corporate social responsibility report 2011 · this report describes the corporate social...
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Corporate Social Responsibility Report
2011
Akihabara UDX, 4-14-1, Sotokanda, Chiyoda-ku, Tokyo 101-8971, JAPAN
TEL: +81-3-5256-5454 FAX: +81-3-5256-3240http: //www.hitachi-cable.com/
©Hitachi Cable, Ltd. 2011 All Rights Reserved.
1 | Hitachi Cable, Ltd. CSR Report 2011
Editorial Note
Purpose of Publication and Editorial NoteThis report describes the corporate social responsibility (CSR) activities of Hitachi Cable and the Hitachi Cable Group in order to provide our many stakeholders with the clearest and most accurate explanation possible of the Group's philosophy, plans and activities in progress. In preparing this report, we consulted the GRI Sustainability Reporting Guideline G3.1 by the Global Reporting Initiative (GRI) as well as questionnaire items on socially responsible investment (SRI) given in the Environmental Report Guideline (2007 Edition) by the Ministry of the Environment to select and provide informa-tion deemed significant for both our Stakeholders and the Hitachi Cable Group. In order to receive an objective outside evaluation, we had the GRI Secretariat confirm this report fully meets the application level “B” requirements as defined in the GRI Guidelines.
Period CoveredMainly Fiscal Year 2011 (from April 1, 2010 to March 31, 2011)(Some earlier and later activities are also included.)
Corporations and Production Bases CoveredIn relation to our environmental activities, this report cov-ers the production bases of Hitachi Cable and 14 domestic production companies in the Hitachi Cable Group. Furthermore, we have included some activities by 20 overseas manufacturing sites. Other descriptions in this document mainly refer to operations and activities by Hitachi Cable and include information of its Group companies.
●Hitachi Cable, Ltd. Densen Works, Hitaka Works, Takasago Works, Minato
Works, Toyoura Works and Tsuchiura Works●Group Companies at Hitachi Cable Sites Hitachi Cable Logi-Tech, Ltd., Hitachi Cable Fine Tech,
Ltd., Hitachi Cable MEC-Tech, Ltd., Hitachi Cable Networks, Ltd.,*1 Hitachi Magnet Wire Corp., Hitachi Wire & Rod Ltd., Hitachi Cable Precision Co., Ltd. (at Hitachi Works), Advanced Cable Systems Corp. and J-Power Systems Corp.*2
●Domestic Group Companies Hitachi Alloy, Ltd., Tonichi Kyosan Cable, Ltd., Tonichi
Kyosan Technos, Ltd., Tohoku Rubber Co., Ltd.,*3 Hitachi Cable Precision Co., Ltd. (at Yonezawa Works)*4 and Hitachi Cable Film Device, Ltd.*5
●Overseas Group Companies A*6
Hitachi Cable (Johor) Sdn. Bhd., Shanghai Hitachi Cable Co., Ltd., Hitachi Cable (Singapore) Pte. Ltd., PHCP, INC., Thai Hitachi Enamel Wire Co., Ltd. and the wire and cable plant of Hitachi Cable (Suzhou) Co., Ltd.
●Overseas Group Companies B*7
Hitachi Cable PS Techno (Malaysia) Sdn. Bhd., Hitachi Cable Vietnam Co., Ltd., AHCL (Thailand) Co., Ltd., Hitachi Cable Philippines, Inc., the assembly plant of Hitachi Cable (Suzhou) Co., Ltd., Giga Epitaxy Technology Corporation, Shenzhen Hitachi Cable Co., Ltd., Suzhou Hitachi Cable Precision Co., Ltd., Hitachi Cable Manchester Inc., Hitachi Cable Automotive Products USA, Inc., HC Queretaro, S.A. de C.V., Hitachi Cable UK, Ltd. and Hitachi Cable Austria GmbH
※1 Business activities within Hitachi Cable works only are covered.※2 Production activities within Hitachi Cable works only are covered.※3 Activities excepting environmental accounting are covered.※4 Activities for global warming prevention and resource recycling pro-
motion only are covered.※5 Based on an evaluation system for environmental measures,
Green21 Ver.3, VOC reduction and activities for environmental- conscious products are covered.
※6 Based on GREEN21 Ver.3, resources and energy consumed and disposal and CO2 emission into the environment are covered.
※7 The input of resources and energy, the output to the environment and CO2 emissions are covered.
Period of PublicationOctober, 2011 Scheduled publication of next issue: August 2012
GuidelinesCompliance: GRI Sustainability Reporting Guideline G3.1
by the Global Reporting Initiative (GRI)For a comparative table between this report and the Guideline, please refer to page 59 to 62.Reference: Environmental Repor t Guidel ine (2007
Edition) by the Ministry of the Environment
ContactHitachi Cable, Ltd.Corporate Social Responsibility OfficeTEL:03-6381-1050 FAX:03-5256-3240 http://www.hitachi-cable.co.jp/en/inquiry/index.html
DisclaimerThis report contains forward-looking statements and descriptions of plans, estimates and projections as well as facts about the Hitachi Cable Group in the past and at present. Such statements and descriptions reflect our current assumptions and expectations of the future events based on information available at present. Accordingly, they are inherently susceptible to uncertain-ties and changes in circumstances, and future perfor-mance and events may differ. This report has been translated into English from the Japanese version. In cases where the Japanese descrip-tion is dif ferent from the English description, the Japanese description shall take preference.* Empowering Energy & Communication is a registered trademark of Hitachi Cable, Ltd.
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Brief Overview of the Hitachi Cable Group ..............................................................................................................3Our Bsinesses ...................................................................................................................................5
A Message from the President .................................................................................................7Report on the Great East Japan Earthquake
Impact of the Disaster and the Hitachi Cable Group’s Responses ........................................9
Contents
CSR Management:CSR Management: ....................................................13CSR Medium-Term Targets / Plans and Results ................15Corporate Governance ................................................17Compliance .............................................................19Information Security ...................................................20
Social Performance:Engagement with Customers ........................................21Engagement with Suppliers ..........................................24Engagement with Shareholders and Investors ...................25Engagement with Employees ........................................27Engagement with Society and Local Communities .............31
Environmental Performance:Environmental Policies of the Hitachi Cable Group ...............35Environmental Management Status ................................36Environmental Accounting ...........................................40Environmental Action Plan and Results Evaluation .............41Input of Resources and Energy and Output to the Environment ..43Global Warming Prevention ..........................................44Promoting Recycling of Resources .................................48Chemical Management in Production Activities .................50Green Procurement ....................................................52Environmental-Conscious Products ................................53Site Data .................................................................55
GRI Application Level Check Statement
G3.1 Content Index ...........................................................................................................................................59
3 | Hitachi Cable, Ltd. CSR Report 2011
Brief Overview of the Hitachi Cable Group
Ever since the spin-off from Hitachi, Ltd. in 1956, Hitachi Cable, Ltd. has pursued “communication” technologies demanded by the age in the fi elds of “energy” and “infor-mation” as a wire and cable manufacturer to serve as a core business in the Hitachi Group. The company has expanded its business domains, including industrial infra-structure products; electronic and automotive products; information systems devices and materials; and metal materials and component products, offering such prod-ucts as wires and cables to support information trans-mission and power supply, a wide variety of materials and parts to transmit electric signals and heat in different equipment and various information and telecommunica-tion network devices. Hitachi Cable continues to develop a comprehensive range of products and services to transmit energy and information more quickly, safely and effi ciently and provide them to various fi elds of business-es in order to support customers throughout the world and contribute to society.
Corporate Profi le (As of March 31, 2011)
Trade Name Hitachi Cable, Ltd.
Established April 10, 1956
(Founded in 1918)
Head Office Location Akihabara UDX, 4-14-1,
Sotokanda, Chiyoda-ku,
Tokyo 101-8971, Japan
Capital ¥25,948 million
Number of Employees 4,058 (non-consolidated);
16,064 (consolidated)
Electronic & Automotive Products
234.5 (56%)
40.1
InformationSystems
(10%)
82.7
Metal Materials& ComponentProducts
(20%)
Semiconductor Materials & Packaging26.2 (6%)
Sales Companies35.8 (8%)
Total ¥419.3
billion
600
400
200
0
Net Sales(¥ billions)
FY2007 2008 2009 2010
325.1349.2
298.1241.7
544.2493.2
372.5
2011
258.7
419.3
566.0
Non-Consolidated Consolidated
Operating Income (Loss)(¥ billions)
Non-Consolidated Consolidated
12
6
9
3
0
R&D Expenses(¥ billions)
FY2007 2008 2009 2010
9.710.2 10.7
9.110.0
11.1
9.6
2011
8.7 9.0
10.5
Non-Consolidated Consolidated
Sales by Business Segment (Consolidated; Results in FY2011)
0
30
60
90
120
0
2000
4000
6000
30
10
20
0
–20
–10
FY2007 2008 2009 2010 2011
-200
-100
0
100
200
3009.5 11.1
(9.8)
23.0
(14.7)
(3.5)(6.4) (5.0)
0.8
23.1
Business Overview (Figures are rounded off to the nearest hundred million)
Profi le
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Europe
Japan
●Manufacturing Bases ■ Sales & Marketing Bases North and Central America
South-East Asia
China
United Kingdom ●Hitachi Cable UK, Ltd. ■Hitachi Cable Europe Ltd.Austria ●Hitachi Cable Austria GmbHUkraine ●Akutron LLC
Thailand ●AHCL (Thailand) Co., Ltd. ●Thai Hitachi Enamel Wire Co., Ltd. ■HCAS Thai Trading Co., Ltd.Singapore ●Hitachi Cable (Singapore) Pte. Ltd. ■Hitachi Cable Asia Pacific (HCAP) Pte. Ltd.Malaysia ●Hitachi Cable (Johor) Sdn. Bhd. ●Hitachi Cable PS Techno (Malaysia) Sdn. Bhd.The Philippines ●Hitachi Cable Philippines, Inc. ●PHCP, INC.Vietnam ●Hitachi Cable Vietnam Co., Ltd.
●Shanghai Hitachi Cable Co., Ltd. ●Hitachi Cable (Suzhou) Co., Ltd. ●Giga Epitaxy Technology Corporation ●Suzhou Hitachi Cable Precision Co., Ltd. ●Shenzhen Hitachi Cable Co., Ltd. ■Hitachi Cable (China) Trading Co., Ltd. ■Hitachi Cable Asia Ltd. ■Hitachi Cable Trading (Dalian F.T.Z.) Co., Ltd.
●Tonichi Kyosan Cable, Ltd.●Hitachi Alloy, Ltd.●Hitachi Wire & Rod Ltd.●Hitachi Cable Precision Co., Ltd.●Hitachi Cable Fine Tech, Ltd.●Hitachi Cable Logi-Tech, Ltd.●Hitachi Cable Networks, Ltd.●Hitachi Cable MEC-Tech, Ltd.●Hitachi Magnet Wire Corp.●Tohoku Rubber Co., Ltd.●Tonichi Kyosan Technos, Ltd.●Hitachi Cable Rubber Technology Co., Ltd.■Hitachi Densen Shoji, Ltd.■Hitachi Cable Trading Ltd.■Hokkai Hitachi Densen Kihan, Ltd.
United States ●Hitachi Cable Automotive Products USA, Inc ●Hitachi Cable Manchester Inc. ■Hitachi Cable America Inc.Mexico ●HC Queretaro, S.A. de C.V.MexM● ●HHC
MexiMHC
UK, LtdUK, Ltd.rope Ltprurope Ltd
Uurope Ltr europe Ltd
Japan 300.5 (72%)
Asia 90.2 (21%)
North America 21.3 (5%)
Europe and Others 7.2 (2%)
Total ¥419.3
billion
Japan 7,608 (47%)
North America 722 (4%)
Asia 7,159 (45%)
Europe and Others 575 (4%)
Total 16,064(Persons)
Net Income (Loss)(¥ billions)
Non-Consolidated Consolidated
16,000
12,000
8,000
4,000
0
Number of Employees(Persons)
2007 2008 2009 2010Non-Consolidated Consolidated (At Fiscal-Year End)
Sales by Region (Consolidated; Results in FY2011) Number of Employees by Region (Consolidated; Results in FY2011)
0
4000
8000
12000
16000
4,076 4,074 4,134 4,154
15,10016,230
15,335
2011
4,058
16,06415,917
15
5
10
0
–60 FY2007 2008 2009 2010
4.46.2
(9.2)
8.7
(9.1)
2011
(11.5) (13.0)
10.7
(53.8)(38.8)
-50
-25
0
25
50
(Note) FY2011: April 1, 2010 to March 31, 2011
Major Bases (As of March 31, 2011)
5 | Hitachi Cable, Ltd. CSR Report 2011
Our Businesses
Industrial Infrastructure Products
Electronic and Automotive Products
Outstanding technological prowess for building electric power and telecommunica-tions infrastructureAs one of Japan’s top electric wire makers, Hitachi Cable provides wires and cables that are used in diverse areas, from electric power facilities to general building con-struction and industrial applica-tions. With our advanced technologies and ample expertise accumulated since our founding, we provide optimal products for our customers.
* MLFC is a registered trademark of Hitachi Cable, Ltd. in Japan.
Responding to the latest needs for compact, high-performance and energy-effi cient productsWith its technological prowess and expertise gained through developing and manufacturing electric wires and cables, Hitachi Cable develops and supplies high-performance magnet wires, ultra-fi ne coaxial cables, harnesses and brake hoses. These specialty products contribute to the production of more compact electronics equipment and automotive electronics with higher performance and energy effi ciency.
Flexible cablesTrolley wires with abrasion detection line for bullet trains
Flame retardant polyfl ex insulated wire MLFC*
Cables for railway vehicles
Industrial Cables
Harnesses for use in hybrid vehicles Brake hoses
Micro coaxial cables
Enameled wire for high-effi ciency motors Magnet wires for wind power generators
Photovoltaic wires
Magnet Wires Electronic Wires and Wiring Devices
Handrails Rubber rollers
Probe cables for ultrasound diagnostic equipment
Automotive Components and Related Products
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Information Systems Devices and Materials
Metal Materials and Component Products
Solutions for optimal information telecommunications networkingHitachi Cable makes use of the world’s premier opto-electronic and high-frequency and wireless technologies to deliver solutions through products and technologies that represent the foundation of the Information Society, such as network equipment for telecommunications carriers and antenna systems for mobile phone base stations and terrestrial digital broadcasting. In addition, Hitachi Cable produces a complete range of products, from substrates to epitaxial wafers for optical and electrical devices as an expert in gallium arsenide compound semiconductors.
Varied, high-quality lineup of productsWe offer a metal material product lineup, including copper tubes, copper strips, lead frames and semiconductor TAB tapes, that specifically meets the needs of industry.
Ethernet* switch APRESIA** for private and public sectors
Mobile phone base station antennas
Compound semiconductors
Ethernet* switch APRESIA** for telecommunications carriers
Antennas for terrestrial digital broadcasting
Optical transceivers
Information Network Wireless Systems Optical Devices
Dual-gauge copper strips
Rolled copper foils
Copper Strips
Copper products for electric application
Superconducting wires
Copper Products for Electric Application and Related Products
Lead frames for semiconductors
Lead Frames
TAB tapes
TAB Related Products
Various heat-transfer tubes
Copper Tubes
Compound Semiconductors
* Ethernet is a registered trademark of Fuji Xerox Co., Ltd.
** APRESIA is a registered trademark of Hitachi Cable, Ltd.
7 | Hitachi Cable, Ltd. CSR Report 2011
First and foremost, on behalf of all Hitachi Cable Group members, I would like to extend our deepest sympathy to everyone affected by the Great East Japan Earthquake. At the same time, as we hope for the quickest recovery and restoration in the disaster region, we are reconfirming our commitment to contributing to recovery and restora-tion efforts through business and other activities. The disaster caused significant damage to the broad region of northeastern Japan. Certain of the Hitachi Cable Group’s production sites and sales bases were among those that suffered significant damage. At pres-ent, however, all of these sites and bases have returned to normal operation.
Maintaining a serious and consistent approach to corporate social responsibility, the Hitachi Cable Group is working toward the realization of a sustainable society.
A Message from the President
On the Road to Becoming a Truly Global Entity: Aiming for Resurgence and High Profitability
FY2011, ended March 31, 2011, was an important year for the Hitachi Cable Group, marking the first year of the Group’s new medium-term management plan, Plan “BRIDGE,” which extends through FY2013, ending March 31, 2013. However, we must admit that the Great East Japan Earthquake has put the brakes on the promotion of our new plan. In addition, market conditions surround-ing the Group’s operations have grown increasingly severe, with the European and U.S. economies decelerat-ing and the yen persistently appreciating. In such an envi-ronment, to continue striving for the realization of a sustainable society, the Hitachi Cable Group must achieve sustainable growth. To this end, during FY2011, in line with the basic policy under Plan “BRIDGE,”—namely, “Restoring [the Hitachi Cable Group’s] status as a highly profitable enterprise and reshaping itself into a truly global entity”—the entire Group has promoted the implementation of strategies and initiatives. Nevertheless, reflecting dynamic changes in operating conditions, Hitachi Cable reviewed and revised Plan “BRIDGE” and announced the launch of Renewed Plan “BRIDGE” in September 2011. Under the Renewed Plan “BRIDGE,” the Hitachi Cable Group will adhere to the basic policy of the original plan; however, the Group will also aggressively implement structural reforms aimed at building a powerful earnings base while promoting initia-tives aimed at further reducing fixed costs and strength-ening its product competitiveness. Furthermore, the Group will increase focus on profitability in its operations. In line with this profitability-focused approach, the Group will accelerate two original Plan “BRIDGE” strategies, namely, selectively allocating management resources to priority businesses and drastically reinforcing its overseas operations. As a company playing an integral role in the social infrastructure, the Hitachi Cable Group will bolster its infrastructure-related businesses—where it can lever-age its Groupwide strengths—and step up operations overseas, particularly in rapidly growing emerging coun-tries. In this way, we will strengthen our social contribu-tions through business activities.
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Practice the “Basics and Ethics” to Meet Stakeholder’s Expectations
Every corporation is a member of society. A commitment to promoting business activities in harmony with society and undertaking those activities in a sincere and honest manner must be at the core of any corporation that is endeavoring to contribute to the realization of a sustain-able society. Knowing this, Hitachi Cable conducted a comprehensive review of its Business Ethics Guidelines and newly established the Hitachi Cable Group Code of Conduct in January 2011, which clearly defines the action guidelines with which all Hitachi Cable Group executives and employees must comply. By effectively disseminating this new code throughout the Group, we will ensure that each Group member will act in line with the code and, consequently, enable the Group to fulfill its social respon-sibility by complying with laws and regulations, helping to protect the environment, ensuring safety, respecting human rights and ensuring sound information security. At the same time, the Hitachi Cable Group will contin-ue to enhance two-way, open communication with its stakeholders, including customers, shareholders, inves-tors, business partners and local communities. By dis-closing information in a timely and appropriate fashion, we will encourage the proper understanding of the Hitachi Cable Group among stakeholders. To establish trust-based relationships with its stakeholders, the Hitachi Cable Group will conduct transparent, sincere and hon-est corporate management. This Corporate Social Responsibility Report 2011 is a tool that is intended to facilitate communication between us and our stakeholders. So, we welcome your candid opinions on both the report as a whole and its content. Finally, as we endeavor to develop as a corporate group capable of making tangible contributions to the realization of a sustainable society, we ask you, our fellow stake-holders, for your unwavering support and understanding.
President and CEOHideaki Takahashi
Maintaining a serious and consistent approach to corporate social responsibility, the Hitachi Cable Group is working toward the realization of a sustainable society.
Helping to Secure a Sustainable Future for the Earth
Aiming to contribute to the sustainable future of the Earth, the Hitachi Cable Group consistently develops and pro-vides products and services that are eco-friendly. Moreover, the Group strives to reduce the environmental impact of its production activities while promoting initia-tives to help preserve the global environment. To reduce the environmental impact of its products, the Group promotes environment-friendly product design and has strengthened the management of chemical con-tent in its products through cooperation with its suppliers. Simultaneously, the Group continues to upgrade its pro-duction facilities and expand modal shifts in its logistics operations. Through initiatives aimed at reducing the CO2
emissions of its business activities, the Group aims to reduce its CO2 emissions by 12% in FY2015 compared with the FY1990 level. Another area closely related to global warming preven-tion is biodiversity, the protection of which is critical issue that the human race is facing in the course of realizing a sustainable environment. In March 2011, we revised the H i tach i Cab le Group’s Act ion Gu ide l ines fo r Environmental Conservation. The revised guidelines pro-vide a new clause stipulating that when undertaking busi-ness activities the Hitachi Cable Group must take environmental issues into consideration in order to pro-tect biodiversity. In accordance with these guidelines, all Hitachi Cable business sites and Group companies are tackling the protection of nature and biodiversity at their respective locations through, for example, participation in regional programs and activities.
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Report on the Great East Japan Earthquake Impact of the Disaster and the Hitachi Cable Group’s Responses
Again, we would like to express our deepest sympathy for everyone who has suffered due to the disas-ter and are hoping for the quickest recovery and restoration in the disaster region. On March 11, 2011, immediately after the earthquake, Hitachi Cable established an emergency task force, led by the presi-dent, at its Head Offi ce. Through the taskforce, the Company has implemented a number of recovery measures made possible by Groupwide cooperation.
The Great East Japan Earthquake caused significant damage to production facilities operated by the Hitachi Cable Group. In particular, Tohoku Rubber Co., Ltd., in the Minato area of Miyagino Ward, Sendai City, Miyagi Prefecture, and Hitachi Cable’s Minato Works, in Kuji-cho, Hitachi City, Ibaraki Prefecture, were affected by the tsunami. Specifi cally, the production facilities on these works’ first floors were completely flooded. Also, the earthquake caused damage to certain buildings and pro-duction facilities at fi ve of Hitachi Cable’s works as well as Group company works in Ibaraki Prefecture. Immediately after the earthquake, each works started implementing emergency measures. At works situated in regions where tsunami warnings were announced, the evacuation of employees was prioritized. At works in other regions, designated staff swiftly launched response measures, such as inspecting for leaks in storage tanks, treatment facilities and gas facilities and closing plumbing valves. After completing these measures, all personnel evacuated to safe places as aftershocks persisted. Investigations conducted after the tremors had mostly subsided confi rmed that our environmental facilities—namely, pipes connected to a hydrochloric acid tank and others serving a heavy oil tank—were damaged. We also confi rmed leaks of plasticizing agents and the displace-ment of a caustic soda tank. Luckily, we were able to confi ne such damage and leaks within the premises of
these works and, accordingly, avoid any accident that would place an environmental burden on the works’ sur-roundings. In addition to these incidents, we confi rmed that some equipment contaminated with polychlorobi-phenyl (PCB) that was being stored on the premises of certain works was carried by the tsunami to locations outside their perimeters. Hitachi Cable is currently reviewing and examining its response to and measures taken after the disaster. The Company will use the fi ndings from these reviews and examinations to improve its emergency response mea-sures and disaster drills.
Environmental Emergency Measures after the Great East Japan Earthquake
Recovering heavy oil leaking into a conduit within the Toyoura Works
Major Activities after Great East Japan Earthquake
Activities Lead by the Head Offi ce Conditions at Our Works(In Ibaraki Prefecture and the Tohoku Region)
March 11to 13
14:46 Magnitude 9.0 earthquake occurred in the Pacifi c coast of the Tohoku region
● Established an emergency task force at the Headquarters
● Started holding daily meetings through a teleconference system connecting the Head Offi ce and Data Center located in the Hitachi region, where our works are sited
● Started activities to confi rm the safety of employees and their families and the status of damage to our facilities
● Started the delivery of relief supplies, including water, food and other daily necessaries, from the Head Offi ce, branch offi ces and the Group companies to the Hitachi and Sendai regions
● Hitachi Cable’s Minato Works in Hitachi City, Ibaraki Prefecture, and Tohoku Rubbers’ Headquarters Plant reported on facility damage due to fl ooding caused by the tsunami
● The supply of electricity, city gas and water was cut off at the works in Ibaraki, Miyagi and other prefectures. Emergency measures were implemented at manufactur-ing lines and facilities at each works.
● Electricity supply to the Tsuchiura Works resumed on March 12
March 14to the End of March
● Confi rmed safety of all Group employees● Operated Hitachi Group commuter buses to support
disaster recovery (Akihabara, Tokyo ⇔ Ibaraki Prefecture)
● Donated ¥10 million as the Hitachi Cable Group to the Central Community Chest of Japan
● The supply of electricity, city gas and water to our works in the Hitachi region resumed gradually.
● Restoration activities at each works launched after elec-tricity supply resumed.
● Carpooling was promoted and charter buses were hired to counter the gasoline shortage.
● The Tsuchiura Works in Tsuchiura City and the Densen Works in Hitachi City returned to normal operations by the end of March.
● Other works, excluding the Minato Works and Tohoku Rubber Co., Ltd., returned to normal operations from the beginning of April
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A number of Hitachi Cable Group works and companies are located on the Pacific coast in a vast region spanning from Ibaraki Prefecture to the Tohoku region. The earth-quake and tsunami caused significant damage to build-ings and production facilities at each of these sites. At present, the Group’s major production sites affected by the disaster have achieved almost full recovery thanks to recovery measures promoted on a Groupwide scale.
■Sites That Suffered Minor Damage• Hitachi Cable, Ltd. Tsuchiura Works (Tsuchiura City, Ibaraki
Prefecture) • Hitachi Cable, Ltd. Densen Works (Hitachi City, Ibaraki
Prefecture)• Hitachi Cable Precision Co., Ltd. Miyako Office (Miyako City,
Iwate Prefecture)
■ Sites That Suffered Damage but Achieved Quick Recovery• Hitachi Cable, Ltd. Hitaka Works (Hitachi City, Ibaraki
Prefecture) • Hitachi Cable, Ltd. Toyoura Works (Hitachi City, Ibaraki
Prefecture) • Hitachi Cable, Ltd. Takasago Works (Hitachi City, Ibaraki
Prefecture) • Tonichi Kyosan Cable, Ltd. Ishioka Office (Ishioka City, Ibaraki
Prefecture)
■ Sites That Suffered Significant Damage Caused by Tsunami, Others
• Hitachi Cable, Ltd. Minato Works (Hitachi City, Ibaraki Prefecture)
• Tohoku Rubber Co., Ltd. Headquarters Plant (Sendai City, Miyagi Prefecture)
Recovery Measures at Production Sites
Recovery activities
The Hitachi Cable Group worked assiduously to establish a business continuity plan (BCP) in line with the Hitachi Group’s policy on and guidelines for BCP formulation. Our BCP is intended to minimize the impact of suspen-sions of operations due to large-scale earthquakes or other disasters or events that may disrupt the social infra-structure.
After the Great East Japan Earthquake, we swiftly implemented response measures in accordance with the basic action policy defined in our BCP. It is true, however, that certain shortcomings of our BCP were revealed in its implementation. Having learned some lessons in the aftermath of the disaster, we will use our new-found knowledge to enhance our BCP.
Our Business Continuity Plan
At the Industrial Infrastructure Products Group, we started production facility recovery activities by forming teams, each consisting of four to five employees, and these teams checked the status of damage to electrical and other facilities at Hitachi Cable Group works. When we were trying to conduct facility inspections, the elec-tricity supply was temporarily suspended. This meant that the only way to verify the integrity of the power dis-tribution lines was to conduct visual inspections. At our Hitaka Works alone, there are about 110 transformer facilities. So checking all these facilities took a lot of time and posed significant difficulties. The blackouts continued. So, we could carry out inspection and recovery activities only during the day. Moreover, we were short on gasoline, so we had to use bicycles to travel within the works. Despite these diffi-culties, all of us, as well as other Group employees, remained high-spirited, everyone sharing a passion for restoring the works as quickly as possible. A strong sense of mission united us. Thanks to this, we were able at a relatively early point to see that recovery was within reach despite the significant scale of damage. The experience of the disaster renewed our apprecia-tion of facility design that factors in the effects of earth-quakes and other unexpected events.
VOICE
Takuya Soma Machine Design Section,
Ken Sakayori Construction Section,
Hiroshi Shinozaki Manufacturing Section,
Toshimitsu Ohnishi Manufacturing Section,
Takahiro Shiozawa Manufacturing Section,
Production Engineering Department,Industrial Infrastructure Products Group(From left)
11 | Hitachi Cable, Ltd. CSR Report 2011
Participating in the nationwide effort to rein in peak power consumption during summer, and in line with the Japanese government’s energy saving plan, the Hitachi Cable Group is working toward a 15% cut in its own con-sumption in the regions served by Tokyo Electric Power Company (TEPCO) and Tohoku Electr ic Power Company. In addition, the Group is proactively promoting power saving initiatives in other regions. During the period from July to September 2011, as a Hitachi Group company each works and offi ce located in Ibaraki Prefecture implemented a holiday rotation system that optimized the work schedules of individual employ-ees. Through this system, we strove to level out our daily power consumption over the entire week. Also, we start-ed monitoring our power consumption more closely and began disclosing our power consumption status in-house. This monitoring and information dissemination helped strengthen power consumption management so that each site could keep its consumption level below an allowable level. We have promoted various other initiatives aimed at saving electricity. Implemented at all of our business sites in Japan, these initiatives included the reduced use of lighting systems, the optimization of air-conditioning sys-
tem settings, the partial suspension of elevator operation at the Head Offi ce and the early launch of the “Cool Biz” program, which allows employees to don lighter weight office wear. Moreover, Hitachi Cable has encouraged Group works and companies to grow plants to create “green curtains” for windows. Green curtains are effec-tive in preventing rises in room temperature. Green cur-tains have been created at more than 10 Group works and companies.
Saving Electricity in Summer
Our Disaster Relief Activities
Through the Central Community Chest of Japan, the Hitachi Cable Group donated ¥10 million for the victims of the disaster and for use in relief and recovery activities in the disaster region. For Group employees who were affected by the disaster, Hitachi Cable and its labor union cooperated to collect charitable donations from Group employees in Japan and overseas in addition to the relief
money system established by the Company. A total of ¥3.5 million was collected, and it was included in the special relief money provided to employees affected by the disaster. In the course of this endeavor, overseas Group companies offered assistance, sending us relief money and emergency supplies as well as thousand paper cranes.
Monetary Donations
The Head Office, branches and Group companies of Hitachi Cable contributed food stuffs and bottled water. In addition, Hitachi Cable contributed such essential goods as toilet paper and detergents. These relief sup-plies were delivered to the works and Group companies in disaster areas of Ibaraki Prefecture and Miyagi Prefecture. Also, the Kisai Plant of Hitachi Cable Group company Hitachi Alloy, Ltd. is located in Kazo City, Saitama Prefecture. Near this plant is a former site of Kisai High School, which has been designated as a refuge site for the residents of Futaba Town, Fukushima Prefecture. The Group delivered a four-ton-truck load of relief supplies to this refuge site, including toilet paper and detergents.
�Relief Supplies
Local governments and companies located in the disas-ter region suffered critical damage to their buildings and facil ities, making it dif f icult for them to function. Specifi cally, many could not make damage assessments regarding their backbone and other IT systems, systems that would have been helpful to have in promoting recov-
ery activities and carrying out operations. They could nei-ther repair these systems, nor were they able to secure the buildings required for these systems’ safe storage and stable operation. In response, Group company Hitachi Cable Networks, Ltd. launched a program to support recovery and resto-
Support through Business Activities
Relief supplies waiting for delivery
Growing bitter gourds to create “green curtains” and save electricity
Hitachi Cable, Ltd. CSR Report 2011 | 12
CS
R M
anagement
So
cial Perform
anceE
nvironmental P
erformance
Rep
ort on the Great E
ast Japan
Earthq
uarke
The entire city of Hitachi, Ibaraki Prefecture, was without water over two weeks after the earthquake. As Hitachi Cable’s Hitaka Works has its own well to supply drinking water within the site, it was able to provide water to local residents from morning through early evening, which it did for about a week starting from March 14 when the electricity supply to the site was restored and the electric pump could be operated.
One of the biggest issues since the disaster is what to do with mountains of rubble, debris and other waste. In Hitachi City alone, such waste is estimated to amount to several thousand tons. As an emergency measure, Hitachi Cable offered its Hitaka athletic field for use as a temporary site for waste collected from northern Hitaka City, assisting local municipalities in promoting recovery activities.
Support for Local Residents in the Disaster Region
Providing water to local residents at the gate of the Hitaka Works Hitaka athletic field used as a temporary waste collection site
ration activities in the disaster region. Through this pro-gram, Hitachi Cable Networks has provided analysis and repair services for damaged IT equipment and network systems while offering space for equipment and system storage within the Group’s data center in Hitachi City. These services were provided either free of charge or at special rates. Also, Hitachi Cable supported the energy-saving efforts of companies affected by electricity shortage in the Kanto and Tohoku regions. More specifically, Hitachi Cable made “SmartStream”*1—an energy-saving tech-nology nurtured by its production bases—partially avail-able to the public free of charge via its website. Based on control systems that use our proprietary programmable logic controller (PLC),*2 the SmartStream technology is expected to contribute to energy savings for cleanrooms, large shopping centers and data centers, all of which often use large-scale air-conditioning systems. Its provision of services for customers in the midst of emergency situations has earned Hitachi Cable high
praise. For example, Softbank Mobile Corp. requested that we perform inspections on and recovery work on their mobile phone network base stations. In recognition of our swift response and effective services, Softbank Mobile sent us a letter of appreciation. *1 SmartStream is a registered trademark of Hitachi Cable, Ltd. in
Japan.*2 PLC is a control device that uses micro computers exclusively for
sequence control.
Data center of the Hitachi Cable Group
The water supply program was carried out by the 37 members of the marathon and basketball teams at the Hitaka Works. As we have received kind support for our sporting activities from local community members, we were happy to be able to do something in return for them. The disaster reminded us of the importance of water. We were so touched by warm thanks and com-ments offered by local residents through blogs and twit-ter. We would not like to see disasters like this one occur ever again. Still, it provided an invaluable opportunity to reaffirm that we are members of the community.
VOICE
Keisuke Umetsu (Basketball Team)Production Planning Department, Industrial Infrastructure Products Group
Takumi Ohwada (Marathon Team)Electoronic Wires Department, Hitachi Cable Fine-Tech, Ltd.
Koji Ozaki (Basketball Team)Production Planning Department, Industrial Infrastructure Products Group(From left)
13 | Hitachi Cable, Ltd. CSR Report 2011
CSR Management
Ever since its foundation, Hitachi Cable has always aimed to widely contribute to society and we con-sider CSR to be a part of business activities.
Since April 2005, we established the Corporate Social Responsibility Office, and by coordinating individual activity results of our Group the level of all things are increasing. Furthermore, in order to promote recognition of CSR activities and raise awareness that daily opera-tions are directly related to CSR for all executive offi cers and employees of the Hitachi Cable Group, in FY2007,
we established the “Hitachi Cable Group CSR Policy” and distributed the “Brand/CSR Guidebook” to all execu-tive offi cers and employees. Also, in January 2011, aim-ing to guide the entire Group to practice the “Basics and Ethics,” we established the Hitachi Cable Group Code of Conduct, which stipulates action guidelines that all Group executives and employees must comply with.
Fundamental Credo
The basic credo of the Hitachi Cable Group is to further elevate Hitachi’s founding concepts of “harmo-
ny,” “sincerity” and “pioneering spirit,” to instill a resolute pride in being a member of Hitachi, and thereby
to contribute to society through the development of superior, original technology and products.
Deeply aware that a business enterprise is itself a member of society, Hitachi Cable Group is also
resolved to strive as a good citizen of the community towards the realization of a truly prosperous soci-
ety and, to this end, to conduct its corporate activities in a fair and open manner, promote harmony with
the natural environment, and engage vigorously in activities that contribute to social progress.
Hitachi Cable Group Corporate Vision
Empowering Energy & CommunicationContributing to society by continuing to improve the speed, accuracy
and effi ciency of energy and information
Value
Surpass Customers’ ExpectationsUnderstand and respond to customers’ true needs
Utilize group synergy to provide unsurpassed value
Transform the global market through innovative technologies and services
Continue to Progress in ManufacturingImprove manufacturing to provide faster, more accurate and effi cient communication
Facilitate personal growth and advancement
Practice the “Basics and Ethics”Conduct all operations honestly and in harmony with the global community
Protect and respect the environment
Respect individuals and allow them to reach their full potential
Basic Stance of CSR
Hitachi Cable, Ltd. CSR Report 2011 | 14
Rep
ort on the Great E
ast Japan
Earthq
uarkeC
SR
Managem
entS
ocial P
erformance
Environm
ental Perform
ance
Shareholders & investorsEmployees
●…Main manner and opportunity for communicating
Suppliers
CustomersSociety and local communities
1 Awareness of Corporate Activities as Social Responsibilities
All Hitachi Cable Group directors and employees shall remain aware of the fact that corporate social responsibili-ties (CSR) should be fulfilled through corporate activities. In accordance with this policy, Hitachi Cable Group will fulfill its social responsibilities to ensure the sustainable development of society and businesses
2 Social Contributions through Business Activities
Through business activities based on outstanding research, technologies, and product development, Hitachi Cable Group wil l provide safe and quality products and services to cus-tomers, while playing its part in build-ing an enriched and vibrant society.
3 Disclosure and CommunicationTo maintain and enhance relationships of trust with the Hitachi Cable Group’s diverse array of stakeholders, Hitachi
Cable Group will provide fair and high-l y t r anspa re n t d i sc l osu re wh i l e responding in a responsible manner to stakeholders through various forms of communication.
4 Corporate Ethics and Respect for Human Rights
In a global business environment with diverse cultures, morals, ethics, legal systems, and other attributes, Hitachi Cable Group will conduct fair and sin-cere business activities, while acting in accordance with respect for human rights and the highest ethical stan-dards.
5 Promotion of Environmental Preservation Activities
To realize a sustainable society in har-mony with the natural environment, Hitachi Cable Group will reduce the environmental impact of its activities and make effective use of finite natural resources.
6 Promotion of Community Support Activities
As a good corporate citizen, Hitachi Cable Group will vigorously promote community support activities to realize a better society.
7 Creation of Workplaces with Good Working Conditions
Hitachi Cable Group will endeavor to provide workplaces with good, worth-while conditions while energetically supporting motivated employees who can display indiv idual i ty and self-development on the job.
8 Common Awareness of Social Responsibilities with Business Partners
Hitachi Cable Group will request that business partners share a common awareness of social responsibilities to conduct fa i r and sound business activities.
Established in December 2006
Hitachi Cable Group CSR Policy
The business of the Hitachi Cable Group is materialized through engagement with stakeholders. The Hitachi Cable Group considers stakeholders strongly associated with its business activities as “customers,” “suppliers,”
“shareholders and investors,” “employees” and “society and local communities,” and develops its CSR activities by continuously responding to requests and expectations from those stakeholders.
●Daily sales activities● Inquiries to our website● Various explanatory meetings for distrib-
utors, etc.● Product exhibitions, etc.
● Daily procurement activities
● Guidance meetings for suppliers
● Quality and environ-mental auditing
● Supporting safety activities, etc.
● General shareholders meeting● Financial results explanatory meetings,
information meetings for investors● Publication of annual reports and
correspondence for shareholders● Information disclosure on corporate
website, etc.
● Various labor-management conferences● Publication of company in-house
journals● Establish management-by objective
and self-certification● Establish proposal for improvement● Guidance of various systems and
health/welfare benefits via the Intranet, etc.
● Compliance with laws● Factory tours for people in the community● Participation in local events● Volunteer activities by employees● Providing information to the media● Collaboration with NPOs, etc.
Engagement with Stakeholders
15 | Hitachi Cable, Ltd. CSR Report 2011
CSR Medium-Term Targets/Plans and Results
Based on the “Hitachi Cable Group CSR Policy,” we have established medium-term targets and chal-lenges that the entire Group works in harmony to fulfi ll.
★★★……Achieved ★★……Partially achieved ★……Insuffi cient
Hitachi Cable Group CSR Policy
Themes Medium-term targets/challenges FY2011 results Self assessment Reference page Plans for FY2012
1. Awareness of corporate activities as social responsibilities
Corporate governance
Continuous improvement of Group-wide corporate governance (internal control) system
● Provided guidance and improvement support to Group companies through internal control monitoring and internal audits
● Established priorities and improved effi ciency in management review through the enhancement of important control processes
● Promoted awareness-raising through seminars and study sessions
★★★P.17 〜 18
● Enforce commitment to priorities and enhance effi ciency in internal control monitoring● Promote activities to minimize risk exposure by expanding the scope of implementation of internal control monitoring at Group companies● Review and reinforce internal control assessment methods for equity-method affi liates● Strengthen education and awareness-raising programs for Hitachi Cable, Ltd. and its Group companies through the utilization of e-learning
and other meansCompliance with J-SOX Law
●Ensured the effectiveness of internal control over the Group’s fi nancial reporting ●Implemented awareness-raising activities including seminars and education programs
★★★
Information security
Strengthen and thorough pursuit of information security education and awareness-raising throughout the Group
● Renewed internal rules regarding the handling of confi dential information and expanded and instilled these rules among employees
● Conducted various awareness-raising activities at Hitachi Cable, Ltd. and its domestic Group companies during Information Security Month
● Provided information security education to employees of domestic and overseas Group companies● Conducted information security inspections at all domestic and overseas Group companies● Consolidated servers at a secure data center to minimize disaster risks
★★★ P.20
● Continue information security education and awareness-raising activities for employees● Review and enhance information security-related guidelines● Reinforce information security initiatives to prevent information leaks and other incidents● Strengthen software management rules and ensure the proper administration of these rules
Risk management
Strengthen risk management system ● Implemented initiatives in line with New Infl uenza Countermeasure Guidelines ★★★ P.19 ● Continue to implement initiatives in line with New Infl uenza Countermeasure Guidelines
Enhancement of control system through precise improvement of exports control examination
● Conducted audits at 12 domestic locations and 10 overseas locations, including sales offi ces, works and Group companies
● Provided education for 600 employees at 31 business sites through seminars conducted by external trainers and training sessions for locally hired staff in China and Southeast Asia
★★★ P.19 〜 20 ● Raise awareness and enhance the proper practice of export control through audits and education (audits and education scheduled to be conducted at 14 domestic business sites and 11 overseas business sites)
Education and awareness-raising
Awareness-raising of the signifi cance of CSR and the fact that CSR equals corporate activities
● Implemented CSR education through Companywide position-specifi c programs and new employee programs● Revised the Hitachi Cable Group Corporate Behavior Standards and the Business Ethics Guidelines,
disseminated details of the revisions● Identifi ed issues in connection with the expected launch of ISO26000 and raise employee awareness of this
new international standard
★★ P.13
●Continue implementing CSR education through Companywide position-specifi c programs and new employee programs ● Implement e-learning programs related to the Hitachi Cable Group Code of Conduct ● Identify Groupwide issues in connection with the expected launch of ISO26001 and raise employee awareness of this new international
standard
2. Social contributions through business activities
Quality control
Promotion of corporate-wide quality improvement activities
● Implemented the Quality First for 21st Century (QF21 III ) three-year Companywide quality improvement plan (second year)
● Conducted quality assurance education★★ P.21 〜 23 ● Continue to implement the QF21 III initiative (fi nal year)
● Continue to provide quality assurance education
Expansion and permeation of the Hitachi Cable Just-in-Time (JIT) Production System (deployment to domestic and overseas Group companies)
● Continued to promote the Hitachi Cable JIT Production System at all of our six domestic works● Continued to promote the system at domestic Group companies● Implemented business reforms to improve the fl ow of goods and information at two of our Group
companies in Southeast Asia
★★★ P.21、23
● Continue to promote the Hitachi Cable JIT Production System at all of our six domestic works● Continue to promote the above system at domestic Group companies● Continue to promote business reforms at two of our Group companies in Southeast Asia and expand the implementation of business reforms at
other Group companies in Southeast Asia and North America
3. Disclosure and communication
Information disclosure
Enhancement of justice, fairness and accuracy of information disclosure
● Formulated internal rules regarding insider trading and timely disclosure ★★★ P.25●Strengthen timely information disclosure for investors through improvements of documents and website
Continuous improvement of the content of information disclosed
● Acquired the GRI Application Level B for Corporate Social Responsibility Report 2010 ★★★
P.25 〜 26Continuous expansion of IR activities
● Conducted overseas IR road show● Provided business briefi ng meetings and factory tours in line with the launch of our new medium-term
management plan★★★ ● Hold an explanatory meeting regarding the revision of the Plan “BRIDGE” medium-term management plan
● Enhance proactive approach involving giving IR-related interviews and visiting institutional investors, conduction of overseas IR road show
4. Corporate ethics and respect of human rights
Compliance
Strengthening of compliance system, organization and activities
● Strengthened the administration and management of internal rules relating to compliance and made necessary revisions to these rules
● Conducted biannual audits of sales and other divisions, including at domestic Group companies★★★
P.19 〜 20
● Strengthen the practical administration of bribery prevention frameworks● Improve the level of management activities to ensure compliance with the Antimonopoly Law through internal audits and compliance seminars● Raise employee awareness of compliance through position-specifi c education, an e-learning program on the Hitachi Cable Group Code of
Conduct and various activities conducted during the Corporate Ethics Month● Continue to provide human rights education on a regular basis (aim to have all Group employees complete the course by the end of FY2013)
Steady implementation of internal audits
Promotion of compliance and human right education throughout Group companies
● Conducted two rounds of seminars for compliance offi ces at domestic Group companies● Provided position-specifi c education for all Group employees and conducted seminars at individual Group
companies★★★
Proper management of compliance reporting system ● Disseminated the newly formulated Hitachi Cable Group Code of Conduct throughout the Group ★★★5. Promotion of
environmental preservation activities
Environmental preservation
Refer to “Environmental Action Plan and Results Evaluation” P.41 ~ P.42
6. Promotion of community support activities
Coexistence with local communities
Strengthening of communication with local communities
● Promoted volunteer local cleanup activities with participation of Group employees● Helped an NPO promote “fl oating-heart planting activities” in Kasumigaura through employees participating as volunteers● Continued ecoCAP Movement in cooperation with an NPO● Made donations to environmental organizations through the in-house promotion of the use of “goo Green
Label” search engine ★★★ P.31 〜 34
● Continue to encourage Group employee participation in local cleanup activities● Continue to help an NPO promote “fl oating-heart planting activities” in Kasumigaura through employees participating as volunteers● Continue to assist local festivals through volunteer participation● Continue to support the ecoCAP Movement in cooperation with an NPO
● Hosted tours of works and sites for local elementary, junior high and senior high schools students ● Continue to accept works and site tours of local elementary, junior high and senior high school students
● Supported local sports events through our Marathon Team and Basketball Team (volunteer participation in International Blind Marathon Kasumigaura, provision of basketball technical training for elementary, junior high and senior high school students, etc.)
● Continue to support Marathon Team and Basketball Team in promoting local sports events
7. Creation of workplaces with good working conditions
Health and welfare
Continuous implementation of measures toward safe and comfortable workplaces
● Ratio of labor accidents accompanying lost workdays: 0.12 ★★ P.27 〜 30 ● Achieve the status of zero disasters accompanying lost workdays
Enhancement of mental healthcare measures● Accelerated the implementation of stress coping seminars● Provided counseling for employees showing signs of mental health problems and supported the return to
work of employees who have taken leave due to mental health problems★★ P.30
● Continue to implement stress-coping seminars● Continue to offer counseling to employees showing signs of mental health problems and assist in the return to work of employees who have
taken leave due to mental health problems
Work-life balance
Work-life balance through reviewing the manner of working
● Accelerated the implementation of the “Change the Way of Working” initiative aimed at improving working conditions for employees
● Formulated measures to support employees who use child-rearing and family care-giving leave in preparation for the launch of the 3rd Action Plan to Support the Development of Next Generations by the government
★★★ P.29 ● Reinforce systems to support employees who use child-rearing and family care-giving leave● Increase employees’ utilization of systems that enable various work styles through effective internal communication
Diversity
Promotion and establishment of the employment of challenged persons (achievement of legally required employment rate on a consolidated basis)
● Employment rate of challenged people: Consolidated: 1.98% (up 0.04 point from FY2010) Non-consolidated: 1.81% (down 0.07 point from FY2010)
★★★
P.28
● Promote the employment of the physically and mentally challenged (achieve the government-designated rate of employment on a consolidated basis)
Promotion of the recruitment of females and an expansion of their areas of reponsibility
● Employment rate of female new graduates: 4.3% (down 3.3 points from FY2010), expansion of the responsibility areas of recruited females
★★ ● Promote the employment of female workers and expand opportunities for them
Promotion of the employment of non- Japanese employees
●Number of non-Japanese employees: 32 persons (down 2 persons from FY2010)
★ ● Promote the employment of non-Japanese people
8. Common awareness of social responsibilities with business partners
Collaboration with suppliers
Sharing CSR awareness through collaboration with suppliers ● Prepared and published a checklist for environmental supplier certifi cation audits and supplementary materials in
Japanese, English and Chinese★★
P.24
● Start the full-scale administration of common environmental/CSR specifi cation sheets● Complete the migration to the AGree’Net system and provide education for suppliers through explanatory meetings● Review, and update as necessary, the Hitachi Cable Group Green Procurement Guidelines and publish the guidelines via the Company’s
website (Japanese, English and Chinese versions)Promotion of CSR procurement (required by environmental and social standards)
● Selected “AGree’Net” as the system to use for environmental management to comply with the REACH Regulation and for enabling information sharing within the Hitachi Group and promoted preparations for system migration
●Promoted Environment-Friendly Items Certifi cation System (Certifi ed: 19,905 items, up 4,482 from FY2010)★★★
Hitachi Cable, Ltd. CSR Report 2011 | 16
Rep
ort on the Great E
ast Japan
Earthq
uarkeC
SR
Managem
entS
ocial P
erformance
Environm
ental Perform
ance
★★★……Achieved ★★……Partially achieved ★……Insufficient
Hitachi Cable Group CSR Policy
Themes Medium-term targets/challenges FY2011 results Self assessment Reference page Plans for FY2012
1. Awareness of corporate activities as social responsibilities
Corporate governance
Continuous improvement of Group-wide corporate governance (internal control) system
● Provided guidance and improvement support to Group companies through internal control monitoring and internal audits
● Established priorities and improved efficiency in management review through the enhancement of important control processes
● Promoted awareness-raising through seminars and study sessions
★★★P.17 〜 18
● Enforce commitment to priorities and enhance efficiency in internal control monitoring● Promote activities to minimize risk exposure by expanding the scope of implementation of internal control monitoring at Group companies● Review and reinforce internal control assessment methods for equity-method affiliates● Strengthen education and awareness-raising programs for Hitachi Cable, Ltd. and its Group companies through the utilization of e-learning
and other meansCompliance with J-SOX Law
●Ensured the effectiveness of internal control over the Group’s financial reporting ●Implemented awareness-raising activities including seminars and education programs
★★★
Information security
Strengthen and thorough pursuit of information security education and awareness-raising throughout the Group
● Renewed internal rules regarding the handling of confidential information and expanded and instilled these rules among employees
● Conducted various awareness-raising activities at Hitachi Cable, Ltd. and its domestic Group companies during Information Security Month
● Provided information security education to employees of domestic and overseas Group companies● Conducted information security inspections at all domestic and overseas Group companies● Consolidated servers at a secure data center to minimize disaster risks
★★★ P.20
● Continue information security education and awareness-raising activities for employees● Review and enhance information security-related guidelines● Reinforce information security initiatives to prevent information leaks and other incidents● Strengthen software management rules and ensure the proper administration of these rules
Risk management
Strengthen risk management system ● Implemented initiatives in line with New Influenza Countermeasure Guidelines ★★★ P.19 ● Continue to implement initiatives in line with New Influenza Countermeasure Guidelines
Enhancement of control system through precise improvement of exports control examination
● Conducted audits at 12 domestic locations and 10 overseas locations, including sales offices, works and Group companies
● Provided education for 600 employees at 31 business sites through seminars conducted by external trainers and training sessions for locally hired staff in China and Southeast Asia
★★★ P.19 〜 20 ● Raise awareness and enhance the proper practice of export control through audits and education (audits and education scheduled to be conducted at 14 domestic business sites and 11 overseas business sites)
Education and awareness-raising
Awareness-raising of the significance of CSR and the fact that CSR equals corporate activities
● Implemented CSR education through Companywide position-specific programs and new employee programs● Revised the Hitachi Cable Group Corporate Behavior Standards and the Business Ethics Guidelines,
disseminated details of the revisions● Identified issues in connection with the expected launch of ISO26000 and raise employee awareness of this
new international standard
★★ P.13
●Continue implementing CSR education through Companywide position-specific programs and new employee programs ● Implement e-learning programs related to the Hitachi Cable Group Code of Conduct ● Identify Groupwide issues in connection with the expected launch of ISO26001 and raise employee awareness of this new international
standard
2. Social contributions through business activities
Quality control
Promotion of corporate-wide quality improvement activities
● Implemented the Quality First for 21st Century (QF21 III ) three-year Companywide quality improvement plan (second year)
● Conducted quality assurance education★★ P.21 〜 23 ● Continue to implement the QF21 III initiative (final year)
● Continue to provide quality assurance education
Expansion and permeation of the Hitachi Cable Just-in-Time (JIT) Production System (deployment to domestic and overseas Group companies)
● Continued to promote the Hitachi Cable JIT Production System at all of our six domestic works● Continued to promote the system at domestic Group companies● Implemented business reforms to improve the flow of goods and information at two of our Group
companies in Southeast Asia
★★★ P.21、23
● Continue to promote the Hitachi Cable JIT Production System at all of our six domestic works● Continue to promote the above system at domestic Group companies● Continue to promote business reforms at two of our Group companies in Southeast Asia and expand the implementation of business reforms at
other Group companies in Southeast Asia and North America
3. Disclosure and communication
Information disclosure
Enhancement of justice, fairness and accuracy of information disclosure
● Formulated internal rules regarding insider trading and timely disclosure ★★★ P.25●Strengthen timely information disclosure for investors through improvements of documents and website
Continuous improvement of the content of information disclosed
● Acquired the GRI Application Level B for Corporate Social Responsibility Report 2010 ★★★
P.25 〜 26Continuous expansion of IR activities
● Conducted overseas IR road show● Provided business briefing meetings and factory tours in line with the launch of our new medium-term
management plan★★★ ● Hold an explanatory meeting regarding the revision of the Plan “BRIDGE” medium-term management plan
● Enhance proactive approach involving giving IR-related interviews and visiting institutional investors, conduction of overseas IR road show
4. Corporate ethics and respect of human rights
Compliance
Strengthening of compliance system, organization and activities
● Strengthened the administration and management of internal rules relating to compliance and made necessary revisions to these rules
● Conducted biannual audits of sales and other divisions, including at domestic Group companies★★★
P.19 〜 20
● Strengthen the practical administration of bribery prevention frameworks● Improve the level of management activities to ensure compliance with the Antimonopoly Law through internal audits and compliance seminars● Raise employee awareness of compliance through position-specific education, an e-learning program on the Hitachi Cable Group Code of
Conduct and various activities conducted during the Corporate Ethics Month● Continue to provide human rights education on a regular basis (aim to have all Group employees complete the course by the end of FY2013)
Steady implementation of internal audits
Promotion of compliance and human right education throughout Group companies
● Conducted two rounds of seminars for compliance offices at domestic Group companies● Provided position-specific education for all Group employees and conducted seminars at individual Group
companies★★★
Proper management of compliance reporting system ● Disseminated the newly formulated Hitachi Cable Group Code of Conduct throughout the Group ★★★5. Promotion of
environmental preservation activities
Environmental preservation
Refer to “Environmental Action Plan and Results Evaluation” P.41 ~ P.42
6. Promotion of community support activities
Coexistence with local communities
Strengthening of communication with local communities
● Promoted volunteer local cleanup activities with participation of Group employees● Helped an NPO promote “floating-heart planting activities” in Kasumigaura through employees participating as volunteers● Continued ecoCAP Movement in cooperation with an NPO● Made donations to environmental organizations through the in-house promotion of the use of “goo Green
Label” search engine ★★★ P.31 〜 34
● Continue to encourage Group employee participation in local cleanup activities● Continue to help an NPO promote “floating-heart planting activities” in Kasumigaura through employees participating as volunteers● Continue to assist local festivals through volunteer participation● Continue to support the ecoCAP Movement in cooperation with an NPO
● Hosted tours of works and sites for local elementary, junior high and senior high schools students ● Continue to accept works and site tours of local elementary, junior high and senior high school students
● Supported local sports events through our Marathon Team and Basketball Team (volunteer participation in International Blind Marathon Kasumigaura, provision of basketball technical training for elementary, junior high and senior high school students, etc.)
● Continue to support Marathon Team and Basketball Team in promoting local sports events
7. Creation of workplaces with good working conditions
Health and welfare
Continuous implementation of measures toward safe and comfortable workplaces
● Ratio of labor accidents accompanying lost workdays: 0.12 ★★ P.27 〜 30 ● Achieve the status of zero disasters accompanying lost workdays
Enhancement of mental healthcare measures● Accelerated the implementation of stress coping seminars● Provided counseling for employees showing signs of mental health problems and supported the return to
work of employees who have taken leave due to mental health problems★★ P.30
● Continue to implement stress-coping seminars● Continue to offer counseling to employees showing signs of mental health problems and assist in the return to work of employees who have
taken leave due to mental health problems
Work-life balance
Work-life balance through reviewing the manner of working
● Accelerated the implementation of the “Change the Way of Working” initiative aimed at improving working conditions for employees
● Formulated measures to support employees who use child-rearing and family care-giving leave in preparation for the launch of the 3rd Action Plan to Support the Development of Next Generations by the government
★★★ P.29 ● Reinforce systems to support employees who use child-rearing and family care-giving leave● Increase employees’ utilization of systems that enable various work styles through effective internal communication
Diversity
Promotion and establishment of the employment of challenged persons (achievement of legally required employment rate on a consolidated basis)
● Employment rate of challenged people: Consolidated: 1.98% (up 0.04 point from FY2010) Non-consolidated: 1.81% (down 0.07 point from FY2010)
★★★
P.28
● Promote the employment of the physically and mentally challenged (achieve the government-designated rate of employment on a consolidated basis)
Promotion of the recruitment of females and an expansion of their areas of reponsibility
● Employment rate of female new graduates: 4.3% (down 3.3 points from FY2010), expansion of the responsibility areas of recruited females
★★ ● Promote the employment of female workers and expand opportunities for them
Promotion of the employment of non- Japanese employees
●Number of non-Japanese employees: 32 persons (down 2 persons from FY2010)
★ ● Promote the employment of non-Japanese people
8. Common awareness of social responsibilities with business partners
Collaboration with suppliers
Sharing CSR awareness through collaboration with suppliers ● Prepared and published a checklist for environmental supplier certification audits and supplementary materials in
Japanese, English and Chinese★★
P.24
● Start the full-scale administration of common environmental/CSR specification sheets● Complete the migration to the AGree’Net system and provide education for suppliers through explanatory meetings● Review, and update as necessary, the Hitachi Cable Group Green Procurement Guidelines and publish the guidelines via the Company’s
website (Japanese, English and Chinese versions)Promotion of CSR procurement (required by environmental and social standards)
● Selected “AGree’Net” as the system to use for environmental management to comply with the REACH Regulation and for enabling information sharing within the Hitachi Group and promoted preparations for system migration
●Promoted Environment-Friendly Items Certification System (Certified: 19,905 items, up 4,482 from FY2010)★★★
17 | Hitachi Cable, Ltd. CSR Report 2011
Corporate Governance
Hitachi Cable strictly adheres to laws and regulations as well as to the management policies of the Hitachi Group, thereby continuing to strengthen its corporate governance structure and conducting fair and transparent corporate Management.
Hitachi Cable considers achieving corporate governance on the basis of compliance with relevant laws, business ethics and CSR principles to be the foundation that allows the continuous development of business as one of the most important challenges of management. In order to speed up management decision making and enhance management transparency under the principles, the company has adopted the committee system, clearly separating executive and supervisory functions of man-agement. Based on an outline decided by the Board of Directors, the internal control system is constructed and operated as an organization “supervision.” As of March 31, 2011, Hitachi, Ltd. and its group com-panies (collectively, “the Hitachi Group”) hold 53.1% of
the total of Hitachi Cable shares with voting rights. In conducting its business, Hitachi Cable maintains inde-pendence from parent company Hitachi. At the same time, the Company’s operations do not heavily rely on transactions with the parent company. Moreover, Hitachi Cable has designated one of its outside directors as an “independent director,” defi ned under the securities list-ing regulations of the Tokyo Stock Exchange and the Osaka Securities Exchange on which its stock is listed. This independent director provides various opinions and advice regarding corporate management from a third-party standpoint, enabling the Company to ensure the objectivity of its Board of Directors’ decision-making pro-cesses and its independence from the parent company.
Basic Approach
Hitachi Cable designs and administers its internal control system in line with the basic internal control policies for-mulated by its Board of Directors, which is tasked with the supervision of the system. The Board of Directors devotes itself to decision making on such matters as basic man-
agement policies and supervisory functions, and it has broadly transferred executive authority for operations to executive offi cers. As part of the supervisory functions of the Board of Directors, three independent committees, each of which comprises of two outside directors and
Corporate Governance Structure
Supervisory Function Management and Operating Functions
General Meeting of Shareholders
Board of Directors
Nominating Committee Compensation Committee Audit Committee
ComplianceCommittee
Internal ControlCommittee
Internal AuditOffice
Corporate SocialResponsibility
Office
Risk ManagementCommittee
IndependentAuditors
Representative Executive Officers/Executive Officers
Executive Committee Business Strategy Committee Business Briefing Committee
Appoint
Appoint
Report
Report
Report
Appoint/Oversee
Instruct/Report Guide/Supervise
Corporate Governance Structure
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To share risk-related information about decision-making on risk management policies, responses to risks and recurrence prevention, Hitachi Cable has established a Risk Management Committee under the Executive Committee and headed by the President and Chief Executive Officer as its chairperson. The committee attempts to identify, assess, prevent and reduce risks. The Hitachi Cable Group provides wide-ranging prod-ucts and services in many markets throughout the world while utilizing an extensive portfolio of advanced technol-ogies to promote its business. Due to the nature of its business, the Company’s activities may be affected by
various factors. These factors include: (1) changes in demand and political and economic conditions in the markets where Hitachi Cable operates; (2) fluctuations in raw material prices and procurement conditions; (3) fluc-tuations in foreign exchange rates; (4) the implementation of business restructuring; (5) product-related accidents and quality problems; (6) new product development; (7) laws, regulations and official restrictions; (8) intellectual property rights; (9) information security; (10) large-scale disasters and pandemics; (11) retirement and severance benefit obligations; and (12) relationship with the parent company.
Risk Management
The committee determines compensation for members of the Board of Directors and executive officers. This is indi-vidually determined as per policies decided by the Compensation Committee. Compensation for directors is comprised of a monthly salary and year-end benefits, and no compensation as a director is paid to any director also serving as an executive officer. Compensation for execu-tive officers is comprised of a monthly salary and renunci-ation linked to performance. The renunciation linked to performance is determined by the status of medium-term
plans, budgets and other target achievements, depend-ing on the distribution ratio of consolidated results, the performance of a division each executive officer assumes responsibility for and personal achievements specified by position. The total amount of annual compensation for directors, excluding outside directors, for the fiscal year ended March 2011 was 105 million yen. Compensation for out-side directors and executive officers totaled 26 million yen and 492 million yen, respectively.
Directors and Executive Officers Compensation System
To further strengthen the Company’s internal audit and internal control functions, the Internal Audit Office (8 dedi-cated staff members and 37 staff members serving con-current positions) has been established. The Internal Audit Office strategically implements internal audits and promotes internal control to ensure the legality and appropriateness of operations by individual departments and sections of Hitachi Cable and its consolidated sub-sidiaries. Furthermore, the Compliance Office (3 dedicated staff members and 11 staff members serving concurrent posi-tions) provides education for and conducts audits of indi-vidual departments and sections of Hitachi Cable and its consolidated subsidiaries, thereby ensuring that the Company’s activities conform to laws, regulations and business ethics. The Audit Committee monitors and veri-fies the status of these audits while having directors and
executive officers report their execution of business oper-ations as appropriate. In this way, the Audit Committee is overseeing the Company’s management overall. The Company also has an Internal Control Committee that determines policies, plans, operations and proce-dures of its internal control system. In addition, the Internal Control Committee reviews and approves results of the assessment of the effectiveness of the Company’s internal control system. As such, Hitachi Cable has orga-nized a structure to ensure the appropriateness and reli-ability of its financial reporting. Meanwhile, the independent auditors report to the Audit Committee and exchange opinions with Audit Committee members and with the general manager of the Internal Audit Office who also attend Audit Committee meetings. This structure enables Hitachi Cable to pro-mote partnership in its auditing operations.
Audit Function, Internal Control System
one Hitachi Cable director, have been established to con-tribute to the fulfillment of the audit responsibilities of the Board of Directors: the Nominating Committee, the Audit Committee, and the Compensation Committee. Basically, the Audit Commit tee meets monthly, whi le the Nominat ing Commit tee and the Compensation Committee meet whenever necessary. There are eight members on the Board of Directors, including three out-side directors. The Chairman of the Board who chairs meetings of the Board of Directors does not serve as an executive officer. Also, to assist executive officers in making decisions and managing operations, Hitachi Cable has established the Executive Committee, the Business Strategy Committee and Business Briefing Committee. The Executive Committee and the Business Strategy
Committee together serve as an advisory body support-ing executive officers’ decision making. The Executive Committee provides advice to executive officers exclud-ing those on the Business Strategy Committee) making decisions related to operations that the Board of Directors has delegated authority to executive officers. Moreover, the Executive Committee serves as a hub for information sharing among executive of f icers, disseminating Companywide policies and data on business execution status. The Business Strategy Committee functions as an advisory body supporting each business unit in making decisions regarding management strategies, business plans and other important matters. The Business Briefing Committee compiles business performance reports, identifies issues and implements and manages measures addressing these issues.
19 | Hitachi Cable, Ltd. CSR Report 2011
To supplement its corporate purifi cation, Hitachi Cable established the Disclosure Compliance Reporting System in October 2003. If not only employees of Hitachi Cable or its Group companies but also suppliers and other external parties concerned once become aware of any illegal or inappropriate action, he or she can directly report to our Compliance Offi ce. These are then summa-rized and publicly released. Also, in 2009, the Company reinforced the Disclosure Compliance Reporting System in order to facilitate the acceptance of anonymous reports regarding illegal or inappropriate action under the Antimonopoly Law. In order to ensure that the Disclosure Compliance Reporting System is fully functional, we will take steps to ensure public awareness of our use of this system.
Hitachi Cable considers the essence of export regulations lies in compliance of export regulation related laws and reg-ulations in direct and indirect export projects, protection from illegal acts by business partners and compliance with CSR requirements in terms of international security. We
founded the Corporate Export Regulation Offi ce directed by the Vice President and Executive Offi cers to strengthen our export regulation system by promoting the guidance of establishment and improvement, auditing, education and awareness-raising activities of the system by our Company
Compliance
The Hitachi Cable Group espouses “Keeping to the Straight and Narrow” as part of its code of conduct to be complied with by all management and employees and makes it clear that compliance is the pre-requisite of business activities.
■ Internal Company Contact■ Mailing address Compliance Offi ce, Hitachi Cable, Ltd. Akihabara UDX,
4-14-1 Sotokanda, Chiyoda-ku, Tokyo 101-8971, Japan
■ E-mail address [email protected]
We strictly manage and control any personal information received at the time of notifi cation in accordance with the “Hitachi Cable Personal Information Protection Policies” and do not use the infor-mation for any purpose other than investigations of the notifi ed matter and its reporting.
Contacts of the Disclosure Compliance Reporting System
Export Regulations
Hitachi Cable has established the Compliance Offi ce in charge of promoting compliance activities. In addition, the Compliance Committee holds regular meetings to deliberate and make decisions on basic policies regard-ing compliance with laws, regulations and business eth-ics as well as on matters relating to compliance education and audits. The Compliance Offi ce then works to educate Hitachi Cable employees on compliance-
related issues, conducts necessary audits, and provides appropriate guidance to parties involved. In addition, the Compliance Office proactively collaborates with the Internal Audit Offi ce and the Legal Department to enable the Company to promote business in such a way that demands of society presented to it can be effectively met.
Compliance Promotion Structure
The Company takes every opportunity to host as many as more than a dozen compliance education courses including corporate-wide function-wise education, man-agement education for Group Companies and Anti Monopoly Act education mainly for Sales. Furthermore, as material to supplement educational opportunities, the Company published Japanese, English and Chinese ver-sions of “Framework Handbook for Business Ethics”—summarizing the Group’s basic principles, Corporate Vision and Code of Conduct—so that the awareness of compliance should be promoted as wide as possible in the Group including overseas Group Companies, distrib-uting it to employees of all Group companies. In FY2011, we hosted a total of eight corporate-wide,
function-specifi c compliance and human rights educa-tion courses and a total of two manager education pro-grams for Group companies. During audits of sales departments (including those of domestic Group compa-nies), we conducted compliance training for managers, with a total of 288 employees participating. As part of ini-tiatives undertaken during Corporate Ethics Month, held in October of each year, Hitachi Cable conducted training workshops divided into two sessions for the compliance secretariats of each Group company in order to increase their abilities. In addition, we held fi ve compliance work-shops at the request of individual Group companies. Through this and other measures, we are working to raise awareness of compliance Groupwide.
Compliance Education
Disclosure Compliance Reporting System
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Information Security Management System
Promotion
organizationM
anagement
organization
Responsible persons forinformation security(Each General Manager)
(President of each Group company)
Information systemadministrator
(Head of Corporate IT Center)
Responsible person forpersonal information control(Manager of Legal Department)
[Chairman] CIO[Committee members] Representative of Corporate Sales & Marketing Management Group / Corporate Advanced Technology Group / Legal Group / Corporate IT Center / Procurement Center / Business Support Group
Information SecurityCommittee
Information assetsadministrator
(Head of each department)
Information Security & Promotion Organization
Information Security
In order to prevent the leakage or unauthorized use of any information, including not only documents and electronic data, but also know-how owned personally by employees, the Hitachi Cable Group takes a comprehensive range of measures, including hardware and software countermeasures, improvement of control rules and education of individual employees, making thorough efforts to establish and main-tain the information security control system.
and domestic and overseas Group companies. With the aim of expanding business education opportu-nities, Hitachi Cable conducted seminars in FY2011 on parameters for external purchases primarily for equipment and machinery. At the same time, training opportunities were provided for a total of 600 employees in 31 locations,
including courses for national staff from China and Southeast Asia held at the Head Offi ce. Looking ahead, Hitachi Cable will work to thoroughly raise-awareness of such necessary information as revisions to laws and regula-tions while improving related initiatives to reliably and effec-tively regulate exports.
Our Group sets forth various regulations and rules regard-ing information security and personal information protec-tion, including “Information Security Basic Policies” and “Hitachi Cable Personal Information Protection Policies” and ensures that every employee is familiar with them. In promoting the information security management sys-tem, the Information Security Committee has been estab-
lished since FY2005. The committee has been engaged in such activities as the establishment of rules and sys-tems to properly manage internal and external important information, including personal and confi dential customer information, in addition to the provision of educational tools.
Information Security Education and Awareness-Raising Activities
Hitachi Cable focuses its efforts on a wide range of edu-cational and awareness-raising activities, including infor-mation security education through e-learning for the employees of Hitachi Cable and its domestic and over-seas Group companies. In order to further enhance information security awareness among all Group employees, the Company has designated February as “Information Security Month”
since FY2009 and conducts education and awareness-raising activities about in-house rules related to informa-tion security and reviews of information management conditions. Also, in FY2011, Hitachi Cable provided employees of domestic and overseas Group companies with an edu-cational program related to the proper management of confi dential information.
Information Security Measures
In order to reduce the risk of information leakage, the Hitachi Cable Group has implemented various informa-tion security measures, focusing on the three aspects of computer systems and networks, human resources and physical environments. In FY2011, Hitachi Cable updated its management rules concerning the handling of confi dential information, and these rules have been disseminated and enforced throughout the Group. In particular, Hitachi Cable works to more appropriately manage confi dential information received from Group customers and suppliers. To this end, we are promoting the concept of “visualization,” which involves the verifi cation of information contained in records and the administrative conditions pertaining thereto. At the same time, we have minimized information leakage risk by maintaining strict approval procedures regarding the physical management and disclosure of
information. Hitachi Cable is also working to avoid disas-ter and other risks by accelerating the integration of serv-ers at its secure data centers.
21 | Hitachi Cable, Ltd. CSR Report 2011
Engagement with Customers
In order to deliver high-quality products to customers, we emphasize product development from the viewpoint of customers and optimize production, quality assurance and other systems.
Quality Assurance
Our Approach to Quality Assurance
Hitachi Cable introduced the Hitachi Cable JIT Production System in FY2007. This system is based on the Toyota Motor Corporation Production System and aims for a thorough elimination of waste. From the stand-point of total optimization, every process from marketing, design to procurement, manufacturing and shipment is reviewed to establish a production framework to produce “what is needed to be produced to the amount needed when it is needed.” The Hitachi Cable JIT Production System is to ensure a rearing of talent in view of total optimization take root in the company. Under the con-cept that the evolution of “manufacturing” means “devel-opment of human resources,” Hitachi Cable keeps on advancing. Currently, the Hitachi Cable JIT Production System has been introduced at all six works, expanding the cov-erage to all departments and sections. The system is
now being deployed at domestic Group companies. In FY2011, Hitachi Cable started implementing the system at some of its overseas Group companies and plans to expand the scope of overseas implementation in FY2012.
Production-Process and Human-Resource Development with the “Hitachi Cable Just-in-Time (JIT) Production System”
Hitachi Cable JIT Production System
meet the needs of customers while delivering products with shorter lead times and to improve product quality without sacrifi cing productivity. We must balance the achievement of these objectives. To improve the productivity of cable manufacturing operations, we perform a set amount of production work within a specifi ed time frame. To improve our lead times, however, the time allowed and thus the amount of produc-tion work expected must be reduced. This approach has its setbacks: it can become diffi cult to sustain production effi -ciency, which, in turn, may cause a deterioration in profi t-ability. To address this problem, we have strengthened teamwork and achieved improvements in our production facilities, thereby effectively preventing malfunctions in our production processes. In this way, we have solved the problem. Efforts made at the production frontlines have paid off. We have shortened our lead times for general-purpose cable production by more than 40% compared with FY2010. The ongoing improvement of lead times and prod-uct quality remain our constant goals.
VOICE Promoting Activities to Promote the Hitachi Cable JIT Production System
Ryosuke KudoInsulated Wire & Cable Production Section,Production Department,Industrial Systems Production Division,Electronic & Automotive Products Group
I am involved with facility and quality management in the entire manufacturing process for industrial cables. Since FY2007, we have been promoting the Hitachi Cable JIT Production System, which has two objectives: to fl exibly
Presentation on activities to promote the Hitachi Cable JIT Production System
Basic Principle of Quality Assurance
Aiming for “quality fi rst” and “customer fi rst” based on Hitachi’s Ochibo Seishin (spirit of Ochibo),*1 we offer highly reliable products with secured product safety (including software, etc.) to satisfy customers, and thereby contrib-ute to the development of society.
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The Quality Assurance Departments of each business group and Group company are engaged in quality assur-ance operations of products they are responsible for, mak-ing efforts for quality improvement. In addition, from a corporate-wide perspective, the Quality Assurance Center supports on a departmental basis, the Group and Divisions through promoting corporate-wide quality assurance activities and implementing quality education in order to make sure quality-related activities go smoothly. As a company-wide organization on quality, we have established a Quality First Committee and Companywide Quality Assurance Conference. These
committee activities enable those concerned including, Officers to share information on quality situations and to promote continuous improvement by discussing chal-lenges and directions for improvement.
Quality Assurance System
Based on its “Basic Principle of Quality Assurance,” Hitachi Cable promotes initiatives to improve quality and customer satisfaction within the entire Group. In order to realize this Basic Principle, we establish a yearly corpo-rate-wide quality policy, set concrete targets and address quality assurance activities.
Furthermore, to improve quality and operational efficien-cy and to increase customer satisfaction, the Hitachi Cable Group has established quality management systems appropriate for individual operations while aggressively supporting the achievement of ISO9001 or ISO/TS16949 at both domestic and international production bases.*2
*1 Ochibo Seishin: Hitachi Group’s tradition of “acting on the basis of conscience and humanity.” Our efforts to eliminate product defects and accidents are based on this spirit.
*2 Group companies manufacturing products for vehicles have achieved ISO/TS16949 certification.
Acquisition of ISO Quality Management System Certifications(As of March 31, 2011)
Hitachi Cable
Name of WorksMonth and year
of ISO9001acquisition
Authorizingagency
Densen Works 1995.10 LRQA
Hitaka Works※ 1994.2 LRQA
Tsuchiura Works 1998.12 LRQA
※ Including Takasago Works,
Toyoura Works and Minato Works
Domestic Group Companies
Name of WorksMonth and year
of ISO9001acquisition
Authorizingagency
Tonichi KyosanCable, Ltd.
1996.1 LRQA
Hitachi Alloy, Ltd. 2004.3 LRQA
Hitachi Wire &Rod Ltd. 2003.8 LRQA
Hitachi CablePrecision Co., Ltd. 2002.7 LRQA
Hitachi Cable FineTech, Ltd. 1994.2 LRQA
Hitachi CableLogi-Tech, Ltd. ※ LRQA
Hitachi CableNetworks, Ltd. 2004.3 LRQA
Hitachi Cable MEC-Tech, Ltd. 1998.10 LRQA
Hitachi MagnetWire Corp. 2002.9 LRQA
Tohoku RubberCo., Ltd. 2001.11 LRQA
Hitachi Cable Rubber Technology Co., Ltd.
2009.12 JQA
※ This facility and the works of Hitachi Cable simultaneously acquired certification.
Overseas Group Companies
Company nameMonth and year
of ISO9001acquisition
Authorizingagency
Month and yearof ISO/TS16949
(automobiles acquisition)
Authorizingagency Remarks
Shanghai Hitachi CableCo., Ltd. 2002.3 SAC 2008.1 SGS
Hitachi Cable(Suzhou) Co.,
Ltd.
Cable Works 2007.8 2004.5
AssemblyWorks
2004.5 UL
Hitachi Cable (Johor) Sdn. Bhd.
PLO502000.5 LRQA 2006.7 LRQA
PLO50
Giga Epitaxy Technology Corporation 2003.1 AFAQ-EAQA
Hitachi Cable Automotive
Products USA, Inc.
Main Plant — — 2007.2Eagle
Registrations
Florida Plant — — 2008.12 SGS
AHCL (Thailand) Co., Ltd. 2006.2 URS 2006.2 URS
Hitachi Cable (Singapore) Pte. Ltd. 2002.11 LRQA 2005.6 LRQA
Suzhou Hitachi Cable PrecisionCo., Ltd.
2006.7 LRQA 2008.1 LRQA
Thai Hitachi Enamel Wire Co., Ltd. 2003.5 SGS 2007.3 SGS
Hitachi Cable Philippines, Inc. 2003.12 AJA
Hitachi Cable Manchester Inc. 2003.8 UL
HC Queretaro, S.A. de C.V. 2006.11 SGS 2006.11 SGS
PHCP, INC. 1998.5 SGS 2005.1 SGS
Shenzhen Hitachi CableCo., Ltd. 2008.8 UL
Hitachi Cable Austria GmbH 2006.6 TÜV
Hitachi Cable UK, Ltd. 2003.1 BSI 2010.6 BSI
Hitachi Cable PS Techno (Malaysia) Sdn. Bhd. 2002.10 BVQI 2009.3 BVQI
President & CEO
Quality First Committee
Company-wideQuality Assurance Conference
BusinessHeadquarters
Group Companies
Quality AssuranceDepartment
Quality AssuranceCenter
Quality AssuranceDepartment
[Chairman] Executive responsible for quality assurance[Committee members] Executives
[Chairman] General Manager of the Quality Assurance Center[Committee member] Manager of Quality Assurance Department
Quality Assurance System
23 | Hitachi Cable, Ltd. CSR Report 2011
Aiming for a further improvement in quality, Hitachi Cable has launched a “Quality First for 21st Century Phase III” (QF21 III ) initiative, which extends from FY2010 to FY2012. FY2011 marked the second year of this initiative. Quality improvement activities under the QF21 III initia-tive are promoted with a focus on addressing the follow-ing five issues, and each business group and division
implements them by running a Plan-Do-Check-Act (PDCA) cycle: planning, tr ia l, fol low-up and review by the Committee, including executives, and implementation.
Quality Improvement Activities
①Strengthen quality-related CSR In order to promote business operations in an orderly
manner, we carry out investigations on and thorough awareness raising of technical laws and regulations applied to our products as well as the establishment of compliance mechanisms for individual operational pro-cesses.
②Quality improvement of procured and subcontract-ed goods
In order to strengthen supply chain management, including the globalization of the procurement of parts, components and materials, we are working to consis-tently improve our quality control system for procured and subcontracted goods, and are promoting activities to improve the skills of control engineers.
③Global quality improvement Aiming for the “same quality throughout the world,” we
promote quality improvement activities working together with overseas Group companies.
④ Improvement of quality indicators To meet customer’s expectations of quality and to firmly
establish a business foundation, we quantify quality for improvement.
⑤Human resource development We regularly hold quality control and quality control
technical courses in order to improve skills by function. Furthermore, in consideration of frequent issues of cor-porate ethics in recent years, we host ethical education for engineers through manager training and e-learning courses in order to promote an understanding of the importance of compliance and to prevent issues in actual business.
Logo mark of quality improvement movement
International Convention
Ever since their introduction as the core of Total Quality Control (TQC) in 1968, small group activities have driven quality improvements at each business group and Group company. In recent years, the scope of these activities has been expanded to cover “quality, cost and delivery” (QCD) improvement. With the expanded scope, small group activities have become an important initiative that underpins Hitachi Cable’s business foundation. Today, with the aim of further reinforcing its produc-tion processes and human resources, Hitachi Cable has strengthened the link between these activities and the Hitachi Cable JIT Production System and, at the same time, integrated bottom-up activities with top-down activ-ities. In order to encourage the development of individual small group activities, the Company holds a “Domestic Convention,” where small groups from business divisions and Group companies give presentations on the exam-ples and results of their activities. We also hold a Groupwide “International Convention” both in Japan and at overseas locations, including at overseas Group
companies. Also, in July 2010, the Company established a Small Group Activity Promotion Office with the aim of more effectively linking the Hitachi Cable JIT Production System with quality improvement activities and facilitating small group activities on a worldwide basis.
Small Group Activities
If any quality issue occurs, it is communicated to depart-ments and sections concerned through predefined rules and routes. If a major product accident takes place, it is promptly reported to top management to take quick action, placing priority on customers. Countermeasures for any product accident are pursued on the basis of two aspects, direct cause of the accident and the motivation-al reason of the background to prevent a recurrence. In addition, from May to June every year, an “Ochibo
Hiroi” meeting*3 inherent to the Hitachi Group is held at each Business Group and domestic Group company, and under the guidance of top management, those directly involved in accidents and those concerned learn lessons from the mistakes and contribute them to future operations.
*3 “Ochibo Hiroi” meeting is an activity to review product accidents from the viewpoint of customers, reflect on them and prevent their recurrence.
Tackling Quality Issues
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The Hitachi Cable Group operates in diverse fi elds and manufactures and sells a wide range of products for various industries and businesses. In order to conduct manufacturing that complies with various social respon-sibilities, including environmental conservation, it is essential for Hitachi Cable to share CSR awareness with its partners who jointly promote business. Hitachi Cable has created a “Procurement” section on its website, widely disclosing its procurement policies and other related information. During FY2011, with the
aim of strengthening the environmental management of its suppliers, the Company published a checklist for use when conducting regular plant inspections. Based on this checklist, we were able to provide instruction to sup-pliers in the course of actual audits and also held internal seminars to enhance the capabilities of internal auditors. Furthermore, we continued to conduct investigations of our partners with regard to the status of their measures to prevent information leaks.
Sharing CSR Awareness with Suppliers
Engagement with Suppliers
Through the establishment of guidelines and the holding of explanatory meetings, the Hitachi Cable Group shares information with suppliers, thereby jointly promoting CSR activities.
Under the basic principles of fairness, justice and equal opportunities, Hitachi Cable selects partners based on a total judgment in accordance with the Hitachi Cable Group’s purchasing standards, regardless of the country and scale. In procurement, we attempt to share a sense of social responsibility with partners, such as compliance with relevant laws and regulations and a consideration of the global environment, and aim to establish relationships to widely contribute to society through mutual business as good partners. As a forum to share the basic policies on purchasing and to enable purchasing staff to refl ect on their own
purchasing activities, we also hold a Hitachi Cable Group Materials Meeting both in Japan and abroad on a regular basis. Fur thermore, the Company holds regular Groupwide training courses on compliance with relevant laws and regulations and ethics on materials associated with procurement activities, implementing continuous education. During FY2011, we provided an e-learning course for a total of 446 employees of related depart-ments. The course focused on understanding the Act against Delay in Payment of Subcontract Proceeds, Etc., to Subcontractors.
Approach to and System for Procurement
In order to comply with RoHS Directive and other chemi-cal substance regulations, the Hitachi Cable Group has established rules for eco-fr iendly manufactur ing ( Env i ronmenta l CSR-Compl iant Manufactur ing Standards), reviewing corporate-wide manufacturing from a CSR viewpoint. The Group continues initiatives toward reducing its environmental burden throughout the lifecycle of its products, from design to disposal. In FY2007, the Group established the Hitachi Cable Group Green Procurement Guidelines, distributed copies to partners, solicited cooperation for the surveying and auditing of chemical substances contained in products, and continuously implemented green procurement. (For details of green procurement, see Page 52.) Also, in FY2009, we started an environmental supplier certifi ca-tion system. Based on this system, we have compiled supplier information in the Environmental Supplier
Certifi cation Database and have begun using this data-base in our operations. At the same time, the Company is promoting the registration and certifi cation of the envi-ronmental quality of items procured. In FY2011, we shift-ed our focus from chemical substance management in line with the RoHS Directive, which emphasizes the man-agement of substances used in electrical and electronic devices and equipment, to one more in line with the European REACH Regulation, which covers products in all industries. To promote the shift, Hitachi Cable has decided to discontinue the use of its proprietary system and introduce the “AGree’Net” system, a system com-mon to all Hitachi Group companies for managing the chemical content of their products. The Company is cur-rently accelerating preparations to complete the system’s introduction during FY2012.
Promotion of “Green” Procurement
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Engagement with Shareholders and Investors
In order to meet the trust and expectations of shareholders and investors and allow them to deepen their understanding of the Company, Hitachi Cable is working to strengthen communication with them through various media and events.
Composition of Shareholders(As of March 31, 2011)
Financialinstitutionsand securitiescompanies17%
Other domestic corporations
54%
Overseas investors8%
Individuals, etc.
19%
Own shares
3%
Hitachi Cable maintains strict adherence to fair and transparent activities. In line with this principle, the Company promotes corporate management and busi-ness operations by respecting trust-based relationships with customers, shareholders and investors, society, and other stakeholders. More specifi cally, in disclosing important information relating to Hitachi Cable and its Group companies, in
addition to the above principle, we closely adhere to the policy of valuing speed and timeliness, we observe relat-ed laws and regulations and the guidelines and internal rules of fi nancial instrument exchanges, and we work to comprehensively understand and manage the informa-tion to be disclosed and ensure that such content is appropriate and accurate.
Principle of Disclosure
As of March 31, 2011, the number of shares issued and outstanding was 374,018,174 shares, held by a total of 22,970 shareholders. These shareholders consisted of domestic fi nancial institutions (about 17%), individual investors (about 19%), overseas investors (about 8%) and domestic corporations, including Hitachi, Ltd., (about 54%) plus the company’s own shares (about 3%).
Shares and Shareholders Information
Taking such factors as performance status, the strength-ening of our business structure and future business strat-egies into consideration, we properly distribute the profi t we make through business to shareholders. With regard to paying dividends based on surplus profi t, we value stability in terms of the amount and fre-quency of dividend payments, while giving due consider-ation to our business performance. We effectively use
internal reserves to invest in promising operations and to vitalize existing businesses while maintaining a sound f inancial standing and working to strengthen it. Furthermore, regarding the repurchase of shares as an effective measure to distribute profi t to shareholders, we undertake share buybacks as appropriate, taking into account share price trends and fi nancial conditions. The annual dividend for FY2011 was 2.50 yen per share.
Basic Policy on Profi t Sharing
For securities analysts and institutional investors, we host a results briefing on the day of account settlement announcement every quarter as well as meetings to explain management policies and business details when appropriate. For people who cannot attend said briefi ngs and meetings, we provide meeting minutes and other related materials online. In addition, for analysts and
investors, we respond to individual inquiries, hold various other types of meetings and offer factory tours. In September 2010, Hitachi Cable conducted an IR road show overseas. Through the road show, the Company’s management visited investors in the United States and explained directly to them the Company’s management policies.
Communication with Shareholders and Investors
Hosting IR Events
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We send Hitachi Cable News—a brief business report—to shareholders at the end of the second quarter and at the end of the fi scal year to inform them of our perfor-mance and provide a business overview for each period in an easy-to-understand manner. As a means of disclos-ing information to shareholders and investors in a prompt and fair manner, we make full use of the Internet. To pro-vide individual investors with information equivalent to that offered to institutional investors, the latest IR infor-mation—including news releases, fi nancial results, mate-rials used in various explanatory meetings and details of Q&A sessions in explanatory meetings—is available on our IR website. We have also established a dedicated website for individual investors and are constantly endeavoring to strengthen the content of the website. Moreover, we offer a service that sends registered users e-mail* notices of any updates made to our website. For overseas investors, we issue annual reports and distribute information in English via the Internet, including
news releases and summaries of explanatory meetings on business and fi nancial results. Through these and other activities, we have established a structure to deliver our corporate information in the most appropriate man-ner to overseas shareholders and investors. *Only available in Japanese.
Providing Shareholders and Investors with Information
Explanatory meeting on fi nancial results
●Companies with Excellent Disclosure Selected by Securities Analysts
In the 2010 Awards for Excellence in Corporate Disclosure, organized by the Corporate Disclosure Study Group of the Securities Analysts Association of Japan, Hitachi Cable ranked third in the Iron & Steel/Non-Ferrous Metal category (the top in the cable industry). Marking the third consecutive year of top-ranking, Hitachi Cable was recognized as a company continuing to practice high-standard corporate disclo-sure. Specifi cally, the Company received high praise for the enhancement of IR functions, the strong expla-nations and elucidating materials it uses at its results briefi ng sessions and for its acceptance of interviews to promote better understanding of the content of these materials, as well as for other efforts it makes to continuously enhance its disclosure activities.
●2010 All Listed Company Website RankingIn the Fiscal 2010 Listed Company Website Quality Ranking, announced on November 29, 2010 by Nikko Investor Relations Co., Ltd., Hitachi Cable was ranked 68th among all companies listed in Japan, total ing 3,682. In the Non-Ferrous Metal cate-go r y, the Company received the top ranking for the third consecutive year.
●Excellent Company Award in Internet Investor Relations
On December 15, 2010, Hitachi Cable was presented an Award of Excellence in the 2010 Internet IR Awards, announced by Daiwa Investor Relations Co.,
Ltd.
●General Ranking of IR WebsitesHitachi Cable was selected as one of the 127 Excellent Companies in the General Ranking of IR Websites in March 2010, announced by Gomez Consulting Co., Ltd. on April 14, 2010. The Company was also selected as one of the 123 Excellent Companies in the General Ranking of IR Websites, announced by Gomez Consulting on April 21, 2011, marking the fourth consecutive year of winning this honor.
External Appraisal in Relation to IR
In order to realize fair and prompt information disclosure, Hitachi Cable continuously makes efforts to improve IR activities, including the utilization of its website. In FY2011, we received the following evaluations from external organizations in relation to our attitude toward IR activities and conditions of information disclosure.
優良企業賞
2010
R
Internet IR
優良企業賞
2010
R
Internet IR優良企業賞
2010
R
Internet IR
27 | Hitachi Cable, Ltd. CSR Report 2011
Engagement with Employees
Hitachi Cable is striving to develop its human resources through a fair personnel system and various measures, while promoting a work-life balance and other initiatives to provide an employee-friendly work environment.
In the Hitachi Cable Group Code of Conduct, Hitachi Cable declares that it respects the personalities and human rights of its individual employees and will never commit any dis-crimination or unjustifi ed acts. Under the basic stance of “not allowing any kind of harassment to occur” and “taking the appropriate measures, including awareness-raising activities and education, in order to prevent various types of harassment from taking place,” the Group encourages the prevention of harassment. To be precise, contact per-sons are assigned at individual offi ces and workplaces to provide consultation, and awareness-raising activities are
conducted as appropriate, taking advantage of the Intranet, in-house magazines and other measures. Furthermore, Hitachi Cable is providing position-spe-cifi c and other types of education programs on a variety of human rights-related subjects, such as Dowa issues, discrimination based on ethnicity, disabilities and gender, and gender harassment. Through these programs, the Company is disseminating accurate information and pro-moting proper understanding of these subjects among its employees, while encouraging appropriate approach-es to these subjects.
Respecting Human Rights
To enable employees to promote the enhancement of their ability and skills and to encourage autonomy, Hitachi Cable has continued to update its human affairs systems. The management-by-objectives system was introduced to managerial employees and above in 1995 and has been improved every year by, for example, expanding the cover-age to all employees on a major career path. In FY2009, Hitachi Cable stipulated the roles and requirements expected of l ine managers in Role Defi nitions, updated the management-by-objectives sys-tem based on this, and restructured and simplifi ed the system to agree with the original goal of management by objectives of “human resources development” and
“assessment.” The Role Defi nitions were prepared on the basis of interviews with about 70 managerial employees, including executives, as well as medium-term manage-ment plans and other management policies. The goal here is to facilitate workplace management more suitable for accomplishing business strategies by enabling individual line managers to set targets and manage their implemen-tation based on their defi ned roles. By integrating Role Defi nitions and the management-by-objectives system and running its PDCA cycle every year, Hitachi Cable commits itself to “developing indepen-dent human resources” and “establishing reasonable assessment systems.”
Human Affairs Systems and Human Resources Development
Improving Management-by-Objectives System and Formulating Role Defi nition
In FY2009, we started a “business-specifi c on-the-job training” course for new college and university graduates with the aim of helping them understand our basic approach to manufacturing as well as the fl ow of opera-tions and supply chains while strengthening their aware-ness of the signif icant responsibi l i ty inherent in manufacturing operations. During FY2011, the Company partially revised the rules governing this training course. Specifi cally, previously, the determination of the business departments to which new employees were to be posted in order to gain on-the-job training was decided by the workplace to which they were originally assigned. However, from FY2011, the Company is enforcing a new rule for selecting which business departments should accept new employees for training, such as R&D and production technology departments for new employees in technological fields and production planning and
accounting departments for new employees in adminis-trative fi elds. Also, we have extended the training period from six months to a full year. The revised rules help maintain the basic objectives of this training course. They have been implemented to allow new employees in technological fi elds to acquire knowledge about fundamental technologies related to the products they will be responsible for. Similarly, new employees in administrative fi elds are required to gain knowledge about plant management and business prof-itability. Based on this training course, Hitachi Cable aims to bolster its infrastructure for employee education and training. In this way, we will nurture our employees so that they can develop their areas of expertise, their ability to take a multilateral approach and their capability to contribute to the sound growth of the global community.
Business-Specifi c On-the-Job Training
Ever since its commencement in 1978, this training sys-tem has enabled employees to gain overseas operational experience. The goal of the system is to help participants master the practical command of a foreign language and to attain operational expertise in the international com-munity at local language schools, universities or profes-
sional schools while attaining experience at our overseas Group companies. There are one-year and short-term (3 to 6 months) courses available, greatly contributing to the development of human resources with global business capabilities among young to middle-rank employees.
Overseas Operations Training
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Promoting Diversity in Human Resources
Hitachi Cable promotes diversity management to inte-grate the ability and value of diverse human resources into one to invigorate the entire organization, regardless of personal attributes (gender, age, nationality and physi-cal/mental challenges.)
Promotion of Employment for the Physically and Mentally Challenged
Hitachi Cable, on a non-consolidated basis, has suc-ceeded in offering jobs for people with disabilities at a higher proportion than the 1.8% set by the government. The ratio in FY2011 was 1.81%, and the ratio on a con-solidated basis stood at 1.98%. We continue to make efforts to expand the range of job functions available for the physically and mentally challenged, improve working environments and secure more employment opportuni-ties for them.
Expanding Opportunities for Female Workers
Currently, the ratio of females having managerial roles at Hitachi Cable is rather low when compared with other Hitachi Group companies and major global companies, and we are somewhat behind in terms of the active roles that females play within the Company. For this reason, we set a target of promoting the employment of females taking a major career path so that the ratio reaches 20% among all the newly employed candidates planning to take a major career path. Thus, within the last ten years, the number of females planning to take a major career path has increased fivefold. We continue to enthusiastically employ female employees on a major career path and promote the education and development of female candidates for managerial posts. In becoming a company that can fully offer opportuni-ties for women to exert their abilities and skills, it is essential to improve the work process and environment. This includes changing work attitudes among male employees, enhancing various systems to support a work-life balance and diverse ways of working, and pro-moting understanding of this initiative throughout the Company. Hitachi Cable will continue to take a wide range of initiatives so that employees can work with vigor, regardless of race, religion, age, or gender.
2007 2008 2009 2010 2011
2.0
1.5
1.0
0.5
0
Ratio of Employees with Disabilities(%)
(At Fiscal-Year End)Non-Consolidated
1.651.83 1.83
1.86 1.92
1.86 1.81
1.98
FY2007 2008 2009 2010 2011
20
15
10
5
0
Ratio of Females Hired as New Employees (Non-Consolidated)(%)
15.817.4
16.0
7.6
4.3
2007 2008 2009 2010 2011
375
300
225
150
75
0
Employees Aged 60 Years or Over (Non-Consolidated) and Numbers of Foreign Employees (Non-Consolidated)
(Persons)
(At Fiscal-Year End)
Number of employees aged 60 years or over Number of foreign employees
Number of employees aged 60 years or over Number of foreign employees
(Persons)
50
40
30
20
10
0
Consolidated
(Mandatory proportion of jobs for people with disabilities: 1.8%)
87114
146
180
301
2629
33 3432
devices and in LEDs and other optical devices. In recent years, the field of wireless communication devices has been rapidly growing in the United States and, therefore, constitutes a very attractive market for Hitachi Cable. While I was there, I would discuss and formulate strate-gies prior to business negotiations. These strategies included considerations for cultural differences between Japan and the United States and for ways to effectively communicate Hitachi Cable products’ advantages. It was both demanding and rewarding. Also, in the U.S. busi-ness world, personal connections are really important, and I was able to establish strong relationships with cer-tain customers. I was truly lucky to have experienced that. Staying and working in the United States provided so many new learning experiences. One year in San Jose felt really short and it passed so quickly. Still, over-seas operations training offers an invaluable opportunity to understand what things are like in overseas locations. For the Company to grow into a truly global corporate group, it would be good for many Hitachi Cable employ-ees to take advantage of this program and gain experi-ence in overseas business operations.
VOICE Comment by Overseas Operations
Training Participant
Junichiro Takeda Microwave Device Wafer Section, Engineering Department, Compound Semiconductor Products Division, Information Systems Devices and Materials Group
In June 2010, three years after I joined Hitachi Cable, I was sent to San Jose, California, as part of my over-seas operations training. I worked there for about one year. In San Jose, I was responsible for supporting U.S. customers of our compound semiconductors. At the same time, I often participated in scientific conferences while studying English and various business subjects. The compound semiconductor wafers that our divi-sion handles are mainly used in wireless communication
Initiatives to Promote Diversity
29 | Hitachi Cable, Ltd. CSR Report 2011
Safety Management
Work-Life Balance
Health and Safety
We endeavor to maintain high levels of health and safety standards and further improve them under the basic principle of “Protecting the health and safety of employ-ees comes before all else.” In the area of safety management, we have estab-lished an employee health and safety management sys-tem and, accordingly, promoted related activities in a voluntary and systematic manner. To raise safety aware-ness in all workplaces, we are conducting risk assess-ment with the participation of all employees, facilitating communication through morning assembly and meetings and implementing regular safety inspection by manageri-al staff. In addition, we are strengthening safety education and training and the provision of safety-related information. For example, we are providing safety training through
In order to enable employees to choose the ideal way to work in accordance with personal values and family condi-tions, a wide variety of alternatives are available. For child-birth, nursing and child rearing, and family care-giving, employees can take advantage of the temporary leave sys-tem, short-time work system, and childbirth leave system. Hitachi Cable has also established a system to reemploy workers who left the Company for child rearing and nurs-ing. The Company has also introduced a “volunteer vaca-
tion system.” Under this system, employees may take leaves and participate in volunteer activities by taking advantage of the discretionary work and flextime systems and their paid holidays. Through this and other systems, we have established flexible working conditions. In addi-tion, in FY2010 and FY2011, Hitachi Cable implemented a “Change the Way of Working” initiative aimed at facilitating the realization of the optimal work-life balance for individual employees.
25
20
10
5
15
0
Childcare Leave System Use Results* (Non-Consolidated) (Persons)
FY2007
11
2007
16
2009
21
2010
13
2011
15
* The number of persons who started to use the system in the relevant year
children, too. My children’s happy faces and good health are such a great improvement compared with what it was like seven year ago. I think it is because I can spend more time with them. So, I am thinking now that these and other systems work better for children and others who need care. I hope that everyone who plans to have babies will use these systems appropriately and try to balance their work life and child nursing and rearing with confidence.
Comment by Ms. Sasaki’s Supervisor Tsuneo MidorikawaElectric Components Production Section
From a colleague’s perspective, it is really beneficial for us to have somebody who knows their way around the office come back after she has had children. After all, people who are experienced can be relied on with confidence. We consider our colleagues and their families as our own fami-lies. Childbirth and child nursing and rearing leave systems help us create a workplace that values family ties. In that sense, these systems hold significant meaning for us.
VOICE Comment by Nursing/Child Rearing
Leave System Applicant
Chie Sasaki Electric Components Production Section,Electric Components Department,Automotive Components Division,Electronic & Automotive Products Group
I am involved in the manufacture of auto-motive components. I had my second baby four years ago, and with this birth I was able to take advantage of childbirth leave and nursing and child rearing leave. After my time away, I returned to work and have used the short-time work system. It was really helpful that I could temporarily leave work and come back to a workplace I am so comfortable in. Seven years ago when I had my first baby I had to return to work full-time right after my childbirth leave was expired. It was extremely dif-ficult to balance my work life with child nursing and rearing. This time, I was able to use both the child nursing and rearing leave and short-time work system. This, of course, is a great help. But it isn’t just for me, it is having a positive effect on my
0.0
0.5
1.0
1.5
2.0
* Rate=
Casualty Figure of labor accidents
Total working hours× 1,000,000
2.0
1.5
0.5
1.0
0
Labor accident rates*
(%)
2006 2007 2008 2009 2010
All industries rates
Manufacturing industry rate
Cable industry rateHitachi Cable(Non-Consolidated)
1.901.83
1.751.62 1.61
1.021.09 1.12
0.99 0.98
0.26
0.29
0.63
0.43
0.13
0.19
0.00
0.19 0.18
0.12
Short Time Working System Use Results* (Non-Consolidated)
FY 2007 2008 2009 2010 2011
Persons 9 3 0 10 3
Childbirth Leave System Use Results* (Non-Consolidated)
FY 2007 2008 2009 2010 2011
Persons 8 24 25 24 33
* The number of persons who started to use the system in the relevant year
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At Hitachi Cable, all employees, except managerial staff, belong to a labor union. To promote communication between employees and management, refine corporate management, improve business development and enhance working conditions for employees, Central Management Committee meetings between representa-tives from the Head Office and Labor Union Headquarters and Works Management Committee meetings between representatives from each business site and Labor Union branch office are held twice a year. In addition, when establishing, amending or abolishing
various systems related to labor conditions, Hitachi Cable and the Labor Union establish task forces for discus-sions, making efforts to maintain and strengthen sound and favorable labor-management relations. During FY2011, the Company and the Labor Union focused their discussions particularly on the future devel-opment of personnel systems, placing emphasis on such subjects as “salary levels linked to work responsibility,” “diversity” and the “creation of employee-friendly work-places.”
Sound Labor-Management Relations
In order to make the lives of employees and their families more affluent and stable, Hitachi Cable offers a compre-hensive range of measures to support them. From 2003, as one of the employee benefits and welfare initiatives to support self-help efforts and the independence of employees, the Company has implemented the “Cafeteria Plan System” (selective benefit and welfare system). This system offers options to meet the different
lifestyles and needs of individual employees such as “ability and skill development,” “child rearing,” “nursing” and “health building,” in addition to such conventional benefits as dormitories for single employees and compa-ny-run houses and provision of medical services for employees. Within a range of points that each employee has earned (“Cafeteria Points”), he or she can choose the type of support wanted when necessary.
Employee Benefits and Welfare
In this day of declining birthrates and an aging popula-tion, and as lifestyles in old age become more diversified, having a definitive life plan is becoming more and more important. Hitachi Cable provides information to serve as the basis for life planning after retirement (retirement ben-
efits, company pension, welfare pension, health insur-ance, employment insurance, etc.) and hosts Life Plan Seminars as an opportunity to think about one’s current work style and one’s lifestyle after retirement.
Life Plan Support
Hitachi Cable sets December as “Disaster prevention awareness month” to raise anti-disaster awareness and to improve the disaster prevention management system. In September, we run drills to prepare for a major earth-quake at our works. Also, we continue to provide various kinds of traffic safety activities for employees. These include traffic lectures, inviting law enforcement officials as speakers, providing education for new car owners who commute to work and training sessions using driv-
ing safety demo cars (touring vehicles equipped with safe-driving educational facilities). All works of the Hitachi Cable Group have established an internal firefighting team that regularly takes part in firefighting drills to prepare for unexpected fires. In addi-tion, both domestic and overseas Group companies con-duct a comprehensive range of activities to raise employee awareness of disaster prevention.
Countermeasures against Disasters
To protect the health of employees, Hitachi Cable works to control employees’ hours of service, while providing opportunities to take regular health checkups and com-plete medical checkups as well as health guidance based on the results of these checkups. Meanwhile, we urge health insurance unions to introduce such mecha-nisms as reference services to specialist doctors and telephone health consultation. Through these mecha-nisms, we have built an environment where employees can work with a sense of safety and security. In recent years, mental healthcare for employees has become a critical issue for Hitachi Cable. In order to enable the prevention, or early detection, of mental health
problems in employees, we are striving to enhance work-place communication and mental health education. In particular, Stress Coping Seminars are frequently held to counsel individual employees on ways of reducing stress so that they can work happily and productively. We are encouraging young and middle-aged employees to take the seminars. Also, in order to help employees solve a wide variety of mental health-related troubles through consultation, we collaborate with medical institutions within the Hitachi Group. Furthermore, the Company has established a program to assist employees who took long-term leaves due to mental health-related problems in returning to work and preventing a recurrence.
Health Management and Mental Healthcare
disaster identification drills and video learning. We are also implementing safety education programs designed for inexperienced workers using materials based on past disasters and incidents, while offering employees safety-related information through the weekly Safety News
magazine and the health and safety Intranet website. Furthermore, with the aim of improving the level of safety management on a Groupwide scale, we are pro-moting information-sharing throughout the Hitachi Cable Group, while coordinating Groupwide safety activities.
31 | Hitachi Cable, Ltd. CSR Report 2011
Located in Ibaraki Prefecture, Hitachi Cable’s Tsuchiura Works has long promoted a green zone preservation pro-gram on its premises, 30% of which, or about 15 hect-ares, is now covered with greenery. Recognizing that the green spaces it maintains constitute an important environ-mental asset for communities in the surrounding area, the Tsuchiura Works has been working proactively to protect and develop this invaluable asset. During FY2011, the greenery maintained through this program was selected as one of Japan’s top 100 corporate greenery sites con-tributing to the protection of biodiversity by the Organizat ion for Landscape and Urban Green Infrastructure.1 This selection refl ected efforts made to use natural greenery to create a better environment for the works. To maximize the use of natural greenery, employ-ees carefully choose and plant native fl ora while accom-modating other environmental considerations. The green zone situated north of the works has become home to various wild birds, such as water wagtail and Japanese pheasant. Also, the Tsuchiura Works has established the Kidamari-no-Mori forest on the former site of an old gymnasium and swimming pool as well as a biotope2 next to this forest. In this biotope, a variety of fauna and fl ora have fl ourished, including eight species of dragonfl y.
1 This organization disseminates excellent examples of green zone preservation, creation and utilization by corporate entities.
2 Biotope: An English loanword derived from the German Biotop, which, in turn, comes from the Greek bios, meaning life or organ-ism, and topos, meaning place. The word biotope means an artifi -cially maintained area where animal and plants can live sustainably.
Hitachi Cable is promoting a volunteer activity involving the planting of fl oating heart in the Kasumigaura area in Ibaraki Prefecture. In the past, many colonies of this water plant could be found in Kasumigaura. The pretty yellow fl owers were once a seasonal feature of the area, along with hobikisen fi shing boats on Lake Kasumigaura. However, recent large-scale development projects in the area have resulted in a deterioration of the lake’s water quality, result-ing in a signifi cant decrease in fl oating-heart numbers. In response, the Kasumigaura Floating-Heart Project was launched in 1995 to revitalize the local ecosystem. Hitachi Cable joined the project in 2000. Since then, we have nur-tured fl oating-heart seedlings within the Tsuchiura Works site and planted them around the lake. In FY2011, under a clear autumn sky, 28 employees made a tr ip to Kasumigaura, where, after fi rst removing lotuses, which hamper the growth of floating heart, they planted seedlings.
Floating Heart Planting Activity in Kasumigaura
Engagement with Society and Local Communities
In line with its Fundamental Credo, the entire Hitachi Cable Group is working as one to conduct corpo-rate activities in a fair and open manner, promote harmony with the natural environment and engage vigorously in activities that contribute to social progress. These activities are implemented through the daily operations of all Group employees, domestic and overseas.
Protecting the Global and Local Environment
A lush green lines the main road within the Tsuchiura Works.
Contributing to Biodiversity Protection
Floating heart seedlings
Planting fl oating heart seedlings
The biotope created on site at the Tsuchiura Works
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In Ibaraki Prefecture, the last Sunday of July every year since 2002 has seen personnel from Hitachi Cable’s Toyoura Works and certain Group companies located in the Hitachi area working together with Hitachi City’s Juo River Fishermen’s Cooperative to conduct cleanup activi-ties along the Juo River, which runs right next to the works’ site. As the ninth such event, the FY2011 cleanup involved not only the employees of the works, but also their children. The participants combed the banks of the river for trash, promoting regional beautification and nature protection.
Cleanup Activities along the Juo River
Cleanup activities along the Juo River (Hitachi City, Ibaraki Prefecture)
Category and Activity Description Name of Company and Works
Regional Cleanup Activities
Participation in the Love Earth Clean Up in Hokkaido 2010 program to protect the rich diver-sity of nature found in Hokkaido
Hitachi Cable, Ltd. (Hokkaido Branch)/Tonichi Kyosan Cable, Ltd. (Hokkaido Branch)/Hokkai Hitachi Densen Kihan, Ltd.
Cleanup activities around the office premises Tonichi Kyosan Cable, Ltd. ( Ishioka Office)
Joint cleanup activities with Kidamari residents one week before the Kasumigaura Marathon Tsuchiura Works
Cleanup activities around the works premises
“Clean & Green Project” parks cleanup and weeding activities organized by the association of local corporations/Cleanup and beautification activities in the Matsugamisaki Park
Hitachi Cable Precision Co., Ltd. (Yonezawa Works)
Cleanup activities around the west entrance of Kanda Station in cooperation with Chiyoda Ward residents and retailers in the area (once or twice a month) Hitachi Densen Shoji, Ltd. (Head Office)
Biannual cleanup activities around the branch office premises Hitachi Densen Shoji, Ltd. ( Chubu Branch/Ibaraki Branch)
A Hitachi, Ltd. event in Gunma Prefecture to commemorate the 100th anniversary of founding to conduct cleanup activities along the Tone River
Hitachi Densen Shoji, Ltd. ( Kanto-Shinetsu Branch/Gunma Branch)
Beautification activities organized by the Aoba Ward Safe City Environment Promotion Council in line with the holding of the APEC conference Hitachi Densen Shoji, Ltd. ( Tohoku
Branch) Volunteer parks cleanup activities organized by Hitachi Group’s Aoba Kai (Green Leaves Club) at the Tohoku branch office with about 500 participants from 43 Hitachi Group companies
Beautification activities, including graffiti cleanup, flyer removal and trash picking, prior to the Sendai Light Pageant 2010 hosted by Sendai City Hall
Tohoku Rubber Co., Ltd./Hitachi Densen Shoji, Ltd. (Tohoku Branch)
Cleanup activities around the Sendai Port as part of port facility development Tohoku Rubber Co., Ltd.
Kazusagawa River cleanup activities in summer and fall in cooperation with local residents
Works and Group companies in the Hitachi area
Cleanup activities at stations, along commuter roads and on beaches near business sites
Mount Kamine and Mount Takasuzu Climb & Clean Program
Project to improve the hiking courses within the Ogitsuyama Nature Park
Cleanup activities around office premises(Hitachi City, Ibaraki Prefecture)
Environmental beatification activities around office premises (Hitachi Densen Shoji, Ltd. Tohoku Branch)
Kazusagawa River cleanup activity(Hitachi City, Ibaraki Prefecture)
33 | Hitachi Cable, Ltd. CSR Report 2011
As Hitachi Cable’s flagship sporting group, our Marathon Team provides excitement to our employees and commu-nity members alike while helping nurture a sense of unity throughout the Hitachi Cable Group. The team has com-peted in the All-Japan Inter-Business Organization Ekiden Relay Race, which is an annual New Year’s event, over the past nine consecutive years for a total of 24 races throughout its history. In addition, the Marathon Team participates in the Hitachi Sakura Road Race, which takes place in Hitachi City, Ibaraki Prefecture, as guest runners and in the Kasumigaura Marathon (International Blind Marathon Kasumigaura), which takes place in Tsuchiura City, Ibaraki Prefecture, as escorts for visually impaired runners.
Through proactive participation in regional sporting events and festivals, the team is contributing to the invigoration of regional communities.
Growing Together with Local Communities
Regional Contribution Activities by Our Marathon Team
Competing in basketball matches nationwide in the Japan Basketball League 2 (JBL2), Hitachi Cable’s Basketball Team, the “Hitachi Cable Bulldogs,” is helping to increase the popularity of basketball in Japan. Aside from these professional matches, the team regularly provides basket-ball technical training and stages practice matches for ele-mentary, junior-high and high school students at various locations throughout Japan. These events attract many student players every year. Also, recognizing the impor-tance of exchanges with local communities, the team actively participates in regional festivals as volunteers every year.
Regional Contribution Activities by Our Basketball Team
Volunteer escorts in the Kasumigaura Marathon
In August 2010, about 30 employees of AHCL (Thailand) Co., Ltd. built a mushroom cultivation shed at an elemen-tary school near their facilities. This shed is used as a tool of elementary education, and the mushrooms grown in the shed are used in the students’ school lunches. In addition, they promoted cultural exchanges with students through various games and a dance contest.
Supporting an Elementary School in Thailand
In response to a request received from Indiana University in the United States, Hitachi Cable Automotive Products USA, Inc. invited a biology professor and 12 research stu-dents to its main plant in Indiana. At the plant, the guests observed wastewater treatment systems while learning about the company’s recycling activities involving wood-chips, metal materials and waste oil. Hitachi Cable America has provided two plant tours in the past, one in October 2010 and another in April 2011. Through plant tours, the company provides guests with opportunities to understand how it is contributing to environmental protec-tion and biodiversity preservation. Also, the Florida Plant of Hitachi Cable Automotive Products USA held a seminar to introduce Japanese culture and custom to its employees
in cooperation with University of West Florida, as part of an industry-academia exchange.
Our Social Contribution Activities in the United States
Construction of a mushroom cultivation shed
Introduction of Japanese culture
Basketball Team members providing technical training
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Other Major Social Contribution Activities in FY2011Category and Activity Description Name of Company and Works
Participation in Regional Events
Participation in the Hong Kong Community Chest’s “Walk for Millions” Hitachi Cable Asia Ltd. (Hong Kong Head Office)
Co-sponsorship of the Nippon IT Charity Ekiden Relay Race Hitachi Cable Networks, Ltd.
Tsuchiura City Industry Festival Tsuchiura Works/Hitachi Densen Shoji, Ltd.
Exhibition of a snow lantern at the annual Snow Lantern Festival in February hosted by Yonezawa City
Hitachi Cable Precision Co., Ltd. (Yonezawa Works)
Acquisition of Miyagi Sugure MONO (Excellent Product) certification in Miyagi Prefecture for escalator handrails exhibited at the Miyagi Prefectural Office Tohoku Rubber Co., Ltd.
Hitaka Onmosa Matsuri festival Works and Group companies in the Hitachi area Hitachi Sakura Matsuri festival as volunteers
Hitaka Natsu-Matsuri festival
Educational Activities Works and site tours for local residents and elementary and junior-high school students Hitaka Works/Takasago Works/Tohoku
Rubber Co., Ltd.
Opening Company Facilities to the
Public
Athletic field, gym and welfare facilities opened to the public Hitaka Works
Athletic field opened to the public free of charge/tennis court opened to the public Tonichi Kyosan Cable, Ltd.
Donations
Collection and contribution of monetary donations from employees through the Japanese Red Cross Society’s Helping Hand Campaign
Hitachi Cable Precision Co., Ltd. (Yonezawa Works)
Biannual monetary donations to Aoju-Kai, an NPO promoting tree planting in Inner Mongolia Hitachi Densen Shoji, Ltd. (Head Office)
Participation in the “ecoCAP Movement” organized by MATE, an environmental group operat-ing in Yokohama City, by collecting and sending in plastic bottle caps every month
Hitachi Cable, Ltd. (Head Office/branches/sales offices)/domestic Group companies
Blood Drive Contributions to blood drive Tonichi Kyosan Cable, Ltd. ( Ishioka Office)/works and Group companies in the Hitachi area/Tsuchiura Works/HCSZ
Regional Safety Activities Monthly traffic safety activities at crossroads near plants Hitachi Cable (Suzhou) Co., Ltd.
Disaster Prevention Voluntary fire departments orgnized Works of Hitachi Cable, Ltd./Tonichi
Kyosan Cable, Ltd.
Local Production for Local
ConsumptionPromotion of local production for local consumption at welfare facilities Welfare service facilities in the Hitachi
area (Hitaka Club/Suginouchi Club)
Charity event “Walk for Millions” (Hitachi Cable Asia Ltd.) Participation in Hitaka Onmosa Matsuri festival (Hitachi City, Ibaraki Prefecture)
Works and site tours for local high school students (Tohoku Rubber Co., Ltd.)
Traffic safety activities (Hitachi Cable (Suzhou) Co., Ltd.)
35 | Hitachi Cable, Ltd. CSR Report 2011
The Hitachi Cable Group Corporate Behavior Standards stipulate the missions and roles that the Group and its members must fulfi ll. In line with these standards, we for-mulated the Hitachi Cable Group’s Action Guidelines for Environmental Protection in 1993 and have accordingly promoted activities to protect the environment. In 2005, we added to the guidelines a new clause clarifying our stance regarding stakeholder engagement and renamed the guidelines the Hitachi Cable Group’s Action Guidelines for Environmental Conservation. In 2011, we again amended the guidelines, newly providing for eco-system protection in business activities. Meanwhile, in
2006, we formulated the Hitachi Cable Group CSR Policy, which clarifi ed the Group’s social responsibility. In line with these policies, we have established the Environmental Action Plan, with particular focus placed on the four areas of: (1) balancing production activities with environmental conservation considerations; (2) creat-ing products that help reduce environmental burdens; (3) promoting environmental management and an environ-mental mind-set; and (4) facilitating environmental collab-oration with stakeholders. Underpinned by this plan, we are promoting environmental conservation activities.
Hitachi Cable GroupCorporate Behavior Standards
Hitachi Cable Group’s Action Guidelinesfor Environmental Conservation
Hitachi Cable Group CSR Policy
Environmental Policies of the Hitachi Cable Group
Two events—a natural disaster and a man-made environmental catastrophe—occurred simultaneously in the wake of the Great East Japan Earthquake. With radioactive contamination spread over a broad region, the aftermath of the twin disasters has created signifi cant problems in the area of environmen-tal conservation. With this knowledge, the Hitachi Cable Group has renewed its determination to tackle environmental conservation more sincerely than ever before.
Hitachi Cable Group’s Action Guidelines for Environmental Conservation
Purpose
1. Global environmental conservation is a critical challenge shared by all humans. We are committed, therefore, to fulfi lling our responsi-bilities by assisting in the realization of an environmentally harmo-nious and sustainable society as one of our management priorities.
2. We will make efforts to contribute to society by developing highly reliable technologies and production processes, while identifying needs considering concerns related to the prevention of global warming, conservation of resources, and preservation of ecosys-tem.
3. Members of the board in charge of environmental conservation are responsible for facilitating appropriate environmental conservation activities. Departments responsible for environmental conservation should endeavor to promote and ensure environmental conserva-tion activities, including improving environment-related rules and regulations and setting goals for environmental burden reduction. These departments should also confi rm that their environmental conservation activities are conducted in a proper manner and ensure that these activities are maintained and improved.
4. We will promote globally-applicable ‘MONOZUKURI’ with the aim of understanding and reducing environmental burdens at every stage, including product research and development, design, pro-duction, distribution, sales, usage, and fi nal disposal.
5. We will investigate and review the environmental impact caused in the course of our MONOZUKURI processes. Hitachi Cable will also introduce excellent technologies and materials useful to safeguard the environment, in other words, to reduce environmental burdens through energy and resource saving, recycling, chemical sub-stance management, consideration for the ecosystem, and other measures.
6. Our environmental conservation efforts are not only to be focused on observing international environmental regulations and those of national and local governments, but also on conserving the envi-ronment by implementing voluntary environmental standards when necessary.
7. Regarding globally-applicable ‘MONOZUKURI’ activities, impact on the local environment and community are to be considered. In addition, measures that meet local communities’ requests should be implemented.
8. We will educate our employees to take action in order to obey environment-related laws, raise their global environmental aware-ness, and encourage their interest in environmental conservation having wide-view about society activities.
9. We will evaluate potential environmental problems and prevent them from occurring. In the event that any environmental problem occurs, Hitachi Cable will take appropriate measures to minimize the environmental burden.
10. We will make efforts to disclose information on our environmen-tal conservation activities to our relevant stakeholders. We will also actively communicate with these stakeholders so as to strengthen mutual understanding and forge cooperative relation-ships with them.
Amended March 2011
In order to realize an environmentally harmonious and sustainable society through products and services, the Hitachi Cable Group is committed to meeting its social responsibilities by promoting globally-applicable “MONOZUKURI” (designing, manufacturing or repairing of products) that is aimed at reducing the environmental burden of products throughout their entire life cycle, advancing environmental conservation.
Hitachi Cable Group’s Action Guidelines for Environmental Conservation
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Environmental Management Status
The Hitachi Cable Group formulates an Environmental Action Plan every year and, based on review of how much has been achieved under these plans, strives to manage its environmental conservation activities in a strategic manner.
The H i tach i Cab le Group has es tab l i shed a Companywide Environmental Committee and project-specifi c subcommittees to promote environment-related activities. The Companywide Environmental Committee consists of such members as representatives of works, Group companies, subcommittees, the Corporate Social Responsibility Offi ce and the Procurement Center. The committee prepares blueprints for annual Hitachi Cable Group Environmental Action Plans, reviews and evalu-ates achievements, runs the PDCA cycle to study possi-ble improvements, and discusses common challenges with regard to protecting the environment. Project-specifi c subcommittees examine specifi c initiatives to enable Hitachi Cable to meet its targets in global warm-ing prevention and other areas under Hitachi Cable Group Environmental Action Plans. In addition, these subcommittees are responsible for compiling data on the results of the initiatives that they examine. Also, Hitachi Cable has established the Environment
Center under its Corporate Quality & Environment Group as the organization responsible for environmental man-agement on a Groupwide scale. The Environment Center disseminates environmental action policies and other types of information to all works and Group companies while compiling data on the results of environmental activi-ties at these workplaces. Hitachi Cableʼs works and Group companies promote environmental conservation activities in accordance with the Company’s annual Environmental Action Plans, and the scope of these activities at each facility is governed by the scope of that facility’s ISO14001 certifi cation. In addition, the environmental management system promoted by the Hitachi Cable Group is closely l inked with that promoted by the Hitachi Group. Accordingly, Hitachi Cable’s Environmental Center, which is a part of the Hitachi Group Environmental Operation Organization, is responsible for implementing environmen-tal activities in line with those implemented by the Hitachi Group.
President & CEO
Executive Officer Responsible for the Environment (Group-Executive, Corporate Quality & Environment Group)
Hitachi Cable Works (and Group Companies at Works sites)
Domestic Group companies
Overseas Group companies
Green Logistics PromotionWorking Group
Chemicals Management Subcommittee
Environment Center, Corporate Quality & Environment Group
Companywide Environment Committee
Recycling Promotion Subcommittee
Eco-Products Subcommittee
Global Warming Prevention Subcommittee
As of April 2011, a total of 24 domestic and overseas sub-sidiaries of Hitachi Cable have received ISO14001 environ-mental management system certifi cation, one less than in FY2010. This decrease refl ected the consolidation of cer-tain production bases, which resulted in the decision to discontinue certifi cation renewal at one of our domestic
Group companies during FY2011. Also, the Hitachi Group Environmental Operation Organization, which consists of the environmental promo-tion offi ces of Hitachi Group companies, has acquired the ISO14001 certification. This organization includes the Environment Center of Hitachi Cable.
Hitachi Cable, Subsidiaries and Affi liates under Integrated Certifi cation
Number of Certifi cates
Number of Certifi ed Hitachi Cable Sites Subsidiaries/Affi liates
3 6 9
Domestic and Overseas Subsidiaries
Domestic Overseas
Number of Certifi cates 7 14
Hitachi Group Environmental Operation Organization
Scope of Certifi cation Hitachi Environmental Strategy Offi ce and environmental promotion offi ces of Hitachi Group companies
Certifi ed Body at Hitachi Cable Environment Center, Corporate Quality & Environment Group
Environmental Management Structure
ISO14001 Certifi cation Status
37 | Hitachi Cable, Ltd. CSR Report 2011
0
1000
2000
3000
4000
5000
6000
6,000
4,500
1,500
3,000
0
Number of Employees Who Have Taken e-Learning Course (Persons) (%)
FY2008 2009
3,965
2010
4,896
2011
5,228 5,252
Number of course takersCourse-taker
rate
(90)FY2010 target
for course-taker rate
Number of course takers Course-taker rate
95
80
65
50
8185
94 95
During FY2011, the Hitachi Cable Group faced one case of administrative guidance and received one complaint from a third party. Regarding the case of administrative guidance, it was revealed that Hitachi Cable failed to notify the relevant authorities of the installation and alteration of facilities designated as those regulated under Japan’s Sewerage Service Act. Immediate action was taken once the situa-
tion became known, and the Company submitted the appropriate notification to the local sewerage department and received a warning statement. The complaint that Hitachi Cable received was about noise generated during operational shutdown at certain facilities. In response to the complaint, we made improve-ments in our work processes to reduce noise levels.
Hitachi Cable provides its employees with environmental education. Specifically, the Company offers general edu-cation for all employees as well as position-specific edu-cation and advanced education. Through the general education for all employees, we offer environmental e-learning updated every year, as well as introductory and explanatory articles through publications for employees and their families. Ninety-five percent (5,252 employees) of all Group employees on a global basis to whom environmental education is avail-able have taken the FY2011 version of the environmental e-learning course. Through advanced environmental education, we provided education aimed at fostering internal environmental management system (EMS) audi-tors and improving the ski l ls of these auditors. Furthermore, we provided communicator education pro-grams to enhance the capabilities of staff who are involved with communication with third parties.
Also, each business unit that has acquired ISO14001 and EMS certifications independently holds meetings to explain their environmental objectives and targets while promoting education on the implementation frameworks of related systems and specified business operations relating environmental management.
Administrative Guidance and Complaints
Category FY2008 FY2009 FY2010 FY2011
Administrative Guidance 1 0 1 1
Complaints 1 3 2 1
Category Activity
General Education
Environmental e-learning education
Environmental policy/objective/target presentations
On-site EMS skills education
Environmental lectures
Publication for employees and their families
Position-Specific
Education
Manager and supervisor education
Middle-ranking employee education
Education for newly employed
Advanced Education
Advanced environmental education
Education relating to specified operations
Internal EMS auditor education
Department-Specific
Education
Education on chemicals management
Education on chemical products regulations
Education on waste sorting and disposal
Status of External Environmental Communications
Environmental Education
Environmental education for new employees
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In FY2011, Hitachi Cable conducted audits on the status of compliance to allowable values defined under related environmental laws and regulations. At the same time, we examined the results of internal environmental audits conducted by each business unit that has acquired ISO14001 certification. Through audits of the status of compliance to regula-tory allowable values at our 15 domestic works, we con-firmed our compliance with all such allowable values as well as voluntary control values. We also confirmed that all these cases have been resolved. Also, through the examination of the results of internal environmental audits conducted by each business unit that has acquired ISO14001 certification, we confirmed items that were determined to be non-compliant. All of these cases were minor or subject to continued observation. For these cases, management review has been appropriately per-formed. Moreover, for one Group works in Japan and four Group works operating in China, Hitachi Cable conduct-ed on-site inspections and provided guidance regarding
the status of their environmental activities. Through these auditing and checking processes, we confirmed compliance, risk management and the effec-tiveness of systems throughout the Group.
Category Description
Audit of Legal and Regulatory
Compliance
Subject 15 works
Violation of voluntary control values 0 cases
Violation of regulatory and ordinance allowable values 0 cases
Examination of Results of Internal
ISO14001 Audits
Subject
8 ISO14001-certified units (groups of
manufacturing bases) 157 divisions and
departments
Violation 34 cases
Improvement required 59 cases
On-Site Inspectiions
and GuidanceSubject 5 works
Environmental Auditing
To prevent environmental pollution incidents, each works of Hitachi Cable conducts risk checks on envi-ronmental facilities and emergency drills. In FY2011, we continued risk checks on such facili-ties as oil and chemical solution tanks and pipes, breakwaters, chemical storage, exhaust gas treatment towers and wastewater treatment systems. Also, as emergency drills, we conducted drills for spill prevention on the assumption that oil or chemical solutions had leaked within individual work sites. Another example of emergency drills involved practicing response measures on the assumption that a photochemical smog advisory had been announced.
Risk Minimization through Environmental Facility Checkups/ Emergency Drills
Risk checks on environmental facilities (Takasago Works)
streamlining through industrial engineering (IE) educa-tion; (3) the reduction of power consumption; and (4) the strengthening of appropriate waste sorting. I am also responsible for follow-up activities to enable the center to achieve these plans and targets. Because the center is providing back-office func-tions, it is difficult for us to take a quantitative approach. In other words, it is difficult to formulate action plans and set targets providing specific figures. However, we have established a system that clarifies our progress in reduc-ing power consumption by using graphs showing targets and results. As the importance of electricity saving con-tinues to grow, we are determined to further efforts to cut electricity use. As for waste sorting, my colleagues may think of me as an annoyance as I strictly monitor the status of sorting. I will continue to patiently ask for their cooperation. In addition to my environmental endeavors at work, I am stepping up environmental practices at home. This is to keep the Earth’s environment safe and sound for our children and their children. This year, my family and I are working together to grow a green bitter gourd curtain to shade a sunny window.
VOICE
Eriko Kurosawa Industrial Engineering Section, Production Engineering & Operations Center,Production Engineering Promotion Group
I have been involved with the promotion of ISO14001-based environmental initiatives at the Production Engineering & Operations Center since 2006. In addition to promoting activities related to internal and external environmental audits, I am responsible for the formula-tion and implementation of environmental plans and tar-gets for the center. These plans and targets include: (1) the promotion of facility streamlining through system renewal and alteration; (2) the promotion of operational
39 | Hitachi Cable, Ltd. CSR Report 2011
Based on the Hitachi Group’s unique evaluation system for environmental measurement, “GREEN21,” Hitachi Cable evaluates environmental management levels and Environmental Action Plan achievements in eight catego-ries. Under this system, the Company has promoted envi-ronmental activities for five years since FY2007, with the aim of achieving 1,280 Green Points (GPs) by FY2011, the final year set for achieving the previous CSR Medium-Term Targets. In FY2011, the Hitachi Cable Group achieved a 115 GP improvement from 1,194 GPs in FY2010 to 1,309
GPs, which represents the fulfillment of the Group’s target. Also, the Group set FY2011 targets for each category at 160 GPs. Although we failed to meet our targets for “Eco-Factory (Global Warming Prevention)” and “Eco-Factory (Resource Recycling),” we managed to exceed our targets for six other categories. From FY2012 onward, Hitachi Cable will use the new GREEN21 2015 Version evaluation system and promote activities to achieve 640 GPs in fiscal 2016.
Categories and Evaluation Items
Category Major Evaluation Items
Eco-Management/Environmental Management Environmental Action Plan, environmental accounting, compliance with laws and regulations
Eco-Mind Environmental education of employees
Environment-Friendly Products Eco-design management, environment-friendly products
Green Procurement Supplier selection, use of green procurement system
Next-Generation Product/Service Strategies Eco-products strategies, sustainable business models
Eco-Factory (Global Warming Prevention) Energy-saving at factories, energy-saving in transportation
Eco-Factory (Resource Recycling) Waste reduction, chemicals management
Environmental Collaboration with Stakeholders Information disclosure, award applications, global citizenship activities
FY2007 FY2010FY2011
826GP1,194GP
Total 1,309GP
Eco-Management/Environmental Management
Eco-Mind
Environment-Friendly Products
Green Procurement Eco-Factory
(Global Warming Prevention)
Eco-Factory/Resource Recycling
Environmental Collaboration with Stakeholders
Next-Generation Product/Service Strategies
Green Point Evaluation Results
50
100
150
200
50
100
200
164GP
172GP
167GP
169GP
154GP
153GP
161GP
170GP150
Environmental Management Evaluation System, GREEN21 Ver. 3
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Environmental Accounting
Shown below are the costs as well as the economic effects to date of environmental conservation activities undertaken at Hitachi Cable Group’s domestic sites. In particular, the Company’s calculations of the economic effects of these activities are used as indicators to guide its future environmental activities.
In FY2011, Hitachi Cable’s environmental conservation cost increased year on year. In contrast, overall invest-ment in such activities showed a substantial year-on-year decrease. Environmental conservation cost has continued to rise over the past fi ve fi scal years, largely due to an increase in R&D cost. In FY2011, R&D cost increased 70% year on year, refl ecting the inclusion of costs associated with
the development of environment-friendly products in the Information Systems Devices & Materials Group. The investment amount in FY2011 signif icantly declined, owing to the completion of investment projects during FY2010 aimed at realizing fuel conversion and reducing aerial emissions of volatile organic compounds (VOCs). In addition, the decline refl ected the suppression of facility investments throughout the Group.
■ Scope of calculation: Hitachi Cable and production bases of domestic Group companies (excluding Tohoku Rubber Co., Ltd., Hitachi Cable Film Device, Ltd. and the Yonezawa factory of Hitachi Cable Precision Co., Ltd.)
■ Period: April 1, 2010 to March 31, 2011
Environmental Conservation Cost (Unit: Millions of yen)
Category Major Activities Investment Amount Cost
Cost at works area Pollution prevention, energy saving, resource saving, waste processing, monitoring of and measurement at environmental facilities 90 3,567
Breakdown
Pollution prevention cost Facility operation and management to prevent pollution (water pollutant removal, wastewa-ter treatment, etc.) 5 963
Global environmental conservation cost Facility investment and maintenance for energy saving and CO2 emission reduction 78 501
Resource recycling cost Waste processing operations Facility operation and management for waste recycling and reduction 7 2,103
Upstream/downstream cost Collection and reuse of drums, bobbins, reels, pallets and containers 0 531
Management activity costAdministration and maintenance of environmental management systems Cost of environmental education for employees and labor costs of environmental management organizations
0 457
R&D cost R&D of environment-friendly products 0 2,158
Social activity cost Greening, beautifi cation, landscaping and other environmental improvements 0 4
Environmental damage compensation cost Environment-related donation and surcharges 0 3
Total 90 6,720
Economic Effects Generated from Environmental Conservation Measures
(Unit: Millions of yen)
Description of Cost Reduction Amount
Energy cost reduction through energy saving 279
Cost reduction through reuse of drums, bobbins and pallets 629
5000
6000
7000
6,000
4,000
2,000
0 0
Environmental Conservation Cost/Investment (¥ million)
1,500
1,000
500
(¥ million)
FY2007 2008 2009 2010 2011
5,840 6,004 6,076 6,119
1,166
931
504
6,720
90
1,359
Environmental conservation cost Investment amount
Environmental conservation cost Investmentamount
41 | Hitachi Cable, Ltd. CSR Report 2011
Environmental Action Plan Involving Production Activities at Domestic Works 〇: Achieved; ×: Not achieved/improvement efforts required; —: Not applicable
Item FY2011 Environment Action Plan
Evaluation Page FY2016 Target (Plan) FY2012 Target Target Result
Balancing production activities with
environmental conservation
Global warming prevention
Reduce CO2 emissions by 7%(compared with the FY1991 level)
24% reduction 〇 P.44Reduce CO2 emissions by 12% (compared with the FY1991 level)
8% reduction
Reduce SF6 emissions by 35% (compared with the FY2004 level)
45% reduction 〇 P.44Reduce CO2 emissions per unit of net sales to the FY2006 level
Same as at left
Transport energy reduction Reduce crude oil-equivalent energy use (ton-kilometer) of transportation by 4% (compared with the FY 2007 level)
6% increase 〇 P.47Reduce crude oil-equivalent energy use (tom-kilo-meter) of transportation by 10% (compared with the FY 2007 level)
6% reduction
Effective use of resources
Reduce waste and recyclable waste generation by 29% (compared with the FY2001 level)
36% reduction 〇 P.48Reduce waste generation of net sales by 3.5% (compared with the FY2006 level)
1.5% reduction Improve the resource recycling rate*1 by 10% (compared with the FY2006 level)
25% 〇 P.49
Chemical emissions management Reduce VOC air emissions by 33% (compared with the FY2001 level)
45% reduction ○ P.51 Reduce VOC air emissions by 28% or less Same as at left
Creating prod-ucts that help
reduce environ-m
ental burdens
Increasing Eco-Products Improve the net sales rate*2 of Eco-Products to 50% or more 53% 〇 P.53〜54
Improve the Eco-Product sales ratio to 65% Improve to 54%
Achieve a ratio of products undergoing lifecycle CO2 emission assessment*5 of 20%
Achieve a ratio of 5%
Promoting environm
ental manage-
ment and environm
ental mindset
Improving GPs under GREEN21 Ver. 3
Achieve 1,280 GPs 1,309 GPs 〇 P.39Achieve 640 GPs under GREEN21 2015 Version for new evaluation items
Achieve 384 GPs
Promoting green procurement Increase the stationery and offi ce supply green procurement rate for Internet purchasing to 90% or more
96% 〇 P.52
Promoting environmental education Increase the participation rate for environmental e-learning to 90% or more 95% ○ P.37Raise the participation rate for environmental e-learning to 95% or more
Achieve a rate of 90% or more
Protecting biodiversity - - Promote ecosystem protection activities based on business assessment and achieve activity targets
②Decide specifi c activities
Facilitating envi-ronm
ental col-laboration w
ith stakeholders
Promoting environmental communi-cation and implementing global citizenship activities
・Enhance communication through exhibitions, etc. ・ Promote social contribution activities related to the environment, including the opening of works
facilities to the public, community cleaning activities and greening activities
・Participated in an exhibition ・ Implemented community
cleaning activities ・ Participated in various
volunteer activities, etc.
〇 P.31〜32,54
•Accelerate stakeholder communication • Promote social contribution activities relating to
the environmentSame as at left
Note 1: Figures relating to GREEN21 Ver. 3 and the participation rate for environmental e-learning include overseas business sites.
Environmental Action Plan Involving Production Activities at Overseas Business Sites
Balancing production activities w
ith environmental conservation
Global warming prevention Reduce CO2 emissions of net sales by 5% (compared with the FY2004 level)
55 % reduction 〇 P.46Reduce CO2 emissions per unit of net sales by 10% (compared with the FY2006 level)
6% reduction
Effective use of resources
Reduce waste and recyclable waste generation by 21.4% (compared with the FY2005 level)
21.4% reduction 〇 - Reduce waste generation per unit of net sales by 20% (compared with the FY2006 level)
12% reduction
Reduce water usage by 10% (compared with the FY2006 level)
7.5% reduction ×*3 - Reduce water usage per unit of net sales by 10% (compared with the FY2006 level)
8% reduction
Chemical management Reduce VOC air emissions*4 by 10% (compared with the FY2006 level)
42% reduction 〇 - Reduce VOC air emission ratio to 7% or less Same as at left
Note 2: Evaluation for six major overseas business sites Note 3: VOC air emissions of three overseas business sites with the VOC air emission ratio of 15% or more were factored in.
Environmental Action Plan and Result Evaluation
The following table shows targets, results and the evaluation of such results for key items addressed by the Hitachi Cable Group under the FY2011 Environmental Action Plan. The table also shows FY2016 targets and FY2012 targets for individual action items under the Group’s new Environmental Action Plan effective through to FY2016.
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Environmental Action Plan Involving Production Activities at Domestic Works 〇: Achieved; ×: Not achieved/improvement efforts required; —: Not applicable
Item FY2011 Environment Action Plan
Evaluation Page FY2016 Target (Plan) FY2012 Target Target Result
Balancing production activities with
environmental conservation
Global warming prevention
Reduce CO2 emissions by 7%(compared with the FY1991 level)
24% reduction 〇 P.44Reduce CO2 emissions by 12% (compared with the FY1991 level)
8% reduction
Reduce SF6 emissions by 35% (compared with the FY2004 level)
45% reduction 〇 P.44Reduce CO2 emissions per unit of net sales to the FY2006 level
Same as at left
Transport energy reduction Reduce crude oil-equivalent energy use (ton-kilometer) of transportation by 4% (compared with the FY 2007 level)
6% increase 〇 P.47Reduce crude oil-equivalent energy use (tom-kilo-meter) of transportation by 10% (compared with the FY 2007 level)
6% reduction
Effective use of resources
Reduce waste and recyclable waste generation by 29% (compared with the FY2001 level)
36% reduction 〇 P.48Reduce waste generation of net sales by 3.5% (compared with the FY2006 level)
1.5% reduction Improve the resource recycling rate*1 by 10% (compared with the FY2006 level)
25% 〇 P.49
Chemical emissions management Reduce VOC air emissions by 33% (compared with the FY2001 level)
45% reduction ○ P.51 Reduce VOC air emissions by 28% or less Same as at left
Creating prod-ucts that help
reduce environ-m
ental burdens
Increasing Eco-Products Improve the net sales rate*2 of Eco-Products to 50% or more 53% 〇 P.53〜54
Improve the Eco-Product sales ratio to 65% Improve to 54%
Achieve a ratio of products undergoing lifecycle CO2 emission assessment*5 of 20%
Achieve a ratio of 5%
Promoting environm
ental manage-
ment and environm
ental mindset
Improving GPs under GREEN21 Ver. 3
Achieve 1,280 GPs 1,309 GPs 〇 P.39Achieve 640 GPs under GREEN21 2015 Version for new evaluation items
Achieve 384 GPs
Promoting green procurement Increase the stationery and office supply green procurement rate for Internet purchasing to 90% or more
96% 〇 P.52
Promoting environmental education Increase the participation rate for environmental e-learning to 90% or more 95% ○ P.37Raise the participation rate for environmental e-learning to 95% or more
Achieve a rate of 90% or more
Protecting biodiversity - - Promote ecosystem protection activities based on business assessment and achieve activity targets
②Decide specific activities
Facilitating envi-ronm
ental col-laboration w
ith stakeholders
Promoting environmental communi-cation and implementing global citizenship activities
・Enhance communication through exhibitions, etc. ・ Promote social contribution activities related to the environment, including the opening of works
facilities to the public, community cleaning activities and greening activities
・Participated in an exhibition ・ Implemented community
cleaning activities ・ Participated in various
volunteer activities, etc.
〇 P.31〜32,54
•Accelerate stakeholder communication • Promote social contribution activities relating to
the environmentSame as at left
Note 1: Figures relating to GREEN21 Ver. 3 and the participation rate for environmental e-learning include overseas business sites.
Environmental Action Plan Involving Production Activities at Overseas Business Sites
Balancing production activities w
ith environmental conservation
Global warming prevention Reduce CO2 emissions of net sales by 5% (compared with the FY2004 level)
55 % reduction 〇 P.46Reduce CO2 emissions per unit of net sales by 10% (compared with the FY2006 level)
6% reduction
Effective use of resources
Reduce waste and recyclable waste generation by 21.4% (compared with the FY2005 level)
21.4% reduction 〇 - Reduce waste generation per unit of net sales by 20% (compared with the FY2006 level)
12% reduction
Reduce water usage by 10% (compared with the FY2006 level)
7.5% reduction ×*3 - Reduce water usage per unit of net sales by 10% (compared with the FY2006 level)
8% reduction
Chemical management Reduce VOC air emissions*4 by 10% (compared with the FY2006 level)
42% reduction 〇 - Reduce VOC air emission ratio to 7% or less Same as at left
Note 2: Evaluation for six major overseas business sites Note 3: VOC air emissions of three overseas business sites with the VOC air emission ratio of 15% or more were factored in.
Remarks on Target Column *1 The resource recycling rate is a value showing the rate of improvement in an index commonly used in the Hitachi Group to quantify lev-
els of sophistication of resource recycling by setting weight factors (calorific values) for individual treatment categories of waste reuse and recycling, thermal recycling, simple incineration and final disposal and multiplying the treatment amount of each category with the corresponding factor.
*2 Eco-Product sales ratio = Sales of Eco-Products
Consolidated net sales
*3 Water usage increased, reflecting increased production at all business sites. The increase was also attributable to the discontinuation of water recycling at PHCP, INC. due to issues relating to the quality of recycled water.
*4 VOC air emission ratio = Emission into air
Amount used
*5 Ratio of products undergoing lifecycle CO2 emission assessment = Number of products undergoing lifecycle CO2 emission assessment
Number of Eco-Products registered each fiscal year
43 | Hitachi Cable, Ltd. CSR Report 2011
Input of Resources and Energy and Output to the Environment
Shown below is the material balance of the Hitachi Cable Group. In other words, the following table shows the inputs of energy, water resources, raw materials and other purchased goods and chemical substances handled as well as the outputs in the forms of environmental burdens, waste and products shipped in FY2011 of the production sites of the Hitachi Cable Group.
INPUT OUTPUT
Production sites
Recycledcooling water:
19,989thousand m3
Total energy input ............................6,014TJ
Electricity ...............................488 million kWh
Fuel oil ...........................4,365 thousand litters
LPG ...................................................734 tons
LNG ................................................ 6,511 tons
City gas ........................... 16,040 thousand m3
Water usage ..................5,324 thousand m3
Service water .......................... 72 thousand m3
Industrial water ..................... 446 thousand m3
Ground water ..................... 4,806 thousand m3
Raw materials and other purchased goods
Copper ................................ 244 thousand tons
Iron ...................................... 8.8 thousand tons
Other non-ferrous metals ...... 20 thousand tons
Plastic/rubber ....................... 33 thousand tons
Parts, components and chemical products ............ 12.6 thousand tons
Paper ................................... 0.7 thousand tons
Wood ................................... 4.1 thousand tons
Packaging materials ............. 4.0 thousand tons
Others ................................. 5.1 thousand tons
Chemical substances handled (chemicals contained in raw materials and other purchased goods)
Chemicals regulated under the PRTR Law ....5,676 tons
Energy input
Electricity ................................ 182 million kWh
Fuel oil ..............................229 thousand litters
LPG ..................................................... 45 tons
LNG ...................................................788 tons
Raw materials and other purchased goods
Metals (copper, iron, others) .. 65 thousand tons
Plastic/rubber ....................... 14 thousand tons
Parts, components and chemical products ................. 7 thousand tons
Others .................................... 4 thousand tons
Do
mestic p
rod
uction sites
Overseas p
rod
uction sites
Air emissions CO2 ....................................225 thousand tons
SOX ........................................................ 3 tons
NOX ..................................................... 21 tons
SF6 (CO2 conversion)...........................2.0 tons (47.8 thousand tons)
PFC, HFC and other GHGs (CO2 conversion) ................................. 63 tons
Chemicals regulated underthe PRTR Law ................................... 96.1 tons
VOC ...................................................404 tons
Wastewater
Sewage water ....................... 927 thousand m3
Drainage into public water systems ...2,713 thousand m3
BOD ..................................................... 53 tons
COD ..................................................... 41 tons
Chemicals regulated under the PRTR Law .........0 tons
Waste and recyclable waste
Waste generation ..........................35,555 tons
Recycling ...................................... 27,623 tons
Final disposal ....................................... 65 tons
Products shipments ..... 314 thousand tons
CO2 emissions from product
transportation ................. 13 thousand tons
Do
mestic p
rod
uction sites
Air emissions
CO2 .................................... 132 thousand tons
Waste and recyclable waste
Waste generation .............................8,151 tons
Recycling ........................................5,235 tons
Final disposal .................................. 1,392 tons
Overseas p
rod
uction sites
These fi gures are for 20 overseas production sites.
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Global Warming Prevention
In an effort to contribute to the prevention of global warming, the Hitachi Cable Group continues to upgrade facilities at its production bases while working to more effectively use truck transportation and promoting modal shifts. In its offi ces, the Company is encouraging all employees to reduce energy usage by operating air-conditioning more effi ciently and by removing nonessential lights.
Hitachi Cable has been promoting activities aimed at reducing its CO2 emissions from energy use in Japan by 7% (compared with the FY1991 level) by FY2011. In Japan, the Hitachi Cable Group’s CO2 emissions from energy use during FY2011 totaled 225 thousand tons. This fi gure represents a 24% reduction compared with the FY1991 level, a result that far outstrips this target. During FY2011, specifi c activities included ongoing facility upgrading aimed at realizing greater energy sav-ings and the “visualization” of power consumption. More specifi cally, by clarifying our power consumption status through the use of electricity measurement equipment, we have been able to identify instances of wasteful ener-gy use. In addition to these voluntary efforts, a decrease in the CO2 conversion factor for electricity (an adjusted factor used for CO2 emission calculation) contributed to the signifi cant CO2 emission reduction from the FY1991 level. From FY2012 onward, Hitachi Cable will continue to work to reduce its CO2 emissions and thereby achieve a 12% reduction from the FY1991 level in FY2016.
(Target)2007 2008 2009 2010 2011
400
300
200
100
0
Hitachi Cable Group CO2 Emissions and CO2 Emissions per Unit of Net Sales (kt)
1.0
0.8
0.6
(t/¥ million)
CO2 emissions CO2 emissions per unit of net sales
FY1991
296266
0.983
0.842
225
0.958
0.862
309 227
0.930 0.927
CO2 emission (domestic) CO2 emission per unit of net sales (domestic)
(275)
FY2011 targetfor CO2 emissions
216
Note 1: The following CO2 conversion factors have been used: [Fuel] Fuel Category-Specifi c Emission Factors, Law Concerning the Promotion of
the Measures to Cope with Global Warming [Electricity] 0.417, the average announced by the Federation of Electric Power
Companies of Japan for FY1991; Adjusted CO2 Emission Factor for Each Power Producer, notifi cation by the Ministry of the Environment for FY2007 through FY2011
Note 2: CO2 emissions in FY2010 have been recalculated based on the factors announced by the Ministry of the Environment in that year.
Note 3: In the calculation of CO2 emissions per unit of net sales, a zero-base amount of net sales, which exclude the cost of copper, has been used.
Greenhouse gases (GHGs) other than CO2 generated through energy use include: (1) sulfur hexafl uoride (SF6), which is a gas used in the insulation performance tests of electric parts and components; (2) perfluorocarbon (PFC) and hydrofl uorocarbon (HFC), which are used as cooling agents for the heat transfer performance tests of copper pipes; and (3) CO2 used for neutralization pur-poses. Total SF6 emissions in FY2011 amounted to 2.0 tons, or 47,800 tons when converted to CO2. We achieved a 45% reduction from the FY2004 level, outperforming the 35% reduction target set under our Environmental Action Plan. In FY2004, Hitachi Cable introduced a recovery and recycling system for SF6, which is injected into testing equipment. Since then, the Company has increased the use of SF6 recovery and recycling systems, which, in turn, enabled it to signifi cantly reduce its SF6 emissions in FY2009 and FY2010. We expected to achieve the same level of reduction in FY2011. However, the SF6 enclosed in certain high-voltage equipment for electrical insulation escaped into the air due to damage caused to such equipment by the Great East Japan Earthquake. This had a signifi cant adverse impact on the Company’s SF6 emissions.
Total CO2-equivalent emissions of CO2 generated without energy use along with PFC and HFC emissions amounted to 100 tons. Total emissions of all GHGs, including SF6 and excluding CO2 generated without energy use, amounted to 47,900 tons.
150
100
50
0
SF6, HFC and PFC Emissions (Domestic)(Unit: 1,000 t-CO2)
FY1991SF6 HFC, PFC
0
50
100
150
145.8
2004
0.5
87.6
2008
0.2
56.8
2009
0.3
41.9
20112010
0.1
23.7
0.147.8
(56.9)
FY2011 targetfor SF6 emissions
Note 1: For emissions calculations, the Fuel Category-Specifi c Emissions Factors, defi ned under the Law Concerning the Promotion of the Measures to Cope with Global Warming, have been used.
Note 2: Calculation period is each fi scal year.
Reducing CO2 Emissions from Energy Use
Reducing SF6, PFC and Other GHGs
45 | Hitachi Cable, Ltd. CSR Report 2011
Category Description of Upgrading
Energy shift Replaced steam heating with heat-pump air-conditioning
Introduction of high-efficiency systems Replaced old air conditioners with new, high-efficiency air conditioners
Management reinforcement Reduced standby power consumption by accurately grasping the status of energy consumption
Use of inverters Installed inverters on well pumps and compressors Reduced the frequency at which fans of large air-conditioners are operated
Power distribution systems Renewed transformers and optimized their arrangement
Others Changed forced brake cooling method from compressed air method to fan method Optimized the lifting performance of circulating water recovery pumps
The following table shows major facility upgrading activi-ties that Hitachi Cable conducted at its domestic produc-tion sites during FY2011. These activities were aimed at improving the energy-saving performance of applicable facilities and thereby reducing their CO2 emissions.
Through these activities, Hitachi Cable reduced CO2 emissions by 2,575 tons year on year. This amount of reduction is equivalent to 1,716 kiloliters of crude oil, or to 66,510 gigajoules (GJ) of energy.
Energy-Saving Initiatives
Hitachi Cable’s Tsuchiura Works undertakes comprehen-sive copper processing, from melting to forming the mate-rial into variously shaped products, such as tube and strip. The physics of melting and stretching copper requires a set amount of energy, making it difficult to reduce energy use in these processes. Therefore, the Tsuchiura Works has promoted an energy-saving initiative that takes a dif-ferent approach: it has worked to “visualize” the around-the-clock power consumption of individual systems and equipment. Through this initiative, the Tsuchiura Works is striving to identify wasteful energy usage in areas that have been somehow overlooked to date. For example, power usage analyses of the air condition-ers used to maintain room temperature at the level needed to ensure the precision of copper products revealed that power consumption increased after sunset despite falling outside temperatures. To pinpoint why consumption increased, we installed power meters on every system and piece of equipment in the room. These power meters showed that increases in power consumption of air condi-tioners were closely linked with the operation of certain systems. Based on this finding, we concluded that these systems, when running, were generating heat. We contin-ued our investigation and finally found out that heated air was leaking from a drying furnace. Consequently, we implemented corrective measures to prevent the leakage. This led to an annual 120 thousand kWh reduction in the power consumption of the air conditioners. In addition, we managed to reduce the amount of steam used for heating. We promoted similar initiatives for other systems and
equipment focusing on accurately measuring power con-sumption in standby mode and during lunchtime, when operations are temporarily suspended. Additional reduc-tions were achieved through these activities, and the Tsuchiura Works realized a total annual power consump-tion reduction of 570 thousand kWh.
Eliminating Wasteful Power Consumption
and this consumption accounts for about 20% of total power consumption at the Takasago Works. In light of this situation, we have strengthened our daily energy-saving activities. However, as our cleanrooms constantly require a certain amount of electricity, it is really difficult for us to cut electricity use. Our energy-saving efforts to date include thermal energy recycling. More specifically, we recover the waste heat from electric furnaces’ cooling water and use this recovered thermal energy to power air conditioning. This year, Japan is facing a critical issue: it must reduce peak power consumption during summer. Recognizing this occasion as a good opportunity to fur-ther reduce our power consumption, we are strengthen-ing our energy-saving projects by asking related departments for suggestions and advice. For us, ener-gy-saving activities are an important part of our business operations, especially from the perspective of environ-mental impact and cost reductions. Therefore, we are committed to continuing and improving these activities.
VOICE
Hideyuki Fujiwara Production Department,Optical Communication Products Division,Industrial Infrastructure Products Group
I am in charge of formulating construction plans for new facilities, including peripheral systems, for optical fiber production. I am also responsible for the operation and management of these facilities after construction com-pletion. As we operate a number of peripheral systems at our site—such as air conditioners and gas supply systems—we consume a large amount of electricity,
8 a.m. 10 a.m. Noon 2 p.m. 4 p.m. 6 p.m. 8 p.m. 10 p.m. 0 a.m.
8 a.m. 10 a.m. Noon 2 p.m. 4 p.m. 6 p.m. 8 p.m. 10 p.m. 0 a.m.
Facility Operation
Outside Temperature and Air Conditioner Power Consumption
Outside temperature
Air conditionerpower consumption
Unit 2
Stable
Increase
Unit 1
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In FY2011, CO2 emissions from energy use at 20 of the Hitachi Cable Group’s overseas production sites totaled 132,000 tons. The facilities at these production sites boast energy efficiency on par with that of Hitachi Cable facilities in Japan. The CO2 emissions of our overseas production sites declined in FY2010 due to decreased production that reflected the global recession. The production level recovered in FY2011, pushing up emissions to around
the FY2008 level. To further reduce CO2 emissions, each of these production sites is strengthening efforts to real-ize additional energy savings. Under its previous Environmental Action Plan, Hitachi Cable worked to reduce CO2 emissions per unit of net sales at six of these overseas production sites by 5% (compared with the FY2004 level ) in FY2011. We achieved a 55% reduction in FY2011, reflecting the signif-icant surge in copper prices since FY2004.
CO2 Emissions at Overseas Production Sites
150
100
50
0
CO2 Emissions (19 Overseas Production Sites) (1,000 t-CO2)
FY2007
139
2008
132 132
2009
130
2010
109
2011
Note: The following CO2 conversion factors have been used: [Fuel] Fuel Category-Specific Emissions Factors, Law Concerning the
Promotion of the Measures to Cope with Global Warming [Electricity] Emission Factors 2003 of the Survey Report of Estimated GHG Emissions
Intensity in the Power Sector by Country, compiled by the Japan Electrical Manufacturers’ Association
Note: The above data is for the six production sites operated by Overseas Group Companies A with the FY2004 level set as 100.
2007 2008 2009 2010 2011
100
75
50
25
0
CO2 Emissions per Unit of Net Sales (6 Overseas Production Sites) (Index)
FY2004
48 47
100
5360
45
125
(95)Target for FY2011
Hitachi Cable’s Head Office electricity consumption is primarily for lighting, running office appliances and air conditioning units, and heating provided centrally by the building’s management. As part of efforts to save energy, all offices at the Head Office turn off lights during lunchtime, and all lights are turned off at 7:30 p.m. except for those required for certain sections. In addition, employees who leave their desks for more than a certain period of time are required to turn off their computers. By posting a graph showing monthly electricity con-sumption, the Head Office has worked to raise employee awareness of power savings. Through these activities, the Head Office has reduced its power consumption by approximately 25% over the past five years. These activities have taken root among employ-ees, and the Head Office launched new initiatives in 2011 aimed at achieving additional power savings. Specifically, the Head Office has removed a substan-tial number of nonessential lights, avoided excessive air conditioning use, limited the hours for tea machine operation and put vending machines into minimum power mode. In addition to these in-house initiatives, the building that houses the Head Office has sus-
pended the operation of certain elevators. The Head Office expects the cumulative effect of these new power-saving initiatives to result in an additional 20% in power savings.
Energy Savings in Offices
Nonessential corridor lights turned off
Reminder to turn off air conditioning when not needed
Limiting the hours for tea machine operation
Vending machines operating on minimum power mode
Operation of certain elevators suspended
47 | Hitachi Cable, Ltd. CSR Report 2011
As a global warming prevention measure in product transportation, Hitachi Cable has promoted activities aimed at reducing energy use per unit of transportation by 4% (compared with the FY2007 level) in FY2011. The Company met its target, achieving a 6% reduction in FY2011. To improve truck cargo utilization, we implemented various initiatives, such as: (1) reducing the number of regular trips made by individual trucks through the inte-gration of operations; and (2) stacking packages of large, lightweight products using efficiently designed stacking
jigs. In addition, we strove to improve fuel efficiency in truck transportation in cooperation with contract carriers. Also, we accelerated modal shift, starting domestic vessel transportation to Kyushu and railway transportation to Hokkaido. From FY2012 onward, Hitachi Cable will continue its efforts to prevent global warming through efficient prod-uct transportation with the aim of reducing energy use per unit of transportation by 10% (compared with the FY2007 level) in FY2016.
48
50
52
54
56
FY2007 2008 2009 20112010
56
54
52
50
48
Energy Use per Unit of Transportation (Domestic)(kl/million tons-kilometer)
53.653.3
50.8
50.4
54.4
(51.5)Target for FY2011
Hitachi Cable submits annual reports as a Designated Shipper, as set forth under the Energy Saving Law. In the FY2011 annual report, the Company reported that its energy use per unit of transportation was 98.7% of that in FY2010 and that CO2 emissions from transportation totaled 6,910 tons.
※ 日立電線(単独)の排出量です。
10,000
8,000
6,000
2,000
4,000
0
CO2 Emissions from Transportation (Non-Consolidated) (t)
FY2007
9,390
2008
8,840
2009
8,406
2010
6,910
2011
6,910
Global Warming Countermeasures in Product Transportation
Annual Report as Designated Shipper
Loading truck cargo (Hitaka Works)
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Promoting the Recycling of Resources
Hitachi Cable is working to reduce the waste it generates by improving the yield of each production stage, expanding the volume of materials reused and reducing the use of lubricants and cleaning solu-tions. In addition, to reduce the fi nal disposal volume and increase the volume of materials recycled, we stringently sort waste through rigorous waste monitoring activities.
Hitachi Cable promoted efforts to achieve the target of reducing the volume of waste and recyclable waste gen-erated at its domestic production sites by 29% (com-pared with the FY2001 level) in FY2011. In FY2011, the volume of waste and recyclable waste generated at domestic production sites totaled 35,555 tons, down 36% compared with FY2001. With this decrease, we out-performed our target of a 29.0% reduction. In comparison with FY2010, however, the volume of waste and recycla-ble waste generated increased 3.8%, reflecting an increase in production volume. Meanwhile, for the period under review, the Company reduced the fi nal disposal volume to 65 tons, for a fi nal disposal rate (the ratio of the fi nal disposal volume to total waste generation) of 0.2%. In comparison with FY2010, the fi nal disposal volume decreased approximately fi ve tons. This decrease was made possible by our efforts to strengthen appropriate waste sorting and by the promo-tion of the outsourcing of waste treatment operations to third parties. From FY2012, we will replace the amount of CO2 emis-sions with CO2 emissions per unit of net sales as the chief
indicator and will work to achieve the target of a 3.5% reduction in per-unit CO2 emissions compared with the FY2006 level.
0
5
10
15
0
10000
20000
30000
40000
50000
FY2001 2007 2008 2009 20112010
50,000
60,000
40,000
30,000
20,000
10,000
0
Waste Generation and Final Disposal Rate (Domestic) (t)
FY2011 target for waste generated(39,170)
(%)
5
0
109.2
1.1 0.5 0.4 0.20.2
55,172
40,795 41,32937,525
34,258
Volume generated Final disposal rate
35,555
Volume generated Final disposal rate
Total65(t)
Total27,623
(t)
(Unit: 1,000 tons)
Volume ofWaste andRecyclable
Waste35.6
Recycling/Reuse27.6
FinalDisposal0.06
Waste plastic49% (32)
Scrap metal56% (15,453)Waste plastic
19% (5,279) Waste paper21% (14)
Waste paper 5% (1,426)
Woodchips 10% (2,658) Debris 5% (3)
Waste fiber 2% (1)
Waste oil 2% (680)
Sludge 2% (684)Slag 4% (975)
Waste acid 6% (4)
Waste acid 1% (225)
Others17% (11)
Others 1% (213)
Primary Recycling/Reuse17.7
In-House Waste Treatment6.6
Contracted Waste Treatment 11.3
Secondary Recycling/Reuse9.9
Disposal with Treatment 0.06Reduction Waste
Volume7.9
Disposal without Treatment0.0
Waste and Recyclable Waste Processing Flow (Domestic)
Breakdown of Recycling/Reuse Volume by Category
Breakdown of Final Disposal Volume by Category
Reducing Waste Generation and Final Disposal Rate
49 | Hitachi Cable, Ltd. CSR Report 2011
In an effort to advance recycling, the Hitachi Group employs the “3R load” indicator to evaluate the effective-ness of every waste treatment and disposal option. Because the reduction of 3R load directly leads to the improvement of the resource recycling rate, the Hitachi Group is promoting related activities. Specifically, under the 3R load concept, the 3R load calculation formula is structured so that improvements in waste treatment pro-cesses used—namely, final disposal as the most unde-sirable, simple incineration, heat recovery, recycling and reuse as the most desirable—result in a lower 3R load
value. The 3R load value obtained through calculation is then used for comparison with the 3R load value of a ref-erence year. The Hitachi Cable Group uses the same system. Under this system, Hitachi Cable has worked to improve its resource recycling rate by 10% (compared with the FY2006 level) in FY2011. Hitachi Cable’s 3R load value for FY2011 stood at 283 terajoules (TJ). The resource recycling rate showed a substantial 25% improvement, far beyond the Hitachi Cable Group’s target of a 10% improvement under the Environmental Action Plan.
400
200
300
100
0
3R Load (Domestic)(TJ)
FY2006
378
2007
370
2008
331
2009
313
2010 2011
291 283
FY2011 target for 3R load(341)
3R Load Calculation
Volume reused
Volume byTreatment Process Factor Total
Volume recycled
Volume of heatrecovery
Energy amountSet for each type of wasteand treatment process
3R Load
Small
Large
Volume of simpleincineration
Final disposal
× =( )
Increasing the Resource Recycling Rate
Tohoku Rubber, Working to Reduce Its Final Disposal Volume
A Hitachi Cable Group company, Tohoku Rubber Co., Ltd. is headquartered and operates its main plant in the Minato area of Sendai City, Miyagi Prefecture. Tohoku Rubber manufactures such rubber products as sheets, hoses and escalator handrails. In particular, the company boasts an approximately 60% share of the domestic market for escalator handrails. Supporting the leading market share for this product is its proprietary technology to realize handrail strength without adding carbon. In 2003, 84% of the waste and recyclable waste generated through production processes at Tohoku Rubber was sent for final disposal (as landfill). In 2004, Tohoku Rubber started recovering the thermal energy from waste plastics through thermal recycling. In addition, the company strengthened waste sorting. Thanks to these efforts, Tohoku Rubber has maintained its final disposal rate at below 1% since 2007, and, in 2010, it recorded a rate of 0.2%. To reduce the final disposal rate, Tohoku Rubber worked to suppress waste generation in the produc-tion processes. For example, it enhanced the accura-cy of its rubber sheet processing machinery and managed to decrease the width of the edges trimmed off and disposed of from 50 millimeters to 30 millime-ters. Also, the enhanced accuracy of the machinery brought an improvement in production yield. In recog-nition of these activities and achievements, Tohoku Rubber’s plant was certified as one of the Hitachi Group’s Super Eco-Factories in FY2011.
100
50
75
25
0
Final Disposal Rate
20062005FY2004
84.3
2007
63.9
2008 2009 2010 2011
(%)
31.2
4.90.8 0.8 0.8 0.2
Product width Product width 50mm 30mm
Before machineryimprovement
After machineryimprovement
Image of Rubber Sheet Edge Cutting The width of edges trimmed off and disposed of has been reduced from 50 mm to 30mm.
Rubber sheet molding/vulcanizing press
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Chemical Management in Production Activities
The Hitachi Cable Group handles approximately 500 kinds of chemicals in its production activities. The Company con-sistently and accurately monitors the amount of chemicals handled, released and transferred by its production sites and on a Companywide basis. The Company makes use of the database compiled through such monitoring not only in scrutinizing itself, but also in formulating its response to chemical substance-related laws and regulations, which are rapidly being established throughout the world. Moreover, the database is used in activities aimed at reducing the amount of chemicals used by the Company. Through these activities, we are working to ensure that chemical manage-ment is performed appropriately Groupwide, thereby preventing ecosystem destruction and environmental pollution.
The Hitachi Cable Group continues to accurately monitor the amount of chemicals handled, released and trans-ferred by its production sites through the use of an Internet-based chemical substance management system. The total amount of Class I PRTR chemical substanc-es handled by Hitachi Cable in FY2011 was 5,676 tons. The amount released was 98 tons, and the amount transferred was 142 tons. The amount handled showed an increase greater than past annual increases up to FY2010. This increase in the amount handled was pri-marily attributable to an increase in the number of chemi-cal substances regulated under the revised PRTR Law and to the increased use of xylene and cresol in line with increased production. In particular, ferric chloride, which we use in wastewater treatment, has been newly desig-nated as a PRTR substance, and this substance accounted for a large portion of the increase in the amount handled. Meanwhile, the increase in the amount released was largely attributable to an increase in xylene emissions into the atmosphere.
The amount transferred showed a substantial year-on-year decrease in FY2011, reflecting the removal of bisphenol A epoxy resin—included in the waste generat-ed by the Company—from the PRTR substance list.
Amount of PRTR Chemical Substances Released and Transferred in FY2011 (Unit: tons)
Substance Number
Name of Designated Chemical Substance
Amount Released Amount Transferred
Into Air Into Water Into Soil As Sewage As Waste
1 Zinc compound (water-soluble) 0.0 0.0 0.0 0.0 2.031 Antimony and its compounds 0.0 0.0 0.0 0.0 3.937 Bisphenol A 0.0 0.0 0.0 0.0 0.042 2-imidazolidinethione 0.0 0.0 0.0 0.0 0.353 Ethylbenzene 6.0 0.0 0.0 0.0 7.770 Ferric chloride 0.0 0.0 0.0 0.0 0.280 Xylene 28.4 0.0 0.0 0.0 23.1
82 Silver and its water-soluble compounds 0.0 0.0 0.0 0.0 0.0
86 Cresol 1.4 0.0 0.0 0.0 5.7
144Non-organic cyanide compound (excluding complex salt and cyanate)
0.0 0.0 0.0 0.0 0.0
160 3,3’-dichloro-4,4’-diami-nodiphenylmethane 0.0 0.0 0.0 0.0 0.4
213 N,N-dimethylacetamide 0.5 0.0 0.0 0.0 0.2
230N-1,3-dimethylbutyl-N’-phenyl-p-phenylenedi-amine
0.0 0.0 0.0 0.0 0.7
232 N,N-dimethylformamide 8.7 0.0 0.0 0.0 33.9245 Thio uric acid 0.0 0.0 0.0 0.0 0.0
265 Tetrahydromethylphthalic anhydride 0.0 0.0 0.0 0.0 0.0
268 Thiuram 0.0 0.0 0.0 0.0 0.0
272 Copper soluble acid (excluding complex salt) 0.0 0.0 0.0 0.0 0.4
296 1,2,4-trimethylbenzene 0.0 0.0 0.0 0.0 0.0297 1,3,5-trimethyl benzene 0.6 0.0 0.0 0.0 0.1
Substance Number
Name of Designated Chemical Substance
Amount Released Amount Transferred
Into Air Into Water Into Soil As Sewage As Waste
300 Toluene 46.8 0.0 2.2 0.0 6.3304 Lead 0.0 0.0 0.0 0.0 0.3305 Lead compound 0.0 0.0 0.0 0.0 0.9308 Nickel 0.0 0.0 0.0 0.0 1.1309 Nickel compound 0.0 0.0 0.0 0.0 1.6
330 Bis(1-methyl-1-phenylethyl) peroxide 0.0 0.0 0.0 0.0 0.0
332 Arsenic and its non-organic compounds 0.0 0.0 0.0 0.0 11.0
349 Phenol 1.7 0.0 0.0 0.0 18.2354 Phthalic acid Di-n-butyl 0.2 0.0 0.0 0.0 0.8
355 Phthalic acid bis(2-ethyl hexl) 0.0 0.0 0.0 0.0 12.4
374 Hydrogen fl uoride and its water-soluble salt 0.0 0.0 0.0 0.6 3.7
392 N-hexane 1.5 0.0 0.0 0.0 1.8
395 Water-soluble salt of per-oxydisulfuric acid 0.0 0.0 0.0 0.0 0.0
405 Boron compound 0.0 0.0 0.0 0.1 1.0411 Formaldehyde 0.0 0.0 0.0 0.0 0.0413 Phthalic anhydride 0.0 0.0 0.0 0.0 0.0438 Methylnaphthalene 0.0 0.0 0.0 0.0 0.0
448 Methylenebis(4,1-phenylene)=diisocyanate 0.0 0.0 0.0 0.0 0.1
78 other substances 0.3 0.0 0.0 0.0 3.5
Total 96.1 0.0 2.2 0.8 141.3
Note 1: Chemical substances included in “78 other substances” above were handled in amounts of less than one ton during FY2011. Note 2: 2.2 tons of toluene was released into soil due to the tsunami caused by the Great East Japan Earthquake. Note 3: Figures were rounded up to the fi rst decimal place. Accordingly, the sum of these fi gures may not equal the total fi gures.
6,000
4,000
2,000
0 0
Amount of PRTR Law-Regulated Chemicals Handled, Released and Transferred (Domestic) (t)
300
200
100
(t)
FY2007 2008 2009 2010
5,4715,049
5,3654,922
104116
94 88115
156177169
Amount handled Amount released Amount transferred
Amount handled
* Includes chemicals handled in an amount less than 1 ton a year
Amount released/amount transferred
0
2000
4000
6000
0
100
200
3002011
5,676
98
142
Chemicals Emission Control
Note: Includes chemicals handled in an amount less than 1 ton a year
51 | Hitachi Cable, Ltd. CSR Report 2011
As part of efforts to reduce chemical emissions, Hitachi Cable has promoted activities aimed at reducing emis-sions of 41 volatile organic compounds (VOCs) into the air from its domestic production sites by 33% from the FY2001 level. There were 17 VOCs handled by each Hitachi Cable domestic production site in an amount in excess of one ton in FY2011. Air emissions of these VOCs totaled 404 tons, representing a substantial 45% reduction from the FY2001 level. Around FY2001, emissions attributable to processes where toluene was used as a solvent and to processes
where n-decane was used for degreasing accounted for approximately half of the total VOC emissions. In January 2009, we installed VOC absorption collectors for use during these processes, which cut n-decane emissions down to one-third of the previous level. This contributed to the substantial VOC air emissions reduction we achieved in FY2011. From FY2012 onward, Hitachi Cable will use a new indicator for VOC air emission control. Specifi cally, the Company is promoting activities aimed at meeting its new target of keeping the ratio of VOC air emissions to total VOCs handled below 28%.
The Hitachi Cable Group’s storage of waste contaminat-ed with polychlorobiphenyl (PCB) is highly secure. Such PCB waste includes capacitors, stabilizers for fl uorescent and mercury lights, oil and cotton waste. During FY2010, 30 contaminated capacitor units, which had been stored by the Company, were detoxifi ed by the Hokkaido Facility of the Japan Environmental Safety Corporation (JESCO).
During FY2011, the PCB waste held by the Company was not selected for detoxifi cation under JESCO’s PCB Waste Treatment Program. Therefore, there has been no year-on-year change in the amount of PCB waste held by the Company. Each production site of Hitachi Cable will continue to store and manage PCB waste waiting for detoxifi cation in a safe and secure manner.
PCB Waste Stored (Total for the Hitachi Cable Group)
Capacitor (Unit)
Stabilizer (kg)
Oil/Cotton Waste (kg)
620 6,299 478
Note 1: As of March 31, 2011 Note 2: The above data is for PCB waste with high-level contamination. Hitachi Cable
also holds PCB waste with low-level contamination, including transformers, capacitors and oil.
800
600
400
200
0
VOC Air Emissions (Domestic) (t)
FY2001
200
400
600
800
728
2007
660
2008
688
2009
514
2010
386
2011
404
(491)Target for FY2011
VOC Air Emissions by Type
Total404(t)
Isopropyl alcohol 34% (136.8)
n-decane 21% (86.6)
Ethanol 8% (30.5)
Toluene 12% (46.8)
Xylene 7% (28.4)
Methyl ethyl ketone 4% (17.9)
Acetone 4% (15.3)
9 other VOCs 7% (27.7)
Methanol 3% (14.0)
Note: Only the VOCs handled by each domestic production site in an amount in excess of one ton are disclosed.
Reducing VOC Air Emissions
Storage Status of PCB Waste
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Green Procurement
The Hitachi Cable Group strives to procure products and services that have a low environmental bur-den. In the management of chemical substances contained in products, Hitachi Cable is working to reinforce its risk management systems while cooperating with suppliers to promote related initiatives.
The Hitachi Cable Group promotes the green purchasing of stationery and office supplies, such as Eco Mark-certifi ed products, Green Mark products and products compliant with the Green Purchasing Law. Under its Environmental Action Plan for FY2011, we worked to achieve the target of increasing the green procurement rate—the ratio of green procurement to total procure-ment—of stationery and offi ce supplies purchased on the Internet to 90% or more. The green procurement rate for FY2011 was 96%.
FY2007 2008 2009 2010 2011
3,000
2,000
1,000
0
Amount of Stationary and Office Supplies Purchased/Green Procurement Rate
(¥ ten thousand) (%)
60
80
100
71.6
90.996.8 97.5 96.0
720
2,170 2,350 2,2502,570
Amount purchased Green procurement rate
Amount purchased Green procurementrate
0
20
40
60
80
100
0
1000
2000
3000
(90)Green procurement rate
target for FY2011
The Hitachi Cable Group procures raw materials, parts and components, semi-fi nished products, fi nished prod-ucts, packaging materials and various other goods and services from many different suppliers. In its procure-ment activities, Hitachi Cable gives due consideration to a variety of factors, such as appropriate chemical sub-stance use, energy and resource savings, recyclability and ease of disassembly and treatment. By considering such factors, we are working to procure goods and ser-vices that are as eco-friendly as possible. To appropriately manage chemical substances con-tained in its products, the Hitachi Cable Group estab-lished the Committee for Environmental CSR-Compliant Manufacturing to promote eco-friendly manufacturing Groupwide. The Group has also established Hi-PECCS, a unique system for managing the chemical substances contained in its products, to comply with the RoHS Directive*1 and the ELV Directive.*2 Through the adminis-tration of the Hi-PECCS system, Hitachi Cable has built a structure to centrally control 15 Level-A Prohibited Substances and 10 Level-B Controlled Substances that applies to every material and product procured. At the same time, the Company maintains a mechanism to stop shipments of any product that contains an excessive level of any of the applicable chemical substances. In particular, the Group is working to appropriately manage the chemical content of goods it procures in line with the Hitachi Cable Group Green Procurement Guidelines. To this end, the Group is promoting collabor-ative efforts with its suppliers. For example, we are imple-menting an environmental supplier certifi cation system and a green product certifi cation system. In the meantime, European Union’s REACH Regulation*3 is expected to soon be revised to include approximately 1,500 chemical substances under the cat-egory of Substances of Very High Concern (SVHC). Accordingly, it is more important than ever before to pro-mote effi cient and effective information communication
throughout the entire supply chain. To complement our structure for information communication, we have adopt-ed standardized communication tools—namely, “MSDSplus” and “AIS”—provided by the Japan Article Management Promotion-Consortium (JAMP). In another planned revision, the RoHS Directive will be expected to be extended to cover all types of electric and electronic devices and equipment. In line with the revision, certain Hitachi Cable products, including medi-cal equipment, surveillance system control equipment and cables will likely be subject to regulation. To prepare our products for renewed RoHS requirements, we have updated the Hi-PECCS system and bolstered our Companywide chemical substance management frame-work.
*1 Restriction of Hazardous Substance Directive *2 End-of Life Vehicles Directive *3 Registration, Evaluation, Authorization and Restriction of Chemicals
Regulation
Hazardous Chemical Substances
Acquisition of quality-assurance statement
Collection of information (on SVHC)
Compilation of database Certification of green products
Communication of information (on SVHC)
Environment-friendly product certification
Analysis of chemical substances contained in
materials andproducts procured
Risk management Environmental inspections/
simulations
Analysis of chemical substances contained in
finished products
Suppliers
Do not use (on the supplier side)
Do not use (on the Hitachi Cable side) Do not deliver
Customers
Environment-Friendly Design Development/Design
Manufacturing
Green Procurement Purchasing
EnvironmentalQuality Assurance Hi-PECCS
Hi-PECCS System
Management of Chemical Substances Contained in Products
Green Purchasing of Stationery and Offi ce Supplies
53 | Hitachi Cable, Ltd. CSR Report 2011
Environment-Conscious Products
The Hitachi Cable Group is committed to contributing to the development of a sustainable society by providing environment-friendly products and services and, consequently, by assisting the global com-munity in protecting the environment. In line with the Hitachi Group’s proprietary product assessment standards, Hitachi Cable defi nes its products that satisfy the said standards as “Eco-Products” and those that are more sophisticated in terms of environmental performance as “Eco-Products Select” (formerly, “Super Eco-Products”). The Company is working to expand sales of these products.
Our products and services, where applicable, are assessed using eight criteria, including weight reduction, product longevity and energy effi ciency in comparison with existing products. Then, products that satisfy cer-tain set standards are designated as Eco-Products. As of March 31, 2011, the aggregate number of Hitachi Cable products designated as Eco-Products totaled 199, with sales of these products amounting to ¥220.2 billion in FY2011. This sales fi gure accounted for 53% of the con-solidated net sales of the Hitachi Cable Group for the period. Furthermore, among Eco-Products, those prod-ucts and services having especially high environmental effi ciency—an index refl ecting reductions in greenhouse gas emissions, consumption of resources and increases in product and service values—are designated as Super Eco-Products. During FY2011, three Hitachi Cable prod-ucts were designated as Super Eco-Products, bringing the aggregate total to 19. In FY2012, Hitachi Cable replaced the Super Eco-Products category with the “Eco-Products Select” cate-gory to accelerate its development and provision of products with even greater environmental performance than before. Products designated as Eco-Products Select must satisfy one of the following four requirements.
1. Having a global warming prevention or resource factor of 10 or more (Reference year was changed from FY2001 to FY2006, and the rating of functions became more stringent.)
2. Being an industry leader in terms of environmental performance
3. Being award-winning or publicly certifi ed 4. Achieving a 50% or more CO2 emission reduction
compared with equivalent products in FY2006
Also, the Hitachi Cable Group launched a new fi ve-year plan in FY2012. Under this new plan, we have set the following FY2016 targets and will promote environ-
Increasing Eco-Products
The Hitachi Cable Group develops, designs, manufac-tures and provides environment-friendly products and services. Through these activities, we aim to help the global community protect the environment and establish a sustainable society. In order to realize a society that sustainably develops in harmony with the environment, we must reduce the environmental burden of our products and services and, at the same time, make more effi cient and effective use of limited resources. To this end, we must incorporate environmental considerations into the design and devel-opment of our products and services. To enable such design and development processes, the Group has
adopted the Assessment for Design for Environment (Assessment for DfE) scheme, which is unique to the Hitachi Group. Assessment for DfE allows us to evaluate the environmental impact of our products and services throughout their entire life cycles, covering such stages as raw materials, manufacture, transport, use, disposal and reuse. The results of these evaluations are utilized in the design and development of products with even lower environmental burdens. Based on such life cycle assess-ment (LCA), the Group plans to start a project in FY2012 to calculate CO2 emissions associated with certain prod-ucts currently under development.
Environment-Friendly Design
Eco-Products Select
Eco-Products
Eco-Products Select and Eco-Products
Weight reduction
Product longevity
Resourcerecycling
Ease of disassembly
Previous model
New model (1st generation)
New model (2nd generation)
Environmentalconservation
Energy efficiency
Informationdisclosure
Packaging materials
Example of Assessment for DfE
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Hitachi Group booth at Eco Products 2010
Participating in Exhibitions
To communicate its environmental initiatives, the Hitachi Cable Group displays many of its environment-friendly products, including those with the Eco-Product designa-tion, at various exhibitions.
wires are used to connect these solar cells and serve as a conductor to efficiently collect the elec-tricity generated. We have improved NoWarp’s thermal stress resistance by reforming highly con-ductive copper materials to achieve greater flexibili-ty. Such a feature helps minimize cell warping,
which often occurs when other conductors are used to connect the solar cells. Consequently, NoWarp prevents cell deformation and breakage. This enables the cre-ation of thinner solar cells, which, in turn, contributes to a reduction in the amount of silicon used. Also, Hitachi Cable offers an environment-friendly NoWarp PV wire that uses lead-free soldering, and this wire is compliant with regulations under the RoHS Directive.
* NoWarp is a registered trademark of Hitachi Cable, Ltd. in Japan.
A source of renewable energy, photovoltaic (PV) power generation contributes to the reduction of greenhouse gases (GHGs), and expectations are growing for PV power generation’s use as a means to create clean energy that has a significant potential to help prevent global warming. Accordingly, the use of PV power gen-eration has spread to wide-ranging fields, including for residences and public facilities. The solar panels used for PV power generation are composed of interconnecting modules consisting of thin, silicon solar cells. Hitachi Cable’s NoWarp* PV
NoWarp PV wires
0
20
40
60
80
100
Eco-Products sales ratio = Sales of Eco-Products
Consolidated net sales× 100
2006 2007 2008 2009 2010 2011
200
150
100
50
0
Eco-Products Sales and Eco-Products Sales Ratio (¥ billion)
80
60
40
20
(%)
FY2005
146.7
197.6
81.797.8
187.2177.5
202.2
Eco-Products sales Eco-Products sales ratio
Eco-Products sales Eco-Productssales ratio
21
38
4853
2327
35 (50)FY2011 targetfor sales ratio
Photovoltaic (PV) panels
NoWarp PV Wires Contributing to Environmental Conservation
Exhibitions Where Hitachi Cable Products Have Been Presented
Exhibition Name (Location) Period
Automotive Engineering Exposition 2010 (Yokohama) May 19 to 21, 2010
Electrical Construction Equipment and Materials Fair (ECEMF) 2010 (Osaka) May 26 to 28, 2010
INTEROP TOKYO 2010 (Makuhari) June 9 to 11, 2010
Tsukuba Forum 2010 (Tsukuba) October 20 to 21, 2010
Eco Products 2010 (Tokyo) December 9 to 11, 2010
mental product design and thereby accelerate the provi-sion of our environment-friendly products to achieve these targets.
FY2016 Targets •AchievearatioofEco-Productssalestoconsolidat-
ed net sales of 65% •Have three or more new products designated as
Eco-Products Select by FY2016 •CompleteCO2 emission assessments for more than
20% of all products designated as Eco-Products
55 | Hitachi Cable, Ltd. CSR Report 2011
Site Data
Environmental burden data (by works) of the Hitachi Cable Group are as follows.
CO2 Emissions/Waste Data (April 2010 – March 2011)
Domestic Sites
Company Name LocationCO2
Emissions (t)
Waste/Reusable Resources
Volume Generated (t)
Recycled Volume (t)
Final Disposal Volume (t)
Final Disposal Rate (%)
Hitachi Cable, Ltd. Densen Works 3-1-1 Sukekawa-cho, Hitachi City, Ibaraki Prefecture
21,250 (24,517)
1,694 1,177 3.8 0.2
Hitaka Works 5-1-1 Hitaka-cho, Hitachi City, Ibaraki Prefecture
30,900 (35,235)
10,591 8,936 22.8 0.2 Takasago Works 880 Sunazawa-cho, Hitachi City, Ibaraki Prefecture
34,624 (40,101)
Minato Works 4-5862-2 Kuji-cho, Hitachi City, Ibaraki Prefecture
771 (911)
Toyoura Works 4-10-1 Kawajiri-cho, Hitachi City, Ibaraki Prefecture
47,890 (52,996)
7,250 6,764 0.9 0.01
Tsuchiura Works 3550 Kidamari-cho, Tsuchiura City, Ibaraki Prefecture
65,374 (72,808)
7,511 2,574 2.8 0.04
Hitachi Cable MEC-Tech, Ltd.
Equipment Works4-12-1 Hitaka-cho, Hitachi City, Ibaraki Prefecture
847 (978)
228 147 0.0 0
Hitachi Cable Logi-Tech, Ltd.
Hitaka Offi ce5-3-3 Hitaka-cho, Hitachi City, Ibaraki Prefecture
129 (147)
1,802 1,795 0.7 0.04
Tokai Offi ce 150 Terunuma, Tokai Village, Naka County, Ibaraki Prefecture
377 (415)
Hitachi Alloy, Ltd. Kisai Works 254-2 Uchitagaya, Kasu City, Saitama Prefecture
9,326 (10,579)
870 756 4.5 0.5
Tonichi Kyosan Cable, Ltd. Ishioka Offi ce
1-1 Aragane, Ishioka City, Ibaraki Prefecture
8,971 (10,461)
3,774 3,673 0 0
Tohoku Rubber Co., Ltd.
Headquarters Plant1-1-12 Minato, Miyagino Ward, Sendai City, Miyagi Prefecture
3,362 (4,122)
479 472 0.9 0.2
Hitachi Cable Precision Co., Ltd
Yonezawa Works901 Hosen-machi, Yonezawa City, Yamagata Prefecture
1,456 (2,110)
1,357 1,328 28.5 2.1
Hitachi Cable Film Device, Ltd. 545 Ichouhata, Chuo City, Yamanashi Prefecture
12,173 (13,902)
1,802 715 0.0 0
Note 1: The following CO2 conversion factors have been used: [Fuel] Fuel Category-Specifi c emission Factors, Law Concerning the Promotion of the Measures to Cope with Global Warming [Electricity] Adjusted CO2 Emission Factor for Each Power Producer, notifi cation by the Ministry of the Environment, for FY2010Note 2: Debris and scraps generated from the Great East Japan Earthquake are not included in the total waste volume generated.
Overseas Sites
Company Name LocationCO2
Emissions (t)
Waste/Reusable Resources
Volume Generated (t)
Recycled Volume (t)
Final Disposal Volume (t)
Hitachi Cable (Johor) Sdn. Bhd. Johor Bahru, Malaysia 15,132 646 - -
Shanghai Hitachi Cable Co., Ltd. Shanghai, China 28,287 1,868 1,663 182
Hitachi Cable (Singapore) Pte. Ltd. Singapore 13,620 508 363 -
PHCP, INC. Dasmarinas, the Philippines 4,890 1,086 735 115
Thai Hitachi Enamel Wire Co., Ltd. Chachoengsao, Thailand 24,443 494 20 -
Hitachi Cable (Suzhou) Co., Ltd., Densen Works
Suzhou, China 11,406 451 406 45
Note 1: Data for six major overseas production sitesNote 2: The following CO2 conversion factors have been used: [Fuel] Fuel Category-Specifi c Emission Factors, Law Concerning the Promotion of the Measures to Cope with Global Warming [Electricity] Emission factors 2003 of the Survey Report of Estimated GHG Emissions Intensity in the Power Sector by Country, compiled by the Japan
Electrical Manufacturers’ Association
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Densen Works
Air Facility name Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
Boiler NOx ppm 150 60 26
Water Quality
Drainage Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
River
Cyanogen mg/ℓ 1 0.5 0.1Mercury mg/ℓ 0.005 0.0025 0.0008Fluorine mg/ℓ 8 4 1.3
Ammonia mg/ℓ 100 50 1.6PH 5.8〜8.6 6.0〜8.4 7.0〜8.4
BOD mg/ℓ 15※1 12.5 7SS mg/ℓ 25※1 12.5 11Oil mg/ℓ 5 2.5 ND
Phenol mg/ℓ 0.5※1 0.25 0.1Copper mg/ℓ 3 1.5 0.3
*1 Local regulation value
Hitaka Works
Air
Facility name Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
BoilerMetal Melting Furnace
NOx ppm 150 60〜135 80
Dust g/m3N0.10.2
0.050.1
<0.01<0.01
Lead mg/m3N 10 0.8 0.04
Water Quality
Drainage Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
River
Lead mg/ℓ 0.1 0.08 0.028Ammonia mg/ℓ 100 80 1.5
PH 5.8〜8.6 6.0〜8.4 7.2〜8.1BOD mg/ℓ 25※2 20 7SS mg/ℓ 40※2 30 4Oil mg/ℓ 5 4 0
Zinc mg/ℓ 2 1.8 0.09*2 Local regulation value
Takasago Works
Air
Facility name Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
BoilerHot-and-Chilled Water
GeneratorHydrogen Generator
NOx ppm180150
106.3〜17560〜99
11037
Dust g/m3N 0.10〜0.30 0.01〜0.22 0.02
Toyoura Works
Air
Facility name Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
BoilerMetal Melting Furnace
NOx ppm 180〜260180
70〜13450〜150
7536
Dust g/m3N 0.30.2
0.10.05
0.010.021
Water Quality
Drainage Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
River
Ammonia mg/ℓ 100 80 0.6PH 5.8〜8.6 6.0〜8.4 7.2〜8.2
BOD mg/ℓ 25※3 20 2.5SS mg/ℓ 40※3 30 6.3Oil mg/ℓ 5 4 <1
Phenol mg/ℓ 1※3 0.8 0.01Copper mg/ℓ 3 2 0.14
Zinc mg/ℓ 2 1.8 0.07Meltable Iron mg/ℓ 10 8 0.11
*3 Local regulation value
Air and Water Quality Data (April 2010 – March 2011)
57 | Hitachi Cable, Ltd. CSR Report 2011
Tsuchiura Works
Air
Facility name Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
Metal Heating FurnaceMetal Melting Furnace
NOx ppm 180 144 32Dust g/m3N 0.2 0.16 0.144
Water Quality
Drainage Item UnitLocal Regulation
and Regional Agreement Value
Voluntary Control Value
Observed Value (Maximum)
River
Ammonia mg/ℓ 100 80 0.62PH 6.0〜8.6 6.0〜8.4 7.4〜8.2
BOD mg/ℓ 10 8 4.3SS mg/ℓ 15 12 3.6Oil mg/ℓ 3 2.4 0.9
Copper mg/ℓ 1 0.8 0.15Zinc mg/ℓ 1 0.8 0.04
Meltable Iron mg/ℓ 1 0.8 0.04Meltable
Manganese mg/ℓ 1 0.8 0.01
Nitrogen mg/ℓ 8 6.4 1.4Phosphorus mg/ℓ 0.5 0.4 0.22
Hitachi Alloy, Ltd. Kisai Works
Air
Facility name Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
Metal Heating FurnaceMetal Melting Furnace
NOx ppm 180 144 46
Dust g/m3N0.250.1
0.160.08
<0.01
Water Quality
Drainage Item Unit Local Regulation Value
Voluntary Control Value
Observed Value (Maximum)
River
PH 5.8〜8.6 ※4 6.0〜8.4 7.4〜8.2BOD mg/ℓ 25 20 9.4SS mg/ℓ 60 48 20Oil mg/ℓ 5 ※4 4 <1
Zinc mg/ℓ 2 ※4 1.6 0.27Nitrogen mg/ℓ 120 ※4 96 1.9
Phosphorus mg/ℓ 16 ※4 12.8 0.50
*4 Same as the regulation value set by the Japanese government
Tonichi Kyosan Cable, Ltd. Ishioka O
ffice
Air
Facility name Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
BoilerNOx ppm 260 260 68Dust g/m3N 0.5 0.5 0.002
Water Quality
Drainage Item Unit Local Regulation Value
Voluntary Control Value
Observed Value (Maximum)
River
BOD mg/ℓ 25 22 1.3SS mg/ℓ 40 36 2.8
Nitrogen mg/ℓ 60 54 5.4Phosphorus mg/ℓ 8 7 0.4
Tohoku Rubber Co., Ltd. Headquarters Plant
Air
Facility name Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
BoilerHeat Medium Boiler
NOx ppm130150
130150
4745
Dust g/m3N0.100.15
0.100.15
0.020.01
Water Quality
Drainage Item Unit Regional Agreement Value
Voluntary Control Value
Observed Value (Maximum)
Ocean
PH 5.8〜8.6 6.0〜8.4 6.3〜7.5COD mg/ℓ 20 18 17SS mg/ℓ 20 18 12Oil mg/ℓ 3 2.8 2.7
Zinc mg/ℓ 2 ※5 — 0.5
*5 The regulation value set by the Japanese government presented due to the absence of a local regulation value
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Hitachi Cable Film Device, Ltd.
Air
Facility name Item Unit Legal Limit Voluntary Control Value
Observed Value (Maximum)
BoilerNOx ppm 150 120 73Dust g/m3N 0.1 0.08 0.009
Water Quality
Drainage Item Unit Local Regulation Value
Voluntary Control Value
Observed Value (Maximum)
River
Lead mg/ℓ 0.1 ※6 0.05 0.05Arsenic mg/ℓ 0.05 0.01 0.004Boron mg/ℓ 10 ※6 1 0.39
Fluorine mg/ℓ 1 0.7 0.5Ammonia mg/ℓ 100 ※6 30 10
PH 5.8〜8.6 ※6 5.8〜8.6 6.6〜8.2BOD mg/ℓ 30 20 7SS mg/ℓ 50 30 2.3Oil mg/ℓ 5 3 2
Phenol mg/ℓ 1 0.7 0.02Copper mg/ℓ 1 0.7 0.08
Zinc mg/ℓ 1 0.7 0.04Meltable Iron mg/ℓ 1 0.7 0.19
Meltable Manganese mg/ℓ 1 0.7 0.05
Chrome mg/ℓ 0.5 0.3 0.02
*6 Same as the regulation value set by the Japanese government
Acquisition of ISO14001 Certifications (as of March 2011)
Domestic Subsidiaries
Company Month and Yearof Acquisition
Tonichi Kyosan Cable, Ltd. 2000.1
Hitachi Alloy, Ltd. Kisai Works 2002.11
Hitachi Wire & Rod Ltd. 1997.3 ※1
Hitachi Cable Precision Co., Ltd.Yonezawa Works 2000.11
Hitachi Works 1997.3 ※2
Hitachi Cable Fine Tech, Ltd. 1997.3 ※1
Hitachi Cable Logi-Tech, Ltd. 1997.3 ※1
Hitachi Cable Networks, Ltd. 1997.3 ※1
Hitachi Cable MEC-Tech, Ltd. 1997.3 ※1
Hitachi Magnet Wire Corp. 1997.3 ※1
Tohoku Rubber Co., Ltd. 2003.3
Hitachi Cable Rubber Technology Co., Ltd. 2005.6
Hitachi Densen Shoji, Ltd. 2002.3
Hitachi Cable Trading Ltd. 2005.1
※1 Same certification as that of Hitaka Works, Hitachi Cable, Ltd.※2 Same certification as that of Densen Works, Hitachi Cable, Ltd.Note: Hitachi Cable Film Device, Ltd. no longer renews its ISO14001
certification as it discontinued production activities in June 2011.
Overseas Subsidiaries
Company Month and Yearof Acquisition
Shanghai Hitachi Cable Co., Ltd. 2005.5
Hitachi Cable (Suzhou) Co., Ltd.Wire and Cable Plant 2007.9
Assembly Plant 2005.3
Hitachi Cable (Johor) Sdn. Bhd. 2002.5
Giga Epitaxy Technology Corporation 2003.2
Hitachi Cable Automotive Products USA, Inc. 2002.2
Hitachi Cable (Singapore) Pte. Ltd. 1998.9
Suzhou Hitachi Cable Precision Co., Ltd. 2006.10
Thai Hitachi Enamel Wire Co., Ltd. 2005.12
Hitachi Cable Philippines, Inc. 2001.12
PHCP, Inc. 2004.11
Shenzhen Hitachi Cable Co., Ltd. 2008.9
Hitachi Cable UK, Ltd. 2007.10
Hitachi Cable PS Techno (Malaysia) Sdn. Bhd. 2005.6
Hitachi Cable, Ltd.
Site Month and Year of Acquisition
Densen Works 1997.3
Hitaka Works (including Takasago Works, Toyoura Works, Minato Works, J-Power Systems Corp. and Advanced Cable Systems Corp.)
1997.3
Tsuchiura Works 1999.3
Corporate Social Responsibility Report
2011
Akihabara UDX, 4-14-1, Sotokanda, Chiyoda-ku, Tokyo 101-8971, JAPAN
TEL: +81-3-5256-5454 FAX: +81-3-5256-3240http: //www.hitachi-cable.com/
©Hitachi Cable, Ltd. 2011 All Rights Reserved.
Hitachi C
able, Ltd. Corporate S
ocial Responsibility R
eport 2011