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Hitachi

Procurement

Sustainable Procurement

Hitachi Group attaches great importance to conduct sustainable business (ESG) for increasing the values of social, environmental, and economic. In its value chains, we also believe that developing our business with sustainability will lead to prosperity for suppliers and Hitachi Group. Amidst risks increase as business globalizes, to proactively avoid risks as much as possible and become a risk inherent supply chain, we are taking steps to reinforce risk identification and management. In addition, we are addressing the sustainable procurement initiatives with suppliers to increase the social, environmental, and economic values.

1. Hitachi Group Supplier Codes of Conduct

In July 2021, Hitachi Group established “Hitachi Group Sustainable Procurement Guidelines”. This is the revised version of ‘’Hitachi Group CSR Procurement Guidelines (3rd Edition)”. These revised Guidelines were established based on the Hitachi Group's efforts for sustainability including the policies, initiatives, and widely recognized latest global standards. This guideline sets out a code of conduct to be observed by suppliers and Hitachi Group's policies and code of conduct. In addition, Hitachi Group also has published “Green Procurement Guidelines (Ver.11.1)” as the revised versions of “Green Procurement Guidelines (Ver.11.0)” in July 2021.
The purpose of those revisions is for suppliers to easily understand Hitachi Group policies and requests. We have integrated the Policies and Code of Conduct into “Hitachi Group Sustainable Procurement Guidelines” and separately publish the manual as “Green Procurement Guidelines (Ver.11.1)”. Hitachi has distributed them to our suppliers and requested to be carefully read, in order to follow these Guidelines. These Guidelines are expected to be fully implemented by all our suppliers.

2. Green Procurement

As part of the Hitachi Group green procurement* initiative, we share our ideas on ecofriendly businesses with suppliers and engage in them together.
* Green procurement: A system to procure parts and materials with reduced environmental load from suppliers engaged in environmental preservation.

In 1998, Hitachi Group was the first in the industry to compile its fundamental policy regarding procurement of environmentally friendly parts and products. We have required suppliers to follow the “Green Procurement Guidelines” and engaged in green procurement together. In July 2021, Hitachi Group has published “Hitachi Group Sustainable Procurement Guidelines” and “Green Procurement Guidelines (Ver.11.1)” as the revised versions of ‘’Hitachi Group CSR Procurement Guidelines (3rd Edition)” and “Green Procurement Guidelines (Ver.11.0)”.

Regarding the Green Procurement, we demand our suppliers to ensure compliance with the Guidelines, and deliver items relating to supplier environmental preservation activities (establishment of environmental management systems, recommended certification standards, etc.) and/or items with reduced environmental load (resources saving, energy saving, recycling, proper management of chemical substances in products, dissemination of suitable information, etc.).

Green Procurement system

Green Procurement system

3. Initiative for Responsible Supply Chain of Minerals

In FY 2013, Hitachi Group has announced its “Conflict Minerals Procurement Policy”, declaring its stance and commitments regarding conflict minerals. The policy was revised in FY 2016 to explicitly lay out measures for responsible procurement. In July 2021, this policy was revised again to further establish a sustainable and responsible supply chain.

The Hitachi Group is committed to responsible procurement activities as its policy to ensure that the procurement of materials containing conflict minerals (tin, tantalum, tungsten, and gold) and cobalt does not encourage the activities of armed groups, human rights violations including child labor, corruption, and environmental destruction in the conflict and high-risk regions.

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