Environmental Management Status

The Hitachi Cable Group formulates an Environmental Action Plan every year, and by reviewing the level of achievement of the plan the Group strives to manage its environmental conservation activities in a strategic manner.

Environmental Management Structure

The Hitachi Cable Group has established a Companywide Environmental Committee and project-specific subcommittees to promote related activities. The Companywide Environmental Committee consists of such members as representatives of works, Group companies, subcommittees, the Corporate Social Responsibility Office and the Procurement Center. The committee prepares blueprints for annual Hitachi Cable Group Environmental Action Plans, reviews and evaluates achievements, runs the PDCA cycle to study possible improvements, and discusses common challenges toward protecting the environment. The Company's Executive Committee deliberates on the annual plan blueprints, and with the approval of the Executive Committee, those blueprints are established as the Hitachi Cable Group Environmental Action Plan.
Also, the Company has established the Environmental Center under the Corporate Quality & Environment Group as an organization tasked with Groupwide environmental management. The Environmental Center disseminates the Company's environmental policies and other related information to individual works and Group companies, while compiling data on results of environmental activities throughout the Group. In addition, the Environmental Center has been included in the scope of ISO14001 environmental management system certification obtained by the Hitachi Group Environmental Operation Organization. Accordingly, the Environmental Center, as an organization in charge of environmental management within the Hitachi Cable Group, is advancing environmental activities that are closely linked with those promoted by the Hitachi Group.
Meanwhile, individual works and Group companies of Hitachi Cable are implementing environmental conservation activities based on the Hitachi Cable Group's Action Guidelines for Environmental Conservation. The scope of these activities is governed by the scope of ISO14001 certification. In other words, these activities are conducted for the entire works or company, or for applicable facilities.

ISO14001 Certification Status

As of April 2010, a total of 25 domestic and overseas subsidiaries of Hitachi Cable have received ISO14001 environmental management system certification, three less than in FY2009. This decrease reflected mergers and transfers of affiliated companies during FY2010. More specifically, one domestic subsidiary and two overseas subsidiaries have been removed from the scope of ISO certification.
Also, the Hitachi Group Environmental Operation Organization, which consists of the environmental promotion offices of Hitachi Group companies, has acquired ISO14001 certification. This organization includes the Environment Center of Hitachi Cable.

Hitachi Cable, Subsidiaries and Affiliates under Integrated Certification

Number of Certificates Number of Certified Hitachi Cable Sites Subsidiaries/Affiliated 3 6 9

Domestic and Overseas Subsidiaries

Number of Certificates Domestic Overseas 8 14

Hitachi Group Environmental Operation Organization

Scope of Certification Certified Body at Hitachi Cable Hitachi Environmental Strategy Office and environmental promotion offices of Hitachi Group companies Environment Center, Corporate Quality & Environment Group

Status of External Environmental Communications

During FY2010, the Hitachi Cable Group faced one case of administrative guidance and received two complaints.
More specifically, Hitachi Cable's Takasago Works received administrative guidance in the form of a warning statement from the local sewage department regarding excessive fluorine concentration in its sewage water. This incident was caused by accidental discharge of fluoronitric acid, used for cleansing containers handled in production processes, into the sewage system. As a countermeasure, the Takasago Works separated drainage and sewage systems while it conducted modification work so that drainage water is discharged into a dedicated tank. At the same time, the works provided all employees involved with an educational program to reconfirm proper work processes, emergency reporting and response procedures.
Two complaints related to the noise generated by Hitachi Cable's Densen Works and Hitachi Cable Film Device, Ltd. were received from local residents. The Densen Works received a noise-related complaint from the same resident in FY2009. In response, the Densen Works conducted noise measurement tests and analysis in the area surrounding the works. Based on the test results and analysis, we implemented noise-reduction measures for the facilities that we concluded were the source of the noise, while slowing down night-time operations. Following receipt of the complaint during FY2010, we conducted noise measurement tests and analysis again and provided the resident with clear explanations about the noise-reduction measures that we were implementing. As for the noise complaint received by Hitachi Cable Film Device, apparently the noise emanated from a crushing plant when a door was left open. We explained the cause of the noise to residents and that we would keep the doors of the crushing plant in operation closed. They fully understood our efforts, and the situation was settled.

Administrative Guidance and Complaints

Category FY2007 FY2008 FY2009 FY2010 Instructions 2 1 0 1 Complaints 1 1 3 2

Environmental Education

Seminar on chemical substances for new employees (Hitaka Works)

As a means to improve employee awareness of compliance with environmental laws and regulations and environmental protection, we conduct general education for all employees, position-specific education and advanced education. Through the general education for all employees, we offer environmental e-learning updated every year, as well as introductory and explanatory articles through publications for employees and their families. Ninety-four percent (5,228 employees) of all Group employees on a global basis to whom environmental education is available have taken the FY2010 version of the environmental e-learning course. Meanwhile, with the aim of strengthening employees' understanding of ISO and the environmental management system (EMS), we hold meetings to explain objectives and targets as well as implementation schemes at individual works and Group companies included in the scope of ISO and EMS certifications. With regard to advanced education, we offer courses aimed at preventing environmental pollution anticipated from individual operations and at upgrading the skills of internal EMS auditors.

Category Activity General Education Environmental e-learning education Environmental policy/objective/target presentations ISO education Environmental lectures Publication for employees and their families Position-Specific Education Manager and supervisor education Middle-ranking employee education Education for newly employed Advanced Education Advanced environmental education Education relating to specified operations Internal EMS auditor education Department-Specific Education Education on chemicals management Education on chemical products regulations Education on waste sorting and disposal

Number of Employees Who Have Taken e-Learning Course

Environmental Auditing

Internal ISO14001 audit (conducted at J-Power Systems Corporation located within the Hitaka Works)

Through environmental auditing conducted at each works during FY2010, we audited the status of compliance to relevant laws and regulations as well as to regulatory allowable values in the areas of wastewater discharge, discharged air quality and noise. At the same time, we examined results of internal environmental audits conducted at the works and Group companies included in the scope of ISO14001 certification. Through the audit of the status of compliance to regulatory allowable values, we confirmed reports on one case of excessive noise value and two cases of violation of voluntary control values in noise and sewage water quality. We also confirmed that all these three cases have been solved. Through the examination of results of internal environmental audits conducted at applicable works and Group companies, we inspected items that were determined to be non-compliant. These items were cases that were minor or subject to continued observation, such as failure to fill out certain forms. For these cases, management review has been appropriately performed. Through these auditing and checking processes, we confirm compliance, risk management and the effectiveness of systems throughout the Group.

Category Description Audit of Legal and Regulatory Compliance Subject 15 works Violation of regulatory allowable values 1 case Violation of voluntary control values 2 cases Examination of Results of Internal ISO14001 Audits Subject 9 ISO14001-certified units (groups of manufacturing bases) 169 divisions and departments Violation 24 cases Improvement required 72 case

Risk Minimization through Environmental Facility Checkups/Emergency Drills

All works conduct risk checks on environmental facilities and emergency drills every year.
In FY2010, we: (1) inspected risk items identified through inspection conducted during FY2009; (2) confirmed that there are no leaks in oil and chemical solution tanks, breakwater, chemical storage, exhaust gas treatment towers, and wastewater processing facilities; (3) inspected factors for risks of pollution through daily operations; and (4) inspected systems and procedures required to minimize the negative impact of such emergency situations as earthquakes, winds, floods and other natural disasters, accidents and operational mistakes. Also, we conducted emergency drills for spill prevention on the assumption that oil or chemical solutions had leaked within individual work sites. Another example of emergency drills was for the boiler departments at individual works, allowing them to practice response measures on the assumption that a photochemical smog advisory had been announced.
Based on the results of checkups and drills, all Hitachi Cable works are moving to improve the facilities that require attention, reducing the risk of pollution and contamination.

Environmental Management Evaluation System, GREEN21 Ver 3

Based on the Hitachi Group's unique evaluation system for environmental measurement, "GREEN21," Hitachi Cable evaluates environmental management levels and Environmental Action Plan achievements in eight categories. Under this system, the Company is promoting activities aimed at achieving 1,280 Green Points (GPs) in FY2011. For FY2010, the Hitachi Cable Group set the target of 1,152 GPs and managed to record 1,194 GPs, up 60 GPs compared with 1,134 GPs recorded in FY2009. By category, Eco-Management/Environmental Management showed a year-on-year improvement, reflecting the promotion and achievements of the Environmental Action Plan. Environment-Friendly Products also showed an increase in GPs, owing to successes in activities to register environment-friendly products and in the management of chemical substances contained in products. However, increases in GPs for other categories have slowed down. In response, for FY2011, ending March 31, 2012—the final year of the current CSR Medium-Term Targets—Hitachi Cable will promote new initiatives to improve GPs in Environmental Collaboration with Stakeholders and other categories that lag behind those with higher GPs. In this way, the Company will work to enhance its environmental management in a more comprehensive manner.

Green Point Evaluation Results

Categories and Evaluation Items

Category Major Evaluation Items Eco-management environmental management Environmental Action Plan, environmental accounting, compliance with laws and regulations Eco-mind Environmental education of employees Environmental-Friendly Products Eco-design management, environment-friendly products Green Procurement Supplier selection, use of green procurement system Next-Generation Product/Service Strategies Eco-products strategies, sustainable business models Eco-Factory (Global Warming Prevention) Energy-saving at factories, energy-saving in transportation Eco-Factory (Resource Recycling) Waste reduction, chemicals management Environmental collaboration with Stakeholders Information disclosure, award applications, global citizenship activities