down 10 to 20 years in the future by collaboratingwith partners and stakeholders. We will contributeto building a sustainable society by simultaneously
creating social and economic value and byintegrating CSR with management and strategy. We
aim to become the world’s most trustworthy andreliable enterprise.
July 2011†1 Asian Belt Zone consists of countries and areas, 24 in all, such as China, theASEAN countries, India, Middle Eastern countries and other countries locatedwithin those territories.

Hiroaki Nakanishi
President, Hitachi, Ltd.

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TOP DIALOGUE

Dialogue with WBCSD President on Sustainable
Development and the Role of Firms
Björn Stigson, President, WBCSD (left)
Hiroaki Nakanishi, President, Hitachi, Ltd. (right)
About the World Business Council for Sustainable Development (WBCSD)
The WBCSD is a CEO-led, global coalition of some 200 companies advocating for progress on sustainable development. Its mission is tobe a catalyst for innovation and sustainable growth in a world where resources are increasingly limited. The Council provides a platform
for companies to share experiences and best practices on sustainable development issues and advocate for their implementation,
working with governments, non-governmental and intergovernmental organizations. The membership has annual revenues of US$ 7
trillion, spans more than 35 countries and represents 20 major industrial sectors. The Council also benefits from a network of 60 nationaland regional business councils and partner organizations, a majority of which are based in developing countries.

During his May 2011 trip to Japan, WBCSD (World
Business Council for Sustainable Development)
President Björn Stigson visited Hitachi to talk with
Hitachi, Ltd. Representative Executive Officer andPresident Hiroaki Nakanishi.
Hitachi, Ltd. has been a WBCSD member
company since ﬁscal 2010 and co-chairs the
WBCSD Ecosystems Focus Area Core Team. This
team has been developing ESR*1 and CEV*2 as tools
for evaluating the ecosystem impact of corporate
activities as part of its mission to gauge the impact
of corporate activities on ecosystems and to preserve
ecosystems.
At their meeting, Mr. Stigson and Mr. Nakanishi
discussed issues such as the impact of the Great East
Japan Earthquake on Japan and Hitachi, the statusof the recovery from the disaster, the medium-to long-term business environment outlook,
how to handle business in emerging countries,
contributions to ecosystem preservation, and therole of the WBCSD.
Mr. Stigson lauded Hitachi Group’s Social
Innovation Business as an innovative societyfocused strategy that clearly delineates the roleof companies. He noted that a combination of
innovation, markets and appropriate regulation
would be essential in achieving a sustainable society.
Details of the meeting appear on Hitachi’s environmental Web site.
WEB

http://www.hitachi.com/environment/dialogue/*1 ESR: The Corporate Ecosystem Services Review
WEB

http://www.wbcsd.org/web/esr.htm (various languages)*2 CEV: The Guide to Corporate Ecosystem ValuationWEB

http://www.wbcsd.org/web/cev.htm (various languages)

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Effect of the Great East Japan Earthquake andHitachi’s Response
We wish to express our deepest condolences to all those affected by the earthquake that occurred
off the Paciﬁc coast of northeastern Japan on March 11, 2011 and the subsequent tsunami andaftershocks. We sincerely hope for the fastest possible recovery in all regions.
The March disaster heavily impacted the Hitachi Group too, particularly our production plants inprefectures in the Tohoku and Kanto regions. We also lost six of our staff to the tsunami. The disasterbrought ﬁscal 2010 sales down by 130 billion yen and operation income fell by 75 billion yen. Given
the current economic trends, we expect that ﬁscal 2011 sales will drop by around 350 billion yen andoperation income by around 110 billion yen. Our stakeholders too have felt anxiety and have been
inconvenienced by the damage to production equipment and disruption to material and resource
procurement and logistics.
Immediately after the disaster, at our head office we established the Hitachi Group Emergency
Headquarters for Response to the Tohoku Earthquake, headed by Hitachi, Ltd. President Hiroaki
Nakanishi, to provide support for affected areas and customers, gather information on losses anddamage suffered by employees and their families and our various plants, and to launch emergency
measures. On March 23, the role of the Coordination Headquarters was expanded by launching the
Hitachi Group Headquarters for Post-earthquake Reconstruction and Redevelopment to accelerate
recovery and redevelopment activities. We recognize, however, that the extensive impact of thedisaster will require a long-term response. Drawing on our experiences following the March disaster,we will build greater disaster resilience into our corporate structure and lend our weight as acompany involved in the Social Infrastructure Business to the recovery of not only Hitachi but alsoof Japan.
1. Effect of the Disaster on Group Management and Recovery Status(1) Effect on Factories and Recovery Status
Our factories in Ibaraki Prefecture in particular suffered damage to buildings and production
facilities, but extremely rapid recovery work has seen our main factories now almost fully
restored.
Hitachi created business continuity plan (BCP) guidelines back in December 2006, andmany of our factories have BCPs in place to deal with outbreaks of a novel strain of inﬂuenza
and earthquakes. We also conduct yearly tabletop exercises covering the eventuality of a major
earthquake, as well as carrying out regular drills and installing emergency facilities, including
having satellite phones set up in key factories. As a result, we were able to establish the HitachiGroup Emergency Headquarters for Response to the Tohoku Earthquake on the same day as theearthquake to centralize information and share it across the Group, and to launch immediate
recovery support. Due also to the hard work of our staff, the recovery proceeded much fasterthan anticipated, despite the enormous damage.

Pillar damaged at Mito Works

Response room at Hitachi Works

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Actions Taken Immediately after the Great East Japan Earthquake
TimingActionMarch 11

14:46

Great East Japan Earthquake occurs

15:07

First damage reports received by Risk Management HQ from Group companies

15:10

Hitachi Group Emergency Headquarters for Response to the Tohoku Earthquake established

15:40

First Group-wide notiﬁcation sent out from Risk Management HQ (earthquake outline, request
for damage status reports)

March 12First relief supply delivered (12 loads, mainly to districts in Ibaraki and Sendai), including 50,000
liters of water, 65,000 packages of food, and 11,000 rolls of toilet paper

March 13

Meeting of the relevant board members
Status update, “people ﬁrst” policy conﬁrmed

March 14

Board meeting held
Decision to move swiftly on response measures, including gauging the situation, providing relief
supplies, and dispatching personnel

March 15

Board Chairman Takashi Kawamura visits factories to conﬁrm the damage

March 17

Conﬁrmation of one employee death, thought to be due to the tsunami

March 23

Hitachi Group Headquarters for Post-earthquake Reconstruction and Redevelopment set up

Hitachi Works Recovery Initiative
On March 11, 2010 at 14:46, Hitachi, Ltd.’s Hitachi Works was struck by a powerful shock with astrong seismic intensity of a high 6. Violent tremors continued for the next two minutes, causing
an unprecedented amount of damage.
However, restoration of key infrastructure elements, such as power, gas and water in the
Hitachi district, saw commuting return to normal as of March 22, when Hitachi launched afull-scale initiative involving up to 2,000 people to restore production line and design office
operations. Thanks to employees laboring day and night—with manufacturers of large processing
machinery, tools, and jigs offering unstinting support—Hitachi was able to resume production at
the remarkably early date of March 29. A week later, on April 3, a gas turbine was shipped fromthe Hitachi Port in Hitachi City, Ibaraki Prefecture, for the ﬁrst time since the disaster. That ﬁrst gas
turbine to ship from Hitachi Port, which was massively damaged in the March disaster, epitomizes
the Hitachi Works’ determination to get manufacturing back up and running.

Cracked road at Hitachi Works (top left)
Toppled air conditioner inside the plant (bottom left)
Power generation machinery assembly resumes (top right)
First post-disaster gas turbine shipped from Hitachi Port (bottom right)

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(2) Impact on Customers and Subsequent Recovery Status
Widespread factory damage, rolling power outages, and ongoing problems in procuring
materials and resources caused major delays in deliveries of car parts and other items, but thatbacklog has now been almost cleared. Hitachi’s full and careful response to customers’ radiation
concerns also prevented any impact on product shipments. Long-term measures will, however,be needed in areas such as power saving and repairing damage to our reputation. To support
customers’ safety and security, Hitachi will gear production to the parts and material inventoryon hand and ensure that products are delivered on schedule, as well as enhancing our service
information.
2. Support for Affected Regions
Up to June 2011, Hitachi Group companies worldwide have together provided support totaling
940 million yen to aid victims of the disaster and to assist in recovery, including the provision,
free of charge, of ﬂat-panel TVs, dry cell batteries and Disaster Victim Support Systems for local
authorities. Some company housing in Tokyo has also been lent to disaster victims. Hitachi willcontinue to take swift support action geared to conditions in the affected regions. We have also
been sending staff volunteers to the Corporate Volunteer Program Supporting People in Regions
Affected by the Great East Japan Earthquake. This program, organized by the Joint Committee
for Coordinating and Supporting Voluntary Disaster Relief Activities,†1 enables members of the
One Percent Club†2 to volunteer for affected regions, in response to local requests.

Clearing away the sand piled up on roads by
the tsunami

Cleaning and sorting precious photographs

Photo credits: Joint Committee for Coordinating and Supporting Voluntary Disaster Relief Activities†1 Joint Committee for Coordinating and Supporting Voluntary Disaster Relief Activities: A network organization made up of companies, NPOs, social welfare councils, community chests, and other organizations. In normal times, it engages in surveys and research, human resource development, and education related to disaster support. When disaster strikes, a wide range of institutions, organizations,and people work together to provide victim support.
†2 Keidanren 1% (One Percent) Club: Established by Keidanren (Japan Business Federation) in 1990. Members are enterprises andindividuals who pledge to contribute one percent or more of their ordinary proﬁts or disposable incomes to social contribution activities.
Hitachi is a 1% Club member.

3. Supporting Social Infrastructure Restoration(1) Assistance at the Fukushima Daiichi Nuclear Power Station
Hitachi established the 24-hour Emergency Response Center for Nuclear Power immediately
after the earthquake struck, and has collaborated with GE-Hitachi Nuclear Energy to help
improve the situation at the power plant. To date, Hitachi has worked on recovering electricity
within the power station, pouring seawater and fresh water, and installing nitrogen injection
systems. We will continue to install nuclear fuel cooling systems, water decontamination
systems, and nuclear reactor covers. About 2,200 staff members of Hitachi Group have been
providing support and assistance, with around 1,200 employees dispatched to the site. We will

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continue to extend our full cooperation in response to requests from the Tokyo Electric Power
Company (TEPCO) and the government.
(2) Assistance Resolving the Power Supply Shortage
Immediately after the earthquake, the Emergency Response Center for Thermal Power that
included Group companies was established and 140 employees were deployed to provide an
immediate response to requests for resumption of operations at the various power companies’
thermal power plants. 400 engineers and other staff have been dispatched to power plants, andwe will continue sending them as they are required. Resolving power supply shortages will
require the installation of new power sources, and the Hitachi Group is throwing its full weightbehind ﬁtting new gas turbines and other power generation facilities as well as expanding
existing facilities. We have also begun to supply some of the power outside the company that is
produced by Hitachi, Ltd.’s three in-house power generation facilities.
(3) Disaster Recovery Support Services
To respond quickly to requests from affected customers, Hitachi has set up a dedicated Damage
Response Reception Center. We are also providing a wide range of disaster recovery support
services for between 3 and 12 months at no charge, including disaster support system creation,email and Web security services, data backup, teleconferencing systems, and small-scale
wireless telecommunication systems. Our main focus is on systems and cloud services for local
governments and companies.
4. Timing of FY 2012 Recruitment Selection Period and Selection Methods
To provide students who have been personally affected or whose families have been affected by
the disaster with the same opportunity as all other students for taking examinations, the startof the recruitment selection period at Hitachi, Ltd. was changed from April 1 to June 1. Open
recruitment ﬁnal selection was also held not only in Tokyo and Osaka but also in Sendai in the
Tohoku Region.
5. Summer Electricity Conservation Activities
Based on the Japanese government’s energy conservation action plan, as well as discussions
with customers and various industry organizations, Hitachi will reduce power use in regions
where power is supplied by TEPCO and the Tohoku Electric Power Company (Tohoku EPCO)
by at least 15 percent. In other regions too, we will actively promote various measures, making
every possible effort to reduce power consumption at the Group’s activities.
(1) Equalization of Summer Weekday Power Use through Rolling Holidays and Dispersed
Summer Vacations
From July to September in regions where power is supplied by TEPCO and Tohoku EPCO,
Hitachi will shift employees’ regular weekly holidays from Saturdays and Sundays to weekdays(Monday to Friday) on a rolling basis to spread these holidays throughout the week (generally
excluding hospitals, sales and service divisions). Summer vacations, which in normal years areconcentrated around August 15, will be dispersed based on the business group. Other employee
vacation days, such as national holidays that were originally scheduled for October onward,
will also be rescheduled as substitute holidays to fall within the July–September period, adding
approximately ﬁve vacation days. These efforts will help cut maximum power use by at least 15
percent during the summer period from July to August when power consumption peaks.
Hitachi will add rolling holidays and spread out summer vacations for a number ofprograms to assist employees caring for children or nursing care for family members. These

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include a subsidy system for child and nursing care facility and service costs; temporary
workplace childcare facilities; and the promotion of working from home and “ﬂextime,”
together with child-caring and nursing care leave.
(2) Energy Conservation Measures at Each Works
In May 2011, we launched the Hitachi Group Summer Energy Conservation Campaign,
promoting energy-saving measures such as cutbacks in the use of indoor lighting, adjusting
air-conditioning temperatures, suspending the operation of some elevators, and extending theperiod of time during which employees may come to work without neckties and jackets (basedon the Ministry of the Environment’s “Cool Biz” campaign). At our manufacturing bases, we are
striving to equalize production and increase efficiency to level out and reduce production line
power use. We are also promoting other measures, such as using “Green Curtains,”†1 which help
to reduce room temperatures at around 300 production bases, branches, and training facilities,
as well as distributing bitter gourd seeds for planting to Hitachi Group employees.
(3) Use of real-time electric power monitoring systems
Hitachi’s own “smart meters,” which measure power use in real time, have already been
installed at most plants for real-time monitoring and data gathering. In regions where electric
power is supplied by TEPCO and Tohoku EPCO, these real-time electric power monitoring
systems will be further expanded, and we will build cloud computing systems using Hitachi’s
EcoAssist-Enterprise, an environmental information management system. These steps will
increase the visibility of power use at the Hitachi Group in those regions and encourage more
efficient management of power consumption.
†1 Green Curtains: When climbing vines are grown in front of windows or on walls, the effects of transpiration and sunlight blocking by
the leaves can reduce room temperatures by 3–5ºC.

6. Hitachi’s Position on Nuclear Power Business
Nuclear power plants are one of the key elements of the social infrastructure, and nuclear
power is a valuable energy source for protecting the global environment, enabling, for example,
reduced CO2 emissions. Recognizing that outside Japan too, several countries are planning to
introduce nuclear power to meet energy demand, we will continue our nuclear power businesswhile giving full consideration to safety. Nuclear power is an essential element of our core Social
Innovation Business, and we will continue to cooperate with those countries around the worldthat need to generate electricity by nuclear power.
We will also reinforce our work on thermal power generation—the current power
generation mainstay—and in natural energies for the future, helping to diversify power sources
and further stabilize the electric power supply.
Material in this section is based on current information as of the end of June 2011. For more details and updates, please refer to the Hitachi
Web site:
http://www.hitachi.com/New/cnews/index.html (News Release: Corporate)
WEB

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VISION

Hitachi’s Management Strategies and CSR
We have integrated management strategies and CSR as partof our goal to transform into a truly global enterprise thatshares society’s values
Corporate CredoWEB

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

Adopted June 1983

Corporate Credo andManagement Plan
The Hitachi Group formulated a Group Vision to
help resolve fundamental issues facing a global
society and to pursue a safer, more comfortablesociety in line with the Corporate Credo whichis Hitachi Founding Spirit. We also created the
Hitachi Group Codes of Conduct, which apply to all
Hitachi Group employees worldwide.
Based on the 2012 Mid-Term Management Plan,produced in ﬁscal 2010, we deployed management
policies to pursue growth through our Social
Innovation Business, to solidify our ﬁnancial
position, and to help resolve global social issues.

2012 Mid-Term Management Plan
Growth driven by Social Innovation Business
Solid financial base
Formulated May 2010

Social Innovation Business Focus
We intend to strengthen our Social Innovation
Business by focusing on global, fusion, andenvironmental issues.

Hitachi Group Vision
We will contribute to the solution of
fundamental global issues, and pursue therealization of a better, more prosperous
global society, in line with Hitachi’sfounding spirit, utilizing the Group’s
knowledge and technology.
Adopted November 2006

Hitachi Group Codes of Conduct
Adopted August 2010
WEB

Management Goals
We intend to generate revenues of 10 trillion yen
and an operating margin of more than 5 percent byﬁscal 2012. We will drive growth through the Social
Innovation Business, which is around 60 percent ofrevenues.
We will reinforce our ﬁnancial position by
improving operating income while steadily
increasing net income to consistently secure
earnings of around 200 billion yen from ﬁscal 2012.
Fiscal 2010
results

Three Focuses of Social Innovation Business
GlobalLeverage the Group’s knowhow, experience, as well as the trust of ourregional customers and partners, to become a truly global enterprise.
FusionAddress every nation’s need for Social Innovation Business by
integrating our social infrastructure and IT expertise to produce uniquevalue.
Environment
Draw on a wide range of environmental technologies andaccumulated experience to build better environmental systems,
helping to resolve global environmental issues.

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

Fiscal 2012 targets¥9,315.8 billion¥10 trillion

4.8%

Over 5%

Net income
attributable to
Hitachi, Ltd.

¥238.8 billion

Consistently generate
at least ¥200 billion*Debt-to-equity
ratio

1.03

0.8 times or below

15.7%

20%

Revenues
Operating income

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

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Three Key Management Policies in the 2012 Mid-Term Management Plan
I. Global Growth Strategies to Harness Hitachi’s Strengths
Fiscal2010 results

Fiscal 2012 targets

Outside Japanrevenue ratio

43%

More than 50%

Percentage of
employees
outside Japan

33%*

36%

* Reflecting HDD business transfer

We will boost revenues from outside Japan tomore than 50 percent of net sales, partly throughemploying more local people.
The prime focus of our global growth strategy
is to localize and expand worldwide. Based on our
New Globalization Plan, we chose 11 key regions

and strengthened the six-part global framework
close to markets to speed up strategies that use
local leadership.
The second focus is to collaborate with partners
for more opportunities, working with government
agencies and other partners, particularly infast-growing emerging nations, to increase
opportunities for Social Innovation Business.
The third focus is to use our strengths tocreate business, employing our technologies andexperience to build environmentally conscious
cities and other next-generation urban areas,suggesting a new lifestyle as a total solution.

II. Focusing Business Resources on the Social Innovation Business
Investments from fiscal 2010 to 2012

¥1,100 billion

Investment¥670 billion

R&D investment

From ﬁscal 2010 through 2012, we will invest over
1,700 billion yen in Social Innovation Business,
up 170 billion yen from our target. We intend to
generate growth as well as medium- and long-term
expansion. From the total, we are allocating 1,100
billion yen to investment, including data center
operations and high-efficiency thermal powersystems, and 670 billion yen to R&D for smart
grids, lithium-ion batteries, and other technologies.

III. Strengthening the Business Structure to Secure Proﬁtability
We will reinforce our business structure and stabilize earnings by pursuing speedy
operational management and by bolstering our financial position

1. Cost-structure reform

3. Global human capital∙ Transform cost structure to be cost competitive globally∙ Conduct companywide project, while strengthening individual
businesses by promoting the in-house company system

2. Reinforce financial position∙ Reduce total assets and improve asset efficiency∙ Reduce interest-bearing debt by pooling funds∙ Talent management to realize Hitachi’s targeted value∙ Rebuild the Hitachi Group’s entire human capital platform

4. Value creation and CSR∙ Create both social and economic value at the same time andcontribute to the creation of a sustainable society

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VISION

Hitachi’s Management Strategies and CSR

Creating a Sustainable Society
For us, CSR means making our Corporate
Credo and Group Vision a reality. We address
the UN Millennium Development Goals of
ending poverty and hunger, universal primaryeducation, combating diseases, and environmental
sustainability with our technologies and solutions.
We create social and enterprise value with socialand management sustainability.
Our 2012 Mid-Term Management Plan will help
us tackle society’s fundamental problems based on
the Social Innovation Business. We will work on
key areas of our main focuses—global, fusion, andenvironment—looking at them from management
and social perspectives, using dialogues withstakeholders, and will reduce risks and improve
management.
Also, we will apply our CSR Policy throughout
the Group, drawing on dialogue and stakeholder

engagement to integrate management and CSR,
and to become a truly global company.

CSR Policy of the Hitachi Group
1. Commitment to Corporate Social Responsibility (CSR)
2. Contribution to Society through Our Business3. Disclosure of Information and Stakeholder Engagement
4. Corporate Ethics and Human Rights
5. Environmental Conservation
6. Corporate Citizenship Activities
7. Working Environment
8. Responsible Partnership with Business Partners
Adopted March 2005
WEB CSR Policy of the Hitachi Group
http://www.hitachi.com/csr/introduction/hitachi-csr/

Hitachi Social Innovation BusinessOur core competency is Social Innovation
Business, which draws on intelligent IT toprovide an advanced social infrastructure. Social
Innovation Businesses include information andtelecommunication systems, power systems,
as well as industrial, transportation and urban
development systems—all combined ﬁelds—

Social Innovation Business
Framework

Information andTelecommunication
Systems∙ Cloud computing∙ Consulting∙ Data centers∙ Storage

supported by materials and key devices. The
ﬁve major business segments, information andtelecommunication systems, power systems, social
and industrial systems, construction machinery,
and high functional materials & components,
together account for around 60 percent ofconsolidated net sales.

Industrial, Transportation and
Urban Development Systems∙ Eco-cities∙ Water treatment∙ Construction machinery∙ Elevators and escalators∙ Green mobility∙ Healthcare
Power Systems∙ Energy (thermal, nuclear,and renewable)∙ Smart grids

Materials and key devices

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VISION

Hitachi’s Management Strategies and CSR

Material Issues for Hitachi

to identify social and environmental issues,
conducting assessments and verifications from theperspectives of stakeholder materiality and theimpact on management. We report on these key
issues in the Sustainability Report Digest.

Hitachi includes the participation of stakeholders
in the decision-making process for CSR activities.
We engage in stakeholder dialogue worldwide

1. Products That Create a Sustainable
Society (Sustainable Business)

4. Respect for Human Rights
As a global enterprise, we face risks because we operate under
different national laws, cultures and business practices. We respect
the laws and ordinances of every country, and we act with respect forinternational norms to prevent human rights violations.

Developing innovative technologies and products is vital to growing
our business and realizing a sustainable society. We are developing
products that both lower environmental burden and improve thequality of life so that we can contribute to a prosperous, safe, andsecure society.

5. Supply Chain Management

2. Protecting the Environment

Supply chain risks are gradually increasing with the globalizationof business, especially for the environment and human rights. We
openly share our procurement policies with suppliers, and we reduce
supply chain risk through ongoing surveys of CSR practices with our
suppliers.

We feel that we can help protect the environment by reducing theenvironmental burden of products throughout their life cycles. We
have created our Environmental Vision with three pillars: preventionof global warming, conservation of resources, and preservation of
ecosystems. Under this vision, we provide environmentally conscious
products and services by reducing the environmental burden fromoperations and improving their energy efficiency.

6. Diversity Management
We believe that diversity is much more than the human rights issueof gender equality. It is a fundamental challenge for sustainable
management, generating synergies beyond the Hitachi Group,business ﬁelds, and globalization. We therefore have initiatedworldwide programs that maintain personnel systems while
respecting diversity, by improving workplace environments, and bycultivating human capital that can accelerate the globalization of
Hitachi and contribute to market-based sustainability needs .

3. Public Policy Initiatives
Our Social Innovation Business is subject to the policies of national
governments, therefore we assess policy trends while engaging
in dialogue with stakeholders who inﬂuence public policy andregulations. As a result, we can propose technologies and solutions
that both beneﬁt society and contribute to better policies.
Material Issues for Hitachi

3. Public policy initiatives
1. Products that deliver
sustainable society(Sustainable business)
6. Diversity management
4. Respect for human rights

Importance for stakeholders

5. Supply chain management

2. a. Environmental burden
reductions from operations

2. b. Making energy-efficient
products

Inﬂuence on businessSelection Process for Material Issues
We evaluate and verify issues identiﬁed through stakeholder dialogue with international organizations, and we identify sustainability issues in public policy trends fromthe standpoints of importance for stakeholders and the inﬂuence on business. The importance for stakeholders includes human rights, international development, theenvironment, reporting, ethics, and regional and international requirements. The inﬂuence on business includes the global, fusion, and environmental focuses of our2012 Mid-Term Management Plan, as well as the perspectives of innovation, risk, reputation, and cost effectiveness. The digest of this report presents these important
issues in the two assessment areas.

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F E A T U R E

Next-Generation Smart Cities by Hitachi
We offer comprehensive solutions combining social infrastructure systems
for energy, transportation, and water with Intelligent IT to build nextgeneration cities—safe, convenient, comfortable living spaces that areenvironmentally conscious and address issues such as an aging society
unities

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Using information
technology to link energy,transportation, and water

EnergyTransportation
New Cities That the World Desires
Since we entered the 21st century, such issues
as global warming, resource depletion, urban
crowding, economic disparities, and aging
have come to the fore. The common need of allnations is to resolve these issues to ensure social
sustainability. In cities around the world, people
want their cities to overcome all these challenges.

Hitachi’s Vision for Next-Generation
Smart Cities
In April 2010, Hitachi established the Smart City
Business Management Division for proposing new

cities that will be comfortable and environmentallyconscious. These cities would mainly be in
emerging economies that are continuing to invest
heavily in infrastructure. Hitachi designs cities
with a vision giving consideration to lifestyles
and values. These cities would efficiently andstably supply electricity and sewage systems aswell as provide and treat water, enabling balanced
demand and supply. They would also deliver safe,
convenient, and energy-saving transportation,
advanced medicine and education, and government
services. All these services would be part of acomprehensive social infrastructure package that

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019

Parks abundanwater and gre t with
enery

Cities would begreen and carefor theirwater resources.
They would purifywater discharged
from householdsand factories, collecting rainwater
and recycling it
for park founta
ins andgreenery.

24/7

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ealth
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daily nd monit.Toacces elemedici rs would cneshPeop to speciali would p eck health
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Data Center

Water

is linked and managed by safe, high-capacity
information and telecommunications systems using
cloud technology and eco-conscious data centers.
Hitachi’s vision for next-generation smart cities:
ensuring comfortable living spaces while reducing
the environmental burden. Cities would grow anddevelop sustainably and be distinctively attractive
for citizens.

Drawing on Our Expertise in Social
Infrastructure to Build Next-Generation
CitiesTo support lifestyles, Hitachi has long been

an innovator of such social infrastructure
systems as energy, transportation, water, andtelecommunications. We believe our mission is tobring to the world our Corporate Credo: “contributeto society through the development of superior,original technology and products.”
We propose solutions that link infrastructuralcomponents by integrating social infrastructure
systems with IT and telecommunications. The
Hitachi Group contributes to create a sustainable
society by building next-generation smart cities
that maintain an effective relationship between
people and the earth.

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F E A T U R E

Next-Generation Smart Cities by Hitachi

Urban Planning for Tianjin Eco-City
Hitachi is helping to construct Sino-Singapore Tianjin Eco-City,a joint project between the Chinese and Singaporean governments,
by providing smart grid technologies and solutions

Hitachi’s Involvement in Tianjin Eco-City· Providing advanced energy and mobility technologies
required for eco-conscious cities and supplying
information control platform solutions.
· Helping construct the Eco Central Business District.
· Participating in the Eco-City New Electric Vehicle Alliance.
· Deploying our home energy management systems forhigh-rise residential buildings under construction.

pond on the outskirts of Tianjin.
The new city will use 26 KPIs to minimize theenvironmental burden of housing, energy, andtransportation. As well, it will recycle resources,
including renewable energy for 20 percent of totalenergy, make all tap water 100 percent drinkable,
and recycle 60 percent of waste. The city will have
90 percent green transportation and 100 percent
green buildings.

Harnessing Our Smart City Businessto Participate in an Eco-Conscious
Urban Development that Has Captured
Worldwide Attention

Leveraging Our Expertise from
Tianjin Eco-City to Contribute toEnvironmentally Conscious Urban
Planning in China

We are capitalizing on our global smart city
expertise to participate in China’s Sino-Singapore
Tianjin Eco-City Project, an initiative capturing
worldwide attention.
Sino-Singapore Tianjin Eco-City is a large
model eco-city that is a joint venture between
Sino-Singapore Tianjin Eco-City Investment andDevelopment Co., Ltd. (SSTEC), and the Chineseand Singaporean governments. The goal is to build
a city of 350,000 with 110,000 houses by around2020 on a 30-square-kilometer salt evaporation

The project heads of Sino-Singapore Tianjin EcoCity want energy-saving technologies, new energy
and storage battery technologies, and information
control platforms from Japanese companies. In
May 2010, Hitachi and SSTEC agreed to evaluate
and use Hitachi’s technologies and solutions. We
intend to help develop environmentally conscious
cities by setting up a smart city R&D center in
Sino-Singapore Tianjin Eco-City to create advanced
solutions for further progress in this ﬁeld in China.
Speciﬁcally, we will help build the Eco Central

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VOICES
Beijing
Tianjin

Solid Collaboration in Low Environmental
Burden Urban Development

Tianjin BinhaiInternational
AirportSino-Singapore
Tianjin Eco-City
Bohai BayBusiness District that minimizes CO2 emissions andenhances worker convenience. Our wide-ranging
business contributions include solar power andother new energy technologies and solutions;efficient community, building, and home energy
management systems; and charging systems
for electric vehicles, as part of the Eco-City New
Energy Vehicle Alliance. We also will collaborate onbuilding data centers and other IT infrastructure.
The smart city business is pivotal to our Social
Innovation Business. Through our involvement in
Sino-Singapore Tianjin Eco-City, we will contributeto lower environmental burden urban development
in China, reinforcing the development of our own
smart city business.

Lim Kingboon
General Manager,
Economic Promotion,
Sino-Singapore Tianjin
Eco-City Investment andDevelopment Co., Ltd.
(SSTEC)SSTEC and Hitachi have cooperated sincesigning an agreement in May 2010 to develop
Sino-Singapore Tianjin Eco-City. Hitachi isunique, offering all parts of information
control and IT, including products andsolutions. This is China’s ﬁrst large urban
development that cuts environmental burden
by conserving and recycling. We plan to try
many new ideas, and believe that Hitachi’s
expertise will be essential. I look for Hitachi toshowcase itself at this city, and I hope to build
stronger ties in the years ahead.

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Next-Generation Smart Cities by Hitachi

Hitachi Projects Extending around the World
We have undertaken feasibility studies and experiments worldwide for building nextgeneration cities as part of our Social Innovation Business. We have also started projects inhealth care—essential in an aging Japan.
Supplying Charging Management Systems
for Rental Electric Vehicles in Japan
Providing Infrastructure to Aid in the Spread of Electric
Vehicles in Okinawa
Yokohama Smart City Project

The Advanced Energy Company (AEC) adopted Hitachi’s
electric vehicle (EV) charging system as part of Okinawa
Prefecture’s plan to install a rapid and medium-speed
charger infrastructure for EVs rented to tourists. That
program began in February 2011.
Hitachi’s solution is a system that processes
information and monitors user authentication, fees, andpayments for chargers in tourist and commercial areas.
AEC plans to install 50 rental EV charging stations on
Okinawa’s main island by 2014. The company intends
to eventually set up stations throughout the main island
so residents can use rental cars once they have ﬁnishedservice. We will therefore continue to provide ourcharging management solution.
Kanagawa Prefecture chose our energy management
system for recharging electric vehicles for the Yokohama
Smart City Project, and we are pushing ahead with otherexperiments.

Charger for rental electric vehicles in Okinawa

Storage battery from HitachiGroup company Shin-Kobe
Electric Machinery Co., Ltd.,
that was adopted for the
Yokohama Smart City ProjectContributing to the Development ofa Low-Carbon Economy by Building a
Low-Carbon Metropolis in China

Verifying Environmentally
Conscious Package
Infrastructure

Building Guangzhou Knowledge City
Dalian Eco-Science and Technology City

Hitachi is the ﬁrst Japanese company to participate inGuangzhou Knowledge City, a next-generation city
being built by the governments of Guangdong Provinceand Singapore. When completed in 2030, the city—on
123 square kilometers outside Guangzhou—will housearound 500,000.
For this city, we launched a development centerand are conducting a feasibility study for energy
management, renewable energy, IT platforms, andnext-generation transportation.
Hitachi is also collaborating with the city of Dalian on
smart grids, water treatment, and appliance recycling.
We will supply technologies, products, and solutions.

Helping Set Up a Low-Carbon, Environmentally
Conscious Infrastructure for India

Delhi-Mumbai Industrial Corridor, a joint
Japan-India project, is a 1,500 km highspeed freight line between New Delhi,
India’s capital, and Mumbai, its largest city,with industrial sites, roads, ports, and otherinfrastructure over 300 km from south tonorth. In Dahej in Gujarat, a petrochemicalzone, we made a study for a smart
community in 2010. In 2011, Japan’s METI
commissioned us to explore a low-carbon
infrastructure there. We will help create
the infrastructures for urban and regional
communities.

Hitachi Group Sustainability Report 2011
http://www.hitachi.com/csr/023

Natural Energy Control Technologies in Smart
Housing in Japan
Smart Grid Experiment in Rokkasho Village

In September 2010, we jointly launched Japan’s ﬁrst smart
grid in Rokkasho, Aomori Prefecture, a project for wind,solar, and other energy, with our partners, Japan Wind
Development, Toyota Motor Corporation, and PanasonicElectric Works. We are testing energy applications between
users and suppliers with energy storage equipment andmanagement. For wind and solar, as well as smart meters
for electricity generation and consumption in houses, we
provide the demand and supply controls, including HUB
batteries. We also monitor EcoCute water heaters andensure efficiency of surplus electricity from solar power.

Rokkashomura-Futamata Wind Power Station

Participating in a Consortium: Industry, Academia,
and Government in Urban Planning for a Graying Society in
Japan
Health & Vitality Urban Development Project in Hitachinaka
Gerontology Consortium, the University of Tokyo Industry-Academia Collaboration*

Hitachinaka Hospital, the focus of the
Health & Vitality Development Project

Believing that next-generation cities should be safe, secure and foster
physical and mental health, we participate in graying society projects.
We collaborate on the Health & Vitality project in a company hospitalin Hitachinaka, Ibaraki. In the Gerontology Consortium, we propose
solutions and roadmaps, together with various member companies,
toward realizing an ideal graying society. We will continue helping withrural and urban revitalization through industry-academia-government
collaboration, contributing with the realization of next-generation cities
for a graying society.
*This initiative continued from June 2011 as the University of Tokyo Industry-Academia Collaboration
Gerontology Network

Improving Water Environments with Intelligent
Water Systems
Water and Sewage Management in the Maldives
Waste Water Recycling in Dubai

Building a water and sewage management facility in theMaldives

Since June 2010, the Water Environment Solution Division
has provided “intelligent” water solutions—cycling water
more efficiently with improved processing, information
control and energy conservation. In the Republic of
Maldives, we digitalized water distribution information,
downsized puriﬁcation plants and streamlined water andsewage systems. In Dubai, the UAE, our advanced waste
water treatment helps with water shortages by recycling
water and desalinating seawater as well as treating ballast
water to preserve the environment. With “intelligent” water
systems, we are increasing water cycle efficiency.

Hitachi Group Sustainability Report 2011
http://www.hitachi.com/csr/

024

Third-party Expert Opinions
The number of companies integrating sustainability in their business strategy is growing every
year, underlying the importance of non-financial aspects in increasing the value of a company.
Considering sustainability aspects in corporate strategy is perceived to have a positive impact onlong-term value generation, innovation capability, operational efficiency, and reputation throughthe better management of stakeholders’ expectations. Companies are required to demonstrate
a superior ability in managing sustainability issues and communicating transparently to theirstakeholders.

For companies of Hitachi’s size, stakeholders’expectations are high: through its operations, thecompany has the ability to shape business, society,and the environment. For that reason, broad andtransparent public communication is paramount.
Besides extensive reporting on key environmental
and social performance indicators, qualitative
aspects and materiality analysis also deserve acentral role in Hitachi’s reporting. Showing progresson targets set is considered best practice. Notable isthe section devoted to innovation and intellectual
property management, a ﬁeld where companies tend
to be reluctant in disclosing details to stakeholders.
Hitachi’s Sustainability Report is therefore very
complete from an international standpoint.

the strategic company focus on social innovation,
more indicators, targets and achievement are
expected to be reported in the future.
What stands out in the 2011 Report is the clear
description of how corporate social responsibility is
integrated into the company’s management strategy
and vision. Sustainability analysis, besides being
an important pillar for the deﬁnition of the key
corporate policies and medium-term targets, is also
used to ascertain the materiality for stakeholdersof the many environmental and social issues
that Hitachi faces. Regular communication withstakeholders on themes related to sustainability
enables Hitachi to further reﬁne the business strategy
around its social innovation core competency.

The environmental reporting section discusses
the direct environmental impact of the company’s
own operations and the indirect environmental
impact of its products and services. Hitachi
addresses both aspects extensively by describing
its approach, formulating targets, and presenting
achievements and examples for different productgroups. Noteworthy is the comprehensive productlifecycle approach Hitachi uses for evaluating theenvironmental performance of its products.
In the social section of Hitachi’s Sustainability
Report, material challenges impacting employees,
communities and supply chains, are seriously
discussed, supported by numerical evidence andtargets. For a global company like Hitachi, themanagement of diversity and community impact
deserves special attention. The report covers aspects
such as diversity development, human rights, andsupply chains, providing sufficient data. Considering

Jvan Gaffuri
Senior Manager Sustainability Services
SAM Research AG

Hitachi Group Sustainability Report 2011
http://www.hitachi.com/csr/025

Management
ReportManagement Report

MESSAGE

Globally Reinforce Group Governance toCultivate Highly Transparent CSR Management

From a global perspective, CSR has progressed dramaticallyin recent years, in part because of the trend that CSR is core
to management and strategy, but also because of a newinternational standard (ISO 26000), which is a newly signed
international social responsibility agreement. We havealso seen vigorous debate, particularly in Europe and theUnited States, over corporate transparency, especially on
disclosure obligations related to corporate governance, theenvironment, and social issues.
All Hitachi Group companies have traditionally grown
their businesses independently, in line with a spirit of respectfor management independence and innovation originality.
However, today when we generate more than 40 percent ofour business outside Japan, it’s not enough to comply withother countries’ business practices, laws, and regulations.
We need to extensively and continually communicate on
sustainable corporate strategies, business operations andcompliance based on leading international concepts, customs
and trends.
These considerations prompted us to create the HitachiGroup Codes of Conduct in ﬁscal 2010. This document
codiﬁes our corporate philosophy, the Hitachi Founding
Spirit, and respect for human rights and so on. We sharedthese codes with Group companies globally by translating it
into 17 languages. We will establish a global framework ofsix regions—the Americas, Europe, India, Southeast Asia andChina, complementing Japan—to reinforce local governanceby giving them regional corporate responsibilities. To
respond swiftly to social demands and expectations, we will
implement highly transparent CSR management by engaging
regularly with our stakeholders.
Through our Social Innovation Business, we aim to solve
fundamental global issues and contribute to social andenvironmental progress that creates a sustainable society.
Moreover, we will respond to market-based sustainability
challenges by collaborating with local communities andpursuing activities tailored to their particular circumstances inorder to help them resolve their sustainability challenges.

Hitachi Group Sustainability Report 2011
http://www.hitachi.com/csr/

Toshiaki Kuzuoka,
Senior Vice President and Executive Officer
in charge of Human Capital,
Government & External Relations andCorporate Auditing
Hitachi, Ltd.

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Environmental ReportManagement ReportSocial Report

Corporate GovernanceCorporate GovernanceBy enhancing corporate governance, theHitachi Group is promoting speedier, more
efficient management and is meeting the
expectations of stakeholders as a business thatmerits the public’s trust.

Strengthening Governance
Hitachi operates under a committee system.†1 We
have strictly separated business supervision andexecution to establish a business structure forspeedy, highly transparent management. We task
outside directors to draw on their knowledge,
experience, and independent perspective whensupervising executives and other senior managers
to reinforce the role of the Board of Directors. We
formulated the Hitachi Group Codes of Conduct todevelop common values for all Group members andto enable us to share among all Group companies
a common understanding of our corporate social
responsibility.
Governance Structure of Hitachi, Ltd.
General Meeting of Shareholders

Compensation for directors and executive
officers consists of monthly salaries together
with year-end allowances for directors andperformance-based bonuses for executive officers.
While compensation for directors is generally
ﬁxed, performance-based bonuses for executive
officers are set at around 30 percent of annualcompensation. Bonuses are determined individuallyaccording to business performance and theoutcome of work carried out under the officers’
management.
Beginning with compensation for ﬁscal 2008,
the scheme for directors and executive officers wasrevised to eliminate retirement allowances. In ﬁscal
2010, executives were compensated as follows:
FY 2010 Compensation
Salaries and year-end allowances or
performance-based bonuses
Category
Recipients(number)

Total amount(millions of yen)

Directors(outside directors)

12
(5)

231
(99)

Executive officers

28

1,586

Total

40

1,817

Election
Board of Directors(13 members, including 4 from outside)

Audit Committee Compensation Committee
Nominating Committee(4 members, including (3 members, including (4 members, including
3 from outside)
2 from outside)
3 from outside)
Election* The number of directors indicated doesn’t include three serving concurrently as
executive officers.
* Compensation to directors includes the monthly salaries, from April 2010 to
the time of retirement, of three directors who retired upon the expiration of
their terms, effective as of the close of the 141st Ordinary General Meeting of
Shareholders on June 29, 2010.
* We additionally provided ¥3 million in retirement allowances to two outside
directors who retired on June 24, 2011, and ¥313 million in retirement
allowances to seven executive officers who retired on March 31, 2011.

Supervision

Executive Officers: Timely execution of company business

Internal Control†1 Committee system: A corporate governance system where a board of
directors makes basic policy decisions and oversees the execution of businessby executive officers, while the executive officers, appointed by the board of
directors, execute the company’s business affairs.

Compensation
Compensation for every director and executive
officer is set by the Compensation Committee
based on the Japanese corporate law governingcompanies with committees.

As a public company listed on the New York Stock
Exchange, Hitachi, Ltd. is registered with the U.S.
Securities and Exchange Commission and is subject
to the Sarbanes-Oxley Act (SOX†1). A comparable
assessment and report on internal control overﬁnancial reporting (J-SOX†2) came into effect inJapan at the beginning of ﬁscal 2008. Accordingly,
the Hitachi Group as a whole and all listed Group
companies now evaluate internal control systems

Hitachi Group Sustainability Report 2011
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Management Report

Environmental ReportSocial Report

Corporate Governanceand report the results on a consolidated basis.
The Hitachi Group is committed to fullcompliance with these and other applicable laws
and regulations. Beyond that, we consider it animportant social responsibility to thoroughly
implement our internal control systems, to improve
the transparency and credibility of our businesses,
and to strengthen our management structure
by clarifying, examining, and visualizing ourmanagement and operational frameworks.
As a conglomerate of many companies, we haveadopted a framework that assigns accountability
at the Group level, including responsibilities forthe design and operation of internal controls.
Therefore, all Hitachi Group companies are required
to revise, document, and evaluate the effectivenessof their operations in line with guidelines
determined by speciﬁc levels of corporate scale
and business content. Management assessment ofeach company is collected at the Group level, and isreported to Hitachi, Ltd. along with certiﬁcations.
†1 SOX: Section 404 of this act, enacted in July 2002, mandates company
management with the responsibility of establishing, maintaining, andevaluating internal control over ﬁnancial reporting, and requires that control
be assessed by independent auditors.
†2 J-SOX: A framework for evaluating and reporting internal control overﬁnancial reporting under the Japanese Financial Products Transaction Law.
It came into effect since April 2008 with the promulgation of the Financial
Instruments and Exchange Law in June 2006.

Group Management
Hitachi, Ltd. optimized the management structure
and instituted an in-house company system in
October 2009 to ensure swift management action
and to become more competitive by restructuring,particularly in the Social Innovation Businesses.
These eight in-house companies (businesses) arePower Systems, Rail Systems, Industrial & Social
Infrastructure Systems, Urban Planning andDevelopment Systems, Information & Control
Systems, Information & Telecommunication
Systems, Defense Systems, and Battery Systems.
From ﬁscal 2011, we rated each company andtransferred authority to them so that they could
speedily pursue independent management. We
base the ratings of each company on such factors
as FIV,†1 operating proﬁt, and cash ﬂow, reﬂecting
these ratings in compensation evaluations forcompany management teams.
The Group Strategy Committee deliberates onGroup-wide management measures to optimize
overall Group strategies and management
resources.
†1 FIV (Future Inspiration Value): Hitachi’s economic value-added evaluationindex, in which the cost of capital is deducted from after-tax operating income.

Hitachi Internal Control Assessment Framework

SEC*1

Management
assessment report

ReportAudit Committee
ReportReportInternal Control Committee

Internal Control Committee Office

Monitoring
reportMonitoring
reportInternal Auditing
OfficeMonitoring

Monitoring

Independent auditors

Financial
Services
AgencyBoard of Directors

Hitachi, Ltd. President and CFO*2

Certiﬁcation, management
assessment report
Hitachi Group HQs(Hitachi Group HQs and In-House
Companies of Hitachi, Ltd.)

Hitachi Groupsubsidiaries*1 SEC: Securities and Exchange Commission *2 CFO: Chief Financial Officer

Hitachi Group Sustainability Report 2011
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Environmental ReportManagement ReportSocial Report

CSR Management

CSR Management
We strive to live up to our Corporate Credo
of contributing to society through thedevelopment of superior, original technology
and products. We are also mindful of our vision
to contribute to the solution of fundamental
global issues and to pursue the realization ofa better, more prosperous global society. We
intend to become a truly global entity thatshares its values with society by integrating
CSR into management and operation strategies.

CSR Management Structure
To promote CSR, Hitachi executive officers incharge of corporate divisions on the CSR Promotion
Committee discuss Group-wide CSR issues andpolicies. The committee develops speciﬁc global
initiatives with the CSR Promotion Team of the
CSR-related departments within Hitachi, Ltd. andCSR promotion officers at regional headquarters
outside Japan. Hitachi, Ltd. and Group company
CSR promotion officers meet regularly to discuss
issues that need attention and to follow a common
direction.
To meet our responsibilities as a global
enterprise, we take on sustainable activities for theentire Group by using two management systems.

One is the jointly developed CSR Self-Assessment
Tool, which we use to improve Group-wide activities
and to clarify the issues that we face as a global
entity, and the other is the materiality process. By
engaging in dialogue with global stakeholders,
we proactively integrate global social issues withinmanagement to create sustainable management
and social programs. Management issues identiﬁed
through these processes are presented to anddiscussed at the CSR Promotion Committee on asemiannual basis to investigate and decide on new
initiatives for the upcoming ﬁscal year.

The Five-Year CSR Roadmap
We marked the centennial of Hitachi, Ltd. in ﬁscal
2010 by creating the Five-Year CSR Roadmap,
a medium-term plan for CSR. The goal is tocoordinate this initiative with the medium-term
management plan, or corporate strategy, tobecome a truly global enterprise. Using thisroadmap, we have reinforced the foundation ofGroup-wide operations, quantitatively measured
CSR activities, and improved corporate transparency
to demonstrate leadership in resolving global
challenges and opportunities confronting society.
Based on this roadmap, CSR promotion

Structure of Hitachi Group CSR Promotion
President

SeniorExecutive
Committee

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

CSR Division
CSR Promotion
Department(Secretariat)

CSR Promotion Team:Group Management, Corporate
Brand Management, Customer
Satisfaction, Overseas Operations,
Employee Relations & Human
Resources, Legal Affairs, Corporate
Citizenship, Environmental
Conservation, Compliance, Quality
Assurance, Procurement, Public
Relations, Research and Development,
Government and External Relations

Hitachi Group Sustainability Report 2011
http://www.hitachi.com/csr/

In-house companies
Presidents
CSR promotion officers

Production
facilities

Affiliated companies
Presidents
CSR promotion officers

Affiliatedcompanies

Regional headquarters
outside Japan
Regional executives
CSR promotion officers
Hitachi, Ltd. and 913 consolidated subsidiaries(in total 914), and 164 companies that use theequity method030

Environmental ReportManagement ReportSocial Report

CSR Management

Five-Year CSR Roadmap

Demonstrate leadership as asocial innovation enterprise

Collaborate with key stakeholders to resolve global social issues

Becoming atruly global
corporation,
realizing
One Hitachi

Integrate management strategies with CSR and instill CSR principles in operations

Reinforce Group governance and globalize operations and activities

April 2010

April 2011

April 2012team at Hitachi, Ltd. and our overseas regional
headquarters outside Japan have created actionplans and set assessment targets to make CSR
programs more effective (see pages 032 and 033).

April 2013

FY 2010 Self-Assessment Results (Hitachi, Ltd.)

Policy 8
74.0%
70.0%
64.0%

CSR Self-Assessment Tool
In ﬁscal 2008, Hitachi, Ltd. and Group companies
jointly developed the Hitachi Group CSR SelfAssessment Tool, which benchmarks our companies
against other leading global companies. The goal
is to tackle issues and clarify initiatives based on
our policies for pursuing CSR and continuously
improving performance.
Including Hitachi, Ltd., 35 Group companies—23
in Japan and 11 in North America and Asia—
employ this tool, which has been translated into
English and Chinese.
Results of Fiscal 2010 Self-Assessment
Hitachi’s scores in ﬁscal 2010 were higher thana year earlier, including those for commitment
to CSR, corporate ethics and human rights, andthe working environment. The prime reasons forthis success are holding CSR courses for Group
company directors, the Hitachi Group Codes ofConduct, wider implementation of e-learning, andthe creation and publication of the Hitachi Group
Health and Safety Policy. In ﬁscal 2011, we plan
to review these evaluation items, using ISO 26000
standards, to attain even higher global results.

Policy 1
73.6%
72.6%
69.5%
100

Policy 2
73.1%
71.5%
71.5%

50

Policy 7
89.7%
87.6%
83.4%

Policy 3
76.0%
74.2%
74.2%

0

Policy 6
83.5%
83.5%
83.5%

Policy 5
74.0%
74.0%
74.0%

Policy 4
81.8%
78.2%
67.3%
FY 2010
FY 2009
FY 2008

Main Topics Covered in Each Policy of
the CSR Self-Assessment Tool
Policy 1: Commitment to Corporate Social Responsibility (CSR)
CSR vision; CSR education; risk management
Policy 2: Contribution to Society through Our Business
Coordination with business strategies; sustainable designs;
customer satisfaction
Policy 3: Disclosure of Information and Stakeholder Engagement
Information disclosure; dialogue with stakeholders
Policy 4: Corporate Ethics and Human Rights
Corporate governance structure; awareness of ethics; compliance;
human rights
Policy 5: Environmental Conservation
Carbon management strategies; resource recycling;
ecosystem conservation
Policy 6: Corporate Citizenship Activities
Strategic social contribution; participation in local communities;
social enlightenment
Policy 7: Working Environment
Respecting diversity; fulﬁlling work environments; work-life balance
Policy 8: Responsible Partnership with Business Partners
CSR procurement; communication with suppliers

Hitachi Group Sustainability Report 2011
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April 2014031

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CSR Management

FY 2010 Results and FY 2011 Plans
CSR Policy of the
Hitachi Group

Hitachi Group Activities
in FY 2010

1. Commitment to
Corporate Social
Responsibility∙ Increase the number ofcompanies worldwide using
the Hitachi Group CSR SelfAssessment Tool

∙ Twenty-four companies within Japan and 11
outside Japan used our CSR Self-Assessment
Tool

p. 031∙ Strengthen the risk
management system∙ Expanded risk assessments to cover allcompanies, Group companies, and researchlaboratories to consolidate and collectively
assess risk

p. 034∙ Implement CSR-oriented
business assessments andreﬂect the results in businessstrategy, operations, and/or
management issues∙ Conducted third-party assessments ofbusiness areas in 22 countries where we
can resolve social issues and where wecan make the greatest contribution, andincorporated these results into business andcommunication strategies

pp. 046–048∙ Continue to implement process
improvement for businessdivisions prioritized by theneed for quality improvement
and to reinforce OCHIBOHIROI*1 activities∙ Launched the Hitachi Group QF (Quality
First) Innovation Movement and continued
to improve processes for priority businessdivisions and OCHIBO HIROI∙ Held quality assurance (QA) managers’
conferences in China and Thailand

pp. 093–094∙ Improve our responses to Web
inquiries worldwide∙ Expand access to andenhance the Web Inquiry
Responsiveness Improvement
Course∙ Produced a global network improvement
plan based on inquiries∙ 176 Hitachi Group employees took the
Web Inquiry Responsiveness Improvement
Coursep. 095∙ Engage in stakeholder
dialogues globally∙ Conducted dialogues in Asia, the Americas,
and Europe about Hitachi’s solutions forregional social issues

pp. 099–100∙ Strengthen internaldissemination of CSR
information∙ Held CSR training courses for Group
company directors

p. 031∙ Expand global human rights
initiatives∙ Produced educational materials covering
global human rights issues∙ Held human rights discussions withstakeholders in Europe

pp. 116–118∙ Continue to hold Hitachi Group
Corporate Ethics Month every
October∙ Implemented annual Corporate Ethics
Month in October∙ Formulated Hitachi Group Codes of Conduct
and translated it into 17 languages∙ Used e-learning tools to broadly publish thecodes

pp. 036–037∙ Raise compliance awareness
relating to operations outside
Japan∙ Held a brieﬁng by legal and complianceofficers, including those from regional
headquarters outside Japan, on measures
to prevent corruption

p. 037∙ Reduce CO2 emissions from
Hitachi products (target for the
year: 14 million tonnes)∙ Helped reduce CO2 emissions by 15.51
million tonnes

pp. 051–053

2. Contribution toSociety through Our
Business

3. Disclosureof Informationand Stakeholder
Engagement

4. Corporate Ethics
and Human Rights

5. Environmental
Conservation

Results in FY 2010

Hitachi Group Sustainability Report 2011
http://www.hitachi.com/csr/

Achievement
level

032

Page(s)

FY 2011 Goals/Plans∙ Review CSR Self-Assessment
Tool based on ISO 26000 andother standards, and developthese for the entire Group∙ Build a comprehensive risk
assessment structure and PDCA
techniques∙ Hold stakeholder dialogues
based on business materiality
and cultivate business
opportunities from theperspective of CSR∙ Continue implementing HitachiGroup QF Innovation Movement
and assess the results∙ Complete work on global
network for Web inquiry
responses∙ Continue to hold stakeholder
dialogues worldwide∙ Participate in international
debate on sustainability, andexpress our views∙ Promote human rights globallyand collaborate with nongovernmental and otherorganizations working in thisarea
∙ Publish and distribute HitachiGroup Codes of Conduct
Handbook∙ Produce English and Chineseversions of e-learning toolson the Hitachi Group Codes ofConduct∙ Continue educating andauditing regional headquarters
outside Japan∙ Reduce CO2 emissions from
Hitachi products

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CSR Management

6. Corporate
Citizenship Activities

7. Working
Environment

8. Responsible
Partnerships with
Business Partners∙ Deploy programs where
employees contributeto society, focusing on
biodiversity∙ Implemented programs involving volunteers,
including those preserving endangered
species, an afforestation tour to China’s
Horqin Desert, and conservation initiatives
for satoyama (woodlands)

pp. 108–109∙ Implement social contribution
programs in emerging
countries and markets to meettheir social needs∙ Undertake training programs for young
South African and Indian engineers

p. 105∙ Undertake social contribution
programs covering theenvironment, energy, andother areas∙ Implemented educational support programson the environment for children in China∙ Held forums in Singapore and the United
Kingdom on the environment and energy

p. 100

Promote the diversity of humanresources and work styles∙ Promotion of more female
executives and managers∙ Encourage employment of
more people with disabilities
within the Hitachi Group∙ Produced plan for appointing female
executives at in-house companies∙ Hitachi Europe produced e-learningmaterials in four languages

p. 123∙ Implemented WLB (Work-Life Balance) -Up
Month to help people balance their workwith their lives

pp. 123–124∙ Held four study sessions on employing
people with disabilities within the HitachiGroup∙ Hired six people as part of the Japan’s
Ministry of Health, Labour and Welfare’smodel business program to promote hiring
the mentally disabled

p. 129∙ Rebuild supply chain fromglobal perspective∙ In addition to creating the Global
Procurement Promotion Department, we
improved our worldwide procurement
network in several ways, including setting
up a procurement unit in Brazil

p. 119∙ Support voluntary
environmental management
initiatives by suppliers throughthe New MMM Club*2∙ Launched the New MMM Club, andexchanged information on environmental
regulations and outstanding environmental
case studies at suppliersp. 121

p. 126

Achieved
Partially achieved*1 OCHIBO HIROI (gleaning) is Hitachi’s program for adopting the customer’s

perspective when reﬂecting on past accidents and working to prevent
recurrences.
*2 The New MMM Club is an organization run primarily by suppliers who haveacquired environmental certiﬁcation through Hitachi’s activities to support
their environmental programs. Mottainai, which means regrettable waste inJapanese, is now an international environmental term. The three Ms comefrom the ﬁrst letter of the word mottainai.

Hitachi Group Sustainability Report 2011
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033∙ Set up and published mediumterm themes to Groupbusinesses globally∙ Improve disclosure of external
information∙ Continue to implement social
contribution programs on theenvironment, energy, and otherareas∙ Follow up once a year on
progress with the hiring plansof each company∙ Establish balanced working
styles by continuing to
implement WLB-Up Month∙ Strictly comply with legal
employment rate for disabled
people at all Hitachi Group
companies in Japan∙ Plan monitoring suppliers
globally∙ Continue to convey useful
information for suppliers’
environmental management

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Risk Management

Risk Management
Reducing the frequency and impact of risks
globally by strengthening policies andprograms to meet the goals of the 2012 MidTerm Management Plan.

Responding to the Great East Japan
Earthquake
A massive earthquake, followed by a devastatingtsunami, hit Japan’s Tohoku region and the
Paciﬁc coast on March 11, 2011. We responded
by immediately setting up the Emergency
Headquarters for Response to Large-Scale
Earthquakes to conﬁrm the safety of all employees
and their families, while assessing the damage.
Some facilities were heavily damaged, particularly
some in Ibaraki and Fukushima prefectures.
In response, we broadened the emergency
headquarters’ role and established the HitachiGroup Headquarters for Post-Earthquake
Reconstruction and Redevelopment, headed by
the president, on March 23, which functions as a“control tower,” combining information on damage
with assistance requests. The headquarters isdriving the concerted Group initiative to optimize
support and restoration (see pages 010–014).

Reinforcing the Risk Management
SystemWe manage the business and operational risksof every division with internal audits. The entire
Group is reinforcing management systems toaddress increasingly global and complex risks. In
ﬁscal 2009, we audited the risks of Hitachi, Ltd.
Group corporate divisions and those at regional
headquarters outside Japan (in the Americas,
Europe, China and elsewhere in Asia). In ﬁscal 2010,
we expanded auditing to all in-house companies,
Group companies, and research institutes toassess risks that could undermine Group-wide
credibility and business sustainability. Such risks
include environmental and reputation risks, aswell as emerging human rights issues that include

employee diversity and poor working conditions inthe supply chain. Other risks are more traditional,
such as natural disasters, the market environment,
and raw material prices.
We will reinforce our risk management
framework by improving our assessment standards,
by analyzing and evaluating accumulated risk
information in greater detail, and by evaluating
responses at the management level. In addition, we
will improve risk awareness among all employees,
especially through information sharing, educationand training.

Business Continuity Plans (BCPs)†1
To guard against risks, and being deeplycommitted to the social infrastructure, we areenhancing our BCPs to minimize the impact onsociety of any interruption to business operations.
Since December 2006, the Hitachi Group has
disseminated the Guidelines for Formulation of BCPs
to all Group companies to mitigate risks, such as
major natural disasters.
In ﬁscal 2010, we translated our BCP guidelines
into English and Chinese, and then distributed themto all Group companies around the world. Every
Hitachi Group company and business site preparesfor emergencies by producing a BCP using theguidelines that are relevant to them.
†1 Business Continuity Plan (BCP): A plan for ensuring the continuation of core
operations and for promptly restoring operations in the event of a disaster or
accident.

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Risk Management

Novel Strain of Influenza Action Plan and BCPs
In 2008, as a precaution against a novel strain of
inﬂuenza that gave rise to fears of a pandemic,
we set up a special organization called the Risk
Management Headquarters, headed by thepresident. In the event of a worldwide outbreak,the Risk Management Headquarters will take thelead in securing the safety of all Hitachi Group
employees and their families. Every effort will
be made to ensure that operations essential for
maintaining social functions, such as medical
services, public security, and lifelines, are continued
without interruption.
As part of these preparations, we formulated the
Guidelines for Pandemic†1 Influenza Preparedness in2009. We distributed these to all Group companies
in ﬁscal 2010, after translating them into English
and Chinese.
†1 Pandemic: An infectious disease epidemic that spreads worldwide

disasters by sharing the results of tabletop drills
with the entire Hitachi Group. We also holdmonthly drills that use a satellite communications
system.
Providing Information through Our Internal
Web Site
The Hitachi Group internal Web site has provided
a risk response page for all Group employees since1997. This internal Web site features informationfrom wire services and Japan’s Ministry of Foreign
Affairs as well as problems that Hitachi Group
employees have experienced. If emergencies arise,
this site presents responses and alerts based on top
management policies and disseminates information
on damage.
The risk response Web site adds or updates
around 80 news items every day. Page views permonth reached one million when the H1N1 ﬂu
spread worldwide; the average number of pageviews per month is about 400,000. These ﬁgures
underscore the essential role that the internal risk
response Web site plays for risk response activities.
This page also has top management policies
and disaster updates for the Great East Japan
Earthquake for the entire Hitachi Group.

Guidelines for Pandemic Influenza
Preparedness (English version)

Tabletop Exercise to Prepare for Large-Scale
Disasters
Hitachi, Ltd. has held annual disaster simulation
drills since ﬁscal 1998—so far at 18 sites throughout
Japan. For these drills, teams of people makedecisions under disaster scenarios that have beendeveloped over six months and include a range ofcrises. The objective is to verify and improve theeffectiveness of prevention plans for large disasters.
Personnel in charge of risk management at businesssites participate in the drills, then report on theirexperience and results at a general assemblyof around 200 officers responsible for handlingrisk. We are reinforcing our plans for large-scale

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Compliance
Raising awareness and reinforcing complianceamong Group companies worldwide during
international expansion to ensure faircompetition.

reinforce awareness of the Hitachi Group Codesof Conduct. During the month, we placed
computerized learning tools on our intranet. To
date, 20,000 employees throughout the Hitachi

Formulating and Ensuring Awarenessof the Hitachi Group Codes of Conduct

Table of Contents — Hitachi Group Codes ofConduct

Hitachi, Ltd. formulated the Hitachi Group Codesof Conduct in August 2010 as speciﬁc common
conduct codes for the Group. This was in line withthe shift to a new Group management structure
to mark Hitachi’s centennial. Based on translationsof this document into 17 languages, consolidated
subsidiaries worldwide then formulated their own
codes of conduct in line with the same content.
We ensure broad awareness of the Hitachi Group
Codes of Conduct by displaying them on computer
startup screens during Hitachi Group Corporate
Ethics Month. We also produced an e-learning
tool based on case studies for speciﬁc code items
to help employees consider how best to act, andare extending this tool to Group employees inJapan. We ask managers to submit a statement
electronically conﬁrming that they have taken thecourse and are pledging to comply with the code.
In ﬁscal 2011, we are extending this request to
consolidated subsidiaries outside Japan.

Implementing Corporate Ethics Month
Corporate ethics and compliance are the bedrockof all our activities. Every October has been HitachiGroup Corporate Ethics Month since ﬁscal 2009.
Top management leads the way to improving
adherence to ethics and complying fully with laws
and regulations. Executives and employees aremaking compliance central to all their actions. In
ﬁscal 2010, we also distributed top management
messages on compliance to all Group employees
and familiarized employees with the Hitachi Group
Codes of Conduct (described here). In addition, wearranged a presentation by an outside, non-Hitachi
lawyer for compliance officers and managers to

Chapter 1: Sincere and Fair Business Activities
1.1 Provision of Safe High-Quality Products and Services
1.2 Sales Activities
1.3 Procurement Activities
1.4 Respect of the Hitachi Brand
1.5 Observance of Engineering Ethics
Chapter 2: Environmental Protection
2.1 Promoting Environmental Management
2.2 Environmentally Conscious Business Activities andEnvironmental Management
2.3 Communication with Stakeholders
Chapter 3: Relations with Society
3.1 Disclosure of Company Information
3.2 Contribution to Local Communities
3.3 Relations with Politics and Government Administration
3.4 Prevention of Anti-social Transactions
3.5 Regarding Gifts, Business Entertainment, Etc.
3.6 Observance of Laws and Regulations and Respect of the Culture
and Customs of Each Nation and Region
Chapter 4: Respect of Human Rights
4.1 Promoting Respect of Human Rights
4.2 Eliminating Discrimination
4.3 Respect of Human Rights in Information Management
4.4 Respect of Basic Rights at Work
Chapter 5: Management Foundations
5.1 Management and Use of Information
5.2 Use of Inside Information and Related Considerations
5.3 Management and Preservation of Company Assets
5.4 Arranging a Work Environment That Draws Out Employee
Strengths
5.5 Observance of Laws and Regulations Governing Imports andExports
Chapter 6: Complete Observance of Codes ofConduct
6.1 Complete Observance of Rules
6.2 Implementation of Self-Audits
6.3 Internal Reporting System
Chapter 7: Responsibilities of Top Management
Supplementary Provision Hitachi Group Implementation of Codes ofConduct
WEB Hitachi Group Codes of Conduct
http://www.hitachi.com/csr/csr_images/codeofconduct.pdf

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Environmental ReportManagement ReportSocial ReportComplianceGroup in Japan have participated in seminars andvideo courses on speciﬁc risk levels.

Compliance Reporting System
To prevent illegal or unethical behavior, to promptly
address infractions, and to enhance the ability
to self-regulate, we instituted a company-wide
compliance reporting system. Employees canreport directly to the division responsible at Hitachi(Compliance Division) or to an outside attorney.
This system can be used not only by Hitachi
employees but also by former employees, business
partner companies, and temporary staff. Anothersystem—Channel to the Board of Directors—has
been introduced to allow employees to reportproblems anonymously straight to Hitachi’s boardof directors.

Preventing Corruption
Our 2012 Mid-Term Management Plan focuseson Social Innovation Businesses and strategic
progress in emerging nations. Global compliance is
now becoming ever more important, as Japanese
corporations face tighter controls on bribery of
foreign public officials. Key examples include theUnited Kingdom and the United States, which haveenacted new bribery prevention laws.
In ﬁscal 2008, we formulated corporate rules
and guidelines to prevent bribery worldwide, andwe are ensuring adherence through audits andeducation. In the second half of ﬁscal 2010, werequested top executives at Group companies in
the Americas, Europe, China, and elsewhere in Asia
to further improve compliance. In March 2011,
we held a meeting at which legal and complianceofficers from subsidiaries overseeing businesses in
the Americas, Europe, China, and Asia reported onbribery prevention. Two hundred and twenty-fourcompliance officers and managers from Hitachi,Ltd. and Group companies in Japan attended themeeting and shared information and case studies.

TOPICS
Recognized as One of the World’s Most
Ethical Companies
After a rigorous review, Ethisphere
Institute, a U.S. think tank that researches,develops and promotes best practices in
CSR and corporate ethics, awarded its
Ethics Inside Certiﬁcation to Hitachi Data
Systems Corporation in the United Statesin November 2010. Ethisphere certiﬁesorganizations that establish, maintain,
and share ethical conduct beyond legal
requirements and which can be models
for other organizations. In March 2011,
Ethisphere also chose Hitachi Data
Systems as one of the World’s Most EthicalCompanies for 2011. For this award,
the institute evaluates several thousandcompanies from 36 industries in morethan 100 countries, choosing one or
two companies per industry. Ethisphererecognized the commitment to complianceof Hitachi Data Systems’ management andlauded the company’s innovative initiatives,
including a video-based education programand computer tools that give employees
timely, relevant information on ethics.

World’s Most EthicalCompanies markHitachi Data Systems employees

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Environmental ReportManagement ReportSocial ReportCompliancePreventing the Recurrence ofMisleading Representations
The entire Hitachi Group is working to prevent a
recurrence of misleading information following
the Hitachi Appliance, Inc. misrepresentation ofrefrigerators in ﬁscal 2009. Hitachi Appliances
has since reinforced their systems to check
environmental information in catalogs andother publications. We decided to make April
the month for improving representations, andnow use intensive education to ensure that all
regulations are followed, particularly the Act
against Unjustiﬁable Premiums and Misleading
Representations. In June 2010, representatives
from consumer groups inspected manufacturing,product testing, and appliance recycling at Hitachi
Appliances’ Tochigi Works, which manufactures
refrigerators and air conditioners.
The entire Hitachi Group is now setting up acheck system for corporate rules, making internal
audits, and building understanding throughecology awareness education and training
tailored to personnel levels. By February 2011, we
had held seven regular meetings of an advisorygroup on product environmental informationand expressions, which we created in ﬁscal 2009,and obtained advice on consumer perspectives
from outside experts. We explained this advice
at a training seminar, sponsored by the Nippon
Association of Consumer Specialists, to consumer
product managers.

Protecting Personal Information andInformation Security
The Hitachi Group emphasizes two points in policies
to protect personal information and information
security:(1) Precautionary measures and prompt security
responses
Hitachi clearly classiﬁes information assets to be protected andtakes safeguarding measures based on vulnerability and risk
analysis. We also have an emergency manual for security breaches,
based on the assumption that these are inevitable, not justpossible.
(2) Promotion of stronger ethical and security
awareness among data users
Hitachi has prepared a curriculum tailored to various personnel
levels—staff, managers, etc.—and is working to raise theprevailing sense of ethics and security awareness through Groupwide education using e-learning. We are also working on the use ofaudits to identify and address problems early on.

Protecting Personal Information
We established a personal information protection
management system based on our Personal
Information Protection Policy. With this system,
through e-learning courses for all employees andthrough periodic audits, we ensure the protection
and safe handling of personal information.
Hitachi, Ltd. received Privacy Mark certiﬁcationin March 2007 and renewed certiﬁcation in
March 2011. As of March 2011, 72 Hitachi Group
companies have received the Privacy Mark.†1
In July 2007, the Odaira Memorial Tokyo
Hitachi Hospital became the ﬁrst corporate
medical institution in Japan to earn Privacy Markcertiﬁcation. The Hitachi Yokohama Hospital and
Ibaraki Hospital Center (both are located in Japan)
also obtained certiﬁcations. These hospitals work
hard to protect and carefully handle personal
information. Hitachi also strives to safeguard
personal information at Group companies outside
Japan based on the Personal Information Protection
Policy and in accord with all national and regional
legal and social requirements.
WEB Personal Information Protection Policy
http://www.hitachi.com/privacy-e/index.html†1 Privacy Mark: Certiﬁcation awarded by the Japan Information Processing
Development Corporation to companies and organizations to recognize effective personal information management.

Privacy Mark

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Information Security Initiatives
The rapid spread of digital information andcomputer networks has made it essential forbusinesses to strengthen security to maintain publictrust.
For that reason, we established information
security policies and processes. We are striving
company-wide to improve security in line with
our information security management system.
For example, we develop information security
procedures, educate employees about security, andaudit information security.
We formulated the Three Principles forPreventing Leakage of Conﬁdential Information,
ensuring accident prevention and the highest levelof care of customer information. Our policies ensurethat we minimize damage in the event of accidents
by promptly contacting customers, reporting togovernment agencies, investigating causes andacting to prevent recurrences.
Group companies worldwide are taking thesesteps to prevent information leaks: using Hibun
encryption software; security PCs that do not store
data; Katsubun electronic document access control
and expiration processing software; and email andWeb site ﬁltering.
Group companies worldwide are reinforcing
information security management in line with
Global Information Security Administration
standards. We have set up PC security and otherspeciﬁc policies, coordinating extensively with units
in the United States, Europe, Southeast Asia, andChina to ensure that these measures are being
taken. The Information Security Report details our
initiatives.
WEB Information Security Report (only in Japanese)
http://www.hitachi.co.jp/csr/csr_images/securityreport.pdf

Three Principles for Preventing Leakage ofConfidential Information
Rule 1.
In principle, conﬁdential information cannot be taken from theworkplace.
Rule 2.
Permission must be obtained from an information assets
administrator when employees are required to take conﬁdential
information from the workplace for business.
Rule 3.
Necessary and appropriate measures to prevent information leaks
are mandatory for conﬁdential information that needs to be takenfrom the workplace for business.
Notes:
1. Conﬁdential information includes all trade information for which access is
restricted to internal areas and relevant third parties.
2. These rules also apply to conﬁdential information taken from customer
business sites.

Export Control
For basic export control, we use the HitachiStandards of Corporate Conduct, which statesthat we “shall help maintain international peace

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

Improve user literacy∙ Supply security education materials∙ Educate managers and staff

Information
assets to beprotected

Implement preventive techniques∙ Widely implement administrative measures∙ Deploy technological processes

Establish information security system∙ Develop rules (security policy)∙ Create managerial framework∙ Establish audit and follow-up system∙ Ensure solid feedback through extensive PDCA cycles forprevention and accident response

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Environmental ReportSocial ReportComplianceand security through compliance with trade laws
and regulations.” We adopted rules for controllingsecurity exports based on this policy in 1987, andwe continue to strive for the strictest possible
export controls.
This means screening the destination, enduse, and end-user of all goods and technologies
intended for export and promoting all legal
compliance. In addition, we are promoting Groupwide export controls by providing guidance toall Hitachi Group companies worldwide on rules
and organizations for export control, as well as
supporting education and compliance training toensure that every Hitachi employee follows thesame export control policies.
In ﬁscal 2010, we held meetings for export
control managers at regional Group companies
in China, Singapore, the United Kingdom, andThailand, and provided practical training on export
control. We augmented the Japanese version of
the e-learning course with a Chinese version, andbroadly implemented basic education courses.

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Environmental ReportManagement ReportSocial ReportInnovation Management

Innovation Management
Since the beginning, Hitachi has applied R&D
to fulﬁll our Corporate Credo of contributing
to society through the development ofsuperior, original technology and products.
The sustainable growth of the Hitachi Groupis driven by this continuous generation of
innovation with R&D at its core.

Research and Development Strategy
The Hitachi Group is investing 670 billion yen in
R&D in the Social Innovation Business areas in orderto accelerate research and promote growth in the
global market based in this business area. This

represents 60 percent of the total R&D investmentof 1.2 trillion yen allocated for ﬁscal 2010–2012.
Further, to enhance R&D efficiency and speed up
technology development supporting the Social
Innovation Business, locally-led research outside
Japan will be increased and the role of domestic
laboratories in disseminating cutting-edge
technologies to the world will be reinforced. In
April 2011, the Technology Strategy Office wasestablished within the Research and Development
Group to integrate the technology strategy forthe entire Hitachi Group as well as to formulate
medium-to-long-term technology and development
plans linked with business strategies.

Major Indices
New R&D Organization of Hitachi, Ltd.

Trend in R&D efficiency

Prior to April 2011

(ROI)
1.2

Research and Development
Group

1.1

1.0
(Target)
0.8

0.82

0.6
0.4

0.45
0.31

0.2
0

0.37
ROI

2006

2007

2008

2009

2010
(FY)

Trend in R&D expenditure(%)(billions of
yen)
4.0

3.8

4.2

4.2

4.3

5
4

450
428.1
412.5

416.5
395.1

400
372.4

Technology Strategy
OfficeAdvanced ResearchLaboratory

Central ResearchLaboratory

Hitachi ResearchLaboratory

Hitachi ResearchLaboratory

Systems Development
Laboratory

Yokohama ResearchLaboratory

Mechanical Engineering
Research Laboratory

Design Division

Production Engineering
Research Laboratory
Design Division

2

Reserch centersoutside Japan

0350

Power Systems Company
Energy and Environmental
Systems Laboratory

300
Consumer Electronics
Laboratory
0

2006

2007

Research investments

2008

2009

2010
(FY)
R&D expenditures to revenues

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Research and Development
Group

Central ResearchLaboratory

3

1

From April 2011041

Reserch centersoutside Japan

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Research and Development Goals
The R&D expenditures of the Hitachi Group arebeing maintained at around 4 percent of total
revenue. For R&D investment efficiency, our target
is to deliver an ROI,†1 operating income divided by
R&D expenditure, of greater than 1.0. For the R&D
contribution to the environment, we use a “green
research” index, which is deﬁned as research forthe development of environmentally compatible
products. The target is for 100 percent of research
to be green research by ﬁscal 2015. We also use
the number of papers accepted by the Instituteof Electrical and Electronics Engineers (IEEE), theworld’s largest professional technology association,
as a benchmark for the Hitachi Group’s technology
standards and activities worldwide. In ﬁscal 2010,
the IEEE adopted 47 research papers from the
Hitachi Group, ranking us number three in theworld electronics industry and number one inJapan.
†1 ROI: return on investment

Enhancing Overseas Research Bases
As our Social Innovation Business expands
globally, the four key R&D bases outside Japan
Global Research Policies at Four Bases outside Japan
Initiative 1
Increase overseas personnel
FY 2012: approx. 300 (2x)Initiative 2
Foster global R&D human capital
FY 2012: 90%+ local staff, 30%+ doctoral degree holders
Initiative 3
Focus on local Social Innovation Business themes
China∙ Participate in national Social Innovation Business programs∙ R&D base for local Hitachi Group companies
Europe∙ Promote open innovation in cutting-edge physics∙ Accelerate development in Social Innovation Business such as rail andpower systems
United States∙ Reinforce R&D in next-generation storage systems∙ Develop environmentally conscious vehicle technologies
Asia∙ 2011 establishment of R&D base in India∙ Alliance with research organizations in India

will be enhanced to target regional needs. First,
the number of R&D personnel outside Japan will
be doubled from the current 150 to roughly 300
in ﬁscal 2012, localization will be reinforced, andcollaboration with local government, business andresearch institutions will be strengthened. We will
pursue locally-led R&D that is grounded in regional
needs. Further, we will select R&D themes focusing
on the Social Innovation Business being promotedin each region.

R&D Plan and Investment
At Hitachi, Ltd., 70 percent of R&D investment
comes from sponsored and advanced sponsoredresearch from Hitachi in-house companies andHitachi Group companies. The remaining 30 percent

TOPICS
Hitachi Cambridge Workshop
In August 2010, the Hitachi Cambridge
Laboratory invited eight British andJapanese students to the Hitachi CambridgeWorkshop. The goal was to foster mutual
cultural understanding and a sense ofcommunity. Four British students and fourJapanese students, aged 16 and 17, formed
a nanotechnology project team to explore
the future of electronics.
The students designed, assembled,
and measured simple electronic devices,then made presentations at the end of theworkshop on what they had learned.

Hitachi Cambridge Workshop participants

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comes from corporate funds and is allocatedfor basic and platform research. Sponsored andadvanced sponsored research is conducted witha target of expanding core business, and aims
at commercialization within three to ﬁve years.
Basic and platform research is based on the midto-long-term Technology Plan, and aims to create
innovative technologies forming the base for future
core businesses.

Hitachi Fellow System
In June 1999, the Hitachi Fellow system wasestablished to recognize the distinguished service
and contributions of an employee to the progressof science and technology on a global level, andfor the international acknowledgement of Hitachi’shigh standard of technology. The position of Hitachi
Fellow is appointed by the Board of Directors,
and it is the highest technical position within
the company. The position of Hitachi Fellow isequivalent to that of executives. A Fellow is assured
freedom of choice for research theme, researchfunding and support for external professional
activities.

Examples of R&D Achievements
Long-Life Lithium-Ion Batteries
A new manganese-based cathode material whichroughly doubles the life of industrial lithium-ion
batteries was developed. A prototype battery
cell was developed in collaboration with ShinKobe Electric Machinery Co., Ltd. employing thismaterial. After evaluation, it was conﬁrmed thatthe battery capacity could be roughly reduced byhalf, thus opening the way to achieving a battery
life of 10 years or more. Prospective applications
include power storage in renewable energy
generation such as wind power, and as a powersource for electrical construction machinery andother industrial equipment designed to reducegreenhouse gas emissions.

New manganese-based
cathode material (left)
Prototype battery cell (right)

Hitachi Fellows (as of March 2011)

Dr. Akira Tonomura
Field: Holographic electron microscopy

Dr. Toshihiko Odaka
Field: Mainframe computers

Dr. Hideki Kambara
Field: DNA sequencers

Dr. Hideaki Koizumi
Field: Optical topography

Dr. Kiyoo ItohField: Semiconductor memory

Service Robots
Under a unique concept of “human symbiosis,”
Hitachi, Ltd. has developed EMIEW to co-exist
with humans, applying various technology
such as agility, obstacle avoidance and distancecommunication. In EMIEW2, mobility and voicerecognition features are further improved.
EMIEW2 is able to safely move over small groundobstacles such as thresholds or electric cables, aswell as clearly distinguish humanvoices from background noise.
Such features will improve thefunctionality of EMIEW2 in safely
serving the daily needs of people
in hospitals or offices as a guide,or as a surveillance robot during
rounds. We aim to realize asociety in which robots can safely
serve people in various ways.

WEB Fellow details
http://www.hitachi.com/rd/fellow_intro.html

EMIEW2 service robot

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Environmental ReportManagement ReportSocial ReportIntellectual Property (IP)Intellectual Property (IP)The mission for our intellectual property
activities is to maximize their contribution tobusiness. While these contributions can varyfrom one business to another, we categorize
them by differentiation and prevention,
securing business freedom, and patent
licensing income. We will forge ahead with our
IP strategy, that is in line with a management
focus on global, fusion, and environment—ormore speciﬁcally, global development thatfuses social infrastructure with intelligent IT
and environmental systems.

Globalization of Intellectual Property
Increasing the number of patent applications isvital for the globalization of intellectual property
activities. We will strengthen our benchmarks
against those of other companies and reinforce ourpatent position.
Assuming that revenues from outside Japan willaccount for more than 50 percent of net sales inﬁscal 2012, we intend to generate 55 percent of ourpatent applications outside Japan in that year, up
from 51 percent in ﬁscal 2010.

Breakdown of Patent Filing Countries / Regions
Japan

U.S.A.
and Europe

China andother Asian nations*45%

Around 20%

Around 35%(FY 2012 target)
49%

Around 20%

Around 30%(FY 2010)*Including international ﬁlings through the Patent Cooperation Treaty, which
has a single application for a patent and has legal effect in treaty member
countries.

Reinforcing Intellectual Property Initiatives in
Emerging Markets
Our growth strategy mainly targets China andelsewhere in Asia, as well as emerging countries.
We intend to increase the number of patentapplications in these areas.
The number of patents that the Hitachi Grouphas obtained in China over the past ﬁve years iscomparable to major rivals in the Social Innovation
Business. We will also ﬁle more patents in emerging
countries using Patent Cooperation Treaty
applications.

Building a Strategic Patent Portfolio
We are supporting management strategies focusedon global, fusion, and environment with ourintellectual property by building a patent portfoliothat is consistent with our management strategy.

Major Targets
Patent Application Ratios outside Japan(%)
60

Examples of Focused Themes of IP Activities
55

55(Target)50

Field

Key themes

51
GlobalStorage systems
Smart grids

FusionInformation platform for social infrastructure

Environment

New power devices
Inverters
Lithium-ion batteries
Green mobility

47

40
0

2009

2010

*Hitachi, Ltd. and consolidated subsidiaries

2012
(FY)

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Environmental ReportManagement ReportSocial ReportIntellectual Property (IP)Strengthening International
Standardization
We are leveraging our combined human capital,
knowhow, knowledge, and other resources forstandardization so that we can expand our strong
businesses. For example, at our environmentallyconscious data centers, we have standardized
interfaces for IT and air-conditioning control
equipment. We also have key leaders from inside
the company working within global standardization
organizations, notably through the vice-presidency,
chairmanship, and other positions on theInternational Electrotechnical Commission.

Business Contributions
Intellectual property activities have no value unlessthey contribute to supporting businesses. We
categorize the results from IP by differentiation andprevention, securing a degree of business freedom,and patent licensing income.
We start by building a patent portfolio that
focuses on technology consistent with Hitachi’s
strengths, from the standpoints of market
needs and technology trends. We prevent othercompanies from using our technologies without
our authorization and we differentiate our products
and services. We have built a competitive patentportfolio, and have cross-licensing agreementswith other companies to ensure business freedom.
We also obtain patent licensing income fromother companies and invest it in new research anddevelopment.
Constantly aware of these results, we have beenﬁling and prosecuting patent applications, andenforcing our patents so that we contribute to andprotect our businesses.

use of these IPRs, subject to royalty payment. If any
company is found to have infringed our IPR, we
encourage them to acquire the necessary license,
and we will take legal actions, if necessary.

Reward System for Employee
Inventions
We motivate employees on the research anddevelopment frontlines with a reward system for
new inventions. We more clearly deﬁned theserewards in 2005, when Article 35 of Japan’s
amended Patent Act took effect. We revised,and carefully manage, our reward system for
employee inventions to increase the satisfactionof inventors. Hitachi provides rewards for ﬁled
patent applications and granted patents, as wellas performance-based rewards for patents which
are used for our products/services and/or bring inpatent licensing income. We do not set any upper
limit for performance-based rewards.

Cultivating Human Capital
We drive forward IPR initiatives by cultivating
quality human resources who are highly skilled andglobally aware. As of April 1, 2011, our Intellectual
Property Group had 100 registered patent attorneys
and seven lawyers registered in the U.S.A. or the
UK. Every year, we assign four to six people forinternships at patent and law offices in the UnitedStates and Europe. To date, 60 people have served
as interns outside Japan.

Respect for Intellectual Property
We respect the intellectual property rights (IPR) of
other companies as we expect them to respect ours.
We follow in-house rules on preliminary searchesof other companies’ patents to avoid infringements
during product development. For IPR that belongs
to others, we obtain licenses from IPR holders
before using them. For our own IPR, in principle,
we provide licenses to businesses wishing to make

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Environmental ReportManagement ReportSocial Report

Brand Management

Brand Management
To grow Hitachi’s Social Innovation Businessworldwide, we must improve our brandrecognition and reputation, and establish the
Hitachi brand as a social innovation company.
We communicate globally in many ways withstakeholders to ensure a full understanding
so that we increase the value of, or minimize
damage to, our brand.

Global Brand Strategy
For developing business globally, we need tocorrectly communicate our vision and brandpromise to our stakeholders. People have tended
to perceive Hitachi as an appliance or consumer
products manufacturer, particularly outside Japan.
So, to establish a reputation as a social innovationcompany, we must promote the brand externallythrough advertising, public relations, and CSR
initiatives, while raising our own employees’
awareness of the brand promise and encouraging
employees to engage in activities based on thatbrand promise. Together as One Hitachi, we will
evaluate the effectiveness of our activities toimprove the value of the Hitachi brand.

brand in such emerging nations as China andIndia. There, we focus on corporate advertising
campaigns through television commercials,
newspaper advertising, and on our Web sites. The
corporate advertising campaigns have improved
our brand recognition and brand image in thosecountries. In advanced nations, however, wefound that word of mouth and Web sites are more
effective, and therefore in those markets we mostly
focus on the Internet.
We participate extensively in environmentrelated exhibitions and other events around theworld, including eco-product shows, to spotlight
how we address environmental issues.

WEB Hitachi Brand Strategy
http://www.hitachi.com/about/vision/brand/

Improving the Global Brand
Inspire the Next, our corporate statement,
embodies our brand vision. We set up corporate
communication departments in North America,
Europe, Asia, and China to completely localize
and convey this vision to stakeholders. Market
characteristics and business methods differ fromregion to region. So, by employing effective
communications and combining core businesses
and solutions for speciﬁc markets, we convey
messages that are consistent with our commitment
to environmental issues as a social innovationcompany.
For example, we concluded that mass media
advertising is an effective way to promote our

Corporate advertising campaign in North America

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Web Management

Internal Brand Management

We have responded to increased Internet use
worldwide by enhancing our Web portal sites inevery country and region, making them the key
tools for publishing important information. We
convey consistent Group brand messages, while
improving Internet searches, to match local needs.
As well, in every region, we produce content that
focuses on our local businesses. In recent years, wehave built Web sites in the emerging nations that
we position as focused markets.
At the end of March 2011, we had 58 Web sites
in 27 languages covering 47 countries and regions,and we uniﬁed our brand image with a common
design format.

Our employees are important contact points forbuilding the brand, as they deal directly withstakeholders. We promote internal initiatives
globally as well as increase awareness of HitachiGroup’s brand promise to ensure that employees
thoroughly understand and apply the Hitachibrand’s vision, mission, and value.
In ﬁscal 2010, 1,103 employees attended
12 brand seminars worldwide. We strengthen
employee awareness of the Hitachi Brand by giving
an award to good initiatives that help improve
Hitachi brand value. These awards are called “TheInspiration of the Year awards.” In ﬁscal 2010, we
received 382 applications for the Inspiration of theYear awards. A program that improved the valueof the Hitachi brand through our UK rail businesswon the Special Top Prize. During ﬁscal 2010,
we commemorated our centennial by increasing
the number of awards, with around 50 entrants
receiving Grand Prix, Innovation/Reliability, and
Eco-Spirit Awards.

WEB Portal: Portal site to access Web content
http://www.hitachi.com/

Hitachi’s Global Portal

EuropeGlobal Site

China
U.S.A.

Japan
Middle Eastand North Africa

Asia

Oceania

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incidents in other areas or businesses.

Action against Infringement of theBrand Value
Brand education content: Growing the Brand
WEB Hitachi Brand Platform
http://www.hitachi.com/about/vision/brand/statement/index.html

Evaluating the Effectiveness of Brand
Initiatives
We evaluate the effectiveness of communications
for our brand strategy with questionnaires andonline surveys. We summarize the responses andevaluations of customers and other targetedstakeholders, then we use this information to
make improvements. We also conduct an annual
brand image survey to create a snapshot of the
global strength of the Hitachi brand. We use theseﬁndings to analyze and report on the overall impactof brand initiatives.
When conducting these assessments andbrand image surveys, we set benchmarks basedon the Hitachi Brand Platform, and use them formonitoring brand initiatives.

Reputation Management
Globally, all Hitachi Group companies share the
Hitachi brand. This sharing generates groupsynergies for innovation and trust in the brand. We
recognize that accidents and rumors can damage
the brand globally, so we set up communication
divisions at regional headquarters outside Japanto handle risks to our reputation. These divisions
ensure the broad recognition of our activities byregularly informing the media and government
agencies, as well as members of nongovernmentalorganizations and opinion leaders in every country
who are particularly interested in human rights andenvironmental issues. These divisions work hard tocorrect public misperceptions about our operations.
Hitachi, Ltd. and regional headquarters outside
Japan collaborate to mitigate risks to the brand andresolve problems arising from accidents or rumors.
Moreover, they seek to proactively prevent future
occurrences by investigating similar and related

The Hitachi brand is an important and clear“promise” to all stakeholders of our fundamental
worth, and that includes our management
philosophy, social mission, and speciﬁc corporate
activity. To reach our goals, it is essential tocommunicate consistently with one voice based on
the integral principles of the Hitachi brand.
Management of the Hitachi Brand Impression
We globally uniﬁed the presentation and use of
our logo and trademark to roll out our message asa single global entity, or One Hitachi. The HitachiGroup Identification Standards Manual lays out
how to use the logo. We have integrated visual
impressions of the Hitachi brand, by developing adesign system for each medium.
Safeguarding the Hitachi Brand
We provide legal protection for the Hitachi brandby working hard to eliminate counterfeit appliancesand parts in such high-risk regions as China, the restof Asia, the Middle East, and Africa. In countries orregions where brand infringements are particularly
widespread, we collaborate with local companies tostep up anti-counterfeiting programs.

Corporate statement logo

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Environmental
ReportWind Power Ibaraki Co., Ltd’s Wind Power Kamisu(seven 2,000-kW wind power turbines)

Environmental Report

MESSAGE

Based on Our Commitment to the Environment,
We Will Deploy Our Social Innovation Business Worldwide
to Help Resolve Global Environmental Issues
Nations around the world must work together if
we are to deal with increasingly apparent climatechange, ecosystem destruction, and other global
environmental threats. We must also foster highlevels of environmental consciousness in eachof our employees and use their core businessstrengths to help resolve environmental problems.
The Hitachi Group is currently focusing
management resources on the Social Innovation
Business to contribute to the development ofa sustainable social infrastructure. In 2008, wecreated Environmental Vision 2025, our long-termplan for reducing CO2 emissions—a top-priority
issue—through business operations. Our goal is tohelp reduce annual CO2 emissions by 100 million
tonnes by ﬁscal 2025 through Hitachi products andservices. In ﬁscal 2010, we succeeded in reducing
CO2 emissions by 15.51 million tonnes. We achieved
this reduction through the use of highly efficientgas turbines, wind power generation systems, andother energy infrastructure that emit less CO2, as
well as through the global provision of powersaving products and services. Sales of Eco-Products,
products meeting rigorous environmentallyconscious criteria, jumped by 7 percent on theprevious year to 60 percent of all sales. We aim to
make all Group products and services Eco-Products
by ﬁscal 2025.
The recent Great East Japan Earthquake
prompted countries around the world to review
their energy policies as well as energy supply
and demand. Current mechanisms will have tobe revised in the coming years to respond toincreasingly diverse energy-related values andneeds.
The Hitachi Group will lead the way by supplying
products and services, such as low-carbon power
supply systems, energy-saving solutions fortransportation and industry, and IT-based energy
control and monitoring technologies. We will
also contribute to the use of sustainable energies
that offer energy security through technology
development geared to diversifying needs. In
the short term, we will focus on optimizing andShigeru Azuhata
Senior Vice President and Executive Officer,
Hitachi, Ltd.
Hitachi Group Chief Environmental
Strategy Officer

boosting the efficiency of products and services;
over the long term, that focus will shift todeveloping city functions that enable high energy
efficiency and minimal environmental loads.
In ﬁscal 2011, we launched the Third
Environmental Action Plan, which sets out a highlevel goal of reducing global CO2 emissions by
10 percent per unit of production by ﬁscal 2015
(compared with ﬁscal 2005 levels). We will steadily
move ahead with that plan, as well as work todevelop more environmentally conscious products,
factories, and offices. We also look forward toworking together with customers using Hitachi
products and services to help reduce CO2 emissions
through our products.
We are committed to reﬂecting world trends
and stakeholder views in our future improvements
and innovations, growing as a corporate groupthat contributes to the realization of a sustainable
society.

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Corporate Environmental Management
Strategies and Initiatives
Corporate environmental management is afocus of the Hitachi Group 2012 Mid-Term
Management Plan looking ahead to ﬁscal 2012(see pages 015–016).
When providing products and services,and during our business operations, we
believe that initiatives to reduce the load on
the environment are essential for the MidTerm Management Plan pillars of growth
driven by social innovation business andestablishment of a solid financial base. Basedon this management policy, and guided
by the Environmental Vision aimed atachieving a sustainable society, our corporate
environmental management is being carriedout to implement the long-term Environmental
Vision 2025 and our Environmental Action Plan.

The Hitachi Environmental Vision
We have drawn up our Environmental Vision
describing the aim of our corporate environmental
management to achieve a sustainable society.
The world’s population will reach 7 billion in 2011
and is expected to exceed 9 billion by 2050.†1 At
the same time, the annual growth in worldwide
GDP has averaged more than 3 percent for at least
the past 20 years, except for the downturn that
Hitachi’s Environmental Visionoccurred in 2009.†2
With the increase in economic and social
activities has come growing demand for energy,
water, minerals, and other resources, making
environmental problems worse, from resource
depletion to climate change. These are problems
faced by the entire world. To solve them, the loadon the environment must be limited to the least
possible and society must be made sustainable.
The Hitachi Environmental Vision, giving priority
to actions for prevention of global warming,
conservation of resources, and preservation of
ecosystems, shows our commitment to contributing
through our business to solving environmental
problems. As a milestone on the road to realizing
this Environmental Vision, we drew up the longterm plan Environmental Vision 2025 for the period
to ﬁscal 2025.
†1 According to the United Nations report: World Population Prospects: The 2010
Revision†2 According to the World Bank: World Development Indicators

Long-Term Plan Environmental
Vision 2025
In its Fourth Assessment Report published in
2007, the Intergovernmental Panel on Climate
World Outlook for Energy-Related CO2
Emissions and Reduction Scenarios(billions of tonnes/year)
Scenario assuming world energy policies implemented to date
45
Scenario stabilizing at 450 ppm(sector andreduction amount)40.2 billion tonnes

40
Power 9.3 billion tonnes
35

Necessary reduction
13.8 billion tonnes
Transportation 1.6 billion tonnes

30

Industries 1.6 billion tonnes
Other 1.3 billion tonnes

27.1
25
0

26.4 billion tonnes

2005

2030 (FY)

Based on energy-related CO2 emissions in IEA World Energy Outlook 2009

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million in the transportation, commercial, andresidential sectors.
A leading indicator on the way to this goal isthe extent to which we can make all our products
Hitachi Eco-Products (see page 063) by ﬁscal 2025,
reducing their burden on the environment. We
plan to expand business opportunities further byworking with partners in global markets and by
developing and creating new environmentallyconscious products and businesses.
Since the amount of contribution to CO2
reduction is an important indicator of our business
management that requires effective progressassessment and information disclosure, we arereceiving reviews by a third-party organization
about the calculation methods and results toensure trustworthiness.
Key Indicators
Contributions to CO2 Emission Reduction(Base: FY 2005)(millions of
tonnes)· Building nuclear power plants· Delivering high-efficiency coal-ﬁred thermal
power plants and gas turbines· Providing equipment for renewable energy

Industrial sector· Providing high-efficiency inverters andtransformers· Providing high-efficiency information equipment
and energy-saving solutions for data centers,
etc.

Transportation,commercial, andresidential sectors· Providing lithium-ion batteries for industrial andautomotive use· Making home appliances more energy efficient*The accident at the Fukushima Daiichi Nuclear Power Station, due to the Great
East Japan Earthquake, is expected to prompt a global review of and changes
in energy policies, including plans for new installation and operation of nuclear
and thermal power plants. In case this review results in major changes to thebusiness plans of the Hitachi Group power sector, the effects of the changes
on the long-term plan Environmental Vision 2025 will be assessed and goal
achievement strategies or targets may be revised.

80

63
60

40

20

0

Initiatives in Each Sector toward Achieving Targets

Power sector*

100 million tonnes/year
Transportation,commercial & residential
10%
Industry
20%

100
Contribution to CO2 emission reduction

Change (IPCC), a UN panel assessing and advisingnations on the causes and effects of climatechange, concludes that CO2 emissions must peakby 2015 and be reduced by 50 to 85 percent of
their 2000 levels by the year 2050 in order tomeet the minimum stabilized density scenario forgreenhouse gases (450 ppm stabilization scenario).
The International Energy Agency (IEA) has
drawn up a CO2 emission reduction scenario
indicating the ﬁelds where CO2 emissions canmost feasibly be reduced for meeting the 450ppm stabilization scenario, and the percentages of
reductions in each ﬁeld. These ﬁelds extend widely
across the Hitachi Group, including the electric
power, transportation, and industrial sectors.
On this basis, the long-term Hitachi Group
Environmental Vision 2025 states our goal of
helping to reduce annual CO2 emissions by 100
million tonnes by ﬁscal 2025 through Hitachi
products and services.
This means that as we reduce CO2 emissions—by improving the environmental efficiency of
Hitachi Group products, and by other means—ourcontribution to lowering CO2 emissions through theuse of our products and services by 2025 from theproducts of ﬁscal 2005 will be 100 million tonnes
annually.
The target of 100 million tonnes was calculated
based on growth strategies in each business sector.
It breaks down to 70 million tonnes in the power
sector, 20 million in the industrial sector, and 10

Power
generation
70%

35

11.77

2009

15.51

2010
(estimate)

2015

2020

2025
(FY)

*The 2008 ﬁgures in the IEA’s CO2 Emissions from Fuel Combustion
Highlights (2010 Edition) were used for CO2 emission
coefficients.

WEB Details of methods for calculating contribution of Hitachi products andservices to the reduction CO2 emissions
http://www.hitachi.com/environment/activities/third/method.html

Fiscal 2010 Results and Coming Initiatives
Our contribution to CO2 reduction in ﬁscal 2010
is estimated to be 15.51 million tonnes, meetingthe target of 14 million tonnes. A wide range ofservices and products contributed to this reductionin emissions, including high-efficiency gas turbines

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and inverters, energy-saving information systems
and hard disk drives, and parts and materials usedin energy-efficient products. In ﬁscal 2010, themethods for calculating CO2 emission reductions
and the results were subjected to third-party
reviews in the case of 17 products, including hydropower plants, hard disk drives, monorail systems,
transformers, drilling machines, amorphous metal
ribbons, and cordless impact drivers (see page 090).
To improve trustworthiness, these reviews will be
expanded to include more products in ﬁscal 2011
and the following years.

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Main Products Contributing to CO2 Emission Reductions in Fiscal 2010
Gas turbines
Power Systems Company, Hitachi, Ltd.

Cogeneration power plant equipment: Jingyuang Redian in China
adopting the H-25 gas turbine

duty design†1 and outstanding durability. Due to high-performance
turbine cooling and compressor technologies, the thermal efficiency
when using natural gas is 34.8 percent, the highest level among gas
turbines in the same class. It can be used with multiple fuels including
light oil, natural gas, and LPG, and it supports environmental measuresusing wet/dry low-NOX burners. In December 2010 the H-25 began
operation as a gas turbine in cogeneration power equipment†2 at acoke production plant in China. Gas generated in the coke production
process is used as fuel in the H-25 to supply electrical power. At thesame time, the heat generated by the H-25 is used to produce steam
in a heat recovery boiler, achieving thermal efficiency of 80 percent ormore for the facility as a whole and contributing to effective energy
use. Moreover, capitalizing on our experience with conventional power
generation systems, we developed an 80 MW-class H-80 gas turbinewith a thermal efficiency of 38 percent, which is a heavy duty twoshaft gas turbine with the world’s largest capacity.†3 The ﬁrst unit is inoperation at a Kyushu Electric Power Company power plant.
In fiscal 2010, some 30 new gas turbines went into operation,
including the 30 MW-class H-25 and the 80 MW-class H-80. Theseturbines, along with the 89 units already in operation, contributed to a
reduction in CO2 emissions by 1.55 million tonnes in ﬁscal 2010.

Hitachi gas turbines are highly regarded for their reliability andefficiency. They are in operation around the world for power generationand general industrial use, and as gas turbines in oil and gas ﬁelds. The
30 MW-class H-25 gas turbine achieves high reliability with its heavy†1 Heavy duty design: Highly reliable gas turbines which need lessfrequent maintenance†2 Cogeneration power equipment: Equipment supplying electric powerand heat at the same time
†3 As of February 22, 2010 (Hitachi, Ltd. survey)

Servers
Information & Telecommunication Systems Company, Hitachi, Ltd.

Distribution transformers
Hitachi Industrial Equipment Systems Co., Ltd.

Blade server BladeSymphony 2000

Amorphous transformer

Facing sharply rising information volume, and increases in power
use by IT equipment as a consequence, Hitachi servers use the latest
processors and high-capacity memory while applying a variety of
power-saving techniques. Our BladeSymphony 2000 blade serverand HA8000/RS220 PC servers, for example, use high-efficiency
power supplies with 80PLUS® GOLD certification (power conversion
efficiency of 92 percent or above*). They also use a fan control system
to adjust rotation speed based on the temperature inside the server. In
these ways, they reduce overall power consumption. Wasteful power
and power supply costs can also be reduced through virtualization
techniques that use server resources carefully, and by power capping
to control processor performance so it doesn’t exceed a preset power
consumption level. The use of servers with improvements like these in
information processing capacity and energy efficiency accounted for a
reduction in CO2 emissions by 0.42 million tonnes in ﬁscal 2010.

When supplying electric power, limiting energy loss duringtransmission—in addition to efficient generation and natural energy
utilization—is an important issue for reducing CO2 emissions.
Hitachi Industrial Equipment Systems has been working on
ways of raising efficiency and reducing energy loss from distribution
transformers. Since ﬁscal 2006, we manufacture and ship transformers
that are top-level in the industry in energy use. Among these,
amorphous transformers which use an amorphous metal alloy as thesteel core, are greatly contributing to CO2 reduction with an energy
efficiency of 40 percent or more. Approximately 23,000 high-efficiency
transformers including amorphous transformers were shipped in ﬁscal
2010, for a cumulative total of around 124,000 since ﬁscal 2006. The
use of transformers accounted for a reduction in CO2 emissions by 0.28
million tonnes in ﬁscal 2010.

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Environmental Action Plan
The Hitachi Group adopts environmental actionplans every ﬁve years that deﬁne speciﬁc action
items and targets for achieving the Environmental
Vision and for promoting the long-term plan
Environmental Vision 2025. One aim is to achieve
emission neutral by ﬁscal 2015. The last year of theSecond Environmental Action Plan was ﬁscal 2010,
so we reviewed the results of the actions to date,and drew up Third Environmental Action Plan withhigh targets that will push us to further lower theenvironmental load.
Emission Neutral
The emission neutral concept is geared atminimizing the environmental load throughout thelife cycle of products. Emission neutral is achieved
when the direct environmental load becomesan equal to the reduction in environmentalload during product use and disposal (social
environmental load). Direct environmental loadmeans the total impact in the stages from raw
materials reﬁning and processing to production anddistribution. It includes such impacts as greenhousegas emissions, waste materials, chemical emissions,and other environmental loads that can be reduced
by self efforts. Social load reduction means theamount reduced in greenhouse gas emissions
during product use and recycling, waste generated,and so on compared with products marketed inﬁscal 2005 through product energy efficiency
and resource conservation. Besides pursuingefficiency improvements that will reduce the directenvironmental load from production, we are
expanding efforts at social load reduction throughdevelopment and sales growth of Eco-Products,
with the aim of achieving emission neutral by ﬁscal
2015.
Successes of the Second Environmental
Action Plan
When implementing the Second Environmental
Action Plan, covering ﬁscal years 2006 to 2010, we
used 17 action items and targets as main indicatorsfor environmental management. In ﬁscal 2010,
the ﬁnal year of the plan, we were able to exceed
our targets for 16 of these items. One standout
achievement, aimed at reducing the environmentalload by providing environmentally conscious
products and services, was reaching 60 percent of
Eco-Product sales (compared with the target of 55
percent). Tackling the global environmental issue
of CO2 emissions, we invested 29.7 billion yen inenergy efficiency measures over the ﬁve-year period
starting in ﬁscal 2006, resulting in a reduction
in CO2 emissions by 290,000 tonnes. In addition,
through energy conservation measures taken by
the Hitachi Group as a whole, such as fuel switchingand energy efficiency diagnoses, we achieved a21-percent reduction in Japan (target: 12 percent)and a 7-percent improvement outside Japan perunit of production (target: 5 percent), comparedwith ﬁscal 1990 levels.
The one area where we fell short of our target
was in the percentage sales of Super Eco-Products(actual 26 percent versus target of 30 percent;

The Emission Neutral Concept
Direct Environmental Load

CO2 emissions
from material
production/
processing

Material production/
processing

Reduced Social (Indirect) Load

CO2 emissions
from manufacturing
CO2 emissions
from transportation

Reduced CO2 emissions
during product use
through energy-saving products

Reduced CO2 emissionsin product take-backand recycling

Distribution

Use

Take-back/recycling

CO2 emissions
from waste recycling

Manufacturing

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see page 066). In the Third Environmental Action
Plan, the target management indicator has beenchanged to the number of product models so that
progress can be assessed more accurately.

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Sustainability Compass
The Sustainability Compass depicts the four
directions of environmental initiatives to be taken
based on the Hitachi Group Environmental Action
Plan. All the initiatives are designed and carriedout in accord with the Action Guidelines forEnvironmental Conservation (see page 059).

Eco-Mind & Global Environmental Management
Next-Generation Products & Services
Super Eco-Factories & Offices
Worldwide Environmental Partnerships

Hitachi Group Second Environmental Action Plan: Targets and Results
Item

Action goal

Index

Fiscal 2010
targets

Fiscal 2010 results

Achievement
level

Integrated
EMS certiﬁed

Integration completed in 8
divisionsp. 082Page(s)Eco-Mind & Global Environmental Management
Establish
environmental
management
systems (EMSs)

Set up an integrated
environmental management
system in every in-housecompany/Group company

Nurtureenvironmental
literacy

Boost percentage of employees
receiving Hitachi Group-wide
Percentage of employees receiving training
training (environmental e-learning)

90%

95%

p. 085

Green purchasing

Purchase products such asenvironmentally conscious officeproducts

Green purchasing percentage

90%

95%

pp.
120–122

Percentage of sales

55%

60%

100%

100%

Integrated EMS certiﬁcation

Next-Generation Products & Services

PromoteEco-Products

Expand Eco-Product lineup

ICT systems, digital media,
Percentage consumer products, etc.
ofPower systems, social/
registered industrial systems, highproducts
functional materials &components, etc.

p. 06580% or more

86%

Percentage of Super Eco-Products

30%

26%

Certiﬁcation of Super Eco-Factories & Offices

30 production
facilities
35 production facilities (total)(total)CO2 emission reduction rate(base: FY 1990, Japan)

12%

21%

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

5%

7%Reduce energy used intransportation

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

11%

29%

Reduce waste

Rate of waste volume reduction(base: FY 2000)

25%

33% (total reduction)
25% (per unit production
reduction)

Promote resource recycling

Resource recycling rate(base: FY 2005, Japan)

10%

13%

Use water effectively

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

10%

10%

Rate of reduction in VOC* atmosphericemissions (base: FY 2000, Japan)

50%

69%

Rate of reduction in the ratio of VOC
atmospheric emissions (base: FY 2005,
outside Japan)

10%

Improve dissemination ofenvironmental action

Introduced initiatives on Web
site
Continue
Placed ads in newspapers andto improve
dissemination magazines
Issued press releases, etc.

Participate in eco-product exhibitions

Continue toparticipate in
exhibitions

p. 066

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

Use resources
efficiently

Chemical
substance
management

Build industry’s most advanced
factories
and offices
Reduce CO2 emissions from energy
sources

Reduce chemical substanceemissions29%

pp.
071–072pp.
072–074
p. 074pp.
075–077pp.
077–078pp.
079–080

Worldwide Environmental Partnerships

Environmental
communication

Enhance environmental
activities through more two-way
communication

pp.
087–089

Exhibited at Eco-Products 2010
Exhibited at 7th Eco-ProductsInternational Fair (India)*Volatile Organic Compounds

Achieved
Partially achieved
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Overview of Third Environmental Action Plan
The Third Environmental Action Plan coveringﬁscal years 2011 to 2015 seeks to strengthen theinitiatives of the second plan, and sets higher
targets for environmental load reduction for eachof the action items. New action plans and targets
were also drawn up in order to have the entire
Hitachi Group become involved in preserving
ecosystems, a pillar of the Hitachi Environmental
Vision.
In addition, the existing certiﬁcation programsfor Super Eco-Products and Super Eco-Factories& Offices were changed to Eco-Products Selectand Eco-Factories & Offices Select programs, withrevised certiﬁcation criteria. The new certiﬁcation

program Eco-Products Select has the additional
requirement of a large CO2 reduction rate for the
product, in order to accelerate the contribution to
reducing CO2 emissions through our products. The
new Eco-Factories & Offices Select program now
deﬁnes separate certiﬁcation criteria for factories
and offices, taking into account their different
characteristics, rather than setting the same criteria
as before. Moreover, higher levels of achievement
have been set, reﬂecting current technology levels.
Through these programs, we will expand thenumber of certiﬁed products, factories, and offices,
promoting a further reduction in environmental
load.

Hitachi Group Third Environmental Action Plan
Category

Action goal

Index

Fiscal 2011 targets

Final ﬁscal year (2015)
targets

Eco-Mind and Global Environmental Management
Establish
Ecosystem (biodiversity)
environmental
management systems preservation(EMSs)

Assessment on ecosystem preservation
Strategy proposals

Preparation of ecosystem-preserving
assessments for business

Completion of ecosystempreserving assessments
for business and theirannouncement

Next-Generation Products and Services
Promote Eco-Products Expand Eco-Product lineup

Percentage of Eco-Product sales

58%

65%

Number of models in Eco-Products Select program

20 models

100 models

Roll-out of new certiﬁcation criteria

Average of one or morecertiﬁcations per company/
group company

Environmentally Conscious Factories & Offices
Build industry’s mostadvanced factories &
officesPrevent global
warming

Reduce energy usedin transportation

Use resources
efficiently

Reduce VOC
atmosphericemissions

Promote Eco-Factories & Offices
Eco-Factories & Offices Select certiﬁcation
Select certiﬁcation
Reduce CO2 emissions

Rate of reduction in CO2 emissions (base: FY 1990,
Japan)

16%

20%

Improve CO2 emissions per unit
production

Rate of reduction in CO2 emissions per unit
production(base: FY 2005)

6%

10%

Improve energy for shipping
per real unit output

Rate of reduction in energy for shipping per real unit
output (base: FY2006, Japan)

12%

15%

Improve waste generation perunit production

High Functional
7%
Rate of reduction inMaterials Group
waste generation per unit
production
Assembly Industry Group(base: FY 2005)(other than high16%
functional materials)

15%

20%

Use water effectively

Rate of reduction in water use per unit production(base: FY 2005, outside Japan)

16%

30%

Decrease ratio of VOC
atmospheric emissions(emissions/used amounts)

Ratio of VOC atmospheric emissions(emissions/used amounts)

5.8%

5 percent or less

Carry out environmental communication as theﬂagship activity of each company or group company

Five-year plan drafting andimplementation

One or more ﬂagship activity
per company/group company

Worldwide Environmental Partnerships
Global citizenshipprogramSocial contributions throughenvironmental activities

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Hitachi Action Guidelines for Environmental
Conservation
PurposeIn order to realize an environmentally harmonious and sustainable
society through products and services, Hitachi is committed tomeeting its social responsibilities by promoting globally-applicable‘MONOZUKURI’ (designing, manufacturing or repairing of products),
which is aimed at reducing environmental burdens of products
throughout their entire life cycles, ensuring global environmental
conservation.

conservation having wide-view about society activities.
9. Hitachi will evaluate potential environmental problems
and prevent them from occurring. In the event that any
environmental problem occurs, Hitachi will take appropriate
measures to minimize the environmental burden.
10. Hitachi will make efforts to disclose information on
its environmental conservation activities to its relevant
stakeholders. Hitachi will also actively communicate with thesestakeholders so as to strengthen mutual understanding andforge cooperative relationships with them.
Adopted March 1993, revised July 2010

Action Guidelines
1. Global environmental conservation is a critical challengeshared by all humans. Hitachi is committed, therefore, to
fulﬁlling its responsibilities by assisting in the realization of anenvironmentally harmonious and sustainable society as one ofits management priorities.
2. Hitachi will make efforts to contribute to society by developing
highly reliable technologies and production processes, while
identifying needs considering concerns related to the preventionof global warming, conservation of resources, and preservationof ecosystems.
3. Members of the board in charge of environmental conservation
are responsible for facilitating appropriate environmental
conservation activities.
Departments responsible for environmental conservation should
endeavor to promote and ensure environmental conservation
activities, including improving environment-related rules
and regulations and setting goals for environmental burden
reduction. These departments should also conﬁrm that theirenvironmental conservation activities are conducted in a proper
manner and ensure that these activities are maintained andimproved.
4. Hitachi will promote globally-applicable ‘MONOZUKURI’ withthe aim of understanding and reducing environmental burdensat every stage, including product research and development,
design, production, distribution, sales, usage, and ﬁnal disposal.
5. Hitachi will investigate and review the environmental impact
caused in the course of its ‘MONOZUKURI’ processes. Hitachi
will also introduce excellent technologies and materials useful
to safeguard the environment, in other words, to reduce
environmental burdens through energy and resource saving,recycling, chemical substance management, consideration for
the ecosystem, and other measures.
6. Hitachi’s environmental conservation efforts are not only to befocused on observing international environmental regulations
and those of national and local governments, but also on
conserving the environment by implementing voluntary
environmental standards when necessary.
7. Regarding globally-applicable ‘MONOZUKURI’ activities, impact
on the local environment and community are to be considered.
In addition, measures that meet local communities’ requests
should be implemented.
8. Hitachi will educate its employees to take action in order to obey
environment-related laws, raise their global environmental
awareness, and encourage their interest in environmental

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Activities to Preserve Ecosystems
The Concept of Ecosystem Preservation
To promote ecosystem preservation, we
have made the preservation of ecosystems
a pillar of our environmental vision. We
have also incorporated consideration forecosystem preservation into our Action
Guidelines for Environmental Conservation.
Speciﬁc initiatives in this area are deﬁned in
the Hitachi Group Ecosystems Preservation
Guideline and are conducted accordingly.
Corporations depend on ecosystemservices such as the paper used in the
manufacturing stage (use of wood, abiological material) and water use infactories (use of clean water). In order tomaintain and recover these ecosystemservices, we believe that we can contributeto ecosystem preservation both throughbusiness and through contributions tosociety in the area of nature conservation.
Speciﬁcally, for contributions throughbusiness, we are promoting designs
and production that reduce the impact
on ecosystems during the product life
cycle (material procurement, production,transportation, use, recovery, recycling andCorporations and Ecosystems
Ecosystem Services
Provision of raw materials (marine
resources, wood materials, etc.) and water
Contributions through businessappropriate disposal), as well as increasing
the products and services for direct
preservation of ecosystems in such areas aswater and air puriﬁcation. For contributions
to society in the area of nature conservation,
we encourage tree planting and ecologicalsurveys of rare plants and animals by
employees in volunteer programs, alongwith other programs that lead to ecosystempreservation.
Assessing the Corporate Relationshipwith Ecosystems
Corporate Ecosystem Valuation (CEV)
is an assessment methodology used toevaluate both ecosystem degradationand the beneﬁts provided by ecosystemservices, so that improved business decisions
can be made that will lead to ecosystempreservation. The Hitachi Group, as amember of the World Business Council for
Sustainable Development (WBCSD), hashelped to develop the Guide to Corporate
Ecosystem Valuation, as well as translating
it into Japanese. We will perform CEV
within the Hitachi Group on a trial basis
and contribute to the widespread use of
CEV outside the Group in the days ahead.
In 2010, Hitachi, Ltd.’s Representative
Executive Officer and President, Hiroaki
Nakanishi, was appointed co-chair of
the WBCSD Ecosystems Focus Area Core

Reducing the burden on ecosystems
arising from corporate activities
Ecosystems

Corporations
Creating products and services that
preserve ecosystems

Contributions to Society throughNature Conservation

Production dependent on ecosystems
Minimizing the negative impact (reducing burden on ecosystem)
Expanding the positive impact (contributing to ecosystempreservation)

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Team (policy board). The Hitachi Group iscommitted to supporting these efforts andcontributing to ecosystem preservation.
Preserving Greenery at Company Sites
Since Hitachi’s Central Research Laboratory
was built in 1942, the wild naturalenvironment of the site has been preserved,
respecting the instructive message of the
Hitachi, Ltd. founder “not to cut down
good trees but to build around them.” This
landscape continues to be maintained andmanaged today. A pond on the site formed
from the water of natural springs, which are
the source of the Nogawa River, is a habitatfor swans and mallards. Approximately
27,000 trees, including more than 120
species such as zelkova trees and Himalayan
cedars, provide a resting place for over 40
species of wild birds, among them Chinese
bamboo partridges and gray starlings.
To understand the role played by thisnatural environment in preserving theecosystems of the surrounding areas, wehave conducted an analysis of the satellite
images of the area supported by Mitsui
Sumitomo Insurance Co., Ltd. and InterRisk
Research Institute & Consulting, Inc. The
studies showed that because of its large

scale, the greenery of the Central ResearchLaboratory site plays the role of a “coregreen space” necessary for maintaining an
ecosystem, and contributes to the formationof an ecosystem network of the rivers
having their source in the natural springs on
the laboratory site.
The Hitachi Group has many morebusiness sites that retain green space. Sixof these sites were chosen as among the
100 Outstanding Examples of Preservation,
Creation, or Utilization of Accessible
Greenspace by Corporations announced
in ﬁscal 2010 by the Urban Green Space
Development Foundation. By continuing tomaintain these green spaces in the future,
we will contribute to the preservation of
local ecosystems.
Contributions to Society through Nature
Conservation
The Hitachi Group contributes to society
through nature conservation at many
company locations (see pages 108–110).
Protecting endangered species is an
important part of maintaining biodiversity.
Working with the NPO Earth Watch Japanevery year since ﬁscal 2007, we have taken
part in habitat surveys of the Reverdin’sBlue butterﬂy (Lycaeides argyrognomon), an
endangered species, around Mt. Fuji.

Koganei Park
Hitachi Central ResearchLaboratory – Musashi
Kokubunji Park – KuroganeParkMusashino Park
– Nogawa Park

Fuchu no mori –Heiwa no moriTamagawa
Ecosystem network diagram in the Musashino area around theCentral Research Laboratory (example of satellite image-based
analysis; data provided by Eco-Asset Consortium)

Reverdin’s Blue butterﬂy

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In cooperation with local residents,
fallow farmland and forests that had been
overrun with bamboo are being restored,
turning them into rural landscapes full oflife. Experiments are also being carried out
using IT systems for information gatheringand observations of living creatures to ﬁnd
out how IT can be used in the future forpreserving ecosystems.

Habitat survey for Reverdin’s Blue butterﬂy

IT Eco Experimental Village
The Information & Telecommunication
Systems Company, Hitachi, Ltd. opened an
IT eco experimental village in Kanagawa
Prefecture in April 2011 as part of the
GeoAction 100 plan, a nature restoration
project intended to contribute to theenvironment through IT.

IT eco experimental village (April 2011)

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Environmentally Conscious Products andServices

Environmentally Conscious Products and Services
We assess the environmental burden of
products and services at the design anddevelopment stage, designating those productswith a reduced environmental burden as EcoProducts. In ﬁscal 2010, 60 percent of our sales
were for Eco-Products.
We are moving ahead with designingand developing environmentally conscious
products to meet the goal set in our longterm Environmental Vision 2025 of making all
Hitachi products Eco-Products by ﬁscal 2025.

Key Indicators
Trend in the Eco-Product Sales Ratio
(%)
60

60
53

55*
50

47
38

40
31
30

*FY 2010 target
0

Increasing the Ratio of Eco-Products
In 1999, we introduced a Design for Environment(DfE) assessment system (see page 064) that sets
speciﬁc environmentally conscious criteria fordesigning and developing products and services tominimize their environmental burden. Products thatmeet DfE standards are designated as Eco-Products.
One of our goals is to increase the Eco-Productsales ratio, or the ratio of Eco-Product sales to total
product sales.
In ﬁscal 2010, the number of models designatedas Eco-Products rose by 1,069 to 9,456. Thisbrought the Eco-Product sales ratio to 60 percent,topping our goal of 55 percent. Key factors driving
the improved sales ratio were the registrationof more Eco-Products for systems, software, andservices, as well as business growth in construction
machinery and automobiles.

2006

2007

2008

2009

2010
(FY)

97

98

98

100

84

86

85

86

Eco-Product Increase(No. ofmodels)78
10,000

(%)
100*

9,456

80*

8,387
60

8,000
6,954
5,741

6,000

40

4,900
20

4,000

0

Next Steps
Our Third Environmental Action Plan (FY 2011–2015) sets the goal of boosting the Eco-Products
sales ratio to 65 percent by ﬁscal 2015. Given thegrowing localization of design, production andsales in recent years, our particular focus is to use
DfE assessments to promote more Eco-Productdevelopment outside Japan.

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94

2006

2007

2008

2009

2010
(FY)
Number of Eco-Product models (*FY 2010 target)
Eco-Product registration ratio (Product categories:
information and telecommunications systems, digital
media, and consumer products)
Eco-Product registration ratio (Product categories:
power systems, social infrastructure and industrial
systems, high functional materials and components)
The Eco-Product registration ratio is the ratio of Eco-Productsales to sales of all products for which DfE is applicable. Up
until ﬁscal 2010, we were increasing the number of EcoProducts in speciﬁc product areas, but from now on we
intend to make all our new products Eco-Products.

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How a DfE Assessment Is Performed
Under the DfE system, the environmental load
for each product life cycle stage—from material
procurement to production, distribution, use, anddisposal—is quantitatively assessed using the eight
DfE assessment criteria such as environmental
protection and energy efficiency, with results
recorded as a level from 1 through 5. If a productscores at least equal to or more than level 2 (thereference level before the latest major modelchange) in all 8 criteria and its average over all thecriteria is level 3 or more, it is designated as an

Eco-Product.
Management of the whole environmentallyconscious design and development process iscoordinated using the Hitachi Group Ecodesign
Management Guidelines. Based on the IEC 62430
international standard on generic procedures forenvironmentally conscious design, the guidelines
require divisions, such as business planning, design,
procurement, manufacturing, and quality control,
to be environmentally conscious and keep records
on processes and results. This includes the use of
DfE assessment and Eco-Product development.

How a DfE Assessment Is Performed
Design for Environment

Implementation of Assessment for DfE
Non-qualifying products

Eight Assessment
Criteria (example) 1. Mass and volume reduction
8. Packaging
2. Long-term usability
materials

Product Life Cycle
Resource conservation
Material
Manuproduction facturing

Distribution

Collection
and disassembly

Use

Eco-Product designation
Qualifying products

DisposalReuse or recycle

7. Information
provision

3. Recyclability

6. Energy saving

4. Ease of dismantling &treatment
5. Environmental protection

Eight Criteria Used to Quantitatively Assess Environmental Load at Each Stage of the Product Life Cycle
DfE assessment criteria (examples)

Life cycle stage (examples)

Focal points of assessment (examples)

1. Mass and volume reduction

Material production, manufacturing

Size and weight reduction, yield of parts and materials, assessment of mass and volume reduction of
the product2. Long-term usability

Use

Upgradability, ease of maintenance and repair, durability, reliability

3. Recyclability

Reuse or recycling

Selection of materials and parts that are reusable or recyclable, use of recycled resources, recyclabilityrate

4. Ease of dismantling & treatment

Manufacturing, collection anddisassembly

Structure for easy disassembly, ease of separation, reduction of disassembly time, easy collection
and transportation of product, safety in treatment, ease of crushing treatment

5. Environmental protection

Material production, manufacturing, Environmental protection of parts and units, safety of equipments and materials for maintenance,collection and disassembly, disposal environmental protection in manufacturing process, environmental protection for facilities

6. Energy saving

Material production, manufacturing,use, collection and disassembly,
Energy-saving design of products, energy saving in production process, energy saving in distribution
disposal

7. Information provision

Use, collection and disassembly

Information provision to requesting parties, mechanism for information provision

8. Packaging materials

Distribution

Reduction in mass and volume of packaging materials, recycling of packaging material, ease ofcollection and transportation of packaging materials, environmental protection in treatment and ﬁnal
disposal of packaging materials

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Fiscal Year 2010 Breakdown of Eco-Products by Sector and Examples

SectorInformation &Telecommunication
Systems

Electronic Equipment &Systems, Components &Devices

Power Systems, Social
Infrastructure & Industrial
Systems, Construction
Machinery, Automotive
Systems

Digital Media & Consumer
Products

High Functional Materials& Components, Other

Breakdown(sales ratio)

18%

17%

35%

9%

21%

Transmitters

Transmission electron
microscopes

Highly efficient gas turbines

HD televisions

Eco material cables

Monitoring software forIT systems

TFT LCD modules

Amorphous transformers

Washer-dryers

Anisotropic conductive ﬁlms

Key products

Examples of Eco-Products
Disk Array†1
Opening the way for efficient, power-saving data center operations• Product: AMS 2500
Top model in the Hitachi Adaptable Modular Storage 2000 family of
mid-range disk arrays
Information & Telecommunication Systems Company, Hitachi, Ltd.
• Environmentally conscious features and characteristics· Hitachi’s Tray Power Saving technology enables stopping power

High-Performance Steel for Diecasting die
Improves durability of molds and improves resource use• Product: DAC-MAGIC™
Advanced die steel for diecasting (Hitachi Metals, Ltd.)• Environmentally conscious features and characteristics· DAC-MAGIC diecasting die steel retains the toughness†1 of traditional
die casting steel but has greater strength at high temperatures.

supply to extra disk drives not in use, achieving a power saving of up
to 75 percent across the whole system, compared with times when
this feature is not used.
· Hitachi Dynamic Provisioning, volume capacity virtualization reduces
the number of hard disk drives by maximizing capacity. This means,for example, if 30 TB is initially used for an eventual capacity of 40
TB, power consumption can be reduced by around 20 percent before
the extra 10 TB is required (in the case of a Serial Attached SCSI 300
GB drive in an AMS2300 model).
• Third-party evaluation
Received the Green IT Promotion Council Chairman’s Award in the
Energy Consumption of IT category of the Green IT Awards 2010†2†1 Disk array: A data storage equipment using a redundant array of
independent disks (RAID) attached externally to a computer; it boosts
storage capacity, performance, reliability, and availability.
†2 Green IT Awards: Awarded to IT equipment, software, and services,
as well as proposals using them, which achieve outstanding energy
savings (from the Green IT Promotion Council, backed by METI).

· Makes more effective use of mold steel by extending the life span 1.5
to 2 times more than traditional diecasting die steel.
· Greater strength at high temperatures, as well as greater heatcrack resistance, helps boost the productivity of aluminum die
cast products which opens the way for lighter cars with lower fuelconsumption and more recyclability.
• Third-party evaluation
Received the Best 10 New Product Prize†2 at the 53rd Best 10 New
Product Awards in 2010
†1 Toughness: Steel’s resistance and ability to withstand external forces†2 Best 10 New Products Awards: Sponsored by Nikkan Kogyo Shimbun,
a leading newspaper, for new products meeting one of these criteria:
an original invention with major impact in Japan and other countries;
world-leading performance; a major contribution to enhancing
Japan’s industrial technology; or a pioneering role in promoting theadvancement of industry or society.

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Development of Super Eco-Products
Eco-Products that meet even more demanding
requirements are designated as Super Eco-Products.
Super Eco-Products must have either a global
warming prevention factor or resource factor of
10 or more, or be leaders in their industry for theirenergy efficiency standard achievement rate†1 orother similar factors, or be highly rated outside
the company. Factor 10 or more indicates that the
product has a global warming prevention efficiency
or resource efficiency of at least ten times morethan reference products that were sold in ﬁscal
2000 in principle. We are committed to increasing
the number of Hitachi Super Eco-Products byimproving the Super Eco-Product ratio, which is theratio of Super Eco-Products to total Eco-Productsales.
In ﬁscal year 2010, an additional 182 models
were designated as Super-Eco Products, bringing
the total to 721. However, booming Eco-Productsales produced a relatively low Super Eco-Productratio of 26 percent, under the 30 percent target.
†1 Energy efficiency standard achievement rate: Based on the Act on the
Rational Use of Energy (also known as the Energy Conservation Law), thisvalue indicates the rate of achievement for energy efficiency targets of certain
home appliances. The target values are deﬁned using the most energy
efficient products available at the time.
†2 Amount of resources used over the product’s life cycle: amount of new
resources + discarded resources

Global Warming Prevention Factor Calculation

The global warming prevention factor is the amount of improvementin efficiency of global warming prevention compared with a reference
product. The efficiency of global warming prevention is based on
the concept of environmental efficiency that balances the valueof products contributing to the quality of life and the reduction of
their environmental load. We gauge the improvement in productvalue by function and life span, using the amount of greenhousegases emitted over the product life cycle to calculate the reduced
environmental load.
Deﬁnition of efficiency of global warming prevention
Product function
Efficiency of Global
Warming Prevention

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

The resource factor is the amount of improvement in resource
efficiency compared with a reference product. Drawing on the same
concept as global warming prevention efficiency, we gauge theimprovement in product value by function and life span, using theamount of resources used over the product life cycle†2 to calculate thereduced environmental load.
Deﬁnition of resource efficiency
Resource Efficiency

Products that meet
DfE assessment
criteria

Eco-Products

Products

Product function

Product life span

∑ (life cycle resource use × value

coefficient of each resource)

Deﬁnition of resource factor

Hitachi’s Eco-Product System

Super Eco-Products

Product life span

Volume of greenhouse gas emissions
throughout the product life span

Resource Factor· Either a global warming
prevention factor or a resource
factor of 10 or more
· Industry leading level· Highly regarded outside Hitachi

Resource efficiency ofevaluated productResource efficiency ofreference product

Next Steps
Our Third Environmental Action Plan (FY 20112015) raises the environmental performancestandards for the designation of Super-Eco Products
even higher, introducing a new designation:
Eco-Products Select. The reference products used
to calculate the global warming prevention andresource factors have been changed from ﬁscal
2000 products to ﬁscal 2005 products. Productfunction, one element used in calculating global
warming prevention efficiency and resource
efficiency, will now be assessed based on the

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Environmentally Conscious Products andServicesfunction creating the added value most vital to that
product. We have also introduced a new condition:
the carbon emission reduction must be at least 50
percent greater than ﬁscal 2005 products. Throughthese changes, we aim to lift the environmental
performance of our product development to newheights, gaining Eco-Products Select for 20 models byﬁscal year 2011 and 100 models by ﬁscal year 2015.
Super Eco-Products that meet these newstandards will be designated as Eco-Products Select.
Addressing Carbon Footprint
The Carbon Footprint of Products (CFP) isthe carbon equivalent of the total amount ofgreenhouse gases (GHGs) emitted over the entire
life cycle of a product or service—from procurementof raw materials through to disposal and recycling.
It is displayed on an easily understood label.
This allows people to compare the CFP of similar
products and services to select the product orservice with the lowest environmental burden, andalso helps businesses supply products and services
to improve their own global warming prevention
efforts.
We participated in the CFP Pilot Project run
by the Japanese Ministry of Economy, Trade andIndustry (METI) and other ministries, and in ﬁscal
year 2010 acquired permission to use the CFP label
for our interactive whiteboard (StarBoard) based
CFP Label for the Interactive Whiteboard StarBoardbased Teleconferencing System

The top ﬁgure (4,750 kg) is the amount of GHGs
that will be emitted over the product’s entire life
cycle, where it is used in the following scenario
during use for ten years.
Product scenario
Hitachi Solutions holds a 1.15-hour conference involving six people 0.89 times
per week (53.2 hours and 46.3 times per year) over the 500 km distance
between Tokyo and Osaka. Details of the system setup are available on theofficial CFP Web site (http://www.cfp-japan.jp/).
GHG emissions per conference hour: 8.93 kg
The 8.93 kg ﬁgure is the amount of GHGs emitted over the product’s entire life
cycle where it is used for one-hour conferences based on this scenario.
*This ﬁgure was calculated and veriﬁed based on a particular scenario; if the
scenario changes, so will the ﬁgure.

teleconferencing system.
Disclosure of Environmental Information
In 1999, Hitachi introduced an environmental
information labeling system that uses symbols
and data sheets to provide environmental
information on environmentally conscious products.
Hitachi’s environmental mark indicates that a DfE
assessment has shown the product to be an EcoProduct, informing stakeholders that the product’s
environmental burden has been highly improved.
We also use our Web site to disclose environmental
information, such as data sheets that include power
consumption for each environmentally conscious
product and case studies of products that helped
improve environmental efficiency.

Hitachi’s environmental markWEB Lists and datasheets of Eco-Products
http://www.hitachi.com/environment/ecoproducts/
WEB Environmental Efficiency of Hitachi Products Based on Factor X
http://www.hitachi.com/environment/library/pdf/factorx_en.pdf

Recycling Product Resources
To promote resource recycling, the Hitachi Groupis building used product recovery systems anddeveloping recycling technologies.
Developing Rare Earth Recycling Technologies
Rare earth magnets containing rare earths†1 canbe used at very high temperatures and can exert astrong magnetic force. Since these properties makeproducts highly energy efficient, rare earth magnets
are in increasing demand for cars, generators andconsumer appliance motors, as well as for harddisk drives (HDDs). However, the uneven global
distribution of rare earths makes it vital for us todevelop alternative materials, as well as to secure astable rare earth supply by, for example, recovering
these resources from products.
Hitachi has been working since ﬁscal 2008 torecycle rare earths by developing technologies to

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remove the rare earths from the magnets in harddisk drives and compressors.
In ﬁscal 2010, we developed a dedicated device
to separate and recover rare earth magnets fromused HDDs and compressors, and we succeededin extracting rare earths from magnets throughan experimental dry process that uses a special
extraction medium.†2 This extraction device reduces
the amount of time required to separate andrecover rare earth magnets from used products
to around one-tenth of the time for doing thisby hand. In addition, because the new process
does not employ the chemicals now often used,recycling will be both cheaper and have a smaller
environmental burden.
The next steps will be to conduct more veriﬁcation
experiments using the dry process to extract rareearths, and to investigate the reuse of the rareearths from rare earth magnets for launching the fulloperation of rare earth recycling in 2013.

of resources. In ﬁscal year 2010, we set up the
Product Recycling Service Center to bring in andrecycle even more used IT products. At this center,we consult with sales and other divisions to devise
plans for recovering end-of-life IT products from
corporations. This includes recycling or purchasing
for reuse, according to the type and condition of
the product. In ﬁscal year 2010, Hitachi recoveredaround 5,700 tonnes of used IT products throughthe Hitachi Recycle Hotline and product recovery
services. Looking ahead, we plan to improverecycling using the technologies we are currently
developing for extracting rare earths from used
HDDs.

†1 Rare earths: 17 elements including lanthanum and scandium. Rare earthmagnets are magnetic alloys of rare earth elements such as neodymium anddysprosium.
†2 Undertaken using a FY 2009 New Resource Recycling Promotion Project
Subsidy (Urban Resource Recycling Promotion Project: Development oftechnologies for recycling rare earths from high-performance magnetic
motors, etc.)

Japanese government
Emission rights
amortization accountHDD disassembly
deviceSeparation
using dedicateddeviceRare earthmagnet recovery

Compressor
Compressors disassembly
deviceCarbon Offset Service
To prevent global warming, reducing carbon
emissions needs to be considered not justwhen a product is manufactured or in use but
across the entire product life cycle, including
reuse, recycling and disposal. We meet thisneed by adding the Carbon Offset†1 Service
to our reuse and recycling package.
Hitachi Group Carbon Offset Service

Rare Earth Recycling Process

HDDs

TOPICS

Voice coilmotorsRare earth
extraction

Emissionrightsamortization

Dry process

Rare earth

Hitachi Capital
Corporation· Procurement andprovision of emission
rights

Rotors andmagnets

Customers
Carbon offset
certiﬁcate

Used ITequipment

Emissionrights Hitachi Transport
System, Ltd.
· Collecting and shipping ofused IT equipment

Used ITequipment

Product Recycling in the Information/
Telecommunications Field
We set up the Hitachi Recycle Hotline in ﬁscal
year 2002 to provide recovery and recycling ofcomputers and peripheral devices via the Internet
and other methods. Over the nine years up toﬁscal year 2010, we recovered 284,000 units(3,090 tonnes) and have recycled 2,090 tonnes

Hitachi GroupThe Hitachi Group offers a carbon offset
service to customers using the emission
credit to compensate for carbon emitted
in the course of reusing and recycling used
IT equipment. We handle the collecting,

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Tokyo Eco Recycle Co., Ltd.
· Disassembly, separation, recycling
Hitachi Capital Services Co., Ltd.
· Purchase, reuse

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Environmentally Conscious Products andServicesshipping and disposal of used IT equipment
and also procure and pass on the emission
credit, for providing the customer with acarbon offset certiﬁcate. We transfer the
carbon credit to the Japanese government
free of charge, helping Japan meet its Kyoto
Protocol commitments.
In ﬁscal 2010, we arranged 17 carbon
offsets.
†1 Carbon offset: Greenhouse gas emissions not easily reduced
by direct measures are offset by purchasing the equivalentgreenhouse gas reduction or absorption amount achieved inanother location or by another company, or by undertaking
projects that achieve emissions reductions and absorption.

procedures to ensure compliance with REACH
and other regulations. Brieﬁngs are held in Japanand other countries to ensure that regulations areunderstood and actions are taken throughout the
Hitachi Group and to educate the employees who
are responsible.
Registration for the EU’s REACH regulations wascompleted by November 2010 for the substancesand compounds the Hitachi Group exports to
Europe for more than 1,000 tonnes per year.
Investigations and preparations are also underway
on submitting the REACH notiﬁcation on particular
substances in articles by the June 2011 deadline.
†1 REACH regulation: the European Union’s regulation on Registration,
Evaluation, Authorisation and Restriction of Chemicals (EU)

Status of product packaging recycling
http://www.hitachi.com/environment/activities/data/wrapping.html
WEB

Managing Chemical Substances
Contained in Products
To manage the chemical substances containedin products, we created Regulations forEnvironmental CSR-Compliant Monozukuri in 2005.
This helps us to manage chemical substances fromproduct development and design to procurement,
production, quality control, and sales. To voluntarily
control chemical substances, we have deﬁned 13
prohibited substances (Level 1) and 13 controlled
substances (Level 2), including potential REACH†1
substances added in 2009. We have also beenusing our Integrated Management System for
Chemical Substances Contained in Products
created in 2005, as a way to gather and send out
information about chemical substances containedin products. We will continue to revise and improve
our regulations and product information gathering

Working with the Supply Chain
Working closely with suppliers and customers, wehave been gathering and sending out information
about chemical substances across the supply
chain via the Integrated Management System for
Chemical Substances Contained in Products. In
July 2009, we linked this management system tothe cross-industry JAMP†1 information exchange
platform via Hitachi’s enterprise cloud service TWX21.†2 The direct connection between customer andsupplier databases has opened the way for fast,
efficient information collection and transfer acrossthe entire supply chain. At the end of March 2011,
chemical substance information for 890,000 partsand products was registered in our integrated
management system.
†1 JAMP: Joint Article Management Promotion-consortium†2 TWX-21: Cloud-based business service providing an intercompany
e-marketplace

Hitachi Group’s Voluntarily Controlled Chemical (VCC) SubstancesClassiﬁcation

Application

Substance (Group) Names

Level 1
Prohibited
substances

Chemical substances that the Hitachi Group prohibits frombeing included in procured products (chemical substancesbanned or restricted for use in products, including packing
materials, by domestic or foreign regulations and potentiallyused for procured products for the Hitachi Group)

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

Level 2Controlled
substances

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

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

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Customers/society

Suppliers

Integrated Management System for Chemical
Substances Contained in Products
Design for
Reduction of Risk management
Green
Environenvironmen- (traceability of inprocurement
ment (DfE)
tal burden dividual products)

Cities, which have been attracting attention,
particularly in emerging nations, as a conceptual
framework for building environmentally conscious
cities.

Collection database
Managing the total
amount of designatedchemical substancesby product and business

TWX-21

Disclosing environmental
information

Registration
database
Managing theamount of designatedchemical substances
contained in a productby material and part

Communicate

Survey/register

Environmental information

Integrated Management System for Chemical
Substances Contained in Products

Survey/register,
communicate

JAMP information exchange platform (JAMP-GP (Global Portal))

Materials
manufacturers

Parts manufacturers

Final productmanufacturers

Proposing international standards for Smart Cities at a WBCSD meeting

Linking our integrated management system with the JAMP Global Portal
enables a more efficient exchange of chemical substance information overthe supply chain

Participating in the Development ofInternational Standards
We work with the following international standards
organizations for environmental issues andenvironmentally conscious product technology:
the International Organization for Standardization(ISO), Ecma International, the International
Telecommunications Union (ITU-T), the World
Business Council for Sustainable Development(WBCSD), and the International ElectrochemicalCommission (IEC). This helps us discover global
business opportunities and ensure our products’
competitiveness. In ﬁscal 2010, the IEC TechnicalCommittee for Environmental Standardization
for Electrical and Electronic Products and Systems(TC111), which is chaired by Hitachi, Ltd., adopted
Japan’s proposal on a method for quantifying
greenhouse gases emitted across the productlife cycle. Hitachi also serves as a co-chair for the
WBCSD Ecosystems Focus Area Core Team andsupported its creation of the Guide to Corporate
Ecosystem Valuation (see page 060). In recent
years, Hitachi has been making proposals for thedevelopment of international standards for Smart

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Environmentally Conscious Production
To reduce the environmental burden of
business activities, we have set targets
for reducing greenhouse gas emissions,waste, chemical substance emissions, andwater use. Facilities that show a high levelof environmental consciousness as well as
outstanding results in these areas receive
Super Eco-Factory & Office certiﬁcation as away of promoting environmentally conscious
production and encouraging environmental
activities.

Creating Super Eco-Factories andOffices
Super Eco-Factory & Office certiﬁcations are given
to facilities that have achieved an industry-leading
environmental load reduction. We certify thoseSuper Eco-Factory & Office Certiﬁcation Criteria

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

Eco-Factories &OfficesCertiﬁed as achieving industryleading environmental load
reduction
1. Energy efficiency
2. Improvements in resource
recycling
3. VOC emissions reduction
4. Water recycling
5. Renewable energy use
6. Other (special
commendation or use oforiginal technologies tomeet targets)

Offices and Factories

facilities as Eco-Factories & Offices that have both
met their targets for the ﬁscal year under our
GREEN 21 system for comprehensively evaluating
environmental action (see pages 083–084) andhave performed above the given criteria in areas

Examples of Super Eco-Factories

Hitachi Elevator Motor (Guangzhou) Co., Ltd.
Hitachi Elevator Motor in Guangzhou, China, makes hoists, a core component of elevators. To saveenergy, production efficiency has been boosted on production lines, which use many types of machine
tools. The plant has also promoted introducing high-efficiency air conditioners, LED lighting, and otherenergy-saving devices. For example, all 1,360 ceiling lights are now LED. Also, a new building which
was added due to the need for production growth is designed for optimal use of natural light inside
the building to reduce power consumption. As a result, the ﬁve-year average energy consumption rate
per unit for ﬁscal 2010 was improved by 10 percent. Other environmentally conscious manufacturinginitiatives include changing the type of forklifts used in the plant from diesel engines to electric (battery)
motors, and using adsorption instruments to lower VOC emissions during the painting process.

Hamura Works, Hitachi Kokusai Electric Inc.
The Hamura Works designs and manufactures wireless communications systems, and has many
production areas to accommodate manufacturing of a wide range of the products. Hamura Works has
cut power usage by improving the layout of assembly areas and by sharing facilities with other Group
companies located nearby. Adoption of energy-saving machinery and equipment, such as high-efficiency
Hf inverter fluorescent lights and air conditioners, enabled Hamura Works to improve its five-year
average energy consumption rate per unit by 8.2 percent for ﬁscal 2010.
Waste paper, including documents on speciﬁcations and other conﬁdential documents, accounts
for more than 20 percent of the Hamura Works’ total waste. In ﬁscal 2010, the Works achieved zero ﬁnal
waste disposal rate through rigorous sorting and recycling, including using wet shredders so that waste
paper can be recycled into copy paper.
The works has more energy-saving plans, including using LED lamps on employees’ desks, andshifting the responsibility of switching on and off the fluorescent lights in the work area from the
managers to individuals. The amount of power used across the whole Works will also be monitored using
a demand controller.

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such as energy efficiency, improvements in resource
recycling, and volatile organic compound (VOC)
emissions reduction. Our target was to bring up
to 30 facilities, or 10 percent of the approximately
300 facilities eligible for certiﬁcation, to the level ofSuper Eco-Factories & Offices by ﬁscal 2010, and thefacilities themselves have worked hard to achieve ahigh level of load reduction in order to be certiﬁed.
As a result, three more facilities were named Super
Eco-Factories & Offices in ﬁscal 2010, bringing thetotal to 35 (23 in Japan and 12 outside Japan).
To encourage environmental conservation,
information on initiatives at these facilities areshared within the Group, along with energysaving and water-processing technologies thatare relevant to other Group companies. Facilities
yielding outstanding results after introducing
Hitachi Group energy-saving products conduct
factory tours to demonstrate these products topeople within Hitachi and to others.
Next Steps
As part of our Third Environmental Action
Plan, we will review Super Eco-Factory & Officecertiﬁcation criteria and mechanisms, launchinga new designation: Eco Factory & Office
Select. Certiﬁcation criteria will be developed
individually according to the characteristics of ourmanufacturing (factory) and non-manufacturing(office) divisions. For factories, standards will beraised for energy efficiency, renewable energy use,
as well as water recycling and other Super EcoFactory & Office certiﬁcation criteria used to date.
For offices, evaluation criteria will be established inareas such as energy saving for lighting, renewableenergy use, and a building’s overall environmental
protection.
To maintain and raise the level of environmental
activities in Eco Factories & Offices Select, certiﬁed
facilities will be re-evaluated every year to check
whether their performance for that ﬁscal year stillmeets the certiﬁcation criteria. Our goal is for every
in-house company and Group company to have atleast one facility certiﬁed by ﬁscal 2015.
Facilities already certiﬁed as Super Eco-Factories &Offices will be re-evaluated based on the new criteria.

Reducing Greenhouse Gas Emissions
We are promoting reduced energy-related CO2
emissions from production activities as well as CO2
emissions from shipping to help cut greenhousegases and prevent global warming.
To reduce energy-related CO2 emissions in Japan,
we intend to cut CO2 emissions by 12 percent fromﬁscal 1990 by ﬁscal 2010. Outside Japan, we aim
to improve CO2 emissions by 5 percent per unit ofproduction from ﬁscal 2003, a goal reﬂecting theincrease in both the number of production sites
outside Japan as well as the increase in capacityof those sites. In Japan, our sustained investment
programs in energy saving include the introductionof energy efficient machinery and switching toalternate fuels. Outside Japan, we have improved
production processes and also introduced theknowhow for energy savings which proved
outstanding in Japan and resulted in improvementsin efficiency of energy use. The amount of CO2
emissions rose in ﬁscal 2010 due to the increase inproduction of auto-related parts in Japan as wellas production growth in China and Southeast Asia
in particular. Due to ongoing programs to increase
Key Indicators
Trend in CO2 Emissions in Japan(kt CO2)

94

100
88

4,000

86
3,322

75
3,104

2,805

3,000

79

88*
75

2,893
2,482

2,630
50

2,000
25

1,000

0

Hitachi Group Sustainability Report 2011
http://www.hitachi.com/environment/

(%)

100

1990

2006

2007

2008

2009

2010
(FY)

CO2 emissions
Normalized CO2 emissions*FY 2010 target value
Emissions were calculated using CO2 emission coefficientsfor each electric power company of each ﬁscal year, as
published by the Ministry of the Environment072

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efficiency, however, we cut domestic CO2 emissions
to 79 percent of the ﬁscal 1990 level in Japan, while
outside Japan, CO2 emissions per unit of production
improved by 7 percent compared with ﬁscal 2003.
Key Indicators
Trend in CO2 Emissions outside Japan(kt CO2)

100

98

98

(%)
100

97

95

93

95*

1,694

90

2,000
1,483

1,500

1,419

1,407

1,242

1,397

80

1,000

70

500

60

0

2003

2006

2007

2009

Fuel Switching Initiative
Based on our plan to reduce heavy fuel oil use
across the entire Group to one-tenth or lessfrom ﬁscal 2005 by ﬁscal 2012, since 2006, we
systematically switched to natural gas in the
10 plants which accounted for 80 percent of
the Group’s heavy fuel oil use in ﬁscal 2005. In
ﬁscal 2010, Hitachinaka General Hospital was
also switched entirely to electricity when it wasrenovated. This and other measures have reduced
heavy fuel oil use by around 45% compared withthe ﬁscal 2005 level.
Trends in Fuel Use Ratios

Breakdown by Region
2003

0

2010
(FY)
Normalized CO2 emissions per unit
production*FY 2010 target value

CO2 emissions
EuropeAmericas
China
Asia

2008

investment. Over that ﬁve-year period, we invested
29.7 billion yen in high-efficiency equipment
and fuel switching, achieving a 290,000-tonne
reduction in CO2 emissions. In ﬁscal 2010, we
installed solar power generation equipment in two
more factories and made progress on switching
to LED tube lamps for a drastic reduction in CO2emissions.

(kt CO2)
2006

2007

2008

2009

2010

Europe

20

5

4

4

6

9

Americas

369

524

443

416

361

473

China

339

436

476

510

554

626

Asia

514

518

484

489

476

586

Total

1,242

1,483

1,407

1,419

1,397

1,694

Town gas
LNG*
74%

Heavy oil Kerosene
11%
FY 2012(planned) 4%

Liqueﬁed petroleumgas (LPG)
11%

FY 2010

28%

9%

47%

16%

FY 2009

26%

9%

48%

17%

49%

FY 2005

17%

12%

22%

*Liqueﬁed Natural Gas

Improving Energy Efficiency through Sustained
Investment in Energy Saving
As part of our Second Environmental Action Planfor ﬁscal 2006–10, we implemented sustained

Global Energy Conservation Diagnoses
The Hitachi Group conducts energy conservation
diagnoses worldwide. Group engineers with

Energy Conservation Investment and CO2 Emission
Reduction in Japan
2006

2007

2008

2009

2010

Energyconservation
investment

53

64

77

52

51

CO2 emission
reduction

58

102

50

44

32

(unit: investment (billion yen), emission reduction (kt))
Local energy conservation diagnoses

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advanced knowledge of the total equipment (airconditioning and boilers, for example) propose
measures to improve energy use that will reduce
CO2 emissions. Especially now when more factories
are being built in China and Southeast Asia andwhen Japanese production lines are being moved
there, CO2 emissions from production facilities
outside Japan account for around 40 percent
of total Group emissions. This is making energy
conservation an urgent task. We provide facilities
outside Japan with energy conservation support
programs to encourage them to make their own
daily and ongoing improvements. Hitachi experts
with energy conservation knowhow developed inJapan have also gone to the Philippines, Malaysia
and other countries to conduct energy conservation
diagnoses, identifying wasteful energy use andintroducing high-efficiency equipment upgrades
to improve energy conservation. In ﬁscal 2010,energy conservation diagnoses were conductedin 12 Japanese plants and 4 plants in Thailand,bringing the number of factories diagnosed sinceﬁscal 2005 to more than 50. We will continue
to implement these global energy conservation
diagnoses, outside Japan in particular, to spreadenergy conservation expertise and to train energy
conservation personnel.

Reducing Transportation Energy
We have worked to curb CO2 emissions fromtransportation toward the target of improving
transportation energy consumption per real unit ofoutput by 11 percent from ﬁscal 2006 by ﬁscal 2010.
Key steps to reach this goal include reducing productsizes, weights, and packaging to improve truck load
efficiencies; making modal shifts from truck to railand ship transportation; shipping complete rather
than part orders for large products; and combining
truck, rail, and ship transportation to boost efficiency.
As a result, we improved transportation energy
consumption per real unit of output by 29 percent
in ﬁscal 2010 and reduced CO2 emissions by 63,000
tonnes from ﬁscal 2006.
Key Indicators
Trend in CO2 Emissions from Transportationin Japan(kt CO2)

(%)

100

100
91

90

188

200

90 89*
74

71

174

70
155

150

50
128

125
30

100

Introducing Renewable Energy
We are committed to using solar and wind power,
and other renewable energy sources. In ﬁscal 2010,
we introduced a 170 kW solar power generator,
bringing the amount of power generated fromrenewable sources to 1,245 MWh from solar power
and 76 MWh from wind power. We have alsobought Green Power Certiﬁcations from Japan
Natural Energy Company for around 1,000 MWh ofnatural energy every year, using it for Hitachi, Ltd.
offices and for trade fairs, etc.

10
0

2006

2007

2008

2009

2010
(FY)

0

CO2 emissions
Normalized transportation energy consumption
per real unit of output *FY 2010 target value

Trends in Transportation Mode Ratios in Japan
Rail

MarineTruck

3.9% 8.8%

0.1%
84.4%

FY 2009
4.8% 10.7%

0.1%
78.5%

FY 2008
12.8% 8.6%

0.1%
74.0%

FY 200716.3% 9.6%
3.3% 6.2%
Green Power Certiﬁcation symbol

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

0.1%
90.1%

FY 2006

Hitachi Group Sustainability Report 2011

Air

87.2%

FY 2010074

0.4%

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Next Steps
Key Indicators

To promote energy-related CO2 emission reduction,
our Third Environmental Action Plan (FY 2011–15)
sets the goal of reducing CO2 emissions per unit ofproduction across all Group production facilities by
6 percent from ﬁscal 2005 by ﬁscal 2011 and by 10
percent by ﬁscal 2015. For production facilities inJapan, the target is a 16-percent reduction in CO2emissions from ﬁscal 1990 by ﬁscal 2011, and a
20-percent reduction by ﬁscal 2015. To reach theseoverall targets, each in-house company and Group
company has been assigned a target according to
growth in their particular business area.
Steps taken toward achieving our targets include
systematic fuel switching and using high-efficiency
machinery. We will also create a mechanism formonitoring monthly CO2 emissions at every in-houseand Group company and assess the status of reachingthat ﬁscal year’s goals, bolstering the PDCA cycle.
To curb CO2 emissions from transportation, weare aiming for an ongoing reduction of 1 percent
per year in transportation energy consumption perunit of output. We will press ahead with modal shifts
and product weight reduction to cut transportationenergy consumption per unit of output in Japan by
12 percent from ﬁscal 2006 by ﬁscal 2011, and by 15
percent by ﬁscal 2015.

Trend in Amount of Waste Generated(kt/year)

(%)

100

100

85
78
80
1,000

75

76

76

75
75*

75
67

870
784

760

67

737

750

50

738
608

500

25

250

0

2000

2006

2007

2010
(FY)
Normalized amount for total-waste
reduction group
Normalized amount for waste-perunit production reduction group

Amount of waste
generated
EuropeAmericas
China
Asia
Japan

2008

2009

* FY 2010 target value(kt/year)

Breakdown by Region
2000

0

2006

2007

2008

2009

2010

Europe

2

2

0

0

1

1

Americas

113

73

52

53

38

54

China

39

52

58

59

51

80

Asia

64

60

60

61

54

78

Japan

652

597

590

564

464

525

Total

870

784

760

737

608

738

Trend in Resource Recycling Rate in Japan

Reducing Waste
We reduce and recycle waste materials generated
during manufacturing, including valuable resources(reusable resources with residual value). To meetour goal of reducing waste by 25 percent fromﬁscal 2000 by ﬁscal 2010, we have promoted
the reuse of resources from manufacturing byrecycling material residue as raw resources, aswell as by ﬁltering and reusing cleaning oil. These
technologies and measures were shared across theGroup, enabling the total-waste reduction groupto achieve a 33-percent cut by ﬁscal 2010 and thewaste-per-unit production reduction group toachieve a 25-percent reduction, both meeting theyear’s targets.
We will also recycle waste into resources rather
than disposing of it in landﬁlls. Using the Group’s
3R load index to assess the environmental load(terajoules)
14
4,000

(%)

20

13

13

20
10*

0
0

3,000

2,913
2,496

2,541

2006

2007

2,401

2,342

2008

2009

2,542

2,000

1,000

Hitachi Group Sustainability Report 2011
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18

0

2005

3R loadResource recycling rate
*FY 2010 target value

075

2010
(FY)

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incurred in waste disposal, we are developing
technologies and applications to promote reuse
and recycling. In ﬁscal 2010, we raised the resource
recycling rate†1 in Japan by 13 percent from ﬁscal
2005, clearing the year’s goal of 10 percent. In our
initiative to boost the number of zero emission†2
sites that have minimized landﬁll disposal, 159
facilities achieve that goal in ﬁscal 2010.
†1 Calculated as (base year 3R load minus subject year 3R load) divided by baseyear 3R load
†2 Deﬁned as a ﬁnal disposal rate (landﬁll disposal/waste) of no more than 1
percent and less than 5 tonnes of ﬁnal waste in any given year
WEB Zero emission sites
http://www.hitachi.com/environment/activities/data/zeroemission.html

3R Load Concept
Natural resources
Energy for refining

Materials†1 Manifest: An evidence document for industrial waste management issued bywaste generators and relayed along the waste stream to ensure appropriate
disposal†2 Electronic manifest (e-manifest): Mechanism for centralized managementof digital manifests, with waste generators and waste disposal companies
sharing relevant information

Input
Refining
energysaved

Promoting Appropriate Disposal
To reduce the risk of inappropriate waste disposal,
we have developed a waste management systemthat electronically records information frommanifests†1 on waste type, disposal methodand disposal completion, and can register thee-manifests†2 being promoted by the government.
We have bolstered our mechanisms for ensuring
appropriate waste disposal, with the system
now issuing a warning if there are mistakes in a
manifest or if disposal cannot be completed. A
function has been added for collating data on
waste volume, disposal methods, and disposal
volume from electronic manifest information to
boost operational efficiency and promote resource
recycling. In ﬁscal 2010, enhancing support
mechanisms for the introduction of e-manifests topromote greater e-manifest use within the Group,
which resulted in 62 facilities adopting e-manifests.

Manufacture

Waste disposal

Waste Management System

Energy for Energy for Energy for Energy forrecycling incineration incineration using landfills

Reuse

Recycling

Heat recovery

Simpleincineration

Landﬁlldisposal

OfficeManagement of contractor’s
contract information

Heat energy
recovered

Data on waste
contractors

The 3R load is the expected environmental load from waste disposal. The
smaller the environmental load, the more resources are being recycled. The
following are totaled for each waste type and disposal method:[1] Energy used in reﬁning natural resources into materials[2] Energy used in waste disposal[3] Heat energy recovered through waste recycling and reduction in reﬁning
energyIntranet· Collate and analyze waste
disposal volume· Print and issue manifests· Manage manifest recovery period

Wastes Information
management server

Waste data

Internet

JWNET* E-manifest registration* Japan Waste Network, operated by the Japan
Industrial Waste Technology Center

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TOPICS
Reducing Waste from Transportation
Packaging
Hitachi Transport System is promoting
activities to reduce waste by improving
packaging. The initiative in ﬁscal 2010
was to reduce wood waste by switchingfrom one-way wooden packing crates tocollapsible, reusable metal crates. These
crates were made more compact to ﬁt into
Japan Freight Railway Company ﬁve-tonne
containers, enabling a modal shift fromtruck to rail transport and helping to reduce
CO2 emissions during transportation. The
shorter unpacking time has also enhanced
work efficiency and service. Due to these
improvements, the company received an
Electric Equipment Packaging CategoryAward at the Japan Packaging Contest 2010,
which is sponsored by the Japan Packaging
Institute.

deﬁnition of zero emissions will be revised as ofﬁscal 2011 and the ﬁnal disposal rate (landﬁll
disposal/waste) will be cut from no more than 1
percent to less than 0.5 percent, as we work todevelop and increase the number of zero-emission
sites.

Water Conservation
Given the global shortage of water resources, weare committed to promoting effective use of thewater by reducing the amount of water consumed
in our operations. Outside Japan, where water
conservation is a pressing issue, our production
facilities had recovered and recycled water
during manufacturing process or reused it for
non-technical uses to reach the goal of reducing
water consumption by 10 percent from ﬁscal
2005 by ﬁscal 2010. In ﬁscal 2010, the 10-percent
target was achieved despite increased water

Key Indicators
Trend in Water Use outside Japan(million m3)

(%)

100

100

90
18.21

20

78

14.68

15

One-way wooden crates (left) replaced by collapsible, reusable
crates (right)

90*

81

75

14.26

13.61

71

16.40

80

60

12.90

10
40

Next Steps
Our Third Environmental Action Plan (FY 2011–15)
aims to further reduce the amount of waste
generated by increasing the target for improving
waste generation per unit of production fromﬁscal 2005 by 16 percent in ﬁscal 2011 and by 20
percent by ﬁscal 2015. Facilities manufacturinghigh-function materials, such as copper products
and magnetic materials, are expected to achieve
a 7-percent improvement by ﬁscal 2011 and 15
percent by ﬁscal 2015, considering the heavyenergy use of production processes in these areas.
To improve appropriate waste disposal rates, ourtarget is to lift the e-manifest registration rate inJapan to at least 90 percent by ﬁscal 2015. The

5

0

2005

2006

2007

Water use
EuropeAmericas
China
Asia

2008

2009

2010
(FY)

2005

0

Normalized water use*FY 2010 target value(million m3)

Breakdown by Region
2006

2007

2008

2009

2010

Europe

0.04

0.01

0.02

0.02

0.01

0.02

Americas

5.21

5.05

4.05

3.89

3.71

4.05

China

4.68

4.71

4.84

4.80

4.94

5.16

Asia

8.28

4.91

5.35

4.90

4.24

7.17

Total

18.21

14.68

14.26

13.61

12.90

16.40

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Environmentally Conscious Productionuse—particularly in China and Southeast Asia—dueto the rise in production volume. We will pursue arange of measures to boost water use efficiency,
ensuring a steady reduction.
Next Steps
Our Third Environmental Action Plan (FY 2011–15)
aims to balance increased production outside Japan
with water resource conservation by improving water
use per unit of production by 16 percent from ﬁscal
2005 by ﬁscal 2011 and by 30 percent by ﬁscal 2015.

Chemical Substance Management
To deal with chemical risk and comply with laws
and regulations, we assess chemical substances,managing risk in three ways: prohibition, reduction,and control. Since 1998, we have operated
an online database for chemical substancemanagement called CEGNET to index the latest
laws and regulations and our own voluntary
regulations, ensuring appropriate management of
newly introduced chemical substances. Chemical
substances used in our operations are also
registered with CEGNET. Collecting and aggregating
the data on the amount of chemical substancesused, emitted, or transferred helps to reduce ouruse of chemicals. In addition, we train chemical
substance managers and regularly communicate
the risks to deepen local residents’ understandingof how we manage chemical substance risk.

goal was to reduce VOC atmospheric emissions inJapan by 50 percent from ﬁscal 2000 by ﬁscal 2010,
and to cut the rate of reduction of VOC atmosphericemissions†1 outside Japan by 10 percent from ﬁscal
2005. The rate of reduction of VOC atmosphericemissions—intended to reduce the ratio ofemissions to the volume of VOCs handled—is used
as an indicator outside Japan because of production
growth there. We are improving manufacturing
processes to introduce VOC alternatives and installequipment to recover and render them harmless.
Hitachi Construction Machinery, for example, hasachieved a 40-percent reduction in the volume of
VOC emissions by adopting low-solvent paints andintroducing an electrodeposition coating processusing water-based paint for coating large hydraulicshovels. Outside Japan, Hitachi Elevator (Shanghai)
has cut the volume of VOC emissions to less than 1
percent by introducing devices for absorbing andrecovering VOCs during the painting process forelevator parts and by switching to water-based
paints. As a result of all these activities, in ﬁscal
2010, we cut VOC emissions in Japan by 69 percent
from ﬁscal 2000, and outside Japan reduced
emissions by 29 percent from ﬁscal 2005, in bothcases achieving our targets.
We comply with Japan’s PRTR Law†2 throughKey Indicators
Trend in VOC Atmospheric Emissions in JapanThe CEGNET Chemical Substance Management System

(kt)

(%)

100

100
80

Chemical information management server
Regulatory/voluntary
control information

Chemical data

15

60
50*
40

51
38

Network
New chemical risk
searches

56

Registration of amounts
handled / data collation

11

32

31

0

10
6

Production facilities

5

5Reducing Chemical Substances
To prevent air pollution, we cut emissions of 41
volatile organic compounds (VOCs) based on a
program from the Ministry of the Environment. Our0

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2000

2006

2007

4

2008

3

3

2009

2010
(FY)

VOC atmospheric emissions
Normalized VOC atmospheric emissions* FY 2010 target value078

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Group-wide monitoring of chemical substances
released into the atmosphere or into public waters,
or transferred outside our plants as waste, ordischarged into sewage systems, reporting thisto local Japanese governments. Although some
substances are exempt from reporting due totheir small quantities, our policy is to keep dataon all PRTR substances, provided the amount is 10
kilograms or more per year, so that we can control
these substances as well.
†1 The rate of reduction of VOC atmospheric emissions: The percent
difference between the 2005 emission ratio and the emission ratio in thesubject year. The emission ratio is calculated as VOC atmospheric emissions
divided by total volume of VOCs handled.
†2 PRTR Law: Pollutant Release and Transfer Register Law

Key Indicators
Trend in Reducing VOC Atmospheric Emissions
outside Japan
(t)

(%)

100

97

96

100
86

900
704

71

76

774

752

90*

600

523

577

75

50
439

300

25

0

2005

0
2010
(FY)
Normalized the ratio of VOC atmosphericemissions*FY 2010 target value

2006

2007

VOC atmosphericemissions
EuropeAmericas
China
Asia

2008

2009

(t/year)Breakdown by Region
2005
EuropeAmericas

China

Asia

Total

2006

2007

2008

2009

2010

15

0

8

9

7

9

(26)

(0)

(14)

(13)

(10)

(12)

33

17

29

37

29

41

(46)

(25)

(44)

(44)

(41)

Next StepsTo reduce the ratio of VOC emissions to VOCs
used, our Third Environmental Action Plan (FY
2011–15) established the rate of reduction of
VOC atmospheric emissions as the indicator usedworldwide. It sets the targets of reducing thatrate to 5.8 percent in ﬁscal 2011 and to less than
5 percent in ﬁscal 2015, further reducing VOC
emissions into the atmosphere.

Managing Environmental Risk
In the Hitachi Group, we go the extra mile inenvironmental management by considering theenvironmental burden of all our business activities
and setting voluntary management criteria more
stringent than regulations. At every business site,
we monitor water quality and noise, for example,
and work to minimize environmental risk. We also
share information on environmental regulationsand violations to prevent recurrences and tostrengthen management.
In ﬁscal 2010, four incidents exceeded statutory
environmental limits and there were nine noise
complaints, and all were promptly resolved. We
will continue to audit and monitor data to prevent
recurrences.
To prevent soil and groundwater contamination
caused by chemical leaks, we replace undergroundpipes, pits, and tanks with ones above ground.
We have now completed soil and groundwater
decontamination or conﬁrmed the sites
where chemical substances were used to beconatmination free. Cleanups and monitoring willcontinue at the remaining sites.
Violations of Statutory Standards

(48)

336

459

430

288

268

131

(445)

(655)

(639)

(607)

(502)

(310)

320

276

307

189

273

258

(525)

(532)

(496)

(356)

(452)

(539)

704

752

774

523

577

439

(1,042)(1,212)(1,193)(1,020)(1,005)(909)

Water quality

Air

Total

Japan

2

0

2

Outside Japan

2

0

2

* Top ﬁgures show VOC atmospheric emission volumes. Bottom ﬁgures inparentheses show the volume of VOCs handled.

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Environmental Load Data Generated through Business Operations (FY 2010)

This chart shows resource inputs and the environmental load for Hitachi Group business activities in ﬁscal
2010.
Total Output of Environmental Load
Volume of products shipped: 3,378 kt (in Japan); 831 kt(outside Japan)

Total Input of Resources

Greenhouse Gas Emissions

Total Energy Input
OutsideTotal
all energy
enerJapan 29% consumption (crude
oil equivalent)
2.07 million kl
Gas 12%
Fuel oil 7%

In Japan 71%
Electricity 81%

Electricity

In Japan 62%

Other 2%

In Japan

Outside Japan

In Japan

Outside Japan

4.7 billion kWh

2.1 billion kWh

CO2 emissions

2,630 kt

1,694 kt

100 million m3

24 million m3

Other GHGs
SF6 (sulfur hexaﬂuoride)

68 GWPkt

042,000 t

18,000 t

PFCs (perﬂuorocarbons)

18 GWPkt0

109,000 kℓ

14,000 kℓ

HFCs (hydroﬂuorocarbons)

17 GWPkt

4 GWPkt

LPG
Fuel oil (heavy oil, kerosene, etc.)

Total Input of Materials

Total Volume of Waste

In Japan 55%

Outside Japan
45%

Metals 57%

Other 35%

Plastics 7%

Greenhouse gases(GHGs) †2
4,431 GWPkt

CO2 emissions 98%

Gas

Town gas, LNG

Outside Japan38%

OutsideJapan 29%

In Japan 71%

Materials
3,519 kt

Waste generated
738 ktRecycling 82%

Rubber 1%

Waste reduction 6%

Final disposal 12%
In Japan

Outside Japan

In Japan

Outside Japan

Metals1,275 kt

722 ktWaste reduction

33 kt

15 kt

Plastics

169 kt83 kt

Recycling

450 kt151 ktRubber

6 kt

21 kt

Volume reused

80 kt

5 kt

764 ktVolume of material recycled

341 kt144 ktVolume of thermal (heat)recycled

29 kt

2 kt

42 kt

47 kt

4.6 kt0.4 ktOther materials

478 ktChemical substances
Handling volume for chemical substances
183 ktcovered under the PRTR Law†1
Handling volume for ozonedepleting substances
Handling volume forgreenhouse gases

Total Water Input

14 kt

Final disposal

2t

543 t

1,531 t374 tChemical substances
Discharge or transfer volume of chemical
substances covered under the PRTR Law

10 t

471 t

45 t

Volume of discharge for ozone-depleting
substances
2 t (0.1 ODP†3t)

0.3 t (0 ODPt)

Volume ofwater reused
In Japan:
34.61 million m3
Outside Japan:
4.46 million m3

Water used
71,470,000 m3

Industrial water 43% Groundwater 36%

47 t

NOx (nitrogen oxides)

Total Volume of Wastewater

Outside Japan 23%

In Japan 77%

SOx (sulfur oxides)

Surface water 21%

Outside Japan 24%

In Japan 76%
Public water 65%

Wastewater
66.31 million m3

Seweragesystem 31%

Undergroundinﬁltration, etc. 4%

In Japan

Outside Japan

In Japan

Outside Japan

Surface water

6.51 million m3

8.74 million m3

Public water

39.92 million m3

3.29 million m3

Industrial water

25.65 million m3

4.75 million m3

Sewerage system

8.64 million m3

12 million m3

3

3

3

1.74 million m

0.71 million m3

247 t

455 t

187 t

1,024 tGroundwater

22.9 million m

2.9 million m

Underground inﬁltration, etc.
Water quality
BOD (biological oxygen demand)
COD (chemical oxygen
demand)†1 The 354 chemical substances covered under Japan’s PRTR Law†2 GWP (Global Warming Potential): Coefficient derived by converting the global warming potential into CO2 equivalent tonnes†3 ODP (Ozone Depletion Potential): Coefficient derived by converting the global depletion potential into trichloroﬂuoromethane (CHC-11) equivalent tonnes
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and Communication

Environmental Management
Framework and Communication
In the Hitachi Group, we have built a global
network and are using environmental
management systems to foster soundenvironmental practices and instill “EcoMind” in all our employees. We also work
to deepen stakeholders’ understanding of
our environmental activities by disclosing
information, and we encourage two-way
communication to improve those activities.

Environmental Management
Framework
The Hitachi Group is made up of Hitachi, Ltd.’s
in-house companies and Group companies. We
are building a global environmental management
system to support environmental decision making
and action at Hitachi, Ltd., 913 consolidated
subsidiaries, and 164 equity-method affiliates.
The Hitachi, Ltd. Environmental Strategy
Office is responsible for developing Group-wide
environmental policies. It drafts basic management
policies and action plans that are deliberated on
and approved by the Senior Executive Committee

for Environmental Policy, chaired by the president.
The Environmental Strategy Officers Meeting,made up of representatives from in-housecompanies and major Group companies, ensuresthat environmental strategies are implemented
throughout the Group. We also have an
Environmental Committee and subcommittees
of working level experts in each policy area who
develop speciﬁc targets and measures for achieving
them. In ﬁscal 2011, we established the new EcoBusiness Committee to promote the globalizationof our environmental business operations.
Outside Japan, we hold regular regional
environmental meetings to promote environmental
action. In ﬁscal 2010, information was shared
during meetings in China, the United States, andEurope on the Third Environmental Action Plan (FY
2011-15) and the latest environmental regulations.
In addition, views were exchanged on local
environmental issues. We will continue using theseworldwide regional networks to improve our global
activities, keeping the special character of eachregion in mind.

President

Senior Executive
Committee forEnvironmental Policy

Environmental Strategy
OfficeEnvironmental Strategy
Officers Meeting

Environmental
Committee
Eco-Management
Sub-committee
Eco-Products
Sub-committee
Eco-Factory
Sub-committee

Environmental Management System underthe Hitachi Group
Environmental Promotion Organization*

In-House Companies
Presidents
Environmental strategy officers

Eco-BusinessSub-committee*Organization built around the environmental
promotion departments of the Hitachi, Ltd.
Research & Development Group, four in-housecompanies, and 20 Group companies

In-House Companies’
Integrated EMSs

Major Group Companies
Presidents
Environmental strategy officers

Group Companies’
Integrated EMSs

Factories andOffices
Division heads
Environmental
management officers
Group Companies
Presidents
Environmental
management officers
Factories andOffices
Division heads
Environmental
management officers
Group Companies
Presidents
Environmental
management officers

913 consolidated subsidiaries and 164 equity-method affiliates

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Building Environmental Management Systems
To ensure efficient management of each businesssite’s environmental load, we have set the criteria
for environmental management. Twenty-ﬁve
business units which have approximately 300 sites
meeting these criteria—the R&D Group, four inhouse companies, and 20 Group companies—andthe Environmental Strategy Office have together
developed and implemented the Hitachi Group
Environmental Promotion Organization EMS
to consistently promote the implementation ofenvironmental policies.
In ﬁscal 2010, the Hitachi Group Environmental
Promotion Organization EMS had its ﬁrst ISO 14001
surveillance audit since a recertiﬁcation audit. No
corrective action was required, and certiﬁcation
remains in effect.
Also, at the same time, the in-house andGroup companies covered by the Hitachi Group
Environmental Promotion Organization EMS havebeen working to develop their own EMSs. In ﬁscal
2010, three in-house and ﬁve Group companies
carried out EMS integration for multiple businesssites. With this completed, EMS integration has
now been done at all major in-house and Group
companies.
Every business site meeting the criteria forenvironmental management continues to maintain
ISO 14001 certiﬁcation. In fact, business sitesthat did not meet the criteria have also obtained
certiﬁcation, so that 591 Hitachi Group businesssites were certiﬁed as of March 2011.
Criteria for Environmental Management Level(major items)
Employees
Electric power consumption
Waste generated
Water used
Paper purchased≥ 500≥ 6,000 MWh/year≥ 500 tonnes/year≥ 600 m3/day≥ 50 tonnes/year

Status of ISO 14001 Certiﬁcations (as of March 2011)
Japan

Outside Japan

NonNonProduction
Production
Production
Production
Sites
Sites
Sites
Sites
No. ofCertiﬁed
Sites

240

Europe
16

213

China
42 Japan
453
Asia
62

111

27

Total

591

North America
18

WEB List of ISO 14001–certified sites
http://www.hitachi.com/environment/activities/data/iso14001.html

Monitoring Environmental Performance Data
For effective environmental management, wecollect environmental performance data on
business operations using the Environmental
Load Evaluation System. This system collects
environmental load data from some 300 Hitachi
business sites worldwide on such items asenergy use, CO2 emissions, and waste generated,
together with information on outside complaints,
honors received, and other items. By analyzing
this information, we identify environmental
management issues, share instructive examples
within the Group, and improve environmental
practices. We will continue to expand this system tokeep pace with new laws and policies. For example,
we added a function for registration to the electronic
manifests promoted by the Japanese government toprevent inappropriate disposal of wastes (see page76) and upgraded our system to collect and analyze
energy-use data from all relevant sites in response to
Japan’s amended Energy Conservation Law.†1
Further improvements will allow the system
to assess progress toward reduction targets forCO2 emissions and other environmental load
indicators. These measures will heighten awarenessof what needs to be done to meet the goals of theEnvironmental Action Plan.
†1 Energy Conservation Law: Act on the Rational Use of Energy

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Environmental Activity Evaluation System
We use our own evaluation system, GREEN 21, to
improve the level and quality of our environmental
activities. It divides environmental activities into
eight categories and evaluates achievements andprogress toward Action Plan targets by rating 55
items on a scale from 1 to 5, then showing theresults on radar charts. For any category, a perfectscore is 200 green points (GPs). The results ofGREEN 21 evaluations are incorporated into thebusiness performance evaluations of all Hitachi
in-house companies and some Group companies.
In ﬁscal 2010, the ﬁnal year, we surpassed theoverall Group target of 1,280 GPs with a total scoreof 1,286, due to steady improvements at businesssites around the world. In the areas of reducing
global warming and worldwide environmental
partnerships, where results fell short of theirtargets, we intend to improve scores in the future
by continuing the shift to more energy-efficientsystems and by ramping up communication on
environmental action outside Japan.
Under our Third Environmental Action Plan
(FY 2011–15), we are adding new GREEN 21
evaluation items with which we increase the levelof activity: contributing to business growth andpreservation of ecosystem through expanded
environmental business operations, and collecting
and communicating environmental data across our
supply chain.

Key Indicators
Green Point (GP) Average: Results and Targets

8. Worldwide
Environmental
Partnerships
151 GPs

1. Eco-Management
163 GPs
180

2. Eco-Mind
168 GPs

90

7. Eco-Factories:
Resource
Recycling
161 GPs

6. Eco-Factories:
Reducing Global
Warming148 GPs

0

3. Eco-Products:
Manufacturing
166 GPs

5. Next-Generation
Product / Service Strategy
165 GPs

4. Eco-Products:
Green Procurement
164 GPs

FY 2010 target: 1,280 GPs
FY 2010: 1,286 GPs
FY 2009: 1,194 GPs
FY 2008: 1,108 GPs
FY 2007: 966 GPs
FY 2006: 845 GPs
Categories and Evaluation Items
1. Environmental management action plan, environmental accounting,risk management, and statutory compliance
2. Environmental training and education for employees (general
education, specialized education, auditor training)
3. Ecodesign, Eco-Products, management of chemical substances in
products
4. Green procurement, green purchasing
5. Next-generation Eco-Product strategy, sustainable business
6. Energy conservation at business sites, environmentally responsible
transportation
7. Waste reduction, chemical substance management
8. Stakeholder-oriented information disclosure, communications, global
citizenship activities

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Hitachi Group Environmental Award Program
To encourage environmental activities anddisseminate best practices throughout the Group,
we established the GREEN 21 Award program
honoring environmentally conscious products,
technologies, and activities. Awards are based on

multiple criteria, including the results of GREEN
21 overall environmental evaluations, reductionof environmental load, innovation, and ongoing
beneﬁt. In ﬁscal 2010 there were 30 entries, 10 ofwhich were selected for awards.

Fiscal 2010 GREEN 21 Awards
Category

RecipientAchievement

Grand Prize

Hitachi Works, Power Systems Co. (Hitachi, Ltd.)
Hitachi Engineering & Services Co., Ltd.

Contributing to CO2 emission reduction through development and spread ofwind power generation system

Division Eco-Mind & Global
Awards Environmental
Management

Hitachi Elevator (China) Co., Ltd.

Adopting green policies to save energy, reducing toxic chemicals, etc.,
and implementing them at sites around China; winner of China’s Excellent
Corporate Citizen in China award

Next-Generation
Products & Services

Hitachi Plant Technologies, Ltd.

Product development of onboard ballast-water puriﬁcation system using
magnetic separation; winner of the 7th Eco-Products Awards, Minister’s Prize,
the Ministry of Land, Infrastructure, Transport and Tourism

Worldwide
Environmental
Partnerships

Shenzhen Hailiang Storage Products Co., Ltd.

Promoting environmental education and conservation through community
programs involving employees, their families, and local residents

Super Eco-Factories &Offices

Hamura Works, Hitachi Kokusai Electric Inc.

Improving energy efficiency and reducing volume of ﬁnal waste disposal (seepages 075–077)

Special Award

Hitachi Global Storage Technologies, Ltd.

Global company-wide GREEN 21 campaign

Honorable Mentions

Hitachi IE Systems Co, Ltd.

Air-conditioning system for environmentally conscious modular data center

Taga Home Appliance Works, Home Appliance Group,
Hitachi Appliances, Inc.

Developing low-steam-emission rice cooker that steams without added
water for lower electricity and water consumption and improved taste

Shikoku Area Operation, Hitachi, Ltd.

Contributing to the environment and the local community throughafforestation

Sakado Operations, Hitachi Intermedix Co., Ltd.

Adopting energy conservation and waste-reducing measures to win METI’s
Commerce and Information Policy Bureau Director-General Award for energyefficient factories

GREEN 21 Grand Prize

Grand Prize Winner: Contributing to CO2 Emission Reduction
through Development and Spread of Wind Power Generation System• Criteria for Decision
Hitachi Works, Power Systems Co. (Hitachi, Ltd.)· Developed a 2 MW downwind turbine, among the world’s largest,and commissioned 19 turbines as of the end of FY 2010, contributing
to an annual CO2 emission reduction of 45,000 tonnes.
Hitachi Engineering & Services Co., Ltd.
· Launched ﬁrst output power stabilization system for wind power
generation in Japan with a combined power rating of 15.44 MW andequipped it with an energy storage system using long-life lead-acidbatteries. Minimized power generation cost increases and reduced
ﬂuctuations in output to ensure consistent power supply. Opened
facilities to viewing by more than 150 visitors from around the world,
helping spread wind power generation.
· Offered environmental education by giving more than 800
schoolchildren and local residents tours of wind farms during
construction from FY 2006 to FY 2010.

Elementary school children touringwind farms during construction

Wind Power Ibaraki Co., Ltd’s
Wind Power Kamisu

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Environmental Education

conscious product design, risk communication
regarding chemicals, and factories’ environmental
protection. In ﬁscal 2010, we instituted a new
training course for staff in charge of factory
management to familiarize them with thelatest environmental laws and explanations ofamendments. In addition to Hitachi Group Training,
individual companies and units provide special
education tailored to their own business area.
From ﬁscal 2011, we will intensify training toenhance the knowledge and skills of staff in chargeof factory management, using case studies toillustrate compliance, noncompliance, and the needfor environmental management, while providing
opportunities for discussion with outside experts.

Hitachi Group Training is offered to all Group
employees with a view to raising awareness andspreading understanding of environmental issues.
Training is divided into general education, covering
subjects such as Hitachi’s Environmental Vision andenvironmental strategies, and specialized expert
training.
For general education, we offer an Internetbased e-learning course in three languages:
Japanese, English, and Chinese. To date 174,977
employees worldwide (95% of the target group)
have taken this course.
Specialized training aims to nurture skilled
personnel in such areas as environmentally
Hitachi Group Education and Training System
TargetGeneraleducationAllemployees

Introductory

Beginning

Intermediate

Advanced

Online e-learning: Eco-Mind education(General Topics: Global environmental issues, environmental law, etc.)
Online e-learning: Eco-Mind education(Hitachi Group Topics: Environmental policy,
Environmental Action Plan, etc.)
Basic environmental management course for working-level employees(management of waste, air/water quality, hazardous materials, etc.)(development & operation of management systems, etc.)

Working
level
employees
Specialized
education

Education for Eco-Factories
Eco-Product development training
Risk communicator training

Brush-up training for ISO 14001 auditors

Internal environmental
auditors

ISO 14001 auditor
certification training

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ISO 14001 senior auditor
certification training

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Environmental Accounting

Environmental Accounting Guidelines. The results
help us to raise the efficiency of environmental
investments and activities.

We have adopted, and are making public,
environmental accounting conforming to Japan’s
Environmental Protection Costs
Item
Expenses

Costs (billions of yen)
FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

Overview

Business area

39.24

39.72

33.31

28.20

27.98

Costs of maintenance, of equipment with low
environmental burden, depreciation, etc.

Upstream/
downstream

2.89

2.79

1.97

1.70

1.60

Green procurement expenses, recovery and recyclingof products and packaging, recycling expenses

Administration

10.31

11.30

11.20

8.92

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

Research anddevelopment

41.66

46.63

50.25

52.81

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

Social activity

1.20

0.48

0.35

0.25

0.31

Planting, beautiﬁcation, and other environmental
improvement expenses

Environmental
remediation

2.89

0.80

0.99

0.68

0.37

Environmental mitigation costs, contributions, andassessments

Total

98.18

101.72

98.06

92.56

96.44

15.48

15.38

10.17

7.95

7.60

Total investment

Investment in energy-saving equipment andequipment that directly reduces environmental load

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

Environmental Protection Effects
Economic Effects*1
Item

Costs (billions of yen)
FY 2006

FY 2007

FY 2008

FY 2009

FY 2010Major FY 2010 Activities

Net income effects

12.28

14.50

10.90

8.30

9.62 Finding value from waste by sorting and recycling

Reduced expenses effects

20.15

22.02

18.24

15.00

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

Total

32.43

36.52

29.14

23.30

28.07

Physical Effects
Item
Reduction in energy usedduring production

Reduction in amount of waste
for ﬁnal disposal

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

Major FY 2010 Activities

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010159 million
kWh(46,000)

161 million
kWh(34,000)

158 million
kWh(33,000)

191 million
kWh(40,000)

129 million Reviewing clean room operating conditions;
kWh consolidating worksites and facilities (relocation of(27,000) production bases); limiting the number of refrigerator
units and switching to inverter technology; partneringwith electric supply companies to save energy

6,375 t(42,000)

7,361 t(53,000)

6,752 t(48,000)

5,955 t(43,000)

3,623 t Switching to PRF (solid waste fuel); recycling grinding(26,000) sludge and slag; reducing effluent volumes; reducing
packaging materials for goods received

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

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Efficiency of Environmental Load Reduction*
Item

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

Reduction in energy used during production (million kWh/billion yen)

0.30

0.28

0.33

0.42

0.32

Reduction in amount of waste for ﬁnal disposal (t/billion yen)

18.0

20.0

19.4

22.9

14.7

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

FY 2010 Investment Ratio by Countermeasure

Other 31%

Pollution
Prevention
30%

Prevention of Global
Warming
35%

Waste Reduction
4%

Environmental Communication
Communicating Environmental Information
We publish reports every year on our environmental
protection initiatives, their results, and our plans.
In ﬁscal 2011, taking into account the global needfor a sustainability report, we combined our HitachiGroup Corporate Social Responsibility Report andthe Hitachi Group Environmental Sustainability
Report into a single report. The Environmental
Activities page on the Hitachi’s Web site also
provides information on the environmentallyconscious features of the Hitachi Group’s main
products, as well as customer feedback. In ﬁscal
2010, for its clear themes and the high standard ofenvironmental activities, our Web site won the prizein the corporate category of the Environmental goo
Awards.
Our environmental campaign TV commercial on

Environmental Activities page on Hitachi’s Web sitehigh functional materials and components, whichbegan screening in August 2010, won the grandprize in the environmental TV commercials categoryof the 14th Environmental Communication
Awards. Judges lauded Hitachi’s skilful portrayalof the environmental contribution of the materials
business, recognizing that while these materials
are critical to the environmental business, they are
difficult to explain to viewers.
Also, we cooperate with socially responsible
investment†1 ratings and other environmental
surveys (see pages 102–103).
†1 An approach to investing where shares are selected partly on the basis of
criteria relating to CSR
WEB CSR/Environmental reports published by Hitachi Group companies
http://www.hitachi.com/environment/activities/data/rpt_open.html
WEB External environmental awards
http://www.hitachi.com/environment/activities/data/commendation.html

Participation at Exhibitions
We value the opportunity for direct dialogue withstakeholders, so we participate in environmentrelated exhibitions. In ﬁscal 2010, we took part in
exhibitions around the world, setting “towards asustainable society” as our core concept.
In Japan, we participated in Messe Nagoya 2010,
held in October to coincide with COP 10, as wellas the Eco-Products Exhibition 2010 in December

Eco-products International Fair in India

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and Communication(an annual event for us). Outside Japan, we held
the Hitachi Eco Conference 2010 in September
in Singapore as a private Hitachi Group event.
Also, we exhibited at both the 2010 International
Greentech and Eco Products Exhibition in Octoberin Malaysia and the Eco-products International
Fair 2011 in February in India. At these events,
we demonstrated to visitors our environmentallyconscious products and services, deepening theirunderstanding of Hitachi.
At exhibitions, we also work to reduce theenvironmental load of our booths. The Hitachibooth at Eco-Products Exhibition 2010 was builtwith environmental consciousness in mind, using
LED lamps for all lighting and a carpet made fromrecycled plastic bottles. For these initiatives, Hitachibooth won the Eco & Design Booth Prize granted toenvironmentally conscious exhibition booths.
WEB List of environmental exhibitions
http://www.hitachi.com/environment/ads_events/event/index.html

Partnerships with Stakeholders
We promote environmental communication,
deepening the exchange on environmental themeswith local stakeholders, and we conduct social
contribution activities with them.
In ﬁscal 2010, we carried out environmental
education and tree planting as well as restoration
projects in various regions worldwide. As far as
environmental education is concerned, to help
raise the eco-awareness of children who will leadthe next generation, we provided easy learning
opportunities through hands-on training andexperiments and explanations of Hitachi Group
activities.
To conserve the environment as a global
citizen, we promote environmental beautiﬁcationand natural conservation in cooperation with
employees, their families and local residents.
Through these activities, we also support local
environmental conservation, by holding meetings
with local authorities and working with NGOs
and NPOs that specialize in local environmental
situations and activities (see pages 108–110).

We provide specialized environmental education courses using visual
aids to teach children about the ecosystems of forests and animals.
(Hitachi Global Storage Technologies Philippines Corp.)

To deepen exchanges with local residents, we opened our office tothe public and provided opportunities to learn about environmental
technologies by exhibiting models running on solar cells, etc.
(Hitachi Works, Hitachi, Ltd.)As part of our support for university students’ research, we deepened
mutual understanding by explaining our waste management activities
and exchanged opinions.
(Hitachi Chemical (Johor) Sdn. Bhd., Malaysia)

We planted trees in Hill Park, Nanshan, China, with the participation of
55 employees and their families.
(Shenzhen Hailiang Storage Products Co., Ltd.)

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Designating an “Environment Day,” we promote environmental
conservation activities, such as clean ups in the area around ouroffice and publicize these activities in an environment column in thecompany newsletter.
(Hitachi Building Equipment Manufacturing (Tianjin) Co., Ltd.)WEB Other environmental communication activities
Hitachi Eco-Activities
http://www.hitachi.com/environment/showcase/employee/index.html

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Independent Review
To enhance the reliability of the data disclosed in this report, we have received a review by Bureau
Veritas Japan Co., Ltd.* on our ﬁscal 2010 performance.
*A certiﬁcation agency providing inspection, audit, and certiﬁcation services in areas such as marine; building compliance; health safety andthe environment; systems; and consumer products.

The standards, guidelines, and calculation methods used in collecting data appear on our Web site.
WEB Calculation methods for environmental load data
http://www.hitachi.com/environment/activities/third/method.html

Bureau Veritas Japan review report

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MESSAGE

Changing Our Business through Sustainable Procurement Activities
Improving Transparency and Cultivating Human Capital for a Global
Supply Chain

Makoto Ebata
Senior Vice President and Executive Officer
in charge of Procurement andConsumer Business, Hitachi, Ltd.

Escalating costs and a tightening supply of raw materials
stemming from increases in worldwide demand, as wellas the globalization of our operations, have transformed
procurement for us in recent years. We must therefore
accelerate the globalization of our entire supply chain whileconsistently procuring the materials we need.
Our key challenges are to ensure the transparency of ourentire supply chain, to share information with suppliers, and tocultivate human capital worldwide. In Japan, we have built close
relationships with, and have grown together with, our suppliers
in what is essentially a family relationship. But these ties haveeroded somewhat in a global procurement climate where equal
partnerships have become the prime focus. We intend to build
a global supply chain based on trust by localizing human capitalwhile cultivating professionals worldwide.
“We’ll change our business through sustainableprocurement activities.” With such a high aspiration andcommitment, we’ll create a sustainable procurement systemthat manages risk and builds business partnerships that meetmutual social responsibilities.

Becoming a Corporate Group that Champions Diversity
Seeking to Be a World-Class Enterprise Where All
Employees Can Work Safely and Happily
We aim to be a global business solving global issues, andexpect our businesses to grow worldwide and dramaticallyover the next decade, particularly in emerging countries. We
therefore need to develop locally oriented management andemploy, evaluate, and cultivate human capital worldwide,ﬁnding leaders to play key roles within the Hitachi Group.
That said, we have not yet fully identiﬁed the career andeducational experience, and the skills, of all of our employees
around the world. In keeping with our commitment to be a
global company, I am eager to create a worldwide humancapital database as well as a global grading system that
we can use for developing the careers of our employees,
worldwide.
We must maintain high standards of worker safety todevelop globally, which is why we formulated the HitachiGroup Safety and Health Policy in ﬁscal 2010.
We intend to become a world-class, sustainable corporategroup that motivates employees by helping them to achieve
work-life balance and by accelerating diversity management.

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Naoki Mitarai
Vice President and Executive Officer
General Manager of Human Capital Group,
Hitachi, Ltd.

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Quality Assurance and Customer
Satisfaction

Quality Assurance and Customer Satisfaction
To reinforce our management structure, we
improve the quality of products and services
globally through our tradition of monozukuri †1
craftsmanship.

Activities Supporting Quality Assurance

Organization & management∙ Management of defective
product accidents∙ QF*1 emphasis
management system∙ OCHIBO HIROI (gleaning)∙ Management of
hazardous chemicals ...

Quality Assurance Activities
To preserve our tradition of monozukuri
craftsmanship from the customer’s perspective,
we are fully committed to Group-wide quality
assurance—covering everything from productplanning and development through to delivery andafter-sales service. We support quality assurancein particular by activities that place the priority
on organizations and management, technology,
and human capital. In ﬁscal 2010, we launched
the three-year Hitachi Group QF (Quality First)
Innovation Movement to ensure product safety,
compliance with laws and regulations, humanresource development, and improved quality. We
also concentrate on quality improvement outside
Japan, especially in China and the rest of Asia.

Activities Supporting Quality Assurance
Technologies∙ Quality reliability
committee∙ Product safety∙ Technical law
compliance∙ Work process
improvements ...

Human capital∙ Penetration of OCHIBO HIROI
spirit∙ Improvement of engineers’
ethical awareness∙ Education on quality andreliability∙ Quality awareness
improvement movement ...

*1 QF (Quality First)†1 monozukuri: manufacturing that combines innovative technologies withexperience gained over many years.

Quality and Reliability Education
Quality Assurance Flow Chart
Product Manufacturing Process

Quality Assurance Activities

Market trends

Product planning

Design review

DesignPrototype evaluation/
approval
Purchased
goodsManagement ofpurchased goods

Manufacturing

In-line quality control (QC)*1

Inspection

Improving inspection
techniques

Feedback to each activity

Customers’
needs

Shipment/Delivery
Customers

Collecting field data andafter-sales services

We develop training courses for all technical andskill levels at divisions engaged in design andquality assurance. The courses include Reliability(Fundamentals and Applications) and Product
Safety.
In ﬁscal 2009, we augmented management
training with a course that reaffirms the mental
attitude of Hitachi engineers. In ﬁscal 2010, we
reinforced our monozukuri capabilities by starting a
new course for section chiefs and above to reaffirm
their way of thinking on technology and design.
A quality assurance training center at a
manufacturing site in Hitachi City, Ibaraki
Prefecture, Japan, helps to increase production,
inspection, and maintenance skills. Other locations
and manufacturing sites offer their own specialized
technical courses.

*1 In-line QC: Review and verification for identifying potential defects at thedevelopment and prototype stages of the product life cycle.

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

accident, we quickly submit a status report to top
management, and the responsible company and
Hitachi join hands to take fast remedial action.
At the same time, we promptly comply with legal
requirements to report to government agencies.
We then publish the incident information throughour Web site and other channels.
When we decide that a product recall isnecessary, we notify the public through newspaper
advertisements or our Web site, then repair or
replace these products. Our Web site also provides
detailed product safety information.

China and other Asian nations account for muchof our offshore production. We are therefore
reinforcing systems and training to improve quality
there. For example, we host the annual Conference
for QA Managers in China to improve quality
awareness and to share information. In ﬁscal 2010,
we held a Conference for QA Managers in Thailand,
our ﬁrst such meeting in Southeast Asia.
We provide the two following quality reliability
courses to develop QA skills in people worldwide by
improving their quality awareness and inspection
techniques:· Basic Reliability Course: Deepens understandingof such basic issues as Hitachi’s monozukuri
craftsmanship, quality management, and labor
safety.
· Intermediate Reliability Course: Boosts
understanding of more practical issues in suchareas as Hitachi’s monozukuri craftsmanship, ISO
9001, defect elimination, design for reliability, andpurchasing and vendor management.

Customer Satisfaction
Using the Customer Satisfaction (CS) Management
Guidelines, one of the pillars of Hitachi’s business
management, we continue to improve CS with thegoal of “creating innovation through collaboration
with customers.” We use CS surveys tailored toeach business operation. In addition, we analyze
customer opinions submitted to the Hitachi
Customer Answer Center.
We host the annual Hitachi Group Service
Business Liaison Council, chaired by the presidentof Hitachi, Ltd., whose members are presidents anddepartmental officers from Group and in-houseservice companies.
Participants at these gatherings share intraGroup information to reinforce after-sales service

Handling Product Accidents
If a product malfunctions, the division responsible
acts swiftly to resolve the problem from thecustomer’s perspective, coordinating with otherbusiness units as needed. For an especially serious
Response Flow in the Event of Product Malfunction
Obtaining information

Accident
occursConsumer
Affairs Agency
and othergovernment
bodies: Flow of information: Report

Onsiteinvestigation
Product
investigation

Investigative committee on
serious product accidents

Investigation ofdamage scope

Decision concerning
serious product accident: Sharing of information

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Serious product accident

Confirming
accident status

Investigation of
cause

Disposition and reporting

Quality Assurance Division

Customer liaison

Fire department, police department

Customers and mass retailer

Top management

Product recall
Newspapers,
Web site,
Notification

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for products and systems, including repairs andmaintenance, and use that information to improve
service quality and to ensure appropriate service
costs.

Customer Satisfaction Management Guidelines∙ Our customers determine the value of products andservices∙ Information from our customers is the source ofimprovement∙ Offer prices and quality that are competitive∙ Respond rapidly to keep our promises to ourcustomers∙ Adopt systems that prevent accidents and minimize
their impact

Electronic & Electric Equipment
To ensure customer satisfaction, the Hitachi
Customer Contact Center and a Web site handle
customer inquiries and complaints about LCD TVs,
washing machines, and other appliances.
Customer Desk Response Figures and Connectivity(Cases permonth)

(%)
100
84.0

84.0

78.5

60,00050,00047,85051,30075
49,00050

16,85040,000

Formulated in 1994

17,30016,45025

30,00034,45020,000Web Site Customer Support
Our Web site provides comprehensive customer
support. It enables us to process customer inquiries,
opinions, requests, and complaints in collaboration
with the customer support units of Group
companies to improve our products and services.
We also use educational and other initiatives
to speed up and improve our response to these
inquiries.
One of our initiatives is to hold the Web Inquiry
Responsiveness Improvement Course, something
we have done since ﬁscal 2009. To date, 176
Hitachi Group employees have taken this course,which features case studies based on responses toinquiries. Going forward, we will collaborate withGroup companies to respond more quickly andeffectively to customer inquiries, using this Web site
as an important point of contact.

031,70031,40010,000
0

2008

2009

White goods (appliances)and other products

2010
(FY)
Brown goods(electronic equipment)

Results of Customer Service Evaluation Survey (CS Rate)
(%)
100

90

95.5

85.6

86.1

2008

2009

80

70
0

2010
(FY)

Voice of the Customer Flow Chart

Customers

Repair request
Response

Inquiry

Response: Response activities

Service
Information
CenterCustomer
SupportCenter: Flow of information

Each business groups

Information on repair service

Quality assurance department
Feedback on improvements
Filed in database ofcustomers comments& questions

Design department
Feedback
Manufacturing department: Sharing of information

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The center receives about 600,000 phone
calls and emails a year. We have undertaken thefollowing initiatives to better respond to inquiries
and to reﬂect customer feedback in our monozukuri
craftsmanship:· Third-party assessments of individual call center
employees· Training via monitoring the “voice of thecustomer” for design, quality assurance, and otherdepartments· Improved connectivity by outsourcing some
operations during busy seasons· Creating a database of direct customer feedback,including consultations, questions and complaints
We conduct semiannual customer service
evaluation surveys at 100 service centers around
Japan. Based on the survey ﬁndings, we improve
service by upgrading employee education,
especially through CS training courses and CS
improvement months.
Elevators and Escalators, Building Facilities
Management
When we design and develop elevators andescalators, we use proprietary technologies toensure peoples’ safety and comfort. We maketechnical improvements based on their feedback.
For elevators, for example, we adopt Universal
Design when we design buttons, sensors to detectdog leads stuck in doors, as well as emergency
systems that safely stop at the nearest ﬂoor andevacuation instructions during power outages or
earthquakes.

For building facilities management, our products
improve our customers’ efficiency and we respondto demands for more effective building facilities
management. For example, we developed BIVALE,
an integrated building facility management systemthat coordinates energy and security at multiple
locations through the Internet. Our maintenanceservices subsidiary, Hitachi Building Systems Co.,
Ltd., has 350 service sites around Japan to swiftly
respond to customers. State-of-the-art remotebuilding monitoring and diagnostic systems
observe and analyze elevators and escalators, andbuilding facilities, 24/7, to perform preventive
maintenance.
Information and Telecommunication Systems
Products and Services
The IT Systems Division is contributing to customer’sbusiness innovation by “collaborative creation” with
its customers, drawing on Group-wide expertiseand information technology. “Collaborative
creation” is based on our customers’ point ofview, so we conduct an annual survey to gauge
customers’ satisfaction with our products andservices.
Another goal of this survey is to improve ourbusiness by reﬂecting customers’ opinions, not only
satisfaction with our products and service, but also
expectations of Hitachi. With customers’ consent,
we have donated the fee that customers received
for participating in our survey to Good EarthJapan,†1 a non-proﬁt organization, since ﬁscal 2007.
Overview of the Information and Telecommunication
Division’s Activities Based on Customers’ Point of View
Customers

Suggestions

Reﬂecting on businesses
Customer-oriented activities
Satisfaction
with Hitachi

Expectationsfor Hitachi
Measuring customer
satisfaction relative
to their expectations
Customer surveys

Maintaining an elevator control board

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Requests and demands

Collaborating to create value

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Satisfaction†1 Good Earth Japan (GEJ) is a non-profit organization which is mainly engaged
in helping people to rebuild their livelihoods in post-mine-clearance areas inCambodia. GEJ started its activities in March 2007.

Universal Design
Our operations touch on many aspects of society
and daily living, and we promote Universal Design(UD) by improving the quality and ease of use,
accessibility, and life cycles of our products.
Quality of use means focusing on the traits
that make people feel that the product is easy andenjoyable to use. Accessibility refers to the range of
people who can use a product or service. Life cycle
covers all the stages of the value chain from before
the product is purchased through to disposal.
Product Development Cycle and UD Guidelines
In keeping with our UD philosophy, we maintainan “upward spiraling” product development cyclethat completely involves customers and experts inbasic research, guideline formulation, and productdevelopment. We draw on extensive research into
consumer behavior and their characteristics toformulate UD guidelines for product development.
The information obtained during productdevelopment goes into a database that ourbusinesses share, and we distribute some of thisinformation externally to promote open-source
standardization and education initiatives.
Digital and Home Appliances
We deﬁne people as customers as soon as a
product interests them, so it is essential to consider
quality in everything from pre-sales to disposal.
Key attributes are usability, features, harmony withthe environment, safety, and maintenance. Our
intention is to tailor products to people’s needs andlifestyles so that they become attached to them.
With washing and drying machines, for example,
we widened doors and put in shallower drums to
make it easier to remove clothes from the bottomof the drum. At the same time, we added a large
white LCD display that is more visible and easier
to use, as well as a “talking” button that instructs,
indicates status, and helps resolve problems—at thepress of a button.

The wide door

“Talking” button
Large white LCD display and “talking” button

Public Equipment and Systems
Since these are to be used in public spaces, it is vitalto design public equipment and systems that evenchildren can use while optimizing security, privacy,
and safety.
For example, we researched and commercializeda tabletop electron microscope to encourage morechildren to enjoy science. We made this microscopeeasy to use for novice teachers and children. This
product received the Minister of Economy, Tradeand Industry (Japan) Award in the Future Products
Category of The 4th Kids Design Award 2010,
sponsored by Kids Design Association.†1

Tabletop electron microscope

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Satisfaction†1 Kids Design Association: a nonprofit organization founded in 2007; started
by companies and other organizations in Japan dedicated to creating anddisseminating designs that promote the safe, secure and healthy development
and growth of children.

Web and Information Systems
These systems are vital for gathering informationand communicating. For example, people withdisabilities rely heavily on these systems and so we
aim to make them more accessible, usable, andsecure.
We developed a prototype gesture-based userinterface for public information boards for large
street maps, building ﬂoor guides, and otherdisplays in public spaces. We lowered the screen
and made it horizontal so wheelchair users andyoung children can operate it easily. This productwon a Universal Design Award from Universal
Design Germany†1 in 2011 and also won an award
in the Consumer Favorite category.

Person using a hand gesture to operate a public display screen†1 Universal Design Award from Universal Design Germany: Sponsoredby universal design e.V. of Hannover, Germany, and universal design GmbH.
A panel of top international designers adjudicates on the Universal DesignAward, while 100 consumers vote in the Consumer Favorite category.

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Public Policy Initiatives

Public Policy Initiatives
Partnerships with governments andpolicymakers around the world are vital for
creating a sustainable society and growing ourSocial Innovation Business. Through external
relations like these, we are able to havediscussions with governments and groups fromJapan, as well as other countries and regions,with the goal of providing optimal and relevant
solutions for society.

External Relations Policy
Our basic plan is to participate in decision making
in countries and regions around the world andto contribute to developing a sustainable social
infrastructure. In particular, we respond to social
expectations by identifying risks within the HitachiGroup at an early stage and by making policy
recommendations. For example, we may focus
on the environment and “smart cities” as ourparticular area of expertise. With that plan in mind,
we hold dialogues with a range of stakeholders,
including government officials, non-governmentalorganizations (NGOs) and research institutes thathave inﬂuence on social policies.

External Relations Structure
We previously allowed every division to manage
external relations for information and global
Hitachi External Relations Promotion Structure
Government
Hitachi, Ltd. & External
Relations
President
Division

Hitachi Group
External Relations
members meeting

Hitachi, Ltd.
Relateddivisionsbusiness. In ﬁscal 2009, however, the Government& External Relations Division (initially known as
the Government & External Relations Office) wasestablished within our headquarters to integrate
and coordinate external relations. Outside Japan,
we set up offices in Washington, D.C. and Brussels
to monitor policy trends in North America andEurope. The key external relations initiatives include
lobbying and communicating with governments;
participating in government-led study groups
and councils; contributing to policymaking bysending people to international institutions, public
offices and external groups; and by participating
in international groups such as the World BusinessCouncil for Sustainable Development (WBCSD).
These activities are reported back to the Group as awhole through the Hitachi Group External Relations
members meeting.

Stakeholder Engagement
To help resolve sustainability issues, we invite
local policymakers to stakeholder dialogues that
we hold regularly, worldwide. In this way, we
participate in wide-ranging exchanges of views
on issues such as public-private cooperationand corporate involvement in policymaking. The
increasingly globalized and complex nature ofsocial and environmental issues requires ﬂexible,
dynamic partnerships that transcend governments,
international institutions, NGOs and companies.
Through dialogues with stakeholders in many

In-housecompanies
External relations
divisions
Main Group
companies
External relations
divisions
HitachiCorporate Office,Washington, D.C.
Hitachi Corporate
Office, Europe(Brussels)
Stakeholder dialogues in Asia

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regions, we will continue to identify problems that
we can help solve as a company and thought leader
in the area of Social Innovation Business. We take amulti-sided approach to sustainability issues, while
ensuring full transparency in policy participation.

Partnerships for Combating Global
Warming
To help combat global warming, the Ministry of
Economy, Trade and Industry (METI) of Japan has
been investigating a new credit scheme whereenergy-saving products, high-efficiency coalﬁred thermal power plants, and other products
and technologies where Japan leads the world,
are only partially being used under the existing
Clean Development Mechanism (CDM). We arecommitted to working with Group companies tocontribute to this new scheme with our energysaving products and solutions. One example: in
October 2010, Hitachi Plant Technologies was
selected by METI for an open call for feasibility
studies on a project to reduce carbon emissions
by air conditioning using deep sea water in the
Republic of Maldives.

Forum since 1998 to provide a platform for
public policy debate, discussing how science andtechnology can contribute to solving Europe’s social
issues.
In May 2010, to celebrate Hitachi’s 100th
anniversary the Science and Technology Forum
was organized by addressing the theme of Smart
Energy Usage for a Sustainable Society. Over 140
people attended the forum, including businessand government representatives, researchers fromuniversities and research institutes, and other key
ﬁgures from industry, government and academia,
as well as representatives from NGOs. At the forum,
we introduced technologies for a low-carbon
society, such as hybrid trains and environmentallyconscious data centers. During panel discussion, thetopic of policies towards energy-efficient end-use
and energy-efficient technologies was vigorously
discussed.
Forum results were compiled into a report andshared with the European Commission, officials
in the various European governments, and ourbusiness partners.

Global External Relations Initiatives
Partnerships to Create Next-Generation Cities
We are pushing forward with a range of initiatives
to create next-generation cities that have a low
environmental burden by exploiting advanced
technologies based on smart grids.
In ﬁscal 2010, we participated in the Japan
Smart Community Alliance, established by the New
Energy and Industrial Technology Development
Organization (NEDO), as a member of the board.
We are conducting studies and veriﬁcations on
smart community projects not only in Japan but
also in China, Spain, Hawaii, etc. , with the supportof government organizations such as METI, Ministryof Land, Infrastructure, Transport and Tourism(MLIT) of Japan, and NEDO.

Panel discussion at the EU Hitachi Science and Technology ForumThe 12th EU Hitachi Science andTechnology Forum
Hitachi Europe Ltd. and Hitachi, Ltd. have beenorganizing the EU Hitachi Science and Technology

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Communication with Shareholders andInvestors

Communication with Shareholders and Investors
To ensure that shareholders and investors canmake sound investment decisions, we provide
the information they need in a fair, transparent
and appropriate way that strives to enhancecommunication with them.

Policy on Information Disclosure
We communicate with shareholders and investors
guided by our disclosure policy. We disclose not
only information required by laws or regulations,but also information that promotes deeper
stakeholder understanding of our management
policies and business activities, including theirrelation to creating sustainable long-term value.

appropriate, precise and timely manner.
4. Quiet Period
Hitachi stipulates a quiet period of a certain length prior toearnings announcements to prevent information leaks and tomaintain disclosure fairness. During this period, Hitachi refrainsfrom answering inquiries about business performance andrelated matters.
5. Forward-Looking Statements
For disclosures, Hitachi may make statements that constituteforward-looking statements that reﬂect management’s views
with respect to certain future events and ﬁnancial performanceat the time of disclosure and include any statement that does notdirectly relate to any historical or current fact. Such statements
are based on information available at the time of disclosure andare subject to various risks and uncertainties. Certain forwardlooking statements are based upon assumptions of future events
which may not prove to be accurate. Hitachi discloses the factorsthat could cause actual results to differ materially from thoseprojected or implied in forward-looking statements.

Disclosure Policy
1. Basic Policy
Hitachi’s corporate credo is to contribute to society through thedevelopment of superior, original technology and products.
With this in mind, Hitachi seeks to maintain and develop trust
relationships with all stakeholders, including shareholders
and other investors, customers, business partners, employees
and regional communities. We will fulﬁll our responsibility
to stakeholders by disclosing information in a fair and highly
transparent manner, and by conducting various communication
activities.
2. Information Disclosure Standards
Hitachi discloses information as appropriate in a fair and highly
transparent way, in compliance with the laws and regulations of
the stock exchanges on which the Company is listed.
Hitachi discloses not only information required by laws andregulations, but also management and ﬁnancial information thatis regarded as useful in deepening stakeholder understandingof Hitachi management policy and business activities. Hitachi
also discloses non-ﬁnancial information on the social andenvironmental impact of Hitachi Group activities. Hitachi’s
stance on disclosure recognizes that society regards the above
information as important.
3. Disclosure Methods
Hitachi uses appropriate means to disclose the information
required by laws and regulations of the stock exchanges on
which the Company is listed. The Company also posts thisinformation on Web sites immediately after it is disclosed.
Hitachi also discloses information not required by laws
and regulations by distributing news releases, holding press
conferences and presentations, posting information on
Web sites, and conducting other disclosure activities in an

Proactive IR Approach
Our diverse investor relations activities include
business strategy meetings for institutional
investors and analysts, tours of plants and R&D
facilities, participation in brokerage-sponsoredinvestor meetings, and one-on-one meetings withinvestors and analysts.
In ﬁscal 2010, we held quarterly ﬁnancial results
brieﬁngs and corporate strategy meetings on the2012 Mid-Term Management Plan, which promotes“Growth Driven by Social Innovation Business” and“Solid Financial Base.” We hosted the ﬁrst Hitachi
IR Day, where company presidents and CEOs
explained their businesses strategies under the2012 Mid-Term Management Plan. Feedback frominstitutional investors and analysts was positive.
One said, "We are better able to understandHitachi’s businesses …, which I found useful for
analysis." We plan to hold this event regularly.
We also communicate extensively with individual
investors through brokerage-sponsored brieﬁngs.
We conduct one-on-one meetings with institutional
investors and analysts worldwide. We convened
more than 600 similar meetings in ﬁscal 2010, a

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Communication with Shareholders andInvestors

signiﬁcant increase over last year. We are doing ourbest to share IR feedback in-house and reﬂect thisin management and operations.
We are committed to timely disclosure and wepost brieﬁngs and other materials on our investor

relations Web site. A part of the site, speciﬁcallydesigned for individual investors, provides
information that cultivates a deeper understandingof the Hitachi Group.

General Meeting of Shareholders
At the ordinary general meeting of shareholders,
we offer audio-visual reports designed to give
shareholders a thorough understanding of oursituation.
After the general meeting of shareholders,
our Web site discloses management policy
explanations from the president for shareholders
and investors. We post notices of general meetingsof shareholders earlier than legally required to give
stakeholders more time to consider our proposals.
The corporate strategy meeting on 2012 Mid-Term Management Plan

Disclosure Tools∙ Financial results∙ Annual and quarterly reports pursuant to the Financial Instruments

and Exchange Law of Japan∙ Form 20-F ﬁlings with the United States Securities and Exchange

Commission (SEC)∙ Annual reports∙ Hitachi Group Corporate Sustainability reports** From ﬁscal 2011, Hitachi Group Sustainability ReportSocially Responsible Investment (SRI†1)
and Sustainable Investment
Assessments in Fiscal 2010
The Hitachi Group performed well in external
assessments as a socially responsible andsustainability investment.
In ﬁscal 2010, DJSI World, a leading global
sustainability investment index, chose Hitachi,Ltd. as a component stock for the second year in arow. This benchmark assesses the sustainability ofaround 2,500 companies worldwide, ﬁrst looking at
economic, environmental, and social development,
then selecting the top 10 percent of companies in

Trends in Shareholder Composition
Financial institutions& securities ﬁrms

Individuals

Foreign investors

March 2007

27.63

28.09

40.49

March 2008

27.16

27.06

42.10

Other institutions
3.79
National& local governments
0.00
3.68
0.00
4.03
0.00

March 2009

30.60

30.24

35.13
3.41
0.00

March 2010

29.49

31.61

35.49
2.26
0.00

March 2011

30.36

29.69

37.69
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Results of External SRI Assessments in Fiscal 2010
Institution
SAM

Index
1

DJSI* World

Companies selected
Hitachi, Ltd.

DJSI Asia Paciﬁc Index

Hitachi, Ltd. / Hitachi Chemical Co., Ltd.
2

EIRIS

FTSE4Good Global Index*

Hitachi Chemical Co., Ltd. / Hitachi Capital Corp. / Hitachi High-Technologies Corp. /Hitachi Maxell, Ltd. / Hitachi Koki Co., Ltd.

Morningstar

SRI Index

Hitachi, Ltd. / Hitachi Cable, Ltd. / Hitachi Chemical Co., Ltd. / Hitachi Construction
Machinery Co., Ltd. / Hitachi High-Technologies Corp. / Hitachi Transport System, Ltd.

*1 DJSI (Dow Jones Sustainability Index): A global sustainability investment index that was developed by Dow Jones & Company (U.S.A.) and Sustainable Asset Management(SAM) Group (Switzerland). The Asia Paciﬁc Index—covering Japan, Asia, and Australia—was launched in 2009.
*2 FTSE4Good Global Index: An index developed in the UK by Ethical Investment Research Services (EIRS), which evaluates corporations, apart from speciﬁc industries, based on
their environmental, social, and human rights performance.

each industry. We received the highest score in our
industry for our new economic criteria for brandmanagement and new environmental criteria forwater-related risks. Our environmental initiatives
scored the highest among all the companies. We
also made the Silver Class in the Sustainability
Yearbook 2011, published in February 2011, by
SAM†2 and PricewaterhouseCoopers.
†1 SRI: Socially responsible investment, where investment funds evaluate companies and select stocks from a CSR perspective.
†2 SAM: Sustainable Asset Management. A Swiss sustainability investment
research and asset management company.

Basic Policy for Prevention of Takeovers
We invest considerable management resourcesin basic research for the future and for thedevelopment of pioneering products andbusinesses. To ensure that these management
measures bear fruit, it is necessary to maintainthe continuity of management policies overa certain period of time. To this end, we keepshareholders and investors informed not only
about management results for each term but
also management measures looking ahead to the
future.
We do not deny the signiﬁcance of stimulating
corporate activities or the economy through thetransfer of management control rights. However,regarding large purchases of Hitachi and HitachiGroup companies’ shares, it is necessary to
cautiously assess the impact that such a purchaseor purchase proposal would have on our corporate
value and shareholders’ joint proﬁts, based on

considerations such as the purchaser’s businessproﬁle, future plans, and past investment behavior.
At present there is no imminent concern thatany particular party will acquire a large amount of
Hitachi’s shares, and we have not established any
special measures (anti-takeover measures), shouldsuch a purchaser appear.
Nevertheless, as a natural duty to ourshareholders and investors, we constantly monitor
Hitachi share transactions and movements, andif a party appears attempting to purchase large
amounts of shares, we will immediately take themeasures considered appropriate. Speciﬁcally, thiswill mean assessing the purchase proposal with theassistance of external experts, as well as negotiatingwith the purchaser. In addition, when such anacquisition does not contribute to our corporate
value and the joint proﬁts of shareholders, we willpromptly determine the need for and contents ofspeciﬁc countermeasures, and set up a framework
for their implementation. A similar response will
be made in the event of any attempt to purchaselarge amounts of the shares of any Hitachi Group
company.

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Social Contribution Activities
Our social contributions are tailored to local
needs, but help to resolve the challenges facing
a global society. In emerging economies, weare tackling poverty, starvation, disparities in
education and medical care, and destruction of
the environment.

Note: Data on Hitachi, Ltd.
and ﬁve foundations in JapanFY 2009 Breakdown of Funding
for Social Contribution Activities
Other 9%Social welfare
21%

Environment 4%
Culture and the arts
13%

Total expenditure:
1.347 billion yen

Philosophy and Policy
For social contributions, we are committed toresolving the basic social issues in the communities
where we operate. We work in cooperation withGroup employees, Group companies and our six
foundations, based on our Social Contribution
Philosophy and Policy. We are always mindful of ourGroup Vision of “tackling the basic issues faced by
global society.”
These activities help us to build trust withSocial Contribution Philosophy and Policy
Philosophy
The Hitachi Group strives to demonstrate good corporate citizenshipin response to social needs and expectations, while endeavoring toenrich 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 optimaluse of our knowledge and information technology in three speciﬁcareas: education, the environment, and social welfare.
Adopted February 2002

Scholarships and education
53%

communities as a good corporate citizen and to
inspire more ﬂexible thinking, as well as a greatercommitment in those employees who are helping
to improve the social infrastructure in theircommunities. Through our innovations and social
contributions, we foster the development of both
local communities and sustainable business.
Hitachi, Ltd. and the ﬁve foundations in Japan
contributed around 1.35 billion yen as social
contributions in ﬁscal 2009.
WEB Hitachi: Global Community Relations and Activities
http://www.hitachi.com/Int-e/skk/index.html

Education
Monozukuri, the heart of our business
manufacturing approach, is founded on soundhuman resources. We instill a keen sense of social
awareness in our engineers and we nurture theirambition and technical capabilities to overcome

Approach to Social Contribution Activities

Foundations

Active operations as Hitachi Group Foundations
Dissemination of information

Vitalization of business activities
through more ﬂexible thinking and agreater desire to work

Enhanced brand value

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Business partners

Hitachi Group
companies

Actively engaging in social contribution activities to enhancebrand value
Supporting the volunteer activities of employees
Social contribution activities that allow us to fulﬁll our duty tosociety, such as disaster assistanceLocal
communities

Customers

Volunteer activities, etc.

Shareholders

Individual fulﬁllment

Hitachi Group
employees

Realization of a better society

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Environmental ReportSocial ReportSocial Contribution Activities

new challenges and achieve their dreams. We do
this to ensure that the technical and other expertisethat our people have accumulated is useful for thedevelopment of the next generation of engineers.
Providing Educational Support
in Emerging Countries
Emerging markets are vital to Hitachi’s business,while these same markets urgently need to create
outstanding engineers and technicians to drive
national development. We provide support for thedevelopment of young engineers and technicians inthese countries.
In India, Hitachi operates the Hindu-Hitachi
Scholarship Program in conjunction with a leading
Indian newspaper, The Hindu. Under this program,
three young engineers are invited to Japan every
year from India for six months of training intechnical skills, such as design and quality assurance
as well as in the Japanese language. Around 130
young trainees have completed this program since
it began in 1960.
To develop the next generation of leadersin Indian manufacturing, Hitachi India is also
cooperating in the development of the Visionary
Leadership for Manufacturing Program conductedby the Indian Institute of Management Calcutta,
the Indian Institute of Technology Kanpur andthe Indian Institute of Technology Madras andsponsored by the Confederation of Indian
Industries. This program develops leaders witha clear vision and creates strong partnerships
between industry and academia through cuttingedge research and development based on theneeds of India’s manufacturing sector. So far,
Hitachi India has held two month-long internshipprograms, where students have gained a deeper
understanding of the Hitachi Group. They also
participated in a real industry project.
Hitachi will continue with these activities to help
boost the level of manufacturing technologies inIndia.
Elsewhere in Asia, we have conducted the
Hitachi Young Leaders Initiative since 1996 tooffer university students from Indonesia, Japan,
Malaysia, the Philippines, Singapore, Thailand andVietnam, opportunities to raise their awareness ofcommon issues in Asia by taking part in forums,
panel discussions and ﬁeldwork. In ﬁscal 2010, tocelebrate the 10th anniversary of the program, andour own centennial, a special Alumni Forum wasorganized. We brought together alumni to discuss
the theme of “Driving Asia to a new paradigm—
what is Asia’s role in the global arenas?” At the
opening of the forum the guest of honor, Mr. Teo
Chee Hean, Singapore’s Deputy Prime Minister andMinister for Defense, spoke of his hope that the
program alumni and other promising young leaders
would make a sustained social contribution. Asia’s
now global importance is expected to grow still
further in the years ahead, so we will continue tocontribute to a bright future and further growth in
Asia through the development of next-generation
human resources.

Students taking part in the Hindu-Hitachi Scholarship Program

Supporting Science Education
We provide children with many opportunities tolearn about science and technology. Our goal is to
overcome an increasing disinterest in science, mathand technology among the young generation andstimulate their interest and desire to learn.
Having concluded a basic agreement on
partnership and cooperation with Hitachi City,
Ibaraki Prefecture, Japan, in 2009 to back the city’s
drive to enhance science education, Hitachi, Ltd.
provides support for the operation of the Hitachi
Science Club, a non-proﬁt organization foundedin May 2009. The club consists of around 100

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some 30 pupils the opportunity to learn aboutbuoyancy using model hot air balloons and aboutwater puriﬁcation using magnets (ballast water†1
treatment experiment). The children took part inthese experiments with enthusiasm, learning while
having fun. This program has also been held in
the United Arab Emirates and China. Hitachi Plant
Technologies will continue to hold these locally
geared programs worldwide to stimulate theinterest of the children who are our future.

Conducting a scientiﬁc experiment (Hitachi Science Club)

retired employees from our plants and research
institutes, including doctors, professional engineers,
manufacturing engineers, and senior engineers
with top-class specialist skills, who volunteer theirservices.
The Hitachi Science Club offers six programs,
including dispatching volunteers to support scienceclasses at elementary and junior high schools,
operating a science and mathematics academy forjunior high school students with a strong interest inthese subjects, and organizing classes for hands-on
experiments in making magnetically powered cars
and water rockets. In ﬁscal 2010, 280 classes were
held for 15,673 students. This year, volunteers are
visiting 19 of Hitachi City’s 25 elementary schools
twice a week as special science consultants. They
help to prepare science experiments and answer
students’ questions. This program will be extended
to all elementary schools in the area during ﬁscal
2011. We are committed to supporting the Hitachi
Science Club, so that these senior engineers canuse the expertise and skills built up over the years
to educate children and provide them with theopportunity to experience for themselves the joy ofscience and the wonder of creation.
Hitachi Plant Technologies, Ltd. has beenrunning the Community Partnership Academy of
Wisdom, an environmental and science programfor students that leverages the company’s expertisein air conditioning and water treatment. In ﬁscal
2010, instructors visited the Cairo Japanese Schoolin the capital of the Arab Republic of Egypt to give

†1 Ballast water: Seawater used for balancing a ship, which can harm marine
ecosystems because the water is taken aboard and then discharged indifferent parts of the sea

Experiment using a hair dryer to suspend a model hot air balloon (Egypt)

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Some Other Hitachi Group Education Initiatives
Company

Initiative

Overview

Hitachi Chemical Co., Ltd

Chemical experiment classes

Summer vacation observation classes for parents and children as well as chemical
experiment classes are held at the company’s four plants. In ﬁscal 2010, classes,
including those for chemical experiments, were held at the Ibaraki University
College of Science, Kaisei Academy and Hitachi City’s Hitachi Eco-City Fiesta inJapan.

Hitachi Maxell, Ltd.

Kyoto Edison Program

Hitachi Maxell’s Kyoto Works has held an annual workshop for parents and children
on building dry cell batteries every year since ﬁscal 2006. In ﬁscal 2010, the ﬁrst
classroom visits were held in elementary schools in Nagaokakyo City in Kyoto
Prefecture, Japan. So far, classes have been held at 11 schools for 880 people.

Hitachi Solutions, Ltd.

Internship program for solution experts

Internships are offered to undergraduate or postgraduate students about to moveinto the workplace so that they can experience ﬁrsthand and understand systems
engineering and sales and marketing in an IT company. Since ﬁscal 2007, thecompany has hosted around 6,800 students, who have participated in businesssimulations and systems development under the guidance of company staff.

Hitachi Construction Machinery
Indonesia, PT (HCMI)

Educational support for elementary school students

HCMI staff volunteers teach mathematics and English to children fromdisadvantaged homes at elementary schools in Bekasi and Cibitung in Indonesia.
Since ﬁscal 2009, 12 HCMI employee volunteers have taught more than 100
students at three elementary schools.

Chemical experiment classes (Hitachi Chemical)

Kyoto Edison Program (Hitachi Maxell)

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The Environment

TOPICS
Outstanding Performance Commendationin the Barrier-Free, Universal Design
Contributors Awards†1
One Hitachi program organizes volunteer
visits by employees from the Hitachi Groupto elementary schools to give hands-on
workshops on Universal Design (UD). This
program shows children the importance ofUD from a product developer’s perspective.
In 2010, this program received the Ministerof State for Special Missions’ Outstanding
Performance Commendation in the NinthBarrier-Free, Universal Design Contributors
Awards sponsored by the Cabinet Office inJapan. Since the program was launched in
2005, approximately 6,000 children from 98
schools have participated in 187 workshops.
Drawing on the experience of thisprogram in Japan, a similar program
has been launched, as of 2009, forelementary school students in the UnitedStates. Preparations are also underway
for programs in the United Kingdom
and Malaysia. This program will also be
gradually extended to other countries andregions where the Hitachi Group operates,
helping more children understand the UD
philosophy.

Hitachi’s environmental management mitigatesincreasingly serious global environmental
threats and helps to achieve a more sustainable
society. In our social contribution activities
too, Group employees and members of theirfamilies are involved in planting trees and otherenvironmentally conscious projects in keepingwith the two main Environmental Vision priorities:
prevention of global warming and preservation of
the ecosystem.
Desert Afforestation Volunteer Program
Since ﬁscal 2007, Hitachi, Ltd. has been organizing
annual volunteer experience tours in conjunction
with G-Net, a non-proﬁt afforestation organization
working in the Horqin Desert in Inner Mongolia,
China. This program was designed to raiseawareness of the environment and ecosystems
among Hitachi Group employees in Japan and
China and their families through their participationin afforestation. As well, it encourages them toconsider what they can do personally and how they
can begin to take action.
In ﬁscal 2010, 22 people—employees of the
Hitachi Group in Japan and China and their family
members—participated in the fourth tour, which
ran for six days from September 17. To celebrate
the International Year of Biodiversity, as well as
Hitachi’s 100th anniversary, one area of the desert
was designated the Hitachi Group Forest. For
the next decade, we will provide support for thisafforestation project.

Children’s ideas fora remote control (U.S.)

A hands-on
UD workshop†1 Barrier-Free, Universal Design Contributors Awards: Launchedby the Cabinet Office, Japan, in ﬁscal 2002, these awards
honor individuals or organizations for service or performance infacility development or product development, promotion anddissemination of barrier-free UD.

Volunteer Experience Tour to the Horqin Desert
Afforestation Project in China

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We will continue to work to preserve
ecosystems, encouraging as many employees as
possible to experience ﬁrsthand the importanceof ecosystem preservation and to instill a sense ofunity across the Group.
Woodland Preservation
Hitachi Volunteer Seminars encourage employees
to volunteer for worthy causes. In ﬁscal 2010, tomark the International Year of Biodiversity, three
outdoor seminars were held in Okutama, Tokyo.
The theme was going out into local woodlands
on weekends. These woodlands are critical forpreserving local ecosystems, recharging water
resources and preventing natural disasters, but the
impact of urbanization, depopulation, and aging inrural villages has caused woodlands to deteriorate.
To help stem this trend, Hitachi Group employees
and their families take on practical seasonal tasks,
such as cutting back summer undergrowth, autumn
thinning, and winter pruning. They learn ﬁrsthandthe importance of preserving woodlands and the
beneﬁts of forests. About 100 people participatedin these three seminars.

Woodland preservation in Okutama, Tokyo

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Other Hitachi Group Environmental Protection Programs
Company

Initiative

Hitachi Solutions, Ltd.

Terraced rice paddy restoration

The Hitachi Solutions Rice Paddy Project restores a part of rice terraces in
Yokosawairi in Akiruno City in Tokyo. From June to November 2010, 66 employees
took part. After the paddies were restored, though harvests have been small, someﬁreﬂies have returned.

Hitachi Electronics Services
Co., Ltd.
Kansai Regional Office

Forest preservation

In May 2010, company employees and their families, about 25 people in all,thinned trees in a forest in Sendaiji in Ibaraki City, Osaka Prefecture, Japan. They
used the wood to try their hand at making charcoal. In November, 15 employees
cleared away and thinned trees on the hillsides behind the Ibaraki City Satoyama
Center.

Hitachi, Ltd. Information &Telecommunication Systems
Company

Hakone Forest Restoration Project

In October 2010, around 150 Hitachi Group employees and family members
helped conserve trees in the 21st Century Forest (Minamiashigara City, Kanagawa
Prefecture, Japan) in conjunction with the Kanagawa Forest Instructors’ Association.
In addition to thinning trees and clearing underbrush, they observed nature andlearned woodcraft.

Hitachi Terminals Mechatronics
Philippines Corporation(HTMP)

Adopt-A-Forest Program

Since ﬁscal 2006, HTMP has been participating in the Adopt-A-Forest Program, aproject initiated by the Subic Bay Metropolitan Authority (SBMA) Ecology Center,
Philippines. In June 2010, 18 HTMP employees planted around 400 fruit tree
seedlings. HTMP plans to continue with regular maintenance and planting.

Terraced paddy ﬁeld restoration(Hitachi Solutions)

Overview

Adopt-A-Forest Program (HTMP)

Making charcoal(Kansai Regional Office, Hitachi Electronics
Services)

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Social Welfare
We also support social welfare projects toensure that everyone can enjoy the beneﬁts oftechnological progress, placing special emphasis
on promoting the education of the young, theindependence of people with disabilities, andhelping the elderly.
Hitachi Group Activities in North America
The Hitachi Community Action Partnership (HCAP)
is a program of The Hitachi Foundation (U.S.) andthe Hitachi group in North America. Community
Action Committees (CACs) led by employees from
Hitachi Group companies throughout the region,
provide support for non-proﬁt organizations
with programs focused on local needs. Today, 40
CACs are active in North America, with employees
representing 47 business locations from 19 Group
companies.
In April 2010, 16 Hitachi Consulting employees
from the southern California area volunteered
to build houses with Habitat for Humanity. ThisNGO builds houses for people in need, including
victims of disasters, in 100 countries around theworld. In July, more than 7,350 employees from
28 Hitachi Group companies in North America
also took part in the 11th Annual Hitachi North
America Food Drive, a month-long food donation
campaign. They collected around 21 tons of foodand received about US$80,000 (around 6.8 million
yen) in donations. All the food and cash donations
were given to local food banks and NPOs (non-Habitat for Humanity volunteers

Participants in Food Drive

proﬁt organizations) in North America offering foodprograms. The total was about enough to feed
27,000 people for a week.
To improve their effectiveness, CACs use a selfassessment tool called the Mastering Community
Action Framework that measures their operations
and activities against clear, concrete benchmarks.
Making a Social Contribution through Sign
Language
For visitors with impaired hearing, Team Swan,
formed in February 2005 by Hitachi Group
employees with hearing disabilities, provides sign
language services at events around Japan. Team
Swan began with the goal of providing accurate
information through detailed explanations for the
hearing impaired, who are often left behind as
information becomes more diverse and complex.

Employees on Team Swan talking to customers in sign language

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In March 2011, the team had eight signers, whoprovide explanations at company and outside
events as well as at retail consumer electronics
stores. They also hold exchange meetings withschools for the hearing impaired. These volunteers
normally work in their departments, but say thatbeing able to help other people in the same

position through Team Swan has boosted theirown motivation to work. In 2010, Team Swan wasfeatured on The Nikkei Web site and in Shougaishaga Kagayaku Soshiki (Organizations Where the
Hearing Impaired Shine), a book available from
Nikkei Publishing.

TOPICSIT Education at Child Care Centers
Hitachi Information Academy Co., Ltd. (HitachiIA) is an IT training organization that operates
Smile Delivery, a program that sends Hitachi
volunteers to child care centers to teachchildren basic computing skills. In June 2009,
the company launched a “wish” system for all
employees to suggest ideas; the Smile Delivery
program grew out of a suggestion from one
employee. In February 2009, this Hitachi IA
employee—who was participating in social
contribution evening classes†1 organized by
Hitachi, Ltd.—heard a lecture on support forchild care institutions. She realized that if
she didn’t act, nothing would change. Onceher suggestion was adopted, an email wassent to all employees looking for volunteers.
Thirty people responded, and thanks to theircooperation and understanding, the program
was launched in March 2010. It operates under
the auspices of Kibo-no-Ie (Hope House), a social
welfare public corporation based in Katsushika
Ward, Tokyo. Three classes have been held so far.
The children have said that it was an interestingﬁrst-time experience, and that it was so muchfun that they would like the volunteers to visit
again. Ms. Asami Matsuno, the person who
suggested this idea, hopes that the projectwill continue, becoming a model not just forher own company but also for other Group
companies.

Asami Matsuno (right) from the Training Service Division, original
proponent of Smile Delivery, and volunteer Aoi Kozuki from theMarketing Division†1 Social contribution evening class: Lectures given regularly to foster thevolunteer spirit in Hitachi Group employees

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Other Hitachi Group Social Welfare Initiatives
Company

Initiative

Overview

Hitachi Information Systems,
Ltd.

Interview support for people with disabilities

To help people with disabilities ﬁnd work and to participate in social activities,
we work with Tsukuba University of Technology, Ibaraki Prefecture, Japan, to holdmock job interviews for people with disabilities, who also receive guidance on job
seeking, including how to market themselves and how to write a résumé.

Hitachi Cable, Ltd.

Volunteer activities of the Marathon Club(Support for visually impaired athletes)

Employees in the Marathon Club volunteer in local communities. At theKasumigaura Marathon and International Blind Marathon held at Ibaraki
Prefecture, Japan, they assist visually impaired runners, including runningalongside as escorts.

Hitachi Transport System, Ltd.

Traffic safety education

Hitachi Transport System provides traffic safety education for elementary
school students. In addition to learning basic traffic safety, students take part inexperiments. For example, they learn about blind spots and the difference between
where a truck’s front and back wheels go when it turns a corner. In ﬁscal 2010, 305
students took part in this program. Traffic safety education was also provided forthe elderly, with around 30 people participating.

Hitachi Global Storage
Technologies China Operation

Morning Sun Program

In this voluntary program, Hitachi employees contribute 800 yuan per year—
individually or as a group—towards a fund for children who are living in poverty
in Gongby Town in Guangdong Province, China. In ﬁscal 2010, more than 50
employees helped support 16 children. The fund supports the children by providingthem with the daily necessities.

Volunteers escort blind runners (Hitachi Cable)

Traffic safety education for children(Hitachi Transport System)

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Hitachi employees visited the children supportedby the Morning Sun program with the schoolbags donated by the company. (Hitachi Global
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Hitachi’s Foundations
Hitachi’s six foundations worldwide, operate in awide range of areas, including supporting family
education, promoting science and technology
research, inviting Southeast Asian university faculty
members to Japan, helping with environmental
conservation, supporting the sound developmentof young people, and developing good corporate
citizenship in the United States.

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

WEB The Foundation in Hitachi Group
http://www.hitachi-zaidan.org/global/index.html

Award winners growing gourmet mushrooms with waste

drawing on the experiences and lessons learned
by these young entrepreneurs to address thesustainable business practices and the role ofbusiness in improving lives and strengthening
communities.
WEB The Hitachi Foundation (U.S.)
http://www.hitachifoundation.org/

Yoshiyama Young Entrepreneurs Program
In ﬁscal 2010, The Hitachi Foundation (U.S.)
launched the Yoshiyama Young Entrepreneurs
Program, the successor to the Yoshiyama Award
for Exemplary Service to the Community, which
had run since 1988, more than two decades. The
original Yoshiyama Award honored high school
seniors in the U.S. for their community service andsocial change efforts. The award included a cash
prize and participation in a four-day program that
included a commendation ceremony and leadershiptraining.
The new program provides young entrepreneurs
who are operating a business aimed at helping to
improve the lives of underprivileged individuals in
the United States, and who began their businesses
before they reached the age of 30. In ﬁscal 2010,
nine young people were named Yoshiyama Young
Entrepreneurs. They represent six enterprises that
help farm and forestry workers, female immigrants,
and support underprivileged entrepreneurs. Each
enterprise received a cash prize of US$50,000(given out over two years) as well as mentoring andtechnical assistance to help grow their business.
The Hitachi Foundation looks forward to

Support for Volunteer Activities
We support employees who volunteer in three
ways: with information, time off, and funding
support. For information, we publish information
about volunteer activities at seminars and on
our intranet. In ﬁscal 2010, we sponsored four
seminars, including three outdoors. For time off,
we provide employees with special annual paid
leave on top of their regular holidays which they
can use for volunteering or for other forms of selffulﬁllment. For funding support, we operate The
Growing Tree, a volunteer program that provides
ﬁnancial assistance to non-proﬁt organizations that
Hitachi employees are involved with or support asvolunteers. Assistance was given in 12 cases foraround 3.2 million yen in ﬁscal 2010.
Main Activities Supported by
The Growing Tree (FY 2010)
Training volunteers for environmental protection
Helping Japan’s farmers, who are struggling with a labor shortage becauseof depopulation, aging, and the falling rate of food self-sufficiency
Putting up side fences for sports ﬁelds for blind soccer players

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Disaster Relief and Recovery
Recovery Support for Areas Affected by theGreat East Japan Earthquake
As of June, 2011, the Hitachi Group decided toprovide support with a total value of 940 million
yen, including the provision of ﬂat-panel TVs, drycell batteries, and Disaster Victim Support Systems†1
for local municipalities with no charge and to aid
victims of the disaster and to assist in recovery
efforts (see pages 010–014).
†1 Disaster Victim Support Systems: A system that provides support tooperations undertaken by municipal governments in the event of anearthquake or other natural disaster. The system’s program is provided by the
Local Authorities Systems Development Center (LASDEC).

Support for Disaster Recovery in Oceania
Torrential rains in northeastern Australia at theend of 2010 caused catastrophic ﬂooding. In
Queensland, collapsed river banks and dykes,
among other problems, created terrible ﬂood
damage over a wide area. Hitachi Australia andfour Hitachi Group companies donated AU$50,000(around 4.1 million yen) to the Premier’s Disaster
Relief Appeal administered by the Queensland
government.
Following the 6.3-magnitude earthquake that
occurred in Christchurch, New Zealand, in February
2011, the Hitachi Group donated NZ$100,000(approximately six million yen) for victim relief andfor rebuilding the city.

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Respect for Human Rights

Respect for Human Rights
Cherishing humanity is fundamental tomanagement at Hitachi. When operating
globally, we respect human rights based oninternational codes for all of our stakeholders,appreciating the cultures of every country andregion to enhance our understanding of theirvalues.

Human Rights Policies
We established the Hitachi Group Codes of Conduct
in 2010. Central to these rules are respect fornational and regional laws as well as universal
human rights based on international norms. Our
codes clearly require: respect for the individuality
and personalities of everyone related to ourbusiness; the elimination of discrimination in
recruitment and employment; and respect for basic
human rights in all workplaces. We have translated
the codes into 17 languages to improve human

Hitachi Group Codes of Conduct
Chapter 4 Respect of Human Rights
4.1 Promoting Respect of Human Rights(1) We will respect international standards of conduct
regarding human rights, and strive to ensure that we do
not engage in any conduct that obstructs or interferes withhuman rights.
4.2 Eliminating Discrimination(1) We will respect every person’s character and individuality
in the recruitment and treatment of employees, theconduct of commercial transactions, and all othercompany activities, and not engage in any acts that impair
individual dignity or discriminate on the basis of sex, age,nationality, race, ethnicity, ideology, belief, religion, social
status, family origin, disease, disability, etc.
4.3 Respect of Human Rights in Information
Management(1) We will establish information ethics based on considerationof human rights and the maintenance of security
in information handling, to prevent in advance theemergence of problems from personal information leaks,
computer viruses, and unauthorized access.
4.4 Respect of Basic Rights at Work
(1) We will advance employment with proper consideration
for corporate social responsibility. We will hire employees
in accordance with the governing domestic, foreign andlocal laws in each country and region. We will not use childlabor that employs children below the minimum working
age or coerced labor that is against the will of the workers.
(2) We will conduct procurement with proper consideration forcorporate social responsibility, and will not procure goods
or services from enterprises that utilize child labor or forcedlabor.
(3) Considering the laws and regulations and labor practices
in each nation and region, and respecting the basic rightsof employees presented as the principles of the United
Nations Global Compact, we will strive to have employees
and managers better understand each other’s problems
and resolve issues jointly through genuine and constructive
dialogue.

rights awareness among all Group employees
worldwide.

Framework for Promoting Respect for
Human Rights
Hitachi, Ltd. established the Central Human Rights
Promotion Committee to deliberate on mechanisms
and policies to prevent human rights violations.
A Hitachi, Ltd. executive officer chairs this body,whose members include representatives fromsales, procurement, human resources, and othercorporate units. Information from deliberations is
Hitachi, Ltd. Framework for Promoting Respect for
Human Rights

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Central Human Rights Promotion Committee
Chairperson: Executive Officer
Members: Personnel in charge of corporate divisions
such as marketing, procurement, humanresources, and other divisions
Company and Business Site Committee
Chairperson: In-House Company Presidents
and Division Heads
Members: Division managers
Company and Business Site Committee
Chairperson: In-House Company Presidents
and Division Heads
Members: Division managers
Company and Business Site Committee
Chairperson: In-House Company Presidents
and Division Heads
Members: Division managers

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shared with all employees through company andbusiness site committees, led by company anddivision executives.

Raising Awareness of Human Rights
Hitachi improves Group-wide human rights
awareness based on guidelines from the Central
Human Rights Promotion Committee. We augment
business units’ regular group training, seminars,
and video education sessions with the human rights
e-learning course that the 260,000 employees of
all 440 Group companies in Japan take once every
three years.
We collaborate with our European CSR teamto produce educational materials that include
concepts from regions where human rights
practices are advanced. We maintain a framework
to more swiftly detect and resolve internal andexternal human rights violations. This framework
includes the Compliance Reporting System, a sexual
harassment consultation system, and employee
awareness surveys. We strive to identify humanrights risks globally through regular management
and business risk assessments.

Sixty percent of senior management-level
employees at European Group companies
completed Senior Manager training in ﬁscal 2010.
In March 2011, Hitachi Europe, Ltd. conducteda stakeholder dialogue on human rights withrepresentatives from the European Commission,international bodies, national governments, andnongovernment organizations. Executives from
Hitachi, Ltd. attended this gathering. We gained
valuable insights into the human rights activities
that the Hitachi Group must consider in global
business activities.

Stakeholder dialogue in Europe

VOICES

Applying Human Rights Worldwide
We have developed educational programs andmanagement best practices in Europe, which we
believe is the most advanced in addressing humanrights and business. We intend to apply these
programs and practices worldwide as a global
enterprise to ensure that Hitachi Group employees
and businesses consistently respect human rights.
Our European CSR team collaborated with
European Group companies to launch a humanrights project. We follow the work of Professor John
Ruggie, Special Representative of the SecretaryGeneral of the United Nations on business andhuman rights, and support his framework, Protect,
Respect and Remedy. The work during the earlystages of the project is setting up Hitachi in Europe
to implement the framework across its businesses.
We are educating employees on human rights,
ensuring that all relevant standards and policies are
up to date, and establishing business speciﬁc actionplans.

Acting with a Sense of Global Responsibility

Richard Howitt MEP
European Parliament Rapporteuron Corporate Social Responsibility

I welcome this Sustainability Report and
Hitachi’s journey to move beyond being a
Japanese headquartered company to beinga truly global company. With this global
status also comes a global responsibility.
It is vital that as a leading player insustainability that Hitachi continues
to take a leadership role on Corporate
Social Responsibility (CSR). Your focus
on Social Innovation Business from clean
trains to smart grids marks a step forward
in promoting measurable advances on

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sustainability,
Hitachi has also been one of the few
companies who commit publicly to a humanrights approach. Your objective is clear, tofoster a culture where there is awareness,understanding and appreciation of humanrights at all employee levels, and to ensurethat international human rights standards
are understood and met across yourbusiness. I hope Hitachi will actively takea leading role in promoting both the UN
Guidelines on Business and Human Rights
as well as increased transparency, bringing
ﬁnancial and environmental, social andgovernance issues together, side by side in
one integrated report.
During the year I had the pleasureof visiting your plant in Narashino andmeeting both management and workers
which was truly enlightening for me in
my work on global CSR. I look forward toworking more closely with you as part of mycontinuing work, and hope for your support
in developing collaborative ventures on CSR
between the Japanese Ministry for Economy
Trade and Industry (METI) and the European
Commission.
In conclusion, although establishing itself
globally Hitachi will I am sure never forget
its roots in Japan and will be part of thework to rebuild the Japanese economy andJapanese communities following the horriﬁcearthquake and tsunami. The challenges arehuge but the determination is tangible.

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Supply Chain Management

Supply Chain Management
One priority in the 2012 Mid-Term
Management Plan is to expand our global
procurement ratio, particularly by steppingup purchasing in emerging nations. This
will reinforce our global competitivenessand operational foundation. For global
procurement, we respect the human rights
and the basic work rights of everyone in the
supply chain. We collaborate with suppliers
in promoting CSR by sharing guidelines andcommunicating proactively.

Promoting Globalization
Using the 2012 Mid-Term Management Plan, we
intend to raise the Group’s global procurement
ratio from 36 percent to 50 percent by ﬁscal
2012. We therefore formulated the Hitachi Group
Medium-Term Procurement Strategic Plan. The
key aims are to establish global partnerships tocreate Group procurement strategies, to stabilize
the supply of materials, and to reinforce CSR andsustainability within the supply chain. In order toaccelerate these Group-wide activities, we set up
the Global Procurement Promotion Department
within the Corporate Procurement Division to boost
the global procurement ratio. We are continuing toreinforce our responsiveness to CSR risk, a growing
concern as the global supply chain expands.
Main Barometers
Global procurement ratio of Hitachi Group

36%

50%

Fiscal 2010

Fiscal 2012 target

Sharing Procurement Policies
We revised the Hitachi Guidelines for Procurement
Activities in June 2009 in line with the United
Nations Global Compact.†1 These guidelines
are the basis of our procurement activities. The
revision added the elimination of discrimination in

employment and occupations as well as all formsof child and forced labor. We will share global
supply chain issues within the Group and reinforce
procurement in line with the Hitachi Guidelines for
Procurement Activities.
†1 UN Global Compact: An international accord that Kofi Annan, the former
Secretary-General of the United Nations, proposed and which was adopted in
2000. This compact’s 10 principles on human rights, labor, the environment,
and anti-corruption encourage the building of a sustainable society. The
United Nations asks corporations, nongovernment organizations, citizens
groups, and other entities to base their actions on these principles. As of
March 2011, 8,711 organizations are supporting the UN Global Compact (ofthese, 139 are Japanese).

Guidelines for Procurement Activities
These guidelines deﬁne business transaction standards
which shall be applied to all HITACHI executives andemployees in connection with their activities purchasingnecessary materials, products, services, and informationfrom outside sources.
1. Overall procurement activities of Hitachi shall adhere
to the “HITACHI Company Conduct Standards.”
2. HITACHI shall maintain proper partnerships, mutual
understanding, and reliable relationships with
suppliers with a view to the long term results.
(1) HITACHI shall treat all suppliers impartially and beprohibited from favoritism such as giving unfair
priority to any speciﬁc suppliers.
(2) HITACHI respects fair business dealings with
suppliers and will avoid any improper act whichmight cause a loss to a supplier apart from normal
and customary business transactions.
(3) HITACHI shall keep suppliers’ trade secrets strictly
conﬁdential and prevent them from being
revealed or improperly used.
3. HITACHI develops suppliers to maintaincompetitiveness from a worldwide point of view.
(1) HITACHI responds to all suppliers’ offers sincerely,
and is always willing to offer the informationnecessary for suppliers to compete on an evenplaying ﬁeld.
(2) HITACHI shall periodically check and review
suppliers’ performance and will consider offering
more advantageous business opportunities whencomparison with other resources allows.
4. Through a designated selection process, suppliers
shall be evaluated by product quality, reliability,
delivery, price, suppliers’ business stability,
technical development ability, fair and transparent
information release, compliance with societies’

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rules, regulation compliance, respect for humanrights, elimination of discrimination in respect of
employment and occupation, elimination of all formsof forced and compulsory labor, environmental
preservation activities, social contributions, goodworking environment, and recognition of social
responsibilities with business partners.
(1) HITACHI shall not request quotations fromsuppliers with whom there is no intention toenter into a future business relationship.
(2) In accordance with speciﬁed internal procedures,the role and responsibility for speciﬁcations,terms and conditions, product acceptanceand inspection belongs to each Requester,
Procurement Department and Inspection
Department.
(3) Procurement Departments shall be a
representative of HITACHI when contracting with
suppliers.
5. HITACHI members are prohibited from receiving any
personal gifts or offers from suppliers.
Revised in 2009

Supply Chains, we support initiatives to build andfoster sustainable supply chains that follow UN
principles on human rights, labor, the environment,
and anti-corruption. In ﬁscal 2010, we helped
formulate guidelines on supply chain sustainability,
supply chain Web sites, and on-line assessment
and study tools for organizations participatingin the UN Global Compact. We will keep serving
as an opinion leader by supporting these UN
activities, drawing on our expertise from our global
operations in dealing withsustainability issues, suchas human rights and theenvironment.

Guidelines on Supply Chain
Sustainability*All companies in the Hitachi Group act in accordance with these guidelines.
WEB UN Global Compact
http://www.unglobalcompact.org/

Building Partnerships
The Hitachi Group values partnerships and an
open-door policy with suppliers. We strive tomaintain and reinforce mutual understanding
and trust over the long term. We also employ
worldwide perspectives, choosing suppliers in linewith the principles of free competition and equal
opportunity. One special priority is to cultivateand expand the pool of suppliers in the emerging
nations that we have positioned as major markets.
Following a 2009 initiative, we dispatchedanother team in October 2010 to seek new
suppliers in Vietnam. We gathered informationfrom the Japan External Trade Organization andother countries’ trade bodies on companies thatwere the focus of our research. We are reinforcing
procurement in Southeast Asia, China, South
Korea, India, and Eastern Europe to build our Social
Innovation Business. We also set up a procurement
unit in Brazil in April 2010 to broaden our SouthAmerican supplier network.

Sharing CSR AwarenessIn ﬁscal 2009, we produced the Hitachi Group
Supply-Chain CSR Deployment Guidebook,which conforms to the guidelines of the Japan
Electronics and Information Technology Industries
Association. We distributed this publication boththroughout the Group and to our suppliers. We
plan to evaluate progress on CSR among suppliers
worldwide to reinforce mutual understanding andcommunication about social issues.
WEB Hitachi Group Supply-Chain CSR Deployment Guidebook
http://www.hitachi.com/procurement/policy/__icsFiles/afieldfile/2010/08/30/
SC_CSR_E_2.pdf

Green Procurement†1
In keeping with our commitment to monozukuri
craftsmanship, we use green procurement in our
supply chain.
†1 Green procurement: Procuring parts and materials that reduce theenvironmental burden from suppliers that protect the environment.

Helping Create International Guidelines
As a founding member of the advisory group for
the United Nations Global Compact on Sustainable

Green Procurement Guidelines
We developed Green Procurement Guidelines

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to secure the understanding and cooperationof suppliers in conservation and in reducing
environmental burdens when developing andmaking their products. There are six speciﬁc supplierrequirements: (1) conserve resources, (2) conserve
energy, (3) pursue the 3Rs,†1 (4) reduce packaging,(5) rigorously manage chemical substances, and(6) fully disclose information. For requirements(1) through (4), we present case studies of initiatives
that have beneﬁted both the environment andsuppliers because they have cut costs and improved
product functionality. For requirement (5), we specify
the chemicals used in products from suppliers andhave them register those substances in the Green
Procurement System.
†1 3Rs: Reduce, reuse, and recycle
WEB Green Procurement Guidelines
http://www.hitachi.com/environment/library/pdf/green_en.pdf

Helping Build Environmental Management
Systems
To promote green procurement, we ask suppliers
to develop environmental management systems
that third parties can certify. Suppliers with thesecertiﬁcations become Green Suppliers. With theseGreen Suppliers, we launched the New MMM
Club,†1 where members exchange information on
advanced environmental technologies, regulations,and outstanding environmental initiatives bysuppliers. We will continue to encourage suppliers
to lower environmental risk and costs, while wekeep building win-win relationships with these
suppliers through green procurement.
†1 The MMM Club is an organization run primarily by suppliers who haveacquired environmental certification through Hitachi’s activities to support
their environmental programs. Mottainai, which means regrettable waste inJapanese, is now an international environmental term. The three Ms comefrom the first letter of mottainai.

New MMM Club General Meeting

Orientation on REACH†1 Compliance
Hitachi, Ltd. business sites and Group companies
held a supplier orientation on REACH compliance.
To ensure compliance with Europe’s REACH
regulations, they focused on surveys of chemical
substances in products.
Suppliers found the event stimulating. We
explained our response and other REACH-related
initiatives to the over 900 participants at the ﬁscal
2010 gathering.
†1 REACH regulation: Registration, Evaluation, Authorization and Restriction ofChemicals (EU)

Promoting Green Purchasing
We are improving our green purchasing
rate—the ratio of environmentally conscious
products purchased to total office supplies—byusing a Group-wide online purchasing system,
the e-sourcingMall. This system has a range ofenvironmentally conscious products. It promotes
purchasing by clearly labeling these products. For
ﬁscal 2010, our green purchasing rate reached 95
percent, clearing the year’s goal of 90 percent.

Response to Conflict Minerals†1 Issue
The Dodd-Frank Wall Street Reform and Consumer
Protection Act was signed into law in the UnitedStates in July 2010. One provision under the Act
obliges companies with securities registered in the
U.S. that use in their products any conﬂict minerals
produced in the Democratic Republic of Congo(the “DRC”) and adjoining countries (together the“DRC countries”) to report this to the U.S. Securities
and Exchange Commission (SEC). The aim of theprovision is to cut off revenues from armed groups
that are engaged in violence and other serious
breaches of human rights in the conﬂict-ridden
DRC countries. Pursuant to the Act, the SEC plans to
promulgate regulations requiring that companies
using any conﬂict minerals in their products disclosein their annual reports whether these conﬂict
minerals originated in the DRC countries.
Hitachi is committed to the pursuit ofresponsible procurement practices and has nointention, directly or indirectly, of abetting thehuman rights violations identiﬁed in the DRC

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countries. Accordingly, we are working with Group
companies and suppliers to boost supply chaintransparency and to ensure that the minerals we
procure do not ﬁnance or beneﬁt armed groups
committing human rights violations.
†1 Conflict minerals: “Conflict minerals” are defined under the Dodd-Frank Act
as the following minerals or their derivatives:· Columbite-tantalite, also known as coltan (the metal ore from which tantalum is
extracted);· Cassiterite (the metal ore from which tin is extracted);· Gold;· Wolframite (the metal ore from which tungsten is extracted); and· Any other mineral or its derivatives determined by the U.S. Secretary of State tobe financing conflicts in the DRC countries.

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Diversity Management

Diversity Management
We have a range of initiatives that help us
become a company that develops employees’
abilities or ideas and empowers them torealize their potential. We are committed tocreating an attractive work environment by, forexample, appointing more female managers,
and improving child and nursing care support.

Diversity Development Project
We launched the Diversity & Inclusion Development
Project in ﬁscal 2006 to encourage a good worklife balance. Initiatives within the program include
developing and enhancing support for employees
in balancing work with child care or nursing carefor family members. We also advance women in theworkplace through the strategic development offemale managers and a proactive hiring policy, inline with our goal of ultimately achieving an equal
ratio of males and females in key management
positions.
In addition, we continue to educate and raise
the awareness of employees. We are expanding ourtraining options to include courses on deepening
understanding of diversity management as well as
courses that employ corporate lectures and World
Café-style dialogues.
In May 2010, we received the Corporate Prizein the Best Mother Awards held by the NPO Japan
Mothers Society in recognition of our programs.

Diversity Development Project Structure
President (overall executive in charge)
Advisors: External directors
Advisory Committee:
Executive Vice Presidents, Vice President incharge of personnel, managers in charge of laboradministration in Group companies
Diversity Development Group Council
Secretariat: Diversity Development Center
Members: People in charge of diversity development
within Group or internal companies and offices
In promoting diversity, we hold regular meetings to exchange
opinions with labor unions.

Work-Life Balance-up! MonthAs part of the Diversity Development Project, weare improving employees’ work-life balance. In
November 2010, we held the Work-Life Balance-up!
Month (WLB-up! Month) throughout the company
to increase awareness and understanding of how
we support work-life balance. At the start of themonth, a message from the president was sentout, and a pamphlet was distributed outlining
child care and nursing care support programs
and how to use them. Other steps included
delivering a mail magazine, calls for senryu (satirical
poetry) submissions, and release of the WLB-up!
Declaration.†1 Individual companies and offices
also had their own campaigns geared to their
particular circumstances. Employees reported backthat the campaign was easy to understand, andthat they would like it to keep going. To meet these
expectations, we will continue, as well as improve,these programs.

Award ceremony for the Best Mother Awards

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Diversity Management†1 WLB-up! Declaration: An initiative where all employees outline their own
work and life goals, which are shared in the workplace

Trend in the Number of Employees
Taking Child Care Leave(People)Acquiring “Kurumin” Certification
In February 2011, Hitachi, Ltd. acquired certiﬁcation
under the Act on Advancement of Measures to
Support Raising Next-Generation Children, also
known as “Kurumin” certiﬁcation. This is granted
to companies that create action plans for childcare support in line with the act and meet theperformance requirements.

1,200
1,056

1,080

1,000
800

546

538

510

542

600
459

438
400
200
0

189

2006

2007

Hitachi, Ltd.
Hitachi Group*“Kurumin” Mark

2008

2009

2010
(FY)

*26 Hitachi Group companies in Japan

Breakdown of Male and Female
2006

Ratio of Male and Female Employees in FY 2010
Female16%

Female10%

Hitachi, Ltd.

(People)
2008

2009

Male
90%

*26 Hitachi Group companies in Japan

Female

183

436

451

504
(533*)

525(522*)

Male

6

2

8

6
(13*)

17
(16*)

Total

189

438

459

510
(546*)

542(538*)

Number of Employees Taking Paternity Leave(People)500

Trend in the Number and Ratio of Female Managers(People)
2.5

2.9

3

3.3

1.2

1.3

4

400

981

2
1
0

595

2000

Hitachi, Ltd.
Hitachi Group*

2008

139
143

2007
Hitachi, Ltd.
Hitachi Group*

303
320

2007

121

0

520

73

311

200

100

840

900

276

307

300

3

1,200

600

467

450

(%)

300

2010

Hitachi Group*

Male
84%

0

2007

386

2009

2010
(FY)

Hitachi, Ltd.
Hitachi Group**26 Hitachi Group companies in Japan

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2008

2009

156

2010
(FY)

*26 Hitachi Group companies in Japan

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Diversity Management

TOPICS

Trend in the Number of Employees
Taking Nursing Care Leave

Family Day(People)
40

36
33

30
25
20

20

10

23

18

7
11

0

2006

2007

2008

10

2009

2010
(FY)

Hitachi, Ltd.
Hitachi Group*

Hitachi, Ltd.
Hitachi Group**26 Hitachi Group companies in Japan
Breakdown of Male and Female
2006

2007

(People)
2008

2009

2010

Female

5

10

8

6
(10*)

7
(9*)

Male

2

10

10

5
(15*)

3
(14*)

Total

7

20

18

11
(25*)

10
(23*)

One workplace-speciﬁc event during WLBMonth was a family day; it was also heldat Hitachi, Ltd. headquarters in December
2010.
Employees’ families were invited to theheadquarters office on a holiday to see theplace where their family members work,
to learn about Hitachi’s history and to eat
in the cafeteria. The goal was to deepen
the families’ understanding and empathy
toward employees’ jobs and encourage asense of pride and satisfaction for working
at Hitachi.
On that day in December, 180 people
from 56 families came to the office, getting
an up-close look at workplaces and learning
about our company.

Trend in the Number of Employees
Working Shorter Hours(People)
1,200

1,032
839

900

695
600

551

Employee family members looking around the workplace

383

350
300

288

96
0

2006

2007

Hitachi, Ltd.
Hitachi Group*

2008

2009

337

2010
(FY)

*26 Hitachi Group companies in Japan

Breakdown of Male and Female
2006

2007

(People)
2008

2009

2010

Female

94

349

381

287
(543*)

330(688*)

Male

2

1

2

1
(8*)

7
(7*)

Total

96

350

383

288
(551*)

337(695*)

Main Assessments & Awards
Hitachi, Ltd. has received the following assessments
and awards from the media and relatedorganizations to recognize diversity and otherinitiatives that create more employee friendly
workplaces:· Nihon Keizai Shimbun, 2010 Ranking ofCompanies with the Best Working Conditions: 4thplace· Nikkei Business Publications, Inc., 2011 Rankingof Companies that Encourage Working Women:
12th place

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Diversity Management

European Diversity Project
We believe that workplaces that value diversity
attract the best human resources and that they
excel at innovation and business. Hitachi Group
companies in Europe have undertaken theEuropean Human Rights and Diversity Project
as one way of addressing the priority issue ofhuman rights, promoting equal opportunity andeliminating all forms of discrimination.
According to a survey conducted by HitachiGroup companies in Europe in ﬁscal 2010, the ratioof Group female employees, including managers,
was below the average of other European
companies.
To boost diversity awareness among all
employees at Hitachi Group companies in Europe,

the European Human Rights and Diversity Project
team developed an e-learning program available
in English, French, German and Italian that was
distributed to all Group companies in Europe. The
aim is to educate 80 percent of employees by theend of ﬁscal 2011.
In the coming years, Group companies will track
the goals and ratios for gender in employment andmanagement positions, and Hitachi Europe Ltd. too
is looking at appointing female executives by theend of ﬁscal 2013.
These activities have been welcomed in Europe
and have been presented at the Enterprise 2020
MarketPlace of CSR Europe and other international
conferences.

VOICESInternship Programfor Female Athletes

Lisa Dearborn
Senior Director, Diversity, College
Programs, and Communications
Hitachi Data Systems

Hitachi Data Systems is launching a programin the United States that focuses on recruitingcollege women who are athletes: the Women’sAthletic Intern Program (WAIP). The motivation
for WAIP is simple: to be successful in theirchosen sport while attending top colleges,
athletes must possess a winning combinationof teamwork skills, competitiveness, time
management, and determination. These are

attributes that the company seeks in recruiting
new employees. For the pilot program,
10 women athletes are being selected forinternships from top colleges in the area,
including Stanford and Santa Clara University,and will receive development and mentoring
speciﬁcally tailored for the program.
Hitachi Data Systems is focusing not only on
recruitment of women with winning attributes
but on leadership development. Its Women’s
Leadership Network (WLN) begins its fourthyear in 2011 and has continued to expand its
activities and membership. In addition, thecompany hand selects women managers withhigh potential for participation in the year-long
Women Unlimited leadership programs.

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VOICESGreat Chances for Women

Karin Weintoegl
LawyerHead of Commercial Proposals
Vice President
Hitachi Power Europe GmbHThe main challenge for women at Hitachi
Power is driven by the fact that the plantengineering and construction business istraditionally a male-dominated business.
When I started my career in 2004 at Hitachi
Power Europe GmbH in Germany, we were
only 4 female professionals out of some 300
employees–until today this did not change
fundamentally.

Balancing a Fulfilling
Job and Family

Ms. Hua Ping
Chief Representative/ Shared
Services / Human Resources
Hitachi GST China Operations

As a woman leader, especially an Asian woman,
I think family is in equal importance with career.
How to balance our work and life is usually oneof the biggest challenges women leaders have.
I would say Hitachi GST does a good job
at diversity. There are a number of excellent
women leaders in our company who aremaking important business decisions andwho are involved in the company’s strategicplanning and development. At our China sites,

I am grateful that I not only had thechance to start my career in this male-driven
surrounding but was also promoted to lead acore department in our company—as a woman.
The necessary improvement from a quantitative
view is with the company until today. From
the quality side it is with our society, which isoften not used to women in technology-driven
companies and/or executive positions.
Therefore I would advise all women, whocurrently have to decide where to apply for ajob, not to leave out companies such as Hitachi,
which might not be known as typical “female,”
but which grants great chances–as I might be
the perfect proof for.

nearly half of our management teams are
women. We do not feel any gender barriers
in promotions nor other career advancement
opportunities. Flexible working schedules
and locations in some positions which do not
impact business delivery will further support
women’s career development by providingthem more ﬂexibility in arranging job andfamily issues.
Bearing a positive mindset, maintaining our
professionalism and try as much as we can to
manage self-emotions at all times, especiallywhen handling tough situations, can always
help us mitigate the stress from work andachieve success. Enjoy your work and enjoy
your life as well.

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Diversity Management

VOICES
Diverse Human Resources
Are the Wellspring of
Innovation
Shen Liping
Shanghai Region General Manager
and Director of Advanced
Technology Innovation ResearchLaboratory
Hitachi (China) Research &Development Corporation

In 2004 I returned to China from Japan andjoined Hitachi (China) Research & Development
Corporation as a senior researcher. After
working for two years on launching research
projects and building research teams, I was
promoted to the position of research laboratory
director. Looking back a few years, I think I
was able to advance this far thanks to Hitachi’s
corporate culture of giving opportunities to
employees regardless of gender.

As research laboratory director, I was in aposition to foster young researchers. Basedon my own experience, when I was hiring
researchers or instructing them, I placed priority
on their abilities. I realize that men and womenof course differ in certain respects, but I think
it is more important to understand the uniquecharacteristics of each individual and provide
opportunities for them to realize their fullpotential. In addition, rather than attempting
to foster the same kind of human resources in
the organization, I try to bring together people
with different abilities and diverse personalities
in order to bring innovation into our research.
I will continue to strive to foster the humanresources who will be the future of Hitachi.

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Diversity Management

Employing People with Disabilities
We employ around 3,000 disabled people in a
broad range of areas. To help them adapt to work
environments, we have taken actions geared totheir particular needs. These include installing
magnifying reading devices, computers with speech
recognition, and warning lights for those withhearing impairments.
There are also four special subsidiaries within
the Hitachi Group where 200 or so disabled orchallenged employees perform tasks such ascollecting and distributing internal mail, officecleaning, and clerical work. In ﬁscal 2010, thosein charge of employing disabled people came
together for information exchange meetings,
workshops, visits to special support schools,
and other events. The goal was to deepen theirunderstanding of disabilities. We have alsocollaborated on the employment of disabledworkers with Public Employment Security Offices
by holding a Hitachi Group job fair for disabledjobseekers.
In June 2010, the employment ratio of people
with disabilities was 2.05 percent at Hitachi, Ltd.
and 1.88 percent as a consolidated domestic Group
company. This reached the legally mandated ratioof 1.8 percent. We are committed to creating evenmore employment opportunities.
Employment Ratio of People with Disabilities(People)

(%)
2.5

1,300

2.05

2.11

2.06

2.05

2.01

2.0
1.8*

1,150

1,106

1,091

Model Project for Promoting
the Employment of People with
Mental Disabilities
We have a number of programs that create
attractive environments for people with mental
disabilities. These are part of our two year
commitment, from May 2009, to the Ministry of
Health, Labour and Welfare to undertake a model
project entitled Promoting the Employment ofPeople with Mental Disabilities. Key measures
include creating work geared to the particularkind of disability, promoting understanding in theworkplace, and training “natural supporters” withwhom employees can feel comfortable consulting
on workplace issues. Within the workplace, wehave assigned psychiatric social workers to manage
the health of mentally disabled employees andprovide them with advice. We are also using special
training and group work to ensure healthy workfor people with mental disabilities and how todevelop smooth personal relationships. This project
has led to the employment of new employees withmental disabilities since ﬁscal 2009 and six havejoined the company as of March 2011. Hitachi
has also adopted a ﬂexible work system that has
the new employees gradually building up fromthree four-hour days per week. One employee
commented that Hitachi was the ﬁrst place where
he had been able to continue working for morethan a year, while another was grateful that there
was someone close at hand to provide advice. We
will report on these results to Group companies andother companies to help promote understanding
and recognition of the employment of people withmental disabilities.

1.5
1,000

1,001
933

981

1.0
850
0.5

700
0

2000

2007

2008

2009

2010
(FY)

0

Source: Hitachi, Ltd. (collected in June every year)*Legally mandated employment ratio

Supporter training

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Global Human Capital Development

Global Human Capital Development
Because we believe that maximizing employee
potential is vital for creating new value, we
work hard to improve employees’ abilities andto develop their careers. Given the accelerating
pace of globalization, we urgently need todevelop leaders capable of competing in the
global arena. We are pushing ahead with arange of initiatives to enhance and expand our
global business.

Aligning Hiring with Global BusinessTo globalize more effectively, we have identiﬁedeight key qualities for global human resources.
These include the ability to see from the otherparty’s perspective and the ability to communicate
clearly. These key qualities are being used in
the selection of new employees from the 2012
graduate pool. We approach hiring with the goalof having all new graduates move into global
business at sometime in the future. This includes
new graduates hired in Japan for office jobs and50 percent of those hired for engineering jobs. We
also intend to have foreign students make up 10
percent of our new graduate intake. In addition,
we led the way for other companies with the2001 introduction of a job-matching scheme for
Trend in the Number of Non-Japanese Employees(People)
300

218

230

200

200

179
151

hiring engineers. By matching the positions thatapplicants want with where we need staff, we are
increasing both the satisfaction of new hires andthe quality of our human resources.
For hiring outside Japan, we are prioritizing
regions and jobs with an eye on establishingcommon Hitachi Group hiring practices, incooperation with head offices in each region.

Global Education for Young
Employees
We are considering several ways of strategicallysecuring and training people who will thrive in
the global business arena. For young employees
in particular, we have created programs that
include practical training outside Japan, ﬁeldwork,and overseas language study. By giving these
employees the opportunity to experience life inother countries, we will equip them to handle
the challenges of globalization. We are currently
developing programs to send young employees
outside Japan from ﬁscal 2011 so that they canacquire not just language skills but experience
working with a variety of people. Along with thebusiness experience they will receive, they willgrow to understand local cultures and lifestyles
ﬁrsthand. We plan to send 2,000 employees outside
Japan through these programs by the end of ﬁscal
2012. We consider speaking English an essential
skill for global business, so we will strengthen
English language training for future leaders, with aparticular emphasis on global business.
To deepen overseas employees’ understandingof Hitachi and of Japan, we are also systematicallyincreasing opportunities for high-potential
employees to work in Japan.

100

Global Manager Training
0

2006

2007

2008

2009

2010
(FY)
Note: Number of non-Japanese staff within Hitachi, Ltd.

With our operations taking on an increasingly
global focus, it is necessary that all managers
working on the global frontlines to understandour history, founding spirit, company operations,

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Global Human Capital Development

common values, corporate philosophy, and basic
management skills. To instill this understanding,we provide a four-day course called Global
Fundamental Course—Ready to Inspire, which
offers the same training to all Hitachi managers
around the world.
Since ﬁscal 2006, when it was launched, thiscourse has been taken by approximately 1,369
managers. We plan to continue to offer this course
from ﬁscal 2011 on, while broadening the regions
and personnel covered, as well as improving thetraining methods.

HITACHI BASIS
We have speciﬁed the HITACHI BASIS as a common
basic education platform for sharing our Corporate
Credo, work approach, and way of thinking with
all Hitachi Group companies worldwide. On thatfoundation, we operate a two-tiered employee
education system that uses human resource
development tailored to the needs of individual
business ﬁelds and regions.
As of ﬁscal 2010, we have begun evaluating
the effectiveness of education in the main Group
companies. As part of the HITACHI BASIS initiative,
we also took the opportunity of Hitachi’s centennial
to develop Discover Hitachi, a program targetingGroup employees worldwide that reaffirms ourhistory, Hitachi Founding Spirit, management
policies and business operations.

Participants in the Global Fundamental Course

Training Future Managers
To compete with the world’s top companies in theyears ahead, Hitachi Group managers will have tocreate their own business models as well as develop
and manage the methods to achieve them. We
intend to offer intensive business training courses
to help them reach their goals. Business training
for managers within Japan has been completely
revamped, and we plan to have around 4,000
staff take the new training courses. In addition to
training managers for a global leadership style—identifying a vision, motivating, and providing
clear feedback—senior management candidates
in particular will learn strategic business planningand leadership over a six-month period throughweeklong sessions taught in English with ﬁeldwork
outside Japan. We also provide opportunities
for discussions between talented non-Japaneseemployees and executives at Hitachi headquarters,
and they are given training in Japan to help
them build networks and groom them for senior
management positions.

HITACHI BASIS portal Web site

Training System
We have supplemented in-house education—basedon on-the-job training—with an extensive training
system consisting of a number of educational
programs: Management Development, Education
for Engineers, Production Worker Training,
Education for Globalization, Sales Education, andTraining by Job Function. These programs areoffered across the Hitachi Group by the Hitachi
Institute of Technology, the Hitachi Institute of
MONOZUKURI Skills and Engineering, and the
Hitachi Institute of Management Development ascommon Group educational courses. During ﬁscal
2010, 22,666 Hitachi Group employees took thesetraining courses.
Other kinds of training are provided by different
companies and offices.

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Employee Health and Safety

Employee Health and Safety
The health and safety of employees is ourhighest priority. Based on the Hitachi Group
Health and Safety Policy, we work hard toensure that employees are healthy and safeby constantly improving conditions for them.
The English version of the Hitachi Group Healthand Safety Policy is scheduled to be publishedwithin fiscal 2011.

Health and Safety Programs
Based on the policies developed by top
management, we ensure that basic activities suchas regular workplace inspections and 5S†1 activities
are conducted in line with our labor, healthand safety management system. We also work
continually to prevent accidents and to reduce therisk of accidents through risk assessments and otherhazard prediction and preventive systems.
The Hitachi Group Health and Safety ResearchPresentation Meeting is held every December
to ﬁnd ways to improve the level of health andsafety throughout the Group. In ﬁscal 2010, the54th meeting attracted 250 participants from70 companies, and featured ﬁve case study
presentations as well as special lectures by outside
experts. Reports on best practices and newmeasures learned from serious mishaps in thepast were followed by vigorous discussions that
stimulated health and safety activities across theGroup as a whole.
At the same time, health and safety levels
within the Group are far from perfect, with serious
accidents continuing to occur. We are committed
to working, Group-wide, to improve the level ofhealth and safety still further and to achieve zero
workplace accidents.

Hitachi Group Health and Safety Research Presentation Meeting

Trends in Occupational Accident Rates
2.00

1.90

1.75
1.62

1.50
1.25
1.02

1.09

1.12
0.99

1.00
0.75
0.50
0.25
0

0.37

0.39

0.25

0.26
0.05

0.12
2006

Hitachi Group Sustainability Report 2011

2007

0.48

0.46

0.22

0.25

0.23

0.06

0.07

2009

2010
(FY)

0.12
2008

All industries
Manufacturing industries
Electrical machinery sector
Hitachi Group
Hitachi, Ltd.

Notes:
1. 2010 figures are not available, except for Hitachi, Ltd. and the
Hitachi Group
2. 90 Hitachi Group companies in Japan†1 5S activities: The five principles for maintaining and improving workplaceenvironments are seiri (sorting), seiton (setting in order), seiso (systematiccleaning), seiketsu (standardizing) and shitsuke (self-discipline).

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

1.83

1.75

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Employee Health and Safety

Mental Health Care
Ensuring physical and mental health is anotherkey priority. To enable every employee to work ina healthy environment, we consult with healthinsurance associations and other groups tomaintain high levels of employee health.
In recent years, the number of employees taking
leave from work because of mental health issues
has increased. For our ﬁrst line of prevention, we
have been cutting back on long working hours
and providing education programs designed tostrengthen resistance to stress and to improve

TOPICS

communication skills. Second-line programs
include early identiﬁcation and treatment through
EAP,†1 as well as counseling from industrial healthprofessionals. For the third line, we created a
program for employees returning to work basedon our workplace return support guidelines, andwe have adopted a system that allows employees
to gradually come back to work. We are also
considering Life Microscopes, wristband devices
that monitor daily activities.
†1 EAP (Employee Assistance Program): provides employees withpsychological, physical, and social support

Basic Attitudes to HIV/AIDS

Application of Wristband Activity Monitoring Devices
Hitachi has developed a wristband activity
monitoring device called Life Microscope.
This small, light, battery-operated device
is attached to the wrist and records thewearer’s movements as well as pulse, bodytemperature, and other information. As thisdevice can capture detailed, objective data,such as levels of activity and sleep periods,
we may use it to support the return to workof people who took leave for mental healthissues. Worn when someone is preparing
to return to the workplace, and then for aperiod after their return, the information
obtained can be used as reference datafor consultations with industrial doctors,
for example. This device is proving to beeffective as a tool to support the return towork. We will increase the number of trial
subjects before full-scale practical use.

Since 1995, Hitachi, Ltd. has promoted anunderstanding within the Hitachi Group of HIV/AIDS based on the following three points:

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

Life Microscope

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133Comparative Table with GRI Guidelines
In formulating the Hitachi Group Sustainability Report 2011, weused the GRI Application Levels indicating compliance with GRI
Sustainability Reporting Guidelines. This provides an objective measureof the extent to which version 3.1 of the guidelines (G3.1) and other
GRI Reporting Framework elements have been applied. We evaluatedthis year’s report as achieving Application Level B+ by self-assessment.
A comparative table with GRI Guideline indexes is included below.

OUTPUTOUTPUT

Standard Disclosures

Performance
Indicators &Sector Supplement
Performance Indicators

B+

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

Report fully on a minimum of 10
Performance Indicators, including
at least one from each of: social,economic, and environment.*1

Management Approach
Disclosuresfor each Indicator Category

A

A+

Same as requirement for Level B

Report on a minimum of 20
Performance Indicators, at least
one from each of: economic,
environment, human rights, labor,society, product responsibility.*2

Management Approach disclosed
for each Indicator Category

Report Externally Assured

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

Not RequiredManagement
Approach
Disclosures

C+

Report Externally Assured

OUTPUT

ProﬁleDisclosures

C

Report Externally Assured

ReportApplication Level

Respond on each core G3 andSector Supplement*3 indicatorwith due regard to the materiality
Principle
by either: a) reporting on theindicator or b) explaining thereason for its omission.

*1 Performance Indicators may be selected from any ﬁnalized Sector Supplement, but 7 of the 10 must be from the original GRI Guidelines*2 Performance Indicators may be selected from any ﬁnalized Sector Supplement, but 14 of the 20 must be from the original GRI Guidelines*3 Sector supplement in ﬁnal version

Item

Index

Items Disclosed

Related Pages in This Report
and Other References

1. Strategy and Analysis
1.1

1.2

Statement from the most senior decision-maker of the organization (e.g.,CEO, chair, or equivalent senior position) about the relevance of sustainability
to the organization and its strategy

Top Commitment

pp. 007–008

Message from the Chief Environmental Strategy
Officerp. 050Description of key impacts, risks, and opportunities

Hitachi Management Strategies and CSR

pp. 015–018

FY 2010 Results and FY 2011 Plans

pp. 032–033

Corporate Environmental Management Strategies
and Initiatives

pp. 051–062

Hitachi Group Second Environmental Action Plan:
Targets and Results
Third Environmental Action Plan

pp. 057–058

2. Organizational Profile
2.1

Name of the organization

Hitachi Group Proﬁlepp. 005–006

2.2

Primary brands, products, and/or services

Hitachi Group Proﬁlepp. 005–006

2.3

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

Form 20-F ﬁled with the U.S. SEC

Hitachi, Ltd. Web site

2.4

Location of organization’s headquarters

Hitachi Group Proﬁlepp. 005–006

2.5

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

Hitachi Group Proﬁlepp. 005–006

2.6

Nature of ownership and legal form

Form 20-F ﬁled with the U.S. SEC

Hitachi, Ltd. Web site

2.7

Markets served (including geographic breakdown, sectors served, and typesof customers/beneﬁciaries)

Form 20-F ﬁled with the U.S. SEC

Hitachi, Ltd. Web site

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134

2.8

2.9

2.10

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

Hitachi Group Proﬁlepp. 005–006∙ Number of operations

Hitachi Group Proﬁlepp. 005–006∙ Net sales (for private sector organizations) or net revenues (for public sector
organizations)

Form 20-F ﬁled with the U.S. SEC

Hitachi, Ltd. Web site

∙ Total capitalization broken down in terms of debt and equity (for private
sector organizations)

Form 20-F ﬁled with the U.S. SEC

Hitachi, Ltd. Web site

∙ Quantity of products or services provided

Form 20-F ﬁled with the U.S. SEC

Hitachi, Ltd. Web site

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

Form 20-F ﬁled with the U.S. SEC

Hitachi, Ltd. Web site

∙ Changes in the share capital structure and other capital formation,
maintenance, and alteration operations (for private sector organizations)

Form 20-F ﬁled with the U.S. SEC

Hitachi, Ltd. Web siteAwards received in the reporting period

Results of External SRI Assessments in Fiscal 2010

p. 103External Environment Awards

Hitachi, Ltd. Web site
Hitachi Group Environment
Activity

Sustainability Report Editorial Policy

p. 003

3. Report Parameters
Report Proﬁle3.1

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

3.2

Date of most recent previous report (if any)

Sustainability Report Editorial Policy

p. 003

3.3

Reporting cycle (annual, biennial, etc)

Sustainability Report Editorial Policy

p. 003

3.4

Contact point for questions regarding the report or its contents

Contact information

p. 149∙ Determining materiality∙ Prioritizing topics within the report∙ Identifying stakeholders the organization expects to use the report

Material Issues for Hitachip. 019Results of External SRI Assessments in Fiscal 2010

p. 103

3.6

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

Sustainability Report Editorial Policy

pp. 003–004

3.7

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

Sustainability Report Editorial Policy

pp. 003–004

3.8

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

Hitachi Group Proﬁlepp. 005–006

3.9

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

Bases of calculations are described if necessary—

Environmental Load Information Collection
Methods

Hitachi, Ltd. Web site:
Environmental Activities

3.10

Explanation of the effect of any re-statements of information provided
in earlier reports, and the reasons for such re-statement (e.g., mergers/
acquisitions, change of base years/periods, nature of business, measurement
methods)

Explanation is given if necessary to complement
data descriptions

3.11

Signiﬁcant changes from previous reporting periods in the scope, boundary,or measurement methods applied in the report

None

—

3.12

Table identifying the location of the Standard Disclosures in the reportComparative Table with GRI Guidelines

pp. 134–143

Policy and current practice with regard to seeking external assurance
for the report. If not included in the assurance report accompanying thesustainability report, explain the scope and basis of any external assurance
provided. Also explain the relationship between the reporting organizationand the assurance provider(s)Independent Review

p. 090

Report Scope and Boundary
3.5

Process for deﬁning report content, including:

Assurance
3.13

4. Governance, Commitments, and Engagement
Governance
4.1

Governance structure of the organization, including committees under thehighest governance body responsible for speciﬁc tasks, such as setting
strategy or organizational oversightStrengthening Governancep. 028

4.2

Indicate whether the Chair of the highest governance body is also an
executive officer (and, if so, their function within the organization’s
management and the reasons for this arrangement)

Strengthening Governancep. 0284.3

For organizations that have a unitary board structure, state the number andgender of members of the highest governance body that are independent
and/or non-executive members

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4.4

Mechanisms for shareholders and employees to provide recommendations ordirection to the highest governance bodyCompliance Reporting System

p. 037

Communication with Shareholders and Investors

pp. 101–103

4.5

Linkage between compensation for members of the highest governancebody, senior managers, and executives (including departure arrangements),
and the organization’s performance (including social and environmental
performance)

Strengthening Governancep. 0284.6

Processes in place for the highest governance body to ensure conﬂicts ofinterest are avoided.

Strengthening Governancep. 028Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 036

4.7

Process for determining the composition, qualiﬁcations, and expertise of themembers of the highest governance body and its committees, including any
consideration of gender and other indicators of diversity.

Strengthening Governancep. 0284.8Internally developed statements of mission or values, codes of conduct, andprinciples relevant to economic, environmental, and social performance andthe status of their implementation

Hitachi Management Strategies and CSR

pp. 015–018

FY 2010 Results and FY 2011 Plans

pp. 032–033

Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 036

Corporate Environmental Management Strategies
and Initiatives

pp. 051–062

Hitachi Group Second Environmental Action Plan:
Targets and Results

p. 057

4.9

4.10

Procedures of the highest governance body for overseeing the organization’s
identiﬁcation and management of economic, environmental, and social
performance, including relevant risks and opportunities, and adherence orcompliance with internationally agreed standards, codes of conduct, andprinciples

Processes for evaluating the highest governance body’s own performance,
particularly with respect to economic, environmental, and social performance

Initiatives That We Participate in

p. 004

Hitachi Management Strategies and CSR

pp. 015–018

Strengthening Governance; Internal Control

pp. 028–029

Supply Chain Management

pp. 119–122

Respect for Human Rights

pp. 116–118

Corporate Environmental Management Strategies
and Initiatives

pp. 051–062

Strengthening Governancep. 028

Reinforcing the Risk Management System

p. 034

Business Continuity Plans (BCPs)

pp. 034–035

Managing Environmental Risk

p. 079Initiatives That We Participate in

p. 004

Participating in the Development of International
Standards

p. 070Commitments to External Initiatives
4.11

4.12

4.13

Explanation of whether and how the precautionary approach or principle isaddressed by the organization

Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes orendorses

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization:∙ Has positions in governance bodies

None

—

∙ Participates in projects or committees

Strengthening International Standardization

p. 045

Participating in the Development of International
Standards

p. 070∙ Provides substantive funding beyond routine membership dues

None

—

∙ Views membership as strategic

None

—

Stakeholder Engagement
4.14

List of stakeholder groups engaged by the organization

None

—

4.15

Basis for identiﬁcation and selection of stakeholders with whom to engage

None

—

4.16

Approaches to stakeholder engagement, including frequency of engagementby type and by stakeholder group

Preventing the Recurrence of Misleading
Representations

p. 038Environmental Communication

pp. 087–089

Public Policy Initiatives

pp. 099–100

Voices: Acting with a Sense of Global
Responsibility

pp. 117–118

Material Issues for Hitachip. 018

4.17

Key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key topics
and concerns, including through its reporting

Hitachi Group Sustainability Report 2011
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136

5. Management Approach and Performance Indicators
Item

Performance Index: Core (C) / Add (A)Economic
Disclosure on Management Approach
Economic Performance

Financial Results for the First Quarter of the Year
Ended March 31, 2011

Hitachi, Ltd. Web site

Market Presence

Form 20-F ﬁled with the U.S. SEC

Hitachi, Ltd. Web site

Indirect Economic Impacts

FY 2009 Breakdown of Funding for Social
Contribution Activities

p. 104

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080Goals and Performance

Financial Results for the First Quarter of the Year
Ended March 31, 2011

Hitachi, Ltd. Web site

Policy2012 Mid-Term Management Plan

pp. 015–016

Additional Contextual Information

Hitachi Group Sustainability Report 2011

Economic Performance Indicators
C
EC1

Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and other community
investments, retained earnings, and payments to capital providers andgovernments

Hitachi Group Proﬁlepp. 005–006

FY 2009 Breakdown of Funding for Social
Contribution Activities

p. 104

Environmental Accounting

pp. 086–087

CEC2

Financial implications and other risks and opportunities for the organization’s
activities due to climate change

Corporate Environmental Management strategies
and Initiatives

pp. 051–062

CEC3

Coverage of the organization’s deﬁned beneﬁt plan obligations

None

—

C
EC4

Signiﬁcant ﬁnancial assistance received from government

None

—

Market PresenceA
EC5

Range of ratios of standard entry level wage by gender compared to local
minimum wage at signiﬁcant locations of operation

None

—

C
EC6

Policy, practices, and proportion of spending on locally-based suppliers at
signiﬁcant locations of operation

Sharing Procurement Policies

pp. 119–120

Building Partnerships

p. 120Sharing CSR Awarenessp. 120

Green Procurement

pp. 120–121

Response to Conﬂict Minerals Issue

pp. 121–122

None

—

C
EC7

Procedures for local hiring and proportion of senior management hired fromthe local community at locations of signiﬁcant operation

Indirect Economic Impacts
C
EC8Development and impact of infrastructure investments and services provided
primarily for public beneﬁt through commercial, in-kind, or pro bono
engagement

Social Contribution Activities

pp. 104–115

A
EC9

Understanding and describing signiﬁcant indirect economic impacts,
including the extent of impacts

Environmental Accounting

pp. 086–087

Hitachi Group Sustainability Report 2011
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137

Environmental
Disclosure on Management Approach
Materials

Environmentally Conscious Products and Services

pp. 063–070

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080

Environmentally Conscious Products and Services

pp. 063–070

Reducing Greenhouse Gas Emissions

pp. 072–075

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080

Water Conservation

p. 077–078

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080

Biodiversity

Activities to Preserve Ecosystems

pp. 060–062

Emissions, Effluents, and Waste

Reducing Waste

pp. 075–077

EnergyWater

Water Conservation

pp. 077–078

Chemical Substance Management

pp. 078–079

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080

Products and Services

Environmentally Conscious Products and Services

pp. 063–070

ComplianceManaging Environmental Risk

p. 079Transport

Reducing Transportation Energy

p. 074Overall

Environmental Management Framework

pp. 081–084

Goal and Performance

Hitachi Group Second Environmental Action Plan:
Targets and Results
Third Environmental Action Plan

pp. 057–058

PolicyHitachi Action Guidelines for Environmental
Conservation

p. 059Organizational Responsibility

Environmental Management Framework

pp. 081–084

Training and Awareness

Environmental Education

p. 085

Monitoring and Follow-up

Building Environmental Management Systems

p. 082

Additional Contextual Information

Hitachi Group Sustainability Report 2011

C
EN1

Materials used by weight or volume

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080C
EN2

Percentage of materials used that are recycled input materials

None

—

C
EN3

Direct energy consumption by primary energy source

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080C
EN4Indirect energy consumption by primary source

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080A
EN5Energy saved due to conservation and efficiency improvements

Reducing Greenhouse Gas Emissions

pp. 072–075

A
EN6

Initiatives to provide energy-efficient or renewable energy based products
and services, and reductions in energy requirements as a result of these
initiatives

Environmental Accounting

pp. 086–087

Environmentally Conscious Products and Services

pp. 063–070

A
EN7

Initiatives to reduce indirect energy consumption and reductions achieved

The Hitachi Environmental Vision; Long-Term Plan
Environmental Vision 2025

pp. 051–053

CEN8

Total water withdrawal by source

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080

Water Conservation

pp. 077–078

A
EN9

Water sources signiﬁcantly affected by withdrawal of water

None

—

A
EN10

Percentage and total volume of water recycled and reused

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080

Water Conservation

pp. 077–078

Materials

EnergyWater

Hitachi Group Sustainability Report 2011
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138

Biodiversity
C
EN11

Location and size of land owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outside protected areas

None

—

C
EN12

Description of signiﬁcant impacts of activities, products, and services on
biodiversity in protected areas and areas of high biodiversity value outside
protected areas

Activities to Preserve Ecosystems

pp. 060–062

Social Contribution Activities: The Environment

pp. 108–109

A
EN13

Habitats protected or restored

None

—

A
EN14

Strategies, current actions, and future plans for managing impacts on
biodiversity

Activities to Preserve Ecosystems

pp. 060–062

A
EN15

Number of IUCN Red List species and national conservation list species with
habitats in areas affected by operations, by level of extinction risk

None

–

Emissions, Effluents, and Waste
C
EN16

Total direct and indirect greenhouse gas emissions by weight

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080

Reducing Greenhouse Gas Emissions

pp. 072–075

C
EN17

Other relevant indirect greenhouse gas emissions by weight

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080

Reducing Greenhouse Gas Emissions

pp. 072–075

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080

Reducing Greenhouse Gas Emissions

pp. 072–075

C
EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved

C
EN19

Emissions of ozone-depleting substances by weight

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080C
EN20

NO, SO, and other signiﬁcant air emissions by type and weight

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080Chemical Substance Management

pp. 078–079

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080

Water Conservation

pp. 077–078

Environmental Load Data Generated throughBusiness Operations (FY 2010)

p. 080

Reducing Waste

pp. 075–077

C
EN21

C
EN22

Total water discharge by quality and destination

Total weight of waste by type and disposal method

C
EN23

Total number and volume of signiﬁcant spills

Managing Environmental Risk

p. 079A
EN24

Weight of transported, imported, exported, or treated waste deemedhazardous under the terms of the Basel Convention Annex I, II, III, and VIII,
and percentage of transported waste shipped internationally

None

—

A
EN25

Identity, size, protected status, and biodiversity value of water bodies
and related habitats signiﬁcantly affected by the reporting organization’sdischarges of water and runoff

None

—

Products and Services
C
EN26

Initiatives to mitigate environmental impacts of products and services, andextent of impact mitigation

Increasing the Ratio of Eco-Products

pp. 063–067

C
EN27

Percentage of products sold and their packaging materials that are reclaimed
by category

Product and Package Recycling

Hitachi, Ltd. Web site

Monetary value of signiﬁcant ﬁnes and total number of non-monetary
sanctions for non-compliance with environmental laws and regulations

Managing Environmental Risk

p. 079Signiﬁcant environmental impacts of transporting products and other goods
and materials used for the organization’s operations, and transporting
members of the workforce

Reducing Transportation Energy

p. 074

Total environmental protection expenditures and investments by typeEnvironmental Accounting

pp. 086–087

ComplianceC
EN28
Transport
A
EN29
OverallA
EN30

Hitachi Group Sustainability Report 2011
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139

Labor Practices and Decent Work
Disclosure on Management Approach
Employment

Aligning Hiring with Global Businessp. 130Labor/Management Relations

Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 036

Occupational Health and Safety

Employee Health and Safety

pp. 132–133

Training and Education

Diversity Development Projectp. 123

Diversity and Equal Opportunities

Diversity Management

pp. 123–129

Equal Remuneration for Women and Men

None

—

Goals and Performance

Major Results Data

pp. 147–148

PolicyCSR Policy of the Hitachi Group

p. 017

Organizational Responsibility

Diversity Development Projectp. 123Training and Awareness

Diversity Development Projectp. 123

Monitoring and Follow-up

Diversity Development Projectp. 123

Additional Contextual Information

Hitachi Group Sustainability Report 2011

C
LA1

Total workforce by employment type, employment contract, and region,broken down by gender

Hitachi Group Proﬁlepp. 005–006

CLA2

Total number and rate of new employee hires and employee turnover by age
group, gender, and region

None

—

A
LA3

Beneﬁts provided to full-time employees that are not provided to temporary
or part-time employees, by signiﬁcant locations of operations

None

—

C
LA15

Return to work and retention rates after parental leave, by gender

Employment

Labor/Management Relations
C
LA4

Percentage of employees covered by collective bargaining agreements

None

—

C
LA5

Minimum notice period(s) regarding operational changes, including whether
it is speciﬁed in collective agreements

None

—

Occupational Health and Safety
A
LA6

Percentage of total workforce represented in formal joint management–
worker health and safety committees that help monitor and advise on
occupational health and safety programs

None

C
LA7

Rates of injury, occupational diseases, lost days, and absenteeism, and total
number of work-related fatalities, by region and by gender

Trends in the Occupational Accident Rates

p. 132C
LA8

Education, training, counseling, prevention, and risk-control programs inplace to assist workforce members, their families, or community members
regarding serious diseases

Model Project for Promoting the Employment ofPeople with
Mental Disabilities

p. 129Business Continuity Plans (BCPs)

pp. 034-035

Mental Health Carep. 133A
LA9Health and safety topics covered in formal agreements with trade unions

None

Training and Education
C
LA10

Average hours of training per year per employee by gender, and by
employee category

None

—

A
LA11

Programs for skills management and lifelong learning that support thecontinued employability of employees and assist them in managing career
endings

Global Human Capital Development

pp. 130-131

A
LA12Percentage of employees receiving regular performance and careerdevelopment reviews, by gender

None

—

Diversity Management

pp.123–129

Aligning Hiring with Global Businessp. 130

Diversity and Equal Opportunity
C
LA13

Composition of governance bodies and breakdown of employees per
employee category according to gender, age group, minority groupmembership, and other indicators of diversity

Hitachi Group Sustainability Report 2011
http://www.hitachi.com/csr/140

Equal Remuneration for Women and Men
C
LA14

Ratio of basic salary and remuneration of women to men by employee
category, by signiﬁcant locations of operation

None

—

Guidelines for Procurement Activities

pp. 119–120

Hitachi Group Supply-Chain CSR Deployment
Guidebookp. 120

Hitachi Group Codes of Conduct: Chapter 1.3
Procurement Activities

p. 036

Non-Discrimination

Hitachi Group Codes of Conduct: Chapter 4.2
Eliminating Discrimination

p. 036

Freedom of Association and Collective Bargaining

Hitachi Group Codes of Conduct: Chapter 4.4
Respect of Basic Rights at Workp. 036

Child Labor

Hitachi Group Codes of Conduct: Chapter 4.4
Respect of Basic Rights at Workp. 036

Prevention of Forced and Compulsory Labor

Hitachi Group Codes of Conduct: Chapter 4.4
Respect of Basic Rights at Workp. 036

Security Practices

Hitachi Group Codes of Conduct: Chapter 4.4
Respect of Basic Rights at Workp. 036

Indigenous Rights

Hitachi Group Codes of Conduct: Chapter 4.4
Respect of Basic Rights at Workp. 036

Assessment

Reinforcing the Risk Management System

p. 034

Remediation

Reinforcing the Risk Management System

p. 034

Goals and Performance

FY 2010 Results and FY 2011 Plans: 4. Corporate
Ethics and Human Rights

p. 032

PolicyHitachi Group Codes of Conduct: Chapter 4
Respect of Human Rights

p. 036

Organizational Risk Assessment

Reinforcing the Risk Management System

p. 034

Impact Assessment

Reinforcing the Risk Management System

p. 034

Organizational Responsibility

Framework for Promoting Respect for Human
Rightsp. 116

Training and AwarenessRaising Awareness of Human Rights; Applying
Human Rights Worldwide

p. 117

Monitoring, Follow-up and Remediation

Applying Human Rights Worldwide

p. 117

Additional Contextual Information

Hitachi Group Sustainability Report 2011

Human Rights
Disclosure on Management Approach
Investment and Procurement Practices

Investment and Procurement Practices
C
HR1

Percentage and total number of signiﬁcant investment agreements andcontracts that include clauses incorporating human rights concerns, or thathave undergone human rights screening

None

—

C
HR2

Percentage of signiﬁcant suppliers, contractors, and other business partners
that have undergone human rights screening, and actions taken

Sharing Procurement Policies; Sharing CSR
Awareness

pp. 119–120

CHR3

Total hours of employee training on policies and procedures concerning
aspects of human rights that are relevant to operations, including thepercentage of employees trained

Raising Awareness of Human Rights; Applying
Human Rights Worldwide

p. 117

None—

Operations and signiﬁcant suppliers identiﬁed in which the right to exercise
freedom of association and collective bargaining may be violated or atsigniﬁcant risk, and actions taken to support these rights

None

—

Operations and signiﬁcant suppliers identiﬁed as having signiﬁcant risk forincidents of child labor, and measures taken to contribute to the effective
abolition of child labor

Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 036

Non-Discrimination
C
HR4

Total number of incidents of discrimination and corrective actions taken

Freedom of Association and Collective BargainingC
HR5Child LaborC
HR6

Hitachi Group Sustainability Report 2011
http://www.hitachi.com/csr/

141Forced and Compulsory LaborC
HR7Operations and signiﬁcant suppliers identiﬁed as having signiﬁcant risk forincidents of forced or compulsory labor, and measures to contribute to theelimination of all forms of forced or compulsory labor

Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 036

Raising Awareness of Human Rights

p. 117

Total number of incidents of violations involving rights of indigenous people
and actions taken

None

—

Percentage and total number of operations that have been subject to humanrights reviews and/or impact assessments

None

—

Number of grievances related to human rights ﬁled, addressed and resolved
through formal grievance mechanisms

None

—

Local Communities

Philosophy and Policy
Hitachi Group Codes of Conduct: Chapter
3.2 Contribution to Local Communities; 3.6
Observance of Laws and Regulations and Respectof the Culture and Customs of Each Nation andRegionp. 104p. 036

Corruption

Preventing Corruption

p. 037

Public Policy

Public Policy Initiatives

pp. 099–100

Anti-Competitive Behavior

Hitachi Group Codes of Conduct, Chapter 1.2
Sales Activities

p. 036

Compliance

Formulating and Ensuring Awareness of the
Hitachi Group Codes of Conduct

p. 036

Goals and Performance

FY 2010 Results and FY 2011 Plans: 4. Corporate
Ethics and Human Rights

p. 032

Security Practices
A
HR8

Percentage of security personnel trained in the organization’s policies
or procedures concerning aspects of human rights that are relevant tooperations

Indigenous Rights
A
HR9
Assessment
C
HR10
RemediationC
HR11
Society
Disclosure on Management Approach

PolicyCSR Policy of the Hitachi Group

p. 017

Organizational Responsibility

CSR Management Structurep. 030Training and AwarenessImplementing Corporate Ethics Monthpp. 036–037

Additional Contextual Information

Hitachi Group Sustainability Report 2011

Local Communities
C
SO1

Percentage of operations with implemented
local community engagement, impact
assessments, and development programs

Philosophy and Policyp. 104C
SO9Operations with signiﬁcant potential or actual
negative impacts on local communities

Managing Environmental Risk

p. 079C
SO10Prevention and mitigation measures
implemented in operations with signiﬁcantpotential or actual negative impacts on local
communities

Environmentally Conscious Production

pp. 071–080

C
SO2

Percentage and total number of business units analyzed for risks related tocorruption

Reinforcing the Risk Management System

p. 034C
SO3Percentage of employees trained in organization’s anti-corruption policies
and procedures

Preventing Corruption

p. 037C
SO4Actions taken in response to incidents of corruption

Preventing the Recurrence of Misleading
Representations

p. 038Public policy positions and participation in public policy development andlobbying

Public Policy Initiatives

pp. 099–100

Corruption

Public Policy
C
SO5

Hitachi Group Sustainability Report 2011
http://www.hitachi.com/csr/

142

A
SO6

Total value of ﬁnancial and in-kind contributions to political parties,
politicians, and related institutions by country——

Total number of legal actions for anti-competitive behavior, anti-trust, andmonopoly practices and their outcomes

None

—

Monetary value of signiﬁcant ﬁnes and total number of non-monetary
sanctions for non-compliance with laws and regulations

Preventing the Recurrence of Misleading
Representations

p. 038Customer Health and Safety

Quality Assurance and Customer Satisfaction

pp. 093–098

Product and Service Labeling

Increasing the Ratio of Eco-Products

pp. 063–067

Marketing Communications

Customer Satisfaction

pp. 094–096

Customer Privacy

Protecting Personal Information and Information
Security Initiative

pp. 038–039

Compliance

Compliance

pp. 036–040

Goals and Performance

FY 2010 Results and FY 2011 Plans: 2.
Contribution to Society through Our Businessp. 032

PolicyCustomer Satisfaction Management Guidelines

p. 095

Organizational Responsibility

Customer Satisfaction

pp. 094–096

Training and Awareness

Customer Satisfaction

pp. 094–096

Monitoring and Follow-up

Customer Satisfaction

pp. 094–096

Additional Contextual Information

Hitachi Group Sustainability Report 2011

Anti-Competitive Behavior
C
SO7
ComplianceC
SO8

Product Responsibility
Disclosure on Management Approach

Customer Health and Safety
C
PR1

Life cycle stages in which health and safety impacts of products and services
are assessed for improvement, and percentage of signiﬁcant products andservices categories subject to such procedures

Quality Assurance Activities

p. 093A
PR2

Total number of incidents of non-compliance with regulations and voluntary
codes concerning health and safety impacts of products and services during
their life cycle, by type of outcomes

Handling Product Accidents

p. 094

Product and Service LabelingC
PR3

Type of product and service information required by procedures, andpercentage of signiﬁcant products and services subject to such information
requirements

Increasing the Ratio of Eco-Products

pp. 063–067

A
PR4

Total number of incidents of non-compliance with regulations and voluntary
codes concerning product and service information and labeling, by type ofoutcomes

Preventing the Recurrence of Misleading
Representations

p. 038A
PR5Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction

Customer Satisfaction

pp. 094–096

Marketing Communications
C
PR6

Programs for adherence to laws, standards, and voluntary codes related
to marketing communications, including advertising, promotion, andsponsorship

Hitachi Group Codes of Conduct: Chapter 1.2
Sales Activities

p. 036A
PR7Total number of incidents of non-compliance with regulations and voluntary
codes concerning marketing communications, including advertising,promotion, and sponsorship by type of outcomes

Preventing the Recurrence of Misleading
Representations

p. 038

Total number of substantiated complaints regarding breaches of customer
privacy and losses of customer data

None

—

Monetary value of signiﬁcant ﬁnes for non-compliance with laws andregulations concerning the provision and use of products and services

None

—

Customer PrivacyA
PR8
ComplianceC
PR9

Hitachi Group Sustainability Report 2011
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143Comparative Table with ISO 26000 Core Subjects
Hitachi’s engagements are shown together with the corresponding seven core
subjects of ISO 26000 (Guidance on Social Responsibility).

Core Subjects

IssuesHitachi’s Engagements

Related Pages inThis Report

Organizational Governance

Organizational Governance∙ Corporate Governance∙ CSR Management∙ Brand Management∙ Public Policy Initiatives

pp. 028–029
pp. 030–033
pp. 046–048
pp. 099–100

Human Rights

1. Due diligence
2. Human rights risk situations
3. Avoidance of complicity
4. Resolving grievances
5. Discrimination and vulnerable groups
6. Civil and political rights
7. Economic, social and cultural rights
8. Fundamental principles and rights at work

∙ Respect for Human Rights

pp.116–118

Labour Practices

1. Employment and employment relationships
2. Conditions of work and social protection
3. Social dialogue
4. Health and safety at work
5. Human development and training in the workplace∙ Diversity Management∙ Global Human Resource Development∙ Employee Health and Safety

pp. 123–129
pp. 130–131
pp. 132–133

The Environment

1. Prevention of pollution
2. Sustainable resource use
3. Climate change mitigation and adaptation
4. Protection of the environment, biodiversity and restoration ofnatural habitats∙ Corporate Environmental Management
Strategies and Initiatives∙ Environmentally Conscious Products andServices∙ Environmentally Conscious Production∙ Environmental Management Framework andCommunication

pp. 051–062

Fair Operating Practices

1. Anti-corruption
2. Responsible political involvement
3. Fair competition
4. Promoting social responsibility in the value chain
5. Respect for property rights∙ Risk Management∙ Compliance∙ Intellectual Property∙ Supply Chain Management∙ Activities to Preserve Ecosystems

pp. 034–035
pp. 036–040
pp. 044–045
pp. 119–122
pp. 060–062

Consumer Issues

1. Fair marketing, factual and unbiased information and faircontractual practices
2. Protecting consumers’ health and safety
3. Sustainable consumption
4. Consumer service, support, and complaint and dispute resolution
5. Consumer data protection and privacy
6. Access to essential services
7. Education and awareness∙ Quality Assurance and Customer Satisfaction

pp. 093–098

Community Involvement andDevelopment

1. Community involvement
2. Education and culture
3. Employment creation and skills development
4. Technology development and access
5. Wealth and income creation
6. Health
7. Social investment∙ Impact of the Great East Japan Earthquake andHitachi’s Response∙ Social Contribution Activities

pp. 010–014*1 Examination of the potential negative effects that an organization’s decisions and activities may have on society, the environment, and the economy

Hitachi Group Sustainability Report 2011
http://www.hitachi.com/csr/

144

pp. 063–070
pp. 071–080
pp. 081–089

pp. 104–115

Comparative Table with the UN Global Compact
Items in Hitachi Group Codes of Conduct and Hitachi’s engagements are shown
together with the corresponding 10 principles of the UN Global Compact.

Area
Human Rights

Labor

Environment

Principles
Principle 1

Businesses should supportand respect the protectionof internationallyproclaimed human rights

Principle 2

Businesses should makesure that they are notcomplicit in human rights
abusesPrinciple 3

Businesses should
uphold the freedomof association and theeffective recognition of
the right to collective
bargaining

Principle 4

Businesses should
uphold the eliminationof all forms of forced andcompulsory labour

Principle 5

Businesses should upholdthe effective abolition ofchild labour

Principle 6

Businesses should
uphold the elimination of
discrimination in respectof employment andoccupation

Principle 7

Businesses should support
a precautionary approachto environmental
challenges

Principle 8

AntiCorruption

Hitachi Group Codes of Conduct

Businesses should
encourage thedevelopment
and diffusion ofenvironmentally friendly
technologies

Principle
10

Businesses should work
against corruption in
all its forms, including
extortion and bribery

Related Pages inThis Report

1.3 Procurement Activities
3.6 Observance of Laws and Regulations and Respect of
the Culture and Customs of Each Nation and Region
4.1 Promoting Respect of Human Rights
4.2 Eliminating Discrimination
4.3 Respect of Human Rights in Information
Management
4.4 Respect of Basic Rights at Work∙ Respect for Human Rights∙ Supply Chain Management

pp. 116–118
pp. 119–122

1.3 Procurement Activities
4.1 Promoting Respect of Human Rights
4.2 Eliminating Discrimination
4.3 Respect of Human Rights in Information
Management
4.4 Respect of Basic Rights at Work
5.4 Arranging a Work Environment That Draws Out
Employee Strengths∙ Diversity Management∙ Global Human Capital Development∙ Employee Health and Safety∙ Supply Chain Management

pp. 123–129
pp. 130–131
pp. 132–133
pp. 119–122

2.1 Promoting Environmental Management
2.2 Environmentally Conscious Business Activities andEnvironmental Management
2.3 Communication with Stakeholders∙ Corporate Environmental Management
Strategies and Initiatives∙ Environmentally Conscious Products
and Services∙ Environmentally Conscious Production∙ Environmental Management
Framework and Communication

pp. 051–062∙ Compliance

pp. 036–040

Businesses should
undertake initiatives
to promote greater
environmental
responsibility

Principle 9

Hitachi’s Engagements

3.3 Relations with Politics and Government
Administration
3.5 Regarding Gifts, Business Entertainment, Etc.

Hitachi Group Sustainability Report 2011
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145

pp. 063–070
pp. 071–080
pp. 081–089

Policy, Vision, and Guidelines
Policy, vision, and guidelines reported in Hitachi Group Sustainability Report 2011
are listed below.

Category

Policy, Vision, and Guidelines

Hitachi’s Management Strategies and CSRManagement Report

Risk Management
Compliance

Environmental ReportSocial Report

Related Pages in This
ReportCorporate Credo

p. 015

Hitachi Group Vision

p. 015

Hitachi Group Codes of Conduct

p. 0152012 Mid-Term Management Plan

pp. 015–016

CSR Policy of the Hitachi Group

p. 017

Guidelines for Pandemic Influenza Preparedness

p. 035

Hitachi Group Codes of Conduct

p. 036

Basic Approach to Information Security Governancep. 039Personal Information Protection Policyp. 038Three Principles for Preventing Leakage of Confidential
Information

p. 039Brand Management

Hitachi Brand Platform

pp. 047–048

Environmental Management Strategies andInitiatives

The Hitachi Environmental Vision

p. 051Long-Term Plan Environmental Vision 2025

pp. 051–052

Hitachi Action Guidelines for Environmental Conservation

p. 059Quality Assurance and Customer Satisfaction

Customer Satisfaction Management Guidelines

p. 095

Communication with Shareholders and Investors

Disclosure Policyp. 101

Basic Policy for Prevention of Takeovers

p. 103

Supply Chain Management

Social Contribution Philosophy and Policyp. 104

Guidelines for Procurement Activities

pp. 119–120

Hitachi Group Supply-Chain CSR Deployment Guidebook

p. 120

Green Procurement Guidelines

pp. 120–121

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Major Results Data
Major results data reported in Hitachi Group Sustainability Report 2011 are listed
below.

Management
FY 2006

FY 2007

FY 2008

FY 2009

Related Pages inThis Report

FY 2010

Innovation Management
R&D Efficiency (ROI) (%)

0.45

0.82

0.31

0.37

1.1

p. 041

R&D Expenditures to Revenues (%)

4.0

3.8

4.2

4.2

4.3

p. 041

37

45

47

47

51

p. 044

Intellectual Property
Patent Application Ratios outside Japan (%)

Scope of data
Hitachi, Ltd. and consolidated subsidiaries (including modiﬁed entities to which the equity method of consolidated reporting applies)
No. of companies:
FY 2006: 934; FY 2007: 911; FY 2008: 944; FY 2009: 901; FY 2010: 914

Environment
FY 2006

FY 2007

FY 2008

FY 2009

Related Pages inThis Report

FY 2010

Environmental Management Strategies and Initiatives
Contributions to CO2 Emission Reduction (millions of
tonnes)

—

—

—

11.77

15.51

p. 052

31

38

47

53

60

p. 063

4,900

5,741

6,954

8,387

9,456

p. 063CO2 Emissions in Japan (kt-CO2)

2,805

3,104

2,893

2,482

2,630

p. 072CO2 Emissions outside Japan (kt-CO2)

1,483

1,407

1,419

1,397

1,694

p. 073CO2 Emissions from Transportation in Japan (kt-CO2)

188

174

155

128

125

p. 074

Waste Generation (kt)

Environmentally Conscious Products and Services
Eco-Product Sales Ratio (%)
No. of Eco-Product Models (models)
Environmentally Conscious Production

784

760

737

608

738

p. 075

3

Water Use outside Japan (millions of m )

14.68

14.26

13.61

12.90

16.40

p. 077

VOC atmospheric Emissions in Japan (kt)

6

5

4

3

3

p. 078

752

774

523

577

439

p. 079

VOC atmospheric Emissions outside Japan (t)Scope of data
For environmental load data generated from products
Hitachi, Ltd. and consolidated subsidiaries (including modiﬁed entities to which the equity method of consolidated reporting applies)
No. of companies:
FY 2006: 934; FY 2007: 911; FY 2008: 944; FY 2009: 901; FY 2010: 914
For environmental load data generated through business operations
Companies that cover 90% of the load (based on Hitachi calculations)

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SocialFY 2006

FY 2007

FY 2008

FY 2009

Related Pages inThis Report

FY 2010Social Contribution Activities
Breakdown of Funding for Social Contribution Activities†1(millions of yen)

1,412

1,472

1,439

1,347

—

p. 104

—

—

—

—

36

p. 119Ratio of Male and Female Employees (Hitachi, Ltd.) (%)

86:14

86:14

86:14

85:15

84:16

p. 124

Ratio of Male and Female Employees (Hitachi Group†2)
(%)

—

—

—

89:11

90:10

p. 124

Ratio of Female Managers (Hitachi, Ltd.) (%)

—

2.5

2.9

3

3.3

p. 124

Ratio of Female Managers (Hitachi Group†2) (%)

—

—

—

1.2

1.3

p. 124

No. of Employees Taking Child Care Leave (Hitachi, Ltd.)(people)

189

438

459

510

542

p. 124

No. of Employees Taking Child Care Leave (HitachiGroup†2) (people)

—

—

—

546

538

p. 124

No. of Employees Taking Nursing Care Leave (Hitachi,Ltd.) (people)

7

20

18

11

10

p. 125

No. of Employees Taking Nursing Care Leave (HitachiGroup†2) (people)

—

—

—

25

23

p. 125

No. of Employees Working Shorter Hours (Hitachi, Ltd.)(people)

96

350

383

288

337

p. 125

No. of Employees Working Shorter Hours (HitachiGroup†2) (people)

—

—

—

551

695

p. 125

Employment Ratio of People with Disabilities†2 (%)

2.05

2.11

2.06

2.01

2.05

p. 129No. of Non-Japanese Employees (Hitachi, Ltd.) (people)

151

179

200

218

230

p. 130No. of Employees Taking Group-Wide Training (HitachiGroup†3) (people)

—

—

—

—

22,666

p. 131

Supply Chain Management
Global Procurement Ratio (%)
Diversity Management

Global Human Capital Development

Employee Health and Safety
Occupational Accident Rates (Hitachi, Ltd.) (%)

0.12

0.05

0.12

0.06

0.07

p. 132

Occupational Accident Rates (Hitachi Group†2) (%)

0.25

0.26

0.22

0.25

0.23

p. 132

Scope of data
†1 Hitachi, Ltd. and ﬁve foundations in Japan†2 Twenty-seven Hitachi Group companies in Japan†3 Hitachi, Ltd. and consolidated subsidiaries (including modiﬁed entities to which the equity method of consolidated reporting applies)
No. of companies:
FY 2006: 934; FY 2007: 911; FY 2008: 944; FY 2009: 901; FY 2010: 914

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Inquiries
Hitachi, Ltd.
CSR Promotion Department, CSR Division(For inquiries on this report or CSR activities overall)
1-6-6 Marunouchi, Chiyoda-ku, Tokyo, 100-8280, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4564-1454 http://www.hitachi.com/csr/
Environmental Strategy Office (For inquiries on environmental activities)
1-6-1 Marunouchi, Chiyoda-ku, Tokyo, 100-8220, Japan
Tel: +81-3-3258-1111 Fax: +81-3-4235-5835 http://www.hitachi.com/environment/

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