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Materiality 4 Establishing a Sound Management Foundation


Basic Ideas and Visions

Establishing a sound management foundation is essential for the sustainable growth of a company. In order to increase corporate value over the long-term, Hitachi High-Tech Group will strive to improve the effectiveness of corporate governance and aim to be a company that is trusted and needed by society.

Action Targets

1. Realize sound governance

We will strive to improve the effectiveness of corporate governance by bolstering the effectiveness of the Board of Directors and strengthening and enhancing internal controls. In addition, we will endeavor to achieve sustainable growth and increase society’s trust in us by implementing initiatives such as compliance risk prevention measures and conducting education, and fostering a corporate culture that is open and compliant with laws.

2. Ensure product safety

Providing customers with safety and peace of mind is a corporate social responsibility. By providing products that comply with laws and regulations and by working to eliminate product accidents, the Group aims to provide highly-safe products and thereby enhance competitiveness and increase the level of trust from society.

3. Realize a CSR-based supply chain

By encouraging business operations with a strong awareness of corporate social responsibility, not only for the Group, but also for our partners and the entire supply chain, we aim to reduce environmental and human rights risks in the supply chain.

Action Plan

Details of Action Plan

Content of Initiative

Action Targets 1 Realize sound governance

1 Initiatives to improve corporate governance, which is the foundation of the Hitachi High-Tech Group’s fair business activities

FY2022 Results

Enhancing governance and compliance as a Group

  • As a member of the Hitachi Group, we are aligned with Group efforts to realize appropriate and prompt business execution. We have worked to revise decision-making standards and rules constituting the framework for important decisions affecting Hitachi, Ltd., and Hitachi High-Tech Group companies, as well as clarified the division of roles and decision-making processes for Hitachi, Ltd., and Hitachi High-Tech Group companies.
  • In March 2023, we revised the Hitachi Group Code of Ethics and Business Conduct, which are guidelines for ethical behavior and decision-making shared by all executives and employees of the Hitachi Group. While maintaining a strong awareness of the Hitachi Group identity, we revised the content and format in line with global standards, and have made the guidelines clear and easy to understand so that it serves as a foundation for ethical behavior by all executives and employees.
  • We continuously provide compliance education to all executives and employees, from new hires to senior management, to promote understanding of the Hitachi Group compliance approach and systems, as well as internal reporting and other systems. In FY2022, in line with Hitachi Group-wide policies, we provided interactive education that included case studies to further raise compliance awareness in each workplace.
  • The Group established a global whistleblower hotline shared by all Hitachi Group companies to quickly detect and respond to signs of legal and regulatory infractions or misconduct in an attempt to enhance the Group’s self-correcting function. In FY2022, mainly in response to legal revisions in Japan, we developed an operational framework that places even greater emphasis on whistleblower protections than before, including clarification and dissemination of the confidentiality obligations of employees engaged in responding to whistleblowers. This enables executives and employees to seek consultations with peace of mind.

Initiatives for FY2024

As a member of the Hitachi Group, we are working to develop and enhance our governance and compliance frameworks with an awareness of global standards

In line with the global expansion of Hitachi High-Tech Group Business, business risks faced by the Group, including compliance risks, are becoming increasingly diverse and complex. We will further enhance our governance and compliance frameworks to properly manage these risks and respond to them in a timely manner.

Action Targets 2 Ensure product safety

2 Initiatives to ensure product safety

FY2022 Results

Implementing various measures to ensure product safety

  • To improve product quality and reduce the risk of product safety accidents, we implemented product safety audits at design and manufacturing sites and Group companies to identify issues and provide guidance on improvements. In confirming the current status of product safety in line with these diagnostic items, we check relevant laws and regulations in destination countries, product safety design procedures, risk assessments, and other references to identify issues and provide guidance in areas that need improvement. We also conducted quality Compliance Audits at overseas sites.
  • We attempt to raise awareness among customers regarding long-term use products with expired warranties. These audits and reminders are measures aimed at preventing accidents during product use and ensuring safe product use, even after warranty periods have expired.
  • We also accelerated legal measures by maintaining an awareness regarding revisions and enforcement of relevant laws and regulations, and sharing this information with relevant internal departments.
  • To continuously improve the skills of engineers in design, quality assurance, and other product engineering divisions, twice each year we hold product safety-related lectures presented by outside speakers. In FY2022, lectures were held remotely from each site using an online conference system.
  • Serious product safety accidents: 0

Action Targets 3 Realize a CSR-based supply chain

3 Promote business operations throughout the Hitachi High-Tech Group’s supply chain with a strong awareness of CSR

FY2022 Results

Implementing efforts to reduce risks related to the environment, human rights, and other issues in order to realize a sustainable supply chain

  • We regularly communicate and share information with our partners to promote understanding of our CSR initiatives and raise awareness of environmental and human rights risks. At CSR briefings, we request cooperation in reducing CO² emissions to realize a decarbonized society,and also share information on legal revisions regarding chemical substances contained in raw materials. A total of 600 procurement partners (1,300 people) participated in these briefings.
  • The Hitachi High-Tech Group Human Rights Policy clearly stipulates that the Group will conduct human rights due diligence*1 based on the United Nations Guiding Principles on Business and Human Rights. Based on this policy, we respect the human rights of all Group employees and all stakeholders with whom we interact through Group business activities, products, and services. When commencing new business transactions, we strive to reduce risks by requesting self-audits for potential human rights violations in accordance with the Hitachi Group Sustainable Procurement Guidelines. In FY2022, the Hitachi Group used EcoVadis,*2 a third-party evaluation platform, to assess and monitor sustainability performance related to human rights, including efforts to address forced labor and child labor, and to ascertain and document actual business conditions. Using responses to written surveys as a reference, we also conduct sustainability audits that include labor and human rights, explain findings identified through audits to our procurement partners, and request that they make improvements. Going forward, we will formulate and implement measures to promote an understanding of actual supply chain conditions related to aspects other than human rights.
  • In addition to requesting that procurement partners reduce their CO² emissions, we selected advanced environmental partner companies from among numerous procurement partners and began working with them to find new ways of reducing CO² emissions. Specifically, we confirmed company achievements regarding CO² emissions and CO² reduction plan details, and commenced support of these companies in their efforts to reduce emissions.

*1 Human rights due diligence: Involves identifying, assessing, and responding to business-related human rights impacts, taking measures to prevent, mitigate, and remedy negative impacts, then continuously verifying and disclosing the effectiveness of these measures.

*2 EcoVadis: Sustainability assessment service platform facilitating comprehensive evaluations in four areas: Environment, labor and human rights, ethics, and sustainable materials procurement.

Initiatives for FY2024

Aiming to expand advanced environmental partner company initiatives

We will strive to increase the number of advanced environmental partners (partner companies promoting environmental activities through environmental management systems, and other policies) by encouraging other procurement partners to adopt initiatives promoted by companies selected as advanced environmental partners.Specifically, we will prepare examples of initiatives by advanced environmental partners and create an FAQ, both of which will be made available to the public. As collaborations with all suppliers are essential to achieve carbon neutrality, in 2023, we will promote the creation of an environment facilitating carbon neutrality throughout the supply chain. For details, please refer to Materiality 1, Activity Plan 5.


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