19
CSR Report Digest
CSR Repor tD i g e s t
demonstrating environmental burden exceeding its standards for
disclosure. This accounts for about 98% of the environmental burden
created by the Hitachi Metals Group overall.
Company names and related particulars are current as of March 31, 2012.
●Period
This report essentially covers fiscal 2011
(April 1, 2011 through March 31, 2012).
●Underlying Guidelines
"Environmental Reporting Guidelines" 2007 Edition, the Ministry of the Environment, Japan
"Environmental Performance Indicators for Businesses" 2002 Edition, the Ministry of the Environment, Japan
"Environmental Reporting Guidelines 2001-With Focus on Stakeholders," the Ministry of Economy, Trade and Industry, Japan
"Sustainability Reporting Guidelines 2006," Global Reporting Initiative
●Purpose of Publication
This report is published with the aim of acquainting readers with the
Hitachi Metals Group’s view towards corporate social responsibility (CSR).
Disclosing examples of its daily business activities in a reader-friendly
manner, the Group hopes that this report will serve as a valuable tool for
communicating with its stakeholders.
This report introduces the scope of Hitachi Metals Group management
activities to its broad spectrum of stakeholders.
The contents include corporate governance and compliance structures,
as well as its product development and monozukuri activities that
significantly contribute to the creation of a recycling-oriented society.
Through disclosure of such information, the Group aims to broaden and
deepen conversations with the global community, while diversifying the
scope of corporate activities.
Detailed information can be found on the website.
●Scope
This report covers 69 companies of the Hitachi Metals Group (the Group)
consisting of Hitachi Metals, Ltd. (the Company) and its Group companies
(59 consolidated subsidiaries and 9 equity-method affiliates). The scope of
environmental data includes data for the 49 companies within the Group
Note on the Corporate Social Responsibility Report
Editorial Policy
For detailed information, please see
http://www.hitachi-metals.co.jp/e/corp/corp14.html
or the PDF file.
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Top Message
Response to Flood Damage in Thailand
Hitachi Metals Group’s CSR
Social Report
Environmental Report
Third Party’s Opinion
Economic Report
Corporate Data
The Hitachi Metals Group,
operating in countries with diversified values,
will as a global corporate group,
pursue business activities that respond to
public trust and expectations.
I would first like to express my appreciation to all stakeholders in Hitachi Metals
for their continued understanding and support. Thank you also for taking the time to read
the Hitachi Metals Group’s 2012 CSR Report (digest).
The Hitachi Metals Group’s corporate philosophy is to contribute to society by creating
"the best possible company," and we believe corporate social responsibility (CSR) to be
the essence of management.
In this report I will explain the Hitachi Metals Group’s CSR from a management perspective,
while reviewing the highlights from the past year.
President,
Chief Executive Officer
and Director
The succession of major natural disasters during 2011, including the
earthquake disaster in Japan and flooding in Thailand, allowedus to
reaffirm through our response our social responsibilities as a company.
During the Great East Japan Earthquake, the Hitachi Metals Group
suffered damage to a portion of its facilities, but managed to restore
operations in a short time. We were also able to limit the impact
from the government ’s directive to curb power use in the Tokyo
Electric service area by making arrangements for in-house electricity
production, and shifting our operations plans. As the situation for
Japan’s power supply remains unclear, we will continue to make a
concerted effort as a corporate group to further our power conserva-
tion measures.
Heavy rainfall in Thailand also caused extensive flooding in many
areas of the country, and in October floodwaters reached the indus-
trial park where many Japanese companies are located. The Hitachi
Metals Group’s production facility was inundated and forced to cease
operations. However, we were able to limit the impact on our cus-
tomers by shifting production elsewhere and implementing other
measures. At the same time, thanks to the diligent recovery efforts
of our local employees, we managed to resume production com-
paratively quickly.
The areas hit in this disaster are prone to flooding, and the risk of
flood damage remains. The Thai government is building retaining
walls and implementing other measures to prevent a reoccurrence.
At the Hitachi Metals Group’s factory, as part of the recovery plan we
are moving electricity receiving equipment and other power facilities
to higher locations in an effort to limit the damage from any future
flooding.
The recovery effort from the Thai flood damage was deeply moving
and impressive. When the factory was inundated with water, local
employees left their own swamped homes and rushed to the factory
to assist with the recovery work.
Our local subsidiary, Hitachi Metals (Thailand) Ltd., adopted "Reli-
ability" as its corporate motto at the time of establishment, and has
pursued management as part of the local community, adhering to
the idea that the company belongs to the employees who work
there. It gave me great pleasure to see that at a time when the com-
pany faced a difficult situation, the ideals that we had been reiterat-
ing were taken to heart.
Globalization is an essential part of our business development. In its
purest form globalization is measured by whether local employees
recognize that the factory is part of their company, and that they are
in the same boat with everyone at Hitachi Metals. I believe this spirit
was on display.
Cultures and customs differ among countries and peoples, and it is
not our intention to unilaterally force the Japanese way on anyone.
At the same time, however, the fact remains that we are all in the
same Hitachi Metals boat, and are working together. The response
in Thailand will serve as an example of fostering a sense of unity in
regions around the world.
The increase in the number and scale of natural disasters as a
consequence of climate change, such as the flooding in Thai-
land, has become an issue in recent years. Recent natural disas-
ters have forced us to accept the possibility of events unimagi-
nable from past experience, and that surpass our expectations.
In addition to natural disasters, all manner of business risks have
increased, including such rapid changes in the business environ-
ment as the acute rise in raw material prices, and fluctuations in
the currency market. It is important that we revise such strategies
as consolidation to enhance efficiency, in order to diversify risk.
The major impact on the whole supply chain resulting from the
recent string of natural disaster has called into question the
adequacy of our corporate Business Continuity Plan (BCP). While
this plan must of course focus on resuming operations quickly
when a risk becomes an issue, at the same time we need to
ensure a minimum level of capacity in order to meet our respon-
sibility to maintain supply.
I believe we were able to recover relatively quickly from the
earthquake disaster and Thai flooding. However, even if our
facilities are restored, disruption in the supply chain means that
we are unable to obtain materials, and so cannot fulfill our
responsibility to maintain supply. We are currently formulating
BCPs for all business divisions both in Japan and overseas. We
expect to finalize plans for all domestic divisions of the Hitachi
Metals Group by the end of fiscal 2012, and will confirm plans at
overseas divisions as quickly as possible.
A thorough awareness of compliance and safety helps to secure the
Lessons Learned in Disaster a Guide for the Future
What the Response of Our Thailand Employees Taught Us
Creating a BCP to Fulfill our Responsibility to Maintain Supply
Fostering Compliance and Safety Awareness in Globalization
Hitachi Metals Group’s public standing as a healthy company, and is
the foundation for corporate management to ensure sustainable cor-
porate growth in the future.
Compliance today extends beyond direct violations of the law, and
includes cases that take into account influence over the supply chain
or value chain. The social responsibility for companies is becoming
broader in scope, and subject to close scrutiny.
As a result of globalization the employee makeup for the Hitachi
Metals Group includes an extremely diverse range of peoples,
nationalities and values. With this in mind, in 2010 we formulated
the Good Practice Guidance for Hitachi Metals Group Companies to
serve as a common global standard for corporate conduct. By ensur-
ing full understanding of these principles, we are raising compliance
awareness at the individual level. Based on our Corporate Philosophy
of "Obey the law and walk the path of virtue," we will continue to
strive to be worthy of public trust and to meet expectations.
Alongside compliance, ensuring a safe workplace is the foundation
of our business activities, and a driver for competitiveness. Maintain-
ing the work environment is always a priority matter. Nevertheless,
individual awareness is a large part of preventing accidents, and
unfortunately there is still room for improvement.
The best way to ensure compliance and safety is through step by
step training and other assiduous efforts to foster ethics at the indi-
vidual level. At the same time, we also believe in the need for stricter
auditing with warning and check functions. We are seeking to elimi-
nate accidents and mishaps through such a dual approach of
improving ethics and conducting regular checks.
Hitachi Metals is a materials company with a unique capacity for
technological development. Materials are the starting point for
change and evolution in all sorts of industries, and our social
responsibility as a materials company is in essence the creation of
high-quality materials suited to the needs of the times.
Environmental responsiveness has today become a global issue. We
seek to contribute to society and ensure sustainable growth by
developing and offering environmentally-friendly products that draw
on our strengths.
Companies in all industries establish their own approaches to envi-
ronmental responsiveness by building on their particular characteris-
tics. In the automotive industry, for example, the energy-efficiency
strategies of various companies include hybrids, electric vehicles,
clean diesel, turbochargers and low-fuel engines, and the materials
they require are of course different. However, we are able to provide
light, strong, and high-quality materials for a variety of purposes,
such as neodymium magnets for electric vehicles, and HERCUNITE®
casting components for turbocharged engines. This development
capacity to meet the diversified energy efficiency needs of a wide
range of companies is the core strength of the Hitachi Metals Group.
We believe that by utilizing this ability to maximum effect we are
meeting public expectations in the environmental field.
We place importance on maintaining communication with the areas
where our business offices are located. Each business office sup-
ports its local community and seeks to build a sense of unity by
becoming part of it. Through sporting events, employee volunteer
programs and other means we take a long-term, community-based
approach without focusing on the scale of events.
For example, the Hitachi Metals Group has been a long-standing
supporter of sporting events, including the Junior High School Good-
will Sporting Event through the Yasugi Works (Shimane Prefecture),
and the Kumagaya Sakura Marathon through the Kumagaya Works
(Saitama Prefecture). These events have become established as
annual traditions in the community.
Sustainable growth for the Hitachi Metals Group would not be pos-
sible without CSR. At the same time, there is still room for improve-
ment in our CSR initiatives. All employees need to embody the Good
Practice Guidance by consistently applying it in their everyday busi-
ness activities. We strive to pursue communication with all stake-
holders, including customers, business partners, shareholders and
investors, employees and local communities, to reflect a broader
perspective in management, and to build a relationship of trust with
society. We welcome honest opinions and feedback from readers
regarding our CSR efforts.
Environmental Conservation as a Materials Company with Technological Development Capabilities
Communication with Stakeholders
Hitachi Metals (Thailand) Ltd. overcomes flood damage and restores local manufacturing operations
The flooding in Thailand during October 2011 severed the power supply to Rojana Industrial Park in Phra Nakhon Si Ayutthaya Province, where
Hitachi Metals (Thailand) Ltd. is located, while rising water in the factory caused extensive damage to equipment and products. Concerns were
raised that the cessation of operations at the factory, which manufactures electronics components and other products, would have a major
impact on the Hitachi Metals Group’ s business activities. However, owing to the rapid and concerted effort by local staff, together the
assistance of business partners and Hitachi Group companies in Thailand and around the world, we made diligent efforts toward recovery and
the manufacture of alternative products, and while limiting the negative impact on customers, restored local operations in April 2012.
The reopening ceremony and inauguration of the spirit house was held on April 17
Message from Thailand
The flooding of our factory was an unprecedented crisis. But drawing on the expertise we have
accumulated over the 21 years since our establishment, we quickly implemented measures in
response, including setting up a temporary office in Saraburi and a factory in Nakhon Nayok, and
shifting production to partners in Thailand, as well as to Japan and the Philippines. In particular, owing
to the dedication of local staff members, many of whom also suffered flooding to their homes, and with
a determination to restore operations at Hitachi Metals (Thailand), all employees came together as one,
and with a massive push, in a stroke put us squarely on the path to recovery. The restoration was
nearly complete by April. We will continue to contribute to Hitachi Metals’ business development as a
member of the corporate group, and as one will strive to realize the principle of “To Be an Excellent
Company” and gain the trust of customers. Soichi Nakanishi (pictured, center) President of Hitachi Metals (Thailand) Ltd.
The Hitachi Metals factory during the flood Employees heading for cleanup work after the waters receded
Local employees were dispatched to Japan to support alternate manufacturing operations
Electricity receiving equipment was relocated to a higher location as a measure against future flooding
Everyone at Hitachi Metals (Thailand) Ltd.
For more detailed information, please refer to the following URL: http ://www.hitachi -metals.co. jp/e/corp /corp14.html
■Hitachi Metals Group’ s CSRSince its inception, the corporate philosophy of the Hitachi Metals
Group has been to "contribute to society by creating 'the best pos-
sible company.'" This philosophy has been properly reflected in the
Hitachi Metals Group policies toward CSR.
■Implementation of the Hitachi Metals Group Corporate Ethics Month
We established the month of October 2011 as the Hitachi Metals
Group Corporate Ethics Month and carried out a variety of mea-
sures and activities.
■Corporate GovernanceThe underlying basis for corporate governance at Hitachi Metals is to
ensure management transparency and efficiency, meeting the needs
of our stakeholders, and increasing corporate value. We believe this
to be one of the most important management issues within our firm.
Accordingly, it is imperative that we create an organizational structure
in which management oversight and business operations function
effectively and in balance. We also believe that timely, high-quality
information disclosure contributes to the improvement of corporate
governance. In pursuit of this philosophy, we have chosen to go
beyond levels of simple financial disclosure, regularly publishing the
Hitachi Metals formulated its Code of Conduct for Hitachi Metals Group Companies in July 2006. In September 2010, the Good Practice
Guidance for Hitachi Metals Group Companies was established as a group-internal rule to complement the code of conduct. We have
also been promoting CSR initiatives with "Obey the law and walk the path of virtue" at the foundation of our corporate activities.
However, violations of the Antimonopoly Act were uncovered in 2006 and 2007. Since then, in order to prevent recurrence, we have
been implementing internal on-site training at our domestic and overseas offices led by the Compliance Department. In fiscal 2011,
we continued to take measures for these offices such as internal on-site training and compliance training for specific levels and
positions. We will maintain our compliance efforts without sidestepping the cases of the past.
■Compliance Efforts
[Internal On-site Training]
1. On-site training seminars conducted by the sales director and the Compliance Departmentregarding compliance with the Antimonopoly Act and the Code of Conduct
Training content: Compliance with the Antimonopoly Act and the Code of Conduct,
global compliance for the prevention of acts of bribery,
and information security
Target offices for training: Domestic business offices
Hitachi Metals head office, branch offices, sales offices,
manufacturing sites and research centers; and Group
companies' head offices and sales sites
Target employees: All holders of e-mail addresses
Term: August to December 2011
Number of sessions: 77 seminars for 140 business offices
(including joint and multiple sessions)
Number of participants: 3,591
2. On-site training seminars at overseas offices conducted by the Compliance Department
Training content: Compliance with the Antimonopoly Act and the Code of Conduct,
global compliance for the prevention of acts of bribery,
and information security
Target offices for training: Overseas business offices
Target employees: Manager level and above
Term: January to March 2012 (July 2012 for the business offices in Thailand)
Number of sessions: 25 seminars for 31 business offices (including joint sessions)
Number of participants: 502
3. Compliance training for specific levels and positions
2011 Apr. Training for new hires
Jun. Training for newly appointed assistant managers
Jul. Training for newly appointed junior executive
Aug. Sales accounting training
Nov. Training for newly managers
Compliance training at the head office
Compliance training at overseas office
Compliance training at overseas office
details of individual business segments and medium-term manage-
ment plans.
■Internal Control SystemHitachi Metals, in accordance with the requirements of the U.S.
Sarbanes-Oxley Act, is expanding its internal control system based
on a standard framework (COSO Framework). Through this system
the internal controls for financial reporting are documented, and
their effectiveness is evaluated. In fiscal 2008, this system was
brought in line with the internal control reporting structure intro-
duced based on the requirements of Japan’s Financial Instruments
and Exchange Law. Hitachi Metals will continue to work to enhance
the effectiveness of its internal controls.
[Compliance Extraordinary Audits]
Hitachi Metals conducted extraordinary audits of all its business offices, and the consolidated subsidiaries that operate
commercial businesses or independent businesses. Auditors reviewed documents related to these businesses (such as
invoices, and papers on industrial organizations to which they belong) and took statements from all sales managers to ensure
there were no violations of the Antimonopoly Act.
We also reviewed the minutes from meetings of industry groups and the like that our employees attended (Compliance
Record*), and confirmed that no illegal activity was carried out.
December 2011 - March 2012: 19 business offices and 78 general managers and above responsible for sales.
The safety records of our group in fiscal 2011 show four accidents involving lost work time at Hitachi Metals and eleven
accidents at the Hitachi Metals Group in Japan compared to two accidents and six accidents in the previous year, respectively.
This indicates that we were unable to improve our safety records sufficiently during the past one year.
To improve the situation, we plan to implement a company-wide safety and health program in fiscal 2012, under the slogan
"Entrench the concept of 'Safety always comes first' in the culture of Hitachi Metals Group with all-out efforts by each
employee." Since the analysis result shows that 90% of accidents last year were due to human error, we will focus on the
themes of "planning and implementation of measures for basic facilities to ensure fundamental safety" and "increasing safety
awareness among employees." To be more precise, we strive to improve facilities used for works that are considered to be
highly risky, in order to ensure fundamental safety, and eliminate factors that hinder the enhancement of safety culture,
seriously reflecting on the state where the awareness of safety is not deeply entrenched in our workplace.
■Effort to Eliminate Occupational Injuries
[Compliance Audits]
The Hitachi Metals Group conducts internal audits of all its offices led by the Internal Auditing Office. The Compliance
Department joins this audit activity in order to conduct compliance audits to check whether there is any illegal practice.
* Compliance Record: A record stating that no action was taken in violation of applicable law in occasions where meeting with employees of competitors was unavoidable, such as
industry-group conferences or similar events.
[Compliance Hotline]
Hitachi Metals formulated the policy for its Compliance Hotline in April 2005, and launched the internal reporting system at
Hitachi Metals and its Group companies in order to help prevent legal violations or improper actions, and to quickly correct the
situation should violations occur. This system allows all employees at Hitachi Metals and its Group companies to report
incidents in their workplace by e-mail or sealed letter. Employees can use this system to directly report and resolve issues
when they are unable to consult with their supervisor, or receive no response.
In this system, employees can not only report anonymously or through a specified channel for the Compliance Hotline but also
directly report to the Audit Committee. An explanation of the Compliance Hotline system is included in all company-wide
compliance training to ensure that a high level of awareness of its existence is maintained among all employees.
For more detailed information, please refer to the following URL: http ://www.hitachi -metals.co. jp/e/corp /corp14.html
The Shimane Prefecture has launched its Shimane Forest CO2 Absorption Certification System in 2010. This system is to certify
the amount of carbon dioxide absorption increased as a result of preservation activities for prefectural- and municipality-owned
forests by companies and organizations through donation of funds or labor. In 2011, the Yasugi Works donated funds for
preserving 5.33ha of forests (equivalent to 47.96 tons of CO2 absorption increased) under the system.
Furthermore, a forest preservation event was held on November 28, 2011 to promote the certification system as well as the CSR
activities of companies who participated in the system. From the Hitachi Metals Group, 52 volunteer employees of Hitachi Metals,
Ltd. (the Yasugi Works and Metglas Yasugi Works), HMY Ltd. and Hitachi Metals Precision, Ltd. joined the event. They conducted
tree thinning, pruning, bucking, etc. for about 0.1ha of the forest to improve its environment. We plan to continue voluntary forest
preservation activities.
Participating in the Prefectural Forest Preservation Initiative Yasugi Works, Hitachi Metals, Ltd.
[2011 Forest Preservation Event to Promote
the Shimane CO2 Absorption Certification System]
Date: November 28, 2011
Place: Fube, Hirose-cho, Yasugi City, Shimane Prefecture
Sponsor: Shimane Shinrin-Support Center
Co-sponsor: Yasugi Works, Hitachi Metals, Ltd.
Partners: Shimane Prefecture, Yasugi City,
and Shimane Tobu Forestry Cooperative
Participants from Hitachi Metals Group: 52 employees
Hitachi Metals’ employees conducting forest preservation activities
A sign to promote forest preservation Forest preservation activities 2011 CO2 absorption certificate
Pursuing Mutual Growth with Our Business Partners
■Seeking to Create Products That Offerthe Greatest Customer Satisfaction
Driven by twin philosophies of priority on quality and placing the customer
first, the Hitachi Metals Group continues to improve our quality assurance
technologies, offering products that delight both our customers and the
ultimate product consumers.
This is yet another way in which we contribute to the betterment of society.
■With Our SuppliersCSR in procurement is achieved through a combination of our own CSR
practices, and business relationships with other companies that follow CSR
principles. When the trading relationship begins Hitachi Metals declares its
basic policies, and confirms the CSR compliance status of its partners.
●Comply with laws, regulations and social requirements
●Fair, clean trading●Open, global procurement●Maintain partnerships●Keep confidentiality●Conserve the environment
Hitachi Metals Group’ s Procurement Policy
[Ruriko Takeo, Hitachi Metals FineTech, Ltd.]
We at Hitachi Metals FineTech, Ltd. have been participating in the Asahi Town Corporate Econet, a local volunteer
organization. Under the Green Curtain Project, we encouraged the member companies of Econet including the Mie Prefectural
Government to grow Goya, aiming to increase the awareness of energy-saving within the town. We planted
66 seedlings of Goya in 33 planters set along the wall of our office building. At first, the seedlings grew very
slowly: all of us cared for the plants and watered in the morning and evening, saying "Grow up!" We often
talked about Goya which activated communication among the employees. Eventually, we harvested 262
Goya in the first year: we shared Goya, enjoying it at home and the company cafeteria. We are really happy
to receive this prize and willing to continue working together on energy-saving efforts.
On December 27, 2011, the first Hitachi Group Green Curtain Contest was held.
This contest is designed to value innovative activities relating to the Green Curtain Project, one of the initiatives of the Hitachi
Group Summer Energy Conservation Campaign. It also aims to raise employees' awareness of energy conservation and motivate
their efforts. In May 2011, 10,000 seedlings of Goya (bitter gourd) were distributed to about 300 domestic offices of the Hitachi
Group. At the contest, excellent activities in the use of "Green Curtains" were selected from among 85 candidates and awarded
Grand Prizes, Excellence Prizes and Encouragement Prizes by group and individual categories. Among the Hitachi Metals Group,
Hitachi Metals FineTech, Ltd. was selected as recipient of the Encouragement Prize, Inspiration Award in the category of group for
its promotion efforts to increase the awareness of energy-saving through Goya cultivation.
Receives an Inspiration Award at the Hitachi Group Green Curtain Contest - Efforts to Increase the Awareness of Energy-saving by Goya Green Curtains - Hitachi Metals FineTech, Ltd.
[Environmental Management Department, Engineering & Technology Center, Hitachi Metals, Ltd.]
In May 2011, the Hitachi Group called for the Green Curtain Contest within its Group companies and supplied Goya seedlings
to them. Responding to this campaign, we encouraged the business offices within the Hitachi Metals Group to join the contest,
and as a result 20 business offices joined. Each of them reported the growth of Goya seedlings in their own unique way: some
wrote in the form of a diary and others in the form of quiz. We could see that they really enjoyed growing Goya.
The Group plans to host the contest again this year. We wish as many of our employees as possible to join it, with the aim of
reducing CO2 emissions and improving internal communications, and obviously, the happy goal of harvesting Goya.
The green curtain cared for by all employees The award ceremony
Promoting Truthful Communication with Society
■Personal Information Protection/Information Security Initiatives
The Hitachi Metals Group established a "Basic Policy of Information
Security" in April 2004, followed by a "Personal Information Protec-
tion Policy" in January 2005, establishing a system of personal
information protection/information security based on these policies.
The Company continues to update information security measures
on an ongoing basis.
■With Society, Including Our Shareholdersand Investors Timely Publication of Information
To earn trust as a highly transparent "open firm," the Hitachi
Meta ls Group is work ing to enhance in-house sys tems to
appropriately implement prompt, accurate and fair disclosure of
company information and publish information in a timely manner.
For more detailed information, please refer to the following URL: http ://www.hitachi -metals.co. jp/e/corp /corp14.html
Fostering the Welfare of Employees and Society
■Human Resources TrainingThe basic stance of the Hitachi Metals Group toward its personnel is
summed up in the phrase "strength through harmony," the fundamental
spirit we have followed since our founding. Based on this philosophy,
we continue to conduct activities aimed at creating a corporate culture
that facilitates individuality and independence.
■Labor and Management RelationsHitachi Metals sincerely addresses common management-labor issues, respecting
the basic rights and responsibilities of each, built on a "foundation of mutual trust."
■Respecting Human RightsHitachi Metals Group has established channels for reporting harassment
issues, along with other corporate systems to guarantee basic rights. We
have also focused on systematically raising awareness of human rights by
providing a range of educational opportunities, including e-learning
courses on human rights and level-appropriate training sessions.
■Employment of the Physically Challengedand Support for Nurturing the Next Generation
Hitachi Metals has been an early adopter in building a system providing
[Mieko Sato, Environmental Management Department, Engineering & Technology Center, Hitachi Metals, Ltd.]
I am very happy to know that our efforts to the Ecocap Program were finally successful to some extent. Before
starting this program, the way of disposing garbage at the headquarters was not good. In order to improve the
situation, we decided to change the arrangement of garbage bins at the end of 2010. We started by checking
the actual condition of disposal, confirming the waste disposal rules of the community and the office building,
and referring to the advice of the cleaning company and its staff members. Through these processes, the
Ecocap Program was included as part of the waste separation campaign at the headquarters.
The Kyushu Works of Hitachi Metals, Ltd. has been sponsoring the Kanda Town Fureai Marathon Festival every year. The festival
was held on Sunday, March 4 2012, aiming to invite the residents of the entire Kanda Town to promote the "Town People
Charter" as well as their good health. Although it was raining, the employees of the Kyushu Works conducted volunteer activities
such as doing reception work, collecting runners' number tags and presenting commemorative gifts.
Supporting the 30th Kanda Town Fureai Marathon Festival Kyushu Works, Hitachi Metals, Ltd.
Sponsor: The 30th Kanda Town Fureai Marathon Festival Committee
Organizer: Kanda Town, Kanda Town Board of Education, and Kanda Town Athletic Association
Supporter: Kanda Town Sports Promotion Committee, Kanda Town Traffic Safety Instruction Council, Kanda Town Community
Leaders Association Shirakawa Group, Kanda Town Child-rearing Association, and Kanda Town Youth Development Council
Co-sponsor: Kyushu Works of Hitachi Metals, Ltd.
Date: Sunday, March 4, 2012
Presentation of support money
Hitachi Metals head office and Hitachi Tool Engineering, Ltd. located within the SEAVANS North
Building (Shibaura, Minato-ku, Tokyo) have been promoting the "Ecocap Program" since June 2011.
This program is initiated and promoted by the Ecocap Movement, a non-profit organization (NPO),
through collection and sale of plastic bottle caps (to recyclers) and donation of the sales proceeds to
developing countries for children's vaccines.
The first collection was carried out in February 2012, about eight months after the start of the
program, which amounted to 7kg of caps (equivalent to 30,400 caps). We made a donation from the
sales proceeds of the caps that could provide vaccines for 38 children.
We Are Promoting the Ecocap Program!Hitachi Metals Head Office and Hitachi Tool Engineering, Ltd.
S c i e n c e C l u b : A m e m b e r s h i p o r g a n i z a t i o n o f t h e
Science Museum, targeting children from those in their third year
of elementary school to high school ages. It aims to nurture and
develop chi ldren's love of sc ience, by a l lowing them to
experience the "Joy of Creation" through various science
activities such as workshops, experiments, nature observation
classes as well as tours of the Museum's facilities.
employment opportunities for physically challenged individuals. In 1998,
Hitachi Metals established the Hallow, Ltd., a special subsidiary, followed by
Kuwana Create Co., Ltd. (current Hitachi Metals FineTech, Ltd.) in 2006,
which received special government certification as a company offering
employment opportunities for the physically challenged. These two
companies have been recognized by their local communities for their
policies, including the active hiring of mentally impaired individuals.
Starting from fiscal 2008, the Company has established a children allowance
benefit for employees as a policy for supporting the development of the next
generation, strengthening our support of employees who are raising children.
In 1992, Hitachi Metals was also one of the first companies to adopt a
system to re-employ individuals who have retired from the Company due to
childbirth or home care, demonstrating once again our forward-thinking
policies. In addition, Hitachi Metals has an established child-care/home-care
leave program. This program provides employees with generous conditions
in terms of the scope and period of leave that exceed the requirements under
the revised Child Care and Family Care Leave Act. For example, employees
can take home-care leave not only for their children but also their parents (or
in-laws) and spouse.
The Hitachi Science Seminar titled "the Amazing World of Magnetism" was hosted at the Science Museum (Chiyoda-ku, Tokyo)
on three Sundays from November 20, 2011 led by three companies of the Hitachi Group. About 50 elementary school children
who are the members of the Science Club* attended.
The seminar is a science class conducted by Hitachi, Ltd., Hitachi Metals, Ltd and Hitachi Plant Technologies, Ltd. It offers
science programs developed based on the technologies and expertise of each company, aiming to keep children from losing
further interest in science and nurture their interest in creating things and learning the system of society. This time, the theme
was "magnet": children were asked to think about technologies using magnets.
In the first session titled "What is a magnet?" an instructor from Hitachi Metals, Ltd. explained the origin and properties of a
magnet and conducted an experiment to make a magnet by adding a strong magnetic force to materials. The second session
"Making a clip motor" was conducted by Hitachi, Ltd. The instructor first explained the history of motors, and then let children
make a clip motor using paperclips and explained why and how it works. The third session was about the magnetic treatment for
purifying water (Hitachi ballast water purification system) lectured by Hitachi Plant Technologies, Ltd. Through an experiment of
water purification, the children learned how Hitachi technologies are used to prevent marine pollution by using magnets.
In the end, we received positive feedback from the children participated in the seminar: "I was surprised to find that magnets are
used in so many different types of technology," "I never realized that magnetics are used in our daily lives," "I want to do such a
job in the future," etc.
We will continue to offer various hands-on science programs to inspire children's interest in science, thereby contributing to the
education and development of the next generation.
Hitachi Group Companies Hosted a Hitachi Science Seminar for Elementary School Children
*
For more detailed information, please refer to the following URL: http ://www.hitachi -metals.co. jp/e/corp /corp14.html
Quantitative Items
Qualitative Items
Eco-Mind & Global Eco-Management
Plants and Offices with High Level of Consideration to the Environment
Providing Next-Generation Products & Services
Eco-Mind & Global Eco-Management
Providing Next-Generation Products & Services
Cooperation with Stakeholders
Environmental ObjectivesCategory Indicators
Category Environmental Objectives Fiscal 2011 Results
Raising the Level of Our Environmental Activities
Environmental Education
Expand Eco-Products
Reducing the Product Transportation Burden
Improving Our Generation of Waste per Unit
Global Warming Prevention
Promoting Global Environmental Management
Improving Environmental Managers’ Skills
Preserving Ecosystems (Biodiversity)
Proper Management of
Chemical Substances Contained in our Products
Environmental Information Disclosure
PR activities for Eco-Products
Social Contribution
GREEN 21 - 2015＊1 Green Points
Completion rate of Eco-Mind training through e-learning
Registration rate of Eco-Products
Creation of Eco-Products Select＊2
Reduction rate in transport energy consumption (from previous year’s level,
Reduction rate in our generation of waste per unit of nominal output
(from fiscal 2005 level, globally)
Reduction rate in CO2 emissions per unit of nominal output (from fiscal 2009
Reduction rate in CO2 emissions (from fiscal 1990 level, in Japan)＊3
Held Hitachi Metals Group Environmental Committee meeting
Implementing environmental impact studies at overseas business offices
Environmental Internal Auditor training: 22 people attended
Environmental Internal Auditor follow-up training: 5 people attended
Creation of Ecosystem Preservation Assessment Check Sheet
Implement the Environmental CSR-Compliant Monozukuri structure
Creation and implementation of a management system for chemicals in our
Hitachi Metals Group CSR Report 2011 issued
Welcoming plant tours
Planning exhibitions, etc. (Exhibits at Eco-Products 2011, etc. )
Presenting information about our Eco-Products in Eco-Products Directory
Participation in local environmental preservation activities
Implemented local area cleanup activities
●Medium-to-Long-Term Environmental Strategy
Towards Global Environmental ManagementThe Hitachi Metals Group continues to reduce our environmental burden,
with a focus on the environmental risk management. We promote a shared
understanding of the Hitachi Metals Group Basic Environmental Protection
Policies and action plans among Group companies, understanding the
different characteristics of the areas around the world in which we operate.
Global Warming PreventionTaking society ’s need to reduce CO2 emissions as an
opportunity, we aim to innovate our manufacturing
processes, and strengthen our manufacturing technologies
while simultaneously aiming to reduce CO2 emissions.
Expansion of Eco-ProductsWe dedicate management resources to creating and expanding Eco-
Product lines that reflect environmental concerns for reducing energy
and saving resources, preventing global warming, and reducing the
use of hazardous substances
Recycling of ResourcesWe are pushing forward multiple initiatives such as the
reduction of the amount of waste by innovating the
manufacturing processes, development of uses for recycled
waste, and recovery of used products.
●Environmental Objectives, Targets, and ResultsIn fiscal 2011 we began implementing our Third Term Environmental Action Plan (for fiscal years 2011 – 2015). Through
recovery of used products, strengthening communication with our overseas business offices and other measures, we have been
able to achieve our targets in all categories.
＊1:Hitachi Group’s system for evaluating the achievement level for environmental activity targets. Evaluation criteria were changed in fiscal 2011.
＊2 :These are selected eco-products and services with especially high environmental value.
＊3:The site subject to the target is a Type 1 designated energy management plant in Japan.
Exhibition in "Eco-Products 2011"
Hitachi Metals exhibited at Eco-Products 2011 held at the Tokyo Big Sight from
December 15 through December 17. We exhibited rare-earth magnets, amorphous
ribbons, and other Eco-Products. We also designed a demonstration area to allow
people of all ages to learn about rare-earth magnets, experimenting with strong
magnetism and electricity generation.
200
400
600
800
1000
1200
1400
0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
0
CO
2 e
mis
sion
s (k
t-C
O2/y
ear)
Net
sal
es e
nerg
y ra
te (Kℓ
crud
e oi
l equ
ival
ent/
mill
ion
yen)
1990 2005 2006 2007 2008 2009 2010 2011 2012
Net sales of Eco-Products (results)
Ratio of Eco-Products sales per net sales (results)
Ratio of Eco-Products sales per net sales (target)
CO2 emissions (results)
CO2 emissions (target)
Net sales energy rate (results)
2015
600,000
400,000
200,000
0
100
90
80
70
60
50
40
30
20
10
0
Net
sal
es (m
illio
n ye
n)
Rat
io o
f Ec
o-P
rodu
cts
sale
s to
net
sal
es (%
)
2008 2009 2010 2011 2012 2015
500,000
300,000
100,000
Ratio of Eco-Product Sales
Fiscal 2011 Targets Fiscal 2011 Results Achievement level
Achievement level
in Japan)
level, in Japan)＊3
products
351GP
90%
75%
1 model
1%
7%
2%
10%
410GP
99%
76%
2 models
1%
18%
16%
23%
Global Warming PreventionExpand Eco-Products
CO2 emissions targets900 thousand tons or less (2008–2012)
: Target Achieved : Target 90% or More Achieved : Target Not Achieved
For more detailed information, please refer to the following URL: http ://www.hitachi -metals.co. jp/e/corp /corp14.html
Solar CellsSmart
Fuel Cells
Smart Meter
Target Materials for CIGS Solar Cells
Interconnector Materialsfor Solar Cells
Interconnector Materials forSolid Oxide Fuel Cell (SOFC)
Amorphous Ribbon for Distribution TransformersMetglas®
Solar Power SystemSORASIE®
Hybrid/Electric Vehicles
Factories/Plant
Advanced Die Steel for Die Casting DAC-MAGIC®
End Mills for Deep-CuttingEpoch DeepEvolution Series
Composite Tungsten Carbide Roll DUPLEX®
Society & Infrastructure
Amorphous Cut Cores
Non-Sprinkling Snow Melting EquipmentHot Water Panel
●Hitachi Metals Group Eco-Friendly, Energy-Conservation Products
The Hitachi Metals Group provide materials and products that contribute to the environment and energy conservation in the
fields of our lives, such as energy generation / transformation and power usage in factories, homes and automobiles.
For more detailed information, please refer to the following URL: http ://www.hitachi -metals.co. jp/e/corp /corp14.html
Substation
Grids
Distribution Grid
Electrical Grid
Magnetic components for power line communication
Clad Metals for Secondary Battery Electrodes
Rare-Earth MagnetFor HEV/EV NEOMAX®
Precision-Cast Blades for Gas Turbines
Rare-Earth Magnets for Wind Power GenerationNEOMAX®
Amorphous RibbonMetglas®
Amorphous Cut Cores
Turbine Blades
Hybrid/Electric Vehicles
Heat-Resistant ComponentsHERCUNITE®-S series
Fashionable Aluminum Road Wheels SCUBA®
Fuel-Efficient Vehicles
Thermal Power Generation, and Others
Wind and Solar Power Plants
Diesel Paticulate Filter for Midium and Heavy Duty Diesel Engine
BCPs. That means to internalize the crisis response into normal
management activities.
The Hitachi Metals Group views firmly maintaining fundamental
principles, advancing technology development in the materials
field and responding to the needs of society as their mission. In
such fields as energy, automobiles and electronics, the ratio of
sales from environmental products reached 76% in fiscal 2011.
This report also introduces employee environmental activities and
community activit ies. The activit ies of female employees in
particular are outstanding. I hope the employment environment for
women improves and that the female employees can better
manifest their creativity.
Workplace safety is the keystone of CSR. The Hitachi Metals
Group must make improvements to both systems and hardware to
prevent any recurrence of the type of incident which suspended
operations in 2011.
CSR activities are expanding along with globalization. Because
compliance related issues are complex, including the supply chain
starting with the mining or procurement of iron ore and relations
with local stakeholders, CSR management will demand even
greater attention in the future. It will become necessary to expand
global CSR information collection systems and disclose the data in
CSR reports.
This repor t is a good example of the Hitachi Metals Group’s
efforts to uphold their ideology while evolving through innovation.
I expect this company to continue demonstrating CSR leadership
in the future.
From 2011 through early 2012, the Japanese economy suffered
various shocks, making corporate management difficult. In the
global economy, financial uncertainty deepened in the Euro zone
and the foreign exchange rate switched to a higher yen. In Japan,
the Great East Japan Earthquake struck amid stagnant economic
conditions and in Thailand, Japanese-affiliated plants suffered
major damages in disastrous flooding.
The risks affecting corporate activities are expanding with shifts in
the g loba l economy and sudden changes in the na tu ra l
environment. It is significant that President Fujii mentions disaster
response first in the Top Message of this CSR Report. In the
recovery process following the flooding in Thailand, the strength
of the trust with the local employees was particularly impressive.
As also stated in this report, the idea that the company belongs to
the local employees is key. I think globalization means to think
globally and act locally. While this is a phrase used in the global
environmental movement, it also applies to companies advancing
abroad. I believe the Hitachi Metals Group’ s response to the flooding
in Thailand showed the good points of Japanese management.
The Top Message also touches on the draft ing of the BCP
(Business Continuity Plan). For conceivable situations, companies
consider the risk (probability) and make preparations during
normal times. Unforeseen circumstances, however, are typically
called crises (complete uncertainty with no known probability),
and when crises occur the determination of managers becomes
critical. It is important for companies to learn from these two
natural disasters and further evolve their crisis response using
confirms that the Hitachi Metals Group’s approach to globalization
has not been mistaken.
Yet we still have many issues that must be addressed including
the approach to the supply chain that has newly emerged with
globalization, relations with stakeholders, and local compliance. In
safety measures, the Hitachi Metals Group has a clear policy of
giving top priority to safety, and the entire Group is actively
working together in promoting safety efforts. The Hitachi Metals
Group will continue advancing CSR activities and responding to
the expectations of society.
Thank you very much for your valuable advice. Under the current
wave of globalization which is affecting all companies, the Hitachi
Metals Group has used the Code of Conduct for Hitachi Metals
Group Companies and the Good Practice Guidance for Hitachi
Metals Group Companies, which are based on our management
principles, as guideposts in aiming at management that responds
to changes in the global external environment. Last year while we
were responding to the unprecedented disaster of the Great East
Japan Earthquake, our local factory in Thailand was completely
flooded. As you pointed out, the swift reconstruct ion there
Professor
Faculty of Humanity and Environment, Hosei University Kozo Horiuchi
Hitachi Metals’ Answer Vice President, Representative Executive Officer and Director
Hitachi Metals, Ltd. Nobuhiko Shima
Corporate Data
Hitachi Metals Group Major Manufacturing Facilities (As of the end of March 2012)
Corporate Profile
High-Grade Metal Products and Materials High-Grade Functional Components and Equipment
Electronics and IT Devices
Establishment:
Capital:
Chief Executive
Officer:
Number of Employees:
Yasugi Works
2107-2 Yasugi-cho, Yasugi-shi, Shimane
692-8601, Japan
HMW, Ltd.
1-9-1 Kitahama, Wakamatsu-ku,
Kitakyushu-shi, Fukuoka 808-8558, Japan
Tottori Works
70-2 Nan-ei-cho, Tottori-shi, Tottori
689-1121, Japan
Kumagaya Works
(NEOMAX Company)
5200 Mikajiri, Kumagaya-shi, Saitama
360-8577, Japan
Yamazaki Manufacturing Center
2-15-17 Egawa, Shimamoto-cho,
Mishima-gun, Osaka 618-0013, Japan
Kyushu Works
35 Nagahama-cho, Kanda-machi,
Miyako-gun, Fukuoka 800-0393, Japan
Moka Works
13 Kinugaoka, Moka-shi, Tochigi 321-4367,
Japan
Kumagaya Works
(Automotive Components Company)
5200 Mikajiri, Kumagaya-shi, Saitama
360-8577, Japan
Kuwana Works
2 Daifuku, Kuwana-shi, Mie 511-8511,
Japan
Products and Businesses:
Group Companies:
Headquarters:
April 10, 1956
￥26.3 billion (As of the end of March 2012)
Hiroyuki Fujii
President, Chief Executive Officer and Director
Hitachi Metals Group: 18,056
(As of the end of March 2012)
Manufacture, sales, and service of high-grade metal
products and materials; electronics and IT devices;
high-grade functional components and equipment; and
services and other activities
59 subsidiaries, 9 affiliates
SEAVANS North Building, 2-1 Shibaura 1-chome,
Minato-ku, Tokyo 105-8614, Japan
Tel: +81-3-5765-4000
Fax: +81-3-5765-8311
Wakayama Works
1850 Minato, Wakayama-shi,
Wakayama 640-8404, Japan
Metglas Yasugi Works
1240-2 Hashima-cho, Yasugi-shi,
Shimane 692-8601, Japan
Consolidated Financial Highlights (Years ended March 31, 2012)
Net sales Operating income Net income Capital expenditures Research and development
Return on equity
Million yen %Million yen Million yen Million yen Million yen
201020092008 2011 2012 201020092008 2011 2012 201020092008 2011 2012 201020092008 2011 2012 201020092008 2011 2012 201020092008 2011 2012
For more detailed information, please refer to the following URL: http ://www.hitachi -metals.co. jp/e/corp /corp14.html
Printed with 100% vegetable oi l ink conta in ing no VOC (vo lat i le organic compounds).
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thinning. “Morino Chonai-Kai” (Forest Neighbor-
hood Association) — Supporting sound forest
management.
Please recycle when you are finished withthis report.
Printed in Japan
Catalog No. HM-45(E)-2012
Printed in Sep. 2012(H) HT3
