Hitachi Group Sustainability Report 2011 Contents 003 Management Information Disclosure / Sustainability Report Editorial Policy 005 Hitachi Group Profi le 007 TOP COMMITMENT Hiroaki Nakanishi, President, Hitachi, Ltd. 009 TOP DIALOGUE Dialogue with WBCSD President 010 Eff ect of the Great East Japan Earthquake and Hitachi’s Response 015 VISION Hitachi’s Management Strategies and CSR Hitachi Group Corporate Credo and Management Plan / 2012 Mid-Term Management Plan / Sustainability Report Creating a Sustainable Society / Material Issues for Hitachi 2011 019 FEATURE Next-Generation Smart Cities by Hitachi Urban Planning for Tianjin Eco-City Hitachi Projects Extending around the World 025 Third-Party Expert Opinions 026 Management Report 027 Message Toshiaki Kuzuoka, Senior Vice President and Executive Offi cer 028 Corporate Governance Strengthening Governance / Internal Control 030 CSR Management CSR Management Structure / The Five-Year CSR Roadmap / CSR Self-Assessment Tool / FY 2010 Results and FY 2011 Plans 034 Risk Management Responding to the Great East Japan Earthquake / Reinforcing the Risk Management System / Business Continuity Plans (BCPs) 036 Compliance Formulating and Ensuring Awareness of the Hitachi Group Codes of Conduct / Implementing Corporate Ethics Month / Compliance Reporting System / Preventing Corruption / Preventing the Recurrence of Misleading Representations / Protecting Personal Information and Information Security / Export Control 041 Innovation Management Research and Development Strategy / Research and Development Goals / Enhancing Overseas Research Bases / R&D Plan and Investment / Hitachi Fellow System / Examples of R&D Achievements 044 Intellectual Property (IP) Globalization of Intellectual Property / Building a Strategic Patent Portfolio / Strengthening International Standardization / Business Contributions / Respect for Intellectual Property / Reward System for Employee Inventions / Cultivating Human Capital 046 Brand Management Global Brand Strategy / Improving the Global Brand / Web Management / Internal Brand Management / Evaluating the Eff ectiveness of Brand Initiatives / Reputation Management / Action against Infringement of the Brand Value 049 Environmental Report 050 Message Shigeru Azuhata, Senior Vice President and Executive Offi cer 051 Corporate Environmental Management Strategies and Initiatives The Hitachi Environmental Vision / Long-Term Plan Environmental Vision 2025 / Environmental Action Plan 060 Activities to Preserve Ecosystems 063 Environmentally Conscious Products and Services Increasing the Ratio of Eco-Products / Recycling Product Resources / Managing Chemical Substances Contained in Products / Participating in the Development of International Standards Hitachi Group Sustainability Report 2011 http://www.hitachi.com/csr/ 001 071 Environmentally Conscious Production Creating Super Eco-Factories and Offi ces / Reducing Greenhouse Gas Emissions / Reducing Waste / Water Conservation / Chemical Substance Management / Managing Environmental Risk / Environmental Load Data Generated through Business Operations (FY 2010) 081 Environmental Management Framework and Communication Environmental Management Framework / Environmental Education / Environmental Accounting / Environmental Communication 090 Independent Review 091 Social Report Hitachi Group 092 Message Makoto Ebata, Senior Vice President and Executive Offi cer; Sustainability Report Naoki Mitarai, Vice President and Executive Offi cer 2011 093 Quality Assurance and Customer Satisfaction Quality Assurance Activities / Quality and Reliability Education / Strengthening Quality Assurance Systems in China and throughout Asia / Handling Product Accidents / Customer Satisfaction / Universal Design 099 Public Policy Initiatives External Relations Policy / External Relations Structure / Stakeholder Engagement / Partnerships for Combating Global Warming / Global External Relations Initiatives 101 Communication with Shareholders and Investors Policy on Information Disclosure / Proactive IR Approach / General Meeting of Shareholders / Socially Responsible Investment and Sustainable Investment Assessments in Fiscal 2010 / Basic Policy for Prevention of Takeovers 104 Social Contribution Activities Philosophy and Policy / Education / The Environment / Social Welfare / Hitachi's Foundations / Support for Volunteer Activities / Disaster Relief and Recovery 116 Respect for Human Rights Human Rights Policies / Framework for Promoting Respect for Human Rights / Raising Awareness of Human Rights / Applying Human Rights Worldwide 119 Supply Chain Management Promoting Globalization / Sharing Procurement Policies / Building Partnerships / Helping Create International Guidelines / Sharing CSR Awareness / Green Procurement / Response to Confl ict Minerals Issue 123 Diversity Management Diversity Development Project / European Diversity Project / Employing People with Disabilities / Model Project for Promoting the Employment of People with Mental Disabilities 130 Global Human Capital Development Aligning Hiring with Global Business / Global Education for Young Employees / Global Manager Training / Training Future Managers / HITACHI BASIS / Training System 132 Employee Health and Safety Health and Safety Programs / Mental Health Care / Basic Attitudes to HIV/AIDS 134 Comparative Table with GRI Guidelines 144 Comparative Table with ISO 26000 Core Subjects 145 Comparative Table with the UN Global Compact 146 Policy, Vision, and Guidelines 147 Major Results Data 149 Inquiries Symbol Marks Used in This Booklet † Technical terms, proper nouns, etc., in the text requiring explanation * Additional explanation of terms, etc., in tables or diagrams WEB Indicates the title and URL of the Web page related to the article. The Environmental Report (pages 049–090) can be downloaded as a file from the Web site below http://www.hitachi.com/environment/data/ Hitachi Group Sustainability Report 2011 http://www.hitachi.com/csr/ 002 Management Information Disclosure We disclose non-fi nancial information, mainly our activities in fi scal 2010, ended March 31, 2011, in the Hitachi Group Sustainability Report 2011. Operating and fi nancial information for shareholders and other investors is in the Annual Report 2011. Our Web site provides the latest information on these and other topics. Non-Financial Information Reports WEB Global Community Relations Hitachi Group CSR and Activities Sustainability Report 2011 WEB (Corporate Social Responsibility) (Social Contribution Activities) http://www.hitachi.com/csr/ http://www.hitachi.com/Int-e/skk/ index.html index.html WEB Environmental Activities http://www.hitachi.com/ environment/index.html Hitachi Group Sustainability Report 2011 Financial Information Reports WEB Investor Relations http://www.hitachi.com/IR-e/ index.html Note: We also disclose operating and fi nancial information on Hitachi, Ltd. in the Form 20-F fi lings with the United States Securities and Annual Report 2011 Exchange Commission (see page 102). Sustainability Report Editorial Policy The Hitachi Group Sustainability Report 2011 is a combination of the Hitachi Group Corporate Sustainability Report and the Hitachi Group Environmental Sustainability Report, which we published through fi scal 2010. We publish the Hitachi Group Sustainability Report 2011 Digest (24 pages), a summary of policies, areas of special social interest, and reports on key management issues from the larger Hitachi Group Sustainability Report 2011 (149 pages), which is issued as a PDF. (The Japanese and English versions of this digest are scheduled to be released in September and October, respectively.) Our Web site also reports on detailed activity, as well as news releases and other up-to-date information. Latest information Reports on detailed activities On Hitachi, Ltd. Web site Reports on material issues Web booklet PDF Printed version Hitachi Group CSR (Corporate Social Responsibility) Hitachi Group Sustainability Report Environmental Activities Sustainability Report 2011 Global Community Relations and 2011 Digest Activities (Social Contribution Activities) Hitachi Group Sustainability Report 2011 003 http://www.hitachi.com/csr/ Reports on Detailed Activities Reports on Material Issues PDF Hitachi Group Sustainability Report booklet Hitachi Group Sustainability Report Digest Hitachi Group Profi le Eff ect of the Great East Japan Earthquake and Hitachi’s Response Top Commitment Hitachi Group Profi le Eff ect of the Great East Japan Earthquake and Hitachi’s Response Top Commitment Hitachi’s Management Strategies and CSR Hitachi’s Management Strategies and CSR Corporate Credo and Management Plan / 2012 Mid-Term Management Corporate Credo and Management Plan / 2012 Mid-Term Management Plan / Creating a Sustainable Society / Material Issues for Hitachi Plan / Creating a Sustainable Society / Material Issues for Hitachi FEATURE FEATURE Next-Generation Smart Cities by Hitachi Next-Generation Smart Cities by Hitachi Third-Party Expert Opinions Caring for the Environment / Respect for Human Rights/ Supply Chain Management / Diversity Management / Public Policy Initiatives Management Report Message from the Executive Offi cer for Management Audits / Corporate Governance / CSR Management / Risk Management / Compliance / Innovation Management / Intellectual Property / Brand Management Environmental Report Web Latest information Message from the Executive Offi cer for Environmental Strategy / Corporate Major CSR (Corporate Social Responsibility) Environmental Management Strategies and Initiatives