Revision of Hitachi Group Human Rights Policy

Strengthening Respect for Human Rights Throughout the Value Chain, Based on Changes in the Business Environment and Global Trends

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Tokyo, November 1, 2024 – Hitachi, Ltd. (TSE: 6501, "Hitachi") today announced that it has revised the Hitachi Group Human Rights Policy as part of efforts to strengthen activities aimed at promoting respect for human rights, which is essential in global business and operations.
Hitachi promotes sustainability management, which positions sustainability as the core of business strategy, and has identified material topics as a key management issue. Respect for human rights, one of the key material topics, is the foundation for building trust relationships with stakeholders throughout the world, and must always be protected in order for sustainable growth to be achieved.
Hitachi revised Hitachi Group Human Rights Policy based on an increasingly complex business environment and global trends surrounding human rights. We position this Policy as one of the highest standards of internal company rules, and by ensuring a thorough understanding of this Policy among all executive officers and employees at Hitachi and its Group companies worldwide, we will further accelerate sustainability management that drives business growth.

Background and Summary of Policy Revision

Hitachi established this Policy in 2013, and has worked to strengthen risk management in relation to human rights. In the recent revision, in addition to responding to globalization of the business environment in keeping with a transformation in the business portfolio and to a legal directive*1 that obligates companies to undertake due diligence in human rights, the Policy now reflects the results of human rights due diligence undertaken in the past, including the identification of salient human rights issues. Following are the most significant features of the revision, which were undertaken with the support of third-party human rights specialist organization.

*1: The Corporate Sustainability Due Diligence Directive (CSDDD), enacted by the European Union in July 2024, etc.

Clarification of Commitments
The original Policy clarified the international standards to which Hitachi is committed. The revised policy expands on this description, clarifying that Hitachi fulfills its responsibilities in respecting all internationally-recognized human rights, as enshrined in the International Bill of Human Rights, and set out in the ILO*2 Declaration on Fundamental Principles and Rights at Work, the UN Guiding Principles on Business and Human Rights, the OECD*3 Guidelines for Multinational Enterprises on Responsible Business Conduct, and the Ten Principles of the UN Global Compact.
Identifying Salient Human Rights Issues
Through repeated dialogues with Group companies and third-party human rights specialist organization, Hitachi identified 6 salient human rights issues that present the highest risks to the Hitachi Group: forced labor (including violations of the rights of immigrant workers), child labor, harassment, discrimination, lack of health and safety, and violations of the freedom of association. Moving forward, we will strengthen activities aimed to mitigate human rights risks.
Detailing Human Rights Due Diligence Processes
In its original Policy, Hitachi declared that it would develop and implement human rights due diligence processes. In keeping with that declaration, we have promoted human rights due diligence while gradually expanding on the scope of these processes. In the revision, we have included details of the processes based on that experience.

*2: ILO: International Labour Organization
*3: OECD: Organisation for Economic Co-operation and Development

By requesting that various business partners linked through business activities demonstrate an understanding of this Policy, and by appropriately encouraging compliance, Hitachi will fulfill its responsibility to respect human rights throughout the entire value chain, and will strengthen activities aimed at realizing a sustainable society.

About Hitachi's Sustainability Management

Hitachi practices sustainability management, which positions sustainability as the core of business strategy, and has undertaken activities aimed at realizing a sustainable society through the Social Innovation Business. Hitachi has identified 6 material topics and 15 sub-material topics that were clarified through an analysis of risks and opportunities from a sustainability perspective as well as feedback from stakeholders, and has selected "Respect for Human Rights" as one of these. For further information, please refer to the sustainability report at https://www.hitachi.com/en/sustainability/download/.

About Hitachi, Ltd.

Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of "Digital Systems & Services" – supporting our customers' digital transformation; "Green Energy & Mobility" – contributing to a decarbonized society through energy and railway systems, and "Connective Industries" – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company's revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.

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