Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Hitachi Rail
Corporate Social
Responsibility andSustainability Report

2021

Hitachi RailIThe report covers
Period. The main period covered is fiscal 2020 (April 1, 2020, to March 31, 2021)
Note. Some information on activities in April 2021 and after is also included.
Company perimeter. This edition covers Hitachi Rail’s global activities, including Japanbusiness.
Social data. The boundary of data indicated under each indicator. Reporting Cycle.
Published every year as an annual report.
Date Published. November 2021
CSR&S contacts global team: csr@hitachirail.com

Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

INDEX
Introduction

The Hitachi Rail Corporate Social
Responsibility and Sustainability
4
Report»Foreword from the Andrew Barr, Chief Executive Officer

5»

Introduction

7

Hitachi Rail Identity

8

Ethics and Integrity

48»

Code of Ethics

48»

Whistleblowing

49»

Anticorruption

50»

Organizational, Management and Control Model

51»

Competition Law

51»

Modern slavery

52»

Gender pay gap report

52»

Export and trade compliance

53

Stakeholders engagement

54

Involvement with local communities

55

57

»

Business, Products and Solutions

9»

Mission, vision and values

10»

Global Presence

12»

Sustainability topics and contribution to SDGs

13»

Materiality Analysis

15»

Materiality Matrix

17

Hitachi Rail Corporate Car Sharing

Partnerships for sustainable development 59»

Sustainability of the Kasado site

20»

Corporate Governance20»

Commitment to the UN Global Compact

59»

Our People

20»

Industry associations

60»

Risk management

21»

Taxonomy and Green Finance60»

The Environment

22»

Sustainable Supply Chain

23»

Commitments for the future23»

Responding to Coronavirus

24

Sustainability Governance28»

Sustainability Steering Committee

29»

Global Business Management Systems

30»

New COSMO AREA

31»

Health, Safety and Environment (HSE) Management System

32»

Quality, Health, Safety and Environmental certifications

33»

Delivering a sustainable, safe andhigh-quality railway business

35

Hitachi Rail contribution to Net-Zero

37

Road map to sustainability

37

EcoVadis

41

Sustainability risks and opportunities

42»

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Environmental

62

Environmental vision and targets

63

Environmental policy

63

Towards a low-carbon society

66»

Hitachi Sets New Target to Contribute to a Net Zero Society

67»

Eco-Design in Hitachi Rail68»

Social Life Cycle Assessment of products: the first train
application

72»

Sustainable Facility

76»

GHG emission reductions at production sites and offices

77»

Carbon Management System (CMS)»

Direct and indirect greenhouse gas emissions»»

Variance analysis of FY20 divergences vis a vis FY19»

Performance-based incentive systems

132»

Employee relations management132»

Occupational Health and Safety

133»

Activities and results

134

Social Innovation

135»

Innovation management

135»

A team dedicated to innovation

136

Value Chain Management

140»

Management of customer satisfaction

140

79

»

Customer communications

141

80

»

Supply Chain

143

82

»

Digital Supply Chain Management

146»

Supplier mapping

146»

Monitoring Activities

147

Towards a resource efficient society

89»

Energy consumption

89»

Energy consumption trends

90»

Renewable energy

91»

Consumption of substances and materials

92»

Water management

Glossary and Main Acronyms
contained in the documents

148

94

Methodological Note160

Towards a harmonized society with nature 96

GRI CONTENT INDEX163»

New Circular Economy Business Model Project97»

Waste and effluents

98»

Polluting emissions

100

Social101

Human capital

102»

Talent acquisition

105»

Diversity, inclusion and multiculturalism

107»

Training and performance appraisal

110»

Employee Engagement

114»

CSR&S e-learning

115»

Amplify the internal Culture as Climate Change Innovator

116»

Think responsibly, act sustainably

117»

Internal communication

117»

People Care

118»

Employee initiatives

119»

Mobility

127»

Parental leave

128»

Protected categories

130»

Remuneration systems

131

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

The Hitachi Rail Corporate Social
Responsibility and Sustainability
ReportThis report seeks to both open and continue dialogue and engagement with our Stakeholders
through comprehensive information disclosure.
The report is based on the disclosure requirements of the GRI Sustainability Reporting Standards (GRI
Standards) and our experience on materiality analysis promoted during the last years.
In creating the report and referring to the industry disclosure standards, Hitachi Rail answers to both
our clients and the needs of the travelling public – giving concrete knowledge of company solutions
and commitment as a climate change innovator.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Foreword from the Andrew Barr, Chief Executive Officer
We believe we need to think differently about transport in the 21st century.
The world’s growing population, particularly in cities, and the indisputable challenge of climatechange, has seen Hitachi put sustainability at the heart of its business strategy.
We are committed to becoming a climate change innovator. Creating net zero, sustainable
solutions to decarbonise transport around the world. Where railways are not already electrified,
we are designing and building new battery and hybrid trains and trams to cut diesel emissions.
Elsewhere we are delivering whole new sustainable railways to help protect the environment now
and for a net-zero future.
We believe the future of transport will be
driven by digitising and fully-integrating theentire mobility system to improve the whole
passenger journey. By digitally connecting
everything – from trains, signalling andinfrastructure, to operations, maintenance andpassenger-interfaces – the complete system
can be planned, managed and optimised.
Couple this with the power of AI and Hitachi’s
world-class engineering, and we can deliver a
step-change in service.
Passengers can enjoy new levels of reliability, capacity and connectivity – meaning faster,smoother and easier journeys – but also a smart mobility system that works together as one.
The goal is to make public transport the first preference for travel; the attractive option whether
travelling within cities or long distance. By putting the passenger first through connected mobility,
we are moving people away from cars and planes and onto trains. We want every passenger,
customer and community to enjoy the benefits of more seamless, sustainable mobility.
Hitachi recognises that tackling climate change is fundamental to our moral and corporate
mission. For that reason, we’ve signed up to the UN Sustainable Development Goals andcommitted to achieving ambitious 2050 decarbonisation targets.
We’re taking this seriously. Earlier this year, the Hitachi Group announced that it is committed toachieving carbon neutrality at all its business sites by 2030 and across the company’s value chain
by 2050.

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Committing to net-zero means Hitachi Rail’s own business must reduce its environmental
footprint. I’m pleased that in this year’s report we have delivered significant reductions against
the previous period. Our greenhouse emissions are down 30.5%. We also know we have more todo.
Making a difference to climate change is not easy, and it will take a huge collective effort from allof us, but it is a challenge we must rise to. Hitachi is in the unique position of having technologicalleadership to innovate the experience of the whole system and at the global scale to implement
major change. This places a particular responsibility on us to tackle the problems of our timehead-on – and inspire the next generation of transform mobility – now and for a net-zero future. for the benefit of the next generation.

Andrew Barr
Hitachi Rail Group CEO,
Vice President and Executive Officer, Hitachi Corporate

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Introduction
Hitachi Rail’s mission is to transform mobility so that every passenger, customer, and community
can enjoy the benefits of seamless and sustainable journeys.
We are experts in every part of the railway, from building products of the highest quality, todelivering connected solutions that improve transport services worldwide.
Our global scale and experience mean we can deliver every aspect of a railway for our customers
from manufacturing trains, to delivering the signalling infrastructure, to ticketing, maintenance,and operations.
Customers are increasingly looking for partners and suppliers that can provide integrated
solutions with a full-service offering. Last year, to leverage the whole capabilities of the Group,
Hitachi Rail completed full integration of its global organisation, thus allowing it to offer customers
a full suite of rail products, services, and solutions based on common standards and processes.
Hitachi Rail is present in 38 countries, with around 12,000 employees working on projects or atmanufacturing and maintenance sites across six continents.
Delivering for the passenger is at the heart of our business, with more than 18bn journeys
completed worldwide every year using Hitachi Rail’s technology.
We have seen that one of the consequences of Covid-19 is that customers around the world
have accelerated their desire to decarbonise and digitise their transport systems.
To cater to those needs, Hitachi Rail is pursuing a strategy of pioneering sustainable, digitalconnectivity. The approach focuses on delivering high-quality rail products and connecting
transport systems digitally so that passengers and customers can optimise journeys to maketrains and mass transit systems the first choice for travel.
The Company is focused on decarbonising our business too. Hitachi Rail is committed toreducing the carbon footprint of our business sites to zero by 2030. Through our procurement
approach, we are working with our supply chain partners to embed sustainability into theirbusinesses to achieve carbon neutrality by 2050.
Hitachi Rail aims to become a climate change innovator, offering sustainable transport and abusiness that protects our environment now and for a net-zero future.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Hitachi Rail Identity

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Business, Products and Solutions
Hitachi Rail has a unique position as a global player in the railway sector: it is an integrated groupcapable of offering rail solutions across rolling stock, signalling systems and digital technology,
service & maintenance activities, as well as building whole new railways internationally.
The strength of the Hitachi Group means that our partners, with our sister companies, like
GlobalLogic, Hitachi Energy or Hitachi Vantara, are set to develop joined-up digital solutions to meet
our customers’ different needs.

Rolling Stock
Hitachi Rail has over 100 years’ experience of delivering for customers and passengers. With
our engineering excellence and commitment to innovation, the teams work in partnership withcustomers to improve the passenger experience across all of our rolling stock products. Our designs
aim to be, accessible to all, positively impact society, and improve people’s daily lives.

Operation, Service & MaintenanceThe central goal of the OS&M Department is to deliver best-in-class services designed to maximize
product life cycle, support customer’s operations readiness processes, and enhance the customer
experience with innovative digital solutions. Hitachi Rail provides pioneering solutions across a
range of services from Service & Maintenance (S&M) for both rolling stock equipment and legacy
signalling installations. With our expertise of building and maintaining every part of the rail systems,
Hitachi Rail is uniquely positioned to run the day-to-day operations of railways on behalf of transit
authorities; which is exactly what the Companyis doing in Copenhagen, Honolulu and Riyadh.

Digital Signalling & Systems
Hitachi Rail designs, manufacture, installs and commission signalling components, systems andintegrated mobility solutions for the management and control of the new and upgraded railway,
transit and freight lines. Globally, the company’s teams support clients with every type of signalling
solution, which allows us to have a holistic view of a railway operation, improving performance andrevenue efficiencies.
Hitachi Rail’s solutions offer the latest in signalling technology and have taken network safety,
reliability and efficiency to new levels.

Turnkey
Hitachi Rail is a leader in designing and building whole new railways – either individually or as part ofa consortium – worldwide.
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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Hitachi Rail has a particular specialism in delivering automatic and fully automated train
operations (ATO), having built the award-winning Copenhagen metro and now delivering
automated metro railways in Riyadh and Honolulu. Hitachi Rail’s automatic transportation
systems are designed with the whole-life cost at the forefront, meaning the solutions provide
high-performance levels, increased capacity, high levels of safety and service availability andimprovements to passenger satisfaction.
The company has the capability to work as a special contractor or as a leader in joint ventureswith civil work companies and other rolling stock manufacturers. Hitachi Rail works with awide range of global suppliers in partnership to solve each project’s challenges to meet the
expectations of the client and achieve a high level of customer satisfaction throughout.

Mission, vision and values
Hitachi Rail’s mission is to contribute to society by developing superior, original technology thatenables more seamless, sustainable journeys for passengers around the globe. With our corevalues of harmony, sincerity and pioneering spirit, our teams partner with customers, cities andcommunities to design, engineer, operate and maintain fully integrated transport infrastructure.
The Company is unique in how its pioneering partnerships brings innovation and expertise fromthe Hitachi group and its wider partner ecosystem.
Our vision is that every passenger, customer and community around the globe can enjoy thebenefits of more seamless, sustainable journeys.
The Company’s beliefs and actions are guided by a clear mission, vision and values. Hitachi
Rail takes pride in holding itself and its projects to the highest standards, and the values provide
benchmarks to evaluate successes and opportunities for improvement.
Initially set by Hitachi founder Namihei Odaira, the Hitachi Mission has been carefully passed on
to generations of employees and Stakeholders throughout the company’s 110-year history.
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Mission
Hitachi Rail’s mission is to contribute to society through the development of superior, originaltechnology that enables more seamless, sustainable journeys for passengers around the globe.

VisionOur vision is that every passenger, customer and community around the globe can enjoy thebenefits of more seamless, sustainable journeys.

ValuesWa (Harmony) The need to show respect to colleagues, suppliers, clients and Stakeholders.
The company shows respect to earn respect.
Makoto (Sincerity) To act with integrity in all words and actions, exemplifying the fact thatsincerity lies inholding to stated values.
Kaitakusha – Seishin (Pioneering Spirit) This means to lead with ambition, to seek newchallenges; and to be unafraid of flexibility and adaptability to the changing needs of thebusiness.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Global Presence
Hitachi Rail is present in 38 countries and six continents.
With around 12,000 employees, Hitachi Rail believes that a culture of sustainability is bestpractice; combining clear goals and plans for the development of the business with our staff’s
personal and professional growth.
Global Head Office

Headquarters

Hitachi Rail Ltd
7th Floor, One New Ludgate,
60 Ludgate Hill, London
EC4M 7AW

Hitachi Rail SpA Via Argine, 425, 80147 Napoli (NA)
Hitachi Rail STS Via Paolo Mantovani 3-5, 16151 Genova(GE)

Hitachi, Ltd. Headquarters Akihabara Daibiru Building,
1-18-13, Soto-Kanda, Chi- yodaku, Tokyo, 101-8608
Main Offices
Hitachi Rail STS:

Hitachi Rail Honolulu JV

EspañaAB Engineering, Operations and Projects Office - UK

Hurontario

Hitachi Baltimore Rail Partners, LLC Hitachi

Mobilinx

Hitachi Rail STS Australia Pty Ltd.

TorinoEngineering, Operations and Projects Office - Malaysia
Sdn Bhd

NapoliDeutschland Gmbh
SwedenHitachi Rail STS India Private Limited
Hitachi Rail STS Railway Signaling Technology (Beijing) Co.
LimitedHitachi Rail STS Hong Kong LTD

Maintenance Centres

PlantsHitachi Rail Ltd.:

Hitachi Rail STS France- Riom

Doncaster Ashford

Hitachi Rail STS - Tito

Stoke Gifford

Hitachi Rail SpA - Reggio Calabria

Craigentinny

Hitachi Rail SpA - Pistoia

Swansea

Hitachi Rail USA - Miami

North Pole

Hitachi Rail STS USA, Inc - Batesburg

Bounds Green

Newton Aycliffe Manufacturing Facility

Hitachi Rail S.p.A. - Denmark PE.

Hitachi, Ltd. - Mito Works

Hitachi Rail SpA/STS Naples

Hitachi, Ltd. - Kasado Works

Hitachi Rail SpA Florence
Hitachi Rail SpA Milan
We hereby remind that the companies Hitachi Rail STS S.p.A. (HRSTS) and Hitachi Rail S.p.A. (HRI) executed an intercompany reorganization
program consisting in the merger by absorption of HRI into HRSTS.
The Merger is effective from May 1st, 2021.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Sustainability topics and contribution to
SDGs“Hitachi Rail will reduce its environmental impact, develop a sustainability culture and improve qualityof life for our people and communities” (A. Razeto, Group Head of CSR and Sustainability)
The UN Environment Programme’s Emissions Gap Report 2020 found that global greenhouse gas(GHG) emissions hit a new high of 59.1 gigatonnes (Gt) of CO2 equivalent in 2019.
Over the past decade, emissions have continued to increase at a rate of 1.5% per year, rising in all
major economic sectors.
Particularly, a closer look at GHG emissions breakdown by economic sector reveals that:
•
•

•

•

•

Power production today generates the largest share of GHG emissions (30%). About 50%of electricity comes from burning fossil fuels, mostly coal and natural gas.
Industry represents the second-largest share of GHG emissions (21%), burning fossil
fuels for energy, as well as GHG emissions from mineral products (such as cement) andother chemical reactions necessary to produce goods from raw materials.
The Transportation sector contributes around 16% of global GHG emissions, with roadtransport being primarily responsible (94% of the sector). Rail, shipping and aviation are
relatively smaller, with emissions in international territory comprising 4% of total.
Agriculture contributes 16% of total GHG emissions, with most emissions coming fromenteric fermentation (ruminant animals, such as cattle), nitrogen fertilizers on agriculturalsoils, and municipal waste.
Buildings contribute to 7% of global GHG emissions, arising primarily from fossil fuels
burned for heat.

Should this pattern continue, the world is projected to warm by 3°C to 5°C by 2100, withcatastrophic effects on human civilization.
To prevent this risk, a major turnaround in emissions trajectories is needed in all sectors (reduction of
approximately 3-6% per annum between now and 2030) to limit the rise in surface temperatures andavoid catastrophic climate change effects.
In 2015, world leaders met in Paris and agreed to limit the global temperature rise by the end of the
century to well below 2°C and to pursue efforts to limit the temperature increase even further to 1.5°C.
According to the Intergovernmental Panel on Climate Change (IPCC), limiting global warming to 1.5°C
requires net human-caused carbon dioxide (CO2) emissions to fall by 45% by 2030 and to reachnet-zero by 2050. Even limiting the temperature rise to 2°C will need CO2 emissions to fall by 25%
by 2030, requiring a turnaround of the present trend and approximately $75 trillion in investment.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

In 2015, the United Nations presented 17 Sustainable Development Goals (SDGs) to be achievedby 2030. Combined with the company mission to contribute to society through the developmentof superior, original technology and products that power sustainable connectivity, Hitachi Rail iswell-positioned to make a meaningful contribution to achieving the selected SDGs. Sustainability
is at the heart of our business; we have an obligation to inspire and build a better and moresustainable future for employees, customers, and all users of products.
The Company has three major levers to tackle climate change:
1.

Reduce GHG emission (Increasing the efficiency of the operations and reducing
Supply chain emissions).

2.

Risk Management (Updating investment criteria and reduce portfolio of assets).

3.

Business model Innovation (Transforming the existing business model and pursuing
growth in ‘green’ opportunities).

The transportations systems play a crucial role in the development of all cities. Recognizingthat people’s way of life can be enriched by enhancing transportation systems and improving
connectivity, the company engages in collaborative creation with customers and other partners tobring this about.
As a systems integrator serving all aspects of railways for 18.5 billion people (both metro andrailway line users), Hitachi Rail helps people connect with one another and contributes to therevitalization of communities and the development of cities by supplying innovative railway
solutions that are safe and highly reliable, utilising advanced information and control technologies.
These include high-speed rolling stock, technology for autonomous operation, and preventive
maintenance.
The ‘Think Responsibly and Act Sustainably’ initiative is at the heart of the way the company
designs and plans products, and defines the solutions to develop with partners and deliver tocustomers.
Hitachi Rail has identified the UN Sustainability Goals that it is able to help reach:••

Hitachi Rail

Directly, through management models which enable the Company to follow a path ofsustainable growth and guarantee a cohesive culture of responsibility, and promotesustainable actions by individual collaborators.
Indirectly, through the achievement of the company’s mission, which is to develop
railway and mass transit systems and create increasingly sophisticated products andsolutions that are safe, convenient, efficient and environmentally sustainable.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Materiality Analysis
To define which sustainability topics are considered material, Hitachi Rail has conducted a newmateriality analysis. These topics were updated to take into consideration the GRI Sustainability
Reporting Standards published in 2016-18 by the GRI (Global Reporting Initiative). Hitachi has
considered internal factors such as mission, values, risk assessment activities, Quality, Safety andEnvironmental Management Systems, climate change strategies, and research and development
activities into increasingly safe and environmentally-friendly products and solutions.
The internal analysis carried out assessed the level of the materiality of various issues along withthe company’s performance as well as the possibility of improving both its competitive advantage
and reputation.
The topics analyzed were then associated with the Sustainable Development Goals and therespective Targets. Since each material topic can cross multiple SDGs, the criterion for arranging
the latter was to first associate them with the most significant topic as defined by the materiality
analysis.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Hitachi Rail has reached out and performed a Stakeholders engagement initiative in order to givethe chance to both its employees and external Stakeholders to assess the company’s priorities
in terms of Sustainability, Welfare, and compliance with SDGs targets. The analysis has beendeveloped with an online tool and in full compliance with GRI standards and guidelines.
A total number of almost 400 people have been involved and contacted, split between both
top management and external Stakeholders (suppliers, clients, partners etc..) with a detailed
questionnaire – available in different languages – asking for their opinion on matters ranging fromenergy efficiencies tothrough air quality, data protection and protection of diversity and equal
opportunities. The materiality analysis was composed by a set of 20 questions for the internal
Stakeholders and 15 for the external ones. Some examples of asked questions are:Energy Efficiency

ENERGY EFFICIENCY - How do you evaluate the investments on the topic of energy
efficiency of buildings, plants and equipment (e.g. renewal of boiler park, insulation of roofs,
search for leaks of compressed air or water, etc.) for a company like Hitachi?

Electric Energy Production
from RES

SUPPLY AND PRODUCTION OF ELECTRICITY FROM RENEWABLE SOURCES - How
do you evaluate the investments to increase the share of electricity from renewable sources(such as the use of electricity guaranteed 100% green by the supplier or photovoltaic fromplants installed on company roofs) for a company like Hitachi?

Climate Mitigation
and GHG emissions

MITIGATION OF CLIMATE CHANGE (GREENHOUSE GASES EMISSIONS) - How doyou judge actions taken to reduce the environmental impact of activities and products(ar sharing, Green Parking areas, Green Mobility e fleet policy, optimising business travel,
encouraging plug-in hybrid and electric cars, optimising production processes in terms of
reducing impacts, etc.) for a company like Hitachi?

The Materiality Analysis has been developed to ensure that different geographical areas in which
Hitachi Rail operates were evenly and properly represented and an even involvement of internal
Stakeholders from different line of work (Rolling Stock, Signalling, Turnkey, OS&M and Support
functions).

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

SDGs Materiality Matrix

MEDIUM-HIGH
MEDIUM

MATERIALITY LEVEL FOR Stakeholders

HIGH

MATERIALITY LEVEL FOR HITACHI RAIL

MEDIUM

Hitachi RailMEDIUM-HIGH

HIGH

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

SDGs

MATERIAL TOPIC FOR HITACHI RAIL

UN TARGET to which the company contributeswith its business and its policy

Goal 11: Make cities inclusive, safe, resilient and sustainable• CUSTOMER FOCUSING• R&D AND PRODUCT INNOVATION

11.2 By 2030, provide access to safe, affordable, accessible and sustainabletransport systems for all,..
11.3 By 2030, enhance inclusive and sustainable urbanization and capacity
for participatory,..
11.4 Strengthen efforts to protect and safeguard the world’s cultural andnatural heritage.
11.6 By 2030, reduce the adverse per capita environmental impact of cities,
including by paying special attention to air quality,..

Goal 9: Build resilient infrastructure, promote sustainable industrialization and foster innovation• R&D E PRODUCT INNOVATION• SUPPLY CHAIN ETHICAL MANAGEMENT

9.1 Develop quality, reliable, sustainable and resilient infrastructure,…
9.2 Promote inclusive and sustainable industrialization…
9.4 By 2030, upgrade infrastructure and retrofit industries to make themsustainable,…
9.5 Enhance scientific research, upgrade the technological capabilities ofindustrial sectors in all countries,

Goal 16: Promote just, peaceful and inclusive societies• ANTI-CORRUPTION• DATA PROTECTION SECURITY

16.5 Substantially reduce corruption and bribery in all their forms.
16.6 Develop effective, accountable and transparent institutions at all levels.

Goal 8: Promote inclusive and sustainable economic growth, employment and decent work for all• OCCUPATIONAL HEALTH AND SAFETY• EMPLOYEE WELFARE• HYBRID WORKING MODELS• SUPPLY CHAIN ETHICAL MANAGEMENT

8.3 Promote development-oriented policies that support productive activities,
decent job creation, entrepreneurship, creativity and innovation,…
8.4 Improve progressively, through 2030, global resource efficiency inconsumption and production and endeavour to decouple economic growthfrom environmental degradation,…
8.7 Take immediate and effective measures to eradicate forced labour, end
modern slavery…
8.8 Protect labour rights and promote safe and secure working environments
for all workers,…

Goal 17: Revitalize the global partnership for sustainable development• COMPANY CULTURE

17.7 Promote the development, transfer, dissemination and diffusion ofenvironmentally sound technologies…
17.16 Enhance the Global Partnership for Development,…
17.17 Encourage and promote effective public, public-private and civilsociety partnerships,…

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SDGs

MATERIAL TOPIC FOR HITACHI RAIL

UN TARGET to which the company contributeswith its business and its policy

Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all• TRAINING AND CAREER DEVELOPMENT• SUPPORT FOR LOCAL COMMUNITY

4.3 By 2030, ensure equal access for all women and men to affordable andquality technical, vocational and tertiary education, including university.
4.4 By 2030, substantially increase the number of youth and adults who
have relevant skills, including technical and vocational skills, for employment,
decent jobs and entrepreneurship…
4.7 By 2030, ensure that all learners acquire the knowledge and skills
needed to promote sustainable development,…
4a Build and upgrade education facilities that are child, disability and gendersensitive…
4b By 2020, substantially expand globally the number of scholarships
available… including vocational training and information and communications
technology, technical, engineering and scientific programmes, in developed
countries,…

Goal 5: Achieve gender equality and empower all women and girls• PROTECTION OF DIVERSITY AND

5.1 End all forms of discrimination against all women and girls everywhere.

OPPORTUNITY

5.5 Ensure women’s full and effective participation and equal opportunities
for leadership at all levels of decision-making in political, economic and publiclife.
5b Enhance the use of enabling technology, in particular information andcommunications technology, to promote the empowerment of women.

Goal 7: Ensure access to affordable, reliable, sustainable and modern energy• ENERGY EFFICIENCY• SUPPLY AND PRODUCTION OF ELECTRICITYFROM RES

7.2 By 2030, increase substantially the share of renewable energy in the
global energy mix.
7.3 By 2030, double the global rate of improvement in energy efficiency

Goal 12: Ensure sustainable consumption and production patterns• RECYCLE AND REUSE• ECO-DESIGN• WASTE MANAGEMENT• AIR QUALITY• CIRCULAR ECONOMY

12.2 By 2030, achieve the sustainable management and efficient use ofnatural resources.
12.5 By 2030, substantially reduce waste generation through prevention,
reduction, recycling and reuse.
12.7 Promote public procurement practices that are sustainable, in
accordance with national policies and priorities.
12.8 By 2030, ensure that people everywhere have the relevant information
and awareness for sustainable development and lifestyles in harmony withnature.

Goal 13: Take urgent action to combat climate change and its impacts• MITIGATION OF CLIMATE CHANGE

13.2 Integrate climate change measures into national policies, strategies andplanning.
13.3 Improve education, awareness-raising and human and institutional
capacity on climate change mitigation,…

Goal 6: Ensure access to water and sanitation for all

Hitachi Rail

• WATER CONSUMPTION OPTIMISATION

6.4 Increase water-use efficiency and ensure freshwater supplies• MANAGEMENT OF EFFLUENTS

6.3 By 2030, improve water quality by reducing pollution, eliminating dumping
and minimizing release of hazardous chemicals and materials,…

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Sustainability of the Kasado site

Corporate Governance
Hitachi Rail’s mission is to improve the quality of human life by enabling people to do more
and feel better. The company has committed itself to do this in an environmentally and socially
responsible manner.
To ensure the diversity of the Organization and to the medium-to long-term growth of corporate
value, the Midterm Management Plan and other matters related to management strategies, each
Director has contributed comments drawing on their knowledge and experience and conducted
lively discussions on the included topics.

Our People
For the purpose of promoting society, local high school students and industrial high school
students were adopted in priority.
Develop to the program for enhancing communication, we held a Behavior safety workshop
inviting external instructors and conducted activities that enhanced employee resilience.
Conducted to traffic safety measure program and continuous improvement measures to prevent
Covid-19 infection.
We conducted stress check evaluations and developed an EAP (Employee Assistance
Programme) to line managers with high-stress tendencies for fatigue management.

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Risk management
Premises developed an external warehouse cost reduction program. We had reviewed the
optimised storage in the premises and achieved quality improvement. As a result of reviewing theworkplace Heating, Ventilation & Air Conditioning system, the ventilation system was improved.
Develop countermeasures to prevent work related accidents in Kasado works.
The business environment is changing day by day, impacted by the continued advance of
information and communications technology, such as the Internet of Things (IoT), and geopoliticalrisks arising from complex shifts in global political and economic conditions. Kasado Works aims
to create new revenue opportunities while controlling risk.
In order to achieve this, we maintain a clear understanding and analysis of the operating
environment, taking into account social issues, as well as our competitive advantages andmanagement resources. We also conduct risk management with an eye toward the many risks
the company should be prepared for as well as opportunities for growth.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

The Environment
Regarding Waste management; The target is to achieve zero final disposal and 100% recyclingof waste. In order to contribute to the recycling-circular economy society as a waste reduction
program, a change from wooden pallet to corrugated cardboard was carried out.
Monitor the efficiency of production processes. Many activities that are part of orignal equipment
initiatives will directly address this requirement. Within the environmental sustainability arena, abroader understanding of efficiency, known as eco-efficiency, has been developed to help overcome
this narrow focus.
•
•
•

•
•
•
•
•
•
•

Increasing resource productivity by minimizing the use of materials, energy, water, andland required to produce or provide our products and services;minimizing discharges, especially of toxic substances, to air, water and land, while
increasing the use of renewable materials;
redesigning products to increase their service value while maintaining functions thatthe customer needs and wants. This can be done by increasing product functionality or
flexibility (i.e. by making products that are modular in construction);using smaller quantities of materials through increased yields, substitution, recycling andreuse;
using materials derived from renewable feedstock;running factories at higher capacity and rates of use;discharging fewer toxic wastes and in smaller quantities;
increasing the efficiency of work equipment, i.e. computers, photocopiers, lighting,heating, pumps;
increasing the efficiency of equipment/ machines, dryers, heat exchangers, steam traps,
temperature controllers;
reducing energy network distribution losses by generating energy closer to where it isneeded.

The pond on the premises of the Kasado Works is inhabited by native species (Rare plants andanimals; Moths, Gentians, etc.), which we have protected. We are also removing non-native plant
species. It is also important to promote the coexistence of the project and the ecosystem by inviting
residents to visit the site.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Sustainable Supply Chain
Apply to the legislative requirements to comply with the REACH/ROHS/RAEE regulations.

Commitments for the future:••••

Hitachi Rail

Periodically review business activities to evaluate the increased economic, social andenvironmental value achieved and communicate this to shareholders.
Employ efficient, effective, beneficial and continuously improving work practices thatbalance and optimise human, technological, economic and natural resources.
Wherever feasible, use resources derived from sustainable sources, recycled materials
and less hazardous materials.
Assess the potential environmental impacts of planned discharges to land, water or air
and select options that minimize overall economic, social and environmental impacts.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Responding to Coronavirus
Across Hitachi Rail the priority remains constant: the health, safety and well-being of employees andStakeholders. To navigate the challenges initiated by the Novel Coronavirus (Covid-19) pandemic,
company teams have worked to change operations, procedures, and safety measures to ensure thecontinuity of delivering to customers around the world.
Discussing some of the new processes and solutions brought in across the global rail business,
Ulderigo Zona Executive Officer of Hitachi Rail Safety, Health, Environment, Quality, said:“The Covid-19 pandemic has severely tested the communities both at work and in personal lives. It
happened so quickly, and the company had to act accordingly. I managed a central task force, whichthen managed an additional 13 localised task forces for core operating regions – we are a truly global
brand and with the virus impacting different geographical regions at different times – consolidating
our procedures and best-practice activity was the priority. However, as well as being a challenge,we
saw this as an advantage. We have offices in Beijing and we are present in five continents, so theability to receive information from all over the world was a decisive strength.”“The commitment was initially aimed at prevention. First we understood that we could not continue
to travel the world as we had done – we therefore began by stopping intercontinental travel, and thenclosing the links more at a local level, even before it was imposed by law. Each country continued
to work with respect to social distancing and we limited the movement of people whilst ensuringbusiness continuity for our global projects. Our role is to move people and goods globally so ourbusinesses could not stop; as soon as it was safe to do so, we worked with our customers to ensuretransport operations were not affected.”“We spent almost two weeks resetting the company, based on what we believed to be the first

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

barrier to spreading the virus: social distance”“We have redesigned global production layouts, identified crisis areas, introduced shift patterns
and expanded smart/home working capability - a process that we had already started and set
up in the “pre-Covid-19” era and that has been accelerated because of this situation. We simply
went from one day a week smart working to one hundred percent smart working at home forthose who were able.”“If we work together as one global team and support the communities in which we operate, weknow that we will be able to make a real difference to society and use the current situation as abase for improving our lives and future working practices. Procedures and best-practice activity
was the priority. However as well as being a challenge – we saw this as an advantage. We haveoffices in Beijing and we are present in five continents so the ability to receive information from allover the world was a decisive strength.”

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

What will be the main points in addressing the management of theCovid-19 emergency?
The reaction of the company has been immediate, from the very first days of the pandemic a
global Task Force has supported and guided the different teams with regional and governmental
directives in order to ensure full compliance with normative and sanitary local procedures. The
capability to address the problem from a global perspective will be a major advantage in the fightagainst the pandemic.
As the awareness on the severity of the medical emergency progresses, a scientific medical
committee with all the expertise available in Italy will coordinate the response all over our sitesaround the world.
As the awareness on the severity of the medical emergency progresses, a scientific medical
committee with all the expertise available in Italy will coordinate the response all over our sitesaround the world.
The first response has been the implementation of social distancing in compliance with thelegislation of different countries.

What will be the area of intervention and the principal measures put
in place?
The commitment of the company will be focused on prevention. It is important to understand thattravel will not be possible as previously and therefore business trips both international and local
will havestopped even before the restrictions come to be enforced by law.

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Following the subscription of the “Protocollo nazionale per la realizzazione dei piani aziendali
finalizzati all’attivazione di punti straordinari di vaccinazione anti SARS-CoV-2/ Covid-19 nei
luoghi di lavoro”, Italian sites of the Hitachi Rail Group will be contributing to the reduction of
Covid-19 spread by a campaign of vaccines through the utilization of a moving truck with 4
vaccine position. The Human centric mission that characterizes the core business has pushed themore forward looking management to organize a campaign that could answer to the occupational
necessity of a group suche Hitachi Rail.
Hitachi Rail’s plan is not limited to the vaccine campaign, but it will continue after the vaccine
rollout through a campaign of education amongst those who have received the shot on what
norms and procedures to follow afterwards.

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Sustainability Governance

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Sustainability Steering Committe
Hitachi Rail is committed to understand the needs and expectations of its people and involve
them in capacity and skills development projects. Its focus is on the constant monitoring of
the satisfaction of its customers/Stakeholders and it plays an active role in the management ofrelationships with local communities.
The Committee’s mission is to govern the company vision and long-term environmental
goals, while respecting and protecting social relations, in pursuing continuous improvementof governance through a global structure, incorporating effective decision-making andimplementation. It proposes all locations and all employees of Hitachi Rail, creating an evergreater value proposition for customers and Stakeholders
The SSC has the task of directing the strategic business guidelines for governance practices forsustainability and corporate social responsibility (CSR). SSC gives the mandate to the specificorganisational group unit (SHEQ/R&D) to implement and to achieve the objectives of continuous
improvement, environmental protection and social respect, in the interest of the various
Stakeholders and communities in which the business is delivered. The Committee (SSC) reports
directly to the Chairman and CEO of Hitachi Rail and works in partnership with Hitachi Ltd.’sSustainability Promotion Division (SusD).
Main Authority and Duties
•

•
•

•

•

Hitachi Rail

Sustainability and corporate responsibility policies, strategies and programs. The
Committee will oversee, approve and provide input to the Company on the Company’s
policies, strategies and programs related to sustainability and corporate responsibility
issues, assessing their KPIs and risks.
Social Trends. The Committee shall consider analyses and provide input to thecompany to respond promptly to social needs.
Relations with Stakeholders. The Committee regularly analyses relations with the main
external Stakeholders (Clients/Committees/etc.) concerning issues of sustainability
and corporate social responsibility that may have a significant impact on the
Company’s activities and performance.
Social Responsibility. The Committee will examine social responsibility policies andprograms and provide guidance and relevant approvals for the social development of
the communities in which we operate.
Reporting. The Committee examines and approves the reports and reports onsustainability and social responsibility, addressing the related internal communications.

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Global Business Management Systems
The Global Business Management System (GBMS) is the unique set of rules common to thewhole Hitachi Rail organisation. It is designed to cover, with the same approach and methods,
the activities of all Hitachi Rail companies. The GBMS is the core element of a business modelthat combines all related components of a business into one system for easier management andintegrated operations, as shown in picture. The GBMS helps the organisation to establish theobjectives and policies (strategy execution), the organisation’s structure, roles and responsibilities(organisational roles), its operation practices and rules (process excellence), and its platforms andtools (enterprise architecture).
The implementation project started in April 2020 just after the establishment of the One Hitachi
Rail organisation, and has displayed excellent progress in a number of different areas. In
particular, about the Organizational Area (lead by HR), the Organization Chart, Roles & Mandates
and the Project Organization Structure.
The Process Excellence area that looks after our Processes and Procedures is progressing wellwith the central Functions (overall progress around 70%) with most of their processes (belonging
to the Strategy, Customer and Support Clusters) already completed and published on new
COSMO GMBS area, while the Execution Processes inside the lines of business are progressing
at a different speed based on the integration activities complexity.

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New COSMO (intranet platform) AREA

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Health, Safety and Environment (HSE) Management System
HSE Department provides the Global Management Systems, reporting arrangements andassurance for the Company. The function challenges, coaches and supports the businesses
to ensure that HSE Risks are effectively managed. Failure to do so could compromise theachievement of the Company’s Objectives, leading to incidents and reputational damage

R
ST

G
AT E

Y EXECU

TIO

N

R

RE

P
ES

E ARCHITEC

TU

OC

RIS

R

G

N

O

T

E

P
ER

S EXCELLENC

GLOBAL
BUSINESSMANAGEMENTSYSTEMAN

TIONAL ROLE
ISA
S

E

HSE issues could have a high potential impact on the company:••

Failure to manage HSE Risk effectively threatens our business continuity. It can lead toadverse public opinion, and loss of customer trust and could significantly impact thefirm reputation and ability to raise capital.
HSE maintains and improves a positive reputation for HSE Excellence. Hitachi Rail isa reliable partner for existing and new customers, driving continuous improvement in
HSE to meet and exceed market expectations.

Strong and competent HSE Management also helps to avoid criminal, civil or administrative
sanctions:•••

Hitachi Rail

Judiciary actions with possible permanent sanctions and severe financial impact(equal or greater than € 1.5 M and/or Criminal, Civil, Administrative sanctions. This
could include the incarceration of Group senior managers, which could disrupt theoperations of the entire Company.
The Company Enterprise Risk Map identified HSE failure as Company key risk. Thosestrategic key risks are reported to the CEO and monitored by Board of Directors.
The HSE department interacts with and influences Executives and the Country legal
Representative to drive the continuous improvement of our HSE Culture.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Quality, Health, Safety and Environmental certifications
IRIS1

ISO 9001

ISO 45001

ISO 14001

Batesburg

þ

þ

þ

þ

FRANCE

Riom

þ

þ

þ

þ

UNITED KINGDOM

Newton Aycliffe

-

þ

-

þ

Tito Scalo

þ

þ

þ

þ+EMAS

Naplesþþþþ

Pistoia

þ

þ

þ

þ

Reggio Calabria

þ

þ

þ

þ

COUNTRY

CITY

USA

ITALY

Train maintenance centre
COUNTRY

CITY

ISO 9001

ISO 45001

ISO 14001

UNITED KINGDOM

AshfordþþþUNITED KINGDOM

DoncasterþþþUNITED KINGDOM

Landore Swansea

þ

þ

þ

UNITED KINGDOM

Edinburgh (Craigentinny)

þ

þ

þ

UNITED KINGDOM

London (North Pole)

þ

þ

þ

UNITED KINGDOM

London (Bounds Green)

þ

þ

þ

ITALY

Service & maintenanceactivities

-

þ

þ

1

The IRIS standard is promoted by UNIFE, the Association of European Railway Industries, which guarantees its supervision and control.
The IRIS standard was developed starting from the ISO 9001 standard, integrating it with specific railway sector requirements.

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Office Sites
COUNTRY

CITY

UNITED KINGDOM

London – Head office

IRIS

LondonFRANCE
SPAIN

ISO
9001

ISO 45001

ISO 14001

þ

þ

þ

þ

þ

þ

Les Ulis

þ

þ

þ

þ

MadridþþþþZaragozaþþþ

SWEDEN

Stockholmþþþ

DENMARK

Copenhagen

þ

þ

þ

Genoa

þ

þ

þ

Naplesþþþ

Piossascoþþþ

SAUDI ARABIA

Riyadh

þ

þ

þ

PERU

Lima

þ

þ

þ

TAIWAN

Taipeiþþþ

MALAYSIA

Kuala Lumpur

þ

þ

þ

USA

Pittsburgh

þ

þ

þ

Brisbaneþ

AS/ZNS 4801:01

þNewcastleþ

AS/ZNS 4801:01

þ

Perth

þ

AS/ZNS 4801:01

þ

Sidneyþ

AS/ZNS 4801:01

þKarrathaþ

AS/ZNS 4801:01

þKolkata

þ

þ

þ

Noida

þ

þ

þ

Bangalore

þ

þ

þ

þ

þ

þ

ITALY

AUSTRALIA

INDIA

þ

þ

CANADA

TorontoSVEZIA

Solna

þ

CINA

Bejingþ

The Genoa office is also ISO 27001 certified (information security management), and in 2019 it obtained the CMMI
certification (Capability Maturity Model Integration).

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Delivering a sustainable, safe and high-quality
railway business

While greenhouse gas emission reduction is one of the company’s most important targets, it is
not the only target that must be achieved in order to accelerate Hitachi Rail’s sustainable andenvironmental business operations.
Hitachi’s updated mid-term strategy, concrete targets, performance measurements, andtransparent disclosure are the drivers of the company’s day-to-day activities.
Hitachi Rail set targets based on achieving emission reductions through direct action both within
operations and throughout the value chain for manufacturing high quality products, solutions andOperations, Service & Maintenance.
Recently the Hitachi Group announced its commitment to being carbon neutral at all of its sites
by 2030 and an 80% reduction in CO2 emissions across the company’s value chain by 2050.
We are supporting these goals through our Decarbonisation Strategy:•

Mobility as a Service: Making already sustainable Rail travel even more attractive byintegrating Hitachi Rail’s services with other modes of transport using data from theInternet of Things;•

creating new electrified railways or powering trains with batteries, and Decarbonising
our industrial footprint in line with UN’s Science-based targets.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Being a completely sustainable company is a huge, responsibility and a very stimulating
challenge. It means being able to say that you really make a difference, which will last for
generations to come!
Hitachi Rail has culture and skills coordinated and integrated by the Social Responsibility andSustainability Department (CSR&S), led by Ulderigo Zona, Group HSE.
The CSR&S team evaluates, launches, and coordinates global and local initiatives and thegovernance necessary to achieve the company targets with the highest efficiency.
Inside Hitachi Rail, the SHEQ Department (Safety Health and Quality) is responsible for all aspectsof Corporate Social Responsibility and Sustainability (CSR&S) through the Company Sustainable
Steering Committee.
Hitachi Rail defines the sustainability and corporate social responsibility strategy based on
innovation and aims to be at the forefront of a great wave of change.
•••

Hitachi RailTechnological, because the world experience a continuous flood of changes which
it must face with intelligence, in a context of digital innovation for which Hitachi Railinside Hitachi have all the necessary skills and solutions.
Economic, taking into account thegeopolitical changes and the centre ofgravity of the world economy movingfrom the West to Asia. While somecountries are facing rapid population
ageing due to an extremely low birthrate, the global population is growing.
With a clear shift of the Supply and
Demand axis towards those countries
with the fastest growth.
Cultural, a way of thinking
which means the change in mentality and habits necessary to address the global
environmental issues and social disparity that in 2015 led the United Nations and ourcompanies to commit to the SDGs.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Hitachi Rail contribution to Net-Zero

Hitachi Rail Strategy and Commitment pass through a system of very well integrated elements.
In this situation, every change also brings opportunities, and it is clear that imagination is the
key to shaping the future.

Road map to sustainability
Hitachi Rail aims to become an influencer and leader of CSR and Sustainability, thanks to its
capability to:
Identify future business opportunities••••

Hitachi RailDevelop new market opportunities and solutions for green targets.
Development and adoption of technologies and solutions.
Deliver sustainability on projects product/services development.
Have premises management for Environmental and Sustainable impact.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Strengthening Stakeholders relations and for stable societies and markets••••

Develop new market opportunities and solutions for green targets.
Development and adoption of technologies and solutions.
Implement concrete projects on product/services development.
Promote sustainable products referring to its social and environmental impacts.

Using a common language and shared purpose•

Adopt a consistent company roadmap to every relationship with Stakeholders(external and internal).

Our products / services
Providing safe, comfortable transportation Systems and services. Increasing the efficiency of
customer’s Sustainable production and processing systems.

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Our people
Focus in Health and Safety including strong Covid-19 procedures••

Focus on skills development and training on CSR & Sustainable Goals.
Promote sustainable products referring to its social and environmental impacts during
manufacturing and after the product’s uses (Think Responsibly, Act Sustainably
campaign).

Hitachi Rail considers CSR as its business contribution to sustainability, for which we all have a
responsibility, and develops its commitment through specific climate action plans.
The Hitachi Rail Action Plans covers a 10-year period and will ensure emissions are reduced
through a series of innovative and wide-ranging actions.
The plans have defined actions, objectives and targets to accelerate the process of reducing CO2
emissions and to design and develop concrete solutions. Hitachi Rail has an impact on most
SDGs in four important ways:••••

Products and solutions.
Managing the activity responsibly and its assets.
Continuous training.
The measurement of its performance against the reduction plan.

Hitachi Rail is committed to reducing the impact of its activities on the environment. Central tothis is how the company aims to influence the impact of its supply chain, its own operations, andthe products and services it offers to its customers.
For its customers, the latest innovations focus on reducing life cycle consumption of material andenergy from its own products, using recycled or otherwise sustainable materials and adopting
new solutions from renewable energy sources for traction (eg. Battery trains). Across HitachiRail’s portfolio of rolling stock, signalling and turnkey solutions, the company is using digitaltechnologies to achieve better outcomes for customers with less impact on the environment.
For rolling stock, the ROCK train provided to Trenitalia is made from 95% recyclable material.
Hitachi Rail’s signalling solutions team are pioneering new ‘Zero-Infrastructure’ train control
technologies which replace line-side equipment with cloud-based solutions connected throughsatellite communications. Our operations teams acquired the remote condition monitoring
company Perpetuum, whose analytics technology extends the safe service life of bogies – further
reducing industrial and financial waste of inefficient maintenance regimes.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Hitachi Rail encourages its suppliers to participate in energy efficiency and other similar programs
to reduce their own emissions.
Material Recovery is an innovative technological practice that must be further developed andtested for the recycling of electronic equipment and the use of materials. Hitachi Rail continues
to promote the use of recycled materials and low greenhouse gas emissions, innovate theprocesses of recycling products, and design increasingly efficient products and solutions in termsof reducing emissions (GHG).

Social values•••

Health and well-being.
Safed and secured society.
Internal communication and skills.

Environmental values••

Carbon-free society.
Less plastic and waste management.

Economic values•••

Increase customer’s EV (As for example, through an increased efficiency inmanagement systems and a reduction in energy consumption, which both are
impacting the decarbonization process).
Improve efficiency.
New Value creation.

Particular attention is paid to plant management, decent work, responsible supply chain, healthand safety, energy improvement of buildings, as well as for the creation of uses, habits andprocesses increasingly performing from the point of view of reducing greenhouse gas emissions(CO2e).
Hitachi and Hitachi Rail will continue to further encourage collaboration with governments,
companies, non-governmental organizations and consumers around the world to support policies
to strengthen environmental protection, transition to clean energy, and and combat climatechange.

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EcoVadis
EcoVadis aims to improve the environmental and social practices of businesses by leveraging theinfluence of the global logistics chain. It has defined a methodology to assess Corporate Social
Responsibility through analysing their policies and their implementation and the results achieved.
The assessment focuses on 21 topics divided into four categories: Environment, Employment
and Human Rights, Ethics, and Sustainable Procurement.
Hitachi Rail’s CSR&S department has taken over the complete management of the sustainability
ratings. At the date of publication of this Report, it has achieved the following results:••

Hitachi Rail STS has confirmed its Gold Medal Award for the second consecutive year.
Hitachi Rail SpA has received the Silver Medal Award.

As well as recognising the company’s vision and efforts in the field of CSR, the certification also
helps customers to achieve their sustainability and environmental targets.
In addition to our registration through EcoVadis as described above, Hitachi Rail is also
undertaking a market review with the intention to leverage third party data providers including
EcoVadis to provide visibility of risks and performance of our suppliers against core CSR themes
and to support and drive the sustainability agenda within the supply chain.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Sustainability risks and opportunities
Direct and Indirect Greenhouse Gas (GHG) Emissions
Risk description•••

Environmental impact of production processes, product composition and increase inenergy consumption.
Possible negative effects on the activities to be carried out influenced by climatechange.
Increased energy consumption costs.

Risk management•••

Analysis and assessment of risk to climate change at the international level.
Implementation of operational control procedures.
Definition of environmental objectives.

Energy consumption
Risk description••

Growth in costs related to energy consumption.
Lessened ability to compete.

Risk management••••

Hitachi Rail

Investments to reduce consumption by verifying potential profitability.
Adoption of projects aimed at reducing energy consumption in factories and using
energy from renewable sources.
Failure to comply with the regulations by the company and suppliers on projects/
activities.
Changes to the legislation with sanctioning risks.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Effluent and waste
Risk description••

Failure to comply with the regulations by the company and suppliers on projects/
activities
Changes to the legislation with sanctioning risks.

Risk management••

System for monitoring the evolution of regulations worldwide.
Adoption of projects aimed at reducing the production of factory waste and waste
water management.

Raw material consumption and recycling
Risk description••

Failure to comply with Regulation by the company or suppliers in the sourcing, use,
declaration and disposal of materials.
Failure to anticipate changes which can impact material use.

Risk management••

Hitachi Rail

Legislation, standards and professional information sources are pro-actively monitored.
Compliance with existing regulatory, customer and company requirements are assured
through the HSE Management System.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Polluting air emissions
Risk description•••

Environmental impact of production processes, product composition and the need toreduce or eliminate the use of hazardous substances.
Increase in technology investment costs.
Changes to laws that involve risks of penalties.

Risk management•••

Implementation of monitoring systems for processes and plants.
Designing better solutions
Specific training on company standards and changes in terms of process/product.

Water consumption
Risk description••

Increase in technology investment costs.
Changes to laws that involve risks of penalties.

Risk management••

Hitachi Rail

Implementation of monitoring systems for processes and plants.
Specific training on company standards and changes in terms of process/product.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Health and safety
Risk description•••

Failure to comply with Regulation contractual requirements or company procedures in
identifying occupational health and safety hazards.
Incorrect, or inadequate assessment of the risks which the hazards identified create in
our particular circumstances of use.
Failure to re-assess following changes to hazard or risk requirements.

Risk management••

Compliance with the company HSE Risk Management System.
Horizon scanning of regulatory changes, contractual changes and technical journals.

Diversity and equal opportunity
Risk description
•
•
•
•
•
•

Hitachi Rail

Attracting right talent.
Ensuring equal opportunity - Risk management.
Continuing to offer competitive and equitable benefits and compensation.
Promote opportunity and career development.
Ongoing provision of accessible development opportunities.
Further enhance coaching and training on diversity and inclusion topics.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Employee well-being
Risk description••

Work and home life pressures and events may result in the poor mental health of
employees.
Employees may from time to time suffer from medical conditions or have long-term
conditions which could affect their ability to carry out their role.

Risk management•••

Increase continuous communication and institute employee well-being programmes.
Develop programmes to support employees mental and physical wellbeing.
Continue to monitor employees’ engagement through an annual survey.

Respect of Human Rights
As a member of society we Hitachi Rail can contribute to creating an environment in which humanrights are respected. Meeting the responsibility to respect human rights is key to operating as a
responsible business, and is accepted to be a baseline expectation.
Risk description•

Increasing legislation on businesses to be held accountable for human rights related
violations within its own business and operations, as well as by companies within its
supply chain.

Risk management•••

Hitachi RailThe Company will promote the understanding of internationally recognized human rights,
and will respect and not infringe on the human rights of all those involved in our businessactivities.
Hitachi Rail will assess and prevent potential violations of human rights. In the event ofsuch a violation, we will promptly take internal and external actions to correct and remedy
the situation.
The Company will respect individual human rights in the recruitment and treatment of
employees and during all other company activities, and will not engage in any acts that
may impair individual dignity or discriminate on bases such as sex, sexual orientation,age, nationality, race, ethnicity, ideology, belief, religion, social status, family origin,disease, disability.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

•

•

•

•

Hitachi Rail will strive to resolve issues through sincere and constructive discussion
between management and employees, in compliance with the laws, regulations, andlabour practices of each country and region, and in accordance with international
norms and standards.
Where Hitachi Rail identifies that it hascaused or contributed to a negative humanrights impact, it will provide for, or cooperate in, legitimate processes to provide
remediation.
We The Company adheres to national law and regulation in each market in which
itoperates. If Hitachi Rail faces conflict between internationally recognised humanrights and national laws, it will follow processes that seek ways to honour the
principles of international human rights.
Hitachi Rail will provide appropriate training and capacity building in order to embed
this policy commitment and will engage with relevant external Stakeholders about
addressing potential and actual human rights impacts.

Ethical management of Supply Chain
•
•

•

•
•
•
•
•

Hitachi Rail

Compliance with our Supplier Code of Conduct is mandated and required of all
suppliers at contracting stage and monitored throughout the lifecycle of the contract
Implementation of human rights due diligence appropriate to the social circumstancesof the countries and regions where Hitachi Rail has operations and the nature of its
businesses, products, and services there.
Development and implementation of on going human rights due diligence toinclude identifying and assessing potential and actual human rights impacts andtaking appropriate action to prevent or mitigate risks. The Company will track theseprocesses to ensure the effectiveness of its actions to address impacts and risks anddevelop mechanisms to report these findings externally.
Completion of risk assessments to identify key vulnerabilities in our supply chain
Transformation of supply chain to enhance and improve ESG footprint whilst
simultaneously managing against future risks
Remediation and management of incidents through internal governance frameworks
Continued surveillance to verify on going compliance.
Escalation process for non-compliance.

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Ethics and Integrity
Code of Ethics
The Hitachi Group Code of Ethics is a crucial pillar of Hitachi’s Group Compliance Program, providing
rules, values and principles that are required to be followed by employees, executives and directors,
and third parties engaging in business with Hitachi Rail. The same rules, values and principles arealso intended to assist officers and employees in making business decisions and acting in alignment
with Hitachi’s Group Identity.
The management of Hitachi Rail continuously confirms the commitments and ethical responsibilities,
setting an example and promoting a culture of ethics that allows Hitachi to preserve a good
reputation amongst our clients, partners, Stakeholders and our community.

Whistleblowing
With the objective of maintaining high ethical standards and working in compliance with theapplicable laws and regulations, whilst also promoting a safe environment to report potential orsuspected violations, Hitachi Rail has a dedicated SPEAK UP channel whereby anyone can reportany suspected violations of the Group Code of Ethics or any violation of laws and regulations.
The SPEAK UP channel is available:••

Online through this link
By phone (available 24-7) through a toll-free number provided on the following link above.

Furthermore, for any suspected violations of Law 231, a dedicated channel has been made available
by reporting to OdV@hitachirail.com
Out of the countries in which it operates can be reported to the following channels made available
both for internal resources and third parties through various channels. Online reporting system: thisis available 24-7 for reporting via telephone and/or online through this link3
The company ensures whistleblower protection and that no-one in the workplace is subject to any
direct or indirect retaliation, illegal conditioning and/or discrimination ng treatment of any kind, forhaving made reported in a good faith report of a violation to the following channels.

3

For Hitachi Rail STS S.p.A: odv231@hitachirail.com;
for Hitachi Rail S.p.A: odv@hitachirail.com

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Anticorruption
Hitachi Rail is committed to tackling corruption and preventing the risk of unlawful practices.
The Group promotes and implements a corporate culture inspired by responsibility, fairness andethics, and basing its activity on ethical values and compliance. This is critical for the achievementof corporate goals and success in the market, as well as influencing the relationships with any
parties with an interest in Hitachi Rail. In carrying out its activities, the Group considers integrity
and respect for Laws, including Anti-Corruption laws and regulations, as fundamental ethicalprinciples to conduct business and requires its Groups’ senior management to set the example
for all employees and co-workers with their behaviour.
Within the Hitachi Rail Group Compliance program, a dedicated compliance governancestructure has been established as well as an Anti-Corruption Policy whereby. The various
Group Companies have defined a Manual to provide principles, roles, and responsibilities. The
manial also, identifies the main risk areas of corruption as well as the elements in place to be
implemented to manage the risk of corruption within the Group effectively.
Risk description
•
•
•
•
•
•

Hitachi Rail

Minimal visibility and increased regulation on Environmental, Social and Governancesupply chain risk.
Growing acceptance for mandatory due diligence and judicial solutions in holding
parent companies in home states accountable for abuses throughout their operations.
Lack of adequate safeguards in supply chain and insufficient assessments andmonitoring.
Changes in Government requirements mid contract.
Supplier non-compliance.
Increased volume of Suppliers globally.

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Organizational, Management and Control Model
In relation to the entry into force of Legislative Decree no. 231/01, as amended and supplemented,
which introduced a specific regime of liability for the companies in regards to certain types ofcrimes, Hitachi Rail STS S.p.A. and Hitachi Rail S.p.A has adopted the appropriate measures toprevent such liability from arising for the company, with the implementation of specific protocols
and supervision systems designed to prevent the commission of the crimes included in the
Decree and which may potentially be committed by Directors, Statutory Auditors, executives,
employees or by any person who has a contractual, financial or commercial relationships with
Hitachi Rail STS S.p.A and Hitachi Rail S.p.A.
For this purpose, both Hitachi Rail STS S.p.A. has companies which have adopted an
Organisation, Management and Control Model pursuant to Legislative Decree no. 231/01(the Model), which has been subsequently updated following subsequent regulatory andorganizational changes.

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Competition Law
Hitachi Rail engages in business across the world based on principles of adherence with the law
and business ethics as well as fair and open competition in compliance with EU competition
laws, and those of other regions in which Hitachi Rail conducts business. Furthermore, theGroup’s Global Compliance Programme incorporates rules concerning competition law as well as
related business standards and guidelines.
Hitachi Rail has constant training sessions where employees, directors and management are
made aware of competition laws & regulations and the proper conduct to adopt.

Modern slavery
Hitachi Rail Limited recognises the importance of identifying and preventing the action andcauses of modern slavery in our business and supply chain. In its fifth statement, published under
Section 54 of the UK Modern Slavery Act 2015, Hitachi Rail has detailed the steps it has taken
to address modern slavery and human trafficking in the business and supply chain. A separate
Modern Slavery Statement that complies with the Australian Modern Slavery Act 2018 has been
lodged with the Australian Government for the reporting period from April 2020 to March 2021.

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Gender pay gap report
Gender pay gap reporting in the UK reflects the importance of diversity and inclusion to HitachiRail’s plans for business growth. A predominance of male employees characterises the rail
sector and, if Hitachi Rail is to meet the demands of a modern railway, it must introduce people
new to the industry from a multitude of backgrounds and who possess different skills. Equallyimportantly, greater diversity enables to creation of the best, most innovative products andservices for customers and the wide cross-section of passengers they serve.
Having calculated the company gender pay gap using the reporting regulations, Hitachi Rail in
the UK is committed to providing fair and equal pay for its people. Hitachi Rail will continue to
strive for a more diverse workforce and to ensure that rail business and all Stakeholders share in
the many benefits this will deliver.

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Export and trade compliance
The failure to comply with regulations on export, import, re-export or re-transfer of products (tangible
or intangible), technologies, information, and services (hereinafter Goods) classified as “Dual-Use”
has exposed several Companies to administrative and criminal sanctions, reputational damage
risks, as well as significant financial losses.
Hitachi Rail shares the concerns of the international community on the proliferation of weapons ofmass destruction and the excessive accumulation of conventional weapons. Therefore, Hitachi Rail
undertakes to comply with all applicable export and trade compliance laws and regulations.
Hitachi Rail does not deal in military products.
Since 2018, all Hitachi Rail Companies have developed Export Control procedures, policies and a
Manual to prevent, manage, and monitor the risk of non-compliance with the applicable legislation
and regulations.
Now, in a “One Hitachi” fully integrated perspective, Hitachi Rail has developed an efficient andeffective Export and Trade Compliance applicable to all Line of Business (LoB) and Hitachi RailCompanies to prevent, manage, and monitor the risk of non-compliance with the applicablelegislation and regulations on export, import, re-export, or re-transfer of goods classified as“Dual-Use”. The above-mentioned Export and Trade Compliance meets the standard controls
required by the Regulation in force and the best practice (here included the European Commission
Recommendation) and based on the following seven pillars:
1.
2.
3.
4.
5.
6.
7.

Top-level management commitment to compliance.
Organisation structure, responsibilities and resources.
Training and awareness-raising.
Transaction screening process and procedures.
Performance review, audits, reporting and corrective actions.
Recordkeeping and documentation.
Physical and information security.

In order to reach this target, Hitachi Rail exercised and exercised Export and Trade Compliance due
diligence against any possible illicit transactions and ensured that no products are provided, andno trade is carried out in any country or any entity in violation of the above laws and regulations.
Hitachi Rail has implemented an efficient and effective compliance program providing a risk
management tool applicable to the complexities and specific characteristics of all Companies of
the Group (a new Hitachi Rail ETCP Manual was issued on July 2021 and is applicable to all the
Lobs and Hitachi Rail companies).

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In 2019 Hitachi Rail started the classification of all the products manufactured in each Hitachi Railfactory. The Classification of all Signalling & Turnkey products, has been completed in 2020 for
the products manufactured in Italy, and the Company is now completing the classification of few
remaining products manufactured in US and France Factories. Some products manufactured by
S&T has been classified Dual Use (i.e. typological Racks, boards and software).
With reference to the products manufactured by Rolling Stock Line of Business, adopting thesame approach used in S&T LoB, in Q3 FY2020 RS LoB started the classification of products
manufactured by the Italian RS Factories. The classification of products is expected to becompleted within FY 2021.
All Hitachi Rail Employees – especially those directly involved in trade, export, transfer, reexport and re-transfer activities/processes – are requested to operate in full compliance with
the Laws and Regulations in force. In order to create an Export and Trade Compliance Culture,various training opportunities have been organised (an e-learning has been launched for all
the employees and specific training sessions have been organised for the Employees directly
involved in the activities related to Export and Trade compliance).

Stakeholders engagement
For Hitachi Rail, social responsibility translates into the daily focus and care of its relations with
Stakeholders. Understanding their needs and expectations is achieved through the definition andimplementation of specific tools for dialogue and interaction.

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In this sustainability report, Hitachi Rail has aimed to present the different ways in which itinteracts with its Stakeholders, distinguishing between:•••

Opportunities for information: one-directional communications from the company to its
Stakeholders;
Consultation/dialogue: when the company asks for Stakeholders’ opinions (e.g.,through surveys, polls, focus groups, etc.) or sets up permanent discussion groups;
Partnerships: specific projects implemented and/or managed jointly with Stakeholders.

The description aims to provide a clear understanding of the margins for improvement in themethods of Stakeholders engagement, aiming to progressively intensify dialogue and partnership
opportunities to create shared value.

Involvement with local communities
For Hitachi Rail, social responsibility translates into the daily focus and care of its relations with
Stakeholders. Understanding their needs and expectations is achieved through the definition andimplementation of specific tools for dialogue and interaction.
Hitachi Rail plays a leading role in managing relations with local communities, be they municipal
authorities, residents’ associations, metro and rail service users, businesses or local workers,
adopting different methods depending on the type of commercial project.
Hitachi Rail is actively involved in programs to communicate and interact with the communities
affected in various ways:••••

Participation in committees that represent local Stakeholders.
Promotion of communication between the local authorities and citizens.
Engagement in direct communication.
Participation in programmes to develop local communities.

Hitachi Rail’s initiatives for supporting communities fall under a CSR strategy that calls forcooperating in the implementation of the 2030 Sustainable Development Goals established by
the United Nations.

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Corporate social responsibility in Hitachi Rail manifests itself in different ways, with generalcoordination given by the strategy and mission of the company, but even more so throughthe direct relationship with local communities. Respect for diversity and attention to equal
opportunities, therefore, has different interpretations in the territories where the company
operatesAn example of this commitment is given by the now historic initiative at the factory in
Riom in France. Since 2015 a collaboration started in the plant of Riom where the company hosts
ACTIVADIS.
ACTIVADIS employs around 15 employees (mainly disabled workers) working at the Hitachi Railsite of Riom, France.
Their tasks consist of assembling & cabling some local products of the company as part ofHitachi Rail’s local supply chain.
The localisation of this activity facilitates the training of quality staff over a long period, but more
importantly, supports and gives work to a company whose purpose is to promote professional
integration of disabled workers into the community. For legal reasons:••

The staff and tasks are exclusively managed/monitored by an Activadis manager;
though hosted inside the manufacturing plant, Activadis activity is performed in an
identified / separated work area and associated premises.

The initiative has a clear impact on local Hitachi Rail staff and facilitates the better knowledge
and integration of disabled workers, together with a strong contribution to the fulfilment of theobligation to employ disabled workers.

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Hitachi Rail Corporate Car Sharing
Corporate car sharing is the sharing of electric cars between employees of the same company.
This helps to reduce congestion and CO2 emissions related to employee travel.
To further reduce emissions from car travel, Hitachi Rail is now launching a programme tocombine car sharing with the use of electric vehicles.
It is a choice, among others, that responds to the company’s commitments in achieving the
Sustainable Development Goals. In particular, the first pilot project in Naples, Italy is in line with
the initiative already adopted in the Italian Green Parking Zones.
As part of the pilot, Hitachi Rail is making electric cars available to all employees for travel andbusiness trips between the Hitachi Rail site in Naples and other local points of mobility (Airport,
Railway station, Hub parking areas).

“Welcome to all guests, visitors and colleagues. You have a dedicated parking space for your eco-sustainable vehicles”

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Electric cars are available as an alternative to private cars, even for short business trips (same-day
services, visits to suppliers/construction sites), with same-day delivery at the dedicated parking
area.
Based on the company’s pilot in Naples, the service will eventually be offered to all Hitachi Railemployees and it will be designed for specific local needs.
This ability to integrate and coordinate means that a project like this not only achieves
environmental impact objectives in reducing emissions, but also improves corporate welfare, cost
containment and facilitation of travel services and service activities.
In summary, it completes the objective of improving the quality of life of employees and the local
communities in which they operate.
It is also a project which provides an alternative to other services and costs. Hitachi Rail
corporate car sharing generates savings in terms of the total cost of mobility and use of extrafleet vehicles.

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Partnerships for sustainable development

Commitment to the UN Global Compact
Once again, this year, Hitachi Rail confirmed its support to the Global Compact, the voluntary
United Nations initiative that encourages respect for human rights, labour, and the environment
and fights against anti-corruption through a series of 10 principles. The Group’s membershipin the initiative reiterates its commitment to the Global Compact and its main principles as anintegral part of the company’s strategies and workplace culture.
During the fifth Italian Business & SDGs Annual Forum, held in Rome on 13-14 October 2020,
Hitachi Rail won the Promoting Founder Award by Global Compact Network Italy, the local
branch of the UN initiative to encourage businesses worldwide to adopt sustainable and socially
Responsible policies.
Hitachi Rail and 11 other companies and non-business entities won this award, which recognised
the company’s position among the founding members of the Italian Network in 2009, as well as
the company’s commitment to supporting the network’s sustainability and CSR principles andinitiatives.
This award is further proof of the commitment of Rail business in sustainability and corporatesocial responsibility (CSR), but also of the entire Hitachi Group: Hitachi Ltd is also an active
member of the UN Global Compact Network as from 2009.
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Industry associations
Hitachi Rail actively participates in UNIFE projects (association of European railway builders),
UNISIG (association of European railway signalling companies) and UITP (international public
transportation association), ANIE (National Federation of Electro technical and Electronic
Companies), AICQ (Italian Association for a Quality Culture), the Italian partner of EFQM (European
Foundation for Quality Management), Cosila (consortium for safety in the workplace) and Unione
degli Industriali/Confindustria (Industrialists’ Union/Italy’s main organisation representing Italianmanufacturing and service companies), in Naples and Genoa, specifically.
Within the scope of UNIFE, Hitachi Rail collaborates to promote the extension of the use ofrailway transportation through the implementation of technological standards (ERTMS andTSI) and by proposing European research projects to improve safety, energy efficiency andenvironmental protection in the field of railway transportation. Specifically, SHIFT2RAIL, a project
proposed as a Joint Undertaking in the railway sector to reduce emissions and promote a modal
shift in transportation, in line with the indications of the transportation white book publishedby the EU Commission. Furthermore, as part of UNIFE, Hitachi Rail sits on the Sustainable
Transport Committee, which aims to define a common, consistent and effective consensus in therailway industry with respect to environmental issues and, particularly, energy efficiency (reliable
standards to measure energy consumption), the evaluation of the life cycle as one of the main
criteria in the decision-making process, eco-procurement and noise and emission reduction.

Taxonomy and Green FinanceTaxonomy and sustainable finance: the European Commission recently presented essential
documents as an action plan for a greener and cleaner economy. The project that was initiated in
March 2018 aims to channel capital towards a low-intensity carbon economy.
In May 2018, the European Commission began implementing the first measures contained in the
Action Plan, by introducing three regulatory proposals related to:•••

The taxonomy of eco-compatible activities;
low-carbon benchmarks and positive carbon impact;
institutional investors’ disclosure on ESG risks.

The European Commission subsequently appointed the Technical Expert Group on Sustainable
Finance (TEG), comprising a multi-Stakeholders group of experts brought together by theCommission. Its aim is to establish guidelines for sustainable finance in Europe and to provide
consulting on four specific issues: taxonomy, prioritising environmental issues, including
mitigation and adaptation to climate change; improving the guidelines on reporting information

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related to climate; the introduction of a European Green Bond Standard; and common criteria
to build low-carbon benchmarks and a positive-carbon impact.Within this European initiative,
Hitachi Rail contributes to the work required of the group of experts (TEG) in its sector, boththrough the European association (UNIFE), and in the context of Hitachi, providing their own
evaluations and experiences to identify the metrics that the European Community will use toassess the performance and possible financial support.

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Environmental

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Environmental vision and targets
Improving and protecting the environment is part of Hitachi Rail’s corporate responsibility and is a
key element in its business strategy, which aims to promote the long-term growth of the company’svalue.
In recent years, Hitachi Rail has continued on its path towards sustainability in the belief that acting
in respect of environmental values leads to the creation of lasting value for the company, customers,
and the wider community served.
To actively and responsibly contribute to combating the challenges posed by climate change,
Hitachi Rail complies with the current regulations and also applies best practices to achieve better
results, continuously improving its environmental management in an economically effective way.
To this end, Hitachi Rail has developed an approach based on analysis of the aspects and impacts
of its operations on the environment. In addition to identifying and implementing mitigation forenvironmental risks, this approach has allowed the company to identify environmental opportunities
and improvement areas and to deliver specific measures to meet today’s requirements and thefuture needs.

Environmental policy
Hitachi Rail is a certified Environmental Management System that meets the international standard
UNI EN ISO 14001.
The system identifies the most significant environmental aspects and impacts and the adoption of
the most effective management and mitigation measures through a structured and assured approach.

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Hitachi Rail has adopted an Environmental Policy focuses on safeguarding the environment at theheart of its management and development strategies, with a constant and targeted commitment
to preventing pollution and pursuing continuous improvements in its environmental services.
The policy is shared with all Hitachi Rail personnel and all Stakeholders online and via thecompany intranet.

The key principles of Hitachi’s environmental policy are:••••Protecting the environment by preventing and mitigating potential adverse impacts.
Improving and fostering the environmental characteristics of products and services.
Meeting and exceeding the legal obligations of compliance and voluntarycommitments.
Striving to continuously improve environmental performance and the environmental
management system.

The four strategic objectives are:
1. Environmental Management Systems are applied across the entire Organisation, driven
by the principle of continuous improvement and the definition of environmental indicators tomeasure the environmental performance of the Organisation.
••

Annual preservation of ISO 14001 certifications.
Rationalisation and simplification of the certifications in the various organisational
areas.

2. Reporting to citizens, institutions and other Stakeholders on the management andenvironmental performance of the Company.
••

Hitachi Rail

Publication of the Sustainability Report and open access given to the key
environmental parameters.
Communication with analysts and participation in various Sustainability indices.

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3. Promotion of sustainable environmental practices with suppliers, contractors andcustomers.
•••

Use of environmental performance-based supplier qualification criteria.
Informative/training meetings on the important environmental aspects at thecommencement of works through the diffusion of the Environmental Policy andexploring the ways in the impacts generated by the activities carried out (waste,emissions, discharges, etc.) are to be managed.
Assessment of the suppliers based on the environmental performance of the activities
carried out on Hitachi Rail’s behalf.

4. Observance of the legal obligations of compliance and voluntary commitments.
•••

Hitachi Rail

Ensure that the activities are carried out in compliance with said obligations andcommitments.
Assess observance of the subscribed obligations and commitments.
Correct any non-conformities on observance of subscribed obligations and voluntarycommitments.

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Towards a low-carbon society

The Hitachi Group conducts independently developed Environmentally Conscious Design
Assessments for all products and services involving a design process to steadily improve
environmental performance throughout the Group.
In May 2020 Hitachi Rail committed to CO2 reduction targets of achieving net-zero carbon
emissions at business sites (factories and offices) by fiscal 2030.
The value chain for Hitachi Rail products and services encompasses all stages, from theprocurement of raw materials and parts to production, transportation, use, disposal, andrecycling. Hitachi Rail has identified the environmental impact that may cause climate change,
resource depletion, and ecosystem degradation across the entire life cycle of products andservices, and has assessed the reduced environmental load through its business activities in
multifaceted ways and strives for further reductions.

400

trees

-67,750
KG of CO22

countries

Hitachi Rail
Hitachi Rail is an international leader with a global presence in signalling and the implementation of integrated transportsystems for Freight, passenger Railways and Mass Transit. We design, manufacture and implement signalling systems
for the management and control of freight and passenger traffic on mainline railways as well as metros. We design,develop and plan the work needed to provide the latest technology for your railway or metro system.

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Hitachi Sets New Target to Contribute to a Net Zero Society
At the time of writing this document, Hitachi has re-confirmed its commitment to address climatechange by strengthening its own climate target to contribute to a Net Zero society by achievingcarbon neutrality throughout its entire value chain, including production, procurement the useof products and services by FY2050. This bolsters the existing commitment of reaching carbon
neutrality at all its factories and offices globally by FY2030.
This new target revises Hitachi’s previous target of 80% reduction by FY2050 which was set in2016. Hitachi will contribute to the reduction of its customer’s CO2 emissions and continue toreduce environmental impact from the design stage in all its products to help develop world-classenergy efficiency. Hitachi is also committed to working with partners in its supply chain, throughits sustainable procurement guideline, issued in July 2021.
Hitachi is a principal partner of COP26 and is committed to becoming a climate change innovator,
helping governments, cities and companies cut their greenhouse gas emissions.
Hitachi Rail continuous its commitment to CO2 reduction targets of achieving net-zero carbon
emissions at business sites (factories and offices) by fiscal 2030.
The value chain for Hitachi Rail products and services encompasses all stages, from theprocurement of raw materials and parts to production, transportation, use, disposal, andrecycling. Hitachi Rail identifies the environmental impact that may cause climate change,
resource depletion, and ecosystem degradation across the entire life cycle of products andservices, assess the reduced environmental load through its business activities in multifaceted
ways and strives for further reductions.

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Eco-Design in Hitachi Rail
Design choices can help bring down supply-chain emissions. Hitachi Rail is focused on designing
products for sustainability by using greener materials, cutting waste, reducing product variance,increasing recyclability, improving reparability, and switching manufacturing processes to lowercarbon ones.
For many years, Hitachi Rail has integrated in its Environmental Management System the ISO
14006 Guidelines for incorporating “Eco-Design” from the design phase. This allows Hitachi Railto take into account all potential impacts from their products throughout the product life cycle.
Hitachi Rail has been adopting eco-design principles for many years. Different design solutions
fitting the same technical requirements are evaluated from the very beginning of the project.
Specific Eco profiles or light LCA (Life Cycle Assessment) studies are performed on different
rolling stock solutions in order to verify corresponding environmental effects on a trainset’s
footprint. This allows the Hitachi Rail Design department to consider environmental impacts likeany other constraints that need to be met.
Design solutions aimed at reducing environmental impact of trainsets quickly turn into design
best practices to be implemented, whenever applicable, on all future projects.
This has happened for high efficiency HVAC (Heating, Ventilation and Air Conditioning) andlighting systems, for super capacity energy recovery systems, for aerodynamics tests carried out
on bogies and car bodies and so on.
Adopting this approach, Hitachi Rail succeeded in selecting a list of eco-design best practices
that can be applied on every project whenever possible. Addressing sustainability at the designphase can have an enormous impact.

“80% of the environmental impact generated by-products services and infrastructures around us isdetermined at Project Stage” (J. Thackara, 2008).

Most of the environmental impacts related to the Hitachi Rail value chain are connected with therolling stock life cycle. This is a key area of focus - indeed, our ‘Rock’ trains currently in delivery toTrenitalia in Italy are more than 95% recyclable and consume 30% less energy than the previous
fleet.

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Hitachi Rail firmly believes that to reduce products environmental impacts you have to quantify
them and highlight which are the main sources. For this reason, for more than 15 years Hitachi
Rail has performed Life Cycle Assessments (LCA) on its production according to ISO 14040 and
ISO 14044 standards, applying a reliable internal procedure to collect, organise, elaborate andanalyse data for this purpose.
Hitachi Rail’s methodology to collect and check information, rules for Input/Output flows, andsimulations for energy consumption calculation during operations have been validated bycertification bodies during its EPD (Environmental Product Declaration) certification.
All suppliers to Hitachi Rail’s rolling stock factories are contractually required to provide a detailed
materials composition concerning the production of parts, components, and raw materials to theCompany’s Eco-Design Engineering department.
All information concerning production of raw materials and components assembled in company’splants, transportation of supplies, processes carried out in Hitachi Rail plants and trainset
operational data are collected and internally checked.
Commercial software used by Hitachi to develop LCA studies takes into account not only theindustrial processes required to produce each part, but the processes applied to basic materials
too, like moulding, stamping, wire drawings and so on.
Transport information (from suppliers to Hitachi Rail’s plants, between Hitachi Rail sites, for
product delivery as well as for waste transport are generally estimated considering the distancecovered, the weight of material delivered and using specific transportation processes (by road,sea, rail, air) included in software used for LCA modelling.
Information concerning energy, auxiliaries and water consumption, as well as emissions in air,water discharge, and waste due to activities carried out in Hitachi Rail plants involved in Trainset
production are collected by the environmental office.
Moreover, Hitachi Rail developed a tool to calculate trainset operational energy consumption
according to standard CLC/TS 50591:2013.
Each LCA carried out considers the most appropriate electric energy mix for plants involved inrolling stock assembly and for energy consumption during the operational phase. According
to relevant Product Category Rules (PCR), mix residual approach is used for electric energy
consumption in European countries.
Most of the environmental impact of rolling stock come from energy consumption during the 30 40 years of its operational life.

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The energy consumption simulator tool calculates rolling stock energy consumption over time,taking into account hypotheses and constraints meeting the following parameters:
•

•
•
•
•
•
•
•
•
•
•

Mission profile supplied by customer (lengths of the routes, differences in altitude,
expected duration of the routes, number of stations, acceleration-deceleration curves,etc.).
Number of passengers.
HVAC (Heating, Ventilation and Air Conditioning) use.
Internal and external lighting.
Other auxiliaries.
Energy recovery system adopted.
Weight of the rolling stock.
Trainset aerodynamic parameters.
Friction resistance.
Power unit and transmission system.
Drive assistance systems.

Finally, Life Cycle Assessments carried out by Hitachi Rail take into account not only the impact
of preventive maintenance during a train’s operational phase, but also the impact of waste
management during rolling stock dismantling at end of life. Our ‘Rock’ trains currently in delivery
to Trenitalia in Italy are more than 95% recyclable and consume 30% less energy than theprevious fleet.

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According to Hitachi Rail’s Service & Maintenance process, feedback coming from the field used
to solve potential problems raised on the first rolling stock produced but also to tune predictive
maintenance activity for the entire fleet. As a result, predictive maintenance scheduled by Hitachi
Rail are very detailed and assure an efficient, reliable service life of the Trainset.
Life Cycle Assessments issued by Hitachi Rail on rolling stock produced in its plants calculate allenvironmental indicators specified in relevant PCR (Product Category Rules).
LCA studies are used by Hitachi Rail to let Design focus on the main sources of environmental
impacts related to the trainset life cycle, in order to find a possible alternative solution and thus
reducing the trainset’s environmental footprint.
LCA can be also for communication purposes. Hitachi Rail issued and certified several
Environmental Product Declarations (EPD) according to ISO 14025 whose contents are based on
LCA study, like for example:•••

Caravaggio Train.
Metro Leonardo Heavy Rail Vehicle.
ETR 1000 very high-speed train.

EPD content is verified by a third-party certification body that checks primary data used in LCA
study and how the trainset life cycle is modelled in the LCA study.
Hitachi Rail EPDs are published on International EPD System web sitewww.environdec.com/library

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Social Life Cycle Assessment of products: the first train application
About 26 years ago, a “social welfare impact category” was proposed in the SETAC Workshop
Report (1993): “A Conceptual Framework for Life Cycle Impact Assessment”. This started thediscussion on how to deal with social and socio-economic criteria in assessing a product along
its life cycle. The main topic of the discussion during the second half of the 1990s was to what
extent a life cycle assessment of a product or a service that takes social criteria into account isdifferent from an LCA. Just like the LCA, it was proposed that Hitachi conduct S-LCA in line with
ISO 14040 (2006). The first studies on S-LCA were developed in 2006, but the first complete
framework was published in 2009 by UNEP/SETAC, entitled ‘Guidelines of Social Life Cycle
Assessment of Products’. A few years later, some methodological developments created theneed to update and further harmonise the UNEP Guidelines 2009 with an updated version.
This was published by UNEP in December 2020, with the title ‘Guidelines for Social Life Cycle
Assessment of Products and Organizations’.
The main objectives of the UNEP 2020 Guidelines are:
•
•
•
•
•
•

Hitachi Rail

Positioning S-LCA in the current context, a clear reference to the contribution to theAgenda 2030 Sustainable Development Goals is reported in the introduction.
Expansion of audience to include also non LCA experts with particular attention of
Cover methodological developments, including impacts assessment methodologies
type I and II and interpretation phase.
Recognize a plurality of established approaches, the social life cycle impact
assessment methodologies include different approaches developed in the literature.
Developing areas where minimum guidance prevails.
Integrate Social Organizational Life Cycle Assessment (SO-LCA) to extend the focus
from products to organization.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

The Social-LCA Project of HMU Masaccio Train has been developed in this particular context.
The main aim of the project is to implement S-LCA to a train life cycle for the first time, including
the most of the phases of its life cycle and develop a communication scheme towards a possible
social product declaration.
The study is being carried out by a team led by Prof. Marzia Traverso, an international expert of
S-LCA studies. Shee is the chair of the project for both the revision of the UNEP guidelines, andthe implementation of the first pilot project. She is also the project leader and convener of the ISO
14075 for the international standardization of the Social Life Cycle Assessment, project started in
April 2020.
The S-LCA has never been applied to a train before, this project with its results, will cover an
important scientific gap.
The train is a complex product; however, Hitachi Rail has extensive experience in theimplementation of environmental life cycle assessments (LCA), and several trains produced
by Hitachi Rail have their Environmental Product Declaration. This means that materials andcomponents, as well as suppliers, are already known and those data represent a first important
step to start with the study.
WORKERSVALUE CHAIN ACTORSORGANIZATIONS& PRODUCTS

CHILDREN

SOCIETY

LOCAL COMMUNITIESCONSUMERS

Figure 1 – Stakeholders categories according to the UNEP 2020

An important difference between LCA and S-LCA is the role played by the Stakeholders. Indeed,
if in the LCA the definition of the Stakeholders is relevant only for the audience of the study, in
S-LCA they represent an important parameter of the methodology. The social impacts assessed
are those related to the most relevant Stakeholders involved in the product life cycle. According
to UNEP 2020 6 main Stakeholders categories have been defined: workers, local communities,
consumers, society, value chain actors and children. This last one has been introduced in thecurrent UNEP 2020 Guidelines.
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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

According to those main Stakeholders categories, 40 impact categories, called subcategories,
have been defined. Those impact subcategories are derived by combining Stakeholders
categories with the main impact categories such as: Human rights, Labour rights, Health and
Safety and so on. For each subcategory we can have at least one indicator (see Figure 2).

Figure 2 – Assessment system from categories to the unit of measurement (UNEP 2020)

As reported in the UNEP 2020 guidelines, several results can be obtained by implementing
S-LCA and it is strongly affected by the typology of the data and the objective of the study.
Examples of results of an S-LCA include:•••

Hitachi RailA Social Footprint: End result of the S-LCA study overall or by impact category or
subcategory (e.g. high probability of child labour or number of educational degrees
obtained, etc.).
A Social Handprint: Results of changes to business as usual that create relative
positive outcomes or impacts (e.g. reduced levels of child labour if better practices are
implemented).
Materiality Assessment: Any type of information, date, or outcome that is of relevanceand may influence the conclusion (e.g. information that iron is produced in Country X
where forced labour is frequent).

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021••

A Social Hotspot analysis: Location and/or activity in the life cycle where a social issue(as impact) and/or social risk is likely to occur (e.g. bauxite production in Country X).
Social Risk: Social topic for which an adverse impact is probable; the probability could
also be quantified (e.g. child labour is a social risk, with high probability, since cobalt
production takes place in Congo where the probability of child labour is generallyhigh).

According to the UNEP guidelines, an S-LCA includes the following methodological phases:••••

Goal and scope, definition of the main objective.
Life cycle inventory.
Social Life cycle impact assessment .
Interpretation.

All these methodological phases will be implemented in HMU Masaccio Train for the first time
and the first results will be published within the end of FY 2021.

Class 800 intercity train during testing at Old Dalby.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Sustainable Facility
The Company is empowered also the accountability of its worldwide Facility department in orderto implement above strategy and achieve main targets defined inside of scope 1 and 2.
Starting from last year, the Facility management of Company assets is changing from a traditional
approach to more sustainable approach favoring a Sustainable Facility focalized to add value toEnvironmental and Energy management support.
So main strategic aims of Sustainable Facility are:•••

Implement globally energy management optimization plans according to sustainability
strategy during 2020-2030.
Lead worldwide partnership with an expert on the matter (Hitachi Europe) to implement
One Energy optimization strategy and approach inside Hitachi Rail starting from 2020.
Ensure a continuous efficient and effective global Real Estate properties managementwith the aim to maintain their suitability.

Main pillars are:1.
2.

Energy efficiency management
Resources efficiency

Main initiatives done and ongoing to ensure gradually Energy efficiency management and improvethe carbon footprint of Company are summarized in following slide.
Sustainable Facility Overview

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Main initiatives done and ongoing to ensure gradually Energy efficiency management andimprove the carbon footprint of Company are summarized in following slide.

GHG emission reductions at production sites and offices
GHG emission reductions at production sites and offices Hitachi Rail analyses the possible
impacts of its strategic decisions to reduce greenhouse gas emissions over the short, medium andlong term, in order to identify business development opportunities, improve efficiency and reducerisks.
The Company’s strategy is to accelerate the switch to renewable energy, improve energy andprocess efficiency in own operations, and leverage their buying power to mobilise the overall
decarbonisation of the economy, thus significantly reducing their emissions and those of theirpartners.
Hitachi Rail’s environmental policies aim to reduce its impact on the environment by identifying theareas of intervention and selecting specific indicators and related targets.
Actions to reduce greenhouse gas emissions are part of the environmental management systemthat Hitachi Rail has established at a global level, defining a carbon management strategy basedon the following principles:••

Hitachi Rail

Global approach: the development of mechanisms to increase commitment in all offices
and production sites.
Reasonable and feasible long-term objectives: the establishment of a clear and realistic
vision of the steps to be taken.

77Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

•
•
•
•
•
•

Support for the development of technologies: the development of advanced
technological solutions.
Expansion of audience to include also non LCA experts with particular attention of
Cover methodological developments, including impacts assessment methodologies
type I and II and interpretation phase.
Recognize a plurality of established approaches, indeed the social life cycle impact
assessment methodologies include different approaches developed in literature.
Developing areas where minimum guidance prevails.
Integrate Social Organizational Life Cycle Assessment (SO-LCA) to extend the focus
from products to the organization.

This strategy focuses mainly on three spheres of influence, as envisaged by the GHG Protocol:• Scope 1 covers the emissions from operations under a facility’s control, including onsite fuelcombustion: In-house activities and direct emissions from Hitachi Rail’s own sites - Scope 1
emissions.
• Scope 2 covers the emissions from the usage of electricity, steam, heat and/or coolingpurchased from third parties: Electrical energy suppliers and their operating emissions related to
Hitachi Rail’s activities - Scope 2 emissions.
• Scope 3 covers upstream and downstream value chain emissions, including procured products,
transport of suppliers and business travel, usage of sold products and product disposal; HitachiRail’s supply chain and the emissions resulting from the production and delivery of goods andservices - Scope 3 emissions.
In order to establish an improvement strategy, the company reports direct and indirect greenhousegas emissions, committing to reduce them through:••••Hitachi Rail

Policies on the mobility of people and goods.
Programmes for reducing consumption and improving energy efficiency.
Use of renewable energy sources.
Waste and water management.
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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Carbon Management System (CMS)
Hitachi Rail adopted a Carbon Management System (CMS) which enables the planning,
implementation and measurement of targets for the reduction of greenhouse gas emissions.
An efficient carbon management policy enables the Company to decrease consumption and reduceenergy costs, thereby improving its bottom line and offering the possibility of investing the savings.
The CMS has been developed in line with the relevant international standards. This system enables
the company to perform:
•
•
•
•
•
•
•

Analyses of actual emissions produced.
Monitoring and reporting on emissions.
Comparisons between historical data and forward-looking analyses.
An assessment of the impact of products, in terms of emissions over their entire life cycle.
Economic/environmental impact analyses in relation to current regulations on emission
reduction to determine assets’ potential value-at-risk.
The measurement of the effectiveness of emission reduction projects.
Communication on Hitachi Rail’s emission reduction performance to the Stakeholders,
including media, investors, rating agencies and other organisations.

Within its organisation, Hitachi Rail has appointed an Energy Manager responsible for providing
guidance and carrying out activities and projects with respect to energy savings at all of thecompany’s operating sites.

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Direct and indirect greenhouse gas emissions
Total emissions - direct and indirect - of GHG fell in absolute value from 80,368 tCO2e in the year
ended 31.03.20 to 46,905 tCO2e in the year ended 31.03.21, with a reduction of 33,463 tCO2e(-41.6%).
However, we must be consistent in comparing the data and refer to what the management action
can determine by affecting GHG emissions. For this reason, each period’s contingency effect must
be neutralised; in this case, the relevant periods overlap with the Covid-19 pandemic.
This reduced the mobility of people, and therefore the production of polluting. This phenomenon
is typical of the situation in the period under review and is not comparable with the previous one.
For this reason, the reference data must be stripped of the effects described. The reduction inemissions is therefore lower, equal to -30.5% (- 22,001.6 tCO2e) as indicated below.

TOTAL GHG Emissions without mobility [tCO2e]
FY 2019

FY 2020

39,317.4
22,666.1
18,317.1

30%

23,719.1

21,570.8

30%

20%

20%

10%

10%

0%

0%

5,884.4

Total scope 1

Total scope 1

Total scope 2

Total scope 2

Total scope 3

Total scope 3-22,001.6 tCO2e-30.5%

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UoM

FY 2019

FY 2020

Var.

Var.%

GHG SCOPE 1
Emissions due to energy production (natural gas)

tCO2e

10,143.3

10,343.1

199.8

2.0%

Emissions due to energy production (diesel)

tCO2e

19,048.2

4,908.4-14,139.8-74.2%

Emissions due to energy production (LPG)

tCO2e4,817.3

4,794.6

-22.7

-0.5%

Emissions from air conditioning systems (fugitive emissions)tCO2e5,262.5

3,619.0-1,643.5-31.2%

Emissions due to internal handling (lorries and forklifts )

tCO2e

46.1

54.0

7.8

17.0%

Total Scope 1

tCO2e

39.317,4

23.719,1-15.598,2-39.7%GHG SCOPE 2
Emissions due to electricity consumption

tCO2e

22,556.4

21,486.2-1,070.1-4.7%

Emissions due to district heating

tCO2e

109.7

84.6

-25.2

-22.9%

tCO2e

22,666.1

21,570.8-1,095.3-4.8%

Total Scope 2

GHG SCOPE 3
Emissions due to employee mobility

tCO2e8,309.5

1,117.4-7,192.1-86.6%

flights (short range)tCO2e2,150.3

417.7-1,732.5-80.6%

flights (long range)tCO2e6,159.2

699.6-5,459.6-88.6%

natural gas

tCO2e

1,324.4

1,344.8

20.5

1.5%

dieseltCO2e

3,891.7

1,012.3-2,879.4-74.0%

LPG

tCO2e

589.0

586.3

-2.8

-0.5%

petrol

tCO2e

0,1

0,1

0,0

-10.0%

recovered

tCO2e

242.9

209.8

-33.1

-13.6%

disposed of

tCO2e

2,094.9

572.6-1,522.3-72.7%

paper

tCO2e

108.0

69.1

-38.9

-36.0%

packaging (cardboard, plastic and wood)tCO2e1,123.9330.1-793.8-70.6%

Water supply

tCO2e

149.2

118.3

-30.8

-20.7%

Water treatment

tCO2e

551.1

523.7

-27.4

-5.0%

Total scope 3 (indirect emissions)tCO2e

18,384.6

5,884.4-12,500.2-68.0%TOTAL GHG EMISSIONS

tCO2e80,368.0

51,174.3-29,193.7-36.3%TOTAL GHG EMISSIONS WITHOUT MOBILITY
to neutralize the pandemic effects

tCO2e

72,058.5

50,056.9-22,001.6-30.5%TOTAL GHG EMISSIONS WITHOUT MOBILITY and KASADO

tCO2e

58,160.3

37,008.6-21,151.7-36.4%

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Variance Analysis of FY20: divergences vis a vis FY19
SCOPE 1
The contribution of direct emissions to the reduction of total GHG emissions measured by Hitachi
Rail is equal to 53.4%.
The following graphs represent the percentage breakdown of direct greenhouse gas emissions,by source and by type of site in FY2020.

FY 2020 - GHG Emissions Scope 1
by source

0%
15%
44%
20%

Emissions due to energy production (natural gas)
Emissions due to energy production (diesel)
Emissions due to energy production (LPG)
Emissions from air conditioning system (fugitive emissions)

0% Emissions due to internal handing (lorries and forklifts)
21%

FY 2020 - GHG Emissions Scope 1
by type of site
81%
7%
Manifacturing
Train maintenance centres
Offices12%

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Reasons for SCOPE 1 variation, greater than 15%•

Emissions due to energy production (diesel): -74.2%

It is due mainly to the diminished use of diesel fuel for heating in the Naples plant. The reasonsfor it are related to two different improvements on the Naples plant. A heating pump has been
installed in sections 15 and 16 of the production plant and on the manager building. In terms of
consumption of tons of diesel, this step justifies the reduction from nearly 5,000 tons in FY19
to today’s level of around 1,000 tons. This reduction is not related to the impact of the Covid 19
pandemic (and therefore to the subsequent temporary closure of the plants) as the consumptionof water - and consequently heated water - increased compared to the previous year.
•

Emissions from air conditioning systems (fugitive emissions): -31.2%

This result is less than in previous years due to less use and top-ups for F-gases in cooling andair conditioning. Production sites account for 78% of these emissions.
It is essential to reaffirm the very high Global Warming Potential of the F-gases mentioned above,
which has an impact from 1,500 to almost 4,000 times higher (as in the case of R404A) than CO2(GWP=1). From a company point of view, taking care of constant maintenance to avoid spills andinefficiency is of paramount importance.
•

Emissions due to internal handling (lorries and forklifts): +17.0%

This trend is to be verified as only one production site has fully responded. Perhaps it isappropriate to rephrase the question. However, the increase in emissions was due to the increasein production at the Pistoia plant.
The following graph shows how the greatest contribution to the reduction of direct GHG
emissions is due to the reduction of stationary combustion of diesel for energy production.
20%
0%

1.3%

Emissions due to energy production (natural gas)

0.1%
-0.1%

-20%

-10.5%

Emissions due to energy production (diesel)
Emissions due to energy production (LPG)
Emissions from air conditioning system (fugitive emissions)

-40%

LPG

-60%
-80%
-100%

Hitachi Rail-90.6%

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

SCOPE 2The contribution of indirect emissions to the reduction of total GHG emissions measured by
Hitachi Rail is equal to 3.8%.
The reduction in Scope 2 GHG emissions is mainly due to the lower use of electricity withdrawn
from the grid (-5.2%).
The following graph represents the percentage breakdown of indirect greenhouse gas emissions,by type of site in FY2020.
FY 2020 - GHG Emissions Scope 2
by type of site
65%
17%
Manifacturing
Train maintenance centres
Offices18%

Reasons for SCOPE 2 variation, greater than 15%•

Emissions due to district heating: -22.9%

Although the emissions due to the use of district heating have a very limited impact on HitachiRail’s scope 2 emissions, the lower use of this energy is due to:--

Hitachi Rail

Copenhagen’s downsizing process went from 2 to 1-floor office (from 1,300 sm to 650sm). Also, due to the pandemic’s impact, the offices have hardly been used over thelast 18 months.
It is the same for Solna. There has been minimal use of the office for the last 18
months. In addition, the landlord has implemented roof fans in the arcade outside
the office, which pushed heat from the sun outside, which has increased the natural
heating from outside. Moreover, a unit called GEO has been installed as well, which
has decreased the use of district heating.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

SCOPE 3The contribution of other indirect emissions to the reduction of total GHG emissions measured by
Hitachi Rail is equal to 42.8%.
The following graph represents the percentage breakdown of other indirect greenhouse gas
emissions by source in FY2020.

8%

FY 2020 - GHG Emissions Scope 3
by source

11%
49%
13%

Emissions due to energy due to consumed of fuelEmissions due to employee mobility
Emissions due to the production of waste
Emissions due to water

19%

Emissions due to consumed materials

Reasons for SCOPE 3 variation, greater than 15%•

Emissions due to employee mobility: -86.6%

The drastic reduction of flights (-86% of total air kilometres) is due to the restrictions required by
the spread of the Covid-19 pandemic.
•

Emissions due to consumption of fuels: -49.3%

Reduction of the use of fuel, especially diesel in the site of Naples. As previously mentioned,
the installation of heating pumps has drastically reduced diesel usage in Naples, determining in
addition to the reduction of direct emissions of scope 1 also indirect ones of scope 3.
•

Emissions due to production of waste: -65.5%

This reduction is due to a decrease in total waste produced (-30%) and a higher percentage of
waste sent for recycling (89% in FY20 against 71% in FY19)

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021•

Reduction in the use of materials: -67.6%

The reduction occurred mainly due to the decrease in the use of paper (-42%) and packaging (-54%).
The following graph shows how the greatest contribution to the reduction of other indirect GHG
emissions is due to the reduction of mobility employee due to the pandemic.
For this reason, the reference data to calculate both the total change in GHG emissions, and theemission intensity indicators, have been cleaned of this effect.
In the year ended 31.03.21 all GHG emission intensity indicators, which measure tonnes of CO2e
per thousand hours worked fell compared the previous year, due to the reduction of emissions inabsolute terms and the increase in hours worked of 4.1%.

20%
0%
-6.6%

-20%

-22.9%

-40%
-60%
-80%
-100%

Hitachi Rail

-0.5%

Scope 3 GHG Emissions:-12,502.2 tCO2e
Contributions to the result-12.4%
Emissions due to employee mobility
Emissions due to consumed materials-57.6%

Emissions due to consumed of fuels
Emissions due to production of waste
Emissions due to water consumption86Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

In the year ended 31.03.21 all GHG emission intensity indicators, which measure tonnes of CO2e
per thousand hours worked fell compared the previous year, due to the reduction of emissions inabsolute terms and the increase in hours worked of 4.1%.

GHG Emission Intensity(tCO2e/M hours worked)
5

4

3.473
3

2.318

2

1.895
1.098
0.999
0.221

1.093

1

0.486
0

TOTAL GHG Emission intensity(market based)
GHG Emission Intensity Scope 1

31.03.1 9

GHG Emission Intensity Scope 2

31 .03.2 0

GHG Emission Intensity Scope 3

Logistic - GHG emissions
As part of the strategy to reduce GHG emissions, Hitachi Rail is also very attentive to thecontainment of indirect ones. To complete the emissions of Scope 3 that the company has
decided to consider, those relating to inbound and outbound logistics were measured.
The calculated value relating to FY20 will be taken as a reference to measure the effectiveness ofthe policies relating to the efficiency of the group’s logistics.

GHG EMISSIONS DUE TO TRANSPORT OF GOODS (tCO2e)

Hitachi Railon roadby seaby plane

21,926.8
13,371.1
16,553.5

TOTAL

51,851.4

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The calculation of the transport goods emissions was carried out using in part the reports
transmitted by the logistics companies, in part through the Hitachi Rail databases by estimating
the distances travelled by land, sea and air and using the following conversion rates (DEFRA –Department for Environment Food & Rural Affairs -Gov. UK):•••

Hitachi Railon road: 0.8654 Kg CO2e/km (all HGV (Havy Goods Vehicles) Average Laden)
by sea: 0.016142 KgCO2e/tonne.km (Cargo ship - Container ship – Average)
by plane:
1.13382 KgCO2e/tonne.km Freight flights – International With RF (Including theinfluence of non-CO2 climate change effects of aviation (water vapour, contrails,
NOx etc.)
2.20946 KgCO2e/tonne.km - Freight flights - Short-haul (<3,700km)

88Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Towards a resource efficient society
The issues of resource scarcity, triggered by rising demand and population growth, arecommon concerns for the entire world. As our populations grow and living standards
improve, there are higher volumes of resources collected, extracted, used, and eventuallyemitted as waste.
Hitachi Rail is responding to these issues by working with customers and society to help
build a society that uses resources more efficiently.
Hitachi Rail creates higher economic value designing and promoting use of fewer andpursue products and solutions, as well internal processes and activities, with a reducing
environmental burden.

Energy consumption
The majority of energy used is electricity for lighting, plant operation and building temperature
control. Hitachi Rail uses fossil fuels, mainly natural gas, and district heating to heat workplaces.
In order to reduce electricity consumption, the company carries out constant work on its realestate assets, to increase their eco-efficiency. Energy-saving lighting and heating/coolingtechnologies are used as much as possible, such as:
•
•
•
•
•
•
•

Hitachi RailLED lighting systems.
building envelopes and thermal insulation for windows and doors.
direct-expansion heating/cooling systems (heat pumps).
presence detectors or clocks/timers to control the on and off switching of the systems.
improvement in the data centre’s energy efficiency.
affixing of signs to remind personnel about energy saving projects, such as turning off
lights, laptop computers and devices that consume energy.
reduction in the number of vehicles used by the company.

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Energy consumption trends
In the year ended 31.03.21, total energy consumption - natural gas, electricity, diesel, LPG andPetrol, District heating - amounted to 663,466 GJ, down 23.3% compared to the previous year.

Energy consumption (GJ)

825
75,641

635

253,555

359,495

75,28565,928Natural gas

341,204

DieselElectricity

LPG and Petrol
District heating

175,669

180,414This reduction was mainly due to the lower consumption of Diesel, -187,627 GJ (-74.0%), ofElectricity, -18,291 GJ (- 5.1%), compared to an higher consumption of Natural gas, + 140,244
GJ (+3.0%); these changes mainly affected the production sites.
The energy consumption trend of the two-year period at the production sites and train
maintenance centres and office sites is illustrated in the following table.
ENERGYCONSUMPTIONPRODUCTION SITESAND TRAIN MAINTENANCE CENTRESOFFICES

TOTAL

var.%

31.03.20

31.03.21

31.03.20

31.03.21

31.03.20

31.03.21

160,638

166,787

15,03013,626

175,669

180,414

Electricity

290,454278,703

69,04162,501

359,495

341,204-5.1%

Diesel252,246

64,082

1,309

1,846

253,555

65,928-74.0%LPG and Petrol

75,46875,164174

121

75,64175,285-0.5%

Natural gas

3.0%

District heating

0

0

825

635

825

635

-22.9%TOTAL (GJ)

778,806

584,737

86,37978,729865,185

663,466-23.3%In the year ended 31.03.21 all Energy intensity indicators, which measure GJ per thousand
hours worked fell compared the previous year, due to the reduction of consumption in absoluteterms and the increase in hours worked of 4.1%.

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Energy intensity [GJ per M hour worked]

0.377

0.346

0.255

0.242

0.012

0.012
31.03.20

31.03.21

Total energy intensity
Energy intensity�
(production sites
and train maintenance centres)

Renewable energy
Hitachi Rail invests in solar and other forms of renewable energy at our business sites and plants.
New plans are under definition and will be launched at the beginning of the fiscal year, including
further challenging decarbonisation goals. The company will accelerate these efforts, aiming toraise the share of renewable energy in its total electricity consumption.
The company recognises that achieving Sustainable Development Goal 7 (SDG7) will benefit
billions of people all over the world, using its products and transportation solutions.
In the following tab, electric energy consumption is divided by type of site and the % which
derives from renewable and nuclear sources.

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ELECTRICITYCONSUMPTIONUnit

FY 2019

FY 2020var.

var. %

MANUFACTURING
Electricity purchased from the
National Power GridkWh63,433,772

60,464,499-2,969,273-4.7%

from renewable sources(Renewable Energy
Certificates)

kWh

13,664,709

13,906,633

241,924

1.8%% FROM RENEWABLE
SOURCES

-

21.5%

23.0%

-

-

from nuclear sourcekWh1,405,419

1,324,786-80,633-5.7%% FROM NUCLEAR SOURCES

-

2.2%

2.2%

-

-

TRAIN MAINTENANCE CENTRESElectricity purchased from the
National Power GridkWh

17,247,946

16,953,111-294,835-1.7%

from renewable sources(Renewable Energy
Certificates)

kWh106,781

71,809-34,971-32.8%% FROM RENEWABLE
SOURCES

-

0.6%

0.4%

-

-

from nuclear source

kWh

-

-

-

-

% FROM NUCLEAR SOURCES

-

-

-

-

-

OFFICESElectricity purchased from the
National Power GridkWh

19,178,045--1,816,565-9.5%

from renewable sources(Renewable Energy
Certificates)

kWh

500,128--231,522-46.3%% FROM RENEWABLE
SOURCES

-

2.6%

1.5%

-

-

from nuclear sourcekWh2,802,251

2,644,410-157,841-5.6%% FROM NUCLEAR SOURCES

-

14.6%

15.2%

-

-

TOTAL
Electricity purchased from the
National Power GridkWh99,859,764

94,778,999-5,080,764-5.1%

from renewable sources(Renewable Energy
Certificates)

kWh

14,271,617

14,247,048-24,569-0.2%% FROM RENEWABLE
SOURCES

-

14.3%

15.0%

-

-

from nuclear sourcekWh4,207,670

3,969,196-238,474-5.7%% FROM NUCLEAR SOURCES

-

4.2%

4.2%

-

-

Consumption of substances and materials
Hitachi Rail is very aware of the contribution that efficient consumption of raw materials can give,in terms of contribution for CO2 reduction. The company promote the reduction of intensive useof raw materials in line with the OECD Council principles and its sustainability strategy.

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

This commitment is reflected through the definition of a reliable evaluation of raw material uses indifferent company activities, which is sometime difficult to establish for some specific businesslike for electronic and electromechanical components. However, as described in this document,
Hitachi Rail search for increasingly standardised designs innovation can lead to an overall
reduction in the direct or indirect consumption of raw materials.
MATERIALS AND SUBSTANCES USED

31.03.20

31.03.21

104.20

82.79

0.11

-

.

-

104.0982.79

94,806.67

105,837.08

Nitrogen [t]80,295.57

83,878.32

Carbon dioxide [t]14,448,98

21,866.17

Oxigen [t]

48.41

80.37

Argon [t]

13.72

12.22

Paints (water based) [t]149.64157.22

Sewage treatment agents [t]101.0074.00

Thinner (organic solvent) [t]

35.50

18.07

Catalyst [t]

48.65

24.29

Putty [t]

56.66

67.45

Degreasing agents [t]

13.06

14.63

Oil [t]

5.43

5.53

Glues and adhesives [t]

4.40

2.50

Alluminium [t]new material [t]recycled material [t]scrap [t]Liquefied compressed gases [t]Hitachi Rail93

Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

CONSUMPTION OF PAPER AND PACKAGING MATERIALS

31.03.20

31.03.21

122.1683.15

new material [t]

69.03

42.24

recycled material [t]

53.13

40.91

575.713.67

567.96

3.64

7.75

0.03

51.70

50.61

new material [t]

40.06

39.30

recycled material [t]

11.64

11.31

1,005.80

695.401,005.65

687.30

0.15

8.10

77.26

34.75

new material [t]

50.59

8.12

recycled material [t]

26.67

26.63

Paper [t]Mixed material packaging [t]new material [t]recycled material [t]Wood packaging [t]Plastic packaging [t]new material [t]recycled material [t]Cardboard packaging [t]Water management
The sustainable management of water during withdrawal and use favours the maintenanceand improvement of the use of this precious resource, ensuring less waste and a reduced
environmental impact.
The company is aware that it can continually improve water use by reducing pollution, eliminating
waste and fighting the release of chemicals and hazardous materials, halving the percentage ofuntreated wastewater and substantially increasing recycling and safe reuse.
Hitachi Rail’s core business does not critically highlight the use of this resource. However, thecommitment in the control and management of this resource is always very high, even in related
indirect activities. The data show a reduction of the water withdrawn equally to 38,681.7 cubic
meters (-5.0%).
The KPI – Total water withdrawal per hour worked shows a reduction of 9.7% also due to a slightincrease in hours worked.

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PRODUCTION SITESWITHDRAWAL OF WATER

AND TRAIN MAINTENANCE CEN-

OFFICES

TOTAL

TRES
31.03.20

31.03.21

31.03.20

31.03.21

31.03.20

31.03.21

Water drawn from public main [mc]326,324.5

264,109.4

107,258.4

79,813.8

433,582.9

343,923.2

Water drawn from wells [mc]344,490.0

395,637.0

289.0

120.0

344,779.0

395,757.0

670,814.5

659,746.4

107,547.5

79,933.8

778,362.0

739,680.2

TOTAL

Total water withdrawal per hour worked

0.038

0.034

31.03.20

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31 .03.2 1

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Towards a harmonized society with nature

Insert Image

In order to achieve a harmonized society with nature so that everyone may continue to enjoy
its benefits, Hitachi Rail has established targets to minimise its impact on natural capital aspart of its long-term environmental targets. It accounts for two types of activity: Positive andnegative Positive activities include providing products and services that contribute to ecosystempreservation and undertaking social contribution activities to protect the environment through thepreservation of biodiversity and ecosystems.
Negative impact activities’ are classified as emissions of chemical substances into theatmosphere and the generation of waste materials.
By quantifying positive and negative impact activities across the value chain, Hitachi advances
initiatives to reduce its negative impact and maximize its positive impact.

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New Circular Economy Business Model Project
The Circular Economy means going beyond the traditional “take-make-waste” that is typical of
linear economy, where natural resources are extracted, transformed, used by suppliers, combinedin a product and discarded at end of life (Andersen, 2007). Today’s linear economy cannot delivera sustainable world, where finite natural resources and the ability of the environment to absorb
waste leads to a remarkable increase of resource cost and uncertainty of supply (Ellen MacArthur
Foundation, 2012).
Put simply, the Circular Economy aims to monetize waste in order to eliminate it from our value
chains – making businesses both more financially and environmentally more sustainable.
Recent studies show that keeping resources in use for as long as possible, and using themefficiently, are particularly important in the rolling stock industry.
This means a strong commitment to avoid premature obsolescence of parts and material.
For example, if Hitachi Rail can use digital technologies to predict and prevent unnecessary
maintenance on a bogie, it is possible to keep that bogie safely operating for longer and avoid
wasteful maintenance activities that require us to spend time, money and material maintaining it‘just in case.’
Hitachi Rail already manufactures highly recyclable trains (above 95% in some cases), recovers ahigh percentage of materials during maintenance operations, as well as refurbishing and reusing
components from older products to fit new products.
But more can be done. As a result, Hitachi Rail has begun to incorporate the concept of the
Circular Economy within its Environment and Quality Management Systems at production sites
in which the relevant certifications are managed. As a result, Life Cycle Analyses are now part ofall projects, and Environment Product Declaration certification processes are on going across theportfolio.

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The results of the Circular Economy Project allow Hitachi Rail to evaluate the opportunity- costof alternative business models in terms of socio-economic (Life Cycle Cost, Social Life Cycle
Assessment) and environmental impact (Environmental Life Cycle Assessment). Hitachi Rail’s
Circular Economy Project consists of 3 methodological steps and 10 main activities.
The Project Manager is responsible for ensuring the customer is satisfied, responding to any
issues that might arise over the course of the contract.
The organisation of bidding and project management activities is fundamental to carrying out
a project that meets the quality requirements of the products and services offered and ensures
their provision according to deadline and budget restrictions. To this end, the objective of project
management is to protect the interests of Hitachi Rail’s Stakeholders, including shareholders,
who are mainly focused on the results of the business, and its customers, who want to receive
top quality responses according to established schedules in line with the transportation needs ofa city or the community at large.
In this area, the most significant development in market dynamics in recent years has entailed
the progressive shift from the provision of products and technologies to the increased customer
demand for turn-key transportation solutions that efficiently meet the needs of local andnational institutions. This new type of offer requires the ability to support the customers, who areincreasingly considered less as buyers and more as partners, in the management of a projectthroughout its entire life cycle.

Waste and effluents
The production of waste is an environmental aspect that is assessed and measured at all Hitachi
Rail sites and offices together with the analysis of work sites and construction of civil andtechnological products.
Hitachi Rail’s policy is to reinforce the principle of re-use, recycling and recovery of waste. All its
sites have waste collection areas based on the type of waste and site layout. External specialist
companies collect and process hazardous and non-hazardous waste. The most prominent
waste at production sites relates to paper, cardboard and wood packaging, metal and end of life
equipment.
The following table provides details on the waste produced at the production sites and offices,with the fractions sent to recovery and disposal specified.

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PRODUCTION SITESAND TRAIN MAINTENANCE
CENTRESWASTE PRODUCTION

OFFICESTOTAL WASTE

31.03.20

31.03.21

31.03.20

31.03.21

31.03.20

31.03.21

10,540.6

9,609.5

4,399.4

802.1

14,940.0

10,411.5% recovered

90.9%

91.7%

28.7%

87.0%

72.6%

91.3%

% disposed of

9.1%

8.3%

71.3%

13.0%

27.4%

8.7%

1,005.4

679.9

3.6

6.8

1,009.0

686.8% recovered

52.6%

48.9%

54.8%

88.3%

52.6%

49.3%

% disposed of

47.4%

51.1%

45.2%

11.7%

47.4%

50.7%

Non-hazardous [t]Hazardous [t]In the year ended 31.03.21, total waste production amounted to 11,098.3 tonnes, down 30.4%
compared to the previous year. The percentage of recovered waste goes from 74.3% to 91.9%.
The KPI – Kg of waste per hour worked shows a reduction of 32.3% also due to a slight increasein hours worked.
TOTAL WASTE

4,573.8
28.7%

1,250.5
11,3%

9,847.8
88.7%

11,375.1
71.3%

Total waste recovered
Total waste disposed of
31.03.20

31.03.21

KPI - Kg of waste produced per hour worked

1.058
0.717

31.03.20

Hitachi Rail

31 .03.2 1

KPI - Kg of waste produced per hour worked

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

The waste water produced at the sites can be classified on the basis of its use upstream from
disposal, as domestic (or similar) and industrial.

PRODUCTION SITES AND TRAIN
MAINTENANCE CENTRESWATER DRAINAGE

OFFICES

TOTAL

31.03.20

31.03.21

31.03.20

31.03.21

31.03.20

31.03.21

Total volume of domestic
or sanitary waste water [m³]213,570.0

172,276.0

26,025.2

27,059.0

239.595.2

199,335.0

Total volume of industrial
waste water produced on site[m³]

75,496.0

1,890.0--75,496.0

1,890.0

289,066.0

174,166.0

26,025.2

27,059.0

315,091.2

201,225.0

TOTAL

Polluting emissions
For Hitachi Rail, pollutant emissions related to the consumption of non-renewable resources used
to run thermal plants (methane and diesel) and to the production processes that emit volatileorganic and inorganic compounds.

AIR EMISSIONS

31.03.20

31.03.21

NOx (Kg)

44,930.4

29,460.4

SOx (Kg)

35,676.5

9,387.5

CO (Kg)

15,683.0

7,126,2

Volatile Organic Compounds (Kg)

144,855.4

155,786.6

Volatile Inorganic Compounds (Kg)

2.1

5.1

For offices, emissions are calculated using the coefficients issued by the European Environmental Agency (Air Pollutant Inventory Guidebook 2016).

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Human capitalIn this fast paced, global, and digital world, diverse talent is a driver for innovation and valuecreation.
Hitachi Rail aims to build a company where talent from diverse cultural backgrounds,
experiences, and ideas can play an active role to cultivate a common identity in all employees
worldwide so they may share the values of Harmony, Sincerity, and Pioneering Spirit thatcomprise our core mission.
Hitachi Rail seeks to attract, develop, and organise employees by building good relationships
with them. It does so by acknowledging their fundamental rights, providing equal opportunities,
and optimising work-life balance. The Company also actively engages in regular dialogue
with employees regarding compensation and career development through its Global People
Management System as well as through regular dialogue between managers and employees.
In the pursuit of company objectives, our people must be aware that ethics are of immense value
to the company and accordingly, no conduct is tolerated that, is in violation of the law, current
regulations, the organisational, management and control model or the Code of Ethics (even when
it may appear to benefit Hitachi Rail).
The Hitachi Rail workforce is shown in the following tables. Employee categories are broken
down by gender, geographical location, professional categories, education, age and company
seniority, types of contracts.

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31.03.2019

NUMBER OF
COLLABORATORSBY REGION

MEN

WOMEN

ITALY

3,655

JAPAN

2,968

EMEA
USA
APAC
TOTAL

31.03.2020
TOTAL

MEN

WOMEN

TOTAL

%W
on total

634

4,402

4.9%

4,004

705

4,709

5.2%

296

3,441

2.3%

3,294

309

3,603

2.3%

2,788

522

3,310

4.1%

2,883

560

3,443

4.1%

608

212

820

1.7%

751

239

990

1.7%

1.1%

686

160

846

1.2%

753

174

927

1.3%

14.3%

10,995

1,824

12,81914.2%

11,685

1,987

13,672

14.5%

TOTAL

%W

MEN

WOMEN

TOTAL

%W
on total

MEN

WOMEN

TOTAL

%W
on total
0.1%

TOTAL

MEN

WOMEN

624

4,279

4.9%

3,768

288

3,256

2.3%

3,145

3,052

556

3,608

4.4%

568

202

770

1.6%

615

144

759

10,858

1,814

12,672

MEN

WOMEN

31.03.2019

PROFESSIONAL CATEGORIES

31.03.2021%W
on total%W
on total

31.03.2020

31.03.2021

133

9

142

0.1%

133

10

143

0.1%

159

9

168

Middle Management

1,210

95

1,305

0.7%

1,279

102

1,381

0.8%

1,290

117

1,407

0.9%

White collar

7,188

1,550

8,738

12.2%

7,202

1,547

8,749

12.1%

6,134

1,552

7,686

11.4%

Executive

Blue collar
TOTAL

2,327

160

2,487

1.3%

2,381

165

2,546

1.3%

4,103

309

4,412

2.3%

10,858

1,814

12,672

14.3%

10,995

1,824

12,81914.2%

11,686

1,987

13,673

14.5%

WOMEN

TOTAL

%W
on totalMEN

31.03.2019

AGE

MEN

31.03.2020

WOMEN

TOTAL

%W

MEN

31.03.2021
WOMEN

TOTAL

%W
on total
2.0%< 30 years

1,284

257

1,541

2.0%

1,256

254

1,510

2.0%

1,362

280

1,642

30-50 years

6,800

1,152

7,952

9.1%

6,787

1,161

7,948

9.1%

7,259

1,269

8,528

9.3%

>50 years

2,774

405

3,179

3.2%

2,952

409

3,361

3.2%

3,065

438

3,503

3.2%

10,858

1,814

12,672

14.3%

10,995

1,824

12,81914.2%

11,686

1,987

13,673

14.5%

MEN

WOMEN

TOTAL

%W
on total

TOTAL

31.03.2019
SENIORITY

31.03.2021

31.03.2020

MEN

WOMEN

TOTAL

%W

MEN

WOMEN

TOTAL

%W
on total< 5 years

4,142

762

4,904

6.0%

4,236

775

5,011

6.0%

4,399

855

5,254

6.3%

5-10 years

1,615

321

1,936

2.5%

1,548

308

1,856

2.4%

1,730

405

2,135

3.0%

11-15 years

1,539

280

1,819

2.2%

1,584

273

1,857

2.1%

1,709

250

1,959

1.8%

16-20 years

1,107

152

1,259

1.2%

1,188

189

1,377

1,5%

1,392

222

1,614

1.6%

21-25 years

608

47

655

0.4%

610

41

651

0.3%

629

46

675

0.3%

> 25 years

1,847

252

2,099

2.0%

1,829

238

2,067

1.9%

1,827

209

2,036

1.5%

10,858

1,814

12,672

14.3%

10,995

1,824

12,81914.2%

11,686

19,87

13,673

14.5%

TOTAL

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

EMPLOYEES CONTRACT TYPES
31.03.2021
ITALY

JAPAN

EMEA

USA

APAC

TOTAL

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

TOTAL

No. with
open-ended
contracts

3,992

701

3,079

274

2,802

531

751

239

695

157

11,3191,902

13,221

No. with fixedterm contracts

12

4

215

35

81

29

0

0

58

17

366

85

451

TOTAL

4,004

705

3,294

309

2,883

560

751

239

753

174

11,685

1,987

13,672OTHER CONTRACT TYPES
31.03.2021
ITALY

JAPAN

EMEA

USA

APAC

TOTAL

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

TOTAL

Temporaryworkers

269

34

782

139

18

17

0

0

0

0

1,069

190

1,259

Workers witha projectcontract

0

0

272

0

0

0

0

0

0

0

272

0

272

Trainees

15

7

22

3

19

10

0

0

0

0

56

20

76

Employee with
contractsof different
categories

2

0

0

0

113

21

787

245

1

0

903

266

1,169

TOTAL

286

41

1,076

142

150

48

787

245

1

0

2,300

476

2,776

FULL-TIME AND PART-TIME
31.03.2021
ITALY

JAPAN

EMEA

USA

APAC

TOTAL

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

TOTAL

No. Full-time
employees

3,988

643

3,260

306

2,856

501

750

239

749

164

11,603

1,853

13,456

No. Parttime
employees

16

62

34

3

27

59

1

0

4

10

82

134

216

TOTAL

4,004

705

3,294

309

2,883

560

751

239

753

174

11,685

1,987

13,672

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Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

Talent acquisition
The fiscal year 2020 has been characterised by the Covid-19 pandemic. This made us change
our recruiting process, offering an opportunity to evolve and fully embrace the digital world. This
opportunity for change saw us apply a more flexible approach that used technology to interview
candidates and even make appointments without physically meeting. The pandemic showed
us a new and efficient way of delivering resourcing solutions and ensuring the Talent Acquisition
service to the business was not significantly impacted, thus contributing to business continuity.
The competencies of all recruiters have improved, adding more technological skills such as theuse of different videoconference platforms. This has allowed the team to be more inclusive andgive the opportunity to meet online candidates from more than 40 different nations.
In order to respect different cultures, the Talent Acquisition team followed specific online training
on how to recruit in this challenging time, fully embracing this new way of working so that Hitachi
Rail never stopped hiring. As a result of this, the company was able to have a social impact on
reducing the level of unemployment that occurred due to Covid-19.
One of the missions of the Global Talent Acquisition team is to be closer to the business needs
and to improve the ability to better recognise the candidate’s technical competency, ensuringhigh calibre candidates are selected at the right time. Furthermore, to enhance the team’s
technical knowledge, Hitachi Rail academy tailored its training for 2020 to enable online delivery
thus ensuring our ability to upskill was not impacted during the pandemic.
In 2020 Hitachi Rail recruiters started working together globally as one Talent Acquisition team.
This offered them an opportunity to diversify their skill and industry knowledge. Thosewho
previously focused on the Rolling Stock opportunities acquired a greater understanding of
Signalling and those who had previously focused on Signalling learned about Rolling Stock.
The pandemic moved all relationships/activities with educational institutions, schools anduniversities online, as well as some job fairs.

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Despite this, Hitachi Rail has continued to work collaboratively to ensure our commitment to
the Hitachi Rail Diversity & Inclusion programme was sustained and as such, it can report somemonumental achievements, as follows:•••

the recruitment of the first Saudi woman in HR.
The recruitment of 8 Emirati engineers, four women and four men.
The participation in Italy in the II level Master’s degree in railway at the La Sapienza
University of Rome, which led to the hiring of two people.
The participation in Saudi Arabia in the program of the Ministry of Human Resources
Tawteen, which allowed us to reach and exceed the required numbers of saudis.

•

HIRES
31.03.2021
ITALY

JAPAN

EMEA

USA

APAC

TOTAL

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

TOTAL

< 30 years

98

31

95

6

66

25

24

5

39

10

322

77

399

hiring rate

2.6%

4.9%

2.9%

1.9%

1.6%

3.5%

3.9%

2.4%

5.7%

6.3%

2.9%

4.2%

3.1%

30-50
years

269

41

37

6

126

35

69

19

122

20

623

121

744

hiring rate

7.1%

6.5%

1.1%

1.9%

3.1%

5.0%

11.3%

9.0%

17.8%

12.5%

5.7%

6.6%

5.8%

>50 years

36

12

26

2

41

10

23

4

28

2

154

30

184

hiring rate

1.0%

1.9%

0.8%

0.6%

1.0%

1.4%

3.8%

1.9%

4.1%

1.3%

1.4%

1.6%

1.4%

TOTAL

403

84

158

14

233

70

116

28

189

32

1.099

228

1.327

4.8%

4.5%

5.8%

9.9%

19.1% 13.2% 27.6%

20.0%

10.0%

12.5%

10.4%

hiringrate

10.7% 13.2%

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TURNOVER
31.03.2021
ITALY

JAPAN

EMEA

USA

APAC

TOTAL

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

TOTAL

< 30 years

12

1

14

2

30

10

12

1

24

13

92

27

119

turnover
rate

0.3%

0.2%

0.4%

0.6%

0.7%

1.4%

2.0%

0.5%

3.5%

8.1%

0.8%

1.5%

0.9%

30-50
years

82

8

17

2

105

22

30

9

73

7

307

48

355

turnover
rate

2.2%

1.3%

0.5%

0.6%

2.6%

3.1%

4.9%

4.2%

10.6%

4.4%

2.8%

2.6%

2.8%

>50 years

72

5

38

2

85

13

18

2

23

1

236

23

259

turnover
rate

1.9%

0.8%

1.2%

0.6%

2.1%

1.8%

3.0%

0.9%

3.4%

0.6%

2.1%

1.3%

2.0%

TOTAL

166

14

69

6

220

45

60

12

120

21

635

98

733

turnover
rate

4.4%

2.2%

2.1%

1.9%

5.5%

6.4%

9.9%

5.7%

17.5%

13.1%

Diversity, inclusion and multiculturalism
Hitachi Rail recognises that having a diverse workforce, where we create an environment of
inclusivity for all to thrive, is imperative for sustainable growth and fundamental in building
successful partnerships with our key Stakeholders groups. From our people, customers, andsuppliers though to the communities we serve. All In line with our values of Harmony, Sincerity
and Pioneering Spirit.
Diversity and Inclusion is a core focus across the Hitachi Group. Hitachi Rail works incollaboration with our colleagues in the Hitachi Diversity and Inclusion Development Centre, tobuild synergies, and achieve common goals and objectives.
At Hitachi Rail our ongoing commitment is to improve Diversity and Inclusion for the benefit of allwith initial attention on increasing gender diversity. A long-term ambition is to have parity of thepercentage of female managers to female employees. Our next goal along this path is to achieve-75% ratio – the percentage of female managers to female employees by the end of FY24.

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Given our commitments to Diversity and Inclusion, in 2020 the Company has created a role within
the business, to deepen further our Diversity and Inclusion activities - across the whole of Hitachi
Rail.
What does this include?
•
•

•
•
•
•
•

Focussing on activities and development opportunities that address working equitably,
inclusively and on merit only for all.
Listening to our people and incorporating their feedback into our work as we move
forward. Crucially, informing our people of actions and progress. To further engage on
the topic and promote inclusivity.
Visibility of internal vacancies for all – where applications are encouraged if skills andexperience criteria are met.
Recognising that different business areas have their specific challenges and address
them accordingly.
Having a continuous improvement approach to recruitment and selection to support
our Diversity and Inclusion goals.
Present Hitachi Rail externally in a clear and transparent way – using descriptions andimagery that our employees recognise.
Working hard to promote Hitachi Rail as an employer of choice for target talent acrossall our recruitment channels.

In recent times, Hitachi Rail has gone through extensive change. Therefore, there is much to doin providing a consistent approach across the whole of the business, in terms of Diversity andInclusion. However, Hitachi Rails fully recognises the need to do so and relishes the challengethat is been presented . We will continue to focus our efforts to achieve our goals. In terms of thediversity of our people and thought, in the most inclusive way.

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Hitachi Rail continues to strive for a diverse workforce that is best-positioned to deliver for its
customers and the communities it represents Hitachi Rail regards personal differences suchas gender, nationality, race, religion, background, age, and sexual orientation – as well asother differences – as facets of people’s individuality. By respecting employee individuality andunderstanding them as an advantage, Hitachi Rail frames its diversity and inclusion as conducive
to both the individual’s and the company’s sustainable growth.
Hitachi Rail continues its commitment to provide a fully inclusive approach to all its employees by
having clear and transparent processes and support in terms of development, opportunities andwell-being.
Gender diversity is a key focus – in the last 12 months the Company has seen the female
workforce increase by 0.5% outside of Japan in terms of the percentage of all employees, whilein growth terms our female population has increased by 10% outside of Japan.
Highlights of the last 12 months include:
•
•
•
•
•

Training in terms of communication and use of simple English – particularly withregards to how to work effectively in a virtual world due to the global pandemic.
Full visibility of internal vacancies for all.
Creation of consistent recruitment processes across Hitachi Rail.
Consistent talent development plans for all.
Internal and external promotion of “Women in Hitachi Rail” in conjunction with
International Women’s Day.

In addition, in the UK, Hitachi Rail is a signatory to the Railway Industry Association (RIA) EDI
charter. However, as Diversity and Inclusion is seen as intrinsic to business performance, acontinuous improvement approach is taken to all activities.
Over the next 12 months, Hitachi Rail will monitor results against key performance indicators
closely. Key projects anticipated include:
•
•
•
•
•

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Undertaking a survey of female employees on their views of working at Hitachi Rail.
This will further inform the strategic and tactical approach to hire and retain women.
Developing training materials on the topic of unconscious bias to further build a cultureof inclusivity.
Deepening the focus on mentoring to support the development of employees.
Targeted recruitment activity.
Build our Employer Brand to fully reflect the diversity of Hitachi Rail.

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Training and performance appraisal
In FY20 Hitachi Rail commenced an activity aimed at building an integrated framework of learning
processes. As a first step a consolidated global learning needs analysis process was undertaken
to capture the competence demand. This was done in order to address the global businesstargets and requirements following Hitachi Rail global integration.Through 2020, the pandemic
affected several activities in the training plan, reducing access to face-to-face opportunities.
Despite this new challenge, a significant effort in virtualising learning initiatives allowed us tocontinue to maintain our training agenda for people working remotely in the new global/matrix
environment.
Global initiatives for Remote Working for all employees and an extension of dedicated managerial
training on remote management (MCR: Motivate, Communicate, Reciprocate) have actively
promoted international collaboration. Other specific training such as “Working in international
teams”, or “Managers series” have also been delivered.
“On board Hitachi Rail” programme has been promoted to all employees and new starters,
through the curation of content and e- learning resources, to improve their awareness of thefull group, its capabilities and ambition. The “On board Hitachi RSBU” programme has beenpromoted to all employees and new starters, through the curation of content and e-learning
resources, to improve their awareness of the full group, its capabilities and ambitions.
Technical and professional training has also followed the same path when possible, allowing thecompletion of the digitalisation and standardisation of competence certification management

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for Newton Aycliffe facility, as well as implementation of BIM (Building Information Modelling) or
GPLM (global product life cycle management) projects an initiative aimed at integrating different
competency frameworks to reach business needs has also started in Italy, as well as training andprofessional certifications for the Purchasing department.
Our E-Learning course catalogue, including contents related to digitalisation and innovation (Agile,
Big data) and project/risk management initiatives has also supported the business.
The ongoing Localisation of Key Competences (LKC) Programme was launched in July 2020
through a global internal job posting open to all employees. A structured selection process
was established and initial candidates identified. A contingency plan was developed due tothe pandemic, adopting a modular/flexible approach. LKC makes strategic, hard-to-find,competences available to business, thus increasing the global internal skills and effectivenessand expanding a knowledge sharing culture.
The Programme is based on structured competency mapping, cross-analysis and has a “On theJob” approach to learning which encompasses a combination of learning by doing, traditional
learning formats, direct observation, practical experience, as well as conducting testing andproviding active support to project teams.

TOTAL HOURS OF TRAINING BY GENDER AND REGION
31.03.2021
ITALY

JAPAN

EMEA

USA

APAC

TOTAL

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

TOTAL

31.03.2021

42,862

9,065

241,867

39,91237,044

5,566

14,665

4,523

9,987

1,296

346,426

60,362406,787

31.03.2020

54,7008,162

166,401

21,58950,138

7,319

10,258

3,225

6,505

1,980

288,00242,275330,277

AVERAGE HOURS OF TRAINING BY GENDER AND REGION
31.03.2021
ITALY

JAPAN

EMEA

USA

APAC

TOTAL

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

TOTAL

31.03.2021

10.7

12.9

73.4

129.2

12.8

9.9

19.5

18.9

13.3

7.4

29.6

30.4

29.8

31.03.2020

14.5

12.9

52.9

72.9

18.0

14.0

16.9

15.2

9.5

12.4

26.2

23.2

25.8

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HOURS OF TRAINING PER CONTENT

31.03.2021

Technical-specialist training

166,848

41.0%

Language training

85,351

21.0%

Managerial training

11,332

2.8%

EHS. Quality

12,903

3.2%

Mandatory/institutional training

27,307

6.7%

Refresher training

14,851

3.7%

Human Rights and Ethical Aspects

14,518

3.6%

Other ( induction paths….)

73,677

18.1%

TOTAL

406,787

100.0%The Performance Appraisal process is owned by each employee and line manager and facilitatedby the HR department.
The aim of the Performance Management process is to:
•
•
•
•
•

Give a clear vision of the Company strategy.
Empower people through simply defined goals, clear and shared performance
expectations, continuous feedback and coaching.
Assure performance planning and, at the same time, ensure a flexible approach to thechanging context.
Support a culture of continuous improvement, with regards to both results andproductivity, on the basis of current and future business needs.
Consistently support other areas including professional growth, career development,
succession planning and compensation.

The process consists of three phases: goal setting; mid-term review and final review that, in FY20
was managed in the same tool (HiNext) for the whole RSBU.
Furthermore, for FY20, the Final Review phase was globally calibrated to ensure alignment
amongst the evaluation process whilst taking observing cultural peculiarities. This new phasegave the opportunity to the next-level managers to review the performance ratings of their own
teams, supported by their regional HR referent.
The completion rate for the GPM Process is 95% of eligible employees.

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A common and integrated Hitachi Rail Performance Appraisal process represents one of the main
pillars of the new Talent Management Framework, as does the launch of the Group Talent Review
Process, both of which aim to align business’ goals with the characteristics, behaviours andaspirations of each individual with both current and future business challenges in mind.
The Talent Review process aims to:
•
•
•
•
•
•
•

•

Promote a performance and a development-oriented culture in the organisation.
Identify suitable actions to be implemented for the enhancement of people’s talents.
Identify talented people at all organisational levels.
Develop people by defining adequate Development Plans / Actions to support their
growth.
Retain talents, ensuring continuous improvement of skills and supporting motivations.
Evaluate: each eligible employee is evaluated on the basis of the overall performanceand their overall potential.
Calibrate: enables the distribution of ratings to be balanced at global level. This phasehas been managed simultaneously with the GPM one, in order to provide managers
with the opportunity to focus and discuss the accomplishments (GPM results) andstrengths and development needs of their collaborators and teams (Talent Review) at
the same time.
Create Development Plans: aimed at enhancing people’s growth.

The completion rate for the Talent Review Process was 92% of eligible employees.

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Employee Engagement
As a way of measuring levels of employee engagement, every year around September/October,
Hitachi conducts a Group Company Survey, which is called Global Hitachi Insights Employee
Survey.
The survey is administered online via an external vendor. It is available for all Hitachi employees
to take in 14 different languages and individual responses are anonymous. Some of the main
focus areas are:Clarity of Direction, Manager Effectiveness, Empowerment, Pride in Company, Continuous
Improvement, Teamwork, Recognition and Reward, Recourses and Support, Development
and Opportunities for Advancement, Leadership, Communication, Engagement, Mid-termManagement Plan, Culture.
The aim is to identify key strengths and opportunities, to improve productivity and help leaders
analyse and communicate the results, as well as working together with team members to develop
and implement plans that will lead to enhancing employee engagement and ultimately improveteam performance.
In 2020, Hitachi Rail launched the initiative as One Integrated Hitachi Rail Business Unit for the
first time. Approximately 12,700 Rail employees were invited to participate across all legal entities
with an average response rate of 86% achieved.
Some of the most favourable scores were “Covid-19 response measures”, “Pride in thecompany” and “Team work”. The Engagement Index also increased by 3.2% compared to theprevious year.
Based on the survey results, around 800 managers across the rail group have been working
on action plans with their teams. The senior leadership team has been working to implement
actions in response to feedback across the Rail group in order to address the identified areas of
improvement.

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CSR&S e-learning
Hitachi Rail believes that the impact on culture and training for the issues of sustainability andcorporate social responsibility must be continuously cultivated. Sensitivity, personal progression
on the issues of climate change, and the ways in which each of us can contribute directly, are a
precious value both for individuals and for the whole community and company. For this reason,with respect for cultural diversity and engagement, Hitachi Rail has also become a promoter andinnovator in internal training. After an internal communication process, the company presented
the first global new e-learning course on UN Sustainable Development Goals.

Amplify the internal Culture as Climate Change Innovator
4 Cartoons boards (presented on monthly basis with articles on intranet)
4 boards of about four strips each. The children continue their trip, and each of them becomes
attached and interested in a specific GOAL. They gain experience and then arrive at a generic
Hitachi Rail production site, where trains and signalling are made.

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1. The children head towards the Metro station, they notice:•traffic,•
smog (grey colors)and comment thinking about possible solutions and what it
would do to live better

2. They get on the train and notice:•••automatic ticketinga nice new train
ecological interior materials and comfortable spaces

3. Still on the train they notice the digital systems to control it.
They get off the train and see a way with less smog (morecolours). They notice bicycles and scooters, micro mobility, andin the background the entrance to the Hitachi factory

4. They finally enter Hitachi’s smart factory.
Cleaning, organization, diverse workforce, use of digitalsystems and robots, are all important details that children
experience, always commenting according to their personalsensitivity for the single UN goal

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Think responsibly, act sustainably
The aim of this call on our heritage, our spirit of collaboration and our technology to do better for
generations to come is for a new ‘human-centric’ society, which grows like a child, that discovers
a world in continuous evolution and also the world that previous generations have left.
For this reason, Hitachi Rail will continuously explain the meaning of fundamentals of
Sustainability, SDG and CSR.
The course is available in four languages, for all Hitachi Rail employees. It has an intriguing andengaging approach that leads to the deepening and discovery of the needs and commitments fora real change in the way of thinking and living.

Internal communication
Hitachi Rail’s internal communication strategy is linked directly to the Strategic Objectives of the
Global Rail Strategy. It is set up to connect employees with their shared direction and purpose andkeep them up to date with business achievements. It also recognises and celebrates the part that
employees play in business success.
Its role is to enable employee engagement by promoting health and wellbeing, recognition andreward, professional development and demonstrating that the business acts on employee feedback.
There are many activities supported by the internal communication team at group and regional level:
Ongoing HR engagement campaigns: such as Hitachi Insights Survey, Diversity and Inclusion,
Innovation, Learning and Development, Organisation Development, Hitachi Rail Values Awards andEmployee Wellbeing.
Senior leader announcements to all employees: maximum reach, leadership moments, reactive andplanned. Project updates: news about contract wins, project milestones and delivery to customers.

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Senior leader announcements to all employees: maximum reach, leadership moments, reactive andplanned. Project updates: news about contract wins, project milestones and delivery to customers.
Multiple channels are used, in up to five languages, recognising the diversity of Hitachi Rail‘speople. They are:
•
•
•
•
•
•

COSMO: A global intranet accessible to all Rail employees: updated regularly with one
site dedicated specifically to Sustainability and CSR topics.
This Week on COSMO: Weekly email to all employees with links to latest COSMO news.
Regular video announcements and written messages about Strategic and Engagement
themes.
Digital display screens at production sites for employees without regular access to PCs.
Large scale video conferences with senior leaders.
Employee App: two way communication with polling and real time alerts mechanism.

People Care
The “People Care” concept applies to employees’ wellbeing as both professionals andindividuals. Generally, People Care is linked to Hitachi Rail’s “Total Reward” strategy, basedon tangible and intangible measures to improve staff satisfaction and to create a working
environment where employees can continuously gain experience, develop skills, forge
relationships and find motivation.
The programme aims to guarantee a comfortable and motivational working environment byactively supporting relationships between managers and employees and relationships between
colleagues.

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Furthermore, there are various support services available in different countries for both parttime and full-time employees and, in some cases, their families as well. For example, flexible
schedules that allow work-life balance, special arrangements with local entertainment andsports centres, benefits such as health insurance, accident insurance, company car, employee
scholarships, corporate welfare, canteen and breakfast areas, and celebrations of successfulprojects are just some of the tools used and they vary across regions.
2020 was unique in that we were challenged with enhancing the “People Care” concept to agreater level to ensure our employees utmost wellbeing during the Covid-19 pandemic. This
touched everyone around the world to varying degrees at different points in time. As a global
company with presence in many countries, we needed an approach that would ensure measures
were robust and consistent in ensuring our employees wellbeing whilst also responding to eachcountry’s Covid challenge at the right time (and respecting government guidance/ Covid-19
laws).
A global taskforce was put in place consisting of senior representation from key functions - theaim was to achieve business continuity whilst ensuring not only significantly enhanced health andsafety, but also wellbeing measures that would protect our employees as much as practicably
possible. The most obvious measure was for employees to work from home, where possible.
However, this was not where it ended. Resources and guidance were established to support
employees/managers in making this transition with a focus on mental health and assuring morethan ever that sufficient rest/breaks were taken as a concerted effort to ensure that a distinction
between work and home was achieved.

Asia Pacific - Employee initiatives (Australia)
In Australia, the creation of the Health and Wellbeing Committee has led to significant
improvements in employees’ work-life balance. The Committee – a work group formed ofvolunteers from various departments and supervised by a local HSE manager and the local
HR Manager – meets once a month to discuss initiatives and measures to improve employees’
wellbeing and, with the support of the company (including the provision of a budget), promotes
events and initiatives on health issues in connection with local traditions.
Some of the initiatives are:•Hitachi Rail“R U OK?” Australian Day to raise awareness on the importance of mental health andto remind of the importance of caring for each other’s wellbeing. The event in particular
was designed to remind employees how dialogue with colleagues, friends and family
can help to overcome difficulties.
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•

•

•
•

•
•
•
•
•

National Harmony Day. Celebration of cultural diversity as a wealth of Australia.
Virtual and Covid-19 safe site activities where employees were encouraged to wear
their traditional dress and share fun facts about their cultural heritage. Posters werealso displayed in the office to encourage exchange and engagement.Work Life
Balance workshop organised by the Health and Wellbeing Committee in collaboration
with Learning and Development and the EAP provider on the reconciliation of life andwork balance initiatives.
The “MCG” Program (Mindfulness, Care and Gratitude) - A wellness initiative thatinvolves toolbox talks, whiteboards placed at office sites for staff to share their MCG
experiences/ideas, amongst other initiatives and competitions aimed at providing
staff with hands-on strategies to take personal action for improving wellbeing andhappiness, focusing on the pillars of Mindfulness, Care and Gratitude.
White Ribbon Day. Awareness and fund-raising initiative in aid of violence against
women.
Morning Connections. Meetings respecting Covid-19 safe regulations among staff
groups from different departments, enjoying a morning tea.Wear Red Day (Brisbane).
Fundraising day for heart disease research.
Cancer Skin Checks (Karratha project site). Australia has one of the highest rates ofskin cancer in the world. More than 50 employees underwent a medical check-up.
Bike to Work Day (Brisbane / Perth). Staff who were interested in fitness, health andwellbeing took part in Bike to Work Day.
Fitness Challenge. Staff were encouraged to walk, run, swim or cycle to reach the 1,000
km goal in 31 days.
Table Tennis Tournament (Brisbane / Perth).
In addition, the Australian Offices count with dedicated office space in their facilities
for people care. A room that serves as a mixed faith/silent space. Staff are welcome touse the space for silent prayer, meditation, yoga, to rest if feeling unwell and to perform
first aid if ever needed. These facilities are also used as the location for employees tohave their annual skin and health check.

Asia Pacific - Employee initiatives (India)
Hitachi Rail’s India Social Committee is an employee engagement initiative that aims to plan,
organise and implement social events for the company throughout the year.
Their mission was to bring more engagement and enthusiasm to the workplace, ensuring
entertainment and participation in staff events, enriching employee interactions, networking
between different office locations in India and much more.

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•
•
•
•
•
•

Weekly motivational /Inspirational email from Social committee to all employees.
Holi festival celebration: Festival of colours celebration.
Earth day poster competition.
World Environment Day celebration by carpooling to office.
Movie Time: watching movies with colleagues and increasing the understanding
between employees.
Diwali (Festival of Lights): Festival of Lights celebration by Rangoli computation.

In India, where Covid-19 pandemic effects were rather severe, additional efforts and attention
was given to improve the already existing Group Insurance coverage (which among others
provides employees access to company funded health and medical services), with the provisionof additional Covid-19 specific Corporate Insurance Plan, covering employees and family
members for a range of services including Covid-19 Inpatient Hospitalisation, Home Care
Treatment, Road Ambulance and others. In addition, Oxygen concentrators were purchased
and made available for staff use, when required by their Medical Practitioners and support wasoffered to staff members willing to join the Country Vaccination campaign, via the reimbursementof vaccination costs incurred by staff and family members.

Asia Pacific - Employee initiatives (Malaysia)
Just like in every other country of operation, in Malaysia, our employees’ health and safety isparamount. Hitachi Rail Malaysia employees are covered under a range of “top market” people
insurances. Corporate Plans which not only offer our employees and family members the chance
to enjoy high level medical & hospital care, but also covers staff members for more stringent
cases under our group Term Life Policy (including Total Permanent Disability & Partial Permanent
Disability), Accidental Death & Disablement Policy and Critical Illness Policy.
In addition, a number of staff engagement and people care initiatives are performed every year.
Among them in the past period, focus was given to the “In house screening program” which wasoffered to employees on a strictly voluntary basis. The screening included full blood / urine test,
ultrasound scan, body composition analysis and dietary briefing. The objective was to ensure
employees understand their personal health condition and how to eat properly.

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Asia Pacific - Employee initiatives(Greater China, Taiwan and S. Korea)
In Greater China, Taiwan and South Korea Hitachi Rail sponsored some initiatives in 2020/21
aimed at benefiting our employees, their family and society. Below are the main initiatives acrossthe region:
•

•

•
•

Employee Social Committee: where employees discuss initiatives/measures andperform monthly activities to improve employees’ wellbeing (book reading / chesscontext / etc.).
Annual all employees meetings: Functional Managers / Department Heads shareoverall status of the activities being performed in their department, their current
projects and future strategy. Employees are given the opportunity to ask questions
and engage with and participate in the business plan. Event was held physically undera Covid-19 safe plan and remotely with staff attending from various locations.
Christmas Lunch: Team-building event to celebrate team efforts and accomplishmentsin the year.

Europe & Middle East - Employee initiatives (UK)In the EMEA Region, Hitachi Rail sponsored many initiatives in 2020 to benefit employees, theirfamilies and their local communities, below are just some of the main actions in UK:
•
•
•
•
•

Hitachi Rail

Mental health awareness week – focused on a different area of wellbeing each daywith links to internal and external resources.
Male Health workshops – run on site and virtually, men-oriented workshops focusing
on the five biggest preventable killers of men.
Responder workshops – delivered both on site and virtually – manager mental healthtraining that also explores own stressors, triggers and coping strategies.
Thrive workshops – delivered on site and virtually – open to all. Help you to thrive
inside and outside of work. Explores stress and resilience, triggers and strategies.
World Mental Health Day – encouraged teams to start the conversation with ‘thisweek I have felt….’cards. Sign posted to support services available. Also delivered aworkshop where two senior leaders talked about their own mental health battles.

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•

•
•
•
•
•
•
•
•

Suicide Prevention Day – wallet cards handed out with the EAP (Employee Assistance
Programme) and Samaritans number on. Promoted Samaritans well-being toolkit andself-help app.
Partnered with Samaritans to raise awareness and funds. Employees took part in the
Samarathon campaign to walk a marathon in the month of July.
Trained new Mental Health First Aiders – now approx. 65 across all sites
Take a Breather – helping leaders to support their teams in these changing andchallenging times.
Monthly wellbeing bulletin – distributed site wide with monthly wellbeing topics andlinks to internal and external support services.
Health check days – BMI, blood pressure, cholesterol level with onward referral to GP
where needed across all sites.
Flu Vaccinations vouchers offered to all employees in October 2020
Wellbeing area – launch of the wellbeing area on The Source giving everyone accessto support at work or at home.
Newton Aycliffe’ facility achieved Continuing Excellence for the Better Health at WorkAward

Europe & Middle East - Employee initiatives (France)
•

•

•
•

Hitachi Rail“Happy Trainees” label was awarded for the seventh time – rewarding excellencein the welcome and support of students in businesses. 93% of Hitachi Rail trainees
and apprentices recommend the company to their network appreciating diversity of
projects, quality of missions, the start-up spirit and evolving possibilities.
Active partnerships are established focused on diversity to increase women’sawareness of technical jobs, to support underprivileged communities in terms ofaccess to higher education and job opportunities as well as those with disabilities.
Mobility Challenge at the Riom plant to promote and raise awareness of alternativemodes of transportation to cars.
Active partnerships with “Elles Bourgent” Women’s campaign to increase awarenessof jobs that have a low proportion of women.

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Europe & Middle East - Employee initiatives (Saudi Arabia)•

Saudi national day - Saudi Arabian National day is always celebrated on September 23rd;
giveaways are distributed to the employees, which contained the Saudi flag and broochwith the Hitachi logo next to the Saudi flag.

Europe & Middle East - Employee initiatives (Abu Dhabi)•••

Pink Day: Everyone wears one pink item for a day in solidarity for the women sufferingfrom Breast Cancer.
Board Game Meetings. Team gathers in the meeting room to have a fun quick gameto lessen tensions and stress at the workplace and build stronger connections throughcommunication and engagement between all the various units.
Question day. Employees are encouraged to ask one question about Hitachi, to promotelearning in the workplace.

Italy - Employee initiatives
In 2020/21 Pandemic restrictions as well as the integration process between the two Italian legal
entities (Hitachi Rail STS and Hitachi Rail Italy SpA) offered an opportunity to further focus on caring
for our employees.
We have continued many initiatives to benefit employees, their family and the society, below are themain examples:
•

•

•
•

Hitachi Rail

Corporate Wellbeing - a wellbeing plan is provided to all employees through a dedicatedportal, called “Easy Welfare”. In line with the provisions of the national labour agreement
for the industry, it offers numerous services and possibilities to choose from including
some tax advantages and social security benefits.
Recreation Centres - employees have recreation centres, referred to as “CRAL”. These
are a form of free association for workers and are separate to the Company. Employees
who join as members may participate in a number of activities and take advantage of
discounts at partnering companies (e.g. bookshops, opticians, theatres etc.)
Women’s day: March 8th is Women’s day and to observe this the company donated to“Associazione Onlus”, a non-profit association that takes care of women in need.
KIVA Donation: Before the Christmas holiday the company usually organises a Christmas
party across all sites for employees to celebrate the company’s achievements and receive
some gifts. 2020 was different due to Covid-19 in that employees could not cometogether in the same way and as such, the budget for this celebration was donated to the
KIVA foundation, an organisation that provides loan funds to under-served communities

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•

•

•
•
•

•

Hitachi Railaround the world, helping small businesses strengthen their communities, create jobs,
scale innovative social solutions and drive sustainable economic growth.
Work-life balance: The concept of “smart working” continues to be successful in Italy
with all sites participating. During the fiscal year, a new way of working was set up toleverage cultural development and maximise flexibility according to both people andbusiness needs. Smart working took on a completely new meaning during 2020 due
to Covid-19 with more employees working remotely and of those that could workfrom home, adjusting to doing so full-time with the support of the company and their
managers.
Covid-19: As Italy was one of the first regions to be hit by the pandemic, earlymeasures were put in place as well as continuous support to take care of all
employees and managers with limited business interruptions. The company has also
provided health insurance to cover Covid-19 expenses for all employees.
Service awards given to senior employees with over 25 years.
Every year the company participates in the “Stelle a merito” award programme inrecognition of employees with long service and great achievements.
Project “Va.Bene.” – designed during the fiscal year, aims to give 360 degree support
to employees and their families, offering a wide range of services from counselling totax and legal advice.
Covid-19: during 2020 HR worked in close conjunction with SHEQ to prepare for a
vaccination programme that would rollout in 2021 to accelerate the process so that
employees did not have to wait too long to be contacted via the national medicalroute.

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USA - Employee initiatives
Both Hitachi Rails STS USA and Hitachi Rail USA Inc typically sponsor many initiatives to benefit
employees, their families and society. 2020 has been more limited due to Covid-19. The below
reflects initiatives for 2020:•••

Treasures for Children Programme: In previous years, Angel Tree Employees provided
gifts of toys for the Holiday season to individuals and families in need via the Salvation
Army. Due to Covid-19 they were unable to do this in the usual way and as such for2020 the company donated to the Salvation Army.
Veterans’ Day: Day to honor those who are serving and, have served the country in thearmed forces.
Wellness Series: Wellness facilitator introduces ways to live a healthier life.

JAPAN - Employee initiatives
In Japan the initiatives for 2020 to benefit employees, their family and the society were as follows:
•

•
•

•

Hitachi RailFor the 100th anniversary of Kasado works, a Kasado history museum was opened
bringing together the 100-year history of manufacturing power in Kasado. Shinkansen
vehicles are displayed at a memorial hall for employees and their families to see andfeel the history and Kasado pride. The company may consider opening it to the public
post pandemic.
Work-Life balance: The company has implemented flexible working, accelerated
through the new work style reform committee on each site in Japan.
Covid-19: The company continues to support employees in preventing the spread of
Covid-19 in both personal and work life, and recommends work from home, where
possible.
Awards: The company has year-end awards and monthly Most Valuable Player (MVP)awards to continuously recognise employees who have contributed to projects andthe business every year.

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Mobility
Covid-19 has had a devastating impact on travel. 2020 saw a dramatic reduction in businesstravel thus decreasing volumes and transactions.
Despite the reduction in travel, progress was still made in terms of digitalisation during 2020.
Hitachi Rail has finalised the implementation of self-booking tools in France and the UnitedStates. Furthermore, it has been preparing to implement these tools in Australia for the next fiscal
year. When travel increases this will make our process more efficient and sustainable.

MOBILITY OF
PEOPLEUnit

FY2018FY2019FY2020Var %FY19-20

TOTAL shorthaul flights

Km29,392,124

26,149,323

5,079,878-81%

TOTAL long
haul flights

Km62,216,059

61,043,029

6,934,071

-89%

TOTAL

km

91,608,183

87,192,352

12,013,949-86%

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Hitachi places high importance on Sustainability. Priority is given to green hotels in the hotel
directory and to environmentally conscious airlines.
Even in fleet management, the Company gives priority to sustainability: this year it has started apilot project in Italy with the new car policy focusing on green cars (hybrid and electric), green
benefits, incentives for those who choose green cars and next year each Hitachi Rail site will be
provided with electric charging points.
Travellers’ safety and security is a fundamental theme heightened more so by the pandemic.
All travellers are covered by health insurance and provided with necessary assistance for theunderstanding and assessment of risk related to the social, political and health situations in all
countries. This ensures the immediate protection and safety of employees.

Parental leave
Hitachi Rail grants parental leave in accordance with legislation, collective agreements andcompany policy.

31.03.19

31.03.20

31.03.21

PARENT LEAVE
MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

Total number of employees that were entitledto parental leave

9,944

1,685

9,976

1,675

9,157

1,397

Total number of employees that took parental leave

77

117

87

105

141

63

Total number of employees that returned towork in the reporting period after parental
leave ended

77

95

84

92

138

60

Total number of employees that returned towork after parental leave ended that werestill employed 12 months after their return to
work

69

84

68

87

134

64

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The return to work rates are shown in the following table:
RATES OF PEOPLE RETURNING AT WORK*

100%

81%

M

W

31.03.2019

RATES OF PEOPLE RETURNING AT WORK*

97%

88%

M

W

31.03.2020

RATES OF PEOPLE RETURNING AT WORK*

98%

95%

M

W

31.03.2021*The rate is calculated as the number of people returning to work in the year compared to the number of periods of leave granted in the same
year. It was not possible, in the calculation, take into consideration the leave granted in a year whose re-entries took place the following year.
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Protected categories
The policies for the inclusion of people with disabilities are defined by relevant country laws.
In Italy, Law no. 68/99 introduced the key concept of “targeted” employment, defined as “a set oftechnical and support tools which make it possible to adequately assess the working capabilitiesof people with disabilities. Successful appointments are made by analysing positions, formsof support, positive actions and solutions to issues related to the work environment, tools andinterpersonal relations that a person would experience in the role.
In Japan, the law mandates that a certain percentage of the workforce must constitute people
with disabilities. Hitachi Rail provides opportunities and positions both in office-based and in
Production.
The table below shows the total number and percentage of the workforce represented by people
with disabilities in Central and Eastern Europe, the Middle East and Western Europe.
31.03.2021
PEOPLE WITH DISABILITIES BYREGION

ITALY

JAPAN

EMEA

USA

APAC

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

People with disabilities

66

24

NA

NA

9

11

NA

NA

NA

NA

% of total workforce

1.6

3.4

NA

NA

0.2

3.7

NA

NA

NA

NA

In the United States, it is common practice for customers to require the mandatory allocation ofa percentage of the contract to DBEs (Disadvantaged Business Enterprises), which are regulated
by federal and state departments. Each DBE must be certified by the relevant Transit Authority.
To meet its contractual obligations in the US, Hitachi Rail has identified and vetted various DBEs
with which it may now operate in order to meet the quota required by the contractual targets.
In general, this includes training employees of DBEs to carry out the work usually performed by
Hitachi Rail employees in line with labour standards.

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Remuneration systems
Hitachi Rail manages employment relationships with its employees in accordance with the laws
in place in the various countries in which it operates. The employment terms set forth in individual
contracts are usually more rather than less favourable to employees than those defined undergeneral labour legislation or collective agreements.
Furthermore, Hitachi Rail periodically evaluates organisational positions through the contributionof specialist companies in the field, and compares its own remuneration policies with those of thereference market, considering the weighting of the position.
Hitachi Rail has defined a total reward framework strategy to include the design, standardisation,
implementation and communication of pay and benefits to ensure it is embedded in the RSBU’s
ways of working and organisational culture, to include market analysis and best practices.
Hitachi Rail can establish higher levels of remuneration compared to the general market for
positions that are particularly critical and important to the business to avoid the loss of expertise.
In the United States, it is common practice for customers to require the mandatory allocation ofa percentage of the contract to DBEs (Disadvantaged Business Enterprises), which are regulated
by federal and state departments. Each DBE must be certified by the relevant Transit Authority.
To meet its contractual obligations in the US, Hitachi Rail has identified and vetted various DBEs
with which it may now operate in order to meet the quota required by the contractual targets.
In general, this includes training employees of DBEs to carry out the work usually performed by
Hitachi Rail employees in line with labour standards.

RATIO OF BASIC SALARY OF
WOMEN TO MEN

31.03.2021
ITALY

JAPAN

EMEA

USA

APAC

WOMEN /MENWOMEN /MENWOMEN /MENWOMEN /MENWOMEN /MEN

Executives

0.94

-

-

-

1.06

Middle management

0.97

0.93

0.89

0.81

0.80

White collar

0.88

1.00

0.96

0.83

0.92

Blue collar

1.00

0.88

0.96

0.84

-

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Performance-based incentive systems
Hitachi Rail is committed to providing a reward system that recognises employees’ performanceagainst both individual and global objectives and encourages participation in the wider successof global business objectives and financial results.

Employee relations management
At Group level, as of 2020, Hitachi Rail has various existing formal agreements with the tradeunions in the countries concerned and the relationship is generally positive in every site.
Furthermore, in February 2021 the procedure for merging the two Italian entities completed andboth relationships and negotiations with trade unions to this effect is ongoing with initial focus on
smart working given the pandemic.
The positive relationship that Hitachi Rail maintains with its employees and unions is reflectedalso by an extremely low rate of trade union disputes. Generally speaking, this context often
leads to the resolution of any issues with employees internally, in a cohesive cooperation withtrade unions, maintaining a context of general cooperation.
The total number of employees covered by national labour agreements, where different types oftrade union negotiation is applicable, is shown below:

EMPLOYEES COVERED BY COLLECTIVE LABOUR AGREEMENTS
as at 31.03.2021

31.03.2021
ITALY

JAPAN

EMEA

USA

APAC

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

Executives

92

9

29

0

24

0

0

0

0

0

Middle management

449

81

746

20

41

5

0

0

0

0

White collar

2,052

546

1,656

252

1,203

396

0

0

42

1

Blue collar

1,351

60

863

37

1,603

158

14

1

42

1

TOTAL

3,944

696

3,294

309

2,871

559

14

1

0

0

The percentage of employees covered by national labour agreements in Italy is 100%, while in
the Europe, Middle East and Africa region the number is 25%. The percentage is minimal in Asia
Pacific due to Hitachi Rail’s ongoing efforts to invest in a fair work environment.

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Occupational Health and Safety
Hitachi Rail is committed to providing a reward system that recognises employees’ performanceagainst both individual and global objectives and encourages participation in the wider successof global business objectives and financial results.
Hitachi Rail’s Health and Safety policy is based on the application of the requirements of relevant
standards, namely UNI ISO 45001, and other international standards, in compliance with national
and international regulations. Hitachi Rail’s plan is focused on continuously improving health andsafety standards.
For Health and Safety, Hitachi Rail undertakes to:
•
•
•

•
•
•

ensure and maintain a safe and healthy workplace environment and prevent injuries,
illnesses or damage to the health of employees, suppliers, customers and visitors.
Extend UNI ISO 45001 certification to all Hitachi Rail sites, continuously improving theeffectiveness of the Health and Safety in the workplace Management System;
Continuously improve the aforementioned management systems’ performance, notonly with respect to the prevention of injuries and work-related illnesses, but also interms of more general employee wellbeing.
Adopt risk assessment criteria for all hazards relating to work activities which, incompliance with national and international legislation, also consider best practices;increase the training and information activities for all employees in order to make themmore aware of the risks related to their activities.
Continue developing activities to spread a culture of safety with all suppliers andconcerned parties.

This policy is shared with all Hitachi Rail personnel and all Stakeholders online and via thecompany intranet. The initiatives adopted by Hitachi Rail to promote employee welfare in theworkplace are adequate to risk assessment (e.g. analysis and monitoring of working activities,
including the nature of the work, equipment, workspaces, personal and collective protective
measures, technical infrastructure and contractual issues, both for internal and contracted tas.

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Activities and results
Health and safety performance indicators are monitored and analysed over time, and used to set
objectives by breaking them down by risk factor and location.
Safety is therefore a vital element for Hitachi Rail and a value for all workers, as they contribute
every day to the safety for end users as concerns products and services.
In order to acquire the information needed to continuously improve injury frequency and severity
rates, in accordance with the Health and Safety Policy, Hitachi Rail also tracks the so-called nearmisses (accidents without consequences that arise out of undesired or unforeseen situations that
could have put people at risk), in order to gather and analyse data and information and identify
potential solutions in advance.
The main initiatives that have been carried out in this respect include:•

implementation of the procedure to manage accidents and near misses at the global
level: Hitachi Rail has created a procedure to provide information on how to correctly
manage events entailing injuries, accidents and near misses. This procedure is a valid
prevention and information management tool for statistical purposes, to identify thecauses of an accident and to meet legal requirements relating to Health, Safety andHygiene in the workplace. Central to this is learning from incidents.

INJURY INDEXES

31.03.20

31.03.21

No. injuries sustained(with days of absence, excluding commuting injuries)

72

56

Injury frequency index(no. injuries/h. worked x 200,000)

0.56

0.46

Injury severity index(no. days lost/h. worked x 200,000)

0.28

0.51

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HSE reporting to monitor and gather information on the performance of activities
carried out in relation to the application of SGS/SGA. These reports are prepared by all
HSE officers at work sites.
Safety meetings for all main work sites. ks).

Social Innovation
Social Innovation starts with an idea – one simple thought that has the power to change theworld. Hitachi Rail’s Social Innovation, through a unique co-creation business paradigm, has
always set itself the goal of creating technological innovation to improve people’s quality of life
and achieve a sustainable society, helping to solve global social and environmental issues andachieving the Sustainable Development Goals (SDGs) set by the UN for 2030.
Hitachi Rail devotes constant attention to innovation, in order to identify and create advanced
technical solutions and develop products of the very highest quality, safety and environmental
standards.

Innovation management
Innovation begins with a problem that needs to be solved. Hitachi meets these needs with newtechnologies for designing solutions that can create a tangible and positive social impact, and avisible and persistent change.
Hitachi Rail manages its innovation projects by regarding them as plans or proposals aimed atproviding solutions that can work. It creates a prototype with the project, and demonstrates how
to implement the idea and achieve the expected results. This “scientific” approach allows it toassess the feasibility, costs, market and value of the solutions.
Therefore, social innovation for Hitachi is the way to:
•

•
•

•

Hitachi Railreflect on the impact that the technological innovations are making on society, bydeveloping new solutions in the world of transport, industry, infrastructure, health andenergy.
Understand how advanced technologies can affect the development of smart
communities by creating new and dynamic business models.
Evaluate how the new technological solutions improve company managementby adopting integrated processes thanks to the availability of additional data andinformation together with the customer and the Stakeholders.
Discover how Hitachi Rail is taking part in virtuous systems to guide businesses,
institutions and towns by adopting a collaborative approach and by integrating IT andOperational Technologies.
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A team dedicated to innovation
In January 2019, Hitachi Rail created a team explicitly and exclusively dedicated to the theme ofinnovation, with a development plan covering the next few years, aimed at building a group ofpeople working on innovation projects with dedicated budget and resources.
The team and its activities are built around a clear definition of the concept of innovation, given in
The Little Black Book of Innovation by Scott D. Anthony:“Blueprinting is an idea to seize that opportunity, and implementing that idea to achieve results:
no impact, no innovation.”
This definition highlights how, in Hitachi Rail, innovation is based on a structured processthat requires a rigorous approach, relevant needs and requirements, clear objectives and awell-defined set of activities to achieve them. Starting from the customer need, Hitachi Railidentifies a business opportunity that can be fulfilled. The best solutions (ideas) are identified,and alongside with them new technologies and competences required for their development
are acquired, according to the logic of ‘open innovation,’ finally, the prototypes of these new
solutions are developed to demonstrate their effectiveness in fulfilling the need. This creates a
positive impact on the business and the community.
The following figure summarises the domain of the innovation team and where it is located –away from current solutions and business. As a result, it becomes a collector of opportunities,
ideas and skills, delving into new technologies. The final objective is to create prototypes of
new products and solutions that, transferred to the engineering and development departments
together with the related new skills, can enrich the company’s product portfolio of tomorrow.
The Innovation team gives priority to those projects that best meet the sustainability requirements
and the most innovative needs of Hitachi Rail’s customers and their own customers.
From this process, two important framework projects were created: “Zero Infrastructure” and“Services for Mobility (S4M).”
The “Zero Infrastructure” framework encompasses projects aimed at eliminating parts of thephysical infrastructure such as servers and power and telecommunications cables alongsiderailway lines. This will allow Hitachi Rail to provide solutions with less equipment andconsequently that consume less. In the case of physical equipment still needs to be powered,green alternative sources of energy are used together with batteries and capacitors. In addition to
being greener, this solution also reduces the cost of operating and maintaining the railway.
The projects within the “Zero Infrastructure” framework are:Hitachi Rail136

Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021•••

study and design of alternative green power sources to power the signalling systems
along the line.
Study and design on the use of cloud computing in signalling and automation
systems, including the implementation of Verification and Validation laboratories on the
Cloud.
Use of wireless communications to connect the signalling systems installed along theline with the central station.

The S4M (Services for Mobility) framework consists of projects with the objective to develop
services aimed at improving the management of the public transport traffic, consequently
increasing its attractiveness towards the passengers. S4M will enable the migration from private
to public transport and so reduce the environmental contamination.

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The projects inside S4M framework are:••Study and design of a multimodal traffic management system in order to improvethe management of the public transport traffic analyzing in real time the information
coming from technologies that monitor the passenger flow.
Design of door-to-door, multimodal services for passengers, which providerealtime information about the position and occupancy of the public transport vehicles,
including the occupancy of the stations. With this information, passengers will beable to plan the trip in a more flexible way, which is a necessary condition of safe
travel during the Covid-19 pandemic. These services will be provided via a mobile
application, which will also integrate other services such as seamless ticket payment
methods for public transport and parking.

Hitachi Rail is now collecting and analysing data regarding people flow on AMT buses in Genoa(Italy). This information will be used to support a flexible and seamless use of public means oftransportation, increasing their attractiveness. During FY 2021 this pilot project will be completed,delivering a relevant application in the field of S4M, and will be extended to other means oftransportation and further clients, to actively promote a sustainable mobility.
The Zero Infrastructure program can be regarded as addressing some of the most relevant SDG
such as Goal 9, building resilient and sustainable infrastructures reducing waste, use of raw
materials, energy consumption and, indirectly, use of land by reducing the need at our clients’sites for dedicated space for our equipment. The S4M program on the other hand mainly focuseson Goal 11, by making transport systems more attractive, reliable, convenient and safe forpassengers.
A partnership established with HTT (Hyperloop Transportation Technologies) will allow Hitachi
Rail to test the applicability of high speed railway signaling systems in an innovative context,
contributing to the implementation of the “fifth mode of transportation”. Hyperloop systems arelargely powered by alternative sources of energy, and this cooperation will foster the adoptionof the Zero Infrastructure paradigm by providing a real use case for an innovative signaling andcommunication architecture for ERTMS.

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In FY20 the Innovation Team also launched a pilot crowdsourcing initiative (HInnova Pilot) asking
our colleagues from the UK and Italy to propose innovative ideas; in FY21 Proof Of Concept of
the winning ideas, selected by a panel of senior experts in the RSBU, will be implemented by the
Innovation Team. This initiative encourages the active participation of our colleagues, fostering a
corporate culture of innovation, exploiting our company’s intellectual potential and encouraging
the sharing of ideas. In FY21 the initiative will go Global, including colleagues from all geographic
areas, and focusing explicitly on the RSBU’s strategic innovation pillars, built around the conceptsof safety, availability, accessibility, convenience and sustainability.

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Value Chain Management
Management of customer satisfaction
Customer Satisfaction (“CS”) activities are handled by a team made of the managers of thevarious departments: Safety, Health Environment, Quality, EMEA Business Unit, Americas &APAC Business Unit, Operation & Maintenance Business Unit and Operations Units.
Customer Satisfaction activities take place at various stages and are carried out using different
tools to accurately monitor the level of customer satisfaction and project status until thecompletion of the project.
These stages include the following main activities:•••

Hitachi Rail

Customer Satisfaction Survey: a series of one-on-one interviews with top
representatives of the selected customers. The survey can be carried out either byexternal agencies, or by internal resources, using a specific questionnaire.
Complaints Management: the Project Managers are responsible for recording
customers’ complaints, which are sent to the Project Quality Engineer assigned toevery Project in order to properly manage th complaints and the needed action plansto resolve them. The Customer Satisfaction Team checks and records all information
and, on a yearly basis, prepares a global summary to be shared with the top
management. This analysis is used as the basis to calculate the “customer complaint”
KPI.
Project Customer Satisfaction self evaluation: for specific projects, the Project
Quality Engineer is responsible to coordinate the collection of the project team’s self
evaluation of the Customer’s perception, covering areas such as project schedule,
costs, quality of Products/Services (including also Non Conformities, Product failures,etc). Results of these internal evaluations will be an input for the yearly summary CS
report.
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Customer communications
Alongside project management customer communication, Hitachi Rail actively engages withcustomers proactively to ensure they are aware of business news, updates and developments to
support the wider brand.
This is achieved through virtual and face-to-face conferences, trade shows, press releases, editorial
content and through the group website – www.hitachirail.com. Advertising publications and online
advertising support these efforts, specially through the use of social media channels, to reachdecision makers, media and industry associations.
Customer surveys are also undertaken as part of a 360-degree feedback loop to fully understandcustomer needs and requirements. These surveys are actively undertaken with new and existingcustomers – allowing communication plans and tactics to be adjusted as appropriate based on
qualitative feedback.
Industry awards further support these initiatives and the Hitachi Rail team submit projects forconsideration to a wide range of industry bodies and awards covering mobility and sustainability
excellence.
Awards won between April 2019 and March 2020 include:
•
•
•
•
•
•
•
•
•

Hitachi Rail

National Invention Award – Imperial Award: Design of high-speed train (Class 800) for the
UK.
Good Design Gold Award: Limited Express – SEIBU RAILWAY Co., Ltd – Laview.
Japan Industrial Technology Award - Judging Committee Special Award: Development ofhigh-speed train (Class 800 series) for British Intercity routes.
Okochi Memorial Production Prize: Development of high-speed railway vehicles that canrun on both electrified and non-electrified section.
Hitachi Inspiration of the Year Global Award South America: Hitachi Rail’s Lima Line 2
Project.
Hitachi President’s Technology Award: New High Capacity Double Deck train platform –Hitachi Rail Rolling Stock.
Golden Spanner - Gold, Silver and Bronze Awards: North Pole and Stoke Gifford Train
Maintenance Centres, UK.
Freight Rail Excellence Award: Hitachi Rail STS for AutoHaul.
Rail Business Awards: Hitachi Rail & London North Eastern Railway (LNER) – Azuma
Trains Introduction.

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These combined communication tactics are essential to how Hitachi Rail develops existingcustomer relationships and supports bidding activity to ensure new customers have a deep
understanding of Hitachi as a business, as well as the solutions it can provide.

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Supply Chain
Hitachi Rail is currently undergoing a transformation of its Supplier Management capabilities aspart of a broader Procurement improvement agenda.
During this reporting period, Hitachi Rail initiated a multi-year transformation programme of its
Supplier Management capability with a specific focus on improving visibility, monitoring anddefining improvement actions on risks in our Supply Chain.
As part of this, Hitachi Rail has introduced a new coordinated, global approach to SupplierManagement across Hitachi Rail with close collaboration between Procurement, SQA and otherfunctions.
Supplier Management defines the key interfaces between Hitachi Rail and our suppliers which
require an integrated approach and defined governance. Supplier Management’s role andmandate to drive additional value and functional excellence is to:
•

•
•
•

Implement and operate a global supplier qualification process for Rail to qualify our
supply base against a defined set of criteria, improve visibility of key risks (including
Sustainability) and enable the on-going tracking and management of suppliers against
these criteria and risks.
Support the improvement of quality and risk management of the supply base.
Drive more effective performance management with our suppliers with a particularfocus on tracking performance against key sustainability metrics.
Working collaboratively with suppliers to define and implement innovative solutions
that support sustainability.
SUPPLIER DISTRIBUTIONS

Hitachi Rail31.03.21n.

% on total

Europe

4,062

52.7%

Asia Pacific

1,632

21.2%

Americas

1,450

18.8%

Africa34

0.4%

Middle East

187

2.4%

Other

342

4.4%

TOTAL

7,707

100%

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Hitachi considers the supply chain management processes a critical factor for the success of its
business. Strategic procurement management requires a broad vision of the process along theentire value chain, from the definition of product specifications and service to the delivery anduse.
Hitachi Rail has adopted an interdepartmental management approach which provides for the
involvement and approval of all bodies concerned by the overall logistics. Given that it designs,
builds and operates transportation and signalling systems for railways and urban rail transport,
Hitachi Rail supplies include:
•

•
•
•

Hitachi RailMaterials – purchase of circuit boards, mechanical and plastic parts, waysideequipment, cables, racks, cabins, industrial PCs, on-board equipment andelectromechanical components.
Services – facility management and HSE, payroll services, professional and ICT
services, logistics services and travel.
Business services – engineering and development services and RAMS activities(reliability, maintenance, availability and security).
Turnkey projects and subcontracts – the award of a turnkey contact relates tosystems that interact with the rest of the technologies for the specific contract, suchas installation systems, telecommunications systems, auxiliary braking systems,
power supply and systems, supervision and control systems, depots for equipment,
signalling systems, rails and civil works.

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In view of the increasing importance of the supply chain’s environmental, social and governanceaspects, Hitachi Rail is working cross-functionally to define common criteria across all lines ofbusiness within Hitachi Rail to assess and monitor its suppliers. This will generate a new action
plan to assist suppliers in partnership in improving their sustainability performance.
In order to strengthen integration and improve the management of suppliers along the Supply
Chain, a new function called Supplier Quality Assurance was elevated to cover all three lines ofbusiness (Signalling and Turnkey, Rolling stock, Operation Service and Maintenance). The group
SQA1 team, in partnership with Procurement, are defining and deploying a harmonized process
for supplier qualification and monitoring across all lines of business and geographies.
Hitachi Rail selects suppliers based on its Procurement Strategy and in line with its Supplier
Quality Manual and various procedures.
Supplier qualification and sourcing is transparent and executed in accordance with the principlesof the Code of Ethics and The Supplier Code of Conduct. Hitachi Rail requires its employees to
conduct themselves in accordance with the principles of loyalty, fairness, transparency, efficiency
and legal compliance.

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Digital Supply Chain Management
To support the digitisation strategy, a group-wide platform will be implemented to standardiseand centralise the supplier qualification process. The digitisation of this process will lead togreater control in improving our data management.
Hitachi Rail has defined that the qualification process is inter-functional and based oncollaboration of several departments, this includes Engineering, Procurement, and Quality and
HSE departments. Their requirements are captured within specific supplier questionnaires.
As part of the cross-functional working, these questionnaire are being reviewed to ensure theyassess:
•
•
•
•
•
•

Introduction of safety management system compliance with the BS OHSAS 18001
standard.
introduction of environmental management system compliance with the UNI EN ISO
14001:2007 standard.
introduction of ISO 45001 for those companies that have already transitioned from theabove mentioned standards to this new one.
introduction of sustainability procedures/programmes e.g. Sustainable Procurement
Guidelines and Green Procurement.
application of the legislative requirements to comply with the REACH/ROHS/RAEE
regulations.
collection of data about accidents, non-compliance, training and emergencies.

The supplier questionnaires are issued to all new suppliers during the initial qualification phaseand monitored periodically as part with the monitoring of our incumbent supply base.

Supplier mapping
Hitachi Rail has initiated the mapping of its supply chain concerning compliance withEnvironmental, Social and Governance (ESG) criteria. The standard purchase order model
includes general supply conditions and compliance with the Code of Ethics; furthermore, when
vetting new suppliers, Hitachi Rail gathers information on their compliance with quality, hygiene,
health and safety in the workplace standards and their environmental policies and requires
certification according to standards ISO 9001, ISO 14001, OHSAS 18001 and ISO45001. These
characteristics are considered preferential requisites and contribute to assigning the supplier’s
eligibility for qualification.
The ongoing mapping of the supplier base, facilitated by centralising the global process
management and its digitalisation, is one more step towards ensuring responsible sourcing and asustainable supply chain.
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Monitoring Activities
Hitachi Rail uses various due diligence and supplier management tools.
This can range from contractual provisions, levels of due diligence or the type of agreement
adopted. In all instances, the overall aim is to ensure that the action adopted by Hitachi Railis proportionate to the level of risk and this is applied consistently throughout the business
relationship.
As an example of this, suppliers are monitored through meetings or communications between
them and the Hitachi Rail departments with which they operate (i.e. Procurement, PM,
Engineering, Quality and Supply Chain Management, Logistics and Construction).
Furthermore, periodic audits, both remote and on-site, are performed on suppliers throughout
contract execution to enforce continued compliance with Hitachi’s requirements and standards.
Within the new organisation, the extension of a risk-based supplier rating process that takes
into account the suppliers’ conduct and performance is being developed to further monitor andcontrol risk and supplier performance.

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Glossary and Main Acronyms contained in the
documents
This glossary aims to facilitate understanding of the terminology used both for sustainability
issues and for those more specific to the business sector.

ANIE (Associazione Nazionale Industrie Elettrotecniche ed Elettriche)
It is one of the largest trade organizations in the Confindustria system in terms of weight, size and representativeness. ANIE isjoined by 1,500 companies in the electrotechnical and electronic sector. The ANIE Regulatory Technical Environment Area follows
both transversally and vertically the environmental and energy issues of interest to the Italian electrotechnical and electronic
sector, from national and EU product or process legislation, to product technical regulations.

AICQ (Italian Association for a Quality Culture)
AICQ is a non-profit association, which aims to spread the Culture of Quality in Italy and the methods for planning,building, controlling and certifying the quality of products, services, organizations and related disciplines. Aicq aims
to achieve its goal through training (national and local courses) and information (the Quality magazines, the Quality
On Line web magazine, periodical publications), seminars, round tables and conferences in the main Italian cities.

Accountability 1000 (AA 1000)
AccountAbility’s AA1000 Series of Standards are principles-based frameworks used by global businesses, private
enterprises, governments, and other public and private organizations to demonstrate leadership and performancein accountability, responsibility, and sustainability. For over two decades, organizations large and small, private
and public, have come to rely on AccountAbility’s standards to guide their approach to sustainability strategy,
governance, and operations.

BAT (Best Available Technique)Best available techniques’ (BAT) means the available techniques which are the best for preventing or minimisingemissions and impacts on the environment. You need to use BAT if your operation is an installation (eg a facility
that carries out an industrial process like a refinery, food factory or intensive farm). ‘Techniques’ include both thetechnology used and the way your installation is designed, built, maintained, operated and decommissioned. The
European Commission produces best available technique reference documents or BREF notes. They contain ‘best
available techniques’ (BAT) for installations. For example, there’s a BREF for intensive agriculture which contains BAT
for housing for pig rearing units and a BREF for the textiles industry which contains BAT for selecting materials for
textile manufacture.

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Cosila (Consortium for safety in the workplace)
The Cosila, Consortium for the safety and health of workers in the workplace, established in 1995 under the aegis
and sponsorship of the Union of Industrialists of the Province of Naples, is a consortium of companies whose
purpose is to provide, non-profit, consultancy services, assistance and training on safety and health in the workplace,as designed by current legislation.

CMS (Carbon Management System)
The system comprises 10 essential elements from four broad perspectives: carbon governance, carbon operation,
emission tracking and reporting, and engagement and disclosure. The proposed new approach focuses on cross‐functional integration, enforcement of proactive strategies and group rather than individual accountability. Manyorganizations are taking actions to reduce their carbon footprints. Carbon-reducing initiatives in organizations arevaried: they range from green product innovations to encouraging behavioral changes by customers and employees.
Carbon management systems (CMS), can be designed and used in order to persuade employees to perform
ecologically responsible behaviours.

CSR (Corporate Social Responsibility)
CSR, acronym for Corporate Social Responsibility, is a term to which different meanings have been given in recent
years; in general terms, it identifies the role of the company as a component of the social community, capable ofinfluencing and at the same time being influenced by the morals and ethics that characterize the entire community.
The goal of the company still remains the maximization of profit, but to be pursued with a different perspective, thatis, with a total openness to the social needs of the community involved. Corporate Social Responsibility (also called
Corporate Responsibility) is the set of behaviours that companies should adopt in order to conduct their activities ina responsible manner towards society as a whole, contributing to Sustainable Development.

EU Ecolabel
EU Ecolabel or EU Flower is a voluntary ecolabel scheme established in 1992 by the European Commission. The
label includes a green flower with inclined green “ϵ” (Greek epsilon) as the flower, surrounded by 12 blue stars. On
EU Ecolabelled products, it must always be used together with the license number. Because of the logo, the label
has a nickname EU Flower.

GHG (Greenhouse gas)
It is a gas that absorbs and emits radiant energy within the thermal infrared range, causing the greenhouse effect.
The primary greenhouse gases in Earth’s atmosphere are water vapor (H2O), carbon dioxide (CO2), methane (CH4),
nitrous oxide (N2O), and ozone (O3). Without greenhouse gases, the average temperature of Earth’s surface would
be about −18 °C (0 °F), rather than the present average of 15 °C (59 °F). The atmospheres of Venus, Mars and Titan
also contain greenhouse gases. Human activities since the beginning of the Industrial Revolution (around 1750) haveproduced a 45% increase in the atmospheric concentration of carbon dioxide, from 280 ppm in 1750 to 415 ppm in2019. The last time the atmospheric concentration of carbon dioxide was this high was over 3 million years ago. This
increase has occurred despite the uptake of more than half of the emissions by various natural “sinks” involved in the
carbon cycle.
The vast majority of anthropogenic carbon dioxide emissions come from combustion of fossil fuels, principally coal,petroleum (including oil) and natural gas, with additional contributions coming from deforestation and other changes
in land use. The leading source of anthropogenic methane emissions is agriculture, closely followed by gas venting

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and fugitive emissions from the fossil-fuel industry. Traditional rice cultivation is the second biggest agricultural
methane source after livestock, with a nearterm warming impact equivalent to the carbon-dioxide emissions from allaviation. It is the process by which radiation from a planet’s atmosphere warms the planet’s surface to a temperature
above what it would be without this atmosphere. Radiatively active gases (i.e., greenhouse gases – not only CO2)
in a planet’s atmosphere radiate energy in all directions. Part of this radiation is directed towards the surface, thus
warming it. The intensity of downward radiation – that is, the strength of the greenhouse effect – depends on theamount of greenhouse gases that the atmosphere contains. The temperature rises until the intensity of upward
radiation from the surface, thus cooling it, balances the downward flow of energy. Earth’s natural greenhouse effectis critical to supporting life, and initially was a precursor to life moving out of the ocean onto land. Human activities,
mainly the burning of fossil fuels and clearcutting of forests, have increased the greenhouse effect and caused global
warming.

Eco-design
Environmentally sustainable design (also called environmentally conscious design, eco design, etc.) is the philosophyof designing physical objects, the built environment, and services to comply with the principles of ecologicalsustainability.

EFQM (European Foundation for Quality Management)
European Foundation for Quality Management is a not-for-profit membership foundation in Brussels, establishedin 1989 to increase the competitiveness of the European economy. The initial impetus for forming EFQM was a
response to the work of W. Edwards Deming and the development of the concepts of Total Quality Management. The
foundation was formed in 1989, with 67 members. The first version of the EFQM Excellence Model was created by agroup of experts from various sectors and academic institutions and launched in 1992. It acted as the framework forassessing applications for the European Quality Award, the transnational quality awards of Europe.

EMAS (EU Eco-Management and Audit Scheme)
The (EMAS) is a premium management instrument developed by the European Commission for companies andother organizations to evaluate, report, and improve their environmental performance. EMAS is open to every typeof organization eager to improve its environmental performance. It spans all economic and service sectors and isapplicable worldwide.

EPD (Environmental Product Declarations)
The International EPD® System is a global programme for environmental declarations. EPDs signal a manufacturer’scommitment to measuring and reducing the environmental impact of its products and services and report these
impacts in a hyper-transparent way. With an EPD, manufacturers report comparable, objective and third-party
verified data that show the good, the bad and the evil about the environmental performance of their products andservices.

ESA (European Space Agency)
The European Space Agency is an intergovernmental organisation of 22 member states dedicated to the explorationof space. Established in 1975 and headquartered in Paris, ESA has a worldwide staff of about 2,200 in 2018 and anannual budget of about € 6.68 billion (~US$7.43 billion) in 2020.

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EU Ecolabel
EU Ecolabel or EU Flower is a voluntary ecolabel scheme established in 1992 by the European Commission. The
label includes a green flower with inclined green “ϵ” (Greek epsilon) as the flower, surrounded by 12 blue stars. On
EU Ecolabelled products, it must always be used together with the license number. Because of the logo, the label
has a nickname EU Flower.

GHG (Greenhouse gas)
It is a gas that absorbs and emits radiant energy within the thermal infrared range, causing the greenhouse effect.
The primary greenhouse gases in Earth’s atmosphere are water vapor (H2O), carbon dioxide (CO2), methane (CH4),
nitrous oxide (N2O), and ozone (O3). Without greenhouse gases, the average temperature of Earth’s surface would
be about −18 °C (0 °F), rather than the present average of 15 °C (59 °F). The atmospheres of Venus, Mars and Titan
also contain greenhouse gases. Human activities since the beginning of the Industrial Revolution (around 1750) haveproduced a 45% increase in the atmospheric concentration of carbon dioxide, from 280 ppm in 1750 to 415 ppm in2019. The last time the atmospheric concentration of carbon dioxide was this high was over 3 million years ago. This
increase has occurred despite the uptake of more than half of the emissions by various natural “sinks” involved in the
carbon cycle. The vast majority of anthropogenic carbon dioxide emissions come from combustion of fossil fuels,
principally coal, petroleum (including oil) and natural gas, with additional contributions coming from deforestationand other changes in land use. The leading source of anthropogenic methane emissions is agriculture, closely
followed by gas venting and fugitive emissions from the fossil-fuel industry. Traditional rice cultivation is the second
biggest agricultural methane source after livestock, with a nearterm warming impact equivalent to the carbon-dioxide
emissions from all aviation. It is the process by which radiation from a planet’s atmosphere warms the planet’s
surface to a temperature above what it would be without this atmosphere. Radiatively active gases (i.e., greenhousegases – not only CO2) in a planet’s atmosphere radiate energy in all directions. Part of this radiation is directed
towards the surface, thus warming it. The intensity of downward radiation – that is, the strength of the greenhouseeffect – depends on the amount of greenhouse gases that the atmosphere contains. The temperature rises until theintensity of upward radiation from the surface, thus cooling it, balances the downward flow of energy. Earth’s natural
greenhouse effect is critical to supporting life, and initially was a precursor to life moving out of the ocean onto land.
Human activities, mainly the burning of fossil fuels and clearcutting of forests, have increased the greenhouse effectand caused global warming.
GHG emissions: Scope 1 covers the emissions from operations under a facility’s control, including onsite fuelcombustion.
•

In-house activities and direct emissions from Hitachi Rail’s own sites - Scope 1 emissions.

GHG emissions: Scope 2 covers the emissions from usage of electricity, steam, heat and/or cooling purchased fromthird parties.
•

Electrical energy and heat suppliers and their operating emissions related to Hitachi Rail’s activities Scope 2 emissions.

GHG emissions: Scope 3 covers upstream and downstream value chain emissions, including procured products,
transport of suppliers and business travel, usage of sold products and product disposal.
•

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GNSS (Global Navigation Satellite System)
Global Navigation Satellite System (GNSS) refers to a constellation of satellites providing signals from space thattransmit positioning and timing data to GNSS receivers. The receivers then use this data to determine location. By
definition, GNSS provides global coverage. Examples of GNSS include Europe’s Galileo, the USA’s NAVSTAR Global
Positioning System (GPS), Russia’s Global’naya Navigatsionnaya Sputnikovaya Sistema (GLONASS) and China’s
BeiDou Navigation Satellite System. The performance of GNSS is assessed using four criteria: 1. Accuracy: thedifference between a receiver’s measured and real position, speed or time; 2. Integrity: a system’s capacity to provide
a threshold of confidence and, in the event of an anomaly in the positioning data, an alarm; 3. Continuity: a system’sability to function without interruption; 4. Availability: the percentage of time a signal fullfils the above accuracy,
integrity and continuity criteria.

GRI (Global Reporting Initiative)
The GRI Standards create a common language for organizations – large or small, private or public – to report on
their sustainability impacts in a consistent and credible way. This enhances global comparability and enables
organizations to be transparent and accountable. The Standards help organizations understand and disclose theirimpacts in a way that meets the needs of multiple Stakeholders. In addition to reporting companies, the Standards
are highly relevant to many other groups, including investors, policymakers, capital markets, and civil society. The
Standards are designed as an easy-to-use modular set, starting with the universal Standards. Topic Standards arethen selected, based on the organization’s material topics – economic, environmental or social. This process ensuresthat the sustainability report provides an inclusive picture of material topics, their related impacts, and how they are
managed.

HazardA hazard is defined as a “Condition, event, or circumstance that could lead to or contribute to an unplanned orundesirable event.” Seldom does a single hazard cause an accident or a functional failure. More often an accident
or operational failure occurs as the result of a sequence of causes. A hazard analysis will consider system state, forexample operating environment, as well as failures or malfunctions.

HSE (Health Safety Environment)
HSE is an acronym for the methodology that studies and implements the practical aspects of protecting theenvironment and maintaining health and safety at occupation. In simple terms it is what organizations must do to
make sure that their activities do not cause harm to anyone. Commonly, quality - quality assurance & quality control- is adjoined to form the company division known as HSQE. From a safety standpoint, it involves creating organizedefforts and procedures for identifying workplace hazards and reducing accidents and exposure to harmful situations
and substances. It also includes training of personnel in accident prevention, accident response, emergency
preparedness, and use of protective clothing and equipment. Better health at its heart, should have the developmentof safe, high quality, and environmentally friendly processes, working practices and systemic activities that preventor reduce the risk of harm to people in general, operators, or patients. From an environmental standpoint, it involves
creating a systematic approach to complying with environmental regulations, such as managing waste or air
emissions all the way to helping site’s reduce the company’s carbon footprint.

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HSE (Health IPPC (Integrated Pollution Prevention and Control)
The International Plant Protection Convention (IPPC) is a 1951 multilateral treaty overseen by the Food andAgriculture Organization that aims to secure coordinated, effective action to prevent and to control the introduction
and spread of pests of plants and plant products. The Convention extends beyond the protection of cultivated plants
to the protection of natural flora and plant products. It also takes into consideration both direct and indirect damage
by pests, so it includes weeds. The Convention created a governing body consisting of each party, known as theCommission on Phytosanitary Measures, which oversees the implementation of the Convention. As of August 2017,
the Convention has 183 parties, which includes 180 United Nations member states, the Cook Islands, Niue, andthe European Union.[1] The Convention is recognized by the World Trade Organization’s (WTO) Agreement on the
Application of Sanitary and Phytosanitary Measures (the SPS Agreement) as the only international standard setting
body for plant health.

ISO (International Standards Organisation)
ISO is an international standard-setting body composed of representatives from various national standards
organizations. Founded on 23 February 1947, the organization promotes worldwide proprietary, industrial, andcommercial standards. It is headquartered in Geneva, Switzerland, and works in 165 countries. It was one of the firstorganizations granted general consultative status with the United Nations Economic and Social Council.

Joint implementation
The mechanism known as “joint implementation”, defined in Article 6 of the Kyoto Protocol, allows a country with anemission reduction or limitation commitment under the Kyoto Protocol (Annex B Party) to earn emission reduction
units (ERUs) from an emission-reduction or emission removal project in another Annex B Party, each equivalent to
one tonne of CO2, which can be counted towards meeting its Kyoto target. Joint implementation offers Parties a
flexible and cost-efficient means of fulfilling a part of their Kyoto commitments, while the host Party benefits fromforeign investment and technology transfer.

The Kyoto Protocol
The Kyoto Protocol was adopted on 11 December 1997. Owing to a complex ratification process, it entered into
force on 16 February 2005. Currently, there are 192 Parties to the Kyoto Protocol. In short, the Kyoto Protocol
operationalizes the United Nations Framework Convention on Climate Change by committing industrialized countries
and economies in transition to limit and reduce greenhouse gases (GHG) emissions in accordance with agreed
individual targets. The Convention itself only asks those countries to adopt policies and measures on mitigation andto report periodically. The Kyoto Protocol is based on the principles and provisions of the Convention and follows its
annexbased structure. It only binds developed countries, and places a heavier burden on them under the principleof “common but differentiated responsibility and respective capabilities”, because it recognizes that they are largely
responsible for the current high levels of GHG emissions in the atmosphere.foreign investment and technology
transfer.

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LoB (Line of Business)
Line of business (LOB) is a general term which refers to a product or a set of related products that serve a particularcustomer transaction or business need. In some industry sectors, like insurance, “line of business” also has aregulatory and accounting definition to meet a statutory set of insurance policies. It may or may not be a strategically
relevant business unit. “Line of business” often refers to an internal corporate business unit, whereas the term
“industry” refers to an external view that includes all competitors competing in a similar market. A line of business willoften examine its position within an industry using a Porter five forces analysis (or other industry-analysis method)and other relevant industry information.

MaaS (Mobility as a Service)
MaaS is an integrated system of transport aimed at optimizing urban mobility through modular solutions, which
are more coordinated and efficient. The goal is to answer in a flexible way to the increasingly emerging transport
necessity of mass transport in sustainable mobility ecosystem.

Non-renewable sources
A non-renewable resource (also called a finite resource) is a natural resource that cannot be readily replaced bynatural means at a quick enough pace to keep up with consumption.[1] An example is carbon-based fossil fuel. The
original organic matter, with the aid of heat and pressure, becomes a fuel such as oil or gas. Earth minerals and metalores, fossil fuels (coal, petroleum, natural gas) and groundwater in certain aquifers are all considered non-renewable
resources, though individual elements are always conserved (except in nuclear reactions). Conversely, resources
such as timber (when harvested sustainably) and wind (used to power energy conversion systems) are consideredrenewable resources, largely because their localized replenishment can occur within time frames meaningful tohumans as well.

OECD (Office of Economic Cooperation and Development)
OECD is an intergovernmental economic organisation with 37 member countries, founded in 1961 to stimulate
economic progress and world trade. It is a forum of countries describing themselves as committed to democracy
and the market economy, providing a platform to compare policy experiences, seek answers to common problems,
identify good practices and coordinate domestic and international policies of its members.

OHSAS (Occupational Health Safety Assessment Series)
It was a British Standard for occupational health and safety management systems. Compliance with it enabledorganizations to demonstrate that they had a system in place for occupational health and safety. BSI cancelled BS
OHSAS 18001 to adopt ISO 45001 as BS ISO 45001. ISO 45001 was published in March 2018 by the International
Organization for Standardization. Organizations that are certified to BS OHSAS 18001 can migrate to ISO 45001 by
March 2021 if they want to retain a recognized certification.

PM10/PM 50
It is the fraction of particles in the air of smaller size, less than 10/50 microns (one micron corresponds to one
thousandth of a millimiter). Give them small dimensions, they can remain suspended in the atmosphere for a longtime without settling to the ground and are also the ones that penetrate deeper into the streets respiratory tract
causing the greatest health problems in humans.

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PPE (Personal Protective Equipment)
PPE is protective clothing, helmets, goggles, or other garments or equipment designed to protect the wearer’s bodyfrom injury or infection. The hazards addressed by protective equipment include physical, electrical, heat, chemicals,biohazards, and airborne particulate matter. Protective equipment may be worn for job-related occupational safety
and health purposes, as well as for sports and other recreational activities. “Protective clothing” is applied to
traditional categories of clothing, and “protective gear” applies to items such as pads, guards, shields, or masks, andothers. PPE suits can be similar in appearance to a cleanroom suit.

Renewable energy
Renewable energy is useful energy that is collected from renewable resources, which are naturally replenished on ahuman timescale, including carbon neutral sources like sunlight, wind, rain, tides, waves, and geothermal heat. The
term often also encompasses biomass as well, whose carbon neutral status is under debate. This type of energy
source stands in contrast to fossil fuels, which are being used far more quickly than they are being replenished.
Renewable energy often provides energy in four important areas: electricity generation, air and water heating/cooling,transportation, and rural (off-grid) energy services.

PCR – Product Category Rules
A PCR is a copyrighted document that is part of the EPD “cookbook” and contains the recipe to create a highquality EPD for the product category you are interested in. The PCR provides the instructions for how the life-cycle
assessment (LCA) should be conducted. It sets out what you need to consider, including but not limited to:••••

System boundaries, i.e. which processes and stages of the product’s life cycle need to be considered.
Declared/functional unit: the amount, weight and service life of the product being assessed.
How to define e.g. the use phase and end-of-life options.
What impact categories need to be assessed in addition apart from the standard set as described in our
General Program Instructions (GPI).

SA 8000 (Social Accountability 8000)
SA8000 is an auditable certification standard that encourages organizations to develop, maintain, and apply sociallyacceptable practices in the workplace. It was developed in 1989 by Social Accountability International, formerly theCouncil on Economic Priorities, by an advisory board consisting of trade unions, NGOs, civil society organizations
and companies. [1] The SA8000’s criteria were developed from various industry and corporate codes to create acommon standard for social welfare compliance. SA8000 certification is a management systems standard, modeledon ISO standards. The criteria require that facilities seeking to gain and maintain certification must go beyond simple
compliance to the standard. Prospective facilities must integrate it into their management practices and demonstrateongoing compliance with the standard. SA8000 is based on the principles of international human rights norms as
described in International Labour Organization conventions, the United Nations Convention on the Rights of the Childand the Universal Declaration of Human Rights. It measures the performance of companies in eight areas importantto social accountability in the workplace: child labour, forced labour, health and safety, free association and collective
bargaining, discrimination, disciplinary practices, working hours and compensation.

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Stakeholders engagement
Stakeholders engagement is the process by which an organization involves people who may be affected by thedecisions it makes or can influence the implementation of its decisions. They may support or oppose the decisions,be influential in the organization or within the community in which it operates, hold relevant official positions or
be affected in the long term. is a key part of corporate social responsibility (CSR) and achieving the triple bottom
line. Companies engage their Stakeholders in dialogue to find out what social and environmental issues mattermost to them and involve Stakeholders in the decision-making process. Stakeholders engagement is used bymature organizations in the private and public, especially when they want to develop understanding and agreement
around solutions on complex issues and large projects. An underlying principle of Stakeholders engagement is that
Stakeholders have the chance to influence the decision-making process. A key part of this is multiStakeholders
governance. This differentiates Stakeholders engagement from communications processes that seek to issue
a message or influence groups to agree with a decision that is already made. Jeffrey (2009) in “Stakeholders
Engagement: A Roadmap to meaningful engagement” describes seven core values for the practices of gaining
meaningful participation of which perhaps the three most critical are:•••

Stakeholders should have a say in decisions about actions that could affect their lives or essential
environment for life.
Stakeholders participation includes the promise that Stakeholders’s contribution will influence thedecision.
Stakeholders participation seeks input from participants in designing how they participate.

The practitioners in Stakeholders engagement are often businesses, non-governmental organizations (NGOs), labororganizations, trade and industry organizations, governments, and financial institutions.

Sustainable development
Is the organizing principle for economic development while simultaneously sustaining the ability of natural systems
to provide the natural resources and ecosystem services on which the economy and society depend. The desired
result is a state of society where living conditions and resources are used to continue to meet human needs
without undermining the integrity and stability of the natural system. Sustainable development can be defined as
development that meets the needs of the present without compromising the ability of future generations to meet theirown needs. Sustainability goals, such as the current UN-level Sustainable Development Goals, address the global
challenges, including poverty, inequality, climate change, environmental degradation, peace and justice.

SDG (Sustainable Development Goals)
The 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015, provides
a shared blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are the17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries - developed anddeveloping - in a global partnership. They recognize that ending poverty and other deprivations must go hand-inhand with strategies that improve health and education, reduce inequality, and spur economic growth – all whiletackling climate change and working to preserve our oceans and forests.

S4M (Services for Mobility)
S4M – The drive-to-store platform. S4M delivers advertising that drives more customers to stores, dealerships andrestaurants. His drive-to-store platform, Fusio, delivers incremental customer visits which are always independently
verified. Founded in 2011, S4M’s platform is available globally, and used by over 1,000 brands worldwide to drive
customers to physical locations.
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TEG is a group of 35 experts on sustainable finance, set up by the European Commission. Its function is to support
the Commission in implementing the Action Plan approved in May 2018, through in-depth studies on:••••

SRI taxonomy, or a single system of classification of economic activities that can be defined as“sustainable” (with priority on the issues of mitigation and adaptation to climate change);
improvement of guidelines on the reporting of activities related to climate change by banks, insurancecompanies and other large companies;
common criteria for the construction of low-carbon and positive-carbon impact benchmarks, ie reliablereference parameters to reduce the risk of greenwashing and increase market transparency;
Green Bond Standard, a European quality certification for green bonds.

The Technical Expert Group (TEG) on Sustainable Finance published a proposal for an EU classification system, ora Taxonomy, which sets out screening criteria for economic activities that can contribute substantially to climate
mitigation and adaptation. The taxonomy is a tool to support private investments towards meeting GHG emission
reductions in line with the Paris Agreement.

TEG
The Technical Expert Group on Sustainable Finance (TEG) is a group of 35 experts on sustainable finance, set up by
the European Commission. Its function is to support the Commission in implementing the Action Plan approved in
May 2018, through in-depth studies on:••••

SRI taxonomy, or a single system of classification of economic activities that can be defined as“sustainable” (with priority on the issues of mitigation and adaptation to climate change);
improvement of guidelines on the reporting of activities related to climate change by banks, insurancecompanies and other large companies;
common criteria for the construction of low-carbon and positive-carbon impact benchmarks, ie reliablereference parameters to reduce the risk of greenwashing and increase market transparency;
Green Bond Standard, a European quality certification for green bonds.

The TEG began its work in July 2018. The mandate of the SRI taxonomy, benchmark and Green Bond Standard
subgroups, whose work was expected to be completed in June 2019, was officially extended until the end of 2019.
The members of the TEGs come from civil society, academia and finance, as well as from European and international
public bodies.
The TEG works through plenary sessions and subgroup meetings that have been set up for each of the four study
themes. As part of the UNIFE Sustainable Transportation committee, Hitachi Rail has given its contribution in thedefinition and path of the TEGs.

TMR (Total Material Requirement)
The new indicator, Total Material Requirement (TMR), expresses the total mass of primary materials extracted fromnature to support human activities. Thus, TMR is a highly aggregated indicator for the material basis of an economy.

UNIFE (Association of European railway builders)Operating in Brussels since 1992, UNIFE represents European train builders and rail equipment suppliers. The

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association advocates on behalf of more than 100 of Europe’s leading rail supply companies – from SMEs to majorindustrial champions - active in the design, manufacture, maintenance and refurbishment of rail transport systems,
subsystems and related equipment. UNIFE also brings together national rail industry associations from 11 European
countries. Our members account for 84% of the European, and 46% of the global, market for rail equipment andservices. We communicate members’ interests at the European and international levels while actively promoting rail
equipment and standards worldwide.
UNIFE’s membership reflects all segments of Europe’s rail supply industry from rolling stock manufacturers
and infrastructure suppliers to system integrators and engineering companies. Our members are committed tocollaborating on common challenges facing our sector. They are also providing the innovative technology needed tomeet the growing demand for sustainable transport. We work together to help shape interoperability standards andthe coordination of EU-funded research projects that contribute to the technical harmonisation of railway systems.
This broad spectrum of work has established UNIFE as a trusted partner for EU institutions interested in rail andtransport matters. This reputation has allowed us to cooperate closely with the EU Agency for Railways, European
Standardisation Organisations (e.g. CEN and CENELEC, ETSI), and other organisations representing rail sector
Stakeholders.

UNISIG (Association of European railway signalling companies)
UNISIG is an industrial consortium which was created to develop the ERTMS/ETCS technical specifications. As
an Associate Member of UNIFE, a recognised Stakeholders, UNISIG actively contributes to the activities of theEuropean Union Agency for Railways in the field of ERTMS/ETCS technical specifications. The UNISIG Consortium is
an Associate Member of UNIFE. Eight companies now known as Alstom, AŽD Praha, Bombardier, CAF, Hitachi Rail
STS, MERMEC, Siemens, and Thales are its Full Members. ECM and SIRTI are Associate Members of UNISIG.

UITP (The International Association of Public Transport)
UITP (Union Internationale des Transports Publics) is the International Association of Public Transport and apassionate champion of sustainable urban mobility. Established in 1885, with more than 135 years of history, it is the
only worldwide network to bring together all public transport Stakeholders and all sustainable transport modes. UITP
represents an international network of 1,800 member companies located in more than 100 countries and covers allmodes of public transport – metro, light rail, regional and suburban railways, bus, and waterborne transport. It also
represents collective transport in a broader sense. UITP’s network counts one main and EU office in Brussels andfifteen regional and liaison offices worldwide (Abidjan, Astana, Bangalore, Casablanca, Dubai, Hong Kong, Istanbul,
Johannesburg, Moscow, New York, Rome, São Paulo, Shenzhen, Singapore and Tehran).

UNI ISO 9001:2000
The ISO 9000 family of quality management systems (QMS) is a set of standards that helps organizations ensure
they meet customer and other Stakeholders needs within statutory and regulatory requirements related to a productor service.ISO 9000 deals with the fundamentals of QMS,including the seven quality management principles that
underlie the family of standards. ISO 9001 deals with the requirements that organizations wishing to meet thestandard must fulfil. Third-party certification bodies provide independent confirmation that organizations meet therequirements of ISO 9001. Over one million organizations worldwide are independently certified, making ISO 9001
one of the most widely used management tools in the world today. However, the ISO certification process has been
criticized as being wasteful and not being useful for all organizations.

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UNI EN ISO 14001
UNI EN ISO 14001 is internationally recognized as the reference standard for EMS Environmental Management
Systems and is applicable to organizations of all sizes and sectors. The ISO 14001 standard provides a management
structure for the integration of environmental management practices, pursuing environmental protection, pollution
prevention, as well as the reduction of energy and resource consumption. Many organizations choose to go further,
combining ISO 14001 certification with registration with respect to the European EMAS regulation. This is an option
applicable to companies that intend to report to Stakeholders on their environmental performance using a scheme
defined at European level and designed to make the performance of similar companies comparable through specificindicators. The ISO 14001 standard (implemented in Italy in the UNI EN ISO 14001: 1996 standard and subsequently
UNI EN ISO 14001: 2004) is a certifiable standard, i.e. it is possible to obtain, from an accredited certification bodyoperating within certain rules, certificates of conformity the requirements contained therein.

UNEP (United Nations Environment Programme)
The United Nations Environment Programme (UNEP) is responsible for coordinating responses to environmental
issues within the United Nations system. It was established by Maurice Strong, its first director, after the United
Nations Conference on the Human Environment in Stockholm in June 1972. Its mandate is to provide leadership,deliver science and develop solutions on a wide range of issues, including climate change,the management ofmarine and terrestrial ecosystems, and green economic development. The organization also develops international
environmental agreements; publishes and promotes environmental science and helps national governments achieveenvironmental targets. As a member of the United Nations Development Group, UNEP aims to help the world meetthe 17 Sustainable Development Goals.

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Methodological Note
The Corporate Social Responsibility and Sustainability Report 2021 of Hitachi Rail, in its second edition, has been
prepared in accordance with the “GRI Sustainability Reporting Standards“ of the Global Reporting Initiative, using
the “in accordance – core” reporting option.
In order to ensure the quality of the Report, Hitachi Rail follows the reporting principles for defining report content
and quality in accordance with the GRI Standards, which provide a set of criteria to select the information to be
included in the report and the related representation methods.
Principles for defining report content•••

Stakeholders Inclusiveness – The application of this principle has led the company to carry out andreport on the involvement activities, mainly described in the “Stakeholders engagement” chapter. In
addition, almost 400 people were involved and contacted in the new materiality analysis, both among
top management and external Stakeholders (suppliers, customers, partners, etc.).
Sustainability Context – In paragraphs “ Hitachi Rail Contribution to Net-Zero” and “Road map tosustainability” have tried to give a clear definition of how the company interprets the sustainability as
related to the business sector to which it belongs. Further, without losing an overall view, we have tried
to describe local initiatives, reporting the features of the different markets (see “Human Capital” chapterand “People care” section).
Materiality – The relevance of the sustainability issues considered is consistent with the new materiality
analysis carried out for this edition of the CSR and Sustainability Report. The materiality analysis wascomposed of a set of 20 questions for internal Stakeholders and 15 for external ones.

The company also wanted to underline the close link between these topics and the Sustainable Development Goalsof the UN (SDGs) and the related Targets, both by inserting them directly in the materiality matrix and througha specific table that highlights the existing connection (see paragraph “Sustainability topics and contribution to
SDGs”). The criterion that allowed the positioning of the SDGs within the matrix was the overlapping of each Goal
with the most relevant topic related to it.
The following table reports the material topics identified by Hitachi Rail while defining the applicable reporting scopeand limitations, if any, for each topic.

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LIMITATION REGARDING
THE REPORTING SCOPEREPORTING SCOPE
INSIDEOUTSIDE

INSIDEOUTSIDECUSTOMER FOCUSING

Stakeholders
engagement

Hitachi Rail

-

-

-

ANTI-CORRUPTION

Anti-corruption

Hitachi Rail

-

-

-

R&D E PRODUCTINOOVATION

Customer health andsafetyHitachi Rail

-

-

-

OCCUPATIONAL HEALTHAND SAFETY

Occupational health andsafetyHitachi RailSuppliers-

Reporting scope
partially extended tosuppliers

EMPLOYEE WELFARE

Employment;

Hitachi Rail

-

-

-

HYBRID WORKINGMODELS

Non-discrimination

Hitachi Rail

-

-

-

TRAINING AND CAREERDEVELOPMENT

Employment;

Hitachi Rail

-

-

-

SUPPLY CHAIN ETHICALMANAGEMENT

Non-discrimination

Hitachi RailSuppliers-

Reporting scope
partially extended tosuppliers

PROTECTION OF
DIVERSITY ANDOPPORTUNITY

Training and education

Hitachi Rail

-

-

-

ECO-DESIGN

Procurement practices;

Hitachi Rail

-

-

-

CIRCULAR ECONOMY

Supplier environmental
assessment;

Hitachi Rail

-

-

-

ENERGY EFFICENCY

Supplier social
assessment

Hitachi RailSuppliers-

Reporting scope
partially extended tosuppliers

SUPPLY AND
PRODUCTION OF
ELECTRICITY FROM RES

Diversity and equal
opportunities

Hitachi RailSuppliers-

Reporting scope
partially extended tosuppliers

SUPPORT FOR LOCALCOMMUNITY

Materials; Emissions;
Energy; Effluents andwaste

Hitachi Rail

-

-

-

WASTE MANAGEMENT

Materials; Effluents andwaste

Hitachi RailSuppliers-

Reporting scope
partially extended tosuppliers

MITIGATION OF CLIMATECHANGE

EnergyHitachi RailSuppliers-

Reporting scope
partially extended tosuppliers

AIR QUALITY

EnergyHitachi Rail

-

-

-

WATER CONSUMPTIONOPTIMISATION

Local Communities

Hitachi Rail

-

-

-

MANAGEMENT OF
EFFLUENTS

Effluents and waste

Hitachi Rail

-

-

-

•

Hitachi Rail

Completeness – The report has been issued in order to provide Stakeholders with a complete pictureof Hitachi Rail’s global activities, but information reported in this second edition of report Japanesebusiness was included.

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Principles for defining report quality•

Balance – In describing the outcomes of Hitachi Rail’s activities, we have sought to reflect both thepositive and negative aspects to give a balanced view of the overall performance.
•
Comparability – To enable Stakeholders to analyze changes in the Hitachi Rail’s performance, theReport includes comparative data of the two-year period for the years ending 31 March 2020 – 31
March 2021. The report structure has undergone some changes to make it easier to read.
•
Accuracy – The accuracy of environmental, health and safety data and information come from certified
management systems (ISO 14001 and ISO 45001).
The source of conversion rates used for the calculation of GHG emissions are as follows:•
Scope 1 direct emissions: DEFRA – Department for Environment Food & Rural Affairs (Gov. UK).
•
Scope 2 indirect emissions: GHG emission factors used by Hitachi Ltd. and its consolidates
subsidiaries•
Scope 3 indirect emissions: DEFRA – Department for Environment Food & Rural Affairs (Gov. UK).
•
Timeliness – The Corporate Social Responsibility and Sustainability Report will be prepared annually.
•
Clarity – The report has been structured to make the information easily identifiable by Stakeholders. The
Corporate Social Responsibility and Sustainability Report 2021 opens with the letter from the CEO, andincludes four sections: Hitachi Rail Identity; Environmental; Social Governance; the document ends with
the Glossasry, Methodological Note and the GRI Content Index. The report refers to the Hitachi Rail’s
website for certain matters, indicating the relevant web page address.
•
Reliability – The Corporate Social Responsibility and Sustainability Report 2021 has been approved by
the Steering Sustainability Committee.

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GRI CONTENT INDEXGENERAL INFORMATION
Cross-reference/
Direct answer

Omission/Reason/ Explanation

1. ORGANIZATIONAL PROFILE
102-1

Name of the organization

Cover

102-2

Activities, brands, products,
and services

pp.9-10102-3

Location of headquarters

p.12

102-4

Location of operations

p.12

102-5

Ownership and legal form

p.12

102-6

Markets served

p.12

102-7

Scale of the organization

pp.12; 102-104; 118-126

102-8

Information on employees andother workers

pp.102-104

102-9

Supply chain

pp.143-147

102-10Significant changes to theorganization and its supply
chain

p.4

102-11

Precautionary Principle orapproachpp.30-34; 42-47

102-12External initiatives

pp.41; 59-61

102-13

Membership of associations

p.60

102-14

Statement from senior decisionmaker

pp.6-7102-15Key impacts, risks, andopportunities

pp.42-47

102-16

Values, principles, standards,
and norms of behavior

pp.10-11; 48-54

102-17

Mechanisms for advice andconcerns about ethics

p.49

102-18Governance structurewww.hitachirail.com/
our-company/globalleadership-team/

102-20Executive-level responsibility foreconomic, environmental, andsocial topics

p.29

2. STRATEGY

3. ETHICS AND INTEGRITY

4. GOVERNANCE

5. STAKEHOLDERS ENGAGEMENT
102-40

List of Stakeholders groups

pp.16; 54-56; 72-75

102-41

Collective bargaining
agreements

p.132

102-42

Identifying and selecting
Stakeholders

pp.16; 72-75

102-43

Approach to Stakeholders
engagement

pp.54-56; 114; 119-126

102-44

Key topics and concerns raised

pp.18-19

102-45

Entities included in the
consolidated financial
statements

p.12

102-46

Defining report content andtopic Boundaries

pp.15-19; 161

102-47

List of material topics

pp.18-19

102-48

Restatements of information

FY2019 data has beenrecalculated to include theKasado production site102-49Changes in reporting

Hitachi Rail's Corporate Social
Responsibility and Sustainability
Report also includes Japan inits scope

6. REPORTING PRACTICE

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102-50

Reporting period

The data in this report refers to
the two-year period 31.03.2031.03.21.

102-51

Date of most recent report

Corporate Social Responsibility
and Sustainability Report 2020

102-52

Reporting cycle

Annual102-53

Contact point for questions
regarding the reportp.4

102-54Claims of reporting inaccordance with the GRI
Standards

p.160

102-55

GRI content index

pp.163-167

SPECIFIC DISCLOSURESECONOMIC
Cross-reference

Omission/Reason/Explanation

PROCUREMENT PRACTICES
103-1

Explanation of the material
topic and its Boundary

pp.17; 18; 47; 161

103-2

The management approachand its components

pp.143;147

103-3

Evaluation of the management
approach

p.147

Proportion of spending on local
suppliers

Hitachi Rail tends to procurematerials, services and labour
mostly on local markets, alsowith the aim to contributeto the development of local
economies

103-1

Explanation of the material
topic and its Boundary

pp.17; 18; 161

103-2

The management approachand its components

pp.48-50

103-3

Evaluation of the management
approach

p.48

205-3

Confirmed incidents ofcorruption and actions takenno incident of corruption
occurred in the period
considered

204-1

The Corporate will in the
future undertake to collect thedata necessary for complete
coverage of the indicator.

ANTI-CORRUPTIONENVIRONMENT
Cross-reference
Direct answer

Omission/Reason/
Explanation

MATERIALS
103-1

Explanation of the material
topic and its Boundary

pp.17; 19; 43; 161

103-2

The management approachand its components

pp. 92-94; 96-98

103-3

Evaluation of the management
approachpp.33-34. Management
reviews

301-1

Materials used by weight orvolumepp.92-94

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ENERGY
103-1

Explanation of the material
topic and its Boundary

pp.17; 19; 42; 161

103-2

The management approachand its components

pp.89-92

103-3

Evaluation of the management
approach

302-1

Energy consumption within theorganization

p.90

302-3

Energy intensity

p.91

302-4

Reduction of energy
consumption

p.92

302-5

Reduction in energy
requirements of products andservices

pp.68-71

103-1

Explanation of the material
topic and its Boundary

pp.17; 19; 44; 161

103-2

The management approachand its components

pp.94-95

103-3

Evaluation of the management
approachpp.33-34. Management
reviews

303-1

Water withdrawal by source

pp.95

103-1

Explanation of the material
topic and its Boundary

pp.17; 19; 35-37; 42; 44; 161

103-2

The management approachand its components

pp.66-67; 77-79

103-3

Evaluation of the management
approachp.79. Management review

305-1

Direct (Scope 1) GHG
emissionspp.80-83

305-2

Energy indirect (Scope 2) GHG
emissionspp.81; 84

305-3

Energy indirect (Scope 3) GHG
emissionspp.81; 85-86; 87-88

305-4

GHG emissions intensity

p.87

305-5

Reduction of GHG emissions

pp.82-86

305-7

Nitrogen oxides (NOX), sulfur
oxides (SOX), and othersignificant air emissions

p.100

103-1

Explanation of the material
topic and its Boundary

pp.17; 19; 43; 161

103-2

The management approachand its components

pp.97-100

103-3

Evaluation of the management
approachpp.33-34. Management
reviews

306-2

Waste by type and disposal
method

p.99

103-1

Explanation of the material
topic and its Boundary

pp.17; 42-44

103-2

The management approachand its components

pp.32-34

103-3

Evaluation of the management
approachpp.33-34. Management
reviews

pp.33-34. Management
reviews

WATER

EMISSIONSEFFLUENTS AND WASTEENVIRONMENTAL COMPLIANCE

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307-1

Non-compliance withenvironmental laws andregulations

During the FY2021 there wereno fines and non-monetary
sanctions for non-compliancewith environmental laws andregulations

SUPPLIER ENVIRONMENTAL ASSESSMENT
103-1

Explanation of the material
topic and its Boundary

pp.17; 18; 47; 161

103-2

The management approachand its components

pp.143-146

103-3

Evaluation of the management
approach

p.147

308-1

New suppliers that werescreened using environmental
criteria

p.146

SOCIAL
Cross-reference/
Direct answer

Omission/Reason/
Explanation

EMPLOYMENT
103-1

Explanation of the material
topic and its Boundary

103-2

The management approachand its components

103-3

Evaluation of the management
approach

p.114

401-1

New employee hires andemployee turnover

pp.105-107

401-2

Benefits provided to fulltime employees that are notprovided to temporary or parttime employees

pp.118-126

401-3

Parental leave

pp.128-129

pp.17; 18; 46; 161
pp.105-107; 118-126; 128129

LABOR/MANAGEMENT RELATIONS
103-1

Explanation of the material
topic and its Boundary

pp.17; 132

103-2

The management approachand its components

pp.132

103-3

Evaluation of the management
approach

p.114

Minimum notice periods
regarding operational changes

In the event of particularly
significant organizationalchanges, specificcommunications initiatives
targeting broad categories of
employees are envisaged to
explain the reasons for thechanges.

402-1

OCCUPATIONAL HEALTH AND SAFETY
103-1

Explanation of the material
topic and its Boundary

p.17; 18; 45-46; 161

103-2

The management approachand its components

pp.24-27; 133-135

103-3

Evaluation of the management
approachp.33-34. Management reviews

403-2

Types of injury and rates of
injury, occupational diseases,
lost days, and absenteeism,and number of work-related
fatalities

p.134

Explanation of the material
topic and its Boundary

p.17; 19; 161

The corporate will in the
future undertake to collect thedata necessary for complete
coverage of the indicator.

TRAINING AND EDUCATION
103-1

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103-2

The management approachand its components

pp. 110-113

103-3

Evaluation of the management
approachpp.112-114

404-1

Average hours of training peryear per employee

p.111

404-2

Programs for upgrading
employee skills and transition
assistance programs

pp.110-113

404-3

Percentage of employees
receiving regular performanceand career development
reviews

pp.111-112

DIVERSITY AND EQUAL OPPORTUNITY
103-1

Explanation of the material
topic and its Boundary

pp.17; 45; 161

103-2

The management approachand its components

pp.107-109

103-3

Evaluation of the management
approach

p.144

405-2

Ratio of basic salary andremuneration of women to men

p.133

103-1

Explanation of the material
topic and its Boundary

p.46

103-2

The management approachand its components

pp.48; 51

103-3

Evaluation of the management
approach

p.48

412-2

Employee training on humanrights policies or procedures

p.112

103-1

Explanation of the material
topic and its Boundary

pp.17; 19; 161

103-2

The management approachand its components

pp.54-56; 119-126

103-3

Evaluation of the management
approach

p.55

413-1

Operations with local
community engagement,
impact assessments, anddevelopment programs

pp.119-126

103-1

Explanation of the material
topic and its Boundary

pp.17; 18; 47; 161

103-2

The management approachand its components

pp.143-146

103-3

Evaluation of the management
approach

p.147

414-1

New suppliers that werescreened using social criteria

p.146

HUMAN RIGHTS ASSESSMENT

LOCAL COMMUNITIESSUPPLIER SOCIAL ASSESSMENTCUSTOMER HEALTH AND SAFETY
103-1

Explanation of the material
topic and its Boundary

pp.35-36

103-2

The management approachand its components

pp.72-75; 135-142

103-3

Evaluation of the management
approach

pp.72-75

416-2

Incidents of non-complianceconcerning the health andsafety impacts of products andservices

There were no cases ofnoncompliance related toservice and products healthand safety impacts

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This Sustainability Report has been preparedby Hitachi Rail Global CSR & Sustainability department.
For information, please contact:
CSR & Sustainability team to
csr@hitachirail.com
Respecting the environment, Hitachi Rail has printed
this Sustainability Report on paper produced from
responsibly managed forests, according to FSC® criteria(Forest Stewardship Council®)Hitachi Rail Corporate Social Responsibility and Sustainability Report 2021

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Hitachi Rail Ltd
7th Floor, One New Ludgate,
60 Ludgate Hill,
London, EC4M 7AW

Hitachirail.com

On the front cover:
Lumo – A new sustainable way to travel
The new Hitachi Rail trains for Lumo provide low-carbon and affordable long-distance travel for an estimated
1 million+ passengers a year.
The fleet started operation in October 2021 on routes from London to Edinburgh.
Hitachi Rail170