Sustainability Report 2009

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Amelia Hubbard
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1 Sustainability Report 2009

2 Contents Group Profile 6 Hitachi Chemical Group s Business Operations and CSR 9 To All Stakeholders 11 Report on Violation of the Antimonopoly Act Regarding Sale of Cross-linked Foamed Polyethylene Sheets 14 Results and Plan of the Hitachi Chemical Group s CSR Activities 16 CSR Management 21 Fulfilling our Social Responsibilities Through Business Responsibility to Customers and Suppliers Pursuing customer satisfaction 24 Pursuing quality in the manufacturing process 24 Quick response and prevention of product-related accidents 25 Providing a stable supply of products 25 Control and information disclosure of chemical substances 25 Building and maintaining fair relationships with suppliers 26 Strengthening partnerships with suppliers 26 Close-up: Unwavering Commitment to Fair and Clean Purchasing Activities 27 Creating a Vibrant, Safe and Healthy Working Environment Responsibility to Employees Respect for human rights 29 Promotion and support of diverse human resources 29 Enhancing employee capabilities and career development 31 Employee survey 31 Prevention of harassment 31 Occupational safety and health 32 Close-up: Efforts in Mental Healthcare 35 2 Hitachi Chemical Group Sustainability Report 2009

3 Contributing to the Realization of a Truly Prosperous Society In the Community Promotion of social contribution 37 Hitachi Chemical Group s major social contribution activities 37 Communication with local communities 40 Realizing a Sustainable Society For the Global Environment Promoting environmental management 41 Overview of environmental impact (material balance) 44 Supply of green products 45 Appropriate control of hazardous chemical substances 46 Preventing pollution from chemical substances 46 Preventing global warming 48 Reducing waste generation and waste to landfill 50 Minimizing environmental impact in physical distribution 51 Caring for the environment in offices 52 Close-Up: Promoting Carbon Management Strategy 54 Comments from a Stakeholder 56 3 Hitachi Chemical Group Sustainability Report 2009

4 Editorial Policy We report, in an easy to understand way, the paramount issues for CSR in relation to stakeholders and the Group s core operations The Hitachi Chemical Group annually publishes a Sustainability Report, which summarizes its corporate social responsibility activities with a focus on paramount issues of CSR in relation to the Group s core operations and all of our stakeholders. In July 2008, Hitachi Chemical was required to undergo an onsite inspection by the Japan Fair Trade Commission based on allegations it had violated the Antimonopoly Act regarding the sale of cross-linked, foamed polyethylene sheets, and in March 2009 the Company received a cease-and-desist order and was required to pay a surcharge. Therefore, we have set aside a few pages in this report to review the chronology of the incident along with measures for preventing a recurrence. As in the 2008 report, we have provided Close Up feature articles in our performance review and we have sought to present activities based on the Hitachi Chemical Group s CSR Policy in a way that is easy to understand. The Hitachi Chemical Group intends, through this report, to encourage communication with stakeholders and further enhance its CSR activities. Period covered In principle, this report covers fiscal 2008, from April 1, 2008, to March 31, 2009, and it also includes reports on activities prior to and beyond fiscal Organizations covered This report basically covers Hitachi Chemical Co., Ltd. and its 53 consolidated subsidiaries. Environmental impact data were collected from the companies listed below. Exceptions are clearly identified. Subject notation The diagrams and statements in this report contain the terms Hitachi Chemical, the Company, and non-consolidated, which only refer to Hitachi Chemical Co., Ltd., whereas the Hitachi Chemical Group, the Group, and consolidated refer to the Hitachi Chemical Group. Environmental impact data collected from the following business entities 15 business entities, representing 32 business sites: Hitachi Chemical Co., Ltd.; Shin-Kobe Electric Machinery Co., Ltd.; Hitachi Powdered Metals Co., Ltd.; Hitachi AIC Inc.; Japan Brake Industrial Co., Ltd.; Namie Japan Brake Industrial Co., Ltd.; Hitachi Chemical Automotive Products Co., Ltd.; Hitachi Kasei Polymer Co., Ltd.; Hitachi Chemical Filtec Co., Ltd.; Hitachi Chemical Industrial Materials Co., Ltd.; Hitachi Chemical Coated Sand Co., Ltd.; Hitachi Chemical (Singapore) Pte. Ltd.; Hitachi Chemical (Johor) Sdn. Bhd.; Hitachi Chemical Co. (Taiwan) Ltd.; Hitachi Chemical (Dongguan) Co., Ltd. Date of publication September 2009 (Previous report published July 2008; next report scheduled to be published July 2010) Guidelines used as reference GRI (Global Reporting Initiative) G3 Sustainability Reporting Guidelines Environmental Reporting Guidelines (2007 version), Ministry of the Environment of Japan Environmental Accounting Guidelines (2005 version), Ministry of the Environment of Japan 4 Hitachi Chemical Group Sustainability Report 2009

Forward-looking statements This report includes predictions for the future based on the plans and prospects as of the date of issue, in addition to the past and present facts about the Hitachi

5 Forward-looking statements This report includes predictions for the future based on the plans and prospects as of the date of issue, in addition to the past and present facts about the Hitachi Chemical Group. The predictions are the results of assumptions or judgments based on the information available when this report was prepared. Therefore, the results of future business activities or phenomena that may occur in the future may be different from the predictions if any condition changes. We disclose CSR-related information on our website Our website has the latest CSR-related information, topics, policies and rules that are not covered in this printed report, as well as calculated data for eco-efficiency, eco-factors and a report on implementation of the Green Curtain Project. Back issues of our CSR reports are also available on the website. We will work on timely updates and enhancements to our website, keeping it in line with the printed report. Please refer to our website to complement the information in this report. URL 5 Hitachi Chemical Group Sustainability Report 2009

Results and Plan of the Hitachi Chemical Group s CSR Activities The Entire Group is Systematically Pursuing Even Higher Levels of CSR Activities

Results and Plan of the Hitachi Chemical Group s CSR Activities The Entire Group is Systematically Pursuing Even Higher Levels of CSR Activities Based on the Group CSR Policy, the entire Hitachi Chemical