CSR Report 2011

4-12-7, Higashishinagawa, Shinagawa-ku, Tokyo 140-0002, JapanPhone: +81-3-5780-2111http://www.hitachi-solutions.co.jp/

Inquiries:CSR Promotion Department Corporate Communications Division Phone: +81-3-5780-6450Fax: +81-3-5780-6455

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Hitachi Solutions: Vision

Pathways to new frontiers; Unique StrengthsHitachi Solutions will develop new solutions and business models by working together

with our customers; through businesses that deliver social innovation and that are based

on dependable technologies. We will leverage all our strengths, from global ideas that

transcend national and cultural boundaries, and our ability to execute solutions together

with the overall strength of the Hitachi Group—opening a door to a new era.

Scope of the Report

n Organizations covered:Hitachi Solutions, Ltd. (Affiliated companies included in part)

n Period covered:April 1, 2010 to March 31, 2011

(Activities conducted before or after this period may be included in part)

n Reference guidelines:Environmental Reporting Guidelines (fiscal year 2007 version)

(Ministry of the Environment)

Sustainability Reporting Guidelines 2006 (Global Reporting Initiative)

ISO 26000 (international guidance on social responsibility)

n Publication schedule:November 2011 (the next issue is scheduled for publication in November 2012)

n Department responsible for publication:CSR Promotion Department

Corporate Communications Division

Hitachi Solutions, Ltd.

* Company names used before the corporate merger are abbreviated in the following way: Hitachi Software Engineering Co., Ltd.: Hitachi Soft Hitachi Systems & Services, Ltd.: Hitachi Systems

* GeoPDF is a trademark or registered trademark of TerraGo Technologies, Inc. in the US and other countries.

* StarBoard is a registered trademark of Hitachi Solutions.

* Other company names and product names are the registered trademarks and/or trademarks of the respective companies.

C O N T E N T S

Hitachi Solutions: Corporate Principle P04

Hitachi Solutions: Company Profile P06

Top Message P08

We contribute to the establishment of a sustainable society by providing solutions to various social issues

Stakeholder Discussion P10

What we can do to address social issues

Our Response to the Great Earthquake andTsunami of March 2011 P15

Hitachi Solutions CSR Summary 2010 P16

Various issues facing society × Hitachi Solutions P22No. 1 Education × Interactive whiteboards can support equal

opportunity for education and bring peace to everyone

No. 2 Climate Change × Using IT systems to launch green manufacturing

No. 3 Safety and Security × Information technologies make important information more accessible and meaningful

No. 4 Diversity × Diverse people and values make the company strong

Environmental Report P32

Third-party Review P34

CSR Communication P35

* Hitachi Solutions’ StarBoard® is an interactive whiteboard on which a computer screen display can be projected. Users can also write on the board and operate the computer by touching it.

Hitachi Solutions: Corporate Principleppppttaacc SSoo uutt oo ss CCoo oo aattee cc eeii nn :: rr rr PPrriinn ii llii llHHii hhii ii ii :: ii ii

For Hitachi Solutions, CSR means exactly what is stated in our Corporate Principle. CSR is the promises we make to our customers and local communities. As a solution provider that supports information infrastructure, we recognize that we have a critical role to play in the building of a sustainable society. As a member of the Hitachi Group, we are determined to achieve our own sustainable growth while fully leveraging our technologies and advanced solutions to contribute to the development of a sustainable world.

The Hitachi Spirit expresses the concepts upon which Hitachi, Ltd. was founded. Upholding these same principles, namely, “Harmony,” “Sincerity” and a “Pioneering Spirit,” we contribute to society through the development of superior, original technology and products. “Harmony” refers to our commitment to solve problems together through cooperative and frank discussion. “Sincerity” stands for the straightforward and honest attitude that characterizes every aspect of our work. “Pioneering Spirit” reminds us to keep trying even in the most difficult situations. These concepts, passed down through the years, now form the basis of the Hitachi Group’s CSR.

For more than 40 years, since the time of mainframe computers, Hitachi Solutions has been accumulating dependable and superior technologies encompassing everything from basic and middle software to infrastructure development. We have ample experience in building network systems for banking conglomerates, governmental organizations and major manufacturers. In addition, we have the management capabilities to take on large-scale projects. With this integrated expertise, the Hitachi Group can offer optimal “one-stop services” for the whole IT life cycle: from proposal and systems architecture to operation and maintenance of information systems.

To ensure Japanese solutions continue to be sought after by the rest of the world, Hitachi Solutions invests more money in R&D than any other player in the industry. In the field of information security, we have developed and delivered an especially large number of advanced solutions and were one of the first to start working on cloud computing. Our robust alliance with vendors both within and outside Japan enables us to be an early adopter of the newest technologies and products. Combine all this with our original products developed by our own highly skilled workforce and Hitachi Solutions is accelerating the development and implementation of social infrastructure and business models that will open the door to the next era.

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Hitachi Solutions Europe Ltd. (UK)

Cambridge Hitachisoft Educational Solutions Plc. (UK)

Hitachi Solutions Europe S.A.S. (France)

Fukuoka-Tenjin Solution Center

Kyushu Branch

Kanazawa Solution Center

Hirosaki Solution Center

Hokkaido Branch

Chubu Area Operations

Kansai Area Operations

Hitachi Solutions Europe AG (Germany)

Hitachi Solutions (China) Co., Ltd. (from October 1, 2011)

Hitachi Solutions America, Ltd. (USA)

Head Office Annex (Konan, Minato-ku)

Higashi-Totsuka Solution Center

Head Office (Higashishinagawa, Shinagawa-ku)

Omori Solution Center

Life Science Research CenterCorporate name: Hitachi Solutions, Ltd.

Head office: 4-12-7, Higashishinagawa, Shinagawa-ku,

Tokyo 140-0002, Japan

Head office annex: 2-18-1, Konan, Minato-ku, Tokyo 108-8250, Japan

Phone: +81-3-5780-2111

Representative: Masahiro Hayashi,

President and Chief Executive Officer

Founded: September 21, 1970

Capital stock: 38,372 million yen

Sales: 259,706 million yen

(consolidated, as of the term ended March, 2011)

Number of employees: 13,223 (consolidated, as of March 31, 2011)

Lines of Business

Local Offices in Japan

Overseas Offices and Associated Divisions

Company Data

�Enterprise Risk Management (ERM) �Corporate Performance Management (CPM) �Enterprise Resource Planning (ERP) �Customer Relationship Management (CRM) �Document management �Finance/accounting

�Cloud Computing (Service-Oriented Architecture (SOA) / Business Process Management (BPM), Software-as-a-Service (SaaS) / Platform-as-a-Service (PaaS) and virtualization) �Database/storage �Web development �Software development tools �System operation and management �System environment development �Embedded software

�Security consulting �Network security �Server security �Endpoint security

�Human resources/general affairs �Financial affairs/accounting �ERP and CRM �Intellectual property and content management �Groupware/workflow

�Finance �Manufacturing �Logistics/services �Transportation �Telecommunications �Public service �Municipal/government services �Healthcare �Agriculture

System Development andOperation Management

Security

Task-specific Solutions

Industry-specific Solutions

IT Governance

Provision of Productsand Services

Consulting System Development

Solutions

System Operationand Maintenance

Shinagawa Seaside Head Office Shinagawa Konan Head Office

Japan

Europe

China

America

Hitachi Solutions: Company Profile

Hitachi Solutions, Ltd. came into being on October 1, 2010, when Hitachi Software Engineering Co., Ltd. merged with Hitachi

Systems & Services, Ltd. to create a new solution provider. We help our customers overcome various challenges by offering

a range of highly valued “one-stop” products and services for the whole IT life cycle, covering everything from proposal and

construction to operation and maintenance of information systems.

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To help rebuild the disaster-afflicted areas

We extend our heartfelt sympathies and condolences to all the people affected by the recent earthquake and tsunami in eastern Japan and hope for the earliest possible recovery. The earthquake and tsunami of March 11, 2011 created a whole new set of challenges that Japan has never before faced. What should Hitachi Solutions do now, as a solution provider, to support the recovery of the affected areas? We should make the best use of our information and communication technologies (ICT) to help solve these problems while taking part in discussions about environmental issues, electricity conservation, and other matters important to the question of how to develop the nation’s social infrastructure.

Then, guided by our management vision, Pathways to new frontiers; Unique Strengths, we should unite our capabilities to identify and work on new areas with undeveloped potential. By pursuing this, we will at the same time be contributing to efforts to help the affected areas slowly but steadily recover.

Our Corporate Principle is the basis for our CSR

“Guided by the Hitachi Spirit, Hitachi Solutions will contribute to the growth of our customers and the global community by supplying dependable technologies and advanced solutions.” If we follow this Corporate Principle and incorporate it into our business activities, we find that we are performing CSR in what we believe is its ideal form.

“To contribute to society through technology and products.” The founding philosophy of the Hitachi Group still lies at the heart of everything we do. As a member of the Hitachi Group, Hitachi Solutions contributes to society through our business activities, taking actions based on a clear recognition that we share an interest in seeing that society thrive. Our founding philosophy is also our promise to our many stakeholders, including our customers and local communities.

Today’s corporations are expected to adopt a global

outlook and contribute to the creation of a sustainable society. IT solution providers such as Hitachi Solutions, which support society’s information infrastructure, have an important role to play in this regard.

Based on the idea that CSR should be the basis of all our activities, we conduct them in accordance with the eight items listed in the CSR policy of the Hitachi Group. In measuring the success of activities in each area, we use the Hitachi Group’s CSR Self-Assessment Tools to identify possible problems in the current activities and select areas of focus for the future, thus completing the PDCA cycle.

Hitachi Solutions and indeed the Hitachi Group are both characterized by the strong bottom-up approach we take to business and therefore to our CSR. But this doesn’t mean we don’t also appreciate the importance of top-down management and strong leadership. When it comes to CSR, we seek a balance between top-down commitment and bottom-up efforts by employees.

Seeking solutions to social issues

The world today is facing a number of serious issues and the private sector is expected to play a major role in solving them. For our part, Hitachi Solutions is actively participating in the “Social Innovation Business” of the Hitachi Group. We have already launched education support programs using our StarBoard interactive whiteboard and are promoting IT in agriculture with our GeoMation Farm agriculture information management system. As these examples indicate, we work across a broad spectrum of areas. In the global market, we will expand the contributions made by our existing businesses to include new comprehensive solutions based on a societal perspective.

Global IT services are also needed in areas such as water supply, railroad services, electricity distribution and others. Hitachi Solutions demonstrates leadership in these areas by acting both as a corporate citizen and a member of the global community.

Socially oriented solutions for new kinds of problems are also in demand in Japan’s domestic markets, especially

in the wake of the earthquake and tsunami disaster of March 2011. In addition to the business models we have been successfully operating, we are now being asked to provide solutions in new areas, such as recovery support and the development of disaster-proof IT systems.

Our advantage is our system of “hybrid integration,” meaning we can offer one-stop solutions targeting both the operation and maintenance of IT systems. We are also leading the field in the integration of cloud computing with other services. Applying these strengths, we fulfill our CSR by providing solutions to ever-changing problems.

As a truly trusted company

Behind each of Hitachi Solutions’ successes is the cooperation and support of a great many customers, business partners and local communities as well as the hard work of our employees, who are in turn supported by their families. We continue to seek and create opportunities for interactive communication with these stakeholders while pursuing our CSR in line with our Corporate Principle that indicates our determination to contribute to solving social issues through our businesses.

The interests and expectations of stakeholders change over time and our CSR reflects those changes appropriately. In day-to-day activities, both managers and non-managerial employees are required to identify the stakeholders affected and ascertain their expectations of us. Doing this helps us remember our promise to contribute to society through our businesses and to reaffirm our commitment to work not only for the sustainable growth of the company but also for the creation of a sustainable society.

The achievement one person can make may be small, but when the achievements of all people are taken together, those achievements can add up to the fulfillment of an entire company’s corporate social responsibility.

For Hitachi Solutions, simple compliance and sticking within the bounds of acceptability is not enough. Seeking to become a company that inspires genuine trust, we apply a higher ethical standard to our activities.

We contribute to the establishment of a sustainable society by providing solutions to various social issues

Top Message

Masahiro HayashiPresident and Chief Executive Officer Hitachi Solutions, Ltd.

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how the StarBoard helps both the teacher and

the children. When the teacher introduced

me to the children, she said “Mayama-san is

from the company that made this interactive

whiteboard.” This got the children excited

enough to cry out, “She’s from Hitachi!” I was

very happy to hear that.

President Hayashi: Hitachi Solutions’s

StarBoard project is the most promising project

in the education industry. Through it, we are

contributing to the development of ICT at

schools as well as helping fulfill the national

government’s policy to promote ICT within

schooling. That means we are meeting our

responsibility as an IT company.

I also had a chance to observe a class at a

school in California. It was the first time I had

done so in several decades. The teacher was

using the StarBoard in a truly interactive way

to lead a very exciting class. It always makes

me very happy to see how our products are

benefiting users in actual situations. It’s quite a

rare thing. Ms. Mayama and I both had a very

valuable experience.

Hidaka: I’m working as an SE in the “Area One-

seg” Project. This is a project to deliver “one-seg”

broadcasting in limited areas. In principle, SEs

recognize our job lets us contribute to the world

via our customers. In reality, however, it’s difficult

to remember the connection when I spend the

whole day in the project room.

If more employees could maintain a proud

awareness of their social responsibilities as they

What we can do to address social issues

Defining “social issues”

Ando: In its Corporate Principle, Hitachi

Solutions declares its commitment to contribute

to solving social issues through business. But

how do you define the term “social issues”?

Kato: Naturally, IT has the potential to solve or

contribute to solving a variety of problems. That

is, IT can be used to solve problems in almost

every area depending on how you view the issue

and its potential solution.

What we must do first, then, is correctly

understand the real nature of the problems faced

by our customers and society.

Oomachi: My customers are mainly nonlife

insurance companies and when I seek a solution,

I first try to see who the problem affects. It may

be a problem for the insurance company. It may

be a problem for the insurance buyers. Or it

might be a problem experienced by the whole

insurance and financial system. Depending on

where you stand while examining the problem

you will come up with quite different solutions. I

also realized that I have to keep reminding myself

to look at the whole picture. When I focus only

on the problems in my direct line of vision, I can

forget about rest of the landscape and get lost. If

that happens, it’s hard to see if the solutions I’m

trying to find will really solve the problems that

society wants solved.

President Hayashi: Our first priority should be

to serve our customers by providing IT solutions.

Via our customers, we can help their customers,

which are the people of Japan. As we go

through this process, we have to remember

that Hitachi Solutions is also a corporate citizen

and try to understand what kinds of problems

society is facing. We must pay close attention to

those problems.

When people hear the term “CSR,” many

think “social contribution.” But I see the “R” or

“responsibility” as the core of CSR. Before we

try to contribute to society, we should first pay

attention to our responsibilities in terms of our

business activities.

Mayama: I'm involved in designing and

offering educational solutions. While the hard

disk functions are rather limited, we can provide

a wider range of services by offering easy-to-use

software that suits the needs of each customer.

Recently, I had a chance to observe a

class at a school using the StarBoard and saw

Stakeholder Discussion

Hitachi Solutions, Ltd. was born in October 2010 by a merger of Hitachi Software Engineering

Co., Ltd. and Hitachi Systems & Services, Ltd. In this discussion, president Masahiro Hayashi and

five employees exchange views on their hopes for the new company and its CSR while asking

themselves what Hitachi Solutions can do as an IT company and a member of the Hitachi Group to

help solve some of the problems facing society.

Masahiro HayashiPresident and Chief Executive Officer

Kazuki OomachiFinancial Systems Business Division

Shuichi MashimaPlatform Product Division

Miki MayamaGovernment, Public Sector & Public Utilities System Business

(Facilitator)Yasutaka AndoCSR Group

Tetsuya KatoProduct Solution Business Planning Division

Keiji HidakaDistribution Service Solution Division

perform their daily tasks, Hitachi Solutions can

make even a larger contribution to solving the

challenges facing society. In this regard, it may

be important for the company to work harder

to raise employee awareness. For example,

we could tell all the employees about Ms.

Mayama’s experience.

President Hayashi: You’re right, Mr. Hidaka,

and that’s why we started the CSR Promotion

Department, which works on raising awareness

and promoting CSR while providing employees

with opportunities to examine how companies

should behave.

Globalization and total competency of the group

Ando: Next, could we hear about your ideas on

our competency in terms of globalization and the

total competency of the whole group, especially

in regard to CSR?

Mashima: I was working at Hitachi America

for one year from 2008. The merger made

globalization an even more important issue

among our business strategies. I would like to

hear from Mr. Hayashi about what changes,

if any, globalization will impose on Hitachi

Solutions’s CSR.

President Hayashi: The merger created a

company with great potential. With 10,000

high-level professionals, we’re ready to leap into

the global market. As for our CSR, I don’t think

we have to make any special adaptations with

regard to globalization. Every company has to

fulfill its corporate responsibilities, and operating

its businesses with an awareness of CSR is

an obvious commitment for each company,

regardless of its location in the world.

One thing we have to be sure of is the

different cultures and legal systems in different

countries. Although we are relatively new to the

global market, we cannot use that as an excuse.

In that sense, we must raise our awareness

regarding compliance and CSR to an even higher

level for overseas operations.

Mayama: Hitachi Ltd. and other member

companies of the Hitachi Group are

independently developing their own CSR.

Wouldn’t it be easier for the member companies

to decide their specific objectives if the goal of

the Hitachi Group is first revealed?

President Hayashi: One of the Hitachi

Group’s visions is to contribute to society

through socially innovative business. From

this phrase, some people may think only of

electricity and other utilities, but it implies

more than that. For example, after the great

earthquake of March, many people realized the

important role convenience stores play as part

of Japan’s social infrastructure.

While pursuing this vision of the Hitachi

Group, we will keep working to make life better

through our original technologies and services in

the area of IT.

Kato: The Hitachi Group is a very big corporate

organization. Society’s expectations for the group

are correspondingly large. I wonder if the phrase

“socially innovative business” is effectively

delivering the specific message we intend. I think

I have to work harder to send our corporate

message to the world.

What we have learned from the March 11 disaster

Oomachi: Throughout the aftermath of the

March 11 earthquake and tsunami, I felt very

irritated about the dependence of information

systems on physical infrastructure. Without

the information infrastructure, we cannot do

anything. I tried to find out what we can do

when the information infrastructure is destroyed.

Mobile phones didn’t work even at the

level we had thought they would. People in my

department have been discussing how we can

develop our “Area One-seg” to make it more

effective at such times. We are also examining a

new service to back up and store data for small-

to medium-sized businesses. Lots of companies

and shops lost important data needed to run

their business in the tsunami because they kept

records on paper or on their computers. We can

store backup data at our center.

“Operating its businesses with an awareness of CSR is an obvious obligation for each company regardless of its location in the world”

Kazuki OomachiDeputy Department ManagerDepartment 3Insurance Systems DivisionFinancial Systems Business Division

Masahiro HayashiPresident and

Chief Executive Officer

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Hidaka: We’ve been working on Area One-seg

under the premise that it would be useful during

emergencies. The March 11 disaster happened

before we had a chance to verify this premise.

But we knew that we had to act. We

proposed a plan to a broadcasting company to

use Area One-seg to deliver TV programs and

other forms of information to shelters housing

500 or more evacuees. Instead of agreeing to our

proposal, the broadcaster asked us to develop

a system to collect donations from listeners to

their special radio programs. Thanks to the cloud

computing system, we were able to launch a

system within the limited timeframe. We also

used a StarBoard to create a system whereby

donors could write messages to the people in the

disaster areas.

Our suggestions do not necessarily match

the needs on the ground at the disaster areas,

but if a feasible idea emerges during a time of

emergency, we have to do whatever we can.

Through the experience, we may discover other

things we can do to support the victims.

Oomachi: We provided GeoPDF® files to the

national and municipal government for free. The

detailed satellite images showing the damage

in the disaster areas served as a tremendous

source of information, not the least for insurance

purposes. In the past, insurance companies

had to send lots of specialists to assess on-site

damage. The GeoPDF files greatly accelerated

this process, allowing payments to be processed

sooner. I was very pleased to know that our

original technologies and services were used in

relief efforts.

President Hayashi: When devastation of that

scale occurs, everyone naturally feels helpless and

frustrated. I was no different. But it is important

to feel that way. It is necessary to have a desire

to be helpful.

The idea you proposed is a very good one.

And if it is feasible to meet your customer’s

needs, you should do so immediately. It’s a

fantastic thing to do.

In my long experience at the Hitachi Group,

I found that our real strength is in our “bottom-

up” capabilities. The top may have great power,

but a company with 10,000 or so employees

cannot achieve constant growth without a strong

bottom-up drive.

So, the management would not want to

control the direction of the business. When there

is a good idea, the people at the frontline should

respond immediately.

The disaster recovery efforts will continue for

a long while to come. During that time there will

many occasions when it is important for people

at the frontline to take the lead in business

development to help our customers recover their

businesses. This in turn will support the recovery

efforts of the national and local governments and

people in the affected areas.

Ando: The disaster gave me an opportunity to

think about the problems facing society. Now I see

that it is important to contribute to the recovery

efforts through our usual business activities.

Kato: I agree with Mr. Ando. We must fulfill the

responsibilities our businesses owe society before

looking to make a big contribution.

Each employee a citizen of the world

Ando: In addition to the efforts by the

company, the social contribution of each

employee is also important. The company of

course supports such activities. What do you

think you can do for society?

Mashima: We launched a firewall called

“PaloAlto” about two years ago. Since then, we

have been actively seeking opportunities to use it

in such a way as to give back to society. We have,

for example, proposed carbon offset activities

for customers. On February 2, “Information

Security Day,” we organized special events and

workshops to raise awareness of security. By

providing support backed up by our specialized,

professional knowledge, we were able to make

a meaningful contribution. This was a pro bono*

activity on my part and participating gave me

some insight into the important role of pro bono

work. At the same time, I was very happy to be

able to return the favor to the company for the

first time in my 10 years of working here.

President Hayashi: Hitachi Solutions operates

“It is important to contribute to the recovery efforts through our usual business activities.”

For Hitachi Solutions, CSR means to look at global and local communities from a social perspective in order to understand the problems

they are facing and then to try and help solve those problems through our business activities. Based on this idea, we organized a workshop

titled “Using IT to Help Solve the Problems Facing Society” on March 30, 2011. A total of 30 department and division managers and team

leaders responsible for decision making in business operations participated in the workshop, which was organized under two themes: how

to see business from the viewpoint of “providing solutions for the problems facing society” rather than “meeting the needs of existing

customers;” and how to seek out new markets and find solutions to specific problems. The participants conducted a case study involving

East Timor, one of the poorest countries in Asia, using it as an example of how to study the problems in developing countries and discussing

how to select problems and find solutions using the resources controlled by Hitachi Solutions. We will continue to actively seek solutions to

the problems facing society through our businesses.

Workshop “Using IT to Help Solve the Problems Facing Society”

Miki MayamaGroup Manager

Sales Promotion Department 1Government, Public Sector &

Public Utilities System Business

businesses across a very broad area and we are

promoting diversity within the organization.

So there should be a wide range of social

contribution activities suited to different

employees with different types of knowledge,

skills and personalities.

At the time of the merger, the new

management team and the younger employees

engaged in a series of discussions to decide the

Vision, Corporate Principle and other principles.

Among them, the Code of Employee Conduct

was formulated by the employees themselves and

thus provides the CSR basis for each of you.

Corporate principles or visions may

sound a little staid, but the Code of Employee

Conduct should be something that employees

discuss. I want you to look at your activities

from the CSR point of view and exchange

ideas with each other.

Mayama: I was also taking CSR to mean

something beyond the capacity of individual

employees. But the other day I visited a college

to talk about the IT industry to the second-year

students. I simply talked about my ideas about

the IT industry and things I regretted about

my student days. After my talk, the students

said things like “I have a clearer image of how

companies operate” and “I now see why this

seminar is important for me.” It made me very

happy to hear these comments.

Ando: I’d like to see all employees use the

volunteer holiday system the company provides in

order to participate in lots of different programs

that match their own particular interests.* Pro bono: A type of social contribution activities where the

participants use their professional knowledge, skills, experience and knowhow.

Raising CSR awareness of employees

Ando: What are the attitudes toward CSR in

each division and department?

Kato: The members of the various divisions

and departments are already aware that they

are expected to help solve issues facing society

through our business activities, that is, by providing

solutions to the problems facing our customers.

But many of them are not able to see their work

as part of CSR. They do have a high level of

awareness of the importance of CSR. So, if the link

between their daily work and CSR is more clearly

delineated through corporate publications or other

venues, their enthusiasm for CSR will be channeled

more effectively.

Hidaka: The ultimate goal is to create a

corporate culture in which employees voluntarily

take actions that contribute to society without

necessarily even thinking about CSR. People

make the company. So we should, first, foster

employees who can actively take such actions

and, second, raise the level of consciousness and

pride among all our employees.

Oomachi: I also believe it is the people. Any

company that provides an environment where

each person can seek to achieve the goal of

becoming a well-rounded person of good

character will have a survival advantage and get

better CSR results. If the employees achieve their

personal growth, that will serve as a driving force

that sustains the company’s overall growth. That

is, we may not have to try to raise awareness

of CSR in particular. Rather, the most important

thing for the company is to promote the

development of each employee as an individual.

President Hayashi: Japan has a very

advanced, complex and diverse society. We

should promote these qualities to the world.

If such a society can grow sustainably and its

people keep getting happier, that’s a fantastic

result. The important thing is to fill your life

with small deeds for which you are thanked by

others. But it’s okay if those deeds are barely

noticed by others or even invisible because they

“This was a pro bono activity on my part and participating gave me some insight into the important role of pro bono work.”

Tetsuya KatoDepartment ManagerBusiness Planning DepartmentProduct Solution Business Planning Division

Shuichi MashimaAssistant ManagerNetwork Products DepartmentPlatform Product Division

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3. Cooperation for a special program aired by IBC Radio

On May 28 and 29, 2011, Iwate Broadcasting,

Co., Ltd. aired a special program to support

relief efforts for the March 11. Hitachi Solutions

supported “IBC Radio Musicthon Special:

Hometowns standing strong!” with our IT

systems. Specifically, we created a cloud-based

system that allowed people to make donations

via their computer, smartphone or cell phone. We

also set up a StarBoard interactive whiteboard

at the IBC building in Morioka, Iwate and Iwate

Ginza Plaza in Ginza, Tokyo so people in these

areas could write messages to those in the

disaster-affected areas. We aired the program

on USTREAM and ran a fund-raising campaign

on “Bell Seg,” the Area One-seg station we

operate in cooperation with the Shonan Bellmare

professional football club, to collect donations

through the cloud-based donation system.

4. Donation of StarBoard interactive whiteboards

We donated two StarBoard PX-DUO-50P

interactive whiteboards and two DCHP-5H

document cameras to tsunami-damaged junior

high schools in Kamaishi, Iwate Prefecture.

make you feel good about yourself.

At Hitachi Solutions, your time is spent with

good people who all work hard. The company

is financially stable, fulfilling one of its social

responsibilities. This is not exceptional, but it is

still a very important fact.

Employees decide the future of the company

Ando: Two companies have merged and their

former employees are now working together

as employees of the new company. What will

change and what will remain the same?

Hidaka: I have enjoyed working under the

“bottom-up” approach. I think this philosophy

should be kept. I will continue in the same spirit.

Mashima: With 10,000 employees, Hitachi

Solutions is exactly the same size as my

hometown in Kyushu. For me, seeing everyone

at Hitachi Solutions getting together and trying

to bring about change is as exciting as seeing

people back home trying to change the town. I’m

sure we can make something exciting happen.

Kato: Hitachi Software was a “seeds-oriented”

company, where they started with their own

original products and customized them to create

a package that would meet the needs of the

particular customer. On the other hand, Hitachi

Systems was a “needs-oriented” company,

which carefully studied the problems facing the

customer in order to provide solutions. With the

merger, we have the best of both worlds and

are able to offer two complementary services.

I expect that we will make a big impact on the

market. Although we are a new, integrated

“The ultimate goal is to create a corporate culture in which employees voluntarily take actions that contribute to society without necessarily even thinking about CSR.”

“CSR should be led by employees. Our bottom-up approach will drive our

development for the next 10 or even 20 years.”

Through this discussion, I was assured of the important role employees play as stakeholders. Contributing to society through our business is the essence

of Hitachi Solutions’s corporate principle and something is well understood by all employees. No matter how good technologies or products become,

companies cannot do their business effectively without good human resources. In other words, to make a contribution to society, companies need

enthusiastic employees with an earnest and genuine attitude. The employees must find joy in their work and there must be good teamwork among them.

In this discussion, Hitachi Solutions employees demonstrated an approach that was both proactive and ambitious while President Hayashi expressed

his keenness to provide leadership. I felt personally reassured about the company’s understanding of its responsibilities to contribute to the development

of society and achieve its own continuous growth.

Comment on Stakeholder DiscussionYasutaka Ando

General ManagerCorporate Communication Division

CSR Group

Keiji HidakaLead EngineerDepartment 2Distribution Service Solution Division

company, we should maintain the advantages of

the two companies.

Mayama: Before this discussion, I had only

a vague idea of CSR. Now I have a clearer

understanding of what CSR is all about.

If all workers all across Japan had a similar

understanding, it would spur their entrepreneurial

spirit to the benefit of the whole society.

Oomachi: During the aftermath of the March

disaster, I realized that people revert to analogue

when facing a disaster on that kind of scale. I

want to transform the company into one that can

offer digital solutions. But to do that I think it

must first understand analogue.

President Hayashi: Global marketing

competition is becoming fiercer and each

company is required to have a solid and stable

financial foundation. The merger gave us one.

You can put more energy into your work.

CSR, or the creation of a sustainable society

through our businesses, should be led not only by

the president but also by employees.

Our bottom-up approach is our strength. I

believe this advantage will drive our development

for the next 10 or even 20 years and take the

company in a better direction.

Our Response to the Great Earthquake and Tsunami of March 2011We would like to express our heartfelt sympathy to the people affected by the Great East Japan Earthquake and their families.

In response to the earthquake, Hitachi Solutions established the Mega-Earthquake Response Headquarters (renamed

the Disaster Recovery Headquarters on June 1) and has been providing various kinds of support for the recovery and

reconstruction of the affected areas. We will continue to support these areas through the provision of our products and

services, as well as with various business resources, to meet specific needs at each stage of the recovery. To cover various

kinds of risks (disaster, damage to IT systems, the outbreak of pandemic, and energy shortages), we provide IT-related

Business Continuity Plan and Business Continuity Management services to help make society safer and more secure.

Supporting the recovery of the affected areas using the special resources of Hitachi Solutions

1. Donation of satellite images

We donate satellite images of the affected areas

to help damage assessment and recovery efforts

by local governments. Donated images are

posted on a Website operated by DigitalGlobe,

Inc., an American company with which we have

collaborative ties.http://www.digitalglobe.com/digitalglobe2/index.php/27/Sample+Imagery+Gallery

2. Donation of GeoPDF files to aid Japan earthquake relief efforts

We provide GeoPDF files to the Cabinet Office

for distribution to local disaster headquarters

and municipal governments in areas affected by

the disaster. GeoPDF files deliver geographical

information systems data in PDF form to facilitate

viewing and the adding of information. The use

of GeoPDF files will accelerate the assessment of

housing damage to greatly simplify the issuance

of Risai Shomeisho (Disaster Victim Certificates)

to property owners. The files can also be used for

effective relief planning.

BCP/BCM solutions by Hitachi Solutions

We propose and support various BCP/BCM solutions

for different scenarios both before and after a disaster

with a particular focus on five points: (1) support

for the establishment and operation of BCPs, (2)

collection, sharing and delivery of information, (3)

resource analysis, (4) switching to back-up systems,

and (5) business operations in scattered offices. We

offer an Earthquake Early Warning System and other

BCP/BCM solutions that help companies maintain

continuity, including person location systems, work-

from-home support systems, teleconference systems,

and disaster recovery systems*. Based on these core

solutions, we design and improve entire IT systems to

meet the BCP needs of each user. * Disaster recovery systems: Systems to recover and repair systems

that are damaged by a disaster. They also include preventive measures, functions and schemes.

Donations and support activities by employees

1. Donations by employees

As of the end of June 2011, a total of 28,950,000 yen

was collected from employees. By adding

10,000,000 yen to this amount, the company

donated the total amount of 38,950,000 yen to

the Central Community Chest of Japan.

2. Purchasing foods and drinks produced in the affected areas by Hitachi Solutions employee facilities

Our employee facilities are trying wherever

possible to purchase vegetables, seafood and

alcoholic beverages produced in the disaster-

affected areas. Part of the fees collected from

employees for use of these facilities is also

donated to recovery efforts for these areas.

3. Donation of 50 computers for reuse

We donated 50 used computers to the Reuse PC

Donation Program run by nonprofit organization

e-elder. The computers will be provided to

educational institutions and other NPOs affected

by the disaster. Information about our response to the earthquake and tsunami of March 2011 are reported on the following site, with updates provided as needed: http://www.hitachi-solutions.co.jp/company/information/ (only in Japanese)

15

Policy

1 Commitment to Corporate Social Responsibility

Fiscal 2010 Objectives

The Hitachi Group has established a CSR Policy consisting of eight items in order to underline the importance

of incorporating the CSR perspective into every business activity.

Hitachi Solutions positions these areas of focus as foundational to the promotion of CSR as part of

our business activities. Each year, we set objectives and the results are analyzed the following year.

Based on the results and newly arisen issues, we set new objectives for the year to come

to ensure effective action.

Objectives and achievements for fiscal 2010 based on the CSR Policy of the Hitachi Group(summary)

Objectives for fiscal 2010 and our activities are reported on the following site:http://www.hitachi-solutions.com/company/csr/

Continue structured CSR learning programs. Continue awareness raising activities within the company. Collect CSR information and exchange ideas for managerial decision making.

Policy

2 Contribution to Society through our Business

Fiscal 2010 Objectives

Incorporate CSR into business strategies. Develop products and services that can help solve problems facing society. Link CSR to companywide brand strategies.

Policy

3 Disclosure of Information and Stakeholder Engagement

Fiscal 2010 Objectives

Improve information delivery by redesigning the Internet and intranet sites.Enhance communication with stakeholders.Improve internal newsletters and magazines.

Policy

4 Corporate Ethics and Human Rights

Fiscal 2010 Objectives

Ensure compliance.Provide human rights training to all employees.Ensure ethical behavior and respect for cultural and other diversity at overseas offices.

Policy

5 Environmental Conservation

Fiscal 2010 Objectives

Comply with environmental laws and regulations.Promote energy saving, resource conservation and green procurement.Promote volunteer activities for environment conservation.

Policy

6 Corporate Citizenship Activities

Fiscal 2010 Objectives

Promote social contribution activities in cooperation with NPOs and NGOs (in the area of social welfare).Continue social contribution activities that effectively utilize our business and human resources. Plan and implement social awareness activities.

Policy

7 Working Environment

Fiscal 2010 Objectives

Further enforce the measures for a better work-life balance.Improve communication among employees.Promote diversity management.

Policy

8 Responsible Partnership with Business Partners

Fiscal 2010 Objectives

Ensure protection of personal information and prevention of information leaks.Maintain appropriate conditions for partnership agreements.Promote green procurement and procure environmentally sound products.

17C S R S u m m a r y 2 0 1 0

Policy

1 Commitment to Corporate Social Responsibility

Fiscal 2010 Objectives

The Hitachi Group has established a CSR Policy consisting of eight items in order to underline the importance

of incorporating the CSR perspective into every business activity.

Hitachi Solutions positions these areas of focus as foundational to the promotion of CSR as part of

our business activities. Each year, we set objectives and the results are analyzed the following year.

Based on the results and newly arisen issues, we set new objectives for the year to come

to ensure effective action.

Objectives and achievements for fiscal 2010 based on the CSR Policy of the Hitachi Group(summary)

Objectives for fiscal 2010 and our activities are reported on the following site:http://www.hitachi-solutions.com/company/csr/

Continue structured CSR learning programs. Continue awareness raising activities within the company. Collect CSR information and exchange ideas for managerial decision making.

Policy

2 Contribution to Society through our Business

Fiscal 2010 Objectives

Incorporate CSR into business strategies. Develop products and services that can help solve problems facing society. Link CSR to companywide brand strategies.

Policy

3 Disclosure of Information and Stakeholder Engagement

Fiscal 2010 Objectives

Improve information delivery by redesigning the Internet and intranet sites.Enhance communication with stakeholders.Improve internal newsletters and magazines.

Policy

4 Corporate Ethics and Human Rights

Fiscal 2010 Objectives

Ensure compliance.Provide human rights training to all employees.Ensure ethical behavior and respect for cultural and other diversity at overseas offices.

Policy

5 Environmental Conservation

Fiscal 2010 Objectives

Comply with environmental laws and regulations.Promote energy saving, resource conservation and green procurement.Promote volunteer activities for environment conservation.

Policy

6 Corporate Citizenship Activities

Fiscal 2010 Objectives

Promote social contribution activities in cooperation with NPOs and NGOs (in the area of social welfare).Continue social contribution activities that effectively utilize our business and human resources. Plan and implement social awareness activities.

Policy

7 Working Environment

Fiscal 2010 Objectives

Further enforce the measures for a better work-life balance.Improve communication among employees.Promote diversity management.

Policy

8 Responsible Partnership with Business Partners

Fiscal 2010 Objectives

Ensure protection of personal information and prevention of information leaks.Maintain appropriate conditions for partnership agreements.Promote green procurement and procure environmentally sound products.

16

CSR at Hitachi Solutions

H i t a c h i S o l u t i o n s

18

Number of participants in CSR seminars held with associated companies

200Hitachi Solutions, in cooperation with Hitachi Ltd. and

Hitachi Systems, Ltd. organized a series of CSR seminars to raise

employee awareness of social contribution through business

activities. Participants in the seminars, titled “Social Innovator

Development Seminars,” examined

case studies as a basis for discussion

on what IT corporations can do to

fulfill their CSR. The seminar has so

far been held twice, with about 200

employees from the three companies

attending each time.

CSR Promotion Committee launched Upon the launch of its CSR Promotion Committee, the newly formed

Hitachi Solutions organized a seminar for the committee members,

inviting Ms. Eiko Ibuki, a senior consultant at Nomura Research

Institute, to give a lecture titled, “CSR as a management strategy.” The

members agreed with Ms. Ibuki’s

contention that “‘proactive

CSR’ is the key to increasing

corporate value and beating the

competition.” The Committee will

promote CSR as a key element of

our competitiveness.

Responding to the need for information security

As social media becomes more popular and the development of IT

continues, demand for information security has been on the rise. In

response, Hitachi Solutions has developed HIBUN, a security solution to

prevent information leakage from internal sources, JOHMON, a robust

ID system based on finger vein pattern recognition, and KATSUBUN, a

system that allows for the controlled and safe use of documents outside

the office. We also offer anti-attack

network security products under an

alliance with Juniper Networks and

other companies. Through these

products, we solve information security

and networking issues and thus

contribute to safety and security.

Number of products registered as “eco-products”

547The Hitachi Group has laid down a set of criteria for products and

services to be registered as “eco-products.” Before a product or service

can be registered as an eco-product, its environmental impact at

each stage of the life cycle is evaluated from eight aspects, including

resource conservation and energy saving. Items

that achieve a certain score can be registered

as eco-products. As part of our environmental

conservation efforts, Hitachi Solutions has

been working to increase the number of items

registered.

Commitment to Corporate Social Responsibility

Contribution to Society through our Business

Policy

1

Policy

2

Policy

3

Policy

4

l Conduct CSR training on solving the problems facing society (Head office and local offices).

l Continue CSR seminars held in cooperation with IT system companies within the Hitachi Group.

l Hold a seminar on ISO 26000 for senior managers.

l Be more proactive in incorporating CSR into business strategies. l Further develop solutions for issues facing society (in the areas

of disaster prevention, healthcare, environmental conservation, education, agriculture, etc.).

l Enhance collaboration between business divisions and planning divisions in pursuit of the companywide brand strategies.

l Formulate a CSR communication plan that conforms to the existing public relations and advertising activities of Hitachi Solutions and accords with the corporate brand.

l Enhance communication with stakeholders (employees and others involved in areas such as the environment and education).

l Deliver information in a more integrated way in cooperation with business and sales divisions.

l Enhance collaboration with the Hitachi Group on Corporate Ethics Promotion Month (Holding seminars).

l Ensure respect for diversity and cultural differences and the promotion of ethical behavior at overseas offices, as required by the Hitachi Global Compliance Program (HGCP).

l Ensure suppliers do not engage in illegal labor practices, such as the use of child labor.

Self-rating for Fiscal 2010 Self-rating for Fiscal 2010 Self-rating for Fiscal 2010 Self-rating for Fiscal 2010

Objectives for Fiscal 2011 Objectives for Fiscal 2011 Objectives for Fiscal 2011 Objectives for Fiscal 2011

Self-rating: : Objectives are met. : Objectives are partially met. : Objectives are not met.

The first CSR Seminar

The Hitachi Group’s logo for eco-products

Members of the CSR Promotion Committee exchanging ideas with Ms. Ibuki

“SE University” internship program holds open session for the media

Hitachi Solutions’s “SE University” is a short job-matching program

that provides college students who are studying to be SEs* with

hands-on work experience. It also functions as a type of internship

aimed at promoting the IT industry. We invited media representatives

to attend one of the program sessions to observe the program

in action and provided them with details about the program’s

background, specific activities and results. The open session proved

to be a valuable opportunity to

publicize the internship program.* Systems engineers, a type of computer

technician

Periodicals to publicize our businesses Hitachi Solutions REVIEW is a biannual corporate newsletter

designed to share information about our businesses, products and

other activities with the general public.

As an information service for special members, we publish

a quarterly journal,

Prowise. This serves

as a communication

tool for our customers

and various other

stakeholders.

Human rights training sessions held regularly

As globalization progresses and CSR becomes more important,

corporations are expected to protect human rights and conduct their

activities in an ethical and socially acceptable way.

At Hitachi Solutions, employees are provided with human rights

training both when they join the company and every time they

receive a promotion. This training covers such subjects as general

human rights; sexual harassment, workplace bullying and other

workplace issues; and the value of diversity.

Thorough complianceHitachi Solutions has established a Compliance Department to ensure

fair and transparent corporate activities and laid down company

regulations for compliance with the Anti-Monopoly Act. Whistle-

blowing procedures have also been instituted to expose and promote

the early remediation of inappropriate behavior and illegal activity. The

scope of the system has been expanded to include current employees,

former employees and temporary staff, as well as the employees

and temporary staff of group companies and partner companies.

In addition, compliance seminars and workshops are held regularly

for new employees, team leaders, managers and all sales staff. The

textbooks used in this

training are also utilized

as a daily reference in

the workplace. To further

promote and enhance

compliance and ethical

corporate behavior, we

designated October

as “Corporate Ethics

Promotion Month.”

Disclosure of Information and Stakeholder Engagement

Corporate Ethics and Human Rights

H i t a c h i S o l u t i o n s

Introducing “SE University” to the media

Compliance training Hitachi Solutions REVIEW (left) and Prowise. Both publications are available in Japanese only.

“Asa-Chare!” awardNumber of employees who participated

in street cleanup

> 2,000The Challenge 25 Committee from the Ministry of the Environment

named a volunteer activity by Hitachi Solutions employees as the winner

of the “Asa-Chare!” (“Morning Challenge!”) award. The award was

given to Hitachi Solutions in recognition of its efforts over the last eight

years to conduct a morning cleaning up of Heiwa-dori, a street near the

company’s office. The activity, in which a total of over 2,000 employees

have voluntarily participated, has also provided an opportunity to improve

communication between the company and

local residents. The Asa-Chare! awardees are

selected from a diverse range of self-nominated

organizations including companies, local

governments, schools and communities. Hitachi

Solutions won in the company division.

The number of years Hitachi Solutions has participated in a tree-planting

project in an industrial area

7Since 2004, Hitachi Solutions has been encouraging employees to

volunteer in a tree-planting project led by

the municipal government of Yokohama

City in Kanagawa Prefecture. Participants in

the Keihin-no-mori Ikuju-no-tsudoi project

(Keihin Area Forestation Project) beautify the

industrial area of Keihin and its surroundings

by planting trees and cutting grass.

Number of institutions participating in “1 Day Shop”

14Every year since 2009, Hitachi Solutions holds an event called

“1 Day Shop,” a special sale of products made by people with

physical or intellectual disabilities. The event, which is organized

to support people working in disability-related institutions, is held

in cooperation with the institutions that use the ASP invoicing

system Hitachi Solutions has developed to meet the requirements

of the Services and Supports for Persons

with Disabilities Act. This year, 14 institutions

participated in the event and a great many

Hitachi Solutions employees enjoyed shopping

and interacting with the people at the booths.

Ski classes for children with disabilities The members of the Hitachi Solutions Ski Team teach skiing to

elementary and junior high school children with disabilities in

Hokkaido and other areas. The courses are organized to identify

junior skiers to participate in the Paralympics Games and to promote

cross-country skiing in the disabled community.

The first course for fiscal 2010 was held in Hachinohe, Aomori

Prefecture in August 2010. By the end of the

season in March 2011, a total of five sit skiing

courses had been held, with the last one

taking place in Abashiri, Hokkaido Prefecture.

Environmental ConservationCorporate Citizenship

Activities

Read more about the activities of the Hitachi Solutions Ski Team at: http://www.skiblog.jp/ (only in Japanese)

C S R H i g h l i g h t s 2 0 1 0

“Asa-Chare!” award certificate

1 Day Shop

Employee volunteers cutting grass and planting trees

Ski class for children with disabilities

Promotion of workplace diversityIn order to create a work environment where each person can fully

exercise his or her abilities, we encourage all of our employees to respect

diversity in the workplace. Thanks to our efforts to promote equal

opportunities for male and female employees, the percentage of female

managers at the company went up to 2.3% in fiscal 2010. Furthermore,

in April 2011, Hitachi Solutions became the first company in the entire

Hitachi Group to appoint a female executive. Alongside our efforts

to promote workplace diversity, we support the work-life balance of

employees with various leave systems, according to their different stages

of life. In particular, as many as 4.93% of employees took childcare and

nursing care leave in fiscal 2010.

Reduction of total work hours As part of our efforts to reduce the total work hours of employees, we

designated the first two months following the launch of the new company

as “Work Less” months and took a variety of measures to cut overtime

hours. In order to promote greater efficiency and on-time leaving, HR staff,

labor union officials and executive managers patrolled the offices after

hours to encourage employees to finish up for the day. We will keep up

these kinds of efforts to reduce the overtime hours of our employees.

Employee relationsNumber of participants

in the sport festival

7,290In November 2010, a total of 7,290 employees and their families came

along to a companywide sports festival. In addition, the Christmas parties

for the Chubu and Kansai areas held in December were attended by a

total of 1,300 employees.

These events not only helped improve communication among employees

but also gave their families a chance to learn more about the new company.

Ensure protection of personal information and prevention of

information leakage Hitachi Solutions has been organizing lectures

on information security for frontline employees,

managers and business partners. In the second

half of fiscal 2010, we published a manual on the

protection of personal information and prevention

of information leakage titled Information Security

Handbook and distributed it to the employees of

all our partners.

Promotion of green procurement Rate of green products purchased

> 90%We purchase most of our stationery and other office supplies online,

setting targets of 90% or higher for the purchase of ecologically

sound products, such as products certified with the Eco Mark or

under the Green Purchasing Act.

Building good partnershipsHitachi Solutions started the “Excel Partner” authorization system

in fiscal 2010 to share business policies with partner companies

and help us work together with them to create added value for

our products. Using the system, we work on developing good

partnerships with our business partners, including those overseas, by

maintaining and improving mutual understanding and trust.

Working EnvironmentResponsible Partnership with Business Partners

Read more about other CSR activities by Hitachi Solutions at: http://www.hitachi-solutions.com/company/csr/

Information Security Handbook

Policy

5

Policy

6

Policy

7

Policy

8

l Comply with environmental laws and regulations in Japan and other countries.

l Promote energy saving, resource conservation and green procurement.

l Continue volunteer projects to conserve environments in rural and urban areas.

l Promote social contribution activities in cooperation with NPOs and NGOs.

l Promote original CSR activities in education (development of an IT-literate generation).

l Plan and implement social awareness activities, especially in information security and ICT.

l Encourage future-oriented career management. l Cultivate a globally minded workforce.l Promote diversity management.

l Enhance measures for proper conclusion of contracts by fully complying with the new guidelines.

l Continue procurement of green materials for our own products. l Promote cooperation with partners by sharing policies among

different divisions.

Self-rating for Fiscal 2010 Self-rating for Fiscal 2010 Self-rating for Fiscal 2010 Self-rating for Fiscal 2010

Objectives for Fiscal 2011 Objectives for Fiscal 2011 Objectives for Fiscal 2011 Objectives for Fiscal 2011

22 23

Various issues facing society Hitachi Solutions Considering CSR as a commitment to help solve a variety of problems facing society, Hitachi Solutions offers suggestions for achieving a global community where everyone can live a safe and comfortable life.

The world is currently facing a variety of social issues in many areas including environmental protection, poverty, natural disasters, resource conservation, the efficient use of energy and regional disparities. In the midst of these

challenges and the advance of globalization, organizations can influence society through their behavior and activities.

Interactive whiteboards can support equal opportunity for education and bring peace to everyone

Information technologies make important information more

accessible and meaningful

Diverse people and values make the company strong

Using IT systems to launch green manufacturing

Education Safety and Security

Diversity Climate Change

©DigitalGlobe, Inc.

24 25

one of such countries, interactive whiteboards are

used in 70 to 80% of the classrooms.

The situation is very different in emerging

countries, however. In Saudi Arabia, where about

6,000 StarBoards have been delivered, the birth

rate is 3.17 and 30% of the population are aged

25 or younger—a demographic picture that is

the mirror opposite of developed countries. The

country has a severe shortage of school buildings

and teaching materials, and teacher training

cannot be done fast enough to catch up with

Yutaka UsudaCorporate OfficerGeneral ManagerInteractive Media Solutions Division

By doing business in the area of education, we are supporting both prosperity and peace.

StarBoard in a Turkish classroom

The StarBoard interactive whiteboard is now widely used in schools and other educational institutions all over the world. As Hitachi Solutions

does business in a wide range of global markets, we are very interested in the potential of our solutions to help shape the future of the countries.

Interactive whiteboards can support equal opportunity for education and bring peace to everyone.

Tunay AlkanDeputy DirectorGeneral Directorate of Educational TechnologiesMinistry of National Education, Turkey

StarBoard opportunities in Turkey

V O I C E

The “FATIH PROJESI” is a national project in Turkey aimed at drastically changing how ICT is used

in education within three years. The name stands for “Firsatlari” (educational opportunities),

“Artirma” (increase), “Teknolojiyi” (educational technology), “Iyilestirme” (improve), and

“Haretketi” (movement). The project’s objective is to improve the motivation, understanding and

academic achievements of students by enhancing interactive classroom-based communication

with the help of information technologies. The government plans to install Internet-ready

computers and interactive whiteboards in classrooms at every elementary, middle and high school

across the nation (about 620,000 classrooms) and to digitize all teaching materials. Hitachi

Solutions’s StarBoard Software is on the shortlist of candidates to be used in the project.

Education

currently in use in 71 countries, the StarBoard

has won a big share of the education market.

While observing classrooms in different parts

of the world, I realized that although education is

very important everywhere, its specific objectives

and the problems encountered in the delivery of

education vary significantly depending on the

culture and wealth of the country. In developed

countries, one of the major goals of education is to

provide higher levels of education to produce good

citizens who can be reliable tax payers. In the UK,

“Whiteboards of the future” playing an important role in 71 countries throughout the world

StarBoard, the leading product line of Hitachi

Solutions, is a “whiteboard of the future” with

many functions. Users can draw and write on the

projected computer screen images or operate

computers, such as performing an Internet search,

by finger or pen. With more than 170,000 units

demand. This presents a problem, because if many

children lack the opportunity to receive even a

minimally decent education, the economic gap will

continue to grow. The widening of this gap can

have disastrous effects on society and even lead

to civil war. Viewed in this light, we can say that

education is a pressing matter, even in terms of

maintaining peace in the country.

Thinking about these things, it occurred

to me that by doing business in the area of

education we are supporting both prosperity and

peace. If this is so and we are indeed helping

to construct a foundation for the country’s

development, we must think about the possible

future paths the country might take when

planning our business development.

An infinite number of opportunities to change the world through ICT

We started an Internet community site called

“Stabo Hiroba” to provide Japanese StarBoard

users with access to digital teaching materials

and let them share their own. The section of the

site where teachers share the materials they have

developed themselves is particularly popular,

receiving more than 10,000 visitors every month.

This is an example of what Information and

Communication Technology (ICT) can do. While

open classes and other traditional opportunities

have been locally available to teachers,

opportunities to share teaching materials,

methods and tips with other teachers in distant

areas have been very limited. ICT can link people

to people regardless of the physical distance.

ICT lets people to share information and

knowledge with other people. With the advance

of tablet computers and smartphones, ICT has

realized even more of its potential. What’s more,

new communication systems and tools have

become available that change how ICT is used.

For example, the Middle East uprisings may not

have occurred had it not been for such tools as

Facebook and Twitter. You could even say that the

most advanced ICT tools are capable of shaking

up the global order.

In addition to its impact in classrooms,

StarBoard has the potential to change work

styles and improve the quality of life of people in

general. For example, StarBoard can be used by

people who work from home in order to spend

more time with their families. Elderly people,

meanwhile, can use StarBoard to exercise their

brain and/or body. StarBoard can also help

promote decentralization in various fields, solving

the problem of overconcentration of industry and

population in the Tokyo area, for example. If we

can take a broader view of society and use our

imagination, there are unlimited opportunities to

make the world a better place.

The more options people have for

communicating, the more efficiently they can use

their knowledge and skills. Through its work in

the field of ICT, Hitachi Solutions contributes to

creating a more prosperous society.

Problems facing society Hitachi Solutions

No. 1

26 27

Motoe UsumiManager

Environment Promotion DivisionCSR Group

By offering products and solutions that are more environmentally sound,

we can change the world.

No. 2

Masahiro ShinozakiSenior EngineerSystems DepartmentInteractive Media Solutions Division

We support our customers in their efforts to conserve the environment by helping them measure their CO2 emissions.

V O I C E

The task of the Interactive Media Solutions Division is to make

recommendations and achieve sales of systems using the StarBoard. One of

our suggestions was to help our customers understand their CO2 emissions

by adding the Carbon Footprint Mark to the teleconference system that uses

StarBoard electronic whiteboards. With the authorization, we can now label

the product with information about its CO2 emissions.

We will keep working with our customers to help them reduce their CO2

emissions while emphasizing our contribution to environmental conservation

across the entire life cycle of our products.

*1 Calculated based on the SI-LCA, an in-house Hitachi Group LCA assessment method for IT. The method observes the Fiscal 2005 Guideline: Environmental Performance Assessment Guideline for Information and Communication Technology (ICT), which is compiled by a collaborative industry-government-academic group.

*2 This figure was calculated based on the specific case outlined. Actual rates of reduction in other situations may vary depending on conditions.

The figure (4,750 kg) was obtained by calculating

the total amount of greenhouse gases (GHG) emitted

by StarBoard interactive whiteboards during

teleconferencing over a 10-year life cycle under the

following scenario.

The scenario: Teleconferences are held 0.89 times a week for

1.15 hours each time (53.2 hours over 46.3 meetings per

year). The six participants are located at the Tokyo office

and Osaka office of Hitachi Solutions (distance: 500 km).

The detailed system configuration is published on the

official Carbon Footprint site (http://www.cfp-japan.jp/).

Based on this scenario, the figure (8.93 kg) is the amount of

GHG emissions released for every one hour of meeting time.

Note: The figures are calculated and authorized for a certain type of

case. Figures may vary depending on the actual conditions.

Carbon Footprint Mark for teleconference systems using the StarBoard interactive whiteboard

Climate ChangeThe abnormal weather patterns and natural disasters on a massive scale that we have experienced in recent years are testimonials to an

unimaginable global environmental crisis. Can IT change the relationship between energy use and our lifestyle? Can IT bring us closer to

solving issues related to climate change? Hitachi Solutions is always ready to take on a new challenge to expand the potential of information

technologies.

Using IT systems to launch green manufacturing

the conventional LCA (life cycle assessment)

method*1 as part of its efforts to help reduce the

environmental impact of human activities.

To help our customers green their

operations, we present them with a package of

our best-performing environmentally friendly

products and services. This “eco solution”

includes products and services that perform well

in a number of areas, such as energy saving,

resource conservation, the control of chemical

substances and biodiversity preservation. For

example, our vein authorization system was used

by one of our customers to record and analyze

the number of photocopies made by each

employee. As a result of this approach, the use of

teleconference system using StarBoard

became the first IT system product to obtain

authorization to use the Carbon Footprint

Mark. Products and services carrying the mark

display information about the total amount of

greenhouse gases (in CO2 equivalent) emitted at

each stage of their life cycle.

Compared with electrical appliances, it

is more difficult to show the environmental

performance of system products in a concrete

form such as numbers because the performance

and effects change greatly depending on the

conditions during use. To solve this problem,

Hitachi Solutions adopted the Carbon

Footprint assessment system in addition to

Visualizing the invisible potential of IT in environmental protection

People say IT can be effectively used to reduce

environmental impact. If this is true, how big

is the impact in terms of CO2 reduction? If

they do not see numerical figures, potential

customers are not interested in potential

solutions. Hitachi Solutions therefore makes

the environmental performance of our products

visible to customers to help them use the

products effectively in their efforts to reduce the

environmental impact of their activities.

In November 2010, Hitachi Solutions’s

copiers was reduced by 20%.*2 In addition to the

improved environmental outcome achieved, the

customer was able to cut costs.

Taking the initiative to address issues related to climate change

As a way to cut electricity consumption after the

massive earthquake and tsunami of March 2011,

the railroad companies reduced the number of

trains running in the Tokyo area in a move that

affected many commuters. Hitachi Solutions’s

SecureOnline Work-from Home Service

provides a solution in such circumstances.

This robustly secure cloud computing service

creates a safe and comfortable external

computing environment for those who wish to

work from home. We are currently preparing

an application for Carbon Footprint Mark

authorization for the service.

After the March earthquake and tsunami,

the balance between energy demand and supply

has become a concern for many people all over

the world. How can we adapt our lifestyles and

the way we do business, both of which are totally

dependant on large amounts of energy? How

can we reduce CO2 emissions without sacrificing

economic development? These issues have

become even more important for all of us living

on the planet Earth.

I believe Hitachi Solutions can certainly

create positive change in the world by

offering products and solutions that are

more environmentally sound. For example,

we can provide our customers with effective

recommendations for cutting their CO2 emissions

by demonstrating our own experience with the

products and solutions we use at our own office.

In addition to emphasizing the performance of

our existing low-impact products, we also seek

to develop new products and solutions that can

actually remove existing atmospheric CO2 and

provide other environmental benefits. To that

end, we have to make a drastic change in the

way we design new products by considering

environmental issues as the very first step. I

believe Hitachi Solutions should be a company

that takes the initiative to face issues related to

climate change.

The world cannot address the issues of

climate change without the private sector’s

capacity to develop products and services.

Hitachi Solutions takes on the challenge of social

innovation, bringing to bear our information

technology knowledge and expertise.

Problems facing society Hitachi Solutions

GHG emission from meetings

8.93 kg/hour

28 29

The March 2011 disaster changed the way people think about how they live their lives. In response, Hitachi Solutions has accelerated its

development of information solutions to ensure a safe and secure society. What information do we need to live safely and securely every

day? What form should that information be presented in so as to make it easy to deliver it to large numbers of people? We continue to seek

answers to these questions.

Information technologies make important information more accessible and meaningful

Masakazu Kuji Executive Officer, Deputy General ManagerGlobal Business Development & Operations GroupGeneral Manager, Global Business Development Division

Our role then is to answer this question: how can we link advanced information technologies to safety and security?

Safety and Security No. 3

GeoPDF Solution technology to be launched in TaiwanAt a product review held on May 25, 2011 in cooperation with the Industrial Development Bureau of Taiwan, we announced our partnership with Taiwanese company Wistorn ITS (WITS) and the start of delivery of GeoPDF Solution technology.

Neng-Chuan ChouDeputy Director GeneralIndustrial Development BureauMinistry of Economic Affairs, Taiwan

V O I C E

GeoPDF Solution technology has great potential to assist not only in disaster countermeasures but in a wide range of other applications.

I extend our heartfelt sympathy and condolences to all the people of Japan affected by

the earthquake and tsunami and hope that they will be able to regain their strength

and return to normal life as soon as possible, following the recovery of the region.

I welcome the partnership between Hitachi Solutions and WITS for a new

endeavor dealing with geographical information. The Industrial Development

Bureau of Taiwan will continue to provide its full support for the development of

business between the two countries. Specifically, the launch of GeoPDF Solution

technology in Taiwan has great potential not only in disaster countermeasures but in

a wide range of other applications.

Problems facing society Hitachi Solutions

Donating GeoPDF Files to support 3.11 recovery efforts

Since the massive earthquake and tsunami on

March 11, events that have collectively become

known simply as “3.11,” Japanese society has

been experiencing a paradigm shift. Working

out how we can ensure safety and security in

daily life will be a concern shared by everyone

in the post-3.11 era.

As part of our response to the disaster, we

quickly decided to donate GeoPDF files to local

governments in the affected areas. GeoPDF files

are products created by our location intelligence*

business, one of our core business areas. By

overlaying the residential map drawn before

the disaster with data showing flooded areas

and the satellite images taken after the quake

and tsunami, the damage to houses and other

buildings can be precisely seen. After the

successful use of GeoPDF in the recovery efforts

following the massive 2010 earthquake in Haiti

and Hurricane Katrina in the US in 2005, Hitachi

Solutions worked to prepare the technology for

use in Japan in the event of a disaster. In fact, we

were already in the process of proofing, aiming for

a spring 2011 launch, when the earthquake hit.

While high-resolution satellite images are

available for almost every region of the Earth,

the size of the data makes it difficult for people to

use at home or at small offices (the data for the

area encircled by Tokyo’s Yamanote loop line, for

example, can barely fit on one DVD). To solve this

problem, we processed the data so that it could be

used in PDF files, making it available for anyone to

use without the need for a special environment or

professional knowledge. Because damage can be

analyzed using the images even when the precise

location of a building is not known, the technology

is very useful for carrying out insurance damage

assessments and other tasks.

Securing reliable information—a challenge facing modern society

These days we are all bombarded with

information. Along with everything else,

this includes socioeconomic, geological and

meteorological data as well as health information.

Some people have started to wonder whether all

this information has really made things better.

After the earthquake, many people were not

able to find the precise information they really

needed, despite the sea of information that

surrounded them. For some, even something as

basic immediate physical safety was not secured.

Too many people experienced this kind of

insecurity and frustration in the chaos following

the earthquake.

In these kinds of circumstances, we need

to be able to provide information quickly while

avoiding the danger of overwhelming people

with a deluge of data. What society needs right

now is information that comes from a source

that is clear and whose credibility is easy to

judge. Ensuring the reliability of information is a

challenge that modern society must face up to in

order to mitigate the double-edged sword that

information can become.

Our role, then, is to answer this question: how

can we link advanced information technologies

to safety and security? One example concerns

gene analysis technology. The advance of gene

analysis technology has made the collection of

genetic information easier and faster. If genetic

information and farm records could be provided

alongside agricultural and aquatic products, we

could reassure consumers and stop the spread of

misinformation that can damage the farming and

fishing communities. Despite its massive volume,

this kind of data can be stored on a tiny microchip

and embedded into the packaging of rice, wheat

or any other product.

In this and other ways, Hitachi Solutions is

working to enhance public safety and security by

developing new means of presenting valuable

information so that it can be accessible by all.* The general term for technologies that can make geographical

and spatial information available in a form able to be understood without specialized knowledge for business purposes.

©DigitalGlobe, Inc.

30 31

The October 2010 merger between Hitachi Soft and Hitachi Systems gave birth to Hitachi Solutions, creating a workforce of 10,000-plus

professionals. By drawing upon the individual strengths of each person, we are generating even greater power.

Diverse people and values make the company strong

Misa HisanagaDepartment Manager

Diversity Development CenterPersonnel & General Affairs Group

By ensuring diversity among those who play important roles in the company we will undoubtedly gain a valuable resource.

Yukari TominagaExecutive OfficerDeputy General ManagerDistribution Solution Business Division

V O I C E

Making diversity the driving force to propel us forward into new worlds

The Diversity Development Center is playing a key role in developing an

environment where diversity is accepted and respected and diverse values

can be a potential source of great ideas. We now have a more diverse mix

of people—including women, non-Japanese and people with disabilities—

making full use of their knowledge and skills in positions of high authority and

responsibility in different areas. We will make diversity part of our corporate

culture and the driving force that propels us into new worlds.

Seminar for female leaders

“Working Mother Start!” seminar

Divers i tyNo. 4

Problems facing society Hitachi Solutions

Drawing up a diversity roadmap as a global strategy

Although Hitachi Soft and Hitachi Systems both

belonged to the Hitachi Group and were engaged

in similar activities, the merger revealed to many

employees an unexpected level of differences

between the two companies. Meanwhile, as the

new company is larger, its activities have greater

impact on society.

The promotion of diversity is one of the

keys to solving the challenges facing Japanese

society, such as the perception of stagnation

and the declining birthrate. In the process of

support the career development of female

employees, casual meetings for female managers,

and seminars for working mothers.

We also studied the career goals for different

groups of female workers and found that

their goals and challenges vary depending on

occupation, position and workplace environment.

We therefore provide opportunities female

workers would otherwise not have. For example,

we invited a female manger to a discussion

session where we were able to identify different

types of challenges female employees faced in

their career development. We consider these

cross-organizational and cross-occupational

approaches to be very valuable.

In terms of the globalization of Hitachi

Solutions, the promotion of workplace diversity

is an urgent task. In order to compete in the

global market, in addition to more professional

female employees, we need a more robust

expanding its global businesses, Hitachi Solutions

established a Diversity Development Center in

October 2010 and tasked it with drawing up a

five-year roadmap for diversity promotion.

Hitachi Solutions already provides a

workplace where diversity is appreciated but

we recognize the need to ready ourselves for an

even more diverse environment. Instead of trying

to diminish differences, we must accept and

respect them in order to thrive in this changing

world. By ensuring diversity among those who

play important roles in the company we will

undoubtedly gain a valuable resource.

workforce made up of individuals with diverse

skills, knowledge and backgrounds. By preparing

an environment in which diversity is respected,

the capabilities of all employees can come into

full play.

Hitachi Solutions’s commitment to diversity

can also be seen in our ski team, AURORA, which

was formed in November 2004 as a corporate ski

team for employees with disabilities. Many of the

team’s skiers are top athletes who regularly win

medals at the Paralympic Games and other world

championships. Other employees fully support

the team, with many attending events to cheer

on the skiers, who, by always trying their best

to overcome their physical difficulties and attain

good results, are inspiring role models.

Personally, I don’t think everyone has to

pursue the same career path. I respect the

value of each person and am a big believer in

the motivational boost that usually follows the

Diversity can maximize the value of the most important resource in business—people

Female employees make up 11% of the Hitachi

Solutions workforce. To create a better work

environment for them, we have been setting

goals and working on specific themes, including

career development and work-life balance.

Starting in early 2011, we have intensively

planned and implemented various programs,

including workplace diversity seminars and

training sessions for managers, programs to

development of new skills and knowledge and the

advancement of a career. I want to support people

who are not defeated by perceived limitations and

have the courage to try new things.

Hitachi Solutions views its employees as its

most valuable asset. The individual strengths

and personal development of each employee

provide the energy the company needs to take

on new challenges.

32 33

Hitachi Solutions is contributing to society through its primary business of software development. Based on the principles of harmony, sincerity and a pioneering spirit described in the Hitachi Founding Spirit, we consider conservation of the environment to be an important issue for all humanity and believe we have a duty to address this issue in our business operations.

Aiming to achieve a sustainable society via the key initiatives of “Global Warming Prevention,” “Environmental Use of Resources” and “Biodiversity Conservation,” we are actively promoting our environmental management system based on the following basic policies.

1. We will distribute products and solutions (systems and services) effective in reducing environmental impacts.

2. We will strive to save resources and energy, promote green purchasing and waste reduction, and conserve biodiversity in our business activities.

3. We will strive to improve continuously and control the environmental impact of our activities by establishing our

own environmental management system.4. We will observe all environmental laws and regulations and

other requirements to which Hitachi Solutions agrees.5. We will establish objectives and targets based on our

environmental policy and review them on a regular basis or as necessary.

6. We will inform and disclose this environmental policy to all stakeholders and any person concerned with Hitachi Solutions’s business operations.

7. We will promote educational activities on the environment to foster the development of a workforce of individuals who can spontaneously take eco-conscious actions as members of society.

Note: This environmental policy also applies to Hitachi Soft System Design Co., Ltd., Hitachi System Value, Ltd., CABCARD & SERVICE Co., Ltd., and DACS Co., Ltd. within the Hitachi Solutions Group.

Environmental policy

Environmental Slogan

“Bequeathing a Healthier Earth to Future Generations.”

Upon the launch of the new company in 2010, the Environmental Policy was established based on the

principles described in the Hitachi Founding Spirit: harmony, sincerity and pioneering spirit.

Each fiscal year, Hitachi Solutions sets environmental objectives and review the achievements. The results are reflected in the new targets set for the next fiscal

year. In fiscal 2009, the objectives of reducing electricity and paper consumption were met, with the targeted figures significantly exceeded. In 2010, new

reduction targets were set and also met. The rate of paper recycling increased as a result of thorough sorting of paper waste at offices.

In order to promote environmental conservation activities more effectively and efficiently, we implemented an environmental accounting system that allows us to

identify and quantitatively assess the costs and effects of environmental conservation efforts undertaken in the course of our business activities. Major quantitative

results in fiscal 2010 include a 324.9 Mwh/year reduction in energy consumption. The costs associated with environmental activities from fiscal 2008 to fiscal

2010 are shown in the table below.

Environmental Report

Establishment of the environmental policy

Environmental objectives and achievements for fiscal 2010

Environmental accounting

Communication with local communities/Biodiversity conservation

Recognizing that its responsibility to help protect the global environment is an important one,

Hitachi Solutions takes sound measures by setting objectives for environmental activities and evaluating the results

as well as by performing environmental accounting.

Hitachi Solutions promotes environmental activities

under its Environmental Management System.

We first obtained ISO 14001 certification in 2001

and have since been expanding the number of

organizations that have it. We are scheduled

to obtain certification for the new company in

January 2012.

Environmental management system

ISO 14001 Certification of Hitachi Solutions and Its Predecessors

January 2001 Chubu Branch, Hitachi Systems

March 2002 Head office and Kansai Branch, Hitachi Systems

October 2003 Head office and Life Science Research Center, Hitachi Software

January 2004 Whole company, Hitachi Systems

October 2006Integrated certification for the whole company including larger areas, Hitachi Software

2009Integrated certification for the affiliated companies of Hitachi System and Hitachi Software

January 2012 Integrated certification for the new company (scheduled)

: Achieved : Partially achieved ×: Not achieved

Goal Target for fiscal 2010 Achievement in fiscal 2010 Result

To offer products and services that contribute to the reduction of environmental impacts

Software To increase sales by 50% from the previous year. Sales were increased by 50.8%.

To implement environmental efficiency assessment for the total product life cycle. Assessment was conducted for 14 solutions.

Hardware

To maintain zero content of specified chemical substances in own products. Zero content was maintained.

To observe REACH*1 and other domestic and international environmental laws and regulations.

Studied the contents of harmful chemical substances in our hardware products in accordance with the EU’s REACH regulation. No such substances were found in products currently on the market.

To observe domestic and international laws and regulations governing shipment and related procedures for our hardware products.

RoHS*2 authorization: 5 modelsAuthorization of suppliers who manufacture our hardware products: 2 suppliersGreen supplier authorization of other companies who manufacture our hardware products: 3 companies Related procedures: 18

Resource conservation, energy saving and green procurement

To reduce paper consumption (by cutting down on printing, etc.) by 2% from the fiscal 2009 level.

Reduced by 8.8%.

To reduce electricity consumption (by switching off unnecessary lighting, etc.) by 1% from the fiscal 2009 level.

Reduced by 1.8%.

To reduce burnable waste (by sorting waste) by 7% from the fiscal 2006 level (head office).

Reduced by 16%.

To increase green procurement to at least 90%. To buy green products. Rate of green procurement increased to 97.8%.

Biodiversity conservation / Development of a workforce of individuals who willingly take voluntarily actions to protect the natural environment

To promote rural landscape and forest conservation activities through volunteer programs.

Rural landscape and forest conservation activities and street cleanup programs were conducted as planned.

*1 REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals. A comprehensive system instituted by the EU. *2 RoHS: Restriction of Hazardous Substances. EU directive to identify specific hazardous substances contained in electric and electronic products and restrict their use.

Environmental conservation costs (million yen)

Type of costs Specific use Fiscal 2008 Fiscal 2009 Fiscal 2010

Business related costs Waste recycling, energy saving, waste management, etc. 36.5 44.4 54.5

Costs related to areas upstream and downstream of distribution Procurement of environmental products, packaging measures, etc. - - -

Management activity related costs Environmental education, operation and maintenance of EMS, R&D, etc. 161.9 177.7 161.1

Costs of social activities PR efforts for social activities, environmental conservation activities, etc. 6.3 5.2 6.1

Costs related to environmental damage Fee for contamination load, etc. - - -

Total 204.7 227.3 221.7

We actively take part in activities in our local communities.

As a result of their environmental activities, our Tokyo head

office and some of our regional offices are recognized by

local authorities as “eco companies.”

Street cleanupTwice a month, employees of Hitachi Solutions and its group

companies volunteer to clean up Geneva-heiwa Street, a public

road between our head office and the Keikyu Aomonoyokocho

train station. For this activity, Hitachi Solutions was named an

authorized volunteer group and concluded an agreement under

the Adopt Program* with the Tokyo Metropolitan Government.

Employees of regional branches of Hitachi Solutions are

also participating in street cleanup programs. In fiscal 2010, a

total of 1,261 employees volunteered in these activities. * Cooperative beautification program conducted by citizens and local authorities.

Biodiversity conservation activities In cooperation with an NPO dedicated to conserving Tokyo’s

rural landscapes and forested areas, we conduct tree

thinning, seedling rejuvenation and grass trimming in forests

in the Oya area of Hachioji and revitalize idle rice fields in

Yokosawairi in Akiruno. The land we work on is owned by the

Tokyo Metropolitan Government.

In Hokkaido, our employee volunteers participate in

the removal of alien plant species and grass cutting. Similar

volunteer activities by Hitachi Solutions employees are

conducted throughout the nation.

Through these programs, Hitachi Solutions employees

contribute to the maintenance and conservation of local

environments while learning to appreciate the value of nature.

Environmental activities in cooperation with local authorities

Branch offices, etc. Participation in and registration for programs by local authorities

Head office and surrounding area

Tokyo[Authorization] Eco Power Company (Shinagawa Ward)[Registration] Environmental ISO Company Network (Shinagawa Ward)

Yokohama [Registration] Kanagawa Eco Network

Area operationsChubu Area Operations [Authorization] Eco Company (Nagoya City)

Kansai Area Operations [Registration] Kansai Eco Office Declaration

Larger areas

Hokkaido [Registration] Sapporo Eco Member

Hirosaki[Authorization] Eco Office (Hirosaki City)[Registration] Promotion of Environmentally Friendly Offices in Aomori Prefecture

Kyushu [Registration] Fukuoka Prefecture Eco Office Declaration

Rice planting after recovering an idling rice field (Yokosawairi, Akiruno)

Cleanup in a park and walkways around the park (Omori)

Thinning in a forest (Oya, Hachioji)

Street cleanup (Geneva-heiwa Street)

For other environmental reports and detailed data, please see our Website. http://www.hitachi-solutions.com/company/csr/eco/

October 1, 2010

Masahiro HayashiPresident and Chief Executive Officer

Hitachi Solutions, Ltd.

34 35

Third-party Review CSR Communication

About the Hitachi Solutions CSR Report 2011

Website iPhone application

Hitachi Solutions CSR Report 2011 is the first CSR report issued

by Hitachi Solutions Ltd., which was established by the October

2010 merger of Hitachi Software Engineering Co., Ltd. and Hitachi

Systems & Services, Ltd. In putting this report together, we focused

on readability and functional page design to effectively introduce the

new company to readers. We also tried to give the pages a friendly

appearance by including interviews and photos of our employees.

Our overall aim in publishing this report is to clearly deliver our

message to our customers and other stakeholders, whom we expect

to be its main readers.

This report includes details on original measures taken by

Hitachi Solutions based on the CSR Policy of the Hitachi Group

and our business activities designed to help solve the issues

facing society. We hope the readers of this report understand that

our corporate principle perfectly articulates our concept of CSR:

“Hitachi Solutions will contribute to the growth of our customers

and the global community, by supplying dependable technologies

and advanced solutions.”

We publish the Hitachi Solutions CSR Report 2011 as a digest to

introduce our ideas and activities to stakeholders. More comprehensive

and specific information can be found on our Website.

The Website presents more comprehensive and specific information

about our CSR measures that is not included in the CSR report. The

latest news is also reported as “CSR News” on the Website. We are

committed to actively disclose information to our stakeholders.

Hitachi Solutions’s iPhone application is a tool that makes possible deeper

communication with our customers, students and other stakeholders.

The free iPhone application contains a book viewer tool for reading this

report, along with links to other Websites, such as “Hitachi Solutions in

Numbers,” “Information Security Blog” and the “IT Term Dictionary.”

The application is available in the App Store. To find it, please search the

keywords “Hitachi SOL” or “Hitachi Solutions” in Japanese.

This review was conducted based on the contents of this report as well as interviews with company managers in the areas of environmental

management, quality control, human resources, procurement, information security and CSR. The attitude and practices on CSR by Hitachi Solutions

have triggered the development of a PDCA cycle (management cycle) with a focus on improving the workplace environment for employees.

Hideto DeDe KawakitaCEO

International Institute for Human, Organization and the Earth (IIHOE)

International Institute for Human, Organization and the Earth (IIHOE): An NPO established in 1994 “for the democratic and balanced development of all the lives on the Earth.” In addition to its main activity (providing management support for citizen groups and social enterprises), IIHOE has also been involved in supporting leading companies in their CSR. http://blog.canpan.info/iihoe/ (Japanese only)

Hitachi Solutions promotes CSR in accordance with our management policy. In order to perform the PDCA cycle effectively, we target issues and set

goals based on the CSR Policy of the Hitachi Group. As an executive officer in charge of CSR, I recognize the importance of correctly understanding the

expectations of various stakeholders and meeting those expectations.

We asked Mr. Kawakita of IIHOE to review our CSR performance so that we can identify any issues and improve our activities. Based on the review,

we will work to improve each division’s understanding of CSR and make our measures more visible, while continuing to play our part in the important

task of reducing society’s environmental impact by developing and offering “eco solutions.” In addition, we will raise employee awareness regarding

“CSR procurement” and ensure self-motivated management of orders both made and received.

Response to the Third-party Review Kenryu Nagano

General Manager, CSR GroupExecutive Manger and Operating Officer

n Information is reported both in the CSR Report and on the Website.

Sig

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can

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stak

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Significance for Hitachi Solutions

Reported on the Website“Unabridged version”

Reported in the CSR Report“Digest version”

Hitachi Solutions’s CSRhttp://www.hitachi-solutions.com/company/csr/

l Hitachi Solutions provides a workplace environment where employees

can continue working despite changes in their personal lives. This is

proved by the high percentage (1.97%) of employees who make use of

the systems for unpaid leave, shorter working hours and work-from-home

arrangements designed to help those taking care of young children and

elderly parents. When the employees who use the leave system to take

care of sick or injured family members are added in, the rate is even

higher, at 4.93%. In addition, employees have options other than taking

leave. For example, flexible working hours are also provided to enable

employees to meet their outside obligations without taking a full day off

work. To further promote better a work-life balance, the experiences of

those who have utilized the systems to take care of elderly parents or for

other purposes should be shared with other employees.

l After the massive earthquake and tsunami hit the Tohoku area, Hitachi

Solutions was quick to donate its products and services, including satellite

images and GeoPDF files (p. 15, 28-29). By providing ongoing support to

people in the affected areas, needs that would otherwise be missed were

identified, leading to the development and improvement of services as

well as human resources development.

l Hitachi Solutions reviews its measures based on the CSR Policy of the

Hitachi Group (p. 16-21). The items, standards and questions in the

evaluation program should be revised so that the departments, which

form the frontlines of CSR, can review and evaluate their own measures.

l StarBoard interactive whiteboards acquired the Carbon Footprint Mark,

evidencing Hitachi Solutions’s efforts to reduce CO2 and other greenhouse

gases (p. 26-27). However, I recommended that Hitachi Solutions disclose

its short- and middle-term contributions to the Hitachi Group’s Long-term

Environmental Management Plan “Environmental Vision 2025” (to reduce

CO2 emissions by 100 million tons/year from the fiscal 2005 level by fiscal

2025 through product development).

l Counseling systems to manage employee mental health have been

developed. Further measures, especially measures to prevent the

recurrence of problems, should be taken.

l Green procurement is conducted fairly with respect to stationery and other

office items that are purchased for use at Hitachi Solutions offices (p. 21).

However, nearly half of the ordering and management of items, including

servers, that are delivered to clients cannot be verified as conforming to

the standards and principles of environmentally and socially responsible

procurement. This is seemingly a problem for information departments

throughout the entire Hitachi Group and measures in cooperation with

other group companies are necessary.

Areas of admirable performance

Areas where further efforts are needed

Areas where improvement is recognized but further efforts are needed

High

High

CSR Report 2011

4-12-7, Higashishinagawa, Shinagawa-ku, Tokyo 140-0002, JapanPhone: +81-3-5780-2111http://www.hitachi-solutions.co.jp/

Inquiries:CSR Promotion Department Corporate Communications Division Phone: +81-3-5780-6450Fax: +81-3-5780-6455