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Hitachi Group Sustainability Report 2015 FY 2014 Results Hitachi Group Sustainability Report 2015 Hitachi Group Sustainability Report 2015 FY 2014 Results Hitachi Group Sustainability Report 2015 01 Contents Contents Management Message/Executive Officer’s Message/Message from Representative Hitachi Group Sustainability Report 2015 02 Contents Contents Hitachi Group Sustainability Report 2015 64–184 Our Ongoing CSR Activities 03 Contents Introduction How to Use This Report Use the category tabs, navigation icons, and link buttons to go directly to different sections of this report. Category Tabs Go to the beginning of the corresponding section Hitachi Group 06-24 The Hitachi Group and Sustainability 25-45 Innovation from 2015 to the Future Sustainability Report 2015 46-63 Foundation for Promoting CSR Management 64–184 Our Ongoing CSR Activities Environment Social Governance 00 185-195 Performance Data & Assurance Contents Navigation Icons Link Buttons Click to go back one page Click to go to corresponding website Click to go forward one page Click to go to corresponding page Click to show table of contents Contents Editorial Policy Basic Concept The Hitachi Group Sustainability Report 2015 presents basic policies, promotion systems, measures, and key performance indicators on our activities in keeping with related reporting guidelines. The report is a tool with which we engage with our stakeholders through honest and transparent disclosures of information regarding fiscal 2014 activities and Hitachi’s stance in addressing social and environmental issues that are vital to the sustainability of corporate management and society. What This Report Covers (Scope of Reporting) Period The main period covered is fiscal 2014 (April 1, 2014, to March 31, 2015) Companies Hitachi, Ltd., and 995 consolidated subsidiaries (including variable interest entities): total 996 companies Scope of Data Financial data: Hitachi, Ltd., and 995 consolidated subsidiaries (including variable interest entities): total 996 companies and 261 equity- method affiliates Social data: Scope of data indicated under each item Environmental Hitachi, Ltd., and 995 consolidated subsidiaries (including data: variable interest entities): total 996 companies. However, for environmental performance data associated with Hitachi’s business operations, Hitachi Group companies whose environmental load comprises 90% of the total (based on Hitachi calculations) are included. Reporting Cycle Published every year as an annual report Date Published July 2015 * The data for each fiscal year are the results according to the scope of data in that fiscal year. * The base fiscal year data have been revised to match the scope of data for fiscal 2014. Hitachi Group Sustainability Report 2015 64–184 Our Ongoing CSR Activities 04 Contents Introduction Symbol Marks Used in This Report *: Technical terms, proper nouns, tables, diagrams, etc. requiring explanation Hitachi References in This Report Hitachi, Ltd.: Information on or initiatives of Hitachi, Ltd. Hitachi: Information on or initiatives of all Group companies in and outside Japan Key Guidelines Referred to in Preparing This Report GRI Sustainability Reporting Guidelines (G4), Global Reporting Initiative Environmental Reporting Guidelines (2012 version), Ministry of the Environment, Japan Environmental Reporting Guidelines 2001—With Focus on Stakeholders, Ministry of Economy, Trade, and Industry, Japan Disclosure of Financial and Non-Financial Information Hitachi, Ltd., following closely the deliberations of the European Union (EU) and the International Integrated Reporting Council (IIRC) about non-financial disclosure, presents information to match the needs of stakeholders reading this report. The Annual Report mainly presents financial information, while the Hitachi Group Sustainability Report mainly presents non-financial information and clarifies how sustainability issues relate to financial activities. The latest information is available on the Hitachi Group’s website. Non-Financial Information Reports WEB CSR (Corporate Social WEB Environmental Activities WEB Global Community Relations and Responsibility) http://www.hitachi.com/environment/ Activities (Social Contribution Activities) Hitachi Group Sustainability http://www.hitachi.com/csr/ http://www.hitachi.com/csr/sc/ Report 2015 * We also disclose information about Hitachi, Ltd. in the Corporate Governance Report. Financial Information Reports WEB Investor Relations http://www.hitachi.com/IR-e/ Annual Report 2015 (2015 edition scheduled for * Information about Hitachi Ltd. is also disclosed in the Annual Securities Report and the publication in August 2015) Report on the 146th Business Term. Hitachi Group Sustainability Report 2015 64–184 Our Ongoing CSR Activities 05 Contents Introduction Third-Party Assurance and Verification To enhance the credibility of this report, we commissioned third-party environmental, governance, and social performance assessments in fiscal 2014. KPMG AZSA Sustainability Co., Ltd. has provided assurance on a set of major governance and social performance indicators in accordance with the International Standard on Assurance Engagement (ISAE) 3000 and the Practical Guidelines for the Assurance of Sustainability Information of the Japanese Association of Assurance Organizations for Sustainability Information. Bureau Veritas Japan Co., Ltd. verified our environmental performance. Performance figures that have been assured/verified are indicated by in the report. Report Media This report is a combination of the Hitachi Group Corporate Sustainability Report and the Hitachi Group Environmental Sustainability Report, which we published until fiscal 2010. The Hitachi Group Sustainability Report 2015, which emphasizes comprehensiveness and searchability of non-financial information, with special attention being given to management transparency, is published as a PDF file (A4, 197 pages), while the easy-to- read Hitachi Group Sustainability Report 2015 Highlights is issued in booklet form (B5, 18 pages). The booklet, in particular, contains valuable information regarding areas of social interest and for understanding Hitachi’s sustainability management strategies. Our CSR website enables us to communicate to a broad range of stakeholders, making available the gist of our sustainability management strategies, reports of our activities in fiscal 2014, details of our major achievements and guidelines for the media, and news releases and other latest information. Booklet Website PDF Hitachi Group Sustainability CSR (Corporate Social Responsibility) Hitachi Group Sustainability Report Report Highlights An easy-to-read communication tool targeting A tool for communicating the gist of Hitachi’s Annual report targeting specialists and those customers, including members of the general sustainability activities to a broad range of highly interested in CSR emphasizing public, and our transaction partners stakeholders comprehensiveness and searchability of non- financial information Contents Contents Hitachi’s Business and Society Hitachi’s Business and Society Contents Messages from Management Messages from Management, Executive Officers, and Hitachi’s Business and Society Examples of Social Innovation Business Regional Representatives Messages from Management, Executive Officers, and CSR and Social Contribution Activities Examples of Social Innovation Business Regional Representatives Basic Sustainability Policy Details of Social Innovation Business Gist of Sustainability Strategy Basic Sustainability Policy Overview of Actions and Key Results in Fiscal 2014 Details of Sustainability Strategy Latest CSR News Reports of Activities in Fiscal 2014 Cross-Reference Guidelines Financial and Non-Financial Performance Indicators Initiatives That We Participate In We have been a member of the World Business Council for Sustainable Development (WBCSD) since 1995. We have been a member of the United Nations Global Compact since February 2009. Hitachi Group Sustainability Report 2015 64–184 Our Ongoing CSR Activities 06 Contents The Hitachi Group and SUSTAINABILITY Hitachi is committed to building a secure and comfortable world for all of its current stakeholders and future generations, working together with these stakeholders to innovate and contribute to society. With our talented team and proven experience in global markets, we aim to continuously inspire the world. At the same time, to achieve sustainable growth as a global company, we are accelerating creation of economic and social value. Contents Hitachi Group Sustainability Report 2015 64–184 Our Ongoing CSR Activities 07 Contents Hitachi and Society Creating value to fulfill our Corporate Credo—contributing to society through the development of superior, original technology and products— has underpinned our business development for more than a century. Hitachi’s R&D program focuses on products and services that help to resolve social issues. Hitachi Group Profile Corporate Profile (as of March 31, 2015) Corporate name Hitachi, Ltd. Incorporated February 1, 1920 (founded in 1910) Head office 1-6-6 Marunouchi, Chiyoda-ku, Tokyo 100-8280, Japan Representative Toshiaki Higashihara Representative Executive Officer, President & COO Capital 458.79 billion yen Number of employees 31,375 (unconsolidated basis) 333,150 (consolidated basis) Number of consolidated subsidiaries 995 (Japan: 274, outside of Japan: 721) (including variable interest entities) Number of equity-method affiliates 261 Consolidated Financial Highlights for Fiscal 2014, Based on US GAAP Revenues 9,761.9 billion yen (up 2%, year on year) Operating
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