Introduction

SocialManagement

Social Innovation

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

102

Human Rights

Human Capital
Diversity, Equity and Inclusion

Human Rights
	Executive Summary

Basic Concept
Hitachi believes that respect for human rights is our responsibility as a global company and essential to our business activities. We emphasize engagement with stakeholders to understandand respond to human rights impacts effectively. We are making continuous efforts not to engage in any acts that may impair individual dignity or discriminate on the basis of sex, sexual orientation, age, nationality, race, ethnicity, ideology, belief, religion, social status, family origin, disease, or disability.

Respect for Human Rights Throughout the
Value Chain
Responsible Procurement

Topic

Overview

Quality and Customer Satisfaction
Social Contribution Activities
Social Data

The Hitachi Group Human Rights Policy is one of our highest internal standards. We conduct
Respect for
Human Rights
Throughout the
Value Chainhuman rights due diligence (HRDD) throughout the value chain based on the Human Rights Risk
Management Implementation Manual, which we produced in accordance with the UN Guiding
Principles on Business and Human Rights. We hold HRDD Execution Managers Meetings once or
twice a year as occasions for group-wide information sharing and deliberation, addressing humanrights risk management as an entire Hitachi Group effort.

Note: Hitachi normally refers to suppliers (including vendors or providers) as procurement partners who build business together on an equal footing.

Targets, KPIs, and Results

Conduct human rights due diligence andstrengthen monitoring of procurement partners forresponsible procurement, including human rights
FY2023 Target: Conduct human rights risk assessments at all
Bus (10 Bus) and major Hitachi Group companies
FY2022 Results: Conducted human rights risk assessments for certain Group companies

Introduction

SocialHuman Capital
Diversity, Equity and Inclusion

Human Rights
Executive Summary

	Respect for Human Rights Throughout
the Value Chain
Responsible Procurement
Quality and Customer Satisfaction
Social Contribution Activities
Social DataManagement

Social Innovation

Environmental

SocialGovernance

Assurance

Hitachi Sustainability Report 2023

103

Respect for Human Rights Throughout the Value Chain
Respecting the Human Rights of All People

To formulate this policy, we invited representatives of theEuropean Commission, ILO, NGOs, corporations, and lawyers

Approach

specialized in human rights issues to take part in stakeholder

Hitachi believes that respecting human rights is our duty as a

dialogues. We then incorporated opinions and suggestions

global company and essential to conducting business.

offered during the dialogues and formulated the policy following

We refuse to engage in any acts that may impair individual
dignity or discriminate on bases such as gender, sexual orienta-

deliberation and approval by the Senior Executive Committee.
Hitachi has been a member of the United Nations Globaltion, age, nationality, race, ethnicity, ideology, belief, religion,

Compact since 2009. We declared our support for the UN

social status, family origin, disease, or disability.

Global Compact, which outlines a set of universal principles

We place great importance on engagement with stake­that companies should adhere to in the four areas of human

holders in order to understand and manage our impact onrights, labor, the environment, and anti-corruption.

human rights. Stakeholders whose human rights are affected

Accordingly, we continue to pursue efforts in each area.

or may be affected by Hitachi’s operations include employees*3 Guiding Principles on Business and Human Rights; John Ruggie, Special
Representative of the Secretary-General on the issue of human rights andtransnational corporations and other business enterprises; March 2011.

Hitachi Group Human Rights Policy

Hitachi Group Code of Ethics and Business Conduct
https://www.hitachi.com/corporate/about/conduct/pdf/conduct_e.pdf
Hitachi Group Sustainable Procurement Guidelines
https://www.hitachi.com/procurement/csr/EN_HG_SPG.pdf
P.106 Encouraging Procurement Partners to Conduct Activities

Hitachi Global Compliance Hotline

Hitachi also protects freedom of expression and the rightGRI 2-26/406-1

Systemat Hitachi and its procurement partners, local communities,

to privacy, as recognized by international norms, such as theconsumers, other individuals or groups whose livelihoods orInternational Covenants on Human Rights, to ensure no viola-

Hitachi established a Group-wide internal reporting system

working environments may be affected, industry associations,tions of human rights. Hitachi conducts human rights due

called the Hitachi Global Compliance Hotline.

government entities, investors, NGOs/NPOs, and human rights

diligence (HRDD)*2 in line with the UN Guiding Principles on

We investigate all reports, including those concerningorganizations, etc.

Business and Human Rights,*3 and provides appropriate

human rights and harassment, and following verification of theeducation to employees. Furthermore, we comply with therelevant facts, we inform those who submitted reports of thelaws and regulations in the regions and countries where we

investigation results. We make every effort to deal with situa-

operate. Where there is a conflict between internationallytions as appropriate, including taking remedial action whenrecognized human rights and the laws and regulations of anecessary. (Over 20 languages supported)

Hitachi Group Human Rights Policy
PolicyGRI 2-23

Hitachi formulated the Hitachi Group Human Rights Policy inspecific country or region, Hitachi will follow processes thatMay 2013, and we view this policy as one of our highest

seek ways to honor international human rights principles.

internal standards. This policy declares our respect for humanWith respect to the human rights of children, we are striv-

rights as recorded in the International Bill of Human Rights*1

ing to ensure there is no child labor nor forced labor in ourand the International Labour Organization (ILO) Declaration oncompany or supply chain. The Hitachi Group Code of Ethics

Fundamental Principles and Rights at Work. The policy stipu-

and Business Conduct stipulates that consideration be given

lates basic rights at work, including freedom of association

to human rights, including those of children.

and the effective recognition of the right to collective bargaining, the elimination of all forms of forced or compulsory labor,
the effective abolition of child labor, the elimination of discrimination in respect of employment and occupation, and safeand healthy environment.

*1 International Bill of Human Rights: Collective name for the Universal Declarationof Human Rights and International Covenants on Human Rights adopted by theUnited Nations.
*2 Human rights due diligence (HRDD): An ongoing process to identify and assess
potential and actual human rights negative impacts, take appropriate action toprevent or mitigate potential impacts, track the effectiveness of actions toaddress impacts, and communicate externally.

Note: Hitachi normally refers to suppliers (including vendors or providers) as procurement partners who build business together on an equal footing.

Hitachi Global Compliance Hotline
https://secure.ethicspoint.eu/domain/media/en/gui/109107/index.html
P.145 Hitachi Global Compliance Hotline (Whistleblower System)

Structure for Promoting Respect for
Human Rights
Structure

GRI 2-13/2-24/2-25/3-3

Hitachi continues to strengthen human rights risk management
worldwide through efforts that include tasking the Chief
Sustainability Officer with Group-wide human rights promotion
and the formulation of policies based on the status of HRDD

Introduction

SocialHuman CapitalManagement

Social Innovation

SocialEnvironmental

Governanceexecution managers are then appointed to take charge ofBoard of Directors as necessary. The Audit Committee, com-Secretariat, established within the headquarters of Hitachi, Ltd.,HRDD execution in the respective BUs and Group companies,

posed of independent directors, conducts operational audits(consisting of the human capital division, procurement division

convening HRDD Promotion Meetings. We take measures toon sustainability-related operations, while the responsible
executive officer reports on important human rights issues.

and sustainability division) takes charge of core promotion

advance the formulation and maintenance of an implementa-

activities based on inter-divisional cooperation that include

tion framework, aiming to address global human rights risks.

Human Rights

investigating HRDD promotion measures for the Hitachi Group

Subsidiaries of BUs and key Group companies outside Japanand its procurement partners, preparing implementation-­work closely with regional headquarters to share region-­oriented manuals and guidelines, and responding to inquiries

specific issues (cultural and religious backgrounds, legislativefrom Business Units (BUs) and Group companies.

trends, etc.) and discuss how to respond.

	Respect for Human Rights Throughout
the Value Chain104

progress throughout the Hitachi Group. Our HRDD Promotion

Diversity, Equity and Inclusion

Executive Summary

Hitachi Sustainability Report 2023

Assurance

HRDD Initiatives
Activities

Materiality

Hitachi manages human rights risks according to the follow-

Hitachi comprises diverse business entities and must

In addition, we hold the HRDD Execution Managers

manage human rights risks by taking into consideration the

Meeting once or twice a year as an occasion for Group-wide

Management Implementation Manual prepared for practical

Quality and Customer Satisfaction

characteristics of each business and its value chain. To

information sharing and deliberation. Important matters dis-

use for each BU and Group company, and in line with the UN

Social Contribution Activities

achieve this, Hitachi appoints the heads of BUs and presidents

cussed by the meeting may also be deliberated and decided

Guiding Principles on Business and Human Rights.

Social Dataof key Group companies as HRDD promotion officers. HRDD

on by the Senior Executive Committee and reported to theing HRDD process, based on the Human Rights Risk

HRDD Process

Framework for Promoting Respect for Human Rights
Board of Directors

Senior Executive Committee❹ Communicate

Sustainability Promotion Meeting
HRDD Execution
Managers Meeting

iness ProcessBuswith Stakeho
ge
lde
a
ng

rs

E

Responsible Procurement

Hitachi Group Human
Rights Due Diligence
Process

Information sharing/opinion gathering

Human rights promotion meetings andorganizations at BUs/major Group companies(HRDD Promotion Meeting, etc.)➊ Assess Risks❸ Track➋ Integrate and Act

Human rights promotion meetings andorganizations in each region

Roles of Human Rights-Related Meeting Body and Organization
Meeting body/Organization

Members

Purpose/Role❶ Assess Risks

HRDD Execution Managers Meeting

HRDD execution managers at BUs and key
Group companies• Providing information from experts• Sharing of the status of each company’s initiatives• Requests for surveys/status checks

Human rights meetings andorganizations at BUs/major groupcompanies

Persons responsible for HRDD promotion,
persons responsible for HRDD implementation,and persons in relevant divisions• Pursue human rights activities tailored to the businesscharacteristics of each BU/key Group company

HRDD in fiscal 2022 for each BU and major Group company,

Persons in charge of HRDD promotion atregional headquarters, regional/local representatives selected from BUs/major Group
companies• Conduct and support understanding of HRDD based on the
UN Guiding Principles on Business and Human Rights• Share regional regulatory trends and risk information• Consider measures to address human rights issues in major
projects based on regional characteristics

businesses, value chains, and operating regions.

Human rights meetings andorganizations in each region

Note: Hitachi normally refers to suppliers (including vendors or providers) as procurement partners who build business together on an equal footing.

Based on the experience of addressing salient risks (forcedlabor, potential violations of migrant workers’ rights) acrossthe Group in fiscal 2021, Hitachi began business-­specifictaking into consideration the characteristics of respective
Based on the results of the risk assessments conductedat each BU and major Group company for fiscal 2022, we
identified salient human rights risks such as those included in
the following table.

Introduction

SocialManagement

Social Innovation

SocialEnvironmental

Governance105

We plan to implement specific measures in fiscal 2023 andStakeholders Potentially Affected
Procurement partners

Diversity, Equity and Inclusion

Forced labor●

Human Rights

Long working hours●

Executive Summary

Hitachi Sustainability Report 2023

❷ Integrate and Act and ❸ Track

Salient Human Rights Risks

Human Capital

Assurance

Own employees

Customers/end-users

Local communities

beyond for the salient human rights risks identified throughthe risk assessments conducted in fiscal 2022. We will continue to seek guidance from experts and evaluate the effectiveness of measures implemented.

Low wages●

	Respect for Human Rights Throughout
the Value Chain

Child labor●

Responsible Procurement

Harassment●●

Quality and Customer Satisfaction

Occupational health and safety●●

Social Contribution Activities

Violation of migrant worker rights●●

Social Data

Human rights issues in high-riskareas (conflict areas)●●

Activities in 2022
Based on the results of the Survey of forced labor andviolations of the rights of migrant workers that wereidentified as priority risks in fiscal 2021, Hitachi implemented measures during fiscal 2021 at most opera●●

tional sites. We also conducted additional surveys infiscal 2022, confirming that measures at certain sites
had not yet been addressed. We will utilize our Groupwide experience in addressing forced labor and migrant
worker rights violations as priority issues to update

Activities in 2022

Guidance Sessions

In fiscal 2022, Hitachi focused on human

No. ofsessionsrights risk assessment in the HRDD process.
With guidance from external experts at Shift, asessions for BUs and major Group compa-

Identify targets for detailed risk
assessment

2

Identify and prioritize potential
risks in identified areas

Prioritize based on risk identification, severity, and likelihood of
occurrence3

Consider countermeasures forhigh priority, salient risks

Formulate action plan proposals

4

Reflect on the risk assessment
process

Learn and share insights andissuesattended these guidance sessions to deepen
understanding of the human rights risk

Agenda at Each BU and
Major Group Company

Identify areas where humanrights risks are likely to exist

nies. A total of 163 participants from 5 BUs,
11 Group companies, and R&D divisions

Agenda1human rights NPO based in the United States,
we conducted a total of four HRDD guidance

guidelines, which includes examples of problems we

assessment process.

identified and effective measures. We will continue to
use the guidelines to assess the actual situation andformulate measures at each BU and Group company.

❹ Communicate
We disclose information on initiatives concerning respect forhuman rights, including HRDD, through our Sustainability
Report, websites, and other means. We also strive to deepen
an understanding of Hitachi initiatives through appropriate
communication in response to questions, observations, andthe like from investors, ESG evaluation organizations, NGOs,
and media outlets. In addition, we incorporate opinions fromboth inside and outside our organization when considering
future measures.

Note: Hitachi normally refers to suppliers (including vendors or providers) as procurement partners who build business together on an equal footing.

Introduction

SocialHuman CapitalManagement

Social Innovation

Environmental

SocialGovernanceEngage Stakeholders

secondary and other procurement partners, and how to

Hitachi participated in the Business and Human Rights

respond to human rights-related laws and regulations. We will

Academy: Human Rights Due Diligence Training for Japaneseconsider improving our human rights efforts based on the

Companies organized by the United Nations Development

feedback we received.

Assurance

Hitachi Sustainability Report 2023

106

Encouraging Procurement Partners to
Conduct Activities
Activities

GRI 408-1/409-1

Diversity, Equity and Inclusion

Programme (UNDP) in fiscal 2022. We gained a better under-

Human Rights

standing of this issue through presentations by experts from

Roadmap for the Future

supply chain, Hitachi includes the Hitachi Group Human

Japan and outside Japan regarding how Japanese compa-

By the end of fiscal 2023, Hitachi plans to complete human

Rights Policy in the Hitachi Group Sustainable Procurementnies and business partners should respond to human rights

rights risk assessments across all BUs (10 BUs) and major

Guidelines for our procurement partners. We encourage anrisks. During individual guidance sessions, the UNDP, over-Group companies in areas identified as high-risk. At the sameunderstanding of the Hitachi policy to strengthen respect forseas business and human rights advisory firms, and lawyers

time, we will implement HRDD processes at all BUs and major

human rights and strive to ensure that our approach is put

provided suggestions on improving our human rights policy,

Group companies by the end of fiscal 2024 that include inte-

into practice. Moreover, the guidelines make it clear that childQuality and Customer Satisfaction

how to implement HRDD for companies working across a

grating and acting on countermeasures, tracking the effective-

labor and forced labor must be eliminated. We ensure toSocial Contribution Activities

wide range of business areas, developing HRDD forness of countermeasures, and communicating outcomes.

raise awareness for human rights and engagement with pro-

Executive Summary

	Respect for Human Rights Throughout
the Value Chain
Responsible Procurement

To deepen respect for human rights throughout our entire

curement partners in our supply chain by efforts including

Social Data

Sustainability Procurement Seminars in various regions.

Implementation Status of Recent Major HRDD

In fiscal 2022, we utilized EcoVadis*1, a third-party evaluInitiatives

FY2020Established the HRDD Promotion Secretariat. Prepared and deployed a survey concerning priority risks common to the Hitachi Group(forced labor and violations of the rights of migrant workers) within the Group with the support of the NGO The Global Alliance for
Sustainable Supply Chain (ASSC). Created our Human Rights Risk Management Implementation Manual. This manual incorporated Shift’s
advice on consistency with the UN Guiding Principles on Business and Human Rights and explanations of each step in HRDD.
Implemented improvement measures for grievance mechanisms, including the integration with the Hitachi Global Compliance Hotline.

FY2021

Implemented countermeasures (provided corrective guidance, held workshops, published countermeasure consideration guide, etc.) at each
BU and Group company based on the fiscal 2020 survey to address Group common priority risks.

FY2022BUs and major Group companies conducted HRDD, and we held a total of four guidance sessions with Shift to assess human rights risks.

Initiatives to Prevent Child Labor and Forced Labor
Activities

To prevent child labor, Hitachi reviews official documents tomethods to inform employees that, in accordance with the UN

confirm that the age of an employee does not constitute child

Guiding Principles on Business and Human Rights, compa-

labor when he or she is hired.

nies have a responsibility to respect the rights of their workers

Our Business and Human Rights e-learning course andother awareness-raising materials offer case studies and otheras well as those of their procurement partners with respect tochild labor and forced labor.

Note: Hitachi normally refers to suppliers (including vendors or providers) as procurement partners who build business together on an equal footing.

ation platform, to assess and monitor our sustainability performance relating to human rights, including efforts toaddress forced labor and child labor. This assessment
involved gathering written survey to understand the actual
situation on the ground. We also conducted sustainability
audits, including labor and human rights, in reference toresponses to our written survey. We explained to our procurement partners the issues identified during the audits andrequested that they make improvements.
*1 EcoVadis: A sustainability assessment service platform that evaluates companies in the four areas of the environment, labor and human rights, ethics, andsustainable procurement.

P.110 Sustainable Procurement

Introduction

SocialManagement

Social Innovation

Environmental

SocialGovernance

Human Rights Education and Raising Awareness Among Employees and Executive Officers
Training

Human Capital

Assurance

Hitachi Sustainability Report 2023

107

Initiatives to Promote Broad-Based Black
Economic Empowerment (B-BBEE) in
South Africa

In accordance with the Hitachi Group Human Rights Policy,of April 2023. In addition, we conduct various awareness

Diversity, Equity and Inclusion

Hitachi familiarizes Hitachi Group executives and all employ-

initiatives that include onboarding training directed at new

Human Rights

ees with human rights through a human rights message on

hires, training by job positions, and training for employees

As Hitachi conducts business in South Africa, we pursue

the importance of respect for human rights from the President

transferred abroad. In this way and others, we strive to convey

activities aligned with the country’s Broad-Based Black& CEO on Human Rights Day, human rights e-learning, andto each employee the significance of respecting human rights

Economic Empowerment (B-BBEE)*1 policy to create employ-other efforts.

in their own work.

ment and economic development. As of November 2022,

Executive Summary

	Respect for Human Rights Throughout
the Value Chain

Activities

In Japan, we aim for every employee to attend annual

Regional headquarters for Group companies outsidegroup training, lectures, or video-based educational activities

Japan engage in various HRDD awareness initiatives tailored

Quality and Customer Satisfaction

held at each business site or Group company. We began

to local conditions to facilitate regional coordination and sup-Hitachi Energy South Africa is obliged to meet theSocial Contribution Activities

introducing video-based education for managers and others in

port. Examples include HRDD seminars for HRDD personnel

Employment Equity Act (EEA)*2 targets and plans, which are

Social Data

October 2022, designed to encourage correct understanding

in the region, HRDD awareness surveys for regional head-reviewed every three to five years and which require annualof LGBTQIA+ issues and prevent harassment. Approximately

quarters executives, and dialogues between outside experts

progress reporting. The ultimate aim is to ensure that diver-

9,000 employees having taken the video-based education as

and regional headquarters executives.

sity in the workforce, including gender diversity.

Responsible Procurement

Hitachi Energy in Southern Africa achieved level 1 under
B-BBEE.

The company’s training strategy is aligned with the skills
development targets linked to B-BBEE. The company also
Implementation Status of Activities to Raise Awareness of
Human Rights
TargetHitachi Group
executives andall employees

Executive
officers ofHitachi, Ltd.

Details

Number ofparticipants in FY2022

Distributed a human rights
message by President &CEO on Human Rights
Day (every year)

Approximately 238,000
emails sent to executives and employees

Achievements in Fiscal 2022
Every year, Hitachi, Ltd. provides human rights training
to executive officers. During fiscal 2022 and the first halfof fiscal 2023, approximately 90 participants attended
workshops for executive-level officers (executives andcorporate officers) on the topic of creating inclusive
organizations in which employees from diverse back-E-learning course on
business and humanrights (provided in 15
languages, taken about
once every three years)

Approximately 169,000
people completed thecourseLecture on human rights
by an outside expert(held annually)

Attended by approximately 90 executive
officers and Board
members

grounds have equal opportunities to flourish.

invests in its current employees in line with diversity and equity
to enhance performance and promotability of internal talent.
Every year, Hitachi Energy South Africa hires graduates andtrainees with Historically Disadvantaged South Africans(HDSA) backgrounds. Currently, employees with HDSA backgrounds comprise 34% of management/supervisory positions
at Hitachi Energy South Africa.
*1 B-BBEE: Companies and organizations in South Africa are scored on B-BBEE
approaches and contributions, rated on a scale from level 1 (highest) to level 8(lowest), or as non-compliant.
*2 Employment Equity Act (EEA): A South African law that promotes fairness andequal opportunities in the workplace for all employees.