Aiming for Sustainable “Monozuku

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					Aiming for Sustainable “Monozukuri”
         (Design, Manufacture and Repair of Products)




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Environmental Activities of the Hitachi Group
The Hitachi Group is expanding its environmental activities in accordance with the policies to
which it has committed itself in its Environmental Vision (Sustainability Compass).
It is also applying Hitachi Action Guidelines for Environmental Conservation to the whole Group,
and drafting annual action plans based on EcoValue Plan 2010, its roadmap up to 2010.
The activities carried out are assessed using our GREEN 21 evaluation system,
and plans reviewed accordingly.




Hitachi’s Environmental Vision and Guidelines                                                                           N
                                                                                                             Nature-friendly Products       • Improve resource productivity
Hitachi Group companies worldwide will work                              Sustainability Compass
                                                                                                                 & Eco-factories†           • Promote sustainable use of
to help create a corporate community in bal-                                                                                                  energy and resources

ance with nature and open up the way to a
sustainable society. For the sake of future
generations, we will act as a good corporate
citizen and use our products, services, and
technologies to propose innovative new busi-                                W
                                                                 Worldwide Stakeholder
                                                                                                                                                                          E
                                                                                                                                                                      Eco-mind
ness models to society, while taking progres-                        Collaboration†                                                                                & Management†

sive action in the four key directions of our                    • Proactive information                                                                          • Strengthen management
                                                                   disclosure                                                                                       systems that promote
Sustainability Compass.                                          • Proactive collaboration                                                                          sustainable business activities
                                                                   with stakeholders                                                                              • Foster advanced eco-minds
                                                                                                                                                                    among employees and their
Sustainability Compass                                                                                                                                              families
This is Hitachi’s environmental management
“compass,” comprised of core values and the                                                                              S
                                                                                                          Sustainable Business Models†
four directions of activity in which we strive to
                                                                                                         • Expand sustainable business models
achieve this environmental vision.                                                                       • Promote the spread of business operations
                                                                                                           with a reduced environmental impact


Hitachi Action Guidelines for Environmental Conservation


     The basic philosophy of these Guidelines is based on the “Hitachi, Ltd.                     reducing environmental burdens at every stage, including product re-
     Standards of Corporate Conduct” (Rule No. 2272, established on June 28,                     search and development, design, production, distribution, sales, usage
     1983). These Guidelines are intended to set forth Hitachi’s action guidelines for           and final disposal.
     addressing environmental conservation in relation to its business activities.            5. Hitachi will investigate and review the environmental impact caused in the
                                                                                                 course of its “MONOZUKURI” processes. Hitachi will also introduce ex-
     Purpose                                                                                     cellent technologies and materials useful to safeguard the environment,
     In order to realize an environmentally harmonious and sustainable society                   in other words, to reduce environmental burdens through energy and
     through products and services, Hitachi is committed to meeting its social                   resource saving, chemical substance management, recycling, and other
     responsibilities by promoting globally-applicable “MONOZUKURI” (design-                     measures.
     ing, manufacturing or repairing of products), which is aimed at reducing en-             6. Hitachi’s environmental conservation efforts are not only to be focused
     vironmental burdens of products throughout their entire life cycles, ensuring               on observing international environmental regulations and those of na-
     environmental conservation.                                                                 tional and local governments, but also on conserving the environment by
                                                                                                 implementing voluntary environmental standards when necessary.
     Action Guidelines                                                                        7. Regarding globally-applicable MONOZUKURI activities, impact on the
      1. Global environmental conservation is a critical challenge shared by all                 local environment and community are to be considered. In addition, mea-
         humans. Hitachi is committed, therefore, to fulfilling its responsibilities by           sures that meet local communities’ requests should be implemented.
         assisting in the realization of an environmentally harmonious and sustain-           8. Hitachi will educate its employees on the observance of environment-
         able society as one of its management priorities.                                       related laws, raise their environmental awareness and encourage their
      2. Hitachi will make efforts to contribute to society by developing highly                 interest in society at large and broad-based environmental conservation
         reliable technologies and production processes, while identifying needs                 activities.
         considering concerns related to global environmental conservation and                9. Hitachi will evaluate potential environmental problems and prevent them
         limited resources.                                                                      from occurring. In the event that any environmental problem occurs,
      3. Members of the board in charge of environmental conservation are re-                    Hitachi will take appropriate measures to minimize the impact on the
         sponsible for facilitating appropriate environmental conservation activities.           environment.
         Departments responsible for environmental conservation should endeav-               10. Hitachi will make efforts to disclose information on its environmental
         or to promote and ensure environmental conservation activities, including               conservation activities to its relevant stakeholders. Hitachi will also ac-
         improving environment-related rules and regulations and setting goals for               tively communicate with these stakeholders so as to strengthen mutual
         environmental burden reduction. These departments should also confirm                    understanding and forge cooperative relationships with them.
         that their environmental conservation activities are conducted in a proper
         manner and ensure that these activities are maintained and improved.                                                                                  (Date of enforcement)
      4. Hitachi will promote globally applicable “MONOZUKURI” with the aim of                                                                                          April 1, 2005




38     Hitachi Group CSR Report 2005


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Medium-Term Environmental Action Plan and Results

EcoValue Plan 2010
This plan was drawn up in 2001 as a roadmap leading to 2010, and has been updated annually in conjunction with the drafting of annual
action plans.

 Eco-mind & Management
  1 Promotion of environmental management                                     Improved global environmental management group synergy
  2 Improvement of self-evaluation system                                     Continued expansion of GREEN 21 ver.3
  3 Environmental education                                                   Promoted eco-friendly lifestyles
  4 Establishment of environmental accounting                                 Sustained implementation of effective environmental impact reduction

 Nature-friendly Products & Eco-Factories
  Nature-friendly Products
  5 Eco-product expansion                                                     Expanded eco-product lineup (100% application), 50%-plus improvement in global warming prevention factor,
                                                                              70%-plus improvement in resource factor (compared to FY2000) (consumer products, etc.)
  6 Promotion of product chemicals content management                         Thoroughgoing management of substances in all products posing a risk to the environment
  7 Promotion of green procurement                                            Joint development of DfE products with suppliers
  8 Transport efficiency improvement                                           10%-plus reduction per unit in CO2 emissions generated during transport of products (compared to FY2000)
  Eco-factories
  Prevention of global warming         9 CO2 emissions                        7% reduction (compared to FY1990) (Japan)
                                       0 Per production unit CO2 emissions    25% reduction (compared to FY1990), or industry organization individual target [domestic],
                                                                              5% reduction (compared to FY2003) [overseas]
                                       q Greenhouse gas reduction             35% reduction of SF6 emissions (compared to FY2003),
                                                                              10% reduction of PFCs (compared to FY1995) [semiconductors], 0% increase [LCDs]
  Chemicals management                 w Emissions reduction                  Reduction of VOC ( volatile organic compounds) emissions
  Waste reduction                      e Reduction of final disposal waste     Reduced to below 70% (compared to FY1998)
                                       r Control of waste product generation Promotion of resource recycling-oriented manufacturing

 Worldwide Stakeholder Collaboration
  Environmental communication          t Information disclosure               Expanding information disclosure to engage stakeholders
                                       y Dialog                               Worldwide promotion of “town meeting” forums for discussion of environmental issues with local communities
  u Corporate citizenship activities                                          Expanding ties with NGOs and local communities to help build a sustainable society

 Sustainable Business Models
  i Creation of sustainable business models                                   Product recycling systems, expansion of leasing and rental business
  o Expansion of sustainable society-oriented business                        Expanding environmental solutions model projects, and promoting their spread in society




2004 Annual Action Plan and Results
Goals in each category, 2004 results, performance with respect to target figures, and plans for the future.

 Eco-mind & Management                                              Eco-mind & Management                                                Eco-mind & Management
 1 Promoting Environmental Management                               2 Enhancing Evaluation System                                        3 Environmental Education


 • We shall upgrade and strengthen our environmental                • GREEN 21ver.2                                                      • Encourage “eco-mind” attitudes among all employees
   management system, aiming for consolidated                         Achievement of 533 green points (GP)                                 and their families
   environmental management                                                                                                              • Boost employee education and number of licensed and
 • We shall incorporate environmental management into               FY2004 performance                                                     certified personnel
   our business strategy, and aim to become an enterprise           527 GPs
   that generates environmental value                                                                                                    FY2004 performance
                                                                       FY2005 target                                                     GREEN 21 Award Program launched
 FY2004 performance                                                 640 GPs
 Number of companies reporting environment impacts                                                                                       Completed Internet education
 Domestic: 239 Overseas: 36 Total: 275                                                                                                   for 32,000 persons
                                                                                                                                         Distributed English language pamphlets for employee
    FY2005 target                                                                                                                        families
 Strengthen global environmental management
                                                                                                                                            FY2005 target
                                                                                                                                         Further develop environmental education globally




                                             PAGE    P.46                                                        PAGE   P.42                                                    PAGE    P.42, 48




                                                                                                                                 Environmental Activities of the Hitachi Group                 39


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Eco-mind & Management                                        Nature-friendly Products & Eco-factories                     Nature-friendly Products & Eco-factories
4 Establish Environmental Accounting                         5 Expansion of Eco-Product Lineup                            6 Promotion of Product Chemicals
                                                                                                                            Content Management
 • Establish and promote environmental management also       • Publication of Design for Environment (DfE) Assessment     • Complete phasing out of hexavalent chromium, lead,
   among Group companies                                       Guidelines incorporating environmental efficiency index       cadmium, mercury, PBB, and PBDE, the six substances
 • Promote the use of environmental impact reduction         • Implementation of product environmental efficiency for        covered by RoHS Directive on electrical and electronic
   indicators                                                  key products of each business unit and company               equipment

 FY2004 performance                                          FY2004 performance                                           FY2004 performance
 FY2004 consolidated environmental accounting for            Eco-products 72%                                             Technology for phasing out
 275 Group companies                                         Design for Environment (DfE) Assessment Guidelines           the six substances almost completed
                                                             revised                                                      Shipment of RoHS Directive-compliant new products
     FY2005 target                                                                                                        commenced in April 2005
 Promotion of internal use of environmental accounting       Calculation of environmental efficiency of 11 products

                                                                 FY2006 target                                                FY2006 target
                                                             Achieve 80% eco-products                                     Building of appropriate individual management
                                                                                                                          systems for phasing out the six substances
                                                                                                                          (June 2006)




                                           PAGE   P.47– 48                                              PAGE   P.49 –51                                                 PAGE   P.49



Nature-friendly Products & Eco-factories                     Nature-friendly Products & Eco-factories                     Nature-friendly Products & Eco-factories
7 Promotion of Green Procurement                             8 Improving Transport Efficiency                              [ Prevention of Global Warming ]
                                                                                                                          9 CO2 Emissions

 • Build environmental management support system for         • Reduce environmental impact of product transport           • Reduce CO2 emissions in Japan
   suppliers                                                   (CO2, NOx, PM emissions)
 • Investigate RoHS Directive six substance content in       • Set transport impact targets, and implement measures       FY2004 performance
   applicable products                                                                                                    CO2 emissions reduced by 20%
                                                             FY2004 performance                                           (compared to FY1990)
 FY2004 performance                                          Total CO2 emissions derived from transport:
 An environmental management                                 453 kt-CO2 /year (6% increase over FY2003)                       FY2005 target
 support system for suppliers established                                                                                 Reduce CO2 emissions by 3% (compared to FY1990)
 Completed investigation of RoHS Directive six substance         FY2005 target
 content in applicable products                              Reduce CO2 emissions per unit derived from product
                                                             transport (excluding on-premise transport) by at
                                                             least 2% (compared to FY2000)
     FY2006 target
 Achieve 100% green supplier ratio
     FY2007 target
 Survey to identify chemicals contained in products




                                           PAGE   P.30–31                                                  PAGE   P.51                                               PAGE   P.52–53



Nature-friendly Products & Eco-factories                     Nature-friendly Products & Eco-factories                     Nature-friendly Products & Eco-factories
[ Prevention of Global Warming ]                             [ Prevention of Global Warming ]                             [ Chemicals Management ]
0 Per Production Unit CO2 Emissions                          q Reduction of Greenhouse Gases                              w Reduction of Emissions

 • Reduce per production unit CO2 emissions                  • Reduce greenhouse gases other than CO2                     • Manage chemicals rigorously, and reduce emissions,
                                                               (HFC, SF6, PFC)                                              particularly of targeted substances
 FY2004 performance
 Domestic per production unit CO2 emissions                  FY2004 performance                                           FY2004 performance
 reduced by 24% (compared to FY1990)                         SF6 emissions reduced by 19%                                 Targeted substances reduced by 56%
 Overseas per production unit CO2 emissions                  (compared to FY2003)                                         (compared to FY2000)
 increased by 1% (compared to FY2003)                        PFC emissions reduced by 7%
                                                             (compared to FY1995) [semiconductors]
                                                                                                                              FY2005 target
                                                                                                                          Completely phase out emissions of prohibited
     FY2005 target
                                                                                                                          substances
 Reduce domestic per production unit CO2 emissions               FY2005 target
 by 20% (compared to FY1990) or achieve targets              Reduce SF6 emissions by 30% (compared to FY2003)             Reduce targeted substances by 30%
 based on individual targets set by industry                                                                              (compared to FY2000)
 organizations




                                           PAGE   P.52–53                                               PAGE   P.52– 53                                              PAGE   P.54–55




40    Hitachi Group CSR Report 2005


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Nature-friendly Products & Eco-factories [ Waste Reduction ]        Nature-friendly Products & Eco-factories [ Waste Reduction ]                    Worldwide Stakeholder Collaboration
e Reduction of Final-Disposal Waste                                 r Reduction of Amount of Waste Generated                                        [ Environmental Communication ]
                                                                                                                                                    t Information Disclosure

• Reduce final disposal site waste                                   • Reduce amount of waste generated                                              • Disclose information through public relations,
• Promote zero emissions initiatives                                                                                                                  advertising, environmental reports, and Web site, etc.
                                                                    FY2004 performance                                                              • Actively participate in environmental activities of other
FY2004 performance                                                  Waste generated reduced to 93%                                                    organizations, including exhibitions, lectures, local
Final disposal site waste reduced to 62%                            (compared to FY1998)                                                              community activities, etc.
(compared to FY1998)
                                                                        FY2005 target                                                               FY2004 performance
Zero emissions achieved at 71 sites
                                                                    Continued reduction of waste generated                                          35 environmental reports issued
                                                                                                                                                    by Group companies and individual facilities
    FY2005 target                                                   Set reduction targets for each site, and implement
Reduce final disposal site waste to 80% or below                     planned reduction                                                               Information provided on 48 Web sites
(compared to FY1998)                                                                                                                                of Group companies and individual facilities
                                                                                                                                                    Booth at Eco-Products International Fair 2004 in Malaysia
                                                                                                                                                    Booth at Eco-Products 2004 exhibition in Japan

                                                                                                                                                        FY2005 target
                                                                                                                                                    Use various opportunities to disseminate information
                                                                                                                                                    globally




                                                   PAGE     P.56                                                         PAGE       P.56                                                           PAGE     P.57



Worldwide Stakeholder Collaboration                                 Worldwide Stakeholder Collaboration                                             Sustainable Business Models
[ Environmental Communication ]                                     u Corporate Citizenship Activities                                              i Creation of Sustainable Business Models
y Dialog

• Hold “Environmental Town Meetings” at individual                  • Promote active participation in volunteer activities by                       • Expand collection and recycling of used products
  company or community level for discussion of                        employees
  environmental issues with local communities                       • Open facilities to the public                                                 FY2004 performance
• Foster exchanges of opinion through questionnaire                 • Promote activities with local NGOs                                            Tokyo Eco Recycle Co., Ltd.
  surveys, public comment sessions, and by accepting                • Conduct local tree-planting and cleanup activities                            Awarded Honda Prize for Development of Recycling
  study tours, etc.                                                                                                                                 Technology
                                                                    FY2004 performance
FY2004 performance                                                  64 facilities participated                                                          FY2005 target
Environmental Town Meeting held                                     in Ministry of the Environment Lights Down campaign                             Expand product recycling, lease and rental business
at Mito Works                                                       52 nature areas in Group company facilities were
Received 25 responses to Hitachi environmental activities           registered and opened to the public
questionnaire                                                       Provided support for middle school and university
                                                                    classes, etc.
    FY2005 target
Expand Environmental Town Meetings regionally                           FY2005 target
                                                                    Expand cooperation with local communities in
                                                                    environmental education activities




                                                   PAGE     P.57                                             PAGE       P.24–27, P.57                                                          PAGE     P.58– 60



Sustainable Business Models                                        ■ Card Legend
o Expansion of Businesses
  that Contribute to a Sustainable Society                                        Worldwide Stakeholder Collaboration                                          The four themes of the Hitachi Group’s
                                                                                                                                                               Sustainability Compass (Environmental Vision)
                                                                                  u Corporate Citizenship Activities
• Create structure and develop strategy for sustainable
  business models                                                                                                                                              Activity category
                                                                                   • Promote active participation in volunteer activities by
• Promote R&D that contributes to environmental protection                           employees
• Develop environmental solutions business                                         • Open facilities to the public                                             Specific activities
• Plan and implement environmental restoration* activities                         • Promote activities with local NGOs
                                                                                   • Conduct local tree-planting and cleanup activities
FY2004 performance
                                                                                   FY2004 performance
Launched Sustainable Business Model                                                64 facilities participated
committee under the Environmental Committee,                                       in Ministry of the Environment Lights Down campaign
and promoted the sharing of information                                            52 nature areas in Group company facilities were                            FY2004 performance
                                                                                   registered and opened to the public
HDRIVE awarded Eco-Products Prize
                                                                                   Provided support for middle school and university
                                                                                   classes, etc.
    FY2005 target
Expand environmental solution model business                                          FY2005 target
Promote the spread of sustainable businesses                                       Expand cooperation with local communities in                                FY2005–2007 targets
                                                                                   environmental education activities
* Environmental restoration activities: ecosystem restoration,                                                                                                 FY2004 performance evaluation
  independent power production, investment in renewable
  energies, funding assistance, etc.
                                                                                                                                                                       Achieved         Requires improvement
                                                                                                                       PAGE     P.24 – 27, P.57                Relevant page


                                              PAGE      P.58–60




                                                                                                                                               Environmental Activities of the Hitachi Group                      41


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Green Point Average: Results and Targets                                  Eco-Management                                        Collaboration, and Sustainable Business Models.
                                                                                     65GP
        FY2002: 377GP                               Sustainable                                     Eco-Management:             The period covered is fiscal 2002 to 2005. Progress
                                                  Business Models        80                         Risk Management
        FY2003: 441GP
        FY2004: 527GP (target: 533GP)                    56GP                                             86GP                  is rated on a scale of 0 to 5; a rating of 2 is given
        FY2005: 640GP                                                           40
                                           Worldwide
                                                                                                                                for an average level of achievement, 4 for meeting
Evaluation Categories                     Stakeholder                                                                           the goal, and 5 for surpassing the goal. The rat-
                                          Collaboration                               0                        Eco-mind
Eco-Management
Environmental management, action plan,          62GP                                                             72GP           ings are then multiplied by weights, based on each
environmental accounting                                                                                                        item’s relative importance. The maximum within
Eco-Management:
Risk Management                                                                                                                 each category is 100 “Green Points” (GPs), giving a
Compliance with laws and regulations,           Eco-factories:                                         Nature-friendly
setting of independent standards              Resource Recycling                                          Products              maximum possible rating of 800 for all 8 categories.
Eco-mind                                            71GP                  Eco-factories:
                                                                                                            56GP                Adjustments are made in cases where certain items
Employee training and education                                    Prevention of Global Warming
Nature-friendly Products                                                                                                        may not be applicable in a given business unit.
                                                                                     59GP
Implementation of product and                                                                                                   Starting in fiscal 2002, the Green Point scores were
service assessment, green procurement,
distribution                                                                                                                    added as one of the criteria for evaluating business
                                         Green Point Results and Targets
Eco-factories:
Prevention of Global Warming
                                                                                                                                performance in the Hitachi Group. The results are
                                         (GP)
Energy saving at operation sites         700
                                                                                                               640
                                                                                                                                used in evaluating appropriate performance for
Eco-factories:
Resource Recycling                       600
                                                                                                                                each business group, thus serving as an incentive
Waste reduction,                                                                            533
                                                 Performance                                  527
                                                                                                               Target           for enhancing environmental activities, in addition
chemical substance management            500                            441                                                     to improving social contributions and profitability.
Worldwide Stakeholder
Collaboration                            400           377
Information disclosure,                                                 426                                                     Based on this system, the management team within
dialog and community activities          300                                                                                    each business group is able to check how it is doing,
Sustainable Business Models
Management systems, planning,              0                                                                                    and this leads to further improvements and greater
product recycling,                                     2002             2003                2004              2005      FY      efforts to achieve the environmental targets.
environmental restoration activities
                                                                                                                                A score of 527 GPs was achieved in fiscal 2004, a
                                                                                                                                24% increase over 2003, but 6 points short of the
                                         Evaluation System
                                                                                                                                target of 533 GPs set for the year. The Sustainable
                                         GREEN 21 (Version 2) Evaluation Criteria                                               Business Models† category showed major improve-
                                         To assure continuous improvements in our environ-                                      ment, with progress made in sharing the concepts
                                         mental management activities, Hitachi utilizes the                                     of risk management and sustainable business due
                                         GREEN 21 ( Version 2) evaluation system to rate ac-                                    to strengthened environmental management. To
                                         tivities according to fixed criteria. In the system, for                                achieve our fiscal 2005 target, we will redouble
                                         the fiscal year being evaluated, points are given for                                   our efforts in such categories as Eco-Products,
                                         procedures put in place to achieve environmental                                       where we aim to further expand eco-products and
                                         targets, the details established for each target, and                                  promote green procurement, and Eco-Factories,
                                         level of achievement. This system serves as a tool                                     where we will carry out planned investment aimed
                                         for making environmental activities more efficient                                      at achieving global warming prevention targets.
                                         and for assisting the implementation of environmen-
                                                                                                                                Incentives for Promoting Environmental Activities
                                         tal management within each operations unit.
                                         The GREEN 21 system evaluates 53 distinct items                                        GREEN 21 Award Program
                                         in the following eight Sustainability Compass catego-                                  The Hitachi Group established its GREEN 21 Award
                                         ries: Environmental Management, Risk Management,                                       Program in 2004 to pay recognition to progressive
                                         Eco-mind, Nature-friendly Products, Prevention                                         environmental conservation activities.
                                         of     Global         Warming               (Eco-factories),          Resource         The aim of the GREEN 21 Award Program is to
                                         Recycling (Eco-factories), Worldwide Stakeholder                                       provide an incentive for top-level environmental ac-
                                                                                                                                tivities, and serve as a tool for promoting GREEN 21
                                                                                                                                and other environmental activities through commu-
PAGE                                     2004 GREEN 21 Award Program: Prizewinners
GREEN 21 Grand Prize: Prizewinning                                                                                              nications activities within the Group. Such items as
Activity Details                          Prize name           Prizewinning facility               Prizewinning activity
                                                                                                                                flagship eco-friendly products and technology, pro-
Hitachi Cable Group
                                          Grand Prize     Hitachi Cable, Ltd.               Creation and operation of a used
(See p. 58)
                                                                                            cable recycling system, and         gressive examples of energy- and resource-saving
                                                                                            development of RoHS-compliant       in facilities, and dialog with society through environ-
                                                                                            cables
                                                                                                                                mental activities will be assessed comprehensively
                                          Prize for       Hitachi, Ltd.                     Environmental impact reduction
                                          Excellence      Mito Building Systems             activities based on eco-product                                       on their novelty, impact,
                                                          Division, Urban Planning and      development
                                                          Development Systems
                                                                                                                                                                  sustainability, external
                                          Encourage-      Hitachi Global Storage            Packaging reuse program                                               reputation, GP totals,
                                          ment Prize      Technologies, Inc.                                                                                      improvement rates and
                                                          (San Jose, USA)
                                                                                                                                                                  so forth, and awarded
                                          Encourage-      Taoyuan Works,                    Social contribution activities in
                                          ment Prize      Taiwan-Hitachi                    the local community, and facility                                     accordingly.
                                                                                            waste reduction and recycling

                                                                                                                                GREEN 21 Award Program Ceremony

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FY2004 Environmental Activities

Because the Hitachi Group’s business covers such a diversity of fields with a great many categories requiring
environmental management, we are implementing environmental activities aimed at reducing environmental
impact over the entire Group. The Group drafts environmental policies which are shared by all of its 985 con-
solidated subsidiaries and 167 affiliated companies, and seeks to ensure and promote their implementation.
We established our Group-wide Environmental Management Operations Committee in 1999, and have since
been building our environmental management system, putting particular emphasis on fostering a shared “eco-
mind” approach. We are also implementing rigorous information management and sharing with respect to
CO2, waste and other environmental impact data aggregation and green procurement systems, and leverag-
ing an original IT-based system to carry out speedy, effective and credible environmental management.
This report presents the results (as of March, 2005) of our evaluation of the environmental impacts and activi-
ties of 275 Group companies (Hitachi, Ltd., together with 238 domestic and 36 overseas subsidiaries) that
account for about 90% of the environmental impacts of the Hitachi Group’s 985 consolidated subsidiaries,
based on such data as the number of employees and the amounts of energy consumed, waste generated,
and chemical emissions etc.
Environmental activities in fiscal 2004 were focused mainly in the following categories.



    Creation of rules for eco-friendly manufacturing (Environmental CSR-Compliant Monozukuri
    [PLM and Total SCM] Standards) and system for managing chemicals contained in products
    (Integrated Management System for Chemical Substances Contained in Products)                                  PAGE
                                                                                                                  Integrated Management System for
    To ensure Group-wide application of eco-friendly manufacturing, we are pressing ahead with the restruc-       Chemical Substances Contained
    turing of systems and processes related to the management of the chemical content of products. The            in Products
                                                                                                                  (See p. 14–15)
    Hitachi Group Environmental CSR-Compliant Monozukuri (PLM and Total SCM) Standards were estab-
    lished as common rules for Group companies, a system was created, and an Integrated Management
    System for Chemical Substances Contained in Products was introduced. Hitachi, Ltd.’s Disk Array
    Systems Division, Hitachi Home & Life Solutions, Inc., and Hitachi Maxell, Ltd. were chosen as model
    cases for implementation of the system.


    Expansion of eco-products
    In fiscal 2004, we added a function for calculating environmental efficiency to our Design for Environment
    (DfE) evaluation system, making it easier to calculate environmental efficiency. The factor (a calculation
    of efficiency improvements),was calculated for 11 products, and the ratio of total products registered as
    eco-products rose to 72%.


    Achievement of Group target for final disposal site waste
    With respect to the Group target for final disposal site waste of reduction to 70% or below by fiscal 2010
    (compared with fiscal 1998), reduction to 62% has been achieved for the Group as a whole, with about
    76% of facilities reaching the target.


    Environmental Town Meeting held by the Mito Building Systems Division of Hitachi Ltd.’s Urban Planning
    and Development Systems Group
    This was the fourth Environmental Town Meeting† held for discussion of environmental issues with local
    community stakeholders. In fiscal 2004, the venue was switched from Tokyo, where previous meetings
    had been held, to Hitachinaka City in Ibaraki Prefecture, and featured a tour of Hitachi’s Mito factory,
    during which time Hitachi personnel answered questions from participants and listened to their views.
    Hitachi is eager to engage local communities in which it has operations, and this meeting yielded the kind
    of results that could only be obtained from a local community event, results that will be put to good use
    in enhancing future communications with stakeholders.

                                                                                                                                               43


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Environmental Impact Data for Corporate Activities (FY2004)
This chart shows resource inputs and environmental impacts pertaining to
the fiscal 2004 corporate activities of the 273 domestic and overseas
Hitachi Group companies covered by this report. Input includes the total amount of energy,
materials and chemicals, and water consumed in product manufacturing and other corporate activities.
Output includes the total amount of products, CO2, chemical substances, waste,
and wastewater generated from corporate activities.




                                                             Total energy consumption (crude oil equivalent)                                                          1,551,000 kl
                             Domestic Corporate activities




                                                                                                          Electricity                             4.69 billion kWh *0.54% (FY2004)
                                                                                                          Oil (crude oil equivalent)                    364,000 kl *0.15% (FY2004)
                                                             New energy types                             Electricity                                               70 million kWh
                                                                                                          Heat                                                            16,000 kl


                                                             Total input of materials
                                                             Metals 1,266 kt                              Iron (including steel sheeting)                                    722 kt
                                                                                                          Stainless steel                                                     34 kt
                                                                                                          Aluminum                                                            77 kt
                                                                                                          Copper                                                             287 kt
                                                                                                          Other nonferrous metals                                            146 kt
                                                             Plastics 191 kt                              Thermoplastics                                                     155 kt
                                                                                                          Thermohardened plastics                                             36 kt
                                                             Rubber                                                                                                            5 kt
                                                             Other materials                                                                                                 350 kt
                                                             Chemical substances                          Handling volume for chemical substances covered under the PRTR law 215 kt
                                                                                                          Handling volume for ozone depleting substances                       27 t
                                                                                                          Handling volume for greenhouse gases                              1,296 t




                                                             Water consumption                                                                                    60.29 million m3
                                                                                                          Surface water                                            7.17 million m3
                                                                                                          Industrial water                                        27.70 million m3
                                                                                                          Groundwater                                             25.43 million m3




                                                             Total energy consumption (crude oil equivalent)                                                            455,000 kt
                             Overseas Corporate activities




                                                                                                          Electricity                                             1.48 billion kWh
                                                                                                          Oil (crude oil equivalent)                                      77,000 kl
                                                             New energy types                             Electricity                                               80 million kWh


                                                             Total input of chemical substances
                                                             Chemical substances                          Handling volume for chemical substances covered under the PRTR law 20.2 kt




                                                             Water consumption                                                                                      8.35 million m3
                                                                                                          Surface water                                            2.93 million m3
                                                                                                          Industrial water                                         5.19 million m3
                                                                                                          Groundwater                                                  230,000 m3




44   Hitachi Group CSR Report 2005


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                   CO2 emissions                                                                      2,586 kt (2,586kGWPt †) *0.2% (FY2004)            * Ratio of national total, and fiscal
                                                                                                                                                        year used for comparison. Source
                                                                                                                                                        for the total figures for Japan
                                                                                                                                                        was the FY2003 PRTR results
                                                                                                                                                        listed in the “Annual Report on
                                                                                                                                                        the Environment in Japan 2004.”
                                                                                                                                                        (Ministry of the Environment)

                   Total volume of products manufactured and sold                                                2,463 kt including packages
                   Volume of chemical substances discharged or transferred
                   Discharge or transfer volume for chemical substances covered under the PRTR law                          5.8 kt *1.1% (FY2003)
                   Volume of discharge for ozone depleting substances                                                           6.5 t (0.4 ODPt †)
                   Greenhouse gas emissions 23 t (412 kGWPt) SF6                                                                14 t (341 kGWPt)
                                                               PFCs                                                                9 t (71 kGWPt)
                                                               HFCs                                                           0.05 t (0.6 kGWPt)
                   Substances subject to emissions regulations SOx                                                          548 t *0.05% (FY1999)
                                                               NOx                                                        2,969 t *0.25% (FY1999)
                   Total volume of waste generated                                                                                           561 kt
                   Waste generated                                                                                        561 kt *0.09% (FY2001)
                   Waste reduction                                                                                          45 kt *0.02% (FY2001)
                   Recycling (rate) 483 kt (93%)               Volume re-used                                                        110 kt (23%)
                                                               Volume of material recycled                                           336 kt (70%)
                                                               Volume of thermal recycled                                               37 kt (7%)
                   Final disposal (rate)                                                                             33 kt (6%) *0.06% (FY2001)




                   Total volume of wastewater                                                                                   52.35 million m3
   Volume of       Breakdown of wastewater by destination      Public waters                                                    41.59 million m3
 water reused                                                  Sewerage system                                                  10.76 million m3
94.79 million m3
                   Water quality                               BOD                                                                            384 t
                                                               COD                                                                            266 t



                   CO2 emission                                                                                         1,346 kt (1,346 kGWPt)




                   Volume of chemical substances released or transferred
                                                               Discharge or transfer volume for chemical substances covered under the PRTR law 0.8 kt
                                                               SOx                                                                            126 t
                                                               NOx                                                                            109 t
                   Total volume of waste generated                                                                                           150 kt
                                                               Waste generated                                                               150 kt
                                                               Waste reduction                                                                33 kt
                                                               Recycling (rate)                                                       58 kt (50%)
                                                               Final disposal (rate)                                                  59 kt (39%)


                   Total volume of wastewater                                                                                     8.21 million m3
   Volume of       Breakdown of wastewater by destination      Public waters                                                     3.63 million m3
 water reused                                                  Sewerage system                                                   4.57 million m3
3.47 million m3
                   Water quality                               BOD                                                                            193 t
                                                               COD                                                                            232 t


                                                                                          Environmental Impact Data for Corporate Activities (FY2004)                                     45


                                                                                                                                                                  next eco
Eco-mind & Management
Eco-mind: The environmental awareness of each and every Hitachi employee.
Eco-management: The system for supporting the environmental activities of those employees.
The Hitachi Group implements environmental management
through solid teamwork linking the individual with the organization.




                                                                                                                                         Committee to be implemented and communicated
                                              Eco-Management
                                                                                                                                         throughout the organization. The Environmental
                                              To promote environmental initiatives, the Hitachi                                          Committee (and each sub-committee) works to
                                              Group has built an environmental management                                                attain environmental goals and tasks, by conduct-
                                              system for consolidated reporting. Hitachi’s Senior                                        ing investigations and developing useful evaluation
                                              Executive Committee for Environmental Policy, a                                            methodologies and techniques.
                                              managerial level committee chaired by the presi-
                                              dent, assesses and determines the environmental                                            It also establishes the organizations required for
                                              policies and strategies for the entire Hitachi Group.                                      implementing environmental activities in each
                                                                                                                                         business, and designates environmental opera-
                                              The environmental policies adopted here are dele-                                          tions officers within the Hitachi’s Group’s business
                                              gated to the Environmental Management Operations                                           groups, subsidiaries and affiliated companies who

Senior Executive Committee for                Environmental Management System
Environmental Policy:
Assesses and sets environmental manage-
ment policies at executive management                                           Senior Executive                    Environmental
level (annual).                                  President                         Committee                         Management
Environmental Management Operations                                         for Environmental Policy             Operations Committee               Business groups                Production facilities
Committee:                                                                                                                                        Group directors, CEOs              Operations heads
                                                                  Corporate                                                                          Environmental                    Environmental
Enforces environmental policies and




                                                                                                                                                                                                                 Regional Environmental Committees
                                                                Environmental                   Eco-Management                                     operations officers              management officers
develops environmental information and                          Policy Division                    Committee                                                                       Affiliated companies
activities (semi-annual).
Environmental Committee:                                                                                                                                                                 Presidents
                                                                                                   Eco-Products                                                                        Environmental
Assesses environmental issues and draws
                                                                                                    Committee                                                                      management officers
up policies (semi-annual).
Sub-committees:                                                 Environmental
                                                                 Committee                                                                     Major affiliated companies     Production facilities
Discuss issues, draft policy (as required).
                                                                                                   Eco-Factory                                         Presidents              Operations heads
Main themes: Eco-Management (environ-                                                              Committee                                         Environmental               Environmental
mental management, educational activities,                                                                                                         operations officers        management officers
dissemination of information), Eco-Products
                                                                                                                                                                             Affiliated companies
(promotion of eco-product development,                                                        Sustainable Business
                                                                                                                                               Hitachi, Ltd.,                      Presidents
reduction of harmful substances used                                                               Committee
                                                                                                                                               985 consolidated subsidiaries     Environmental
in products), Eco-Factories (reduction of      Hitachi                                                                                         and 167 affiliated companies management officers
environmental impacts of production),
Sustainable Business (support for the
creation of sustainable business models,
strengthening of related activities).         Status of ISO 14001 Certification

                                                                              Japan                                 Overseas                                 Japan                                          Asia                                     40
                                                                                                                                                               Hokkaido/Tohoku regions              20      America                                  14
                                                                 Production       Non-production        Production         Non-production      Total           Kanto/Koshinetsu regions            148      Europe                                    5
                                                                    Sites             Sites                Sites               Sites                           Hokuriku/Chubu regions               19
                                                                                                                                                               Kansai region                        16
                                                  No. of
                                                                    155                 63                  55                     4           277             Chugoku/Shikoku/Kyushu regions       15
                                              Certified Sites
                                                                                                                                                               Total                               218



                                              Environmental Education and Training System                         General employees                    Administration               Executive management level

                                               Group training                                                       Auditor training                       Head auditor training
                                                                                        Specialized education
                                                                                                                         Eco-Products development training

                                                                                             General education            Eco-mind education (via the Internet)            Education about environmental management


                                               Training for each company/               Specialized education      Training for employees working in certain operations
                                               site based on ISO 14001
                                                                                             General education         Eco-mind education for each company/site



46      Hitachi Group CSR Report 2005


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Environmental Accounting
Cost                                                                                                                                                                                                                     (Unit: billion yen)

                                                                                                                                                                                      Costs
                      Item                                                          Overview
                                                                                                                                           FY2000               FY2001               FY2002             FY2003                FY2004
            Business area costs           Maintenance of equipment with low environmental impact, depreciation, etc.                               35.96                38.21               35.00               29.02              31.82
            Upstream/downstream costs     Green procurement expenses, recovery and recycling of products and packaging,                               3.58               3.27                 2.40               2.76                2.69
                                          recycling expenses
            Management activity costs     Labor costs of environmental management, implementation and maintenance of                                  8.35              11.09               10.41               12.29              10.76
                                          environmental management system
 Expenses




            Research and development      R&D for the reduction of environmental loads caused by products and production                           30.03                34.36               38.21               35.48              39.51
            costs                         processes, product design expenses
            Social activity costs         Environmental improvements such as afforestation and beautification, PR and publicity                        3.23               0.53                 0.52               0.37                0.61
                                          expenses
            Environmental damage costs    Environment-related measures, contributions and levies                                                      0.93               0.82                 0.86               0.51                2.23
            Total expenditure                                                                                                                      82.08                88.28               87.40               80.43              87.62
            Total investment              Investment in energy-saving equipment and equipment that directly reduces environ-                       21.25                18.01               14.97               10.17              14.10
                                          mental loads

Depreciation expenses on equipment investments are calculated using the straight-line method over 5 years.

Effect
Economic Effect*                                                                                                                                                                                                         (Unit: billion yen)

                                                                                                                                                                                     Effects
                      Item                                                          Overview
                                                                                                                                           FY2000               FY2001               FY2002             FY2003                FY2004
 Net income effect                        Profit on sales of recycled waste                                                                            5.58               5.09                 6.08               4.06                6.25
 Reduced expenses effect                  Reduction in material costs due to resource saving, reduction in waste treatment costs                   12.03                13.56               12.11               11.67              12.77
                                          due to reduced waste, reduction in power expenses due to energy saving
 Total                                                                                                                                             17.61                18.65               18.19               15.73              19.03

Physical Effect

                                                                                                                                                       Amount reduced (parentheses: equivalent no. of households)
                      Item                                                          Overview
                                                                                                                                           FY2000               FY2001               FY2002             FY2003                FY2004
 Reduction in the amount of energy        Decrease in amount of energy used due to installation of energy-saving equipment             169 million kWh 331 million kWh 189 million kWh 127 million kWh 125 million kWh
 used during production                                                                                                                (49,000)        (95,000)        (55,000)        (37,000)        (36,000)
 Reduction in the amount of final          Decrease in final waste output volumes due to separation and recycling activities             6,051 t               7,369 t             5,210 t             5,612 t            5,922 t
 waste disposal                                                                                                                        (20,000)              (25,000)            (18,000)            (19,000)           (20,000)
 Reduction in the amount of energy        Decrease in energy requirements of Hitachi products                                          844 million kWh 552 million kWh 742 million kWh 507 million kWh 730 million kWh
 consumed during product usage                                                                                                         (243,000)       (159,000)       (214,000)       (146,000)       (210,000)

Benefits on equipment investment are calculated using the straight-line method over 5 years, as with costs
* Economic Effect includes the following items.
1. Net income effect: Benefits for which there is real income, including the sale of resalable material and income from environmental technology patents.
2. Reduced expenses effect: Reduction in electricity and waste treatment expenses arising from environmental impact reduction activities.

Efficiency of Environmental Impact Reduction*
                                                                     FY2000                                FY2001                          FY2002                                FY2003                             FY2004
 Reduction in energy used during production              41 million kWh/billion yen            66 million kWh/billion yen    53 million kWh/billion yen            44 million kWh/billion yen           33 million kWh/billion yen
 Reduction in amount of waste for final disposal          1,170 t/billion yen                   1,750 t/billion yen           1,200 t/billion yen                   1,690 t/billion yen                  1,690 t/billion yen

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




                  Cost Breakdown                                Investment Breakdown                                 Economic Effect Breakdown                                            Investment Breakdown
                by Industry Segment                               by Industry Segment                                   by Industry Segment                                                 by Countermeasure
                                                                                                                                                                                Other 5                Prevention of Global Warming 29
                          1                                                    2     8                                             1      11
                                    14
                                                                                             8                                                    2
            28                            8

                                                           50                                       28               55                                 22

            8
                                     41                                                                                                        9
                                                                                     4



                   Information & Telecommunication Systems                     Electronic Devices                                      Power & Industrial Systems          Pollution Prevention 60                  Waste Reduction 6

                   Digital Media & Consumer Products                           High Functional Materials & Components                  Logistics, Services & Others



                                                                                                                                                                                          Eco-mind & Management                        47


                                                                                                                                                                                                                next eco
                           are responsible for managing environmental mat-          Specialized education is being offered to train envi-
                           ters within each organization. Both within Japan         ronmental management system auditors, as well as
                           and overseas, the Hitachi Group shares informa-          design and manufacturing personnel, in areas use-
                           tion about laws, regulations, market trends, and         ful for the development of Eco-Products. Training
                           reports on relevant topics. From fiscal 2005, it has      based on ISO 14001 is also offered in order to
                           also been working to upgrade its environmental           promote environmental activities and to reduce the
                           management system in its facilities in Europe and        use of resources and energy at our facilities.
                           China to promote the sharing of information and          Specialized trainings and emergency drills are also
                           enhancement of environmental activities within the       conducted for employees working in operations
                           Group in each location, and plans to implement the       that have significant environmental impacts.
                           same measures in the United States and in other
                                                                                    Our Approach to Environmental Accounting
                           Asian locations.
                                                                                    To promote greater effectiveness and continual
                           ISO 14001 Environmental Management System
                                                                                    improvements in our environmental investments
                           The Hitachi Group addresses environmental issues         and activities, Hitachi introduced an environmental
                           through its environmental management system,             accounting system in 1999. Its purpose is to help
                           which is based on the internationally-recognized         people understand our corporate approach to the
                           ISO 14001 standards.                                     environment, by providing information on how we
                           We started obtaining ISO 14001 certification in           allocate management resources for environmental
                           July 1995, and all of our manufacturing operations       activities, and on the value created through environ-
                           had obtained it by the end of fiscal 1999. Our non-       mental technologies and Eco-Products.
                           manufacturing operations, such as software and           In addition to investments in plant and equipment
                           service companies, did likewise by the end of fiscal      for environmental purposes, which we have been
                           2002. Because of changes in the companies cov-           reporting since fiscal 1997, the costs covered in our
                           ered under consolidated reporting and in activities      environmental accounting also include ordinary ex-
                           covered, the number of ISO 14001-certified sites          penditures, such as for research and development,
                           currently totals 277.                                    as well as the costs of operating and managing envi-
                           To further enhance environmental management              ronmental equipment and facilities. Our activities can
                           within the Group, we are currently building a new        be understood both in terms of economic benefits,
                           environmental management system that includes            which can be evaluated in monetary terms, and ma-
                           environmental operations sections in each business       terial benefits, which can be evaluated based on the
                           group and Group company. Each site pursues con-          degree to which burdens on the environment are
                           tinual improvements, undergoing internal audits to       controlled. Economic benefits are calculated based
                           assess progress, and also receiving regular inspec-      on tangible data. Material benefits—which result
                           tions by external certification bodies. Internal audits   from Hitachi’s fundamental principle of contribution
                           are conducted by approximately 2,000 accredited          to society by developing superior technologies—are
                           auditors who have undergone specialized training.        evaluated based not only on the lower environmen-
                           Since 1973, environmental audits have continually        tal impacts during the manufacturing process but
                           been included as a part of management auditing of        also during the use of our products. We strive for
                           business operations.                                     efficiency in reducing environmental impacts, using
                                                                                    an “environmental burden reduction ratio” to evalu-
                           Environmental Education
                                                                                    ate the extent to which each type of environmental
                           We provide general education for all of our em-          burden is reduced per unit of expenditure.
                           ployees aimed at nurturing an eco-mind approach          In fiscal 2004, environmental activity costs rose
                           through raising their knowledge and awareness of         9%, but the economic benefits yielded by them
                           environmental matters, and specialized education         rose 21%. R&D costs related to research, develop-
                           for the learning and implementation of specific envi-     ment and design for reduction of the environmental
                           ronmental technology.                                    impact of products accounted for 45% of total en-
                           Management-level personnel are given more gen-           vironmental activity costs, and yielded reductions,
                           eral learning opportunities than in the past, giving     in terms of energy consumed in using products, of
                           them a keen appreciation of the importance of en-        730 million kWh.
                           vironmental management which is then reflected in         Hitachi’s Senior Executive Committee for Environ-
                           management policies. Training of general employ-         mental Policy, a managerial level committee chaired
                           ees is being promoted through the Internet, with         by the president, assesses and determines the
                           some 32,000 employees having completed training          environmental policies and strategies for the entire
                           courses as of March 2005.                                Hitachi Group.



48   Hitachi Group CSR Report 2005


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Nature-friendly Products & Eco-factories
The Hitachi Group estimates the environmental impact of its
products over their entire lifecycles from the initial design
stage, selecting the optimal methods based on such estimates                                        Eco-Product Registration Trends
to create environment-friendly “Eco-Products.”                                                      (%) 100                                                                                 817                    1,000 (items)
                                                                                                                                                                                761




                                                                                                                                                                                                                            (Bracketed figures show model type numbers)
                                                                                                                                                                                          (3,294)
The Group’s various sites (factories and offices) also base their                                                                    80                                        (2,864)                              800




                                                                                                     Eco-Product registration (%)
operations on Hitachi’s Eco-Factory concept, actively striving                                                                                                       568
                                                                                                                                                                   (2,056)
                                                                                                                                                                                             72        (80)
                                                                                                                                                                                66
to contribute to reduce their overall environmental impact.                                                                         60                                                   Target                    600




                                                                                                                                                                                                                            Registered Eco-Product number
                                                                                                                                                                              (60)        (70)
                                                                                                                                    40                  240          46                                            400
                                                                                                                                                      (1,504)
                                                                                                                                             29                    (30)
                                                                                                                                    20                       22                                                    200
                                                                                                                                            (714)
                                                                                                                                                      (15)
Nature-friendly Products                                                                                                                        3
                                                                                                                                     0                                                                             0
                                                                                                                                            2000      2001         2002      2003         2004         2006 (FY)
Eco-Products
                                                                                                                                                                             Actual value           Target value
                                                          Approach to Complete Life Cycle Product Design
Expanding Eco-Products                                                                                                                   Resource Conservation

Design for Environment                                      Component
                                                                                   Production                                       Distribution                  Usage
                                                                                                                                                                                         Recovery
                                                                                                                                                                                            and
                                                                                                                                                                                                                        Proper
                                                             Materials                                                                                                                                                 Disposal
                                                                                                                                                                                        Disassembly
To minimize the environmental burden at each stage
of a product’s life cycle,† the Hitachi Group devel-                                                                                      Reuse and Recycling

ops products based on our Design for Environment
                                                                                                  Design for Environment Assessment System
Assessment System. This is an evaluation system
                                                           Assessment criteria: Resource reduction, product longevity, resource recycling, ease of disassembly and processing,
we have applied since 1999 that incorporates                                    environmental safety, energy efficiency, information disclosure, packaging
Design for Environment (DfE) concepts. Products
are assessed with respect to eight criteria. We de-
                                                            Definition of Environmental Efficiency
fine “Eco-Products” as those products that achieve           • Prevention of Global Warming Efficiency =                                                   • Resource Efficiency =
                                                                      Product lifespan*1 × Product function                                                         Product lifespan*1 × Product function
at least 2 on a scale of 0 to 5 for each of these eight
                                                                      Volume of greenhouse gas emissions                                                   ∑ Resource value coefficients × (new resources used
criteria, as well as an average score of 3 or higher.                  throughout the lifecycle of a product                                                 in lifecycle*2 + resources disposed in lifecycle*3)

As of March 2005, 817 products (3,294 different
                                                            Definition of Factors
model types) qualified as Eco-Products, account-             • Prevention of Global Warming Factor =                                                      • Resource Factor =
ing for 72% of our overall sales volume. We identify                 Prevention of global warming efficiency                                                                 Resource efficiency
                                                                         for the product being evaluated                                                              of the product being evaluated
our Eco-Products by affixing an “eco” symbol, and                     Prevention of global warming efficiency                                                      Resource efficiency of reference product
                                                                               for reference product
information about them is made available to cus-
                                                                                                                                                                                        *1. The specified usage period for
tomers through catalogs, Web site and so forth.
                                                                                                                                                                                        a product
                                                          Environmental Efficiency when carrying out DfE
                                                                                                                                                                                        *2. The volume of resources used
Environmental Efficiency                                   assessment, and we have since been applying this                                                                              to manufacture a product minus
To utilize resources more effectively, we have            function throughout the Group.                                                                                                the volume of resources reused
                                                                                                                                                                                        or recycled
introduced an “Environmental Efficiency” index
                                                          Progress in Management                                                                                                        *3. The volume of resources used
that shows the value created while controlling en-
                                                          of Product Chemical Content                                                                                                   to manufacture a product minus
vironmental impacts and resource consumption.                                                                                                                                           the volume of resources with the
                                                                                                                                                                                        potential for reuse or recycling
This index evaluates products by calculating two          Compliance with the RoHS Directive
measures of efficiency with respect to a product’s         In line with the European Union’s RoHS Directive†                                                                             WEB
                                                                                                                                                                                        Hitachi Group’s Eco-products
value in terms of its functioning and lifespan. The       (on the restriction of the use of certain hazardous                                                                           http://greenweb.hitachi.co.jp/
first measure is the ratio of the product’s value to       substances in electrical and electronic equipment),                                                                           ecoproducts/index.html
                                                                                                                                                                                        (Only in Japanese)
the amount of greenhouse gases released during            the Hitachi Group is working to completely eliminate
the life cycle of the product (Prevention of Global       six chemical substances (hexavalent chromium,
Warming Efficiency); the second is the ratio of the        lead, cadmium, mercury, PBB†, and PBDE†). As
product’s value to the sum of the amount of new re-       a result of the Group’s technology development                                                                                Our new “eco” symbol
sources that are extracted from the Earth for its pro-    efforts and the cooperation of suppliers, lead- and                                                                               Previous                     New

duction and the amount of waste remaining when            hexavalent chromium-free parts are now used, and
the product is disposed of (Resource Efficiency).          as of March 2005, most new products now com-
We also track product efficiency improvements,             ply with the RoHS Directive, with RoHS-compliant                                                                                        Example in use
using as yardsticks two factors—the “Prevention           hard disk drives (HDDs) and other products already
of Global Warming Factor” and the “Resource               being shipped, and remaining non-compliant prod-
Factor”—that measure improvements in efficien-             ucts slated to be replaced with new products in
cies with respect to a reference year. In fiscal 2004,     due course. As a supplier, we also ensure that the
                                                                                                                                                                                        Addition of the word “eco,” and us-
we added an Environmental Efficiency function              cables and other materials we supply are RoHS-
                                                                                                                                                                                        age that clearly shows the product
to DfE assessment to enable the calculation of            compliant.                                                                                                                    to be an Eco-Product


                                                                                                                                                    Nature-friendly Products & Eco-factories                                            49


                                                                                                                                                                                                    next eco
                                           Examples of Our Eco-Products


                                              Magnetocardiograph System MC-6400
                                              This device safely examines heart activity without using X-rays, ultra-
                                              sound or strong magnetic fields. It measures the faint magnetic fields
                                              generated naturally by the electrophysiological activity of the heart. It
                                              also reduces a patient’s stress: a patient lies down on a bed fully-
                                              dressed, sensors are positioned above the chest, and the measure-
                                              ment is completed in approximately 30 seconds.

                                              Key Environmental Features
                                              By improving insulation to reduce helium evaporation, we have
Degree of Improvement                         achieved a 50% reduction over earlier models in the amount of liquid
of Environmental Efficiency (Factors)          helium required to cool the superconducting sensors, which accounts
(Reference product: prototype)
                                              for the majority of running costs. Size and mass of the system were         Hitachi High-Technologies Corporation
Prevention of Global Warming Factor 2.1
                                              also reduced by 41% and 12%, respectively.                                  Magnetocardiograph System MC-6400
Resource Factor                     2.4



                                              Super-Compact 7.2 kV Switchgear
                                              This is a high-voltage switchgear for the steady supply of electricity at
                                              6,000 volts from power lines to offices and factories. Switchgear per-
                                              forms a similar role to the breakers found in ordinary households, but
                                              requires more space due to the large amount of electricity it handles.
                                              The key to boosting environmental performance is reduction of size.

                                              Key Environmental Features
                                              We succeeded in reducing installation space by one-third through em-
Degree of improvement                         ploying advanced insulation technology, resulting in a lighter product
of Environmental Efficiency (Factors)          (66% the weight of previous models) and concomitant resource sav-
(Reference product: 1998)
                                              ings. The use of a modular design also enables the sharing of materials,
Prevention of Global Warming Factor 6.5
Resource Factor                     8.3       greater reusability, and greater transportability.



                                              “Fresh Kyu-Hai Shirokumakun”
                                              Room Air Conditioner RAS-S28T
                                              This air conditioner won the Energy Conservation Center Chairman’s
                                              Prize in 2004 for its energy efficiency and heating capabilities, which
                                              are among the highest in the industry.

                                              Key Environmental Features
                                                                                                                           Double accelerator system refrigerant compressor
                                              The double accelerator system (two-stage compression gas injection
                                              system) (a world first in inverter air conditioners as of November 16,                                  Gas injection
                                                                                                                                                     Improved efficiency
                                              2004, developed jointly with Tohoku Electric Power Co., Inc.,) and PAM                                 through recycling    Mixed
                                                                                                                             High       Discharge    vaporized            liquid
                                                                                                                           pressure
                                              vector control system used in the compressor and refrigeration cycle                                   refrigerant          and
                                                                                                                                                     that would           vaporized
                                              at the heart of the air conditioner deliver dramatic energy efficiency                                  otherwise be lost    refrigerant

                                              and heating capabilities. The purification and deodorization of room air      Medium                                         Separator
                                                                                                                           pressure
Degree of improvement                         is realized through a combination of new technologies—the Kyu-Hai                                      Liquid refrigerant   Separating
                                                                                                                                                     suitable for heat    liquid from
of Environmental Efficiency (Factors)          ventilation control system that adjusts the dampers in the ventilation                                 absorption           vaporized
(Reference product: 1994)                                                                                                                                                 refrigerant
                                              unit, a newly developed nano-titanium catalyst air filter, and a nano-          Low
Prevention of Global Warming Factor 12.6                                                                                   pressure        Intake
Resource Factor                      4.0      titanium deodorizing heat exchanger.



                                              Disk Array Subsystem
                                              SANRISE Universal Storage Platform
                                              (Overseas name TagmaStore Universal Storage Platform)
                                              This system uses storage virtualization technology to integrate and
                                              centrally manage multiple storage devices of different types as a single
                                              virtual device, enabling speedier, safer, more reliable and efficient data
                                              management and utilization that reduces administrative burden and
PAGE                                          addresses the rapidly growing storage needs of our advanced informa-
Integrated Management System for
Chemical Substances Contained in              tion-based society.
Products (see p. 14)
                                              Key Environmental Features
                                              Hitachi’s Integrated Management System for Chemical Substances
Degree of Improvement                         Contained in Products (see p. 14) was applied to this product, which
of Environmental Efficiency (Factors)          also features improved energy efficiency, Ni-H batteries, and lead-free
(Reference product: 2000)
                                              production processes, and complies with the EU’s RoHS Directive†
Prevention of Global Warming Factor 26.1
Resource Factor                     25.8      (from April 2005).




50      Hitachi Group CSR Report 2005


         next eco
                                                                                           CO2 Emissions from Transportation
                                                                                           Total Transportation volume (kt-km/year)      CO2 emissions (kt/year)
                                                                                                        595
                                                                                            3,000                                                          600 CO2 emissions
                                                                                                                                                 453           from transportation
                                                                                                                                      425
                                                                                            2,000                  344      362                            400
                                                                                                                                                                       Air
                                                                                            1,000                                                          200         Ship
                                                                                                                                                                       Rail
                                                                                                0                                                          0           Truck
                                                                                                       2000     2001       2002       2003      2004
                                                                                                                                                 (FY)


                                                                                                                             Improved outer box for HDD transport


Nature-friendly Products
Reduction of Transportation Impacts

Boosting Transportation Efficiency                         Reducing Packaging                                                                    Before


Reducing CO2 Emissions                                    Reducing the amount of packaging we use not only
Manufacturing inevitably involves the transportation      saves resources, but also enables more efficient
of parts or raw materials to factories, as well as the    transport, resulting in reduced CO2 emissions. The
transport of finished products—a flow of goods that         Hitachi Group has reduced its total subcontract-
results in CO2 emissions. The Hitachi Group’s CO2         ing costs for packaging under the Containers and
emissions generated from transportation in fiscal          Packaging Recycling Law by 28% from fiscal 1998                                        After
                                                                                                                                                improvement
2004 amounted to 453,000 tonnes. These emis-              to fiscal 2004. Hitachi Ltd.’s Ubiquitous Platform
sions have risen constantly since fiscal 2001 due to       Systems Group and Hitachi Transport System, Ltd.
a rise in the number of production sites (i.e., broader   incorporated universal design concepts (see p. 16)                                    PAGE
                                                                                                                                                Universal Design (see p. 16)
coverage of achievement data relating to the envi-        into a resource-efficient design to develop a new
ronment) stemming from the expansion of the hard          outer box for Wooo DVD recorders.
disk drive business overseas and the automotive           Utilizing expertise developed in packing design for
equipment business in Japan.                              PCs, they succeeded in reducing cardboard surface                                     *1. “Modal shift” refers to a shift in
                                                                                                                                                the modes of our cargo transport
We are currently endeavoring to improve transporta-       area by 18% while retaining shockproof properties                                     from trunk roads to rail and sea,
tion efficiency through resource-efficient packaging        of boxes, which won a Good Packaging Award fol-                                       which are more energy-efficient and
                                                                                                                                                low-pollution modes of transport.
designed to take up less space, and expansion of          lowing a PC box the previous year.*2                                                  We are making greater use of rail
our modal shift in long-distance transport from road                                                                                            and sea transport for trunk line
                                                                                                                                                transport in combination with trucks
to a combination of rail and sea transport.*1             Hitachi Global Storage Technologies and Hitachi                                       for transport to and from terminals.

                                                          Transport System, Ltd. improved the durability of

CO2 Emissions Reduction
                                                          the outer boxes employed for transporting hard
                                                                                                                                                DVD recorder outer box
through Modal Shift in Transportation                     disk drives to overseas production sites by using
Hitachi Industrial Equipment Systems Co., Ltd.            reinforced cardboard and steel palettes, and af-
Narashino Division in October 2004 switched to            fixing caps to the top and bottom of the boxes.
shipping 60% of its products (motors and pumps)           As a result, outer boxes are now used four times
for our Kansai Logistics Center by rail, resulting        instead of just once, reducing packaging waste by
in CO2 emissions reductions of approximately 60           80%. Changes made to the magazine case loading
tonnes.                                                   method and number of shock-proofing layers also
In efforts to promote a modal shift, it is essential      improved loading efficiency and enabled the elimi-                                     *2. Japan Packaging Institute Good
                                                                                                                                                Packaging Award winner (electron-
to have accurate control of logistics—in order to         nation of tape sealing.                                                               ics and device packaging category)

achieve the optimal combination of road and rail
                                                          Modal Shift: Hitachi Industrial Equipment Systems and Hitachi Transport System
transport, for example. We have developed tools to
                                                          Narashino
                                                                                               600 km                                           Kansai                     Kansai area
help visualize logistics information such as shipment      Division
                                                                                 Tokyo                           Umeda                      Logistics Center              joint delivery
                                                                                Terminal                        Terminal
and inventory status. We also analyze performance
data to help optimize logistics.
Hitachi Maxell Ltd.’s Kyoto Works, which had              Modal Shift: Hitachi Maxell                                                                            Sales
                                                                                                                                                               Warehouse
already been shipping its video tapes, mini discs,
                                                                         Rail
computer tapes and other products to its Kanto                                                          600 km                                                     Noda
                                                            Kyoto
region warehouses by rail, started doing likewise           Works        Rail
for shipments to Fukuoka. Rail shipments in fiscal                                                       600 km                                                    Tokyo

2004 grew by 40% over fiscal 2003, resulting in CO2                              Rail
emissions reductions of approximately 550 tonnes.                                                                          700 km                                           Fukuoka



                                                                                                              Nature-friendly Products & Eco-factories                             51


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                                                Eco-Factories
                                                Global Warming Prevention

                                                                                                                             CO2 emissions per unit of production have improved
                                               CO2 Reduction Targets and Results
                                                                                                                             in Japan, dropping from 81% to 76% compared
                                               Japan                                                                         with the reference year.
                                               The Hitachi Group as a whole invested 5 billion yen                           The Hitachi Group has set the following two targets
                                                                                       *1
*1. Energy-saving investments:                 in energy saving measures                     aimed at preventing             for fiscal 2010 in Japan.
Costs of deployment of inverter-
equipped pumps and fans, control               global warming in fiscal 2004, resulting in energy                               1. A 7% reduction in total CO2 emissions (com-
devices for reducing the number                consumption reduction equivalent to 260,000 kilo-                                  pared to 1990)
of running devices, and control
systems for monitoring electricity             liters of crude oil.                                                            2. A 25% reduction in CO2 emissions per unit of
consumption and optimizing air
conditioner operation.
                                               The Hitachi Group’s total emissions in Japan of                                    production (compared to 1990)
                                               CO2—considered to be a major cause of global                                       Plus achievement of industry organization
*2. Industry organization targets:
Voluntary CO2 emissions reduction              warming—amounted to 2,586 kt-CO2 equivalent                                        targets.*2
plans of industry organizations to             for fiscal 2004, a 20% reduction compared with the
which Group companies belong.
                                               reference year of fiscal 1990, but 13% higher than                             To achieve these targets, we launched our CO2
                                               the previous year’s 2,283 kt-CO2 equivalent, due                              Emissions Reduction System in fiscal 2003. Under
                                               to the addition of eight Type 1 Designated Energy                             this system, we set annual emissions targets for all
                                               Management factories as consolidated subsidiaries,                            Type 1 Designated Energy Management factories,
                                               a 13% increase in production volume, and the use                              and rank the factories from A to D according to
                                               of a different method of calculating the CO2 equiva-                          performance. This ranking serves as an objective
                                               lent of electric power. In the past we used a conver-                         indicator for the top management of Group com-
                                               sion factor calculated through linear extrapolation                           panies, and has prompted an increasing number of
                                               from the Federation of Electric Power Companies of                            companies to allocate more budget for energy-sav-
                                               Japan’s projection for 2010, but from fiscal 2004,                             ing activities.
                                               we are using the Ministry of Economy, Trade and                               In fiscal 2004, the number of factories that achieved
                                               Industry Industrial Structure Council’s projection of                         A rank increased from 26 to 32. These results are
                                               0.36t-CO2 /MWh, which provides a clearer picture of                           not only posted on the Group’s intranet, but also
                                               our efforts, and enables the calculation of CO2 emis-                         reported to Group company management person-
                                               sions without being influenced by yearly changes in                            nel. We have high hopes that this system will add
                                               conversion factor.                                                            momentum to CO2 emissions reduction efforts.


                                                                                                                             Overseas
                                                                                                                             Global warming is of course an issue that calls for
                     Trends in CO2 Emissions Per Unit of Production, and Total CO2 Emissions
                                                                                                                             a global response. Moreover with the migration of
                     CO2 emissions                                                              CO2 emissions
                     (kt-CO2 /year) 100               Overseas        101                       per unit of production (%)   our production sites to overseas locations in recent
                       5,000                                                            95      100
                                                      Japan                                                                  years, our overseas CO2 emissions have increased
                                                               81               80
                       4,000         4,125
                                                                       76               75      80                           1.3 times compared to fiscal 1990, prompting us to
                                                     3,910            3,932
                                             3,630            3,628                                                          change overseas reduction targets as follows from
                       3,000         3,215                                                      60
                                                     2,914                                                                   fiscal 2004, using fiscal 2003 as a reference.
                                             2,755                    2,586    2,829   2,713
                       2,000                                  2,283                             40                             1. 5% reduction in CO2 emissions per unit of
                                                                                                                                  production by 2010 (compared to fiscal 2003)
                       1,000                                                                    20
                                     (100)                            (80)     (97)    (93)
                                                                                                      New Previous
                           0                                                                    0                            Due to expanded production and other factors,
                                  1990 2001          2002     2003    2004     2005 2010                        Japan
                                                                                               (FY)
                                Reference                                     Medium- Final                     Overseas     CO2 emissions per unit of production for fiscal 2004
                                                                                term target
                                                                               target                                        grew by 1% over the previous year.

52      Hitachi Group CSR Report 2005


          next eco
                                                          Ladle Heating Device Compared with Earlier Methods
                                                                     Type                      Earlier (ladle heated from above)               Improved (ladle heated horizontally)
                                                                                         Black smoke generated                                                 Front cover
                                                                                                                                                    Complete
                                                                                         by incomplete combustion                                   combustion
                                                                                                                         Simple burner
                                                                                                          Wasted heat

                                                                                                                                           Kerosene
                                                           Heating method                                                                  burner
                                                                                                                                           (blower,
                                                                                                                              Compressed   kerosene)
                                                                                                                              air
                                                                                                                         Kerosene




                                                           Kerosene consumed             100 liters per hour                               60 liters per hour
                                                           (heating conditions)          Heating time: 60 minutes per cycle                Heating time: 20–60 minutes per cycle
                                                           Combustion status,            Chance of accidental fires and black smoke         Complete combustion
                                                           work environment              due to incomplete combustion


Examples of Energy Conservation

Improved Ladle Heating Method                             processes, and continues to work on reduction of
Hitachi Metals Wakamatsu, Ltd. uses centrifugal           emission of such gases through using alternatives
and other casting methods to manufacture mill roll        and installing abatement devices for converting
and injection molding machine parts.                      these gases to less harmful substances.
The ladle, which is the container used in the process     In fiscal 2004, we installed five such devices and
of manufacturing castings to carry molten iron with       started using an alternative to SF6, as a result of which
a temperature of at least 1,400°C, is usually lined       we achieved the equivalent in CO2 of 70,000 GWPt.†
with refractory (heat-resistant) bricks pre-heated        After considering the concept behind total emis-
                                                                                                                                                       Ladle being heated by the new device
to maintain product quality by preventing a loss of       sions volume regulations, the Hitachi Group has es-
temperature by the molten iron. The versatility of        tablished the following emissions reduction targets
simple manually operated kerosene burners makes           for SF6:
them the usual choice for carrying out this preheat-         1. Medium-term target: 30% reduction by fiscal
ing from above, but this method invariably results               2005 (compared to fiscal 2003)
in energy losses from considerable wastage of                2. Long-term target: 35% reduction by fiscal
heat, incomplete combustion, and excessive use of                2010 (compared to 2003)
fuel. To resolve this issue, the Energy Conservation
Subcommittee and other parties reconsidered the           Greenhouse Gas Emissions and Composition
preheating process, and came up with an original          Greenhouse gas emissions
                                                          (thousand tonnes GWP)
design for devices that heat the ladle’s brick lining     150                                                     HFC
                                                                   130                                            PFC
from a horizontal position, and prevent incomplete                        10                                      SF6
combustion and overheating, resulting in a 56%                      40
                                                          100
reduction in kerosene consumption. The installation                            85
                                                                                    6
of seven such devices yielded total annual savings                  80         21       70
                                                                                               3
                                                                                        17
of 320 kiloliters of kerosene.                             50                  58                  49
                                                                                        50                7 41
                                                                                                   42             7
                                                                                                            34
Energy Conservation Overseas
Hitachi Global Storage Technologies invested 180            0
                                                                   2000     2001        2002       2003    2004   (FY)
million yen in energy conservation in fiscal 2004,
resulting in energy savings equivalent to 3,100 kilo-
                                                          Use of Alternative Energy
liters of crude oil. Of this, 600 kiloliters were saved
by the Singapore plant raising the temperature of         The Hitachi Group’s use of solar and other alterna-
chiller water used in the clean room air conditioning     tive energy for fiscal 2004 amounted to 16,000 kilo-
                                                                                                                                                       Hitachi, Ltd. is participating in the
system by 1°C without adverse impact on the clean         liters (crude oil equivalent) in heating, and 74 million
                                                                                                                                                       “Team Minus 6%” nationwide
room working environment.                                 kWh of electricity, representing 4.3% of total heat-                                         citizens’ campaign to prevent global
                                                                                                                                                       warming.
                                                          ing, and 1.6% of total electricity consumed—about
Reducing Greenhouse Gases
                                                          the same level as the previous year. We are also
Manufacturing processes result in the discharge not       commissioning wind-generated electricity through
only of CO2 but also other greenhouse gases*3 such        the Japan Natural Energy Co., Ltd., and about 90%                                            *3. Greenhouse gases: CO2, CH4,
                                                                                                                                                       N2O, PFCs (perfluorocarbons), HFCs
as PFCs, HFCs, and SF6. The Hitachi Group has             of the electricity consumed by the Hitachi Group’s                                           (hydrofluorocarbons, which are CFC
eliminated the use of these three gases mainly from       pavilion at the 2005 World Exposition Aichi is cov-                                          alternatives), SF6. The greenhouse
                                                                                                                                                       effect of HFCs is 102 to 104 times
thin-film and high voltage breaker manufacturing           ered by this electricity.                                                                    that of CO2.


                                                                                                                         Nature-friendly Products & Eco-factories                       53


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                                                                                                                      Chemical Risk Management

                                                                                                                                                        CEGNET System
                                                                                                                                               Trends in laws           Tracking the
                                                                                                                                               and regulations                                       PRTR
                                                                                                                                                                     volumes released              reporting
                                                                                                                                             Trends in voluntary      and transferred
                                                                                                                                                management


                                                                                                                                  Risk information        Data on releases              Feedback


                                                                                                                                                             Handling
                                                                                                                       Preliminary inspection for           of chemical              Reduction of releases
                                                                                                                       new chemical substances              substances


                                                                                                                                                       Prevention of leakage

                                            Eco-Factories
                                            Reduction of Chemicals

                                                                                                                      230,000 tonnes of chemicals, comprised of 127
                                           Chemical Risk Management
                                                                                                                      of the 354 groups subject to the PRTR Law. The
                                           In 1998 we launched CEGNET (Chemical Envi-                                 amount released and transferred was 1.4% of the
*1. CEGNET: Chemical                       ronmental Global Network),*1 an online system for                          total amount handled, the top three substances in
Environmental Global Network
                                           the common management of chemicals by Group                                terms of emissions being toluene and xylene (com-
*2. “Reduce” category substances:          companies in Japan.                                                        ponents of paints), and ethylene glycol monoethyl
Substances classified by the Hitachi
Group as “prohibited” and “reduce,”        When considering the introduction of a new chemi-                          ether (used as a plastic solvent). In total, 108 fa-
plus substances selected by
individual facilities
                                           cal, we collect information about its hazardous                            cilities submitted reports to local governments as
                                           properties, as well as related laws and regulations,                       required under the PRTR Law.
*3. SPM: Suspended particulate
matter—particles with a diameter           etc., and the Special Committee for Chemical
of 10 microns or less that are                                                                                        Voluntary Controls
                                           Substances assesses the pros and cons of using
suspended in the atmosphere                                                                                           to Reduce Environmental Impacts
                                           the substance. When using hazardous chemicals
*4. Photochemical oxidants: Ozone,
peroxyacetyl nitrate and other
                                           controlled by laws and regulations, we also work                           In addition to the above chemicals, we voluntarily
oxidants created from photochemi-          closely with the related departments at each facility,                     control the release or transfer of 1,400 substances,
cal reactions (limited to substances
that separate iodine from neutral          including those in charge of design, manufacturing,                        classifying them as substances to “prohibit,” “re-
potassium iodide, and excluding
                                           and purchasing, to ensure proper management.                               duce,” or “control.” We set a target of reducing
NO2)
                                                                                                                      the total releases of the substances in the “reduce”
*5. PRTR: Pollutant Release and            Survey of Substances Under the PRTR Law
Transfer Register. 354 groups                                                                                         category*2 by 70% in fiscal 2005 compared to fis-
of substances (Attached list 1 of          The Hitachi Group collects data on all substances                          cal 2000, and have been working to achieve this
related Cabinet Order) are subject
to Japan’s Pollutant Release and           that it handles in amounts of 10 kilograms or more                         target, our efforts resulting in reductions by 44% in
Transfer Registers (PRTR) Law
                                           per year, even if the amount is below the minimum                          fiscal 2004. In the future, we will work to reduce
(known formally as the Law
Concerning Reporting, etc., of             for mandatory reporting under Japan’s Pollutant                            emissions of SPM*3 and photochemical oxidants*4
Release of Specific Chemical
Substances to the Environment and          Release and Transfer Registers (PRTR) Law (known                           through extending voluntary control to alcohol and
Promotion of Improvement of Their          formally as the Law Concerning Reporting, etc.,                            other VOCs (volatile organic compounds) not gov-
Management) established in 1999.
                                           of Release of Specific Chemical Substances to                               erned by the PRTR Law.
                                           the Environment and Promotion of Improvement
                                                                                                                      Preventing Pollution of Soil and Groundwater
                                           of Their Management), which entered into force in
                                           April 2001. We monitor all discharges into the atmo-                       We are working to improve controls to prevent the
                                           sphere and public waters, as well as transfers such                        leakage of chemical substances by converting un-
                                           as removals in the form of waste from facilities, and
                                           as effluent into sewerage systems.                                          Trend in Emissions for Substances Targeted for Reduction
                                           During fiscal 2004, we used a total volume of                               (kt/year)                                                                      (%)
                                                                                                                                     100
                                                                                                                       15                                 Trend in emissions                          100
                                                                                                                                                          for substances targeted
                                                                                                                                                          for reduction
          Survey Results for Substances Covered Under Japan’s PRTR Law*5
                                                                                                                                     10.6      10.8                                      70
          ( Volume of releases and transfers in FY2004)                                                                                                  9.7
                                                                                                                      10              4.4       3.9
                             Volume transferred: 1.4%                                                                                                    3.6
                                                                                                      Others: 10%                                                              44        7.4         50
          Volume released: 1.4%
                                                                         Styrene: 3%                                                            6.9                 5.8
                                                                                                                                      6.2                6.1        1.8        4.7
                                                                    Ethylbenzene: 6%                                    5
                                                                                                                                                                               1.4
                                                                 Ethylene glycol                                                                                    4.0
                               Volume                                                              Volume                                                                      3.3
                                                                 monoethyl ether: 7%
                               handled:                                                           released:
                                235 kt                                                              3.3 kt              0                                                                            0
                                                                                            Xylene:        Toluene:                  2000      2001     2002       2003      2004      2005 (FY)
                                                  Used for products, etc.                    24%             50%                                                                       Target
                                                  (Including amounts through                                                                                   New Previous
                                                  treatment processes) 97.2%                                                                                             Excluding PRTR Law class 1
            Volume handled, released, and transferred                                  Breakdown of volume released                                                      PRTR Law class 1 substances


54      Hitachi Group CSR Report 2005


          next eco
Substances Subject to Voluntary Control
                            Substances                                                                                      PRTR Law: Law Concerning Reporting, etc., of Release of Specific Chemical Substances to
                           subject to the                                                                                   the Environment and Promotion of Improvement of Their Management (Pollutant Release and
                         Industrial Safety                                               Prohibited substances (100):
                         and Health Law                                                                                     Transfer Registers (PRTR) Law)
       Ozone depleting                          Hazardous                                    benzene, dioxins, etc.         High-pressure gases: High-Pressure Gas Safety Law
         substances                             substances                                                                  Hazardous materials: Fire Service Law
                                                                                                                            Health and safety law: Industrial Safety and Health Law
                                                                                                                            Chemical Substances Control Law: Law Concerning Examination and Regulation of
                                                    Substances subject                                                      Manufacture and Handling of Chemical Substances
   Poisonous                                                                                 Substances targeted
                       Substances subject            to the Chemical                                                        Air & water pollution laws: Air Pollution Prevention Law, Water Pollution Prevention Law
and deleterious                                        Substances                             for reduction (270):
  substances            to the PRTR Law                                                                                     Poisonous and deleterious substances: Poisonous and Deleterious Substances Control Law
                                                       Control Law                        Methylene chloride, lead, etc.
                                                                                                                            Ozone depleting substances: Law Concerning the Protection of the Ozone Layer through the
                                                                                                                            Control of Specified Substances and Other Measures (Ozone Layer Protection Law)
                                                                                                                            Greenhouse gases: Law Concerning the Promotion of the Measures to Cope with Global
         Greenhouse                           High-pressure                                                                 Warming
            gases                                 gases                                 Controlled substances (1,030):
                           Substances                                                         Styrene monomers,
                          subject to air
                            and water                                                         ethanolamine, etc.
                          pollution laws




derground piping, pits and tanks to above-ground
                                                                                             Reduction of Released Chemicals
facilities, and conducting thorough inspections. For
                                                                                             (Hitachi Chemical Group)
underground tanks that have still not been moved
above-ground, we work to prevent leakage by per-                                             Hitachi Chemical Group is implementing sustained
forming thorough inspections, including ultrasonic                                           efforts to reduce the amount of chemicals released
tests and measures to prevent corrosion.                                                     at Group facilities. The amount released into the
At about 90% of the approximately 200 sites that                                             atmosphere in fiscal 2004 was 2,400 tonnes, rep-
have been prohibited from use due to contamination,                                          resenting a 64% reduction over fiscal 2000. In fiscal
either clean-up operations have been completed or                                            2005, the Group is aiming to increase this reduction
we have confirmed that no problems remain. At the                                             to 70% of the fiscal 2000 total.
remaining sites, we are continuing with clean-up                                             As one initiative aimed at reducing atmospheric
measures, and at sites where clean-ups have been                                             emissions in fiscal 2004, Hitachi Chemical’s
completed, we are continuing to monitor ground-                                              Goshomiya Works installed a thermal storage burner
water quality.                                                                               for treating gaseous emissions of the toluene-based
                                                                                             solvent from the adhesive film coating machines.
Storage of PCB-Containing Devices                                                                                                                                                  *6. PCBs: Oily substances whose
                                                                                             This yielded a reduction in toluene emissions of                                      manufacture and import is banned
                                                                                                                                                                                   in Japan due to their toxicity. PCBs
Japan’s Law Concerning Special Measures Against                                              1,000 tonnes compared to fiscal 2003.                                                  have been placed in long-term
PCB Waste stipulates that polychlorinated biphenyl                                                                                                                                 storage, but instances of PCBs in
                                                                                                                                                                                   storage going missing have led
(PCB)*6 waste from used insulation oil, must be                                              This treatment equipment for emitted gas collects                                     to concerns about environmental
stored under strict control and properly disposed of                                         all solvent gas from drying furnaces and local ex-                                    pollution. A law that entered into
                                                                                                                                                                                   force in July 2001 requires the
by July 2016. The Hitachi Group will continue strin-                                         haust, feeding it through collection ducts into a ther-                               proper disposal of these substances
                                                                                                                                                                                   by June 2016.
gent PCB waste storage controls to prevent loss                                              mal storage burner where it undergoes complete
of any stored PCB waste during long-term storage                                             combustion at high temperature to create a clean
by putting them under lock and key and by using                                              non-hazardous discharge that is released from an
individual identification of each unit. We also take                                          outlet into the atmosphere. A heat collection device
preventive measures against leakage in the event of                                          is used to recover the heat
equipment breakage by creating berms and using                                               generated from combustion
special storage containers. Concurrently, we are                                             as steam.
developing proper disposal plans concerning such                                             To comply with VOC regula-
stored PCB waste.                                                                            tions in fiscal 2005, Hitachi
                                                                                             Chemical will extend its use
                                                                                             of treatment equipment for
                                                                                             emitted gas, and implement
                                                                                             further reductions through                            Collection duct   Combustion/          Regenerative       Outlet
                                                                                             voluntary control efforts.                            for emitted gas   retention   Heat zone            Purified gas
                                                                                                                                                                     zone        collection
                                                                                                                                                                                 device
Emitted gas treatment process                                                     Treatment equipment for emitted gas
                                                                                   (regenerative deodorizing method)                            Outlet (into the atmosphere)

     Production site
                                                                                   Combustion/retention zone (oxidation)
                          Emitted gas                             Emitted gas                                                  Purified gas
                                             Collection duct                                                                                      Heat collection device
     Adhesive film                            for emitted gas
    coating machine
                                                                                Regenerative zone       Regenerative zone

                                           (Emitted gas intake)                       (Heated and temperature risen)                              Steam (heat collection)


                                                                                                                                                    Nature-friendly Products & Eco-factories                       55


                                                                                                                                                                                             next eco
Breakdown of Recycling Methods                     Breakdown of Final Disposal Volume by Type                                     Trend in Volume of Water Usage
                                                   Electronic devices 3%           Information & telecommunication systems 2%     Consumption (units of 10,000 m3/year)
                                                   Digital media/                                                                                                                            Municipal water
                                                   consumer electronics 4%                                                                   732     588                                     (overseas)
Thermal recycling 7%                                                                             Logistics and service, etc. 1%   8,000          157     197
                                                   Power and industrial systems 6%                                                          1,018 77 956 77               287       293
                                                                                                                                                                                             Industrial water
                                                                                                                                                                                             (overseas)
Reuse 23%                                                                                                                                   3,114       2,665             494       519
                                                                                                                                  6,000                                                      Groundwater
                                                                                                                                                                     774 216 717 23          (overseas)
                                                                                                                                                                    2,855     2,770          Municipal water
                                                                                                                                  4,000                 4,378                                (Japan)
Materials                                                                                                                                   3,708                                            Industrial water
recycling 70%                                      High-function materials 84%                                                                                                               (Japan)
                                                                                                                                  2,000                             2,344     2,543          Groundwater
                                                                                                                                                                                             (Japan)

                                                                                                                                      0
                                                                                                                                            2001        2002        2003      2004    (FY)

                                               Eco-Factories
                                               Waste Reduction and Efficient Use of Water Resources

                                              Reduction of Final-Disposal Waste                                                       Building a Recycling Network

                                              The Hitachi Group is working to reduce the amount                                       Hitachi, Ltd.’s Industrial Systems and Power
*1. Final disposal site waste: Waste          of waste going to final disposal sites*1 by promoting                                    Systems groups have joined hands with Tokyo Eco
disposed of through landfill after
incineration and other treatment              the “3Rs” of reduce, reuse and recycle. Our targets                                     Recycle Co., Ltd. to build a network for recycling
                                              were to reduce waste volume to below 80% of fiscal                                       electrical goods such as control panels that are
*2. Zero emissions: Recycling re-
sources to reduce waste generated             1998 levels by the end of fiscal 2005, and below                                         generated by reconstruction work. Up to now most
in the process of production to as
close as possible to zero. Different
                                              70% by the end of fiscal 2010. In fiscal 2004, we                                         of such goods have been sold on both domestic
companies might have differences              achieved a reduction to 62%, which means that                                           and overseas markets as scrap metal, but Tokyo
in the exact definition.
                                              from fiscal 2003, we have achieved the 2010 target                                       Eco-Recycle dismantles them by hand, and recycles
                                              two years in succession, and we are accordingly                                         90% of the components. While this is costly, we feel
                                              considering the setting of a new target.                                                that it is important from the viewpoint of reducing
                                              The Hitachi Group defines “zero emissions”*2 as                                          the risk of illegal disposal or resale.
                                              having “1% or less of the total waste generated in a                                    Each and every facility is implementing waste reduc-
                                              given fiscal year going to final disposal sites, and the                                  tion measures tailored to the nature of their busi-
                                              volume going to final disposal of less than 5 tonnes                                     ness. Hitachi Metals, Ltd. has deployed equipment
                                              per year,” and is working to achieve this objective.                                    for recycling waste plastic, and is now recycling not
                                              During fiscal 2004, the number of facilities achieving                                   only its own, but also customers’ and other waste
Practical waste management
education through small classes               zero emissions rose by 29, making for a total of 71.                                    plastic to produce plastic raw materials. At Hitachi
                                                                                                                                      Global Storage Technologies Inc.’s Thailand plant,
                                                                                                                                      alcohol-impregnated cloth, a clean room waste
                             Trend in Final Disposal Volume Reduction
                                                                                                                                      product, is recycled as a fuel for a cement factory.
                             (kt/year) 100                                                            New Previous       (%)
                                                                Trend in final disposal
                             200                                  volume reduction                              Japan    100
                                                                                                                Overseas
                                                                                                                                      Education in Appropriate Waste Treatment

                              150      148                147                                                    70
                                        82      135                                                      80                           The Hitachi Group puts priority on education for
                                                           81                                   62
                                                 63                                                      119
                                                                             103                         66     103                   managers to ensure that waste is treated appro-
                              100                                  98                    96     92                        50
                                                                   51         59                                 57                   priately and avoid the risk of involvement in illegal
                                                                                         53     59

                               50       66       72        66                                                                         treatment or disposal. Particularly at Hitachi, Ltd.’s
                                                                   47                                    53      46
                                                                             44          43
                                                                                                33
                                                                                                                                      Hitachi Works, where much waste treatment is
                                  0                                                                                   0               outsourced, practical training is given, followed by
                                       1998     1999     2000     2001      2002     2003      2004 FY2005 FY 2010 (FY)
                                                                                                    (target) (target)                 a test, and successful candidates are certified as
                                              Trend in Waste Emissions                                                                Environmental Officers. In fiscal 2004, 90 personnel
                                              (waste kt/year)                                         New Previous       (%)          were certified in this way.
                                                                                                                Japan
                                              1,000                                                                      100
                                                                           Recycling rate                       Overseas
                                                                                                         84       85                  Efficient Use of Water Resources
                                                           79
                                                800                                            772
                                                          765      702                                   708    711                   We are making efforts to reduce our consumption
                                                                             670         678   130
                                                600
                                                                   113        48         117             143
                                                                                                                                      of industrial water by such measures as recycling
                                                          216                                                   150
                                                                                                                          50          cooling water and improving production efficiency.
                                                                             622               642
                                                400                589                                                                Hitachi Displays, Ltd., for example, has introduced
                                                          549                            561             565    561
                                                                                                                                      equipment for ion exchange, reverse osmosis, and
                                                200
                                                                                                                                      ultrafiltration. Through such initiatives, water con-
                                                                                                                                      sumption by the Hitachi Group in fiscal 2004 was
                                                  0                                                                        0
                                                         1998     1999      2000     2001      2002     2003    2004    (FY)          down to 78% of the level in fiscal 2001.

56       Hitachi Group CSR Report 2005


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Worldwide Stakeholder Collaboration
Our stakeholders include not only the customers
who constitute the basis for our activities,
but also local communities in which our facilities are located,
the shareholders and investors who help us to carry out our business,
our suppliers who are equal partners in business, and our employees,
without whom Hitachi can not function. The Hitachi Group aims to work
with all of these stakeholders to create a sustainable society,
and to build the partnership for such collaboration,
we put priority on the disclosure of information, dialog,
and activities as a global citizen.



                                                                                                                  From top:
Global Information Disclosure                                                                                     Eco-Products International Fair
                                                                                                                  2004, elementary school tour to
Booth at Eco-Products International Fair 2004          conserve the natural environments of our facilities,       Hitachi Central Research Laboratory,
                                                                                                                  Environmental Town Meeting
The Eco-Products International Fair 2004, the first     and open them up to the local community.
Eco-Products Exhibition in an Asian country other      For example, when Hitachi, Ltd. built its Central
than Japan was held from September 2 to 4, 2004, in    Research Laboratory in Tokyo, in 1942, it made ev-
Malaysia.*1 Under the theme of “Next Eco—Together      ery effort to conserve the natural environment within      *1. Eco-Products International
                                                                                                                  Fair 2004 held in Malaysia by the
with Hitachi,” the Hitachi Group participated along    the premises, and about 27,000 trees and bushes            Asian Productivity Organization
with about 80 other companies and organizations        now fill the gardens, which also boast a natural            (APO), Federation of Malaysian
                                                                                                                  Manufacturers (FMM), and National
from throughout the world, introducing its Malaysian   spring that feeds into the Nogawa River. Swans             Productivity Corporation (NPC),
                                                                                                                  Malaysia
sites, and exhibiting such eco-products as printed-    inhabit the large pond, and the woods support a
wiring board material adapted for the lead-free        rich diversity of birdlife. Opened to the public twice
solder process, and amorphous materials.               yearly, the gardens receive about 3,500 visitors a
                                                       year, and are also used as a location for elementary
Dialog
                                                       school social studies tour groups.
Environmental Town Meetings
From fiscal 2001 we have held Environmental Town        Education—“Let’s Talk About Helping the Earth”
Meetings† as forums for dialog with stakehold-         In March 2004, we distributed “Let’s Talk About
ers on environmental matters. In fiscal 2004, the       Helping the Earth” to 200,000 households of Hitachi
venue was Hitachi, Ltd.’s manufacturing base in        Group employees and local communities to com-
Ibaraki Prefecture. Participants from the local com-   municate our “Eco-Mind” concept to children. In
munity were given a tour of Hitachi’s Mito Works,      2005, we issued “Let’s Talk About Helping the Earth:
while Hitachi personnel answered questions from        Forests are Full of Small Surprises,” which seeks to
participants and listened to their candid views on     nurture interest in nature through describing the          Educational booklet:
stakeholder collaboration.                             roles played by forests, and introducing the natural       Let’s Talk About Helping the Earth
                                                                                                                  WEB
This dialog made us realize that although we had       environments to be found in the Hitachi Group’s
                                                                                                                  http://greenweb.hitachi.co.jp/en/
long been operating on the large property for years,   properties and the means used to conserve them.            pdf/forests-surprise.pdf

we had not done enough to inform the local com-
munity about the production and environmental          Support for School Education
management activities being carried out within the     We feel that it is important for corporations to com-
Mito Works.                                            municate how they are helping to protect the global
In the future, we plan to take a long term view and    environment to the younger generation. Hitachi, Ltd.
develop closer communication with the local com-       supports the general studies curriculum of middle
munity.                                                schools by opening its doors for visit from groups of
                                                       middle school students. In fiscal 2004, six students
Activities as a Global Citizen
                                                       from Itabashi Ward Shimura No. 4 Middle School

Local Community Access to Natural Spaces
                                                       in Tokyo visited the company, where they were
on Company Grounds                                     introduced to Hitachi’s key environmental policies,
                                                                                                                  WEB
Hitachi founder Namihei Odaira was fond of saying,     environmental measures related to manufacturing,           Environmental Town Meeting
“Do not disturb good trees; build around them.”        technologies for preventing global warming, and            http://greenweb.hitachi.co.jp/
                                                                                                                  stakeholder/townmeet04.html
In the spirit of those words, we do our utmost to      also paper recycling methods.                              (Only in Japanese)




                                                                                                 Worldwide Stakeholder Collaboration               57


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Sustainable Business Models
The Hitachi Group is committed to the creation of sustainable business models—businesses
with a good balance between economy, society and the environment.
We have already created and are promoting business models for a recycling-oriented society,
with a focus on the concepts of “reduce, re-use and recycle.”
We have also established a Sustainable Business Committee,
and by sharing information among the affiliated companies of the Hitachi Group,
we are pursuing new business models to lead the way to a sustainable society,
including through technology, research and development.




                                                                                                                                                 takes advantage of different material densities, and
                                                 Resource Recycling Models
                                                                                                                                                 an innovative electrostatic separation method, the
                                                 95% PVC Recycling [ Hitachi Cable Group ]                                                       first in this industry, that exploits different electro-
WEB                                              The Hitachi Cable Group has played a pioneering                                                 static charges between different materials. With
Hitachi Cable
Discarded electric wire & cable col-
                                                 role in the establishment of a business model for                                               these methods, we have achieved a recycling rate
lection network & recycling system               the recovery and recycling of used electric wire and                                            of 95% for PVC material.
http://www.hitachi-cable.co.jp/eco/
recycle.htm                                      cable such as from construction sites.                                                          Computer Recycling Service Offers
(Only in Japanese)
                                                 The company first launched its recycling technology                                              Information Security [ Tokyo Eco Recycle Co., Ltd. ]
WEB                                              for discarded electric wire and cable in 1972, when                                             Tokyo Eco Recycle Co., Ltd. was established in
Tokyo Eco Recycle Co., Ltd.
http://www.tokyo-eco.co.jp/
                                                 it established a system for the recovery, pulveriza-                                            1999 as a corporate response to Japan’s Law for
(Only in Japanese)                               tion and re-making of conductors from copper and                                                Recycling of Specified Kinds of Home Appliances.
                                                 remaking of pellets from insulation materials. The                                              In fiscal 2004, its rate of recycling for four consumer
                                                 collection of discarded electric wire and cable was                                             electronic goods of commercial value (televisions,
                                                 expanded across Japan in 2000, and today there                                                  refrigerators, washing machines and air condition-
                                                 are six collection points located throughout the na-                                            ers) exceeded the government standards by a wide
                                                 tion from Hokkaido to Kyushu.                                                                   margin, and the company achieved zero emissions
                                                 After the electric wire and cable is recovered, it is                                           to the landfill for the third consecutive year. In 2005,
                                                 sorted, then thick cable is disassembled, thin wire is                                          the company won the 9th Honda Prize for Recycling
                                                 pulverized, and the scraps are then separated into                                              Technology Development, for achieving zero emis-
                                                 copper and insulation materials.                                                                sions in the household electrical appliance recycling
                                                 Methods used for separation of insulation material                                              division.
                                                 include the use of a gravity separation method that                                             In recent years, this company has been concentrat-


                                                                                                                                                                         Electrostatic Separation System
                                                                                                                                                                              Mixed plastic
                                                                                                                                                                              carrying static charge
                                                                                                                                                                                          Negative charges
                                                                                                                                                                                          Positive charges Positive electrodes
                                                                                                                                                                Supply tray
                                                                                                                                                                                                                              High voltage
                                                                                                                                                                                                                              power supply
                                                                                                                                                                                          Rotation drum
                                                                                                                                                                                           electrodes                   Containers for
                                                                                                                                                                Ground
Recycling Process of Discarded Electric Wire & Cable                                                                                                                                                                    separated materials




                                              Pile of recovered                                              Disassembling of                                            Nugget insulation
                                              electric wire & cable                                          insulation materials                                        materials

                                                                                                          Nugget                    Insulation                     Separate                        Refine
                                                                                                                                    materials
Discarded electric               Collection                           Sorting                                                                                                                                                 Recycle
   wire & cable
                                                                                                        Disassemble                  Copper
Features
Collection from typical
construction sites:
Surplus electric wire
& cable after new construction
Discarded wire                                                                  Sorting                                                 Vibration-induced
& cable after demolition                                                        electric wire & cable                                   separation by density                                          Copper nuggets


58      Hitachi Group CSR Report 2005


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                                                         Processing and Recycling Devices/Media Containing Confidential

                                                                               User properties (Classified data)                                           User responsibility

                                                               IT equipment                   Information recording media
                                                             (PC, server, etc.)
                                                                                                                                                            Data        Recycling
                                                                                                                                                          deletion        and
                                                                                                                                                            and          proper
                                                                                                                                                         destruction   processing

                                                                Hard disk drive            FDD       MO          CD         VTR


                                                                                                                                            Work contract                      Industrial
                                                                                                                                                                               waste contract

                                                                                                          Tokyo Eco Recycle Co., Ltd.

                                                             E.g., Hard disk drive destruction service includes physical destruction and on-site service

                                                                                                                                                            Material recovery
                                                                                      Perforation takes                                                     Scrap stainless steel
                                                                                      approximately                                                           Scrap aluminum
ing on the recycling of personal computers. Since                                     15 seconds                                     Drill perforation      Precious metals, etc.
                                                                                      per unit                                       (four locations)
it is critical to prevent the leakage of data that re-
mains in hard disk drives, the company introduced
a data leakage prevention service that uses secure       Outline of “HDRIVE” System
methods to disassemble equipment. This service
can also be offered directly at the customer’s office.
A special workroom was set up in the factory with
                                                                                                                                              Operational data
a finger vein authentication system and other de-
vices installed for security control, where personal
computers are processed and recycled. After the             Hitachi inverter         Hitachi motor         Fans, pumps and blowers                                       Hitachi Ltd.
                                                                                                                                              Statement of energy
processing stage, materials are recycled into metals                                 Customer factory                                         savings calculated
                                                                                                                                              Equipment delivery
and plastics, etc., by means of a recycling system                                                                                             After-sales service
similar to one used for household electrical appli-
                                                                  Notification of                               Payment for use
ances. Besides hard disk drives, a similar process              benefits delivered
is used for media such as floppy disks, electromag-
netic tape and CD-ROMs.                                                                                                                       Payment for use
                                                                                     Financing window
Energy Circulation Model                                                            (Hitachi Capital Ltd.)
                                                                                                                                                Notification of         Remote monitoring
                                                                                                                                              benefits delivered
Energy-Saving Service Solution [ HDRIVE ]
Hitachi, Ltd. is building a business based on
“HDRIVE,” a service that helps industrial customers
conserve energy without paying any initial costs.
                                                         Business Contributing to a Sustainable Society
Hitachi offers to install inverters and high-voltage
motors in fans, pumps and blowers at customer            Monorail Development [ Chongqing City, China ]
facilities free of charge, for equipment in which        Many cities in the world need new transportation
energy-saving can be expected. Under a ten-year          systems that can mitigate traffic congestion while
contract, a fixed percentage of the cost savings          also being environmentally friendly. As one answer,
generated from monthly energy savings is applied         Hitachi has developed and constructed straddle-
as a service charge. The amount of energy saved          type monorail systems, and has accumulated about                                            Straddle-type monorail
                                                                                                                                                     (Chongqing City, China)
is calculated from the equipment’s operating data,       40 years of experience since the opening of the
measured by monitoring device. HDRIVE also of-           Tokyo Monorail.
fers a new financing approach that emphasizes the         In the city of Chongqing in China 13.7 km of this type
customer’s cash-flow and helps reduce investment          of system began operating in June 2005. Due to the
risks when customers change their operations. At         rapid growth in automobile use, traffic jams and air
the Eco-Products 2004 Exhibition, the HDRIVE was         pollution have worsened year-by-year in the city.
awarded the Chairperson’s Prize of Eco-Products          The straddle-type monorail system helps to combat
Awards 2004 (in the services category) as an in-         these problems, and is being considered an impor-
novative and environmentally-conscious service.          tant new type of urban traffic system. Construction
By the end of fiscal 2004, the HDRIVE service had         for a monorail is in progress on Sentosa Island in
been introduced in 50 cases.                             Singapore and slated for operation in 2006.




                                                                                                                                     Sustainable Business Models                      59


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                                                         T O P I C S

                                                        From Ubiquitous Technology and                                                  can be received efficiently from both sides, the amount of
                                                        Clean Energy to Environmental Assessment                                        power generation is 1.3 times that of conventional mod-
                                                        (Environmental Technology Display in Hitachi                                    ules.
                                                        Group Pavilion at the 2005 World Exposition)                                    Moreover, about 90% of the electric power used during the
                                                                                                                                        operation of the Hitachi Group Pavilion is sourced by wind
WEB                                                     At the 2005 World Exposition in Aichi, Japan (March                             power, utilizing “green power” procured through the Japan
EXPO 2005                                               25 – September 25, 2005), the Hitachi Group presented                           Natural Energy Company Limited.
“The Hitachi Group Pavilion”                            an exhibit at the Hitachi Group Pavilion. In line with the                      We plan to recycle 100% of four of the pavilion materials
http://hitachi-pavilion.com/index.html
                                                        Exposition’s main theme, “Nature’s Wisdom” and Hitachi’s                        (concrete, asphalt, structural wood, and steel) after the
                                                        concept in pursuit of “realizing a ubiquitous information                       exposition closes. For other materials, we plan to recycle
                                                        society through the use of sophisticated IT,” this pavilion                     more than 95% of the material.
                                                        introduces environmental solution technologies.                                 We predict that the environmental approach taken for this
                                                                                                                                        pavilion will result in a 441-tonne reduction in CO2 emis-
                                                                                                                                        sions (about 60%) compared to the use of conventional
                                                                                                                                        methods.
                                                                                                                                        This estimate was done using an “assessment solution” for
                                                                                                                                        environmental impacts developed by Hitachi, Ltd. called SI-
                                                                                                                                        LCA. SILCA, or System Integration – Life Cycle Assessment,
                                                                                                                                        calculates and assesses the environmental load (CO2 emis-
                                                                                                                                        sions) at each stage—covering all the service stages, from
                                                                                                                                        design and development until a product is recycled.
                                                                                                                                        For example, the zone where visitors take rides was
                                                                                                                                        evaluated as follows. First of all, dioramas in most theme
*1. Fiber-reinforced plastic. After                                                                                                     parks use FRP*1 in the background scenery and robots
being molded plastic is then                                                                                                            are made to move. The Hitachi pavilion had backgrounds
strengthened using fiber and resin.                      The Hitachi Group Pavilion Exterior
                                                                                                                                        molded from polyurethane and the images of animals were
                                                        The theme of the Hitachi Group Pavilion’s exhibition is                         produced by computer graphics, with the images instanta-
                                                        “Nature Contact—Interacting with endangered animals                             neously synthesized into the diorama background based
                                                        brought back to life by Hitachi IT.” It is an “experiential                     on sensor location information introduced through MR
                                                        zone” where rare endangered animals on the verge of ex-                         (Mixed Reality) technology.
                                                        tinction are revived with images, and visitors can “interact”                   In other words, reproduction and recycling of the pavilion
                                                        with these animals. The personal information viewer in the                      are facilitated because there is no need for the energy to
                                                        pre-show is equipped with fuel cells designed for mobile                        power any robots or any need for maintenance. As a result,
                                                        devices. The fuel cells use methanol as fuel and cause hy-                      the CO2 emissions were lower by 367 tonnes than had we
                                                        drogen ions to react with atmospheric oxygen to generate                        used a conventional system. This is equal to the electrical
                                                        electricity. Quiet and vibration-free, they emit only carbon                    power usage of 70,000 households in one day.
                                                        dioxide and water vapor. Hitachi is currently developing an                     Finally, a 0.4-square-millimeter radio frequency identifica-
                                                        electrolyte membrane that will prevent the release of water                     tion (RFID) IC chip, known as the “μ-Chip,” was used for the
                                                        particles.                                                                      ticket admissions system at the EXPO 2005. When com-
                                                        Bifacial photovoltaic solar modules were installed on the                       pared to the conventional system of tearing ticket stubs
                                                        pavilion exterior. The pavilion’s energy is partially sourced                   to track attendance, the SI-LCA assessment estimated a
                                                        from the energy generated by the modules. Because light                         27-tonne reduction in CO2 emissions.




                                                        Bifacial Photovoltaic Solar Module                                              Personal Information Viewer equipped with fuel cells

                                                                                          Preparation                                              Operation                                       Termination
                                                            Paints (volatile organic compounds), materials and energy       Fuel             Electrical power, water, etc.            Diesel fuel     Electrical power
                                         Robot system




                                                               Fiber-reinforced                   Production and                    1. Power for robot operating
                                                               plastic molding                    control of robot                  2. Power for ride operation and control                            Industrial waste
                                                                                                                                       with navigator                                                     disposal in
                                                                                                                                    3. Operators, times of ride and robot                              Aichi Prefecture
                                                                    Production of ride and rail structures                             maintenance
                                                                                                       CO2              CO2, etc.                               CO2                    CO2, etc.       CO2 and waste
                                                                                  Material and energy                       Fuel      Electrical power, water, etc.      Electrical                   Electrical power
                                                                                                                                                                         power          Diesel
                                                                    Polyurethane molding and HDD (Hand Held Display),               1. Power for MR contents
                                         MR system




                                                                    main servers, etc., MR contents                                 2. Power for ride operation                                           Recycling
                                                                                                                                       and control                 Ride control                      IT equipment reuse
                                                                                                                                    3. Operators
                                                         Production of rail structure and ride                                         Ride control
                                                                                                 CO2                    CO2, etc.                            CO2                       CO2, etc.       CO2 and waste

                                                          Example of Environmental Assessment of the Hitachi Group Pavilion Using SI-LCA (System Integration – Life Cycle Assessment)


60      Hitachi Group CSR Report 2005


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Action Plan for Fiscal 2005
Another Step toward Sustainable Society

Hitachi’s Environmental Vision for 2015
Hitachi’s present Environmental Vision (Sustainability Compass) is our vision
for the year 2010. During fiscal 2005, we will be reviewing the scenarios of our
Environmental Vision and considering concrete plans to accomplish our goals by
2010, as well as long-term plans for 2015.


Introducing an Environmental CSR-Compliant
Monozukuri (PLM and Total SCM) System
Hitachi is developing the Integrated Management System for Chemical Substances
Contained in Products based on the approaches in the Environmental CSR-
Compliant Monozukuri Standards (see p. 14 –15). We intend to completely intro-
duce the system by June 2006 for products that must comply with the European
Union’s RoHS Directive,† and also aim to apply the system to other products
during fiscal 2006, in an effort to achieve integrated management of chemical
substances in Hitachi Group products.


Toward the Achievement of New Objectives
• Improvement of Environmental Efficiency and the Expansion of Eco-Products
  We have established concrete targets to be achieved by 2010 concerning
  the improvement of environmental efficiency of products and the expansion
  of Eco-Products. These objectives will be extended to cover all of the Hitachi
  Group’s business groups and affiliated companies, and the scope will be will
  be expanded to 37 target products.


• Support for the Environmental Initiatives of Suppliers
  To help all of our main suppliers strengthen their environmental protection
  activities, we are supporting their efforts to acquire ISO 14001 and other third-
  party environmental certification by the end of fiscal 2006.


• Improving the Efficiency of Product Delivery
  We are promoting initiatives to improve transport efficiency and to implement
  modal shifting. We have set a target of reducing CO2 emissions from the trans-
  porting of products by 10% from fiscal 2000 levels by fiscal 2010.




                                                                  next eco
Third-Party Comment
on the Hitachi Group CSR Report 2005



 We encourage the Hitachi Group to make some improvements
 in the self-assessment system relating to corporate social responsibility (CSR),
 while continuing the various efforts covered in this report.

                                                                                       The Valdez Society
                                                          (From left: Mr. Kojiro Tanaka, Mr. Yasunobu Okada,
                                                           Mr. Yoshiki Midorikawa and Mr. Tamio Yamaguchi)



• Hitachi’s positive approach is evident in this first CSR Report,                    “GREEN 21” with an environmental efficiency rating and a financial
which evaluates the current status and indicates the Group’s fu-                     index.
ture orientation. The report attempts to refocus on the company’s                    • We commend the Group’s proactive approach toward using infor-
Fundamental Credo from the viewpoint of CSR, with a view to                          mation tools for handling chemical substances. Since a reduction
enhancing efforts to implement concrete actions. Through this,                       in the amounts of chemicals used is the main issue here, however,
Hitachi demonstrates one possible approach to address CSR.                           in the future it will also be important to mention chemical-related
Perhaps there is still room for progress, however, by more system-                   policies and strategies, as well as achievements over time.
atically linking together key components: the company’s vision for                   • We encourage the Hitachi Group to consider issues such as
the future, self-assessments relating to CSR, and the implementa-                    “Worldwide Stakeholder Collaboration” and “Sustainable Business
tion of the eight points of the CSR Policy.                                          Models” from a wide perspective, as concepts that involve all as-
• What draws our attention in this report is the implementation and                  pects of the environment, society and economy.
disclosure of CSR self-assessments at a level of excellence that
we have not yet seen in other corporations. The results displayed                    Response from Hitachi, Ltd.
on “radar charts” are high in most areas, but we wonder whether                      We will clarify our collective CSR vision in terms our approach to
any Japanese corporation today can be rated so highly on CSR                         the economy, environment and society, centering on the CSR
criteria. We encourage the Hitachi Group to increase the reliability                 Policy of the Hitachi Group. With regard to self-assessments, for
of the evaluation by clarifying such aspects as the methodology of                   the current report, we mainly covered the activities of Hitachi, Ltd.,
assessment and the evaluating team members, and continue their                       with consideration of survey results from third-party assessment
efforts while working to improve the CSR system.                                     organizations, in order to identify the areas where we should focus
•In regard to the Hitachi Group’s environmental efforts, it is appar-                our attention. In the future, besides improving the accuracy of as-
ent that there are steady activities in accordance with the EcoValue                 sessments, we will also make an effort to improve the coverage of
Plan 2010. Moreover, “GREEN 21,” a unique system that evaluates                      all Group companies, and to raise the level of these activities for
the Group’s environmental performance, creates incentive and is                      the entire Hitachi Group.
strongly commended for its practical approach.                                       Regarding environmental aspects, we will consider compatibility
• For further progress, we urge the Hitachi Group to explore the                     with our overall CSR concepts as we review our Environmental
issue of developing an eco-management index that combines                            Vision and long-term plan during fiscal 2005.




† Glossary

Nature-friendly Products & Eco-factories                Environmental Town Meeting                             Worldwide Stakeholder Collaboration
One theme of the Hitachi Group’s Environmental          A meeting where the Hitachi Group and stakehold-       One theme of the Hitachi Group’s Environmental
Vision relating to the manufacturing of environmen-     ers exchange opinions regarding environmental          Vision relating to the fostering of common values
tally friendly products.                                activities.                                            together with the creation of a sustainable society
                         ➔ P. 38, 39, 40, 41, 42, 49                                  ➔ P. 39, 41, 43, 57      through communications with stakeholders.
                                                                                                                                            ➔ P. 38, 39, 41, 42, 57
Eco-mind & Management                                   Sustainable Business Models
One theme of the Hitachi Group’s Environmental          One theme of the Hitachi Group’s Environmental         Life Cycle
Vision relating to environmental education and aware-   Vision relating to the development of business         The planning of a product from manufacturing to
ness-raising for employees and their family mem-        models that help create a sustainable society          utilization, and all stages in between until the item
bers, and environmental management activities.          through products and services for businesses that      becomes disposed or recycled (materials, produc-
                              ➔ P. 38, 39, 40, 42, 46   incorporate resource recycling, businesses that        tion, distribution, use, collection, disassembly and
                                                        support the recycling industries, as well as systems   proper processing).
                                                        that promote sustainable energy use.                                                 ➔ P. 14, 21, 31, 38, 49
                                                                                    ➔ P. 38, 39, 41, 42, 58


62    Hitachi Group CSR Report 2005
 I look forward to seeing the results of Hitachi’s commitment,
 particularly on the social dimension,
 to help build a sustainable society.


                                                                                                    Reitaku University Professor
                                                                                                                   Iwao Taka


In this report, all activities of the Hitachi Group are organized and          porting, it would be to clarify Hitachi’s intentions for future efforts.
presented from the viewpoint of CSR.                                           Because this report focuses on introducing the Hitachi Group’s
The Hitachi Group will have a significant impact on the rest of the             CSR activities to date, the future direction is not clearly mentioned.
world when all 340,000 employees take an earnest approach                      In future editions, while treating this as a status report on CSR
toward CSR. In that sense, I feel that the management approach                 activities, Hitachi could at the same time use it to express the
expressed in Hitachi’s catchphrase—“Society Changes. Hitachi                   Group’s commitment to the future. For instance, the report could
Transforms It.”—is a concept of not only accomplishments in                    identify issues to take on as challenges, such as career develop-
technology and product development, but also the building of a                 ment, diversity, green procurement, fund accumulation for future
sustainable society itself.                                                    soil remediation, etc., and indicate target years and benchmarks.
This approach can be understood from the angle of the CSR Policy               If each report then described progress in these endeavors, they
and implementation schemes, but what I notice the most is the                  would be more straightforward for readers to understand.
practical approach of the Group in regard to compliance with laws
and regulations. Because it does a large amount of work with the               Response from Hitachi, Ltd.
public—sector due to the nature of its business, Hitachi could face            For this first CSR report, we mainly focused on describing
risks relating to antitrust violations. Also, because of the global            Hitachi’s CSR concepts, which are based on the founding spirit
scale of its operations, Hitachi could face other risks, involving             of the company, and on describing our activities to date. From the
kick-backs to government officials in developing countries, for ex-             next fiscal year onward, besides the historical reporting, we would
ample. The Hitachi Group strives to confront these issues directly,            like to increase the coverage of the various activities of our more
by implementing trainings and auditing with these risks in mind.               than 1,100 Group companies, such as compliance and commu-
This report shows the Group’s commitment to these efforts.                     nications, and we would like to indicate the corporate direction
The examples of activities, arranged according to stakeholder, are             more concretely. As we put the CSR Policy of the Hitachi Group
full of positive implications. Particularly, efforts to boost competi-         into practice, we will clarify our plans to achieve objectives, while
tiveness by effectively utilizing information obtained through dia-            continuing our dialogue with various stakeholders.
logue in product development are commendable. These appear to
be indispensable for the continued implementation of CSR.
If I could suggest any possible improvements relating to social re-




GWPt                                               PBB                                                   RoHS Directive
Global warming potential (global warming coef-     Polybrominated biphenyl, a type of specified bromi-    Directive of the European Union on Restriction
ficient, in CO2 equivalent tonnes). Converted to    nated fire retardant.                                  of the Use of Certain Hazardous Substances in
amount of CO2 (t) by multiplying greenhouse gas                                           ➔ P. 40, 49    Electrical and Electronic Equipment. Targeting elec-
emissions by the global warming coefficient. The                                                          trical and electronic equipment, it prohibits the use
global warming coefficient shows the extent of      PBDE                                                  of six substances in any product sold in the EU on
impact on global warming from a greenhouse gas,    Polybrominated diphenyl ether, a type of specified     or after July 1, 2006. There are currently 25 member
compared to the equivalent amount of CO2.          brominated fire retardant.                             countries in the EU.
                                     ➔ P. 45, 53                                         ➔ P. 40, 49                           ➔ P. 14, 31, 40, 42, 49, 50, 61

ODPt
Ozone depletion potential (ozone depletion coef-
ficient in CFC equivalent, in tonnes)
                                         ➔ P. 45



                                                                                   Third-Party Comment on the Hitachi Group CSR Report 2005               63
Data on hitachi green web

You can find more details are available on hitachi green web.
http://greenweb.hitachi.co.jp/en/data

                      Category                                                Activity                 Related page                             Data provided on hitachi green web
 Company Profile                                                                                       P. i            List of Companies Covered by Report (Environmental Impact Data Covered)
                                                                                                      P. 2 –3         Overview of Financial Results in FY2004

 next eco         Environmental Activities of the Hitachi Group                                       P. 39           History of Activities
                                                                                                      P. 39–40        Action Plan and Results of FY2004
                                                                                                      P. 42           Green Point Average: Results and Targets
                                                                                                      P. 44– 45       Environmental Impact Data for Corporate Activities (FY2004)
                  Eco-mind & Management                       Environmental Management System         P. 46–48        Status of ISO 14001 Certification
                                                              based on ISO 14001 Certification
                                                                                                                      ISO 14001—accredited production site list
                                                              Environmental Education                 P. 48           Current and required numbers of legally qualified personnel
                                                              Environmental Accounting                P. 47–48        Expenses, Investment, Effect, Efficiency of Environmental Impact Reduction
                                                                                                                      Cost Breakdown Ratio by Industry Segment
                                                                                                                      Investment Breakdown Ratio by Industry Segment
                                                                                                                      Investment Breakdown Ratio by Industry Segment
                                                                                                                      Economic Effect Breakdown Ratio by Industry Segment
                  Nature-friendly Products & Eco-factories    Eco-Products                            P. 49– 50       Eco-Product Registration Trends
                                                                                                                      List of Eco-Products and Data Sheets
                                                                                                                      Environmental Efficiency of Products
                                                                                                                      Analysis Guidelines on Substances covered by the EU’s RoHS Directive
                                                              Decrease in Transportation Load         P. 51           State of Transportation Load
                                                                                                                      Ratio of Low-emission Vehicles for the Total Number of Company-owned cars
                                                                                                                      Commission Volumes for Containers and Packaging
                                                              Prevention of Global Warming            P. 52– 53       Trends in CO2 Emissions Per Unit of Production, and Total CO2 Emissions
                                                                                                                      CO2 Emission by Industry Segment
                                                                                                                      Trends in Composition of Energy Use
                                                                                                                      Trends in Emissions and Composition of Greenhouse Gases
                                                                                                                      Volume of New Energies
                                                              Chemical Substance Risk Management      P. 54–55        Survey Results for Substances Covered Under Japan’s PRTR Law
                                                                                                                      Investigation Results of PRTR Law
                                                                                                                      Ratio of Volume Handled, by Industry Segment
                                                                                                                      Ratio of Emission and Transfer Volume, by Industry Segment
                                                                                                                      Trend in Emissions for Substances Targeted for Reduction
                                                              Waste Reduction                         P. 56           Trends in Final Disposal Volume Reduction
                                                                                                                      Breakdown of Final Disposal Volumes, by Industry Segment
                                                                                                                      Breakdown of Final Disposal Volumes, by Type
                                                                                                                      Trends in Waste Emissions (Recycled and Reduced Volume)
                                                                                                                      Zero Emission Sites
                                                                                                                      Flowchart for the Treatment of Waste and Reusable Waste Products
                                                                                                                      Breakdown of Recycling Methods
                  Worldwide Stakeholder Collaboration         Information Disclosure                  P. 57           Issuance of Reports, by Site
                                                                                                                      Information Disclosure via the Internet, by Site
                                                                                                                      Contact Info to Request Reports of Companies/Sites
                                                                                                                      Environmental Web Links of Companies/Sites
                                                                                                                      Awards
                                                                                                                      Eco-Products 2004 Exhibition
                                                                                                                      International Eco-Products Exhibitions
                                                              Dialogue                                                Status of Environmental Town Meetings
                  Sustainable Business Models                 Resource Recycling                      P. 58–59        Number of Household Electrical Appliances Recycled and Product Recycling Ratio
                                                                                                                      PC Take-back Results and Resource Reuse Ratio
                                                              Energy Cycle                                            Energy Saving Solutions
                                                              Contributing to a Sustainable Society                   Hitachi Environmental Group ( Introduces Environmental Equipment Providers, etc.)
                                                              through our Business Activities
                                                                                                                      Hitachi Environmental Information Solution ( Introduces Environmental Solution Systems)



64    Hitachi Group CSR Report 2005


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