Creating impact through responsible leadership
Good governance is essential to sustainability and at the heart of everything we do. Our governance structure ensures clear oversight and transparency as we pursue our strategic ambitions and goals.
Framework for promoting sustainability
Sustainability sits at the heart of how Hitachi operates as a company. Focused on delivering long-term value for our stakeholders, oversight and delivery of Hitachi’s sustainability strategy ultimately sits with senior leadership.
A clear organizational framework for delivery of our strategy and targets is the mechanism through which we enact our commitment to transparency and accountability – to our employees, shareholders and the communities in which we operate.
Learn more on Hitachi’s approach to corporate governance here:
Strengthening performance and impact
We are transforming our company as part of our mission to contribute to society and create a positive future for all.
A key part of this is evolving our approach to governance to ensure it is helping to drive sustainability performance across the company. For example, we are:
Linking executive pay to sustainability performance
In 2023, Hitachi amended the executive compensation system to link pay more strongly to sustainability performance. Delivering sustainability targets determines a portion of short-term and medium- to long-term compensation (20% and 10% respectively) for senior management.
Promoting sustainability issues within the business agenda
Through Sustainability Promotion Meetings, chaired by our Chief Sustainability Officer, key initiatives and measures are discussed and shared across the Hitachi group to enhance our sustainability management.
Practicing responsible procurement
Guided by the Hitachi Group Sustainable Procurement Code, we work with existing and prospective procurement partners to identify and mitigate risks in key areas including: labor, health and safety, environment, business ethics and management systems.
Reporting and Policies
Our reporting is focused on the material sustainability issues that matter to our stakeholders.
Details of our reports, policies and ESG data can be found in our sustainability report.
Business Ethics
Hitachi is committed to responsible business practices.
The Hitachi Group Code of Ethics and Business Conduct sets high standards for business practices and compliance, and spells out decision-making procedures and actions for all Hitachi Group executives and employees.
Tax compliance
As a responsible business, we manage our global tax responsibilities in keeping with our mission and values. We are committed to complying with the tax laws and regulations in all markets in which we operate. We paid 154 billion yen (about US$1 billion) in income taxes for the fiscal year ended March 31, 2024.
Human rights
Hitachi has established comprehensive and robust policies to respect the human rights of workers throughout our value chain. This includes our Human Rights Risk Management Implementation Manual, produced in accordance with the UN Guiding Principles on Business and Human Rights. Further details can be found on our Social page.
Conflict minerals procurement
We investigate and respond to issues relating to conflict minerals across our business to minimize human-rights risk in the procurement of minerals. This compliments Hitachi’s Group policy for Responsible Supply Chain of Minerals.
Working with integrity
Hitachi is committed to creating an environment in which every employee feels safe and can perform at their best.
Applying ethical standards in our day-to-day work
The Hitachi Group Chief Compliance Officer (CCO) leads the One Hitachi Compliance Program, a program for global compliance initiatives. We also conduct annual training for all employees to build understanding of our code of conduct and how they apply day-to-day.
Understanding and addressing risk
Hitachi conducts comprehensive ethics and compliance risk assessments for all Group companies every three years. We also regularly review and identify concerns with any third parties with whom Hitachi does business.
Encouraging openness
We are committed to ensuring our employees feel safe to speak up and share concerns without fear of retaliation. We have established the Hitachi Global Compliance Hotline as a grievance mechanism available to Hitachi Group employees, business and procurement partners, and all other global stakeholders in approximately 50 languages.
