ENVIRONMENTALSUSTAINABILITY REPORT 2003

Hitachi GroupEnvironmental Sustainability Report 2003
Contents
Front cover:Winning entries in the environmental advertisement contest sponsored by the Hitachi Group

Rear cover:

Our Determination as a Global Citizen

Separate sheet: Questionnaire
Effective Utilization of Resources

19
1 Contents and Editorial Policy
2 Highlights 2002

Increasing Product Transportation Efficiency
20 Eco-factories

3 Message from the President

Waste Reduction

4 Environmental Impact Data for Corporate Activities（FY2002）

21

Prevention of Global Warming - Energy Conservation

5 Basic Environmental Philosophy

23

Chemical Substance Risk Management

6 Executive Commitment
7 EcoValue Plan 2010
8 Environmental Action Plan and Evaluation
9 GREEN 21 Version 2 Evaluation Standards

25WORLDWIDE STAKEHOLDER COLLABORATION
26

Environmental Communication

27

Environmental Town Meetings
Communication with Investors

11
12

13

14

ECO-MIND & MANAGEMENT

28

Opinions on Hitachi's Environmental Report

Eco-management Structure

29

Comments on Sustainable Business Models for the Future

Environmental Education - Nurturing Eco-minds

30 Employee Relations（Personnel Affairs）

Environmental Management System

31 Employee Relations（Health and Safety）

Integrated System for Environmental Management

32 Compliance with Laws & Regulations

Environmental Accounting

Customer Relations
33 Social Contribution Activities

15

NATURE-FRIENDLY PRODUCTS & ECO-FACTORIES

35

16 Nature-friendly Products
Design for Environment Assessment and Eco-products

SUSTAINABLE BUSINESS MODELS
36 Constructing Business Models

Application of the Environmental Efficiency andFactors Indicators
17

Examples of Eco-products

18

Green Procurement
Chemical Substances Used in Products
Green Purchasing―Product Take-back and Recycling―
37 Offering Total Environmental Solutions

39 In Correspondence with Guidelines
40 List of Data Published on the hitachi green web
41 Company Profile
42 List of Companies Covered by Reports

Environmental Sustainability Report centers on the results and environmental activities of the Hitachi Group,■Editorial Policy of This Report The
and informs our readers of plans we intend to carry out in the future.

This report contains the following:
・The title of this report was changed from the Environmental Sustainability Report to the Environmental
Management Sustainability Report in Japanese which better indicates the content of this report - environmental
activities from a managerial perspective. The Hitachi Group practices environmental management with emphasis
first and foremost on its social responsibilities, secondly on consideration for the environmental in businessactivities, and thirdly on risk management for the future.
・Information on environmental loads has been collected and presented in such a way that the overall picture iseasy to interpret at a single glance.
・We give a description of GREEN 21 Version 2, Hitachi's new evaluation tool for realizing the Group's
Environmental Vision.
・We added descriptions of compliance with environmental regulations and customer relations as part of our social
report on sustainability.
・We published the results for our principal targets and activity plans in a compact version of this report on our
homepage.
Further, we provided a page that allows you to search through a list for the page numbers of each indicator, anddata published on our homepage.
For further details, refer to the hitachi green web homepage at: http://greenweb.hitachi.co.jp/en/（See page 40 of this report for a copy of the data list published on the hitachi green web homepage.）

1

The company and product names appearing in this report are trademarks or registered trademarks of
their respective companies.

Report period
Centered on fiscal 2002（1 April 2002 to 31 March 2003）
Scope of report
298 firms of the Hitachi Group（Hitachi, Ltd. and its 297 relatedcompanies, subsidiaries and affiliates）
We conducted a survey on the environmental impacts ofconsolidated group firms and reported on those firms that
account for 85% of the Hitachi Group's overall environmental
impact.（→See P.42）
Reference indicators
Environmental Performance Indicator Guidelines for Business,
Fiscal Year 2002 Version（Ministry for the Environment）
2001 Environmental Reporting Guidelines with an Emphasison Stakeholders（Ministry of Economy, Trade and Industry）
Sustainability Reporting Guidelines 2002
（Global Reporting Initiative）

H

Highlights 2002
Introducing the main topics for environmental activities in FY2002:
Introducing GREEN 21 Version 2

Commencement of Internet Education

We have introduced a new environmental evaluation indicator called GREEN

To foster eco-minds among our employees, we commenced education

21 Version 2 to aid in achieving our targets established in the Hitachi Group's

through the use of the Internet in December 2002.（→P.12）

Environmental Vision （Sustainability Compass）for fiscal 2005. We added
GREEN 21 Version 2 to our Group performance evaluation standards in
October 2002.（→P.9-10）● The Green Point Average（domestic and overseas）
Environmental Management
Sustainable Business
Models

71GPs

FY2002:377 GPs

Worldwide
Collaboration
with
Stakeholders

Web page for ecomind education（the section's
opening andcontents screens）

Risk Management

52GPs

26GPs
54GPs

39GPs

Eco-minds

31GPs
55GPs
49GPs

Nature-friendly
Products

Resource Recycling

Prevention of Global Warming

Application of the Environmental Efficiency and Factors Indicators

Hitachi's Homepage Receives Auditors Special Award

We have developed and commenced the application of the environmental
indicators Environmental Efficiency and Factors. Environmental Efficiency
indicates the degree by which restricting a company's impact on the environment
with regards to products and transportation has improved its value, while Factors
indicates the degree a company has improved when comparing products or fiscal
performance results that act as a base for environmental efficiency.（→P.16）

The Hitachi Group's environmental activities●Calculation Example for the
FactorProduct
Washing machine

Factors

Indicator

Calculation Figure（based on the reference year）
Prevention of Global Warming

Resources

5.0

2.3

homepage received the Auditor's Special Award in
the corporate category, Environmental goo Grand
Prize 2002. In the future, we will endeavor to
update and improve the contents of our homepage
to introduce the Hitachi Group's environmental activities in an even easier tounderstand format.（→P.26）

Becoming a Sustainable Corporation
For the past two years Hitachi has been rated as part of
the top 10% of sustainability by the Dow Jones
Sustainability Indexes（DJSI）. In the future, we will
pursue sustainability aiming to become a top
corporation.（→P.27）

Washing machine（1990）
Model number: KW-B483

Washing machinewith built-in drier（2002）
Model number: NW-8BX

2

Message from the President

In Japan, my hometown city of Joetsu in Niigata Prefecture is renowned for its heavy snowfall. When I was young, so muchsnow would settle that we had to enter and leave the house through a window on the second floor. These days however,instances of snow settling to those levels are few and far between. Global warming is no longer just a theory, but has now
reached the stage where we can actually feel its effects.
Presently, we are seeing the seriousness of the effects mankind's industrial activities have had on the global environment, and it
may even be said that there is no future for corporations whose management practices do not take the environment into
consideration. For example, one possible model for corporations to follow is that of a triple bottom line, which places equal
emphasis on the three areas of finance, the environment, and society. Upon closer examination of this model, you find that it isbased on common principles.
To begin with, a corporation's social value is determined by its contribution to society through products and services, and thecontinued provision of customer satisfaction and peace of mind achieved through trust. This means business practices that do
not yield any profit and which do nothing more than waste precious resources are perceived as having little or no value, and as
a result, their existence is of no significance to society.
Hitachi's strong point is its ability to create social infrastructure that acts as a foundation for people with an understanding of
information (i) and electronics (e) technologies. Hitachi has utilized this strength to develop its new mid-term management plan,i.e. HITACHI Plan II, as its target for fiscal 2005. Through this, Hitachi is promoting radical reforms to its operating
structure, and endeavoring to make the giant leap from quantity to quality. To advance yet further still, we must develop
business activities after first analyzing and evaluating the future risks involved with these activities. It is essential to take into
consideration the situation our grandchildren and their grandchildren will face fifty or even one hundred years from now.
I once had the chance to visit Egypt, and was rendered speechless by the sheer scale of the great pyramids that towered before
my eyes. They were quite overwhelming. It must have taken great technical ability to stack the 2.3 million megaliths up to 15
tons each on top of one another. When I saw the pyramids, I forgot all about the scorching heat surrounding me as my mind
drifted back an eternity to the time of the Pharaos 4,500 years earlier. At that point, I was reminded of the intellectual
potential possessed by mankind.
Yet at the same time, humans have but a tiny and powerless existence in a vast and severe natural environment, and we should
never forget this. However much we pride our own intelligence, we should always remember with humility that we are only one
part of the larger environment. I believe it is because we are all in the same position that we are able to work together increating technologies that minimize our impact on the Earth's ecosystem, and corporations that take the initiative inresearching and developing these technologies will be greeted with open arms by society.
Let Hitachi take the lead! I promise here and now that Hitachi will become a corporation that creates environmental value.

May 2003
President and Director

At the Eco-Products exhibition

3

Etsuhiko Shoyama

Environmental Impact Data for Corporate Activities（Fiscal 2002）
The following data is for domestic and overseas companies listed on P.42.

INPUT
1,837,000 kl（crude oil conversion）

Electricity

OUTPUT

Domestic

Total energy consumption

5.49 billion kWhPetroleum（crude oil conversion）

438,000 kl

Heat

12,000 kl

2914 kt（2914 GWPt* ）CO2 emissions

2

New energy types
Electricity

50 million kWh

Total volume of products
manufactured and sold1733kt（13 kt used for packaging inclusive）

Volume of chemical substances discharged or transferredCorpo r a t e a c t i v it ie s

Total input of materials
Materials

1151 kt

MetalsIron（including steel sheeting）

690 kt74kt

Aluminum

Stainless steel

33kt

Copper216kt

Other nonferrous metals 138kt

136kt

Plastics
Thermoplastics

100kt

Thermohardened plastics 36kt

Rubber

14kt

Other materials

334kt

Handling volume for chemical substances covered under the PRTR law*1

235kt

Chemical substances

Handling volume for ozone
depleting substances
424t

Discharge or transfer volume for chemical
substances covered under the PRTR law*1

Handling volume forgreenhouse effect gases 763t

3

Surface water 9.56 million m

5t（31kGWPt）

24t（172kGWPt）

408t

1188t

NOX

642kt

Waste reduction 114kt

Recycling（rate）

484kt（92％）

Volume re-used

Volume ofmaterial recycling 334kt（69%）

92kt（19%）44kt（8%）

Final disposal（rate）

75.51 million m3

Total volume of wastewater
Breakdown of wastewater by destination
Public waterways

65.17 million m3

3

Sewerage system 10.34 million m

Water quality

102.06 million m3

INPUT

Overseas

480t

BOD

247t

COD

OUTPUT

398,000 kl

599kt 599

CO2 emissions

Corporate
activities

Petroleum（crude oil conversion）104,000 kl

New energy types
Electricity

HFC

PFC

Volume ofthermal recycling 58kt（12%）

Underground water 43.78million m

1.11 million kWh

21t（504kGWPt）

Waste generated 642kt

Industrial water 26.65 million m

3Electricity

50t（707kGWPt）

SF6

Total volume of waste generated

3(crude oil conversion)

Greenhouse gas emissions

SOX

79.99 million m3

Total energy consumption

50t（3.0ODPt*3）

Substances subject to emissions regulations

Volume ofwater reused
Water consumption

10.2ktVolume of discharge for ozone depleting substances

10 million kWh

Total input of chemical substances
Chemical substances
Handling volume for chemical substances covered under the PRTR law 14.0kt
3Water consumption

8.62 million m

Surface water 5.88 million m3
Underground
770,000million m3
water

Industrial water 1.97 million m3（

kGWPt）

Volume of chemical substances
released or transferred
Discharge or transfer volume for chemical
substances covered under the PRTR law

0.7kt

Total volume of waste generated
Waste generated 130kt

Volume ofwater reused

Recycling（rate）

65kt（52％）

130kt

Waste reduction 6kt
Final disposal（rate） 59kt（48％）

Total volume of wastewater

7.86 million m3

Breakdown of wastewater by destination

3.28 million m

3

Public waterways

2.54 million m3

Sewerage system 5.32million m3*1 Chemical substances covered under the PRTR（Pollutant Release and Transfer Register）law: a list of 354 substances covered by The Law Concerning Reporting, etc. of
Releases to the Environment of Specific Chemical Substances and Promoting Improvements in Their Management （Chemical Substance Management Law）enacted in 1999 in
Japan *2 GWP: Global Warming Potential. A coefficient for measuring global warming（CO2 conversion unit = t） *3 ODP: Ozone Depletion Potential. A coefficient for measuring
the depletion of the ozone layer（CFC conversion unit = t）

4

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

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

Enacted June 1983（revised September 1996）

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

Enacted March 1993

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

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

W

Nature-friendly Products & Eco-factories

Core Value
A corporate community inbalance with nature and thecreation of a sustainable society
A pioneering spirit
Responsibility for future generations
Global citizenshipE
Eco-mind & Management

Sustainable Business Models● Expand sustainable business models● Promote the spread of business operations
with a reduced environmental impact

5● Strengthen management systems that
promote sustainable business activities● Foster advanced eco-minds among
employees and their families

SExecutive Commitment
May 2003
Senior Vice President and Director

Masaharu Sumikawa

One of my passions is walking through the mountains, atrend more recently known as hiking. Regardless ofthe name, I enjoy walking through the naturalenvironment, and in my student days I used to go off into
the mountains with a tent slung over my shoulder. WhenI am walking through the tranquility of nature, I feel as if
my soul is being cleansed.
I would like to tell you about the time my wife and I went
walking on Mt. Oyama, near Atsugi City in Japan.
Although it was the off season, it was terribly crowded,
and to avoid the swarms of people we had lunch in a
secluded spot. After lunch, we decided to walk down themountain, and I remember the descent was steep as we
progressed along the uneven stepping stones. I was
conscious of the burden on my knees, but in the stillnessof the almost deserted forest, I could feel the richness ofnature throughout my entire body. Along the way, we
met up with some children who were out with their
young parents, and the image of them happily making
their way up the steep slope bathed in sweat made alasting impression in my mind.
Corporate people like myself tend to easily forget theblessing of nature as we go about our work. However,corporations continue to carry out their activities as they
enjoy nature's bounty just as you or I would, and now thedepletion of natural capital is a critical situation. To
counter this, we need to think of ways to conductbusiness so that resources are used more effectively.

In fiscal 2002, the Hitachi Group implemented GREEN 21
Version 2, an evaluation standard for environmental
activities, in order to make steady progress towards thegoals and targets set out in our Environmental Vision（Sustainability Compass） implemented in fiscal 2001.
GREEN 21 Version 2 is an indicator designed tocomplement Hitachi's Sustainability Compass andsystematically measure the degree of progress achieved in
the following areas: ①Eco-mind & Management, ②Naturefriendly Products & Eco-factories, ③Worldwide
Stakeholder Collaboration, and ④Sustainable Business
Models. In addition, to encourage all of our executive levelstaff to conduct business with a heightened awareness ofenvironmental issues, we have added countable indicatorssuch as profit and capital to Hitachi's performance
evaluation standards. These indicators form the basis forevaluations that measure a corporation's social andenvironmental value, which are carried out by eachbusiness group.
In a recent lecture conducted by Dr. Norman Myers, anenvironment and development consultant who contributedcomments to Hitachi's Environmental Sustainability
Report 2002, he outlined ways in which corporations canguide the development of new social reforms andcustomer bases. He explained that this can be achieved
through business activities that take a fresh look at thevalue of natural capital by shifting a corporation's focus
away from merely selling products to providing functions
and services for products. I agree with his philosophy, andthink we need to be aware that we are borrowing
materials from the earth as we carry out business andenvironmental management activities in the 21st century.
I believe it is part of our larger responsibility as
Corporations to ensure that future generations, such as
the children I met on the mountain, inherit an abundantnatural environment where they can enjoy activities likemountain climbing.

At Mt. Oyama

6

EcoValue Plan 2010
EcoValue Plan 2010 is a roadmap indicating the future direction the Hitachi Group intends to take in order torealize the Company's Environmental Vision.

Category

FY2005FY2010

Environmental Management Strategy

Development and advancementof environmental management

Becoming a corporation thatcreates environmental value

Assessment system

GREEN 21 Version 2 640 GP（FY2005）

Development of GREEN 21 Version 3

Environmental
education

Development of educational and regional
activities for employees and their families

Establishment of ecological lifestyles

Draw up and adopt the Eco-products Value Plan*1

Development of advanced（top-runner）environmental
products in accordance with the Eco-products Value Plan

Eco-mind&
Management
Nature-friendly products
Nature-friendly
Products &Eco-factories

Eco-products
Effective use ofresources and energy

Chemical substancesused in products

Increased efficiencyof transportation

Prevention of
global warming

Abolish the use of six chemical substances: hexavalentchromium,lead, cadmium, mercury, PBB, and PBDE*2（electrical and electronic devices covered by RoHS*3）

Abolish products that use HCFCs*4（overseas: by the end of 2006）

Correct management of chemical substances used in products
Promote the reduction of environmental loads during product transportation（developments such as promoting a modal shift and introducing low-emission vehicles）

Eco-factories

Draw up and adopt the Eco-factories Value Plan*5

Improve the Eco-factories Value Plan

Reduce CO2 emissions by 3%（based on FY1990 levels）（domestic target）
Reduce unit requirements for production-related CO2
emissions by 20%（based on FY1990 levels）

Reduce CO2 emissions by 7%（based on FY1990 levels）（domestic target）
Reduce unit requirements for production-related CO2 emissions
by 25%（based on FY1990 levels）

Reduce SF6*6 emissions to 3%
or less of the purchased quantity

Reduce PFC*7 emissions to 10%
or less（based on FY1995 levels）

Reduce the amount of waste for final disposal to 80%
or less（based on FY1998 levels）
Waste reduction

Promote zero-emission facilities（29 facilities）

Reduce the amount of waste for final disposal
to 70% or less（based on FY1998 levels）

Control the amount of waste and reusable waste generated（planned reductions based on the target values for each site）

Worldwide Stakeholder
Collaboration

Sustainable Business
ModelsChemical substance
reduction

Abolish emissions of prohibited substances
Reduce emissions of substances specified for reduction*8by 30%（based on FY2000 levels）

Disclosure of
information

Extensive information disclosure for operation sites

Communication

Develop environmental town meetings*9
at regional and international levels

Community activities

Promote volunteer activities,
such as programs that foster talent

Construction ofbusiness models

Expand product recycling systems, leases, and rental businesses

Environmental
solution businesses

Expand the spread of environmental solution models for business

Promote a reduction in chemical substance emissions

Promote cooperation with communities■ Environmental Management - Our History
Compliance withenvironmental regulations

Environmental
operations

Environmental
management

1971 Established the Environmental
Management Promotion Center1991 Established Corporate
Environmental Policy Division

1998 Released the first
Environmental Report1972 Established the Environmental
Research Center

1992 Established the Environmental
Committee: Formulated
the Environmental Action Plan

1999 Established the Senior Executive
Committee for Environmental Policy
Established GREEN 21 activities
and the environmental logo mark1973 Initiated environmental audits

1994 Established the ISO Certification
Committee

Promotion of environmental
management
2001 Established Hitachi's Environmental Vision
2002 2002 Established GREEN 21 Version 2 activities
Commenced the environmental education program
via the internet
Application of the Environmental Efficiency
and Factors Indicators

2000 Established Hitachi's
Environmental Vision*1 Eco-products Value Plan: An eco-products indicator that combines the existing eco-products indicator with an environmental efficiency indicator. *2 PBB: Polybrominated biphenyl, PBDE:
Polybrominated diphenyl ethers *3 RoHS: Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment（EU proposed） *4 HCFC: Hydrochlorofluorocarbon*5 Eco-factories Value Plan: An eco-factories indicator that combines the volumes for CO2 emissions, waste, and emissions of chemical substances. *6 SF6: Sulfur hexafluoride *7 PFC:
Perfluorocarbons *8 Substances specified for reduction: Substances that are prohibited or specified for reduction. *9 Environmental town meetings: Meetings held between the Hitachi Groupand its stakeholders in order to exchange opinions about environmental activities.

7

Environmental Action Plan and Evaluation
The following is our Environmental Action Plan for fiscal 2002, and an evaluation of our performance.
For a description and current evaluation of each activity see the page indicated below.
2002 Performance Evaluation Key：Accomplished activity：Needs improvement ☆：New target added in FY2003

FY2002 activity targets

Promotion ofEnvironmental
Management

In addition to aiming towards consolidated management and standardized management practices throughout our affiliatedcompanies and their operation sites, each business partner and affiliated company within the Hitachi Group is endeavoring tostrengthen their environmental management systems so that they are in accordance with stricter environmental controls. Further,the Hitachi Group will proactively promote environmental management as one of its business strategies, and strive to become acorporation that creates environmental value.

Number of companies covered byenvironmental impact reports:
Domestic: 244
Overseas: 54
Total: 298

P.1, 2

GREEN21Commence GREEN 21 Version 2 activities（GP（green point）level for FY2005: 640 points,
FY2002: 320 points） Reflect activities in performance evaluations

GP level: 377 points
Introduction of performance evaluation system

P.9, 10

Environmental Education

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

Content development and introduction of the environmental
education program via the internet program for generalemployees

P.12

Implementation of an environmental management system☆ Extensive internal environmental auditing at each operation

Acquired certification at 18 sites（Total number of sites acquired certification: 234）

P.13

Establish environmental accounting practices throughout the Hitachi Groupand its affiliate companies, and proactively promote environmental management practices☆Promote internal application through environmental impact reduction efficiency indicators, etc.

Environmental Accounting Totals for FY2002
Planning and development of environmental
reduction efficiency indicators

P.14

Expand range of eco-products by 30%（60% by FY2003）

Expanded to 46%

P.16

Environmental
Management System

Abolish the use of lead solders in printed circuit board connections（FY2003）

Developed an environmental indicator for
application with washing machines
Amount of lead solder used: 17.7%（based on FY1997 levels）

Abolish products that use HCFCs（Domestic target: end of 2003）

Abolished from use in cooling devices and ice-makers

P.18

Correct management of chemical substances used in products

Completed for 14,000 electronic components

P.18

Promote the reduction of environmental impact（such as CO2 ,NOx, and PM {particulate matter} emissions）during transportation

Environmental load of CO2 during transportation:
346.3 kt-CO2/year（a domestic increase of 4.2%）

P.19☆Promote internal application through transport efficiency indicators, etc.

Enactment of a transport efficiency indicator

P.19☆Reduction of CO2 emissions（3% reduction by FY2005（based on FY1990 levels））

Reduced CO2 emissions by 9%（based on domestic FY1990 levels）

P.21

Reduction of the basic unit of production-related CO2 emissions（20% reduction by FY2005（based on 1990 levels））

Reduced the basic unit of production-related
CO2 emissions by 16%（based on FY1990 levels）

P.21☆Draw up and adopt an environmental efficiency indicator

Eco-products

Increased Transportation
Efficiency

Prevention of
Global Warming

Reduction of the emission of greenhouse effect gases other than CO2

Waste Reduction

Chemical SubstanceManagement
PCB Management

Environmental
Communication

Global Citizen
Activities

Sustainable Business
Models

FY2002 performance results

Performance
evaluation Reference pagefor FY2002

Category/activity

Controlled SF6 emissions to 6% or less of the purchased quantity
Reduced PFC emissions by 2%（based on FY1995 levels)

P.16
P.18

P.22

20% reduction for the amount of waste for final disposal（by FY2005）

Reduced by 41%（based on FY1998 levels）

P.20

Control of the amount of waste and reusable waste generated

Plan enacted for each site

P.20

Promote zero-emission factories（29 operation sites by FY2005）

Achieved at 17 sites

P.20

Promote the abolishment of prohibited substance emissions（towards FY2005）

Reduced substances specified for reduction
by 29%（based on FY2000 levels）

P.23

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

Proper storage management implemented

P.24

Hitachi is committed to strengthening communication with its stakeholders (customers,shareholders, business partners, andgeneral citizens).
・Information disclosure through PR and advertising activities
・Periodic release of information about production sites through the publication of environmental reports and our
Web site・Active participation in a variety of environmental activities outside the Company, from presentations and lectures, to regional
activities
・Conduct meetings with stakeholders and regional town meetings
・Opinion exchanges through questionnaires, surveys, and study tours

Published Hitachi Group Environmental Report（May 2002）
Published site-specific environmental reports for
25 individual sites
Information on 45 site specific home pages.
Participated in the Eco-Products 2002 exhibition（December 2002）
Conducted an environmental town meeting（March 2003）
Received 112 responses to questionnaire inenvironmental report

P.26-29

The Hitachi Environment Foundation commenced its
Environmental NPO Assistance Project, which madecontributions totaling 4.5 million yen
Conducted the Hitachi Volunteer Seminar for company
employees
Presented the Green Award for Social Contribution

P.33-34

Emissions reduction for substances specified for reduction（15% reduction by FY2003（based on FY2000 levels））

Become involved in activities that contribute to society through the planning of volunteer activities and by encouraging
employees to actively participate in local volunteer activities
・Conduct environmental awareness education activities with local communities through theintroduction of environmental activities, and by opening Hitachi facilities to the public
・Conducting activities in cooperation with local NGOs
・Implementation of local afforestation and cleanup activities

・Strive to increase sustainable business models through the collection and recycle of used products
・Maximize the use of the Hitachi Group's environmental preservation technologies, and strive todevelop total solutions, including low environmental impact businesses and environmental information
solutions・Actively promote R&D that contributes to environmental preservation activities☆Design a system for inspecting sustainable business models, and deliberately promote its
introduction and use☆Plan and implement environmental restoration activities（restoration of ecosystems, independent power
generation, investment in recyclable energies, support, etc.）

Commenced collecting and recycling PCs no longer
needed for business operations based on designatedapproval over a wide area（November 2002）
Conducted lectures（October 2002）
Hosted the "A Perspective on Environmental Management andSustainable Business Models" lecture（October 2002）

P.36-388

GREEN 21 Version 2 Evaluation Standards
With the establishment of our new Environmental
Vision（Sustainability Compass）, GREEN 21
Version 2（Sustainability Progress Indicator（SPI））
has replaced GREEN 21, which was
implemented from fiscal 1999 to fiscal 2001 inorder to measure our continual improvements
and activity progress levels based on specificenvironmental activity evaluation standards.
The distinguishing features of GREEN 21
Version 2 are its indicators based on our
Sustainability
Compass:
Eco-mind&
Management, Nature-friendly Products & Ecofactories, Worldwide Stakeholder Collaboration,and Sustainable Business Models. These
indicators were designed to realize theimplementation of our EcoValue Plan 2010 andEnvironmental Action Plan for fiscal 2005, andthe activity period specified for GREEN 21
Version 2 is fiscal 2002 to 2005. We have
replaced the conventional evaluation method thatused progress rate indicators to one that uses

absolute points so that all of the operation sites
within the Hitachi Group can achieve our targets
by fiscal 2005. In addition, we have standardized
the items for evaluation and activity period forboth our domestic and overseas companies sothey are in accordance with the newly revised
evaluation standards.

correction method to be applied in cases wherecertain performance indicators are inapplicabledue to operation conditions.
The result for the initial year evaluated using thissystem（FY2002）was 377 GPs. Compared with
GREEN 21 Version 1, we have establishedstricter evaluation standards for GREEN 21
Version 2, and also added several new
indicators. Based on our new system, ouractivities level for fiscal 2002 has been raised ascompared to fiscal 2001.

The evaluation standards for GREEN 21 Version
2 are divided into 53 performance indicators
spread over 8 different categories, with eachperformance indicator graded on a scale from 0
to 5（minus evaluations are also possible）. Level
2 is awarded for achieving the current activities
level, Level 4 for achieving the targets set out in
our Environmental Action Plan（FY2005）, andLevel 5 for implementing activities that exceed
these targets. Finally, a coefficient is applied tothe evaluation level awarded for each indicator.
The full points for each category is 100 GPs（hereafter, GPs ）, with a possible total scoreof 800 GPs. In addition, we have devised aWith regards to eco-products and sustainablebusiness models, while further improving ourpresent activities base, in the future we will
promote a variety of activities, such as improving
product transportation efficiency based on newlyestablished targets and the development ofbusiness models that contribute to the creation ofa recycle-oriented society.

■Developing GREEN 21 Version 2 based on Hitachi's Environmental Vision●Evaluation Criteria

GREEN 21 Version 1●Trend in Green Point Average and Improvement Rates（8 categories/
43 performance indicators）●Activity period: FY1998 to FY2001●Evaluation method: rate of improvement

Environmental Management
Policies

No Category

498 GPs

1 Environmental Management Policies●Target:2 Compliance with Environmental Regulations

Information Disclosureand Education

80

24.7％

Compliance with Environmental
Regulations

FY2001 average Improvement rate

37.2％

548 GPs

3 Environmental Accounting
4 Environmental Consideration of Products
5 Energy Saving at Facilities
6 Recycling

50

Environmental
Accounti

Chemical SubstanceManagement

To improve our green point（GP）rating 21%
by FY2001（based on FY1998 levels）

FY2000 average Improvement rate

20

FY1998 average
FY1999 average Improvement rate

407 GPs

455 GPs

7 Chemical Substance Management

14.0％

Environmental Considerationof Products

Recycling

8 Information Disclosure and Education

Energy Saving at Facilities

GREEN 21 Version 2●Activity period: FY2002 to FY2005●Evaluation method: absolute points●Target:Year
GPs（Green Points）

FY2002377*1●Trend in Green Point Average（domestic and overseas）
FY2003426

FY2004533

FY2005640*1 Performance results for FY2002.

Environmental Management

52GPs●Evaluation Criteria（8 categories/53 performance indicators）

9

No Category

Principal performance indicators

1

Eco-management

Environmental management, action plan, environmental accounting

2

Eco-management―Risk Management

Compliance with laws and regulations, setting of independent standards

3

Eco-minds

Employee training and education4

Eco-products

Implementation of product and service assessment, green procurement, distribution5

Eco-factories―Prevention of Global Warming

Energy saving at operation sites

6

Eco-factories―Resource Recycling

Waste reduction, chemical substance management

7

Worldwide Stakeholder Collaboration

Information disclosure, communication and community activities

8

Sustainable Business Models

Management systems, planning, product recycling, environmental restoration activities

Risk
Management

Sustainable
Business Models

71GPs

FY2002: 377 GPs

Worldwide
Stakeholder
Collaboration

26GPs
54GPs

39GPs

Ecominds

31GPs
55GPs
49GPs
Resource Recycling

Eco-products
Prevention of
Global WarmingAdding GREEN 21 Version 2 Indicators
to Performance Evaluation Standards
In October 2002, we added environmental
activity indicators to our performance evaluation
standards, enabling GREEN 21 Version 2 to be
used in performance evaluations.
Hitachi's performance evaluation standards
provide an impartial evaluation ofmanagement results, and were established tomeasure the improvement of managerial rules
and regulations and the degree to whichorganizational revitalization has beenachieved. Performance evaluation indicators
are a combination of both countable and noncountable items, including profitability, growth,and capital. We added environmental activities
to the non-countable indicators to better
assess social value. Based on this system, we

conduct fair performance evaluations for eachof our business groups, and use the results as
an incentive to improve profitability and social
value.

About Category Indicators
This section introduces evaluation standard
examples for our two principal categories.
Category 4―Eco-products（Manufactured）―
evaluates the following: implementation ratio
of product assessment, achievement rate of
eco-products, achievement rate for the nonlead solder implementation plan, achievement
status for the RoHS proposal（see P.7）,
planning and achievement status for green
procurement and purchasing, green supplierrate, and the reduction of environmental
impact during transportation. Meanwhile,
Category 6 Eco-factories（Resource Recycling）

evaluates waste disposal and chemical
substance management at operationsites. The indicator waste disposal
includes: the volume of waste generated,plan for reduction and implementation
status for the volume of waste for final
disposal, promotion of zero emissions,
recycling status for waste discharged
from independent sites, and extensive
implementation of correct disposal
methods. The indicator chemical
substance management includes: astructure for investigating new chemical
substances before they are used, anachievement rate for target values
related to the reduction of substances,
and a structure for managing stock andits application.

■Example of GREEN 21 Version 2 Evaluation Standards
The following are Categories 4 and 6 out of the total 8 categories.
Category ①: Eco-management
Category ②: Eco-management（Risk Management）
Category ③: Eco-mind
Category ④: Eco-products（Manufactured）

Category ⑤: Eco-factories (Prevention of Global Warming)
Category ⑦: Co-creation with Stakeholders
Category ⑧: Sustainable Business Models
Category ⑥: Eco-factories (Resource Recycling)10

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

Eco-mind & Management

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

Eco-management Structure
We are developing an eco-management structure
on a consolidated corporate base from which topromote activities related to environmental issues.
We established the Senior Executive Committee
for Environmental Policy, an executive
management level body led by Hitachi's president,
which assesses and sets the direction for ourenvironmental policies and activities. Information
regarding policies and activities set by theCommittee is released by the Environmental
Management Operational Committee. Further, theEnvironmental Committee and its various subcommittees develop surveys, shared technologies,
and evaluation methods designed to resolve thetopics and issues that are central to drawing up
policies and achieving targets.
As a body specifically designed to promote
fundamental environmental activities in accordancewith business operations, the Committee has
appointed environmental promotion officers tomanage the environmental departments for each of
our business groups and affiliated companies. In
fiscal 2001, we initiated environmental conferencesin the three major regions of Europe, Asia, andAmerica. At these conferences, in addition to
making our environmental policies morecomprehensive and sharing information about thelaws and regulations of various countries and theirmarket trends, participants are asked to think of
new ways in which we can strengthen
environmental activities in various countries.

Environmental Education Nurturing Eco-minds
The Hitachi Group has an environmental education
system aiming to nurture eco-minds, in otherwords, making employees think more about
environmental issues, and encouraging specialists
to study and implement new environmental
technologies. This education system can bedivided into two basic categories: group training
and onsite training.
As part of our special employee education system,group training focuses on educating internal
auditors for environmental management systems,
as well as educating planners and manufacturing
departments about eco-product development. In
terms of general education, in fiscal 2002 we
improved environmental awareness amongst
executive-level management staff. Further, as ofMarch 2003, approximately 5,000 employees haveparticipated in environmental education activities
via the Internet, with the aim of nurturing ecominds amongst our general employees.
Onsite education activities also target eco-mind
creation by strictly enforcing environmental
activities as well as resource and energy
conservation activities based on ISO14001
standards at each site. In addition, we teachemployees with certain job classifications thecorrect operation procedures and emergency drills
with regard to operations that have a notable
impact on the environment.

■Eco-management Structure
Senior Executive Committee Assesses and sets environmental management
for Environmental Policy policies at executive management level（annual）

President

Environmental Management Enforces environmental policies and develops
Operational Committee environmental information and activities（semi-annual）
Corporate Environmental
Policy Division

Environmental
Committee
Assesses environmental issues anddraws up policies（semi-annual）

Business groups

Production facilities

Group directors, CEOs,
environmental operation officers

Operations heads andenvironmental management
officers
Affiliated companies

Handles environmental management operations,educational activities, and information releases
Eco-products Committee
Promotes the development of eco-products andthe reductionofharmful substances used in products

Major affiliated companies

Production facilities

Presidents, environmental
operation officers

Operations heads andenvironmental management
officers
Affiliated companies

Eco-factories Committee
Reduces environmental impact caused
by production activities

Environmental Management Operational Committee meeting

Presidents andenvironmental management
officers

Eco-management
Committee

Based on the consolidated
accounts of approx. 1200 firms

Presidents andenvironmental management
officers
Environmental Conference（China: Shanghai）■Education System
Group training

Specialeducation

Introduced in FY2002
Auditing training
head auditing training
Eco-products development training

General employee Eco-mind education（via the Internet）
education

Education about environmental
management

Specialeducation（Training that meets ISO standards）
Training for employees withcertain job classifications
Onsite training
General employee
Onsite eco-mind creation

education

General employees

Administration

Executive
management level

Homepage for nurturing eco-minds（the section's top page and contents screens）

12

Eco-mind & Management

had achieved accreditation. By selecting 23
different overriding environmental research
topics, and evaluating multilateral environmental
impact from the initial stages of the research anddevelopment process, we are promoting
research and development conducted withconsideration for the environment.
Our business sites seek to make continual
improvements not just based on the results of
their own internal audits, carried out to assess
the effectiveness of environmental activities, butalso based on the periodic audit results ofaccredited auditors outside the Company. We
host seminars for environmental auditors to
improve the quality of internal audits, andapproximately 2,200 members of our staff havebeen registered as auditors at these seminars.
Furthermore, we have been carrying out
environmental and performance audits from amanagerial standpoint as part of our internal
audit system since 1973.

Environmental Management
SystemSeeking
continued
improvements
inenvironmental management and the reduction ofenvironmental risk, we have established anenvironmental management system based on
the international standard ISO14001. In
accordance with this, we promote continued
participation in all of our environmental activities.
In fiscal 1999, our entire manufacturing basehad received ISO14001 accreditation, and we
acquired accreditation at the operation bases ofall our non-manufacturing sites, such assoftware and services companies, during fiscal
2002.
Until now, the 6 research facilities affiliated with
Hitachi's Research & Development Headquarters
have been acquiring ISO14001 accreditation on
an individual basis, but in April 2003, all 6 sites■ISO14001 Certification Status
Domestic Companies
Overseas Companies
Total
Production Sites Non-production Sites Production Sites
No. ofCertified Sites

168

40

234

26

Japan
Hokkaido/Tohoku regions 15
Kanto/Koshinetsu regions 137
Hokuriku/Chubu regions
21
Kansai Region
15
Chugoku/Shikoku regions 20
Total
208

America 5■Integrated System for Environmental Management

Overseas companies

198
173

Number of sites

180
160
140
120
100

26

216

Domestic companies

Environmental operations

23

Environmental management
systems（EMS）

27

23

GREEN 21

132

Environmental accounting

17

208

89 8

80

150
39 1
6 3

38

1995

1996

171

Environmental Activities

193

Design for Environment（DfE）
Green procurement

115
81

Chemical substancemanagement
Energy saving

1997

1998

1999

2000

2001

2002

Waste reduction（Fiscal year）

Integrated environmental management system

Environmental
Management

234

240
220
200

0

In 1999, we introduced our integrated systemfor environmental management, which utilizes
Hitachi IT to expand the scope of ourenvironmental management (consolidated
system) and increase the range and quality of
our environmental activities. This systemallows us to not only conduct highly up-todate, efficient and reliable environmental
management and share information with other
Hitachi Group companies, but to also
disseminate accurate information about ourenvironmental activities. Further, ourintegrated environmental management system
is highly praised in industrial circles, and wenow sell it to other companies, giving it value
as a leading product in the environmental
solution business.

Asia 19■Trends in Acquiring ISO14001 Certification

60
40
20

Europe 2

Integrated System forEnvironmental Management

Environmental Management System Tools･ECO ASSIST*1（document management, etc.）･Environmental Performance Evaluation System
・Evaluation of environmental management indicators

Design Support Tools･Life Cycle Assessment（LCA）･Recyclability Evaluation Method（REM）･Green procurement（A Gree'Net*1）･Systems for recording eco-products and disseminating information･Environmental efficiency evaluations（products and transportation）

Factory Management Support Tools･Energy saving measurement（H-NET*1）･Industrial waste processing systems･CO2 emissions reduction
・Chemical substance management system（CEGNET*2）･Material balance management system（total volume of substances handled）■Environmental Audit System
Types of Environmental Audit
Environmental Policy Office audits（performance audits）

Frequency
Once every 3 years

Auditors
Auditors from Corporate
Environmental Policy Division

Content
Prevention of environmental problems
Environmental management from a managerial standpoint
Efficacy of environmental management systems at the departmental level

ISO14001
environmental
auditsInternal environmental audits

At least once a year

Auditors from the facility
to be audited

Once a year

Auditors from an accredited facility
other than the one to be audited

Compliance with laws and regulations
Establishment of independent environmental objectives and targets

Audits that meet
ISO14001 standards

Suitability as well as appropriate implementation and maintenance ofenvironmental management systems*1 ECO ASSIST, A Gree'Net and H-NET（Hitachi's power utility monitoring system）are trademarks of Hitachi, Ltd.
*2 For information on CEGNET, see P.23.

13

Eco-mind & Management

include ordinary expenditure items, such as R&D
costs and the cost of operating and managing
environmental conservation facilities. The
effectiveness of environmental activities isassessed both in terms of economic results（monetary
values）and quantitative results（based on the
degree of environmental impact reduction）.
Economic results are calculated on the results
obtained from available valid data. Quantitative
results are based on our fundamental principal ofcontribution to society through the developmentof superior technology and products, meaningthat these results are calculated according to thedegree of environmental impact reduction
achieved not only during product manufacturing,
but also during product usage. Furthermore,

Environmental Accounting
Hitachi is striving to help the public better
understand the Company's stance on
environmental activities through information
releases on the distribution of managed
resources, as well as releases concerning
environmental technology and eco-products. In
fiscal 1999, we introduced our first environmental
accounting system in order to promote efficiency
and continual improvements in the areas ofenvironmental investment and environmental
activities.
In addition to environmental activity-related plantand equipment investment figures, which wehave been announcing since fiscal 1997, costs

environmental impact reduction efficiency isassessed according to the amount of cost
reduction achieved for each environmental
impact item.
In fiscal 2002, our figures for both cost andeconomic effectiveness showed a slightdecrease. Breaking this down, we can see that
our R&D costs increased 11% compared with theprevious year, and as a result, the environmental
impact item reduction in energy consumption
during product usage, a quantitative results
indicator, improved by 34%. In the future, we willcontinue to promote social contribution activities
not just by reducing the direct environmental
impact from our operation sites, but also throughimproved products.

■Cost（domestic and overseas）
Item
1.Business area costs

Expenses

2.Upstream/downstream costs
3.Management activity costs
4.Research & development costs
5.Social activity costs
6.Environmental damage costs
Total expenditure（Unit: billion yen）

FY2000
35.96
3.58
8.35
30.03
3.23
0.93
82.08

Costs
FY2001
38.21
3.27
11.09
34.36
0.53
0.82
88.28

FY2002
35.00
2.400
10.41
38.21
0.52
0.86
87.40

21.25

18.01

14.97

Total investment

Overview
Maintenance of equipment with low environmental impact, depreciation, etc.
Green procurement expenses, recovery and recycling of products andpackaging, recycling expenses
Labor costs of environmental management, implementation and maintenance of an environmental managementsystem
R&D for the reduction of environmental loads caused by products and production processes, product design expenses
Environmental improvements such as afforestation and beautification, PR and publicity expenses

Environment-related measures, contributions and levies

Investment in energy-saving equipment and equipment that directly reduces environmental loads■Effect（domestic and overseas）
Economic EffectItem
Net income effectReduced expenses effectTotal

Physical Effect

FY2000
5.58
12.03
17.61
FY2000

Expenses
FY2001

FY2002169 million kWh
49,000 households
6,051 t20,000 households
844 million kWh
243,000 households

331 million kWh
95,000 households
7,369 t25,000 households
552 million kWh
159,000 households

189 million kWh
55,000 households
5,210 t18,000 households
742 million kWh
214,000 households

Item
1. Reduction in the amount of energy
used during production
2. Reduction in the final amount ofwaste disposal
3. Reduction in the amount of energy
consumed during product usage（Unit: billion yen）

Expenses
FY2001
5.09
13.56
18.65

Overview

FY2002
6.08
12.11
18.19

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

Overview
Decrease in amount of energy used due to installation of energy-saving equipment
Decrease in final waste output volumes due to separation and recycling activities
Decrease in energy requirements of Hitachi products■Efficiency of Environmental Impact Reduction（domestic and overseas）
FY200041 million kWh/billions of yen
1170 t/billions of yen

Reduction in energy used during production
Reduction in amount of waste for final disposal

FY200166 million kWh/billions of yen
1750 t/billions of yen

FY200253 million kWh/billions of yen
1200 t/billions of yen

Note1: Depreciation on capital investment and the resulting effect are calculated using a five-year flat rate formula.
Note2: Regarding the classification of items and economic effect･Net income effect: Effects for which there is real income, including the sale of valuables and environmental technology patent income.
･Expense reduction effect: Reduction in electricity fees and waste treatment expenses related to environmental impact reduction activities.
Note3: Efficiency of environmental load reduction is the amount of reduction in expenses per environmental load item.

■Cost Breakdown Ratio by Sector（domestic and overseas）
Information & Telecommunication Systems

13

12Power & Industrial Systems
36
Electronic Devices

Logistics, Services & Others

8High Functional Materials &Components 24
6■Investment Breakdown Ratio by Sector（domestic and overseas）

9

Electronic Devices
25
Power & Industrial Systems

18

Digital Media & Consumer Products （％）
7

High Functional Materials &Components 33
Logistics, Services & Others

Information &Telecommunication Systems（％）

Digital Media & Consumer Products

Information & Telecommunication Systems■Economic Effect Breakdown Ratio by Sector（domestic and overseas）

8

10

9

Digital Media & Consumer ProductsElectronic Devices
17

9

（％）

High Functional Materials & Components
54

Electronic Devices

1

Logistics, Services & Others■Investment Breakdown Ratio by Countermeasure（domestic and overseas）（％）
Prevention of Global Warming
34

8

Pollution Prevention
51

Other
7

Waste Reduction

14

N

Nature-Friendly Products& Eco-factories
Objects created by Nature are returned to the ecosystemonce they have served their purpose. In contrast, themajority of conventional man-made objects place a large
burden on the environment. Therefore, in the future, we
intend to follow Nature's example and develop productsthat tread lightly on the ecosystem not only during the
manufacturing process, but also during usage. We haveestablished strict independent standards, and our ecofactories are manufacturing eco-products while controlling
environmental impact.

Nature-Friendly Products & Eco-factories

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

Design for Environment
Assessment and Eco-products
Design for Environment（DfE）is an ideology
based on the principle of minimizing theenvironmental impact of a product over thecourse of its life cycle, from the selection of a
productﾕs component materials, to its
manufacture, distribution, use, recovery anddisassembly, and proper disposal. With this inmind, we have introduced the Design forEnvironment Assessment System, anassessment method applied to each productduring the development stage. Before a productcan be labeled as an eco-product, a productwith a superior environmental rating, it mustreceive a minimum rating of 2 points (out of a
total 5 points) for each assessment item, or a
total average of 3 points or more. A rating of 2
points indicates that the product has anenvironmental rating equal with conventional

products, while a rating of 3 points or moreindicates that the product features an improved
environmental rating. Based on this points
system, we rate each product according to ourassessment standards.
We provide environmental information about our
eco-products published in catalogs and on our
Web site in the form of an environmental data
sheet and environmental logo mark. As of
March 2003, we have developed 568 products,
including a total of 2,056 different model types,
classified as eco-products. In terms of sales,
these products account for 46% of our overallsales volume, and we are making efforts tofurther increase this figure.

Application of theEnvironmental Efficiency
and Factors Indicators
We introduced the Environmental Efficiency andFactors indicators to increase the efficiency ofenergy and resources used in the functions of our
products. Environmental Efficiency indicates thevalue of a product achieved through reductions inenvironmental impact and resource usage, and isevaluated by testing the function and life span of a
product. To help in evaluating the value of our
products, we have developed two efficiency
indicator items: the Prevention of Global Warming
Efficiency indicator item, which measures thevolume of greenhouse gas emissions throughout
the lifecycle of a product and the resulting
environmental impact, and the Resource Efficiency
indicator item, which measures the volume ofresources discarded as waste as a percentage ofthe new resources used to manufacture a product.
Factors measures the degree of improvement in
the environmental efficiency of a product based ona set of bases established using our leading
product for 1990, and provides an assessment of a
product's prevention of global warming andresource factors.

■Complete Life Cycle Product Design Ideology
Resource
conservation
Component
Materials

Production

Distribution

Usage

RecoveryandDisassembly

Expanding our range of eco-products（FY2003 target: 60%）

Design for Environment
Assessment System

Proper
DisposalReuse and Recycling■Design for Environment Assessment System Criteria■Eco-product Registration Trends
Total sales
comparison（％）

60
50
40

60

46

240 products and1,504 different model types

30

22

20
10
0

568 products and2,056 different model types

Actual value
Target value

30

15

3
2000

2001

2002

Prevention of
global warming efficiency ＝Resource
efficiency ＝Category

Life Cycle Stage

Assessment Criteria

Resource reduction

Selection of component materials,
production, distribution

Resource conservation, compactness, lightweight, conformity,high yield, standardization

Product longevity

Usage

Upgradability, ease of repair and maintenance, durability, reliability

Resource recycling

Reuse, distribution

Ease of disassembly

Disassembly

Ease of processing

Production, distribution, disassembly

Crumbling, fragmentation, disassembly and separation, ease of processing

Environmental safety

Selection of component materials,
production, distribution, usage,
disassembly, disposal

Potential toxicity, potential harmfulness, explosiveness,potential for implosion, potential hazard

Energy conservation

Usage, production

Energy conservation, longer durability, energy efficiency

Provision of information

Usage, disassembly

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

2003（Fiscal year）（Target year）■Definition of Environmental Efficiency
Product life span*1 x Product function
Volume of greenhouse gas emissions
throughout the lifecycle of a productProduct life span x Product function
Σ Each resource value coefficient x（Volume of new resources used
in a product's lifecycle*2 + Volume of resources discarded as waste*3）

Resource factor

*1
*2

＝

＝

●Washing machine
FactorProduct

Calculation Figure（based on the standard year）

Prevention of Global Warming Resources

Washing machine

5.0

2.3

Prevention of global warming efficiency
for the product being evaluatedPrevention of global warming efficiency
for reference productResource efficiency of the product being evaluatedResource efficiency of reference productProduct life span: The specified usage period for a product.
Volume of new resources used in a product's lifecycle: The volume of resources used to manufacture a
product ― the volume of resources reused or recycled.
*3 Volume of resources discarded as waste: The volume of resources used to manufacture a product― the volume of resources with the potential for reuse or recycling.

Reusability, conformity of component materials, use of recycled materials,
promotion of resource recycling, labeling of materials
Ease of disassembly, selection of component materials,
ease of sorting, labeling of materials■Calculation Examples for Environmental Efficiency and Factors Indicators■Definition of Factors
Prevention of
global warming factor

Products that meet or exceed
the standards set in accordancewith the Design for Environment
Assessment System areregistered as eco-products,
and we provide information
about these products throughan environmental data sheet
and environmental logo mark.

Item/ProductBaseYear of manufacture

1990

2002

KW-B483

NW-8BX

Model number
Product life span（specified usage period（years））

6

6

Productfunction

Washing capacity（kg）

4.5

8.0

Washing power

0.83

0.90

Volume of greenhouse effect gases discharged（kg/unit）

246

169

Prevention of Global Warming Efficiency

0.41

2.05

1

1

Volume of new resources used（kg）

102.7

152.3

Volume of resources discarded as waste（kg）

88.6

128.0

Resource Efficiency

0.53

1.23

Resource value coefficient
Washing machine（1990）
Model number: KW-B483

Washing machine withbuilt-in drier（2002）
Model number: NW-8BX

Evaluation

16

Nature-Friendly Products & Eco-factories

Examples of Eco-products
Information & Telecommunication Systems

Large Disk Array Sub System
Model number: SANRISE9900V

Platform software for electronic applications and inquiries
Product name: Appliporter

Plasma television
Model number: W37-PDH3000

・54% reduction in the amount of electricity consumed
by memory capacity（0.88 W/GB →0.39 W/GB）・Adoption of a steel plate that does not use
hexavalent chromium.
・Adoption of an electrodeposition coating that does
not use lead.

・Resource savings results（paper reduction）: 800 kg/year（200,000 sheets of
A4 paper/year）（Tree conversion results: Equivalent to approx. 17 trees/year）
・Energy savings results: 507 t/year（CO2 conversion）
・Transfer volume reduction for service beneficiary: 2 million people km/year
Note: Calculations are based on the assumption that Appliporter isintroduced as an electronic application system including main functionsat an independent organization with a workforce of 400,000 employees.

･Uses a non-halogen compound resin in the casing.
･Adoption of lead-free solder in print circuit board（in partof the AVC station and monitor）.
･17% reduction in electricity consumption（based on conventional Hitachi models）･Long life panel achieved through use of the ALIS method, whichplaces less impact on fluorescent substances than ordinary panels.

Electronic Devices

High Functional Materials & Components

Scanning electron microscope
Model number: S-4800

TFT Module for a 21.3 inch monitor
Model number: TX54D1*VC Series

Eco-green electrical cables
Model number: EM, NH Series

・32% reduction in power consumption achieved bycomprising of a turbo-molecular pump instead of an oil
diffusion pump and by removing one rotary pump.
・23% reduction in space achieved by small footprint design.

・20% reduction in power consumption achieved byadopting AS-IPS technology and optimizing theunit's drive capability
・Non-lead solder used in print circuit board construction.

・Totally abolished the use of chemical substancessuch as halogen and lead （RoHS-compliant
specifications）.
・Improved recyclability due to the standardization ofpolyethylene materials.

Energy back system
Integrated generator and hydraulic turbine

Shop and office use air-conditioning unit
Model name: Hitachi package air-conditioner（HI Inverter IVX）

Eco-rectifier for electric railroad substation
Model name: ECH Series・Achieves electricity generation by utilizing the unused
hydraulic energy*1 of office buildings, factories, etc.
・Realizes efficiency of 60% or more for the generation of electricity
across wide operating areas through an optimal operating
system that adapts to variable discharge and variable head.

・55% reduction in power consumption （comparedwith other fixed speed current units）
・32% reduction in product weight・Non-lead solder used in print circuit board construction.

・No use of global warming substances（coolant changed
from PFCs to pure water）.
・30% decrease in electrical energy loss, and 50%
reduction in the installation area required
・Not use a heater（may be used in cold climates）.

Refrigerator
Model number: R-KF40RPAM

PAM washing machine with built-in drier
Model number: NW-D8BX

Instantaneous hot water heat pump system
Model number: RHK-23RBAV・Natural fluid（HC）refrigerator.（Adopts R600a refrigerant
and cyclopentane as the insulation foaming agent.）
・An achievement rate of 160% for the 2004 energy-saving
standard through utilization of the PAM*2 system.
・Lead-free solders adopted for both print circuit boards andthe brazing joints on refrigerant pipes.
・Recycled plastic used for drain pan, print circuit board case, etc.

・Steel plating used in construction of body cabinet
includes no chromium compounds.
・Lead-free solder used in print circuit board.
・Recycled plastic used for base frame and external tub.
・Non-PVC materials used for bath water supply hose.
（Received JSME（the Japan Society of MechanicalEngineers）Medal for New Technology in 2002.）

・Adopts the PAM system.
Coefficient of performance（COP）during rating: 4.6
・Annual power consumption reduced to 1,302 kWh（annual CO2 emissions conversion value: 450 kg）.
・Lead-free solder used in print circuit board construction.
・Adopts the new HFC（R410A）refrigerant that does
not have any harmful effects on the ozone layer.

Power & Industrial Systems

Digital Media & Consumer Products*１Unused hydraulic energy: Energy from hot and cold water used in office building air-conditioning equipment and from cooling water used in factory equipment.
*2 Pulse Amplitude Modulation（PAM）: A high-powered, energy-saving system that alters motor revolution by controlling the voltage, making it more efficient than conventional inverter systems.

For more information about eco-products, visit the following Web site: http://greenweb.hitachi.co.jp/data/ecoproducts.html（only in Japanese）

17

Nature-Friendly Products & Eco-factories

Green Procurement
To create products that have a low
environmental impact it is essential to be able
to procure materials and components with
reduced environmental impact. Hitachi
distributes copies of its Green Procurement
Guidelines to suppliers, and requests that they
provide the Company with certain information
about themselves and their products via theInternet using Hitachi's green procurement
system "A Gree'Net." This includes information
regarding the environmental preservation
activities of the supplier, environmental impact
reduction details for the products being
procured (such as resource and energy
conservation, as well as recycling details),
together with information on chemical
substances used in products that are subject
to our independent management standards.
We share the information collected, and aredeveloping eco-products by effectively utilizing
this information in our design support andmaterials procurement systems. By March
2003, we had collected information regarding
the environmental preservation activities of our
suppliers for approximately 3,800 sites, andinformation regarding chemical substancesused in products for approximately 14,000
cases.
During the past fiscal year, we hosted theGreenProcurement Components Exhibition in
the Kansai, Ibaraki, Yokohama, and Tokyo
areas. Through the cooperation of our
suppliers, the exhibition displayed componentsthat reduce environmental impact, as well as
providing visitors with information about trends

in environment-related technologies. In
addition, we are proactive in the developmentof products that comply with the procurement
items specified in the Green Procurement
Law, and as of March 2003, we haveregistered the items procured for 561 products
throughout 11 different product areas.

To promote green purchasing, we havedeveloped Hitachi's Office Goods Catalog topromote the purchase of stationary and officesupplies with reduced environmental loads, andan electronic ordering system that reflects thecontents of our catalog. Our catalog andelectronic ordering system clearly display
product information, such as Hitachi's
environmental indicator mark for eco-products
or Green Purchasing Law compliance status.
Further, we practice closed-loop green
purchasing by purchasing recycled paper madefrom confidential documents collected fromoffices throughout the Hitachi Group. The paper
is made using a high security closed-loopsystem (developed by Hitachi Information
Systems, Ltd.), in which confidential documents
are turned into pulp. Once the original form of
the paper is no longer recognizable, the pulp issent to an external processor where it is reusedin its entirety. Presently, we have introduced
this system at 11 Hitachi Group sites, and every
month we reuse a variety of information sheets
and printouts to produce 100 tons
(approximately 25 million sheets of A4 copy
paper) of Hitachi recycled paper. This report isone way in which we utilize Hitachi recycled
paper.
In support of closed-loop green purchasing,
Hitachi recycled paper has been added to our
net-based purchasing system as a common
material and also as an indirect material thatcan be purchased by other participatingcompanies.

Chemical Substances Used in Products
During product manufacturing, we aim to use
only those chemical substances that are nonharmful to the environment. Therefore, we
promote the abolishment of lead solders usedin the printed circuit board connections ofconventional electrical and electronic devices.
With the goal of abolishing lead solders infiscal 2003, we are using our accumulated
know-how to develop and increase solder
technology. With regards to the heatresistance and connection reliability ofcomponents, we promote optimization ofsolder compositions (selection of thecompounds Sn-Ag-Cu*1 or Sn-Cu*2), as wellas providing the most suitable specifications
and operating conditions for equipment thathas been soldered, and developing inspection
standards for external appearance.
With regards to products that use HCFCs(hydrochlorofluorocarbons), we completed theswitchover for products such as water coolers
and ice machines before 1998, abolishing theuse of HCFCs in these products ahead ofschedule. By the end of 2003, we plan toabolish the use of HCFCs in all domesticallymanufactured products.

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

Hitachi Group

Green Purchasing

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

Internet: disclosure of environmental information and provision of environmental data sheets and Hitachiﾕs environmental indicator mark for eco-products
Consumer (Green Consumer)■Trends in Lead Consumption●domestic
（％）
100
100
80
60

46.4

40
21.9

20
0

17.7
0

1997

2000

2001

2002

2003（Fiscal year）（Target year）■Green Procurement System Homepage■Office Goods Catalog and Electronic Ordering System for Green Purchasing＊1 Sn-Ag-Cu compound: Alloy compound made from tin, silver, and copper. ＊2 Sn-Cu compound: Alloy compound made from tin and copper.

For further information about products that must be registered under the Green Procurement Law, visit the following Web site: http://greenweb.hitachi.co.jp/khoukoku/green.htm（only in Japanese）
For further information about the Green Procurement Guidelines, visit the following Web site: http://greenweb.hitachi.co.jp/en/pdf/pdf.html

18Nature-Friendly Products & Eco-factories

packaging waste and re-use in new products
through a system of rationalization, including
the regulation of excessive use.
In fiscal 2002, we achieved a 28% reduction in
the estimated volume of packaging forconsignment（based on FY1998 levels）.

Effective Utilization of Resources- Environmental Consideration
Through Recycling Recycling Rechargeable Batteries:
Small-sized rechargeable batteries, commonlyused in a variety of Hitachi Group products,
are made from scarce resources such as
nickel and cadmium, cobalt, and lead. Hitachi
is a member of the JBRC（Japan rechargeable
Battery Recycling Center）established by theBattery Association of Japan, and through its
registered recovery sites（50 sites）, is taking
positive steps in the recovery and re-use ofrechargeable batteries.
Recycling Packaging:
As part of our packaging recycling activities,
we promote the use of packaging that can be
repeatedly reused, as well as the reduction of

Increasing ProductTransportation Efficiency
In order to regulate carbon dioxide（CO2）,
nitrogen oxide（NOx）,and particulate matter（PM）
emissions from vehicles during producttransportation, we have created an efficient
distribution system. We are working to further
increase efficiency through the promotion of modal
shifts and collective distribution with othercompanies, and building a cooperativetransportation system. For example, Hitachi Home
& Life Solutions, Inc.（also known as Hitachi H&L）

＊3

■Commission Volumes for Containers and Packaging

60

19.4

2.5

40
20
0

Empty vehicle

78

77

72

59

16.4

18.9

15.3

15.4

14.1

12.9

12.2

47.3

44.9

44.2

2000

2001
2002
（Fiscal year）

Tokyo freightterminal station

12.2
52.2

30.9

1998

1999

■Transportation Impact Status●Domestic■Ratio of Low-emission Vehicles for the Total Number of Company-owned Vehicles●Overseas（Total transportation volume,ton・km） （Volume of CO2 emissions,kt） （Total transportation volume,ton・km）（×103）（Volume of CO2 emissions,kt）（×103）

3500

577

3000
2500

600

3500

600

500

3000

500

400

2000

332

346

500
2000

2001

2002

500

0

0

（Fiscal year）

200

1000

100

Total number of vehicles: 12,299
Diesel vehicles Low-emission vehicles
20％
27％

Gasoline vehicles
53％●Overseas

300

300
200

●Japan

400

1500

1000

0

2500
2000

1500

Utsunomiya freightterminal station

Distributors throughout Japan

25.9

Loaded freight vehicle

Wharf

80

■Example of Transportation System Improvements (modal shift for medium-distance transportation)■Paper production■Paper use■Plastic production■Plastic use

Hitachi H&L's Tochigi site（％） 100
100

and Hitachi Transport System, Ltd. conventionallytransported their products by truck between Tokyo
wharf and their respective operation sites in
Tochigi Prefecture. However, these twocompanies have joined forces to switch the modeof transport for half of these products to rail,
resulting in a monthly CO2 emissions reduction of
30 tons. Although the mode of transportation was
shifted, transportation by truck is still necessary
between distribution sites（Tokyo wharf andoperation sites in Tochigi Prefecture） and train
stations. Without dispatching special trucks,
Hitachi H&L and Hitachi Transport System, Ltd.
have achieved a modal shift for medium-distancetransportation of around 100 km, a previously
difficult uneconomical distance, by utilizing empty
vehicles after delivery as a kind of shuttle service
between distribution sites.
Further, we have developed the Transportation
Efficiency*1 and Transportation Factors*2
indicators, and are investigating their application
with regards to transportation activities.

100

16
2000

12
2001

16
2002

Total number of vehicles: 614
Gasoline vehicles
37％

Diesel vehicles Low-emission vehicles
25％
38％

0

（Fiscal year）

Volume of CO2 emissions from transportation
Note: Calculations are based on the transportation■Airplane Product transportation■Ship
methods as a ratio of the impact（the resulting impact from the time a productleaves the operation site to the time it is delivered to■Railtotal volume of■Trucktransportation
the customer）for each transportation method.

Notes
・Low-emission vehicles include electric, methanol, hybrid, CNG, LPG, fuelcell, and fuel-efficient vehicles (not applicable to overseas data).
・Data is for company-owned vehicles, including forklifts used for loading
goods (Japan: 4,758 vehicles, Overseas: 341 vehicles).

＊1 Transportation Efficiency: Transportation Efficiency = Transportation volume÷the volume of CO2 emissions resulting from transportation*3＊2 Transportation Factors: Transportation Factors = Transportation efficiency for the evaluation year÷Transportation efficiency for the base year
＊3 Commission Volumes for Containers and Packaging: The volume commissioned by Hitachi, Ltd. based on the Containers and Packaging Recycling Law.

19

Nature-Friendly Products & Eco-factories

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

strengthening the supervision for thoroughwaste segregation.
We not only recycle the waste we generate
during production, but are working to control
the very generation of waste itself byincreasing production line yields（efficiency）
and reducing packaging waste.

Hitachi's numerous production activities
produce a variety of waste and reusable
waste products. However, the operational
years of final disposal sites that treat
industrial waste are limited. With this in mind,
and in accordance with our policy of using
valuable resources in the most efficientmanner possible, we have establishedindependent targets for reducing our final
disposal volumes to 80% or less by fiscal
2005 and 70% or less by fiscal 2010（basedon 1998 levels）. We also promote resourcerecycling activities based on these targets.
In fiscal 2002, we reduced our final disposal
volumes by 59%, but this was due to thepromotion of activities, such as using sludge
as the base material for cement and plastic
building materials, resource-recycling using
intermediate processing remnants asanything from landfill to materials for building
roads via a process known as vitrification,and using waste paper as the base material
in insulation separation sheets that havebeen coated with a veneer.
We not only aim to reduce our final disposal
volumes, but hope to ultimately achieve zero
emissions. At Hitachi, zero emissions isdefined as an emissions volume of less than
1% of the final disposal rate of the current
fiscal year, or less than 5 tons/year, and weare participating in activities that will bring us
closer to this target. In fiscal 2002, 17 HitachiGroup sites achieved zero emissions. Sites
achieving zero emissions for the first time
implemented an extensive range of activities,
including the effective use of waste soilintermediate processing remnants as building
material for roads, and improving their crude
waste resource-recycling rate by reinforcing
waste storage facility inspections and■Trends in Final Disposal Volume Reduction■Flowchart for the Treatment of Waste and Reusable Waste Products●Domestic Trend in final disposal
volume reduction(kt)

700 100
85

500

79.3

97
86
82.0

Recycled volume
89
87
110.9

Reduced volume
Recycled volume
Final disposal volume
100 (%)●Domestic (unit: kt)

Final Disposal

Volume generated 642

Disposal without treatment 28
Recycling and Reuse

92

91

114.0
58.0

Primary recycling or reuse 197

Secondary Waste Disposal

Disposal with treatment 1680In-house waste treatment 161

Secondary recycling or reuse 287

70
64

59

Contracted waste treatment 256
50

300 407.0 435.0 444.8

455.0 484.2■Breakdown of Recycling Methods
Recycled volume: 484.0 kt
100
74.2

0

59.3 51.9
72.1 66.3 47.3 44.1

1998 1999 2000 2001 2002

Thermal recycling

Material recycling
69

（％）
Reuse
19

12

0
2005 2010 (Fiscal year)(Target year) (Target year)■Zero Emissions Sites■Breakdown of Final Disposal Volumes by Type
Slag
45

Mechanical Engineering Research Center*

Plastics
18●Electronic Devices
Hitachi Tohbu Semiconductor,Ltd. Tokyo Device Division
Hitachi Electronic Devices Sales Co., Ltd

DebrisSmut

Total volume: 44.0 kt●Research Institutes

Glass and ceramics

Sludge
6

5

Wood

4

2 2 2

（％）
Other
16

Paper

■Breakdown of Final Disposal Volumes by Sector Digital Media & Consumer Products
Information & Telecommunication Systems

Hitachi Hokkai Semiconductor, Ltd. Hakodate Works, Tsugaru Works
High Functional Materials & Components
71

Hitachi Yanai Semicon Co., Ltd
Hitachi High-Technologies Corporation Kasado Administrative Division

Power & Industrial Systems●Power & Industrial Systems
Kasado Administrative Division*
Hitachi Air Conditioning Systems Co., Ltd. Shimizu Works
Hitachi Via Mechanics, Ltd.

■Main Reuse Methods●Digital Media & Consumer Products

Paper

Material for recycled paper, RDFs

Digital Media Division／Tokai region* Mechatoronics Systems Division

Wood

Charcoal, RDFs

Hitachi Maxell,Ltd. Kyoto Works,Osaka Works,
Tsukuba Works, Ono Works

Plastics

Recycled for internal processing, RDFs, material for blast furnaces

SludgeBase material for cement●High Functional Materials & Components
Hitachi Chemical Filtec Inc.

Oil

Distilled and reused, used as fuel additives

Acid, alkali

Distilled and reused, used as neutralizing agents

Slag

Base material for iron, steel, and cement

Rawgarbage Compost

・Sites indicated with an asterisk (*) are Hitachi, Ltd. sites.
・Zero emissions is defined as an emissions volume of less than 1% of the
final disposal rate of the current fiscal year, or less than 5 tons/year.

18

Logistics, Services & Others

Material

5

（％）

3 21
Electronic
Devices

Reuse method

Strengthened supervision for thoroughwaste segregation at Hitachi, Ltd.'s

20Nature-Friendly Products & Eco-factories

Until now, we have promoted the introduction ofhighly efficient air-conditioning systems, motors,
and energy-saving equipment in accordance with
our Environmental Action Plan, which aims to
reduce production-related CO2 emission unit
requirements by 25%. Energy conservation
activities must be carried out in order to realize the
6% greenhouse effect gases reduction target set
for Japan in the Kyoto Protocol. We added new
CO2 emissions reduction targets to ourEnvironmental Action Plan. It is based on theoutline for the promotion of countermeasuresagainst global warming announced by thegovernment in March 2002. In accordance withthese new targets, we will strive to reduce CO2
emissions by 3% in fiscal 2005 and 7% in fiscal
2010（based on 1990 levels）.

Examples of Energy Conservation Measures①Introduction of a Group Management System
The energy conservation activities at Hitachi
Industrial Equipment Systems Co., Ltd.'s
Narashino operation site have always beenhighly praised in the past, and in fiscal 2002,
the site received the Minister of Economy,
Trade and Industry's award for factories making
an outstanding contribution to energy
management （Electricity Division）. Morespecifically, the prize was awarded for the site's
introduction of an air compressor groupmanagement system. This has enabled the site
to realize a highly energy-efficient method of
supplying air by combining its management
systems for each group of air compressors
within the site and inverters. By introducing thissystem as well as pump fan inverter
management and power monitoring systems,
Hitachi Industrial Equipment Systems has
reduced its annual CO2 emissions volume byapproximately 900 tons.

Energy Conservation Performance Results
Compared with 1990 levels, we had reduced ourCO2 emission per unit of production by 16% andour overall CO2 emissions volume by 9% by
fiscal 2002. These results were achieved from a■Trends in Production-related CO2 Emissions

Activity policy

Air-conditioning Install energy-efficient equipment, reduce airflow ofsystemair-conditioning, increase efficiency by regulating unit numbers(CO2 emissions, kt/year)(CO2 emissions per production unit, %)

100

100
85

3000

90
84

85

84

80
75

2500

80
70
60

2000
3196

2968

3052
2755

2914

3100

2972

40
30

1000

●Beforeimprovements

Product●Afterimprovements

Temperature
distribution
Product
90℃

Heat-treatment Reduce heat loss through improved insulation, reduce operation
furnaceloads by regulating the rotational frequency of blowers
Co-generation Increase overall efficiency by using a gas
systemturbine co-generation system
Boiler

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

Compressor

Increase efficiency by regulating unit numbers, correct exerted pressure

Motor

Switch to high-efficiency motors

Other

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

50
1500

■Product Temperature Distribution Using
High-frequency Heating■Main Energy Conservation Activities
Category●Domestic

3500②Introduction of a High-frequency Heating
MethodandHigh-speed
Processing
Technology
Hitachi's Systems for Town Development
Group realized energy conservation for elevator
guide rail processing at its Mito plant using
financial assistance from NEDO*1 and internal
activities for energy conservation solutions. The
plant adopted a method of surface heating
using high-frequency heating to replace its
conventional method of heating entire
components using an electric furnace, andsurface planing using a milling cutter to replaceline planing using a planer. Through theactualization of high-speed processing, theplant is able to minimize the amount of power
needed to operate equipment, resulting in anannual CO2 emissions volume reduction of
approximately 340 tons.
③Introduction of Optimal Conrol System forEnergy Saving
The Hitachi Research Laboratory achievedenergy conservation for its clean room in a joint
research project with NEDO and the Energy
Conservation Center, Japan. They developed asystem that realizes comprehensive energy
conservation for entire factories throughnetwork monitoring of a factory's numerous
devices, and implemented this system at the

reduction in the amount of energy consumed,
and we achieved this through the introduction ofenergy conservation equipment previously
implemented at our sites in addition tocomprehensive energy management.

Prevention of Global Warming- Energy Conservation

20℃
High-frequency
heating■Introduction of an Optimal Total-energy Saving System
Power monitoring system

20Internal LAN (Internet)

500
0

10

Central control room0
1990

1999 2000 2001 2002

2005 2010 (Fiscal year)（Target year）

CO2 emissions per unit of production（%）
CO2 emissions＊1: For the conversion unit of CO2 for power, we used
the user's end CO2 emission unit requirements publicizedby the Japanese Federation of Electric Power Companies.
The figures for fiscal 2002 were calculated byinterpolating the values for fiscal 1998 and fiscal 2010
with a straight line.

Monitoring examples for the status of individual compressors:- Electric current, electric oil temperature- Load pressure trend graph- Operating time

Optical fiber cable

Pressure
sensor

Site operation
panel

Pressure
sensor

Site operation
panel

Pressure
sensor

Site operation
panel

Pressure
sensor

Site operation
panel

Pressure
sensorInverter air compressor

Inverter air compressor

Screw air compressor

Screw air compressor

Inverter air compressor

Small motor line

Air conditioner motor line

Pump line

Medium-sized motor line

Inverter line

Group AGroup B

＊1 NEDO: New Energy and Industrial Technology Development Organization

21

Group control panel

Group CNature-Friendly Products & Eco-factories

Hitachi Research Laboratory clean room. As aresult, the amount of power consumed by air
conditioning equipment was reduced by 35% in
December 2002, and it is expected that thesystem will reduce the annual CO2 emissions
volume by approximately 440 tons.
④Provision of Centralized Monitoring and
Security Systems
Hitachi Maxell Ltd's Maxell Tokyo Building was
designed with the principal concept of energy
savings and integrated security system. The
system is featured by the presence detector
which switches off the room lights automaticallyto prevent the wastage of electricity when theroom lights are left on despite nobody stays in
the room. The building is also installed with anenergy management system controlled from acentral monitoring room and applied effective
use of natural lighting to this building
contributing to the reduction of electricity
consumption by 30 to 40％ for lighting
compared with the conventional building.

Hitachi Group System
for Reducing CO2 Emissions
With the aim of accelerating CO2 emissions
reduction activities, the Hitachi Group ispollution prevention devices, and the use ofalternative gases with lower global warming
coefficients*3.

internally trialing a new system for reducing
CO2 emissions. This system provides acomparison between the annual target
figures and actual results for the volume of
consumed energy at each site (electricity
and fuel) converted into CO2 to help
evaluate whether sites have achieved theirtarget emissions volumes. Based on theperformance data for fiscal 2001 CO2emissions volumes, we conducted a variety
of simulations, including the establishmentof a base year. In the future, we willcontinue these simulations based on our
performance results for fiscal 2002 in orderto promote the establishment of fair targets.

Imported Volume of
New Energies
Our imported volume of renewable energies
for fiscal 2002 was 11,737 kL（crude oil conversion）
for heat and 46,067 MWh for electricity, levels
equivalent with those for the previous year.
The volume of new energy consumption as an
expression of our total energy consumption
volume was 3% for heat and 1% for electricity.
Further, in support of our new energy creation
objectives, we commissioned the Japan
Natural Energy Company Ltd. to provide us
with wind power, and in fiscal 2002 received
Green Power Certification for 1 million kW ofannual wind power.

Reducing Greenhousegases
In fiscal 2002, our greenhouse effect gases
emissions volume was 3.62 million GWPt*1, alevel equivalent with that for the previous year.
This was due to the fact that although our CO2
emissions volume increased, we achieved
reductions using measures that include therecovery of the greenhouse effect gases
HFCs, PFCs, and SF6*2, the introduction of■Introduction of Optimal Energy Management Systems
Monitoring Service Center

Energy monitoring function

Energy analysis function■Implementation of Central
Monitoring and Security Systems

Optimum monitoring function for energy conservation

Internet
Ethernet
Compact high voltage
inverter without transformer

Micro scatter
controller
Clean room

High voltage motor

Cooling
tower

Coolant
Turbo
refrigeration unit

Cold
water

Cold
water
Cold water tank

■System for Reducing CO2 Emissions
Trial Implementation Example

Number of sites

Did notachieve target

Achieved target

30

Cold air■Emissions and Composition ofGreenhouse effect gases■Volume of Renewable Energies●Domestic●Domestic

PFCs
170,000 t SF6（5%）500,000 t

HFCs
30,000t（1%）

Others Gas co-generation
11.9％ 49.1%

Wind power 0.2％
Solar power 0.1％
ＲＤF

8.7％

(14%)

Greenhouse gases
emissions volume:
3.62 million GWPt

20
10

0
-25 or less

Pump

Cold
Air
water conditioning
unit

-20

-10

0

10

20

25 or more
Difference compared with target value （kt-CO2）

Simulation Conditions 1（Overall targets）

Simulation Conditions 2（Unit requirement targets）

CO2
2.92 million （80%）
tHeat : 11,737 kL（crude oil conversion）
ＲＤF＊4
39.0％
Ratio for the total volume ofheat energy: 3%

Electricity:
46,067 MWh
Gas co-generation
91.0％
Ratio for the total volume ofelectric energy: 1%＊1GWPt: Global Warming Potential（CO2 conversion, t）＊2 3 greenhouse effect gases: HFCs（Hydrofluorocarbons）, PFCs（Perfluorocarbons）, SF6（Sulfur hexafluoride）＊3 Global warming potential: A coefficient for measuring the effect of global warming caused by greenhouse effect gases and presented as a figure relative to the applicable results for CO2 emissions.
＊4 RDFs: Refuse-Derived Fuels

22

Nature-Friendly Products & Eco-factories

Chemical Substance Risk Management
To ensure the safe handling of chemical
substances and their reduced impact on theenvironment, chemical substances must be
managed comprehensively and efficiently. The
Hitachi Group is striving to implement
organizational structures and a variety of systems
for facilitating the Group's independent activities inaccordance with the laws and regulations
concerning chemical substance management. In
1998,
weadoptedCEGNET（Chemical
Environmental Global Network）, a comprehensive
management system for chemical substances thatallows us to keep track of them using a computerbased chemical substance database, which can beaccessed by all Hitachi Group companies. We arecontinually working to improve our chemical
substance risk management by promptly
conducting surveys on the trends in laws andregulations concerning chemical substances andchemical substance toxicity levels.

a target value of "0" for emissions of prohibited
substances to be achieved by fiscal 2005, and a
30% emissions reduction target for substances
specified for reduction（based on FY2000 levels）,
also to be achieved by fiscal 2005. In fiscal 2002,
we achieved a 29% reduction（based on FY2000
levels） in the total emissions volume for
substances specified for reduction by introducing
devices that reduce the atmospheric emissions
volumes for organic solvents, such as toluene. In
the future, we will continue to promote emissions
reductions through a variety of measures, including
reducing our consumption amounts for chemical
substances, shifting to alternative substances, andrecovering substances that require management.
With regard to the water quality of rivers, we haveestablished our own independent standards thatare far stricter than the values set by laws andregulations, and are carrying out operations withthe aim of preserving water quality and achieving"chemical-free" wastewater discharge.

Reducing the Environmental
Impact of Chemical Substances

Preliminary Inspection System for
New Chemical Substances

As part of the activities we conduct to lessen our
impact on the environment by reducing emissionsof chemical substances into the atmosphere,
waterways, and soil, we independently manage theemission and transfer volumes for 1,400 chemical
substances according to their classifications of"abolish," "reduce," and "manage." We haveestablished our own independent targets, including

When introducing a chemical substance for the firsttime, we firstly obtain information about the laws
and regulations regarding the substance and its
toxicity levels, and then pass this information onto
our Special Committee for Chemical Substances,
who evaluates the pros and cons involved with theintroduction of the substance. In addition, we havedeveloped a system for managing chemical■Outline of Hitachi's Chemical
Substance Risk Management■Trends in Emissions for"Substances Specified for Reduction"●Domestic

Management inaccordance with laws
and regulations
Reduction ofPreliminary inspection
environmental
system for new chemical
impactsubstances（kt/year）

15

10

Risk management
and systems forchemical substances

Education regarding
the handling ofchemical substances

0

Our lifestyles are closely linked to the naturalenvironment through its soil and undergroundwaterways. The Hitachi Group has implemented amanagement system that prevents the leakage ofchemical substances in order to protect soil andunderground waterways from the pollution ofharmful substances. In particular, this includes
replacing underground plumbing, pits, and tankswith facilities above ground level, and conducting
thorough checks of these facilities. For
underground tanks that are yet to be replaced withabove-ground facilities, we implement leakage
prevention measures and perform detailed testingon the inside of tanks for items other than thosespecified by law, such as ultrasonic wave tests andcorrosion countermeasures.
In February 2003, the Soil Contamination
Countermeasure Law was enacted. As it has done
up until now, the Hitachi Group will continue to
implement prompt countermeasures at sites wherecontamination has been detected by conducting
surveys of soil and underground waterways inaccordance with the law.

■Management of Underground Plumbing, Pits, & Tanks

Emissions for "substances specified for reduction" (excluding PRTR Law class 1 substances)
Emissions for "substances specified for reduction" (PRTR Law class 1 substances)

4.9

71
3.9

5

Preventing Contamination of
Soil and Underground Waterways

100

CEGNET
SystemPromotion of countermeasuresin response to emergencies,
such as when leakage occurs

substances so that we do not carelessly introduce
or use harmful chemical substances whose usage
is restricted by laws and regulations. This system
begins with our departments involved withdesigning, manufacturing, and purchasing at eachsite, and extends to include our external clients.

70

3.6
11.6

8.7

2000
(Base year)

6.9

6.1

2001

2002

9.5

2003
2005 (Fiscal year)(Target year)(Target year)

Note 1: Total emissions volumes include emissions that are
directly discharged into the atmosphere and public
waterways as well as emissions eventually discharged into
the environment through waste, etc.

Inspecting for corrosion in
an underground water tank

■Hitachi's Voluntary Substance Management System（1,400 substances）
High-pressure
gasesGreenhouseeffect gases

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

Hazardous
substances

Substances that require management (1030): styrene monomer, ethanolamine, etc.

Substances covered
under the PRTR law
Substances subject tothe occupational
health and safety law

23

Substances subject tothe chemical substances
examination law

Substances subject
to air andwater pollution laws

Substances specified for reduction (270): methylene chloride, lead, etc.

Poisonous anddeleterious
substances●High-pressure gases: "The High-pressure Gas Safety Law" ●Hazardous materials: "Fire Defense Law" ●Healthand safety law: "Occupational Health and Safety Law" ●Chemical substances examination law: "Law Concerning
Examination and Regulation of Manufacture and Handling of Chemical Substances" ●Clean water law: "Water
Pollution Control Law" ●Clean air law: "Air Pollution Control Law" ●Poisonous and deleterious substances:"Poisonous and Deleterious Substances Control Law" ●Ozone depleting substances: "The Law Concerning theProtection of the Ozone Layer throug ●the Control of Specified Substances and other Measures"（The Ozone
Layer Protection Law）●Greenhouse gases: "Law Concerning the Promotion of the Measures to Cope with Global
Warming"Nature-Friendly Products & Eco-factories

substance. In addition, we have developed asystem for managing chemical substances so that
we do not carelessly introduce or use harmful
chemical substances whose usage is restricted bylaws and regulations. This system begins with ourdepartments
involvedwithdesigning,
manufacturing, and purchasing at each site, andextends to include our external clients.

category of "Volume Discharged + Volume
Transferred" （a coverage rate of approximately
97% for the overall volume）.
Compared with the previous year, our handlingvolumes increased due to an increase inproduction volume. However, our volumes for
substances discharged and transferred decreasedslightly due to the implementation of reduction
measures. Further, in accordance with the PRTR
Law, we notified the designated independent
organizations of Hitachi Group sites where
substances were removed through emissions into
the atmosphere and public waterways, or as
waste, as well as being transferred throughsewerage systems.
In the initial year of implementation（FY2001）, we
notified the designated organizations aboutchemical substances used at 127 of our sites,
accounting for an emissions volume of
approximately 6,900 tons and a transfer volume of
approximately 3,400 tons. In the future, we will
strive to reduce our environmental impact, while
conducting fair management practices andreporting to the correct authorities.

Survey Results for Substances
Covered Under the PRTR Law
We declared all substances with an annual
handling volume of 10 kg or more, regardless of theminimum handling volumes specified forcompulsory reporting in the PRTR Law（The Law
Concerning Reporting, etc. of Releases to theEnvironment of Specific Chemical Substances andPromoting Improvements in Their Management）,
enacted in April 2001. In fiscal 2002, out of a totalof 354 target substance groups, we used
substances from 126 of these, and from this wereported our usage for 25 substance groups in the

Storage of Devices That Use PCBs
In accordance with a special domestic law that
promotes the correct processing of polychlorinatedbiphenyl waste, which came into effect in July
2001, it became mandatory for corporations tostrengthen their storage management practices
and dispose of all PCBs over the next 15 years.
At Hitachi, we use the correct storage management
practices for PCBs, including special locking
devices and identification plates to guard against
mishandling, as well as bulwarks and storageboxes to prevent leakage in the unlikely event thatthese devices become damaged or corrode. We
are also continuing our investigations into correct
disposal procedures.
In the past, some of the transformers andcondensers we manufactured contained PCB
insulating oils. In response to this, we have posted
alternative storage methods specific to eachaffected device on our Internet Web site.

■Survey Results for Substances Covered Under the PRTR Law for Japan
Chemical Substance

Substance
No.*1

Volume Handled

Volume Discharged
Volume Transferred（Atmosphere, Waterways） （Waste, Sewerage System）（Unit: tons/year）

Volume Discharged +Volume Transferred

Volume Consumed（Including Volume Treated and Recycled）

FY2001

FY2002

FY2001

FY2002

FY2001

FY2002

FY2001

FY2002

FY2001

FY2002

Toluene227

30,58830,970

4,584

4,425

1,689

1,789

6,273

6,214

24,31524,756

Xylene

63

4,951

4,784

800

841

199

221

1,000

1,062

3,952

3,722

Ethylene glycol monoethyl ether

45

1,424

1,348

552

638

29

29

581

667

843

681

Styrene177

48,643

46,914

156

118

228

156

384

274

48,25946,640Ethyl Benzene

40

1,693

1,707

110

138

60

80

170

218

1,523

1,489

N,N-dimethylformamide

172

708

1,116

126

119

7

16

133

135

575

980

Phenol

266

4,971

5,749

17

13

103

119

120

133

4,851

5,617

Ethylenediaminetetraacetic acid

47

227

212

8

10

120

121

128

131

99

81

Chrome and trivalent chrome compounds

68

14,30917,607

26

38

190

78

216

115

14,093

17,491Manganese and its compounds

311

3,299

2,615

16

39

128

75

144

113

3,155

2,501

Dichloromethane

145

268

325

97

93

17

18

113

111

155

213

Lead and its compounds

230

51,18351,064

5

0

160

99

165

100

51,01850,9642-ethoxyethyl acetate

101

125

160

38

74

2

19

40

94

85

66

Copper water-soluble salts (excluding complex salt)

207

10,755

9,683

2

2

94

90

96

92

578

9,591

Boron and its compounds

304

290

210

2

44

40

14

42

58

248

152

Hydrogen fluoride and its water-soluble salts 283

400

1,027

456

192

26

76

30

268

56

759

Linear alkylbenzene sulphonate（LAS）and its salts*2

24

49

51

5

4

33

39

38

43

11

8

Formaldehyde

310

3,446

4,654

26

17

24

25

49

42

3,397

4,612

Bisphenol-A epoxy resin（liquid）*3

30

1,602

1,730

15

6

55

35

70

41

1,532

1,689

Antimony and its compounds

25

611

804

0

0

42

39

43

39

569

765

Tetrahydromethylphthalic anhydride

202

3,928

4,868

3

1

36

38

40

39

3,888

4,829

Ethylene glycol

43

1,320

1,558

16

1

89

38

105

39

1,215

1,519

Di（2-ethylhexyl）phthalate

272

3,006

3,261

12

5

40

33

52

38

2,954

3,223

Soluble zinc compounds

1

202

138

0

0

46

31

46

32

155

106

Methyl methacrylate

320

1,291

3,633

12

15

11

17

23

31

1,268

3,602

Others（101 substances）

43,17838,988

182

130

185

155

368

284

42,81038,703

Total（126 substances）

233,093234,604

7,003

6,796

3,702

3,405

10,705

10,201

212,308

224,403＊1: The first number in the PRTR Law list of substances.
＊2: Limited to alkyl-based substances with carbon numbers from 10 to 14, or mixtures thereof.
＊3: Formal nomenclature: 4,4 −isopropylidenediphenol and 1-chloro-2,3-epoxypropane polycondensation (limited to liquids)

24

W

Worldwide Stakeholder
Collaboration
As one company, it is limited how much we can do tocreate a recycle-oriented sustainable society. However,
we can increase our power to make a difference by
networking with our customers, suppliers, local citizens,and other stakeholders. We provide information about ourenvironmental activities and listen to the opinions of our
stakeholders.

Throughthissystemofmutualcommunication, we are joining forces to increase the scaleof our activities, from the individual to the regional and on
to the global level

Worldwide Stakeholder Collaboration

Environmental Communication
We will continue to increase communication with stakeholders by disseminating
information through our Environmental Sustainability Report and Web site andconducting environmental town meetings.

Information Disclosure

Eco-Products 2002

We
have
been
publishing
ourEnvironmental Sustainability Report since1998. In 2002, we distributed 23,000 copiesof the Japanese version of our report, and
3,000 copies of the English version. In
addition, we constantly update theinformation provided on our Web site toreflect the most recent information available
on eco-products, and over 3 million people
access the site annually. Further, we promote
information disclosure by all Hitachi Group
companies and sites through the publicationof reports concerning their own individual
environmental activities, and displaying thisinformation on our Web site.
In 2002, the Hitachi Group's environmental
activities homepage received the Auditor'sSpecial Award in the corporate category,
Environmental goo Grand Prize which isCommendation System for Environmental
Information Released on Hitachi's Homepage

At the Eco-Products 2002*1 exhibition, basedon the theme Eco-movements - Creating a
Partnership Between Hitachi and the Environment,
our display allowed visitors to discuss with
our staff and experience Hitachi's devices,
services,andlatestenvironmental
technology for realizing eco-lifestyles.

Poster Contest
Hitachi invited applications for a poster thatconveys the message, consideration for our
precious earth, in an appeal to raise publicawareness about ways in which we can benefit
the environment. The number of entries exceeded
last year's figure to reach a total of 156 entries
from all across Japan. The final round of judging
was conducted by a variety of important figures,
including external intellectuals and the head of
Hitachi's Corporate Environmental Policy Division,and they declared one winning entry for the●Number of Times Hitachi'sHomepage Was Accessed

（

350

）

250

The hitachi green web
homepage251

Established ourenvironmental Web site

100
50
0

78
1999

2000

Introduced our corporate environmental
activities to students while on a school
excursion to Hitachi

2001

2002（Fiscal year）

Nov.
14.2002

Environmental management debatewith students from Sophia University
Topic introduced through research on
our Environmental Sustainability ReportDec.
19.2002

Hosei University 1st Senior High School
Sent a lecturer from the Japan Atomic
Energy Relations Organization

Jan.
14.2003

Department of Commercial Science,
Keio Gijuku University
Contribution lecture from the Economic
PR Centre Sent a lecturer to talk about
the social value of corporations

Mar.
4.2003

Nishi Junior High School, Mino Kamo
City, Gifu Prefecture
Sent a lecturer from the Japan Atomic
Energy Relations Organization●Environmental Reports Published by Site
Published on behalf of individual companies and company groups
Published by designated sites

Students learn about environmental education
activities at schools in Japan, and we often
receive requests to help out with school
excursions, university lectures, and in theclassrooms of local elementary schools. By
conducting these activities, we are broadening
our area of communication with the public byinteracting with students as we introduce
environmental issues and how we tackle thesethrough our corporate activities. Further, every
summer holidays we conduct a science seminarat our research facility. The seminar lasts thewhole day, and stimulates participants to think
more about science through a tour of theresearch facility and hands-on sessions.

Date School & Interaction Activity
Jun.
Third-year students from Tsunuga Junior
29.2002 High School, Tsuruga City, Fukui Prefecture

333

211

200
150

Increased detailed data about
environmental impact andinformation about eco-products

Disclosed information
about eco-products

300

Dispatching Lecturers to Schools■Principal Schools Whose Students We Interacted With

■Information Disclosure
Unit:
10 thousand cases

Award for Excellence, two winning entries for the
Honorary Award, and five for the Original Idea
Award. The cover of our Environmental
Management Sustainability Report was createdfrom the winning entries in our poster contest.

FY2001
12
4●Information Disclosure Via the Internet by Site
FY2001
Published on behalf of individual companies and company groups
27
Published by designated sites
5

FY200219
6

Nishi Junior High School, Mino Kamo City, Gifu Prefecture
Sent a lecturer from the Japan Atomic Energy Relations Organization

Interacting with Nishi Junior High School students
from Mino Kamo City in Gifu Prefecture

FY200241
4■Eco-Products 2002
Scene from a science seminar conductedat the Hitachi Research Laboratory*1 Eco-Products 2002 was sponsored by the Japan Environmental Management Association for Industry and Nihon
Keizai Shimbun, Inc., and held at Tokyo Big Site over a three-day period from December 5 to 7. The aim of theexhibition is to introduce the public to all kinds of eco-products（products and services that have a lessened impact on
the natural environment）, from regular consumer products to industrial materials.

For details on information disclosure by site, visit the following Web site:
http://greenweb.hitachi.co.jp/data/w̲communication.html
The Hitachi Group booth

Ballot corner forenvironmentally efficient products

For details on Eco-Products 2002, visit the following Web site:
http://greenweb.hitachi.co.jp/ecoproducts/eco-pro2002/index.htm

26

Worldwide Stakeholder Collaboration

Environmental Town Meetings
We have been conducting environmental
town meetings together with our stakeholders
since fiscal 2001. These meetings not only
providestakeholders
with
a
full
understanding of our environmental activities,
but also provide us with feedback regarding
the public's perception of Hitachi Groupbusiness activities from an environmental
perspective. Environmental town meetings
are part of our efforts at establishing afundamental bilateral communication systemwith our stakeholders.
Out of the 112 people who kindly submitted
answers to the questionnaire provided with
our Environmental Sustainability Report in
fiscal 2002, 12 people out of those who
indicated that they would like the chance toattend a future environmental town meeting
participated in the fiscal 2002 meeting
conducted in March. With participants ranging
from specialists, such as environmental
consultants and members from environmental
NPOs, to university students who read theirfirst environmental report in class, we wereable to hear opinions on Hitachi's activities

from a diverse range of perspectives. The
proposals put forward at the meeting,including those of participants, were debatedupon, and we intend to investigate the ideas
raised for implementation in future activities.

Communication with Investors
Recently, there is a lot of activity in the area of SRI（Socially Responsible Investment）,or investment
based on an evaluation of a corporation's
environmental and social value.
In fiscal 2002, the Hitachi Group was subject tonine audits by investment auditors. Currently, theDow Jones Sustainability Indexes（DJSI）, usedby financial institutions in a variety of countries toestablish investment trust products, are attracting
a considerable amount of attention. Dow Jones in
America and the Swiss SAM Sustainability Group
have been announcing these indexes annually
since 1999, in which enterprises expected torealize sustainable growth in their economic,
environmental, and social activities are selected
and publicized.
In fiscal 2002, approximately 2,500

businesses all over the world were audited,
and from these, 310 businesses that received
an evaluation in the top 10% of their divisionwere announced as the structural businesses
that form the index. The Hitachi Group wasselected for the second consecutive year in
the High Technology Industries division. In the
future, we will work towards improving ourmarket value by pursuing sustainability,
improving our environmental and social value,
and avoiding activities that involve risk.

●Comments on Hitachi's Environmental Sustainability Report（with opinions at the top and responses on the bottom）
If your report is aimed at students and thegeneral public, you need to create adocument that is easier to understand.
Hitachi's report uses too many nonJapanese words. How about developing areport more along the lines of NHK's news
program for children.
Thank you for your insightful idea.
Environmental reports that are easy tounderstand certainly arouse more interest in
those who read them, and we will try to createa report like this in the future. In addition, we
will examine the distribution routes for ourcompleted reports.

Hitachi could further increase its sense of
reliability by writing about activities thathave a negative impact on the environmentand outlining possible countermeasures. I
think that providing more detailed
explanations in your report, including thesecountermeasures, will increase the public's
trust in Hitachi.
We already disclose the results for items suchas administrative guidance, and external
complaints. However, we will consider
creating a report that further increases ourtrustworthiness.

●Comments on Nature-friendly Products ●About Administration Methods for Future Environmental Town Meetings
Why not widen the distribution area for yourreport so that more members of the generalpublic have the opportunity to read it? You
could utilize any number of methods, such as
giving reports to the children of employees,
setting up a location for guided tours andhanding out reports then, distributing reports
to citizens who gather at Hitachi's
environmental facilities or forests, or having
them distributed to customers who purchase
Hitachi products from retail outlets. However,as not everyone will want to read the report,
forcing it onto everyone would have the effectof wasting resources.
We will give your idea careful consideration.

27

To show that Hitachi is actually conducting
LCA for products, you should provide
information, such as what 3 points stands forin the 5-point rating system and concrete
product examples, and make thisinformation more obvious.
Becausebusinessconditions
vary
considerably, we implement Design forEnvironment assessments based on LCA foreach Hitachi product. As we are constantly
selling new products, we provide someconcrete examples of products on ourInternet homepage, but we will include more
examples of products in our next
environmental report from the perspective ofenvironmental consideration.

How about dividing the meeting time in half
and asking for the good and bad points forboth Hitachi's Environmental Sustainability
Report and environmental activities
separately? You could even ask meeting
participants to assign points for various
items with 100 points being the top score,
and then ask them to give their reasons foreach score.
We will concentrate on making improvements
along the lines of your idea to create a more
efficient method for exchanging opinions.

Besides conducting these meetings at
Hitachi's head office, I think it would also be
effective to combine these meetings withtours of your recycling centers andfactories.
In the future, we plan to expand
communication activities for each of ourregions and sites.

Worldwide Stakeholder Collaboration

Opinions on Hitachi's Environmental
Sustainability Report

Third Party Opinion on Hitachi's Environmental
Sustainability Report 2003

We received 112 responses to the questionnaire we included in the

After viewing our environmental sustainability report in its final stage before printing:2002 Environmental Sustainability Report.The results are as follows:
Appraisal Points
・Because the report included Hitachi's visions for the future, it is easy toenvisage where the Company is headed.

Ms. Kimie Tsunoda

・The layout was easy to understand, and the concise text easy to read.

Member Organizing Committee

・It is good to see that Hitachi is improving communication with its stakeholders
by hosting environmental town meetings, etc.
・The report was concise and easy to understand.
Main Requests
・The report should include more information about Hitachi's products.
・ I would like Hitachi to include information on how it was able to achieveenvironmental improvements and cost reductions, and provide explanations
regarding the basis for its performance data definitions.
・ Hitachi needs to explain its standards for product assessments and
GREEN 21.
・The report could be improved by including the data for each of theCompany's sites.
Points Reflected in This Report・Introduction of environmental information contained in our products catalog
and examples of our environmentally friendly products in this report, as wellas on our Web site.
・Inclusion of actual improvement examples, discussions about troublesome
areas, results evaluations for performance data, and explanations of definitions.
・Publication of evaluation standards for GREEN 21 Version 2.
・Provision of information about the environmental reports published byindividual sites and our homepage.
Ms. Kimie Tsunoda works in the field of corporate environmental information disclosure,and she has evaluated our environmental report yet again this year, kindly noting her
opinions along the way. Based on Ms. Tsunoda's valuable comments, we will work towards
improving our environmental preservation activities and information disclosure throughmedia such as future environmental reports.

Valdez SocietyFirstly, some words of praise. I felt that by changing the name in Japaneseto the Environmental Management Sustainability Report, Hitachi isexpressing its desire to use environmental reports as a tool for managing
environmental activities throughout the entire Hitachi Group. Upgrading
GREEN 21 to a new version is evidence of the steady progress Hitachi ismaking in environmental management. Further, it is rare for companies inthe electrical manufacturing industry to account for the substances theyhandle and consume at overseas sites. In addition, the disclosure of
improvements based on readers' opinions and especially performance
results and targets for environmentally friendly products sales ratios is an
important indicator for measuring a company's success with regards todisclosure in this area of business, and one that Hitachi can be proud of.
On the other hand, Hitachi needs to make improvements in a few areas.
For instance, most of the performance results contained in the report arefor domestic results only, preventing the report from having a strong global
standing. Hitachi needs to include items, such as the performance results
evaluations and visions for management level staff that include
environmental accounting as well as the progress status and evaluations
for management performance. Further, sustainable business models fallunder the heading of Hitachi's Environmental Vision, but there seems to
be a gap between Hitachi's goals and the social expectations aroused by
the word sustainable. I would like to see Hitachi create a report thatoutlines not just the Company's environmental business activities, but also
the Company's shift to the provision of services and its awareness thatsocial responsibilities extend beyond mere compliance. Lastly, I felt
Hitachi should touch upon the fact that it is a corporation with a structurethat guarantees reliable accounts of its figures and results.

■Survey Results for Opinions on Hitachi's 2002 Environmental Sustainability Report（Total responses: 112, Period of response: 1 June 2002 to 31 March 2003）●Impression of the report:
Very good19%

Bad 1%

Good
53%●Impressionable topic

Average18%

Not very good 8%

Other
23%

No response 1%

Nature-friendly
Products &Eco-factories 13%

Data summary 10%

Action planning &assessment 10%●Readers perspective
Research or
educational establishment
32%

Environmental NPO 8%

Customer27%

Eco-mind & management 6%
Worldwide stakeholder
EcoValue Plan 6%
collaboration 9%

Environmental
Vision 8%

Business models 8%

GREEN 21 7%●Where reader learned of our report

Supplier 4%

Other
25%

Employee or family 4%

Newspaper
38%

Magazine
14%

Other
31%

Hitachi's Web site 12%

Exhibition 2%

No response 1%

Seminars 2%

28

Worldwide Stakeholder Collaboration

Comments on Sustainable Business Models
for the Future
Dr. Norman Myers made third party comments regarding the HitachiGroup's Environmental Vision in the Environmental Sustainability Report
2002, and this year Hitachi requested his opinions and advise regarding
environmental management and sustainable business models.
Views on Environmental Management and Sustainable Business Models by Dr. Norman Myers
Now is the time when Hitachi
should be revising its opinion on
the value of natural capital andpromoting sustainable businessmodels.
Capital includes items such as financial affairs,social infrastructure, human resources, andnatural resources. With regards to financial
affairs, business has always been conductedusing accrued interest, but at the same time,
because no value has been placed on nature
resources up until now, companies have been
living off natural capital. In reality, natural
resources have an actual value of 36 trillion
dollars according to the estimates of someexperts; larger even than the global economy. In
fact, water shortages are being experienced incountries such as China, India and Brazil,
resulting in disputes. This problem can besolved through more efficient usage of irrigation
technology in agriculture, and is a potential
business chance for Hitachi.
The introduction of sustainable business models
is already occurring at a number of advanced
corporations. Shifting corporate activities awayfrom the provision of products towards selling
functions and services for products has theability to reform social structures that have alarge impact on the environment, while
cultivating new customer bases that crave
stylish lifestyles. In China and India, where
consumption occurs on a large scale, the impact
on the environment is steadily increasing. For
this reason, it is essential that corporations movetowards the provision of environmentally-friendly
products and sustainable business models.

●Comments on the Hitachi Group's
Environmental Activities- It is important for a corporation to have a longterm creative vision or dream for the future. In
this respect, Hitachi's Environmental Vision
deserves praise.
- I commend Hitachi's way of dealing withenvironmental and economic activities incollaboration with each other rather thantreating them as rival areas, a move not often
seen in corporate activities. Until now, theeras of the former Bush administration in
America and the Thatcher administration in
Britain have dealt with environmental andeconomic activities from an unstable
perspective. Nevertheless, as environmental
pollution increases, we experience outbreaksof new diseases, and people are beginning to
see that what is detrimental to theenvironment is also detrimental to economies,
as it places pressure on economic funds
through the provision of medical expenses.
Accordingly, in order to achieve better
managerial efficiency, the Hitachi Groupneeds to continue its collaborative approachto environmental and economic activities.
- Hitachi needs to move away from its
conventional approach of environmental
preservation and protection to an approach ofenvironmental improvement and restoration.
- The Hitachi Group is going to great lengths toensure that all 340,000 of its employees adopt
its Environmental Vision, but I think all theGroup can really do is display its enthusiasm
as it continues explanations on how its vision
can be achieved.
- I commend the Company's adoption of
scenario planning. However, things that could
not have been predicted before are occurring
now. Hitachi needs to cultivate its skills ofprediction while taking into account theelement of surprise, and review its activities
as necessary.
- Corporations are actually communication
giants that, for example, create the people's
need to watch television by selling television
sets. I hope Hitachi can realize its idealistic
shift from the sale of products to the provisionof services.

Dr. Norman Myers

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

Providing consultancy services to a variety of
research organizations and development agencies
such as the U.S. National Academy of Sciences,
Soviet Academy of Sciences, World Resources
Institute, the White House, U.S. Departments ofState, Defence and Energy, World Bank, United
Nations agencies, OECD, NASA, European
Commission, Shell and McKinsey, and theRockefeller and Ford Foundations.
Dr. N. Myers is the recipient of many prizes,
including the UNEP Environment Prize and the2001 Blue Planet Prize.

A lecture given by Dr. Myersat Hitachi in October 2002.

Hitachi's Response to These Comments and Future Approach- While steadily implementing activities inaccordance with our Environmental Vision,
we will make every effort possible to utilize
natural capital the interest gained from.
- In April 2003, we introduced theEnvironmental Efficiency and Factors
indicators to improve the efficient use ofenergy and resources, including productfunctions, and are currently trialing theirapplication. In the future, we plan to further
expand the application of these indicators to29

a wider range of products.
- We are developing business activities basedon a sustainable business model that departfrom the conventional notion of corporations
as creators of products to one ofcorporations that minimize their impact on
the environment.
- We are further strengthening employee
education by introducing measures such as
fostering eco-minds via the Internet.
- We intend to review our scenario planning sothat it complements our Environmental
Vision.
- As promised in our new mid-term
management plan, "i.e. HITACHI Plan ," weare shifting our business activities awayfrom the sale of products to the provision ofservices, with an emphasis on solution
businesses for supporting businessactivities in a new era, and global productsthat utilize advanced technology.

Worldwide Stakeholder Collaboration

Employee Relations（Personnel Affairs）
We have implemented Hitachi Value; a set of standards outlining a codeof behavior and list of shared values for all of our employees. Whileendeavoring to improve the environmental awareness of our employees,
we have introduced a variety of personnel systems in the hope of creating
a vibrant workplace that will inspire our diversely talented employees tocontinually set themselves challenges.
Developing a Shared
Sense of Values ThroughHitachi ValueIn November 1999, we introduced Hitachi
Value - a set of standards detailing the values
and behavioral conduct we would like our
employees for share - as part of a move tohelp us realize our basic stance onmanagement as stated in the Hitachi
Management Vision. By releasing thesestandards groupwide, we are endeavoring to
improve the environmental awareness of
employees throughout the Hitachi Group.
Hitachi Value documents the conduct we
expect from our employees, in particular, thetype of behavior and attitudes we expect fromour leaders. The standard outlines ten
separate items specifically related to
employees, including "customer satisfaction,""reliability," "speed," and "challenges andreforms," and details the conduct required toachieve positive results in each of these areas.
Since fiscal 2000, we have been utilizing apersonnel rating system to evaluate whether
the code of conduct in Hitachi Value is being
carried out in the workplace, an activity initiallydirected at managerial staff. By doing this, weare measuring the degree of improvement inenvironmental awareness. Ultimately, we aim
to establish a system where the concepts of
merit and performance form the basis of ouremployee management practices.

Nurturing Self-assertive
TalentWe believe it is important to nurture talented
employees to be self-assertive, or behave insuch a way that their individual strengths andvalues are enhanced through individual
responsibility. Hitachi implements a variety of
personnel and education measures to help
foster greatly talented employees.

●Career Development Training
Hitachi's Career Development Training targets
young employees, and was introduced in 2002
aiming for 1,000 employees to attend theprogram on an annual basis.
Training is conducted over a two-day
workshop, where employees are advised on
career planning to help them discover theirstrengths and values so that they can achieve
the future image they envisage for themselves
based on a deeper understanding of the
career they want. Through this type of training,
our employees can decide what challenges
they want to pursue, their work goals, and thetype of life they want to live. In this way,
Hitachi is striving to nurture talented
employees that can measure personal
achievements and growth through their work.
｡●360 Comprehensive Feedback Program
Aimed at managerial staff in positions
equivalent to or above section managers（approx.
｡
10,000 staff）, Hitachi implemented its 360
Comprehensive Feedback Program from fiscal
2003 to develop the abilities of staff with theaim of improving their leadership andmanagement capabilities. The program
involves collecting responses to a variety ofquestions concerning the characteristics of 80
specific behavioral conducts from the staff
member concerned, their superiors,colleagues and subordinates.
The anonymity of respondents is maintained
throughout the process, and the staff member
is directly informed of the response results byan internal supervisor at an appointed training
session. These training sessions give our staff
the chance to examine their own strengths
and weaknesses as well as brush up theirleadership and management skills byimplementing their own personally-designed
ability development plan.
●Internal Subscription and FA Systems
In addition to the internal subscription system
Hitachi has offered up until now, we introduced
an internal FA system from fiscal 2003 that■A New Evaluation System and Business Planfor Hitachi's Management Vision
Management Vision

Business
Plan

Organization Individual
Targets

Targets

Achievement
Results

Evaluation of
Hitachi Valuestandards

Evaluation ofindividual
results

Reflected in Hitachi's
employee management systems

Hitachi ValueBusiness
performanceallows employees to make direct requests for
personnel reshuffling at desired operationsites. Through the implementation of thissystem, Hitachi is further increasing thefreedom of its staff to choose the area in which
they want to work. As a result, not only is
Hitachi able to relocate employees in aposition of their choice to support a steadystream of autonomous talent, but is also able
to work towards improving employee moraleand nurturing the spirit of challenge whilerevitalizing personnel.

Utilizing Diversified Talent
We value the different abilities and ideas of
our workers, and in support of this announced
our Gender Free & Family Friendly Plan（F. F.
Plan）both internally and outside the company
in March 2000. We respect people asindividuals and are endeavoring to employ
talented staff without gender discrimination,
while providing a flexible （family friendly）
working environment where employees areable to work as professionals and still spend
time with their families. In the past, we haveintroduced a variety of systems related tochild-rearing and home care, including ourleave of absence, shorter office hours, andwork from home systems.
In addition to this, we have developed anormalization policy under which we are
actively increasing the number of positions
available to handicapped persons as part ofour employment promotion activities. The
establishment in October 1999 of Hitachi You
and I, a special subsidiary that only employs
mentally disabled persons, is part of our planfor promoting further employment ofhandicapped persons.

Company Profile for Hitachi You and I
The principal business activities of Hitachi You and I are cleaning Hitachi's
Yokohama and Kawasaki offices and delivering documents. The Company
employs 43 people, of which 29 are mentally disabled persons. The name
"You and I" was founded with the cooperation of Hitachi, Ltd. employees andthe Company's mentally disabled workers, and originated from a wish to
support each other and strive together. In terms of actual business operations,while experienced full-time workers are employed as advisors, the Company's
mentally disabled employees are given tasks compatible with their individual
capabilities and offered full support with regard to both work and company
matters under a special system devised by Hitachi.

30

Worldwide Stakeholder Collaboration

Employee Relations（Health and Safety）
Hitachi's health and safety activities place the highest priority on
maintaining the health and safety of our employees, and we aremaking efforts not just to maintain, but also to further improve ourhigh safety and sanitation levels.

Applying Our Knowledge
About Health and Safety toManagerial Activities
Hitachi, Ltd. makes good use of its knowledge
regarding health and safety issues acquired
over many years of promoting accidentprevention activities, including the areas ofhealth and safety management, education,equipment, and the creation of safe work
environments. In addition to passing thisknowledge on so that it may benefit others, wehave introduced our Occupational Health and
Safety Management System as support for oursystematic health and safety activities in a
desire to not just maintain, but further improve
our already high safety and sanitation levels.

Supporting Improved
Employee Health

Employee Assistance
Program（EAP）

As a fundamental rule in health management
activities for individuals, Hitachi promotes theconcept that "you are responsible for your own
health," and provides guidance and support forthe creation of independent health programs
for all employees. More specifically, Hitachi istaking positive steps to improve the health of
employees by working in conjunction with staff
trained in industrial health issues, providing
employees with access to health counseling,
specialist support, educational activities, and a
support page on the Internet.

■Basic Policy for Occupational Health and Safety

In addition to strengthening mental healthcare, EAP was implemented in March 2003 asa means of revitalizing employees exposed toan extensive range of challenging environments, and realizing good communication in
the workplace. EAP assists employees insolving their various worries and concerns
about the workplace, their careers, and life ingeneral.
In addition to the positive establishment of asystem that enables employees to meet andtalk with an internal EAP expert at theirrespective site, Hitachi is striving to revitalize
employees and improve their organizational
capacity through round the clock consultation（over the telephone or Internet）.

■Occupational Accident Rate（per 1 million hours）
2.5

Basic Policy
While respecting human life and acting in accordance with the law, we arestrengthening our platform of continued growth into the 21st Century as a corporation
overflowing with vitality through health and safety activities based on the following
universal standard evaluations.
1. Construct a systematic safety management system, and urge managers to set
examples for others.
2. Make genuine safety improvements to equipment and production processes.
3. Enhance safety awareness, and establish a workplace with good communication
by improving safety education levels.
4. Ensure the physical and mental health of our employees and create acomfortable workplace.
5. Reinforce health and safety management at branch offices and production sites.
6. Strictly enforce countermeasures for dangerous management practices（promotedisaster prevention activities against earthquakes, fire, and explosions）.

2.0

All industries

1.5

Manufacturing industry

1.0Electrical-related

0.5

Hitachi, Ltd.

0.0

'92

'93

'94

'95

'96

'97

'98

'99

'00

'01

Note: The above rates for the categories All industries, Manufacturing industry, and Electrical-related areapplicable for cases where operations were forced to shut down for 4 days or more. The above rate given for
Hitachi, Ltd. is applicable for cases where operations were forced to shut down for 1 day or more.

■Outline of EAP■Occupational Health and Safety Action System
Health and safety knowledge

Regional
healthcare
centerIndustrial doctor
fromhealthcare
center

Health and
Safety Office

EAP consultation
Interview
Employees seeking
consultation
After-care service

Statistical data
MSDS data
Health support system

Register of
information

Register of
information※1 EAP：Employee Assistance Program

31

Production site
executive management

Workplacemanagement staff
Employees

Organization analysis
Consultation regarding
solving problems
in the workplace

Generalemployees
Administrative
superintendentlevel staff
Managerial
level staff

Education Training Lectures

Application of
information

Head office

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

Support in solving
individual problems

Business groups andproduction sites

Application of
information

Sponsor/administrator

Company-wide Health and
Safety ResearchPresentation Committee
Hitachi Industrial
Insurance ResearchCommittee

Introduction to an appropriatebody（internally or outside
the Company）

Introduction of Occupational
Health and Safety
Management System

Worldwide Stakeholder Collaboration

Compliance with Laws & Regulations
In addition to the continued promotion of fundamentals and virtues
throughout the Hitachi Group, we are striving to improve our businessprocesses and undertake reforms to eradicate actions that are unjust.

Establishment ofa Special Department
In February 2002, we established Compliance
Headquarters, an organization under the directcontrol of Hitachi's president. The
headquarters monitors conformance with the
Hitachi Standards for Corporate Activities andimprovements in education, audit, andbusiness processes to ensure that all HitachiGroup companies operate in compliance withthe laws regarding tenders for public business（criminal laws that forbid the obstruction of
public tenders, bribery, and monopolization）.
In September 2002, a government officeinspection of tests carried out by Tokyo
Electric Power Company（TEPCO）revealed
that a member of the Hitachi Group acted
inappropriately when testing the overall rate ofleakage for the reactor's core shrouds at No. 1
Fukushima Plant, formerly commissioned to
Hitachi, Ltd. for management by TEPCO. Thisact dealt a heavy blow to public trust in nuclear
energy, which should place the highest
possible priority on trust and safty, and caused
a considerable deal of anxiety among the
public starting with the residents living in thearea. This type of incident is unacceptablefrom manufacturers involved in operations thathave a large social impact like nuclear energy.
We are deeply sorry and offer our sincere
apology.
To involve all of the companies in the HitachiGroup and ensure that this kind of incident
does not recur, we reshuffled our organization

so that responsibilities can be clearly identified,and introduced the Compliance with Rules andRegulations Report System in October 2002.
We implemented the system to seek out
inappropriate handling methods and acts thatrun contrary to social justice in business
operations by guaranteeing lawful practices
through the provision of information from
reporters and informants. In this way, Hitachi
is acting to correct deeds of wrongdoing that
occur within its organization.

Administrative Guidance inEnvironmental Matters &Responses to External Complaints
In fiscal 2002, the Hitachi Group was notrecorded as paying any fines, but did receive
administrative guidance in 8 separate instances.
These included an excessive amount of
nitrogen and phosphorus found in wastewaterdraining into public waterways, and an
excessive odor concentration discovered along
a site boundary. We have implemented
measures to ensure that these incidents do notrecur, such as countermeasures at the sourceof occurrence. In the former case, this involves
conducting proper maintenance checks on thedecontamination device that was the cause of
the initial problem, and in the latter case,involved altering the damper on the exhaust gas
treatment device and reinforcement of periodic
checks.
In November 2002, Hitachi received anadministrative report stating that the industrial
waste we had entrusted to a treatment plant inFukushima Prefecture about 10 years earlier
had not been treated, despite having received awritten manifesto stating the opposite. At therequest of the administrative body, Hitachi
contributed a monetary donation to help rectify
the problem.
In addition to the above cases, we received 13
external complaints in on issues where ourlevels were not found to exceed those set byrules and regulations. 5 complaints were madein relation to offensive odors, 6 in relation tonoise, and 2 in relation to waste. With regard to
the complaints about offensive odors, we
explained that we would reinforce our checks
on deodorization devices that spray an odor
removal agent when an odor is released during
working hours, as well as implement additional
equipment. In response to the complaints aboutindustrial noise, we explained that we would
implement countermeasures such assuspending the use of the sirens and otherdevices that had received complaints, silence
usage during certain hours, or implementsoundproof walls at the source. Finally, we
received word from local residents that wastefrom Hitachi had been disposed ofinappropriately, but upon inspection it became
clear that the waste did not originate from
Hitachi. However, as a precautionary measure,
we tried to impress upon our employees theimportance of moral values and provided
feedback about this to our customers, who werein agreement with our countermeasures.

Customer Relations
We are working to realize management practices that focus from theview point of its customers to become a best solution partner they
can trust.
Improving Customer Satisfaction
The factors（concerns）influencing customer
satisfaction do not stop with the performanceand cost of a product, but go on to include theentire management process of corporations the advantages and disadvantages of acorporation's services（such as consulting andmaintenance services）and its corporate
image shaped through the handling of social
contribution and environmental preservation
activities. In response to this, the HitachiGroup is working to realize management

practices from the viewpoint of its
customers.The Hitachi Customer Satisfaction
Improvement Committee, composed ofmanagerial level staff from the president down,holds periodic meetings to devise ways ofworking in conjunction with the Hitachi Group's
various business areas while simultaneously
supporting activities in each of these areas.
The Committee has adopted the approach
outlined by the Japan Quality Award（JQA）*1
as a concrete measure for promoting
innovation in business operations.

Products and Services &Customer Safety
We have devised and enacted our Safety
Indicators and Guidelines in CorrespondenceWith the PL Law（a law outlining a corporation's
accountability for manufactured goods）in orderto protect the health and safety of thecustomers who use our products and services.
Further, we have established a customer
support service and conduct activities under the
motto, the customer comes first.

*1 The Japan Quality Award（JQA）promotes total management from the perspective of the customer as a means of measuring the qualitative shift in internationally competitive management structures. It is also an
important part of the management quality improvement program that supports the actualization of successfull organization innovation for performance excellence in order to continue creating new value throughimprovement of overall organizational effectiveness and capabilities.

32

Worldwide Stakeholder Collaboration

Social Contribution Activities
In order to become an energetic corporation that can continue togrow into the 21st Century, it is essential that Hitachi share its values
with people throughout the regions of the world, and build strong tiesof trust through continued social contribution activities.

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

Basic Philosophy of Hitachi's
Social Contribution Activities

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

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

All of the companies belonging to the HitachiGroup and six of its foundations have cometogether working to fulfill our social
responsibilities, and in adopting the social
contribution activities each of the individualorganizations participates in. However, these
are not viewed as mere charity activities, but
as corporate activities that are important in
helping to make Hitachi into an brand value.
Together, all of the members of the HitachiGroup are carrying out social contribution
activities towards the building of a better
society.
Hitachi employees are striving for "individual
fulfillment" by taking part in social contribution
activities, such as volunteer activities. Thesetypes of activities not only help to build a better
society, but produce corporate vitality on alarge scale.

Volunteer Activity Support
Hitachi supports creation of a workplaceenvironment where employees are free toparticipate in volunteer activities as often or as
little as they like. In addition, we support thevolunteer activities carried out by each of ouremployees in the form of information, time,and capital.

■Basic Philosophy of Hitachi's Social Contribution Activities
Hitachi Group social
contribution activities
Hitachi Group
employees●Volunteer activities, etc.

Individual
fulfillment

Stakeholders

Local society

Building a better society

Clients

Stockholders

Foundations●Positive activities asfoundations of the HitachiGroup●Active dissemination of
information

Increasing
the brand value:

Customers

Each Hitachi Group
company●Actively implement social
contributions to enhance ourbrand value●Supports its employees
volunteer activities●Social contributions to carryout social responsibilities
such as providing aid to
disaster victims

Implementation ofbusiness activities
with increased
enthusiasm andflexible ideas

Working on translated picture books that are
to be sent to children in Asia at a Hitachi
Volunteer Seminar where "education" was the theme

Cleaning the beach at a Hitachi Volunteer
Seminar where "the environment" was the theme33Worldwide Stakeholder Collaboration

In terms of information, we manage a bulletinboard on our intranet and homepage thatprovides information about volunteer activities
and allows employees to exchange opinions
about volunteer work. We also conduct Hitachi
Volunteer Seminars to give employees the
chance to experience volunteer work first
hand. In terms of time, we have developed a
special annual paid leave system so ouremployees can participate in volunteer
activities. And, under the management of
Hitachi's volunteer support program, we
provide financial support to non-profit-making
organizations for projects in which our
employees are carrying out volunteer
activities.

Activity Examples●Green Award for Social Contribution
We established the Green Award for Social
Contribution to support and promote activities
that contribute to society and the global
environment,
andrecognize
worthycontributions in these areas.
Grand Prize 2001: Hitachi Instruments Service
Co., Ltd.
- Support for environmental education inelementary and junior high schools Based on a desire to offer the next
generation's young people the chance tobecome interested in the mysteries of natureand marvels of science and technology,
Hitachi Instruments Service Co., Ltd. utilized
their own technology, know-how, andequipment to conduct a hands-on learning
program for the fourth-year students at
Hanazono Elementary School in Shinjuku
ward. The one-year program was carried out
over seven sessions, and even now, Hitachi
Instruments Service Co., Ltd. continues tosupport a variety of education programs.
Award for Excellence 2001: Hitachi Cable
Ltd.'s Tsuchiura Plant- Asaza planting campaign All employees at the plant were involved innurturing asaza plants （nymphoides peltata,known as "floating hearts"）from seed, whichwere then planted at Kasumigaura to support
the restoration of the ecosystem. This activity
was part of the Asaza Project conducted by
the NPO, The Asaza Fund.
Hitachi Computer Products （Asia） Corp. in
the Philippines implemented the Hitachi
Outreach Program in cooperation of BISIGCATA, a River Rehabilitation and Protection
Foundation, to plant a total of 90 seedlings
along Barangay main road.
●Social Welfare Equipment Support Program
The Hitachi Group manufactures and sells avariety of equipment used in social welfare
activities, and implemented the Social Welfare
Equipment Support Program with the aim ofcontributing to society by supporting userneeds in a way that is not possible from apurely business perspective.
In fiscal 2002, Hitachi developed the "Heart
Communicator," a device that allows sufferersof ALS （amyotrophic lateral sclerosis） tocommunicate their feelings. Further, in
addition to donating 10 Heart Communicators（complete with support software installed on
Hitachi computers）to the Japan ALS Society,a private organization that uses these devices
for positive results, Hitachi sent financial
assistance and volunteers to help with the（Heart Communicator）operation short course
designed by the Society.
●Foundation Activities
We have established a total of six domestic
and international foundations, which conductsocial contribution activities. The Hitachi
Environment Foundation's Environment Award
recognizes the extraordinary results ofindividuals, corporations, and organizations in
the areas of research, development, andinvestigation into possible sustainable systems
with reduced environmental loads. The
Foundation also provides grants toenvironment NPOs to study how to creat
harmonization between environment andeconomy, and between environment andscience ／ technology related activities, andpublishes its own journal, "Environmental
Research."○The Hitachi Group's Six Foundations

Hitachi Instruments Service Co., Ltd.: supporting
environmental education in elementaryand junior high schools

Hitachi Computer Products（Asia）Corp.:
tree-planting activities

Hitachi Cable Ltd.'s Tsuchiura Plant:
Asaza planting campaign

Supporting the Japan ALS Society's operation
short course for Hitachi Heart Communicators

The Odaira Memorial Hitachi
Education Foundation
The Kurata Memorial Hitachi Scienceand Technology Foundation
The Hitachi Scholarship Foundation
The Hitachi Environment Foundation
The Hitachi Mirai Foundation
The Hitachi Foundation（America）

Presentation ceremony for the Hitachi
Environment Foundation's Environment Award

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

34

S

Sustainable Business Models
In the future, we intend not only to create new products
and services for people, but also to create new businesses
that will benefit the environment. We are currently
focusing our efforts on creating "sustainable businessmodels" that will serve as the basis for creating a recycleoriented society. While looking to the future, we aredeveloping business practices that help preserve theenvironment,

includingenvironmental

researchandenvironmental support services for customers based on
this research.

Sustainable Business Models

Constructing Business Models−Product Take-back and Recycling
Based on the principle of "Extended Producer Responsibility," Hitachi isconstructing a recycling system that effectively utilizes the resources
recovered from used products.
Household Recycling
In response to the electric Home Appliance
Recycling Law, Hitachi Home & Life Solutions,Inc.（established in April 2002, after a split andmerger within the Company's Home ApplianceGroup）established a new subsidiary, Kanto
Eco Recycle Co., Ltd. in May 1999, to handle
recycling operations for four main categories
of used household electrical appliances.
The new plant is located at Hitachi Home &Life Solution's Tochigi site, a base fordeveloping, designing, and manufacturing
household appliances such as refrigerators
and air conditioners. By feeding backinformation on recycling processing obtained
from the production facility to productdesigners, this new company is helping todesign products that are easier to recycle,
reduce the environmental impact of products
throughout their life cycle, and increase theamount of reusable materials used to
manufacture future products.
A portion of the plastic recovered by the plantis reprocessed by crushing, washing, andwringing it, and then applying ahomogenization process at the Neo Material
Center （established in February 2001 tohandle waste plastic material recycling）. Afterall this, the plastic is reused in the frameworkof household appliances such as washerdryers.

PC Recycling
Under revisions made to the Effective Use of
Resources Promotion Law in April 2001,
computers were classified as "products forrecycling." This made it mandatory for
manufacturers and importers to recover andrecycle all computers employed throughout
their business operations once they are nolonger needed. Until this time, ourmanufacturers and importers had beenreferring customers to industrial waste
treatment services in response to theirrequests for disposal. However, in accordancewith this new law, and in order to promote thesmoother recovery of resources, we havejoined hands with IBM Japan, Ltd. to build a■Number of Household Electrical Appliances
Recycled and Product Recycling Ratio
Category
Number ofappliances
recycled（units）
Recycling rate（%）

new national recovery system. We have also
been approved as a designated waste
processor for a wide range of industrial wastematerials. This has enabled us to improve ourservices, in particular the publication andmanagement of manifests （industrial waste
management forms） on behalf of ourcustomers. Furthermore, we have establishedan Internet service for handling everythingfrom waste management price inquiries andapplications, to the confirmation of recycling
processes.
With regard to household PCs that are nolonger needed, the recovery of theseappliances is expected to become mandatory
in the latter part of this year, and we aredeveloping a recovery and recycling systemthat will support this.

■PC Take-back Results（FY2002）

Air
FiscalWashing
year conditioners Televisions Refrigerators machines

Category

2001

172,564

330,298

360,827

376,852

2002

207,447

375,906

412,864484,549

Number of computers
take-back（units）

2001

79

78

61

57

2002

80

81

62

61

Desktop
computers

CRT
displays

10,115

8,288

Notebook Liquid crystal
computers monitors
2,577

93

■Household Electrical Appliance Recycling（at a recycle-oriented plant built within a production site） ■PC Recycling System
HitachiManagement Center

Sales
outletSales
outletFeedback of information
on recycling processing to
product designers
Hitachi Home
& Life Solutions
Inc.

ProperdisposalComponent
manufacturers

Hitachi Home & Life Solution's Tochigi site（a plant for designing and manufacturing household appliancessuch as refrigerators and air conditioners）

Hitachi
Recycling Hotline

HitachiRe-useCenterHitachimanagement
Processors
Distributor

Request toprocess
Services provided
computersby theHitachi Group
Reception of（PC and non-PC information
related）

Collection Center(Jointly used by
IBM Japan, Ltd.)
PCs only

Processors（Use）

CustomerWebapplication

Business customers

DesignateddealerInternet

Flow of goods
Flow of information

Goods otherTransfer than PCs
Intermediate processing/of goods
final disposal

For more information about household electrical appliance recycling, visit the following Web site:
http://kadenfan.hitachi.co.jp/kankyo/recycle/index.html（only in Japanese）
For more information about PC recycling, visit the following Web site:
http://www.hitachi.co.jp/Prod/comp/OSD/pc/flora/environment/recycle.htm（only in Japanese）

36

Sustainable Business Models

Offering Total Environmental Solutions
Hitachi utilizes a wide range of tools, such as results and technologies
accumulated through activities in a variety of environment-related areas,
to provide customer support for environmental management, especiallyin regard to waste, energy, air, and water solutions and services.

Bifacial Solar Celland Module
As a countermeasure to global warming andresource depletion, it is prospected that theamount of solar power will increase. Hitachi
has developed new concept of solar power
generation with bifacial solar cell verticallyinstalled to the ground. The bifacial cell
produces energy on both sides. The
semiconductor manufacturing process isapplied to that of the solar cell. The basematerial of the bifacial cell is single crystalline
P-type silicon substrate of which backsurface boron is diffused. Hitachi pioneers
mass production of bifacial solar cell in theworld. Regardless of the direction in whichthese cells are installed, the annual amountof power generated is roughly the same, andthe yearly generation energy is as much as
1.3 to 1.5 times larger than that of monofacial cell. Further, both sides feature a
protective glass covering, and as a result of
this double-glass structure, the module has
longer life than any other module with monofacials. The bifacial module having previllage
of direction free installation, it is expectedthat the bifacial module is widely applied toroof top, fence and noise barrier along withthe highway or the railway. The bifacial

module is expected to realize large-scale
power generation especially in the country
with small land to use as Japan, it iswelcomed to applied to farm and agricultural
as well as in airport and seaport.

eliminate the need for recharging required byconventional rechargeable batteries, enabling
extended use through fuel replenishment.

Wind Power Project

Direct Methanol Fuel Cells
Hitachi promotes the development of fuel cells
that are capable of producing a more efficientenergy source than that generated byconventional fossil fuels. Because direct
methanol fuel cells （DMFCs） use methanol
and water as fuel to provide a direct source ofpower, they are a highly effective powersource. We support the development of
DMFCs as a power source for mobile devices,such as notebook computers and portable
information terminals that demand a compact
and lightweight design, and using catalysts
and electrolyte membranes as the materials
for the main structure, have manufactured acell with increased output and better efficiency.
Through the application of fuel cells, not only is
it possible to achieve energy savings andcontrol CO2 emissions, but it is also possible to

We are promoting the introduction of wind
power as one of the renewable energies
covered under the Law Concerning Special
Measures for Promotion of the Use of New
Energy, enacted in April 2003.
Hitachi Engineering & Services Co., Ltd. offersa total solution for wind power generation,from introduction planning for wind power
generators to construction and maintenanceservices. They are also developing a hybrid
power generation system that combines avariety of power sources to achieve optimum
results, such as combinations of wind, solar
and water power. In addition, Hitachi
Engineering & Services has erected two 600
kW wind power generators in Noshiro City,
Akita Prefecture, and has begun wind power
generation. With the aim of supplying 3.2
million kWh of wind power annually, they
began selling power to a power company inDecember 2002.

■Trial Device for Portable
Direct Methanol Fuel Cells■Bifacial solar modules

Testing out solar power generation in the form of a rooftop fence
on a building located in Hitachi works■Structure of Bifacial solar cell■Wind Power Generation

Random pyramid construction
Emitter contact
Sillicon oxide layer
Layer

P-type silicon
LayerSillicon oxide layer
Collector contact
Two 600 kW wind power generators erected
at the Noshiro Ochiai Wind Power Plant.

37

Sustainable Business Models

System. By further, to install the steam
turbines a flexible Heat and Power supply
system is established to suit the requirementsfrom the plant's utilities（electricity and steam）
to match the climate and production planning,
resulting in more efficient production.
Through the introduction of energy-conservation
measures such as these, it is expected that the
Oyama plant's total volume of energy consumption
is expected to decrease approximately 9.3%.

ESCO
To provide our customers with a comprehensive
service for energy savings, we are developing
ESCO （Energy Service Companies）, an
initiative that is attracting attention as aneffective means of preventing global warming.
In October 2002, Komatsu Ltd. Oyama plant
adopted an ESCO service developed by
Hitachi to enable energy savings throughdisplacement air conditioning and utilization
system of exhaust gas from gas turbines geneset. The ESCO introduced energy-saving
equipment at no cost to the customer, applying
a shared savings contract according to which
the energy saving effects obtained by the new
equipment are shared between the ESCO andcooperating company. At Hitachi, in addition to
installing energy-saving equipments at the
production sites of our business partners, we
provide a complete range of services, such as
guarantee of energy saving values and postinstallation maintenance, services.
At Komatsu Ltd. Oyama plant, introduction of adisplacement air conditioning system has
resulted in a comfortable operating space andan estimated 90% reduction in the amount of
power required for existing air conditioning

Technological Support for
Using of Lead Free Solders
The response to environmental issues cannot
be carried out by one corporation alone, butmust be carried out on a global scale. At
Hitachi, Ltd., we are taking the lead in aninternational project that not only promotes thelead free solders used in the connections ofconventional electrical and electronic devices,
but which also supports the development ofinternal and external technologies, especiallyprocessing technology utilized for a variety of
Hitachi Group products.

■ESCO（Energy Service Companies）
Business plan: Total support, including energy diagnosis, proposals, and the introduction of equipment
Contract period: 10 years

After improvements

Before improvements

Customer profit

Merits ofenergyconservation
Energy costs

Contracting andintroduction ofequipment

Value of Hitachi's
energy service:

Energy costs●Investment recovery●Equipment maintenance costs●Maintenance and verification
costs, etc. for energy-saving
equipment

ESCO

Energy-saving Design and Maintenanceimplementation
diagnosis

Energy-saving
volume verification

ESCO（Hitachi）

Finance

Actual examples of our activities include: ①
Technology seminars aimed at increasing theawareness of using free solders and how thiscan be achieved among management levelstaff at corporations where they haveexpressed an interest in using free solders, ②
Technological diagnosis and total problemsolving support services for corporations
planning to use free solders, from thepromotion of new systems to theestablishment of new technologies ③Support
for the introduction of new processing
technologies used in production lines, ④Implementation of connection reliability
simulations and reliability evaluations atdozens of companies, both internally andexternally. Recently, we were approached for
consultation regarding technological support
for production at an overseas site where lead
free solder is not used, evidence of ourcontinued implementation of support activities
on a global scale.

■Main Technological Support Items for the Abolishmentof Lead Solders―Technological Support Items ―・On-site seminars
・Technological diagnosis
・Materials selection andprocessing improvements
・Extended life period estimate
・Start of production line
・Consigned production
・Additional technological guidance―Comments ―・Capable of providing technologicalsupport for each individual item andevery possible combination
・Capable of adjusting our type of
support and schedule to match thetechnological level of the customer
and their desires

Example of an analytical model
for connection reliability simulation
Printed circuit board
Printed circuitboard

through holethrough hole

land
land
Solderland lifting
land
lifting

Solder

Displacement air conditioning equipment
at Komatsu Ltd. Oyama plant

Processing technology support

Example of a connection
reliability evaluation

For more information about ESCO, visit the following Web site: http://www.hitachi.co.jp/ESCO/index.html（only in Japanese）

38

In Correspondence with Guidelines
The following is the publication status for environmental performance indicators found in the guidelines used as reference in the creation of thisreport. References include: the Ministry for the Environment's Environmental Performance Indicator Guidelines for Business, Fiscal Year 2002
Version,
会社概要the Ministry of Economy, Trade and Industry's 2001 Environmental Reporting Guidelines with an Emphasis on Stakeholders, and the
Global Reporting Initiative's Sustainability Reporting Guidelines 2002.
In correspondence with the Ministry for the Environment's Environmental
Performance Indicator Guidelines for Business, Fiscal Year 2002 Version

In Correspondence with GRI's Sustainability Reporting
Guidelines 2002

Indicators related to environmental burdens

Environmental Performance Indicators
Compulsory Indicators

Indicator Item

Indicator Category
Core
Input
Indicators

Output①Total energy consumption

P．
4

Indicator No.

②Total input of materials

P．
4

Materials③Amount of water used

P．
4

EN1

④Greenhouse gas emissions

P．
4、21

⑤Chemical substance release and transfer volumes

P．
4、23、24⑥Total product manufacturing volume or total product sales volume

P．
4⑦Total amount of waste generated

P．
4、20

⑧Amount

P．
4、20⑨Totalof

final disposal of waste

amount of drainage

・Breakdown of invested energy
SubIndicators thatindicators qualitatively
・Types of resources and status at time of investmentcomplement core
・Breakdown of water sourcesindicators

Not applicable toall businesses,
but importantenvironmental
indicators

Reference Page

P．
4
P．
4
P．
4

EN2

Indicator Item

Total materials use other than water, by type.

P．
4

Percentage of materials used that are wastes（processed or unprocessed）―（＊1）

from sources external to the reporting organisation.

EnergyEN3

Direct energy use segmented by primary source.

EN4

Indirect energy use.

P．
4、21、22

Water
EN5

―（＊1）
Total water use.

P．
4

P．
4

Emissions, Effluents, and Waste

・Breakdown of 6 substances covered under the Kyoto Protocol

P．
4、22

EN8

Greenhouse gas emissions.

P．
4、21、22

・Breakdown of emissions activities

P．
4、19

EN9

Use and emissions of ozone-depleting substances.

P．
4、20

・Substances Subject to the PRTR Law

P．
4、23、24

EN10

NOx, SOx, and other significant air emissions by type.

P．
4・Emissions volume for other managed substances

P．
4、23

Total amount of waste by type and destination.

P．
4

・Production or sales volumes based on units other than weight

―（＊1）

EN11

P．
16

Significant discharges to water by type.

・Production or sales volume for product services that contribute to environmental impact reduction

EN12

P．
4

・Quantity or proportion of production of products certyfied by eco-labels

P．
18

・Amount of containers and packaging used

P．
4、19

・Breakdown of treatment methods for waste, etc.

P．
4、20

EN13

Significant spills of chemicals, oils and fuels in terms of total number
and total volume.

Significant environmental impacts of principal products and services.

P．
17

Percentage of the weight of products sold that is reclaimable at the end of

P．
36

P．
20

・Breakdown for points of discharge

P．
4・Water quality

P．
4

・Circulated water consumption volume for internal sites

P．
4

Compliance・Items under emission control(SOx,、NOx）

P．
4

EN16

・Items under emission control(SOx,、NOx）―（＊1）

・Substances―（＊1）

under emission restraint

EN15

the products' useful life and percentage that is actually reclaimed.

Incidents of and fines for non-compliance with all applicable international
and local regulations associated with environmental issues.

―（＊1）

・Nitroge and phosporus―（＊1）

Voluntary Indicators

・Items under drainage control―（＊1）

Indicator No.

・Amount of recyclable resources reused within the business―（＊2）

EnergyEN17・Amount of recyclable resources that are thermally recycled within the business

―（＊2）
P．
17

・CO2 emission efficiency of each product groupP．
17・Percentage of reusable/recyclable portions of each product group

P．
17、36

・Amount of uese products, containers and packaging collected

P．
36・Percentage of reusable/recyclable portions of each product groupP．
36

・State of soil contamination and groundwater pollution

P．
24

・Area of afforestation and nature restration―（＊1）

・Amount of chemical substances held in stock

P．
4、24

Indicator Item

Indicator Category

Indicator Item
Environmental conservation technologies, design for the environment（DfE）

P．
16、17

Environmental accounting

P．
14

Green purchasing

P．
18、19

Environmental communication and partnershipP．
26、27、28、29

Compliance with regulations regarding environmental matters

P．
32

Health and safety

P．
31

Social contributions related to the environment

P．
33、34

Indicators related to management
Indicator Item

Management indicators Sales volume, production volume, number of employees, etc.
Subindicators
Management and Environmental efficiency indicators
related indicators Standardization of a variety of environmental impact indicators

39

P．
4、21、22

to increase energy efficiency.

EN18

Energy consumption footprint（i.e., annualised lifetime energy requirements）of major products.

P．
17

EN19

Other indirect（upstream/downstream）energy use and implications,

P．
16、17

such as organisational travel, product lifecycle management,
and use of energy-intensive materials.

Water
EN21

Annual withdrawals of ground and surface water as a percent of annual

P．
4

renewable quantity of water available from the sources.

EN22

P．
4

Total recycling and reuse of water.

Emissions, Effluents, and Waste
―（＊1）

EN30

Other relevant indirect greenhouse gas emissions.

EN31

All production, transport, import, or export of any waste deemed "hazardous"

―（＊2）

.

Suppliers
Reference Page
P．
13

Environmental Management System
Subindicators

Reference Page

Initiatives to use renewable energy sources andunder the terms of the Basel Convention Annex , , , andIndicators related to environmental management

P．
32

declarations/conventions/treaties, and national, sub-national, regional,

・Noise,vibrations and odor

・Energy efficieny of each product groupP．
23、24、32

Products & Services
EN14

・Breakdown for types of waste, etc.

＊1: Data is available for a variety of sites, but is not included in the Group's report.
The names of reports and the homepage addresses are published for some sites.
＊2: The internal volumes for resource reuse and heat recovery are not currently included in calculations.
This is under investigation.

Indicator Category

Reference Page

Reference Page
P．
41
P．
16
―

EN33

Performance of suppliers relative to environmental components of programmers andP．
18

procedures described in response to Governance Structure and Management Systems section.

Transport
EN34

Significant environmental impacts of transportation used for logistical purposes.

P．
19

Total environmental expenditures by type.

P．
14

Overall
EN35＊1: Environmental impact caused through activities other than those for the Company
itself is not published.
＊2: Data management is carried out at each site, but not published.
＊3: Because a variety of information is required for specification, such as the type ofmanagement practices conducted at a variety of sites, corresponding items,
definitions, and the range of activities, items pertaining to a variety of organisms
Biodiversity （EN6, 7, 23, 24, 25, 26, 27, 28, 29） and related items EN20
"Water sources and related ecosystems and habitats that have suffered a notable
impact through the Company's use of water" and 32 "Water sources and related
ecosystems and habitats that have suffered serious impact through drainage andspillage from the Company," are not currently included in calculations.

List of Data Published on the hitachi green web
You can view details for the following data on the hitachi green web. For details, visit the following Web site:

http://greenweb.hitachi.co.jp/en/data
Category/Activity

Introduction

Reference Page

Contents

Company profile

Corporate Summary

P.41

Scope of Environmental Report

P.42

List of companies covered by reports

Environmental Impact Data

P.4

Environmental impact data for corporate activities

P.7

EcoValue Plan 2010

P.7

History of environmental management activities

Environmental Action Plan and Evaluation

P.8

Environmental Action Plan and evaluation

GREEN 21 Version 2

P.9-10

Green point average

Environmental Education

P.12

Number of qualified personnel required and number employed

Environmental Management System

P.13

EcoValue Plan 2010

Summary of accounts for FY2002

ISO14001 certification status
Trends in acquiring ISO14001 certification
List of ISO14001 certified sites by region
Cost and investment
EffectEco-mind & Management

Efficiency of environmental impact reduction
Environmental Accounting

P.14

Cost breakdown ratio by sector
Investment breakdown ratio by sector
Investment breakdown ratio by countermeasure
Economic effect breakdown ratio by sector
Environmental impact reduction efficiency
Eco-product registration trends

Eco-products

P.16-17

Chemical Substances Used in Products

P.18

Green Procurement/Green Purchasing

P.18

Green Procurement/Green Purchasing

P.19

Effective Use of Resources

P.19

Eco-products list and data sheet
Examples of eco-productsTrends in lead consumption
List of products covered under the Green Purchasing Law
Green procurement guidelines
Commission volumes for containers and packaging
Transportation impact status
Ratio of low-emission vehicles for the total number of company-owned vehicles
Trends in final disposal volume reduction
Flowchart for the treatment of waste and reusable waste products

Nature-friendly Products &Eco-factories

Increasing Product Transportation Efficiency

P.4,20

Zero emissions production sites
Breakdown of recycling methods
Breakdown of final disposal volumes by type
Breakdown of final disposal volumes by sector
Trends in production-related CO2 emissions

Prevention of Global Warming−Energy Conservation

Breakdown ratio for CO2 emissions volumes by sector
P.4,21-22

Trends in the composition of energy consumption
Emissions and composition of greenhouse gas
Volume of new energy
Trends in emissions for "substances specified for reduction"

Chemical Substance Management

P.23-24

Ratio of handling volume by sector
Breakdown of release and transfer volumes by sector
Survey results for substances covered under the PRTR law for Japan
Homepage access status
Site specific environmental reports

Environmental Communication

P.26-29

Worldwide
Stakeholder Collaboration

Sustainable Business Models

Site specific information disclosure via the Internet
Commendations
Environmental Web link for each company and site
Contact details for each company and site report

P.28

Opinions on Hitachi's Environmental Management Sustainability Report

Employee Relations（Health and Safety）

P.31

Occupational accident rate

Compliance with Laws & Regulations

P.32

Administrative guidance in environmental matters and responses to external complaints

Constructing Business Models

P.36

Number of household electrical appliances recycled and product recycling ratio
PC Take-back Results

40Company Profile
Company Profile
Corporate Name:

Hitachi, Ltd.

Incorporated:

Incorporated February 1, 1920（founded in 1910）

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

Representative:

Etsuhiko Shoyama, President and Director

Main Products and Services of the Hitachi Group
Information &Telecommunication
Systems

System integration services, software, magnetic disc systems, servers, notebook and desktop computers, peripheral devices for computers,
converters, optical components for communication systems

Electronic Devices

System LSI solutions, memory, multi-purpose semiconductors, liquid crystal displays, semiconductor manufacturing equipment, measurement
and analysis equipment, medical equipment

Power & Industrial
Systems

Nuclear power generation hardware, thermal power generation hardware, hydro power generation hardware, industrial machinery and plants,
air conditioning systems, construction machinery, train carriages, elevators, escalators, machinery for automobiles, environmental equipment

Digital Media &Consumer Products

Optical storage drives, televisions, portable devices, liquid crystal projectors, air conditioners, refrigerators, washing machines, lighting fixtures,
cooking equipment, batteries, media for recording information

High Functional
Materials &Components

Electrical wires, cables, copper and brass products, iron castings, steel castings, high-grade specialty steel, magnetic material, chemical
substances, electrical insulation materials, synthetic resins, carbon products, printed circuit boards, ceramic materials

Logistics, Services &OthersElectrical and electronic equipment sales, transportation of freight, real estate management, trade, and leasing

Financial Services

Sales of affiliated loans, leasing, life and non-life insurance businesses

Financial Data
As of March 31, 2003

Period: March 2003（consolidated）

Capital: ¥282,032 million

Net sales: ¥8,191.7 billion（102% compared with the previous year）

Stock information: Total number of authorized shares: 10 billion

Operating income/loss: ¥152.9 billion

Shares of common stock issued: 3,364,908,209

Net income: ¥27.8 billion

Number of shareholders: 421,138

Capital investment: ¥787.4 billion（92% compared with the previous period）

Nominal share value : ¥50

R&D expenditure: ¥377.1 billion（91% compared with the previous period）

Stock listings: Tokyo, Osaka, Nagoya, Fukuoka, Sapporo, Luxembourg, Frankfurt,
Amsterdam, Paris, New York●Overseas
Net sales: ¥2,645.2 billion（104% compared with the previous period）

Number of employees: 44,375

Output: ¥1,033.8 billion（95% compared with the previous period）

Number of consolidated employees: 339,572

Overseas output as a percentage of consolidated net sales: 13%

Number of consolidated subsidiary companies: 1,112（domestic: 708 companies,
overseas: 404 companies）

Overseas output as a percentage of overseas net sales: 39%

Number of affiliated companies that use the equity method: 119 companies【Trends in Consolidated Performance Results】
Net sales（billion yen）

Net Sales by Industry Segment
for Fiscal 2002（billion yen）

9000
8,416
8000

7,977

8,001

7,993

7000

6000

41

1998

1999

2000

2001

Financial Services
579
Logistics,（6％）Information &Services&
OthersTelecommunication
8,191
1,449
Systems
（14％）
1,899
（19％）
Electronic
High Functional
DevicesMaterials & Components
1,570
1,248
（15％）
（12％）
Power &
Digital Media &Industrial Systems
Consumer
2,297
Products（22％）
2002（FY） 1,205（12％）

Operating Income/Loss（billion yen）

Operating Income by Industry Segment
for Fiscal 2002 （billion yen）

342

350

110
100

300
250
200

174

152

150

18
6

100

-23

0
-50

-34

-100
-117

-150
-200

10

12

0

50

-50

53

50

1998

1999

2000

2001

-100

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

2002（FY）

Total Sales for Industry¥10,249 billion

Total Operating Income for Industry Segments¥187 billion

Consolidated Net Sales¥8,191 billion

Consolidated Operating Income¥152 billion

List of Companies Covered by This Report
The following list includes 298 companies covered by this report. The companies are listed according to their names as of March 31, 2003.
Domestic

Overseas

POWER SYSTEM SERVICE Co., Ltd.

Hitachi LSI Technologies,Ltd.

HIROSHIMA JAPAN BRAKE INDUSTRIAL CO.,LTD.

Asia

Kokubu Kiki Engineering Corporation

Hitachi Semiconductor and Devices Sales Co., Ltd.

Hitachi Chemical Coated Sand Co., Ltd.

Japan AE Power Systems Corporation

Hitachi Electronic Devices Sales Co., Ltd

Nikka Touchu Co., Ltd.

Hitachi Ibaraki Technical Service Ltd.

Hitachi Hi Components, Ltd.

Hitachi Chemical Filtec Inc.

Hitachi Ibaraki Business Enginering Co.,Ltd.

Tsuruta Electronics,Ltd

Nippon Denkai, Ltd.

Hitachi Engineering Consulting, Co., Ltd.

Eastern Japan Semiconductor

Hitachi Kokusai Electric Inc.

Hitachi Ibaraki Triple Win Co.,Ltd.

Technologies,Inc.

Hitachi Construction Machinery Co., Ltd.

Japan Motor & Generator Co.,Ltd.

Ome Semicon Co., Ltd.

Hitachi Kenki Business Frontier Co., Ltd.

Hitachi Ibaraki Net Sourcing Co.,Ltd.

Hitachi Yanai Semicon Co., Ltd

Hitachi Kenki FineTech Co.,Ltd.

Hitachi Kasado Kikai Kogyo Co., Ltd.

Northern Japan Semiconductor Technologies

Hitachi Construction Machinery Comec Co.,Ltd.

Hitachi Kasado Engineering CO., Ltd.

Haguro Electronics Co., Ltd.

Hitachi Kenki Logistics Technology Co.,Ltd.

Hitachi Industries Co., Ltd.

Hokkai Electronics Co., Ltd.

Hitachi Construction Machinery Tierra Co.,Ltd.

T-TEC Co.,Ltd.

Hitachi ULSI Systems Co., Ltd.

Hitachi Transport System, Ltd.

Sanki Service Co., Ltd.

AKITA ELECTRONICS SYSTEMS CO.,LTD.

Higashinippon Hitachi Transport Service Co.,Ltd.

Sanki Precision Co., Ltd.

AKITA SEMICONDUCTOR CO.,LTD.

Ibaraki Hitachi Transport Service Co.,Ltd.

Ebina Technos Co., Ltd.

Trecenti Technologies,Inc.

Higashikanto Hitachi Transport Service Co.,Ltd.

Techno Create Co., Ltd.

Hanshin Electric Co.,Ltd.

Kitakanto Hitachi Transport Service Co.,Ltd.

Hitachi Techno Service Co., Ltd.

Jidousha Denki Kogyou Co.,Ltd.

Keiyo Hitachi Transport Service Co.,Ltd.

Hitachi Engineering & Services Co., Ltd.

MOBARA ATECS Co.,Ltd

Nishikanto Hitachi Transport Service Co.,Ltd.

HESTECH Service Co., Ltd.

Chiba Electronics Co.,Ltd.

Chubu Hitachi Transport Service Co.,Ltd.

Hitachi Haramachi Electronics Ltd.

Hitachi Industrial Equipment Systems Co,Ltd.

Kansai Hitachi Transport Service Co.,Ltd.

Hitachi Kyowa Engineering Co., Ltd.

Hitachi Keiyo Engineering & Systems, Ltd.

Higashicyugoku Hitachi Transport Service Co.,Ltd.

Nikkyo Ltd.

Nakajyo Engineering Co., Ltd.

Nishicyugoku Hitachi Transport Service Co.,Ltd.

Hitachi Setsubi Engineering Co., Ltd.

Hitachi Home ＆ Life Solutions, Inc.

Hokkaido Hitachi Transport Service Co.,Ltd.

Nisetsu Service Co., Ltd.

Iwaki Metal Manufacturing Co., Ltd.

Minamikanto Hitachi Transport Service Co.,Ltd.

Hitachi Information & Energy Systems Co.,Ltd.

Hitachi Taga Technology, Ltd.

Tohoku HB Service Co.Ltd.

Chubu Electric Engineering Co., Ltd.

Hitachi Tochigi Material Co., Ltd.

Kyushu Hitachi Transport Service Co.,Ltd.

Chubu System Service Co.,Ltd.

Tochigi Industrial Co., Ltd.

Nisshin Transportation Co., Ltd.

Hitachi Electric Systems Co., Ltd.

Hitachi Lighting Co. Ltd.

Tozai Transport Co., Ltd.

Hitachi Engineering Co., Ltd.

Ome Sangyou, Ltd.

HB Air Cargo Service, Ltd.

ICC Co., Ltd.

Hitachi Hometec, Ltd.

Hitachi Auto Service（Ibaraki）Co., Ltd.

ICH Co., Ltd.

Nichiho Products,Ltd.

Hitachi Auto Service（Tokyo）Co., Ltd.

Ibaraki Hitachi Information Service Co., Ltd.

Nichinetsu Engineering Co., Ltd.

Hitachi Travel Bureau., Ltd.

Babcock-Hitachi Kabushiki kaisha

Hitachi Lighting, Ltd.

HTB Service Co., Ltd.

Bab Hitachi Industry Co., Ltd.

Hitachi Ryugasaki, Ltd.

Unique Co., Ltd.

Bab Hitachi Engineering Co., Ltd.

Sawara Electronic Products Co., Ltd.

Sunwork Co., Ltd.

BHK Business Service Corporation

Hitachi Tochigi Electronics Co., Ltd.

Syunan Transport Sevrice Co., Ltd.

Bab Hitachi Machinery Co.,Ltd.

Hitachi Semiconductor（Shzhou）Co., Ltd.
Hitachi Display Device（Shzhou）Co., Ltd.
Shanghai Hitachi Household Appliances Co., Ltd.
Hefei Hitachi Excavators Co., Ltd
Hitachi Transport System（Hong Kong）Ltd.
Hitachi Transport System（Shanghai）Ltd.
Nisshin Transportation（SHANGHAI）Co.,Ltd.
Hubei Huxin International Warehouse and Transportation Co., Ltd.
Nisshin Transportation（QINGDAO）Co.,Ltd.
Nam Yang Metals Co.,Ltd.
Kaohsiung Hitachi Electronics Co., Ltd.
Hitachi Chemical Co.,（Taiwan）Ltd.
Taiwan Hitachi Co., Ltd.
TAIWAN HITACHI AIR CONDITIONING PRODUCTS（PHILIPPINES）CORP.
HITACHI CONSUMER PRODUCTS（THAILAND）,LTD.
HITACHI COMPRESSOR（THAILAND）,LTD.
HITACHI TRANSPORT SYSTEM（THAILAND）, LTD.
KABINBURI LOGISTICS CENTER,LTD.
HITACHI COMPUTER PRODUCTS（ASIA）CORP.
MANILA INTERNATIONAL FREIGHT FORWARDERS,INC.
HITACHI CONSUMER PRODUCTS（MALAYSIA）SDN. BHD.
Hitachi Semiconductor（MALAYSIA）SDN.BHD.
HITACHI SEMICONDUCTOR（KEDAH）SDN. BHD.
HITACHI SEMICONDUCTOR TECHNOLOGY（MALAYSIA）SDN.BHD.
HITACHI SEMICONDUCTOR（PENANG）SDN. BHD.
HITACHI AIR CONDITIONING PRODUCTS（M）SDN.BHD.
HITACHI CABLE（JOHOR）SDN.BHD.
HITACHI CHEMICAL（JOHOR）SDN.BHD.
HITACHI TRANSPORT SYSTEM（MALAYSIA）SDN.BHD.
SUNRISE INTEGRATED SERVICES（MALAYSIA）SDN.BHD．
Hitachi Nippon Steel Semiconductor Singapore Pte. Ltd.
Hitachi Chemical Asia-Pacific Pte, Ltd.
HITACHI EXPRESS SINGAPORE PTE. LTD.
HITACHI TRANSPORT SYSTEM（ASIA）PTE.LTD.
P.T. Hitachi Chemical Electronic Products Indonesia
P.T.HITACHI CONSTRUCTION MACHINERY INDONESIA

Hitachi High-Technologies Corporation

IEC Co., Ltd.

Hitachi Mito Engineering Co.,Ltd.

Instruments Technology Ltd.

Hitachi Distribution Software Co., Ltd.

Mito Engineering Service Company

Hitachi Metals, Ltd.

F&H AIR EXPRESS Co., Ltd

Hitachi Building Systems Co., Ltd.

Hitachi Metals Kiko Co., Ltd.

NISSHIN TRANS CONSOLIDATOR CO.LTD.

Hitachi Information Academy Co., Ltd.

Hitachi Ferrite Electronics, Ltd.

Hitachi Plant Engineering & Construction Co., Ltd.

Hitachi Security Service Co., Ltd

HMY,Ltd.

Hitachi Maxell, Ltd.

HITACHI Hi-System21 Co.，Ltd.

Hitachi Tool Engineering, Ltd.

Maxell Life, Ltd.

HITACHI PUBLIC SYSTEM SERVICE CO. ,LTD.

Tool Tech, Ltd.

Maxell Engineering Co., Ltd.

Hitachi Information & Control Systems,Inc.

Seitan Inc.

Maxell Seiki, Ltd.

Omika Creative Services, Inc

Kyushu Techno Metal, Ltd.

Maxell Logistics Co., Ltd.

Hitachi Advanced Systems Corporation

Hitachi Metals MPF,Ltd.

Maxell Hi Tec, Ltd.

Shonan Service Co., Ltd.

Hitachi Cable, Ltd.

Kyushu Hitachi Maxell, Ltd.

OpNext Japan,Inc.

Takasuzu Engineering

Toko, Ltd.

Kanagawa High-Tech Services Co.,Ltd.

Hitachi Cable Mech-Tech,Ltd.

Sanpo Trading, Ltd.

Hitachi Printed Wiring Board Solution Co., Ltd

Hidec Systems Co.,Ltd.

Hitachi Air Conditioning Systems Co., Ltd.

Odawara Custom Manufacturing Service Co., Ltd.

J-Power Systems Corp.

Hitachi Shimizu Engineering Co., Ltd.

Hitachi H.B.M. Co., Ltd.

Hitachi Cable Fine-Tech,Ltd.

Hitachi Shimizu Technology Co., Ltd.

HBM Solution Co., Ltd.

Hirasawa Kogyosyo

ShinMaywa Industries, Ltd.

Hitachi Government and Public Corporation

Hitachi Copper Products, Ltd.

TOKICO LTD.

System Engineering, Ltd.

Hitachi Alloy, Ltd.

Hitachi Koki Co., Ltd.

Universalcom,Ltd.

Tonichi Kyousan Cable,Ltd.

Hitachi Information Systems, Ltd.

Hitachi System & Services,Ltd.

Tounichi Densenkako

Hitachi Medical Corporation

Hitachi System Engineering & Assist, Ltd.

Tounichi Shoji

Hitachi Medico Technology Corporation

Net Services,Ltd

Kyoteku

Kokusan Electric Co., Ltd.

Hitachi Touhoku Software, Ltd.

Tohoku Rubber Co., Ltd.

Toyo Machinery & Metal Co.,Ltd.

Hitachi Touhoku Software, Ltd.

Tohoku Kako

Japan Servo Co., Ltd.

Hitachi Chugoku Software,Ltd.

Tohoku Rabber Sales Co.,Ltd

Hitachi Electronics Engineering Co., Ltd.

Hitachi Open Platform Solusions,Lｔｄ.

Hitachi Chemical Co., Ltd.

Hitachi D .E. Technology Co., Ltd.

NAKAYO TELECOMMUNICATIONS,INC.

Neuron Co., Ltd.

Hitachi Via Mechanics, Ltd.

Hitachi Communication Technologies, Ltd.

Goi Chemical Co.,Ltd.

Keihin Sangyo, Ltd.

Telecom Kiki, Ltd.

Hitachi Chemical Electronics Co., Ltd.

Hitachi Seiko Engineering, Ltd.

Hitachi Hybrid Network Co.,Ltd.

Shimodate Sangyo Co., Ltd.

Hitachi Media Electronics Co., Ltd.

Hitachi INS Software,Ltd.

Hitachi Housetec Co., Ltd.

Hitachi Life Corporation

Hitachi Electronics Services Co., Ltd.

Shin-Kobe Electric Machinery Co., Ltd.

Sliontec Corporation

Hitachi Information Technology Co., Ltd.

Shin-Kobe Platechs Co.,Ltd.

Slion Service Co., Ltd.

Shonan Hi-tech Planning Co.,Ltd.

Shin-Kobe Techno Service., Ltd.

Hitachi, Ltd.

Kanagawa Production and Services Co.,Ltd.

Hitachi Battery Sales & Service, Ltd.

Hitachi Computer Peripherals, Co., Ltd.

Hitachi AIC Inc.

Hitachi Video and Information System,Inc.

Shinmachi Condenser, Ltd.

Hitachi Microsoftware Systems,Inc.

Haitekusu, Ltd.

Media Tech Co.,Ltd.

Yamagishi AIC Inc.

TOKAI TEC CO., LTD.

Hitachi Powdered Metals Co., Ltd.

Hitachinaka denshi,Inc.

MEC, Ltd.

Hitachi Asahi Electronics Co.,Ltd.

Hitachi Kasei Polymer Co., Ltd.

Hitachi Postal Technology Co.,Ltd.

Hitachi Chemical Industrial Materials Co., Ltd.

Chubu High Technology Service,Co., Ltd.

Hitachi Chemical Automotive Products Co.,Ltd.

Hitachi Joei Tech Co., Ltd.

Japan Brake Industrial Co., Ltd.

Hitachi Kodaira Semicondudtor Co., Ltd.

Namie Japan Brake Co., Ltd.

Takasaki Semiconductor Co.,Ltd.

NARUTO MANUFACTURING CO.,LTD.

America
Hitachi Home Electronics（AMERICA）,INC.
HITACHI AUTOMOTIVE PRODUCTS（USA）,INC.
HITACHI ELECTRONIC DEVICES（USA）,INC.
HITACHI MAGNETICS CORPORATIONWARD MANUFACTURING INC.
AAP ST.MARYS CORPORATIONHITACHI METALS NORTH CAROLINA,LTD.
ACP MANUFACTURING COMAPNY LLC
SUNRISE AIR SERVICE，
INC.
HITACHI TRANSPORT SYSTEM（AMERICA）,LTD.
HITACHI CONSUMER PRODUCTS DE MEXICO S.A. DE C.V.
HITACHI SYSTEMA DE TRANSPORTE MEXICO, S.A.DE C.V.
EuropeHITACHI TRANSPORT SYSTEM（UK）LTD.
HITACHI TRANSPORT SYSTEM（NEDERLAND）B.V.
Hitachi Semiconductor（EUROPE）GmbHHITACHI TRANSPORT SYSTEM（EUROPE）GMBHHITACHI SYSTEME DE TRANSPORT（FRANCE）SARL.
HITACHI AIR CONDITIONING PRODUCTS EUROPE S.A.

42

Corporate Environmental Policy Division
Hitachi, Ltd.
May 2003

Hitachi Group −Environmental Sustainability Report 2003
Thank you for your concern and interest in the business activities of the Hitachi Group, andin particular, for the interest you have shown towards our environmental preservation
activities.
With our compliments, please find enclosed a copy of the Hitachi Environmental
Sustainability Report 2003, detailing the environmental activities undertaken by the
Hitachi Group.
This year the word "management" has been added to the report's title in Japanese,
illustrating the greater management-centered approach Hitachi is taking towards its
environmental activities. The report also features details on GREEN 21 Version 2, a new
evaluation tool for realizing the Hitachi Group's Environmental Vision, making it easy tounderstand the impact Hitachi's activities have on the environment at a glance. In
addition to the Environmental Sustainability Report, we have included detailed
information on the Company's homepage.
In the future, while striving to continually improve our environmental preservation
activities, the Hitachi Group intends to pursue greater information disclosure in order tofacilitate a greater understanding of these activities.
We hope you will enjoy reading our latest report, and look forward to receiving yourunreserved thoughts and opinions.
Inquiries:
Corporate Environmental Policy Division
Hitachi, Ltd.
6, Kanda-Surugadai 4-chome,
Chiyoda-ku, Tokyo 101-8010, Japan

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

FAX:（81）3−3258−5810

Questionnaire
Please answer the questions below and mail or fax
completed questionnaire to the address/

Corporate Environmental Policy Division Hitachi, Ltd.
6, Kanda-Surugadai 4-chome, Chiyoda-ku, Tokyo 101-8010, Japanfacsimile number on the right.

Q1.

Fax:（81）3-3258-5810

What did you think of the Hitachi Environmental Sustainability Report?（Check one box only）（1）Comprehensibility（2）Volume（3）Content□ High□ Too much
□ Good□ Average□ Appropriate□ Average□ Low□ Too little□ Poor・Explain the reason（s）for your selection.

Q2. What impressed you most about the Hitachi Environmental Sustainability Report?（You may selectmore than one box.）□ 2002 Highlights□ Message from the President□ Environmental Impact Data for Corporate Activities□ Basic Environmental Philosophy□ Executive Commitment□ EcoValue Plan 2010
□ Environmental Action Plan and Evaluation□ GREEN 21 Version 2 Evaluation Standards□ Eco-management Structure□ Environmental Education −Nurturing Eco-minds□ Environmental Management System□ Integrated System for Environmental Management□ Environmental Accounting□ Design for Environment Assessment and Eco-products□ Application of the "Environmental Efficiency" and "Factors" Indicators□ Examples of Eco-products □ Green Procurement□ Chemical Substances Used in Products□ Green Purchasing□ Effective Utilization of Resources □ Increasing Product Transportation Efficiency□ Waste Reduction□ Prevention of Global Warming −Energy Conservation□ Chemical Substance Risk Management□ Environmental Communication□ Environmental Town Meetings□ Communication with Investors□ Opinions on Hitachi's Environmental Report□ Comments on Sustainable Business Models for the Future□ Employee Relations（personnel affairs）□ Employee Relations（health and safety）□ Compliance with Laws & Regulations□ Customer Relations□ Social Contribution Activities□ Constructing Business Models□ Offering Total Environmental Solutions□ In Correspondence with Guidelines□ List of Data Published on the hitachi green web□ Company Profile□ List of Companies Covered by Reports□ Our Determination as a Global Citizen
・If any of the selections above particularly interested you, please explain why.

Q3. Given the chance, would you be interested in sharing your opinions as a participant in one of
Hitachi's environmental town meetings?（p.27）
□ Yes

Q4.

□ No

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

Q5.

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

Q6.

If there are any environmental issues you would like to see us tackle, please let us know.

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

Name:
Address:
E-mailOccupation/Name of company:

Male/Female

Age: