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

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1 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 Group develops action plans every year and utilizes the PDCA (Plan-Do-Check-Action) cycle to improve overall CSR performance. CSR Policy of the Hitachi Chemical Group 16 Hitachi Chemical Group Sustainability Report 2009

2 CSR Action Plans and Results Fiscal 2008 Top Priority Theme Achieving progress in eliminating serious incidents Priority Theme 1 Environmental conservation actions Formulating and implementing a carbon management strategy Priority Theme 2 Incorporating CSR into the supply chain Priority Theme 3 Cultivating a corporate culture which increases motivation 17 Hitachi Chemical Group Sustainability Report 2009

3 CSR Action Plans for Fiscal 2009 (Priority Themes only) 18 Hitachi Chemical Group Sustainability Report 2009

4 To contribute to the sustainable development of society The Hitachi Chemical Group s CSR Action Plans for fiscal 2009 Shigeru Hayashida Executive Officer General Manager, CSR Office The Hitachi Chemical Group is committed to maintaining the highest standards of ethics and business integrity in its management through actions founded on sincerity and discipline. And we are engaged in various CSR activities in the framework of the Hitachi Chemical Group CSR Medium-term Roadmap, developed to enable us to be a corporate group that responds to the trust and expectations of our stakeholders. Fiscal 2009 represents the midpoint of the Harvesting Stage of the Roadmap, and is an important year for further expanding the strategic CSR activities we have been pursuing since fiscal Strategic CSR efforts involve addressing social problems, not simply carrying out charitable activities, but through actions closely related to our business operations that fully deploy our technologies, human resources and social networks. In this way, we contribute to solutions for social issues while ensuring the sustainable development of our enterprise. Based on this philosophy and principles, we will pursue the following six themes in fiscal 2009, which include safety activities that constitute the foundation of manufacturing, actions for balancing corporate activities and global environmental protection, and measures for creating a vibrant working environment for our employees. Eliminating lost-workday injuries (ultimately to zero) During fiscal 2008, a total of 32 accidents, including seven lost-workday injuries, occurred on a group-wide basis. These figures, however, were less than half of the 66 accidents (including 16 lost-workday accidents) that occurred during the previous fiscal year, and therefore represent a considerable improvement. We believe this was the result of our intention to obtain OHSAS certification at all our business sites, as well as the uncompromising effort on the part of each and every employee to undertake safety and health activities under the philosophy of this system. In fiscal 2009, we will extend these activities to Group companies toward our goal of creating a safe and comfortable working environment. Formulating and implementing a carbon management strategy Although we are on course to achieving the Hitachi Chemical Group s reduction target for CO2 emissions under the Kyoto Protocol s goal of reducing emissions to 93% of fiscal 1990 levels by fiscal 2010, post-kyoto Protocol requirements are expected to be even more stringent. We will therefore develop new green products and prepare a new system for pursuing reduction with the management mindset that CO2 emissions equal cost. 19 Hitachi Chemical Group Sustainability Report 2009

5 Incorporating CSR into the supply chain As regulations become more restrictive and the Hitachi Chemical Group s operations become increasingly global in nature, we will seek to share information throughout the supply chain to reduce the risk of product-related accidents as much as possible. We will also conduct negotiations to gain mutual understanding, approval and cooperation regarding the CSR requirements of the Hitachi Chemical Group with customers and suppliers. And we will strive to establish a system to guarantee stable production for our customers through contracts with suppliers that guarantee constant supply of raw materials. Implementing thorough compliance In March 2009, Hitachi Chemical Co., Ltd. received a cease-and-desist order from the Japan Fair Trade Commission requiring the payment of a surcharge for violating the Antimonopoly Act regarding the sale of cross-linked foamed polyethylene sheets. We offer our sincerest apologies for having betrayed the trust of our stakeholders, despite our commitment to maintaining the highest standards of ethics and business integrity in management. As explained elsewhere in this report, we intend to make an uncompromising effort to prevent a recurrence through measures such as reinforcing training on compliance concerning the Antimonopoly Act (see p ). Cultivating a corporate culture which increases motivation We intend to establish a vibrant working environment for our employees. To actively develop our operations in the global market, we are planning to create a working environment in which human resources in Japan and around the world can demonstrate their abilities. We will not only develop working environments in the physical sense; we also plan to promote diversity with the concept of recognizing, accepting and utilizing individual uniqueness to nurture a motivating corporate culture that values communication. Responding to risk and crisis In response to the sharp rise of reports since 2008 about the new influenza of avian origin, Hitachi Chemical has proceeded to develop a basic policy against this highly virulent virus. With respect to the outbreak of H1N1-type influenza in April 2009, although the World Health Organization has declared a pandemic (epidemic on a global scale), the disease is considered to be of medium-level virulence, and we have responded accordingly by adjusting plans under our basic policy. Japan is considered to have entered the season in which there is potential for an influenza epidemic outbreak, with expectations for beyond September of second- and third-wave attacks. We are taking countermeasures against these risks. Through the steady implementation of these initiatives, the Hitachi Chemical Group intends to achieve sustainable development for our operations and contribute to the sustainable development of society as well. 20 Hitachi Chemical Group Sustainability Report 2009