Hitachi Group Sustainability Report 2013
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Hitachi Group Sustainability Report 2013 VA L U E C R E A TIO N F O R A S U S T AINABLE SOCI ET Y 002 Hitachi Group CONTENTS Sustainability Report 2013 004 Sustainability Report Editorial Policy 006 Hitachi Group Profile 008 TOP COMMITMENT Message from Management Hiroaki Nakanishi, President, Hitachi, Ltd. 010 VISION: Management Strategies and CSR Trends in Society and Hitachi Group Identity / 2015 Mid-Term Management Plan to Realize Hitachi Group the Hitachi Group Vision / Performance Overview of 2012 Mid-Term Management Plan Sustainability 014 FEATURE: Contributing to Society through Business Report 2013 Hitachi’s Solutions for Social Problems Key Hitachi Business Segments Ensuring Safe, Reliable, and Optimal Water Environments Worldwide Innovative Cities and Communities 022 Activities by Country and Region Europe / The Americas / Asia & India / China 026 Governance Report 027 message Toshiaki Kuzuoka, Senior Vice President and Executive Officer 028 Corporate Governance Strengthening Governance / Compensation / Internal Controls over Financial Reporting / Group Management 032 CSR Management CSR Policy of the Hitachi Group / CSR Management Structure / CSR Self-Assessment Tool / CSR Activities Results and Plans 037 Risk Management Reinforcing the Risk Management System / Business Continuity Plans / Providing Information through Our Internal Website / Managing Risk Overseas / Responding to the Great East Japan Earthquake / Reputation Management 041 Compliance Enhancing Comliance Flamework / Formulating and Ensuring Awareness of the Hitachi Group Codes of Conduct / Implementing Corporate Ethics and Compliance Month / Preventing Corrupt Practices Involving Public Officials / Compliance Reporting System / Preventing Violations of the Antimonopoly Law / Export Control / Information Security 047 Innovation Management Research and Development Strategy / Research and Development Goals / R&D Plan and Investment / Enhancing R&D outside Japan / Noteworthy R&D Achievements 052 Intellectual Property IP Activities Supporting Global Operations / Activities and Results 056 Brand Management Global Brand Strategy / Evaluating Our Global Brand Strategy / Activities and Results (Improving the Global Brand / Web Management / Internal Brand Management / Brand Management) 003 Hitachi Group Sustainability 060 Environmental Report Report 2013 061 message Shigeru Azuhata, Chief Environmental Strategy Officer 062 Environmental Activities Worldwide 064 Environmental Management Strategies and Initiatives The Hitachi Environmental Vision and Long-Term Plan Environmental Vision 2025 / Environmental Action Plan Hitachi Group 071 Environmentally Conscious Products and Services Sustainability Increasing the Ratio of Eco-Products / Hitachi Products Helping to Reduce CO2 Emissions / Recycling Product Resources / Managing Chemical Substances Contained in Products / Report 2013 Participating in the Development of International Standards 086 Environmentally Conscious Production Creating Eco-Factories and Office Select / Promoting Global Warming Countermeasures / Calculation of GHG Emissions throughout the Value Chain / Reducing Waste / Water Conservation / Chemical Substance Management / Managing Environmental Risk / Environmental Load Data Generated through Business Operations (FY 2012) 105 Environmental Management Framework and Communication Environmental Management Framework / Preserving Ecosystems / Environmental Education / Environmental Accounting / Environmental Communication 120 Social Report 121 message Shinichiro Omori, Vice President and Executive Officer Naoki Mitarai, Vice President and Executive Officer 122 Respect for Human Rights Adoption of Human Rights Policies / Framework for Promoting Respect for Human Rights and Activities / European Stakeholder Dialogue 2013: Human Rights Policy and Due Diligence / Sharing the UN Guiding Principles on Business and Human Rights / Human Rights Education in China / European Senior Manager Training on Business and Human Rights / Contributing to International Discussions 127 Supply Chain Management Promoting Global Procurement / Sharing Procurement Policies / Building Global Partnerships / Hitachi Group CSR Procurement / Green Procurement / Response to the Conflict Minerals Issue 133 Diversity Management Hitachi Group Diversity Management / Diversity Promotion Project Structure / Diversity Activities / Work-Life Management / Main Assessments and Awards / Employing People with Disabilities 147 Public Policy Initiatives External Relations Promotion Structure / Specific Initiatives 150 Quality Assurance Activities Quality Assurance Activities / Quality and Reliability Education / Strengthening Quality Assurance (QA) Systems in China and throughout Asia / Handling Product Accidents / Ensuring Hitachi Home Appliance Safety 153 Customer Satisfaction CS Improvement Activities / Universal Design 159 Communication with Shareholders and Investors Information Disclosure Policy / Proactive IR Approach / General Meeting of Shareholders / Hitachi as an SRI Investment / Fundamental Policy against Takeovers 163 Employee Health and Safety Health and Safety Programs / Measures for Improving Health and Safety 167 Global Human Capital Development Global Human Capital Management Strategy / Accelerating the Globalization of Japanese Employees / Developing Local Personnel / Optimizing Employee and Organization Performance / Career Development Support / Employee Welfare 173 Social Contribution Activities Symbol Marks Used in This Booklet Philosophy and Policy / Education / The Environment / Social Welfare / Hitachi’s * Technical terms, proper nouns, Foundations / Support for Volunteers / Disaster Relief / Contributing to Local Communities tables or diagrams, etc., requiring List of Key Indicators explanation 189 WEB Indicates the title and URL of 191 Independent Assurance the web page related to the article. 194 Inquiries Sustainability Report Editorial Policy Basic Concept The Hitachi Group Sustainability Scope of Reporting [Period] The main period covered is fiscal 2012 (April 1, 2012 to March 31, 2013) Report 2013 presents basic policies, [Companies] Hitachi, Ltd. and 963 consolidated subsidiaries (including modified entities to which the equity method of consolidated reporting applies): total 964 companies promotion systems, measures, and [Scope of data] key performance indicators on each Financial data: Hitachi, Ltd. and 963 consolidated subsidiaries (including modified entities to which the equity method of consolidated reporting applies): total 964 companies and 215 affiliated companies that use the initiative in keeping with related equity method Social data: Scope of data indicated under each item reporting guidelines. This approach Environmental data: Hitachi, Ltd. and 963 consolidated subsidiaries (including modified entities to which maintains an honest and transparent the equity method of consolidated reporting applies): total 964 companies. However, for environmental load data generated through business operations, companies that cover 90 percent of the load (based on Hitachi disclosure of information regarding calculations) are included. ∙ The data for each fiscal year indicates the results according to the scope of data in that fiscal year. fiscal 2012 initiatives and Hitachi’s ∙ The base fiscal year data has been revised to match the scope of data for fiscal 2012. stance in addressing social and Key Guidelines Referred to in Preparing this Report environmental issues that are vital Environmental Reporting Guidelines (FY 2012 version), Ministry of the Environment, Japan Environmental Reporting Guidelines 2001—With Focus on Stakeholders, Ministry of Economy, Trade and to the sustainability of corporate Industry, Japan management and society. GRI Sustainability Reporting Guidelines (G3.1), Global Reporting Initiative ISO 26000: 2010, International Organization for Standardization The Hitachi Group Sustainability Report is published annually. Disclosure of Financial and Non-Financial Information Reports Non-Financial Information Hitachi Ltd., following closely the deliberations of the EU and the International Integrated Reporting Council (IIRC) about non-financial WEB CSR (Corporate Social WEB Environmental Activities disclosure, presents information to Responsibility) http://www.hitachi.com/ http://www.hitachi.com/csr/ environment/ match the needs of stakeholders Hitachi Group reading this report. While financial Sustainability information is in the Annual Report, Report 2013 the Hitachi Group Sustainability WEB Global Community Relations and Activities (Social Contribution Activities) Report presents non-financial http://www.hitachi.com/csr/sc/ information and clarifies how Financial Information Reports sustainability issues relate to financial activities. Up-to-date information is available on the Hitachi Group’s website. WEB Investor Relations http://www.hitachi.com/IR-e/ Note: We also disclose financial information about Hitachi, Ltd. in the Corporate Governance Report, the Annual Securities Report, and the Annual Report 2013 Report on the 144th Business Term. Third-Party Assessments To enhance the credibility of this report, we commissioned third-party environmental, governance, and social performance assessments in fiscal 2012. Bureau Veritas Japan Co., Ltd. assessed environmental performance. Ernst & Young Sustainability Co., Ltd., verified governance and social performance based on International Standard on Assurance Engagement (ISAE) 3000. External Evaluations Initiatives That We Participate in We were selected in September