Sustainability Risk ManagementHitachi evaluates and analyzes the state of sustainability initiatives by procurement partners from the viewpoint of risk management. We also visit the manufacturing sites of procurement partners to conduct sustainability audits for the purpose of identification of sustainability risks through the value chain and corrective actions against the risks.
SAQ completed
by procurement partners
approx.
3,000
companies
Sustainability Audits
150companies
(FY 2023)
For the purpose of risk management and engagement with procurement partners, Hitachi evaluates and analyzes the state of sustainability initiatives at procurement partners.
Starting in FY2022, we adopted the EcoVadis third-party evaluation platform for monitoring and evaluating the sustainability performance of our procurement partners. We perform assessments regarding procurement partners who represent a large portion of our procurement and who are important to our business strategy. We confirm sustainability efforts based on a checklist covering four areas: environment, labor and human rights, ethics, and sustainable procurement. In FY2023, we conducted sustainability assessments of approximately 3,000 procurement partners (in 58 countries) across the Hitachi Group.
We use the information obtained from these evaluations to identify companies requiring corrective action, to discuss
and monitor improvement methods, and to select and conduct sustainability audits. We will continue to work with more procurement partners and expand the number of our partners evaluated by EcoVadis assessment.
To promote and ensure sustainable procurement, Hitachi conducts annual sustainability audits by visiting the manufacturing sites of procurement partners.
These audits check the sustainability initiatives of our procurement partners from the perspectives of “labor and human rights”, “health and safety”, “environment” and “ethics”.
From FY2022, we utilize EcoVadis to visualize sustainability risks in our value chain.
By understanding the sustainability risks of each procurement partner through the use of EcoVadis, we build a more transparent process of sustainability audits and corrective actions at procurement partners.
Partners that are audited are chosen based on the results of document surveys and the scale and importance of procurement dealings withHitachi. In FY2023, sustainability audits were conducted on 150 procurement partners. For any matters identified during the audit, we explain the details to our procurement partners. In particular, when high-risk matters are identified, we ask our procurement partners to take corrective action, including identifying the cause of the occurrence and formulating an improvement plan. After which, we continue to provide guidance and monitor improvements.
Going forward, Hitachi will continue to expand its sustainability initiatives and reduce sustainability risks in the value chain by giving training tosupport improvements and conducting follow-up audits in-person for procurement partners who are deemed to be at high risk as a result of these audits.
