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Hitachi

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Diversity and Inclusion

Toward Achieving Diversity and Inclusion

At Hitachi, Diversity and Inclusion matter as they are a crucial component to build innovation, growth, and a longterm sustainable business. The Statement on Diversity and Inclusion was created to demonstrate our commitment.

Statement on Diversity and Inclusion

Diversity and Inclusion Open Our Future

Diversity is the wellspring of our innovation and our growth engine. Hitachi regards personal differences such as gender, nationality, race, religion, background, age, disability, and sexual orientation, as well as other differences as facets of people’s individuality. By respecting our employees’ individualities and positioning them as an advantage, Hitachi frames its diversity and inclusion as conducive to both the individual’s and the company’s sustainable growth. With a diverse workforce, strong teamwork, and broad experience in the global market we will meet our customers’ needs.

Web Conference on Diversity & Inclusion Strategy

On 20th Apr. 2021, Hitachi hold a Web Conference on D&I strategy to media.
Please refer to Web Conference on Diversity & Inclusion Strategy

Diversity and Inclusion Integrated with Business Strategy

Hitachi has positioned Diversity and Inclusion as part of its management strategy, and embraces all aspects of Diversity included in the Statement on Diversity and Inclusion. To further accelerate activities at a global level, it is transitioning to integrate Diversity and Inclusion with each business strategy. To exhibit strong commitment by the management, the Chief Diversity and Inclusion Officer (CDIO) position was established in April 2020, with Lorena Dellagiovanna appointed to lead Diversity and Inclusion globally across the whole Hitachi Group.

As a first step of this transition, in fiscal 2020, we implemented gap data analysis, external assessments, and interviewed business/function leaders to understand our current situation. Based on the analysis, we determined the Diversity and Inclusion global strategy for the medium to long term.
In addition, as part of the strategy, Diversity and Inclusion targets were set by business units, corporate functions, and Group companies. The procedure to define the targets included individual meetings with top management and the CDIO, where discussions focused on how Diversity and Inclusion can address issues in the business as Hitachi operates in a variety of industries and markets.

Diversity Management Promotion Framework

To achieve our aspirations, Hitachi has created a structure to lead global and regional actions.
At a global level, Sustainability Strategy Meetings (Diversity and Inclusion sessions) and the Diversity and Inclusion Council are held every six months to promote the Group's policies and initiatives. From fiscal 2021, Diversity and Inclusion sessions were added to the Sustainability Strategy Meetings with the aim of determining the direction, defining the priorities on initiatives and investments, and sharing experiences within the top management of Group and global companies. The Diversity and Inclusion Council focuses on aligning itself with the global Diversity and Inclusion strategy and conducts discussions on specific actions in partnership with the HR departments of Group companies globally.

Regional Diversity and Inclusion lead positions are created to drive initiatives aligned to local business strategies. Lastly, under the CDIO, the Diversity and Inclusion Development Center supports implementation of global and regional initiatives, and by communicating the Diversity and Inclusion strategy globally it creates value for internal and external stakeholders.
We also hold regular meetings to exchange opinions with labor unions.

Hitachi Diversity Structure
Hitachi Diversity Structure

Diversity and Inclusion Targets

With the aim of increasing diversity among executive officers and executive and corporate officers and managers, Hitachi has created two key performance indicators (KPIs).
The goal set in November 2017 was to increase the ratio of female executives and corporate officers from 2.5% to 10% by fiscal 2020, and for non-Japanese executives and corporate officers to raise it from 3.5% to 10% in the same period. This goal was achieved in April 2021.

Another goal was to increase the number of female managers in Hitachi, Ltd. to 800 by fiscal 2020 (double the number at the end of fiscal 2012) which was achieved in October 2020, six months earlier than the target completion date.
For the next step, we have decided on a new target, based on the Diversity and Inclusion global strategy in April 2021, to achieve 30% for both female and non-Japanese executive officers and corporate officers by fiscal 2030. As a milestone, we have set target of 15% by fiscal 2024.
With our new goals, we will accelerate our global initiatives.

Ratio and Number of Female Managers (Hitachi, Ltd.)
Ratio and Number of Female Managers (Hitachi, Ltd.)

Note
Figures include section manager–level employees and above.
*1
Since fiscal 2017, “Female managers” has included managerial employees dispatched from Hitachi, Ltd. to other companies and those accepted from other companies by Hitachi, Ltd. Earlier figures include regular managerial employees dispatched to other companies but exclude those accepted from other companies.
*2
The reason for the decline between October 2020 to the end of fiscal 2020 was due to business transfers. Independent assurance was provided on the percentage and number of female managers for end of fiscal 2020 (as of March 31, 2021).

Ratio of Female and Non-Japanese Executive and Corporate Officers (Hitachi, Ltd.)
Ratio of Female and Non-Japanese Executive and Corporate Officers (Hitachi, Ltd.)

Ratio and Numbers of Male/Female and Japanese/ Non-Japanese Directors (Hitachi, Ltd., as of June 2021)
Item Total Male Female Japanese Non-Japanese
Directors Number 13 11 2 7 6
% 100 84.6 15.4 53.8 46.2
Ratio of female executive and corporate officers 10.1%
Ratio of non-Japanese executive and corporate officers 11.6%

Diversity and Inclusion Strategy Execution

In fiscal 2020, so as to understand the issues throughout Hitachi and to facilitate understanding diversity and inclusion even more, we have increased our activities such as meetings with top management, active communication with employees through events, and we have joined The Valuable 500―an international movement to promote the advancement of people with disabilities. We will continuously implement actions both on global and regional priorities.

For fiscal 2021, at a global level, the Diversity and Inclusion global strategy is based on the following five pillars. Progress in implementing these five pillars shall be reported on and reviewed in the global structure. Group companies are also advancing diversity management in accordance with their challenges and circumstances at the global level.

Diversity and Inclusion Actions Based on the Following Five Pillars
Pillars Fiscal 2024 target Fiscal 2021 actions
Overall
  • Strategic metrics of Diversity and Inclusion are monitored and disclosed
  • Set policies, guidelines, and strategic metrics (KPIs), base line analysis and continuous data gathering
  • Strengthen Diversity and Inclusion structure
(1) Leadership Commitment
  • Vocal leadership team commitments with tracking and accountability globally
  • Communication strategy and campaigns to be defined based on priorities showing leadership commitment
(2) Culture
  • Inclusive culture is cultivated: Everyone is recognized to have a fair opportunity, and freedom to express their own ideas and opinions
  • Renewal of internal/external communication globally
  • Review companywide training/events
  • Accelerate talent exchange globally
(3) Recruitment
  • Targeted recruiting initiatives and array of channels for diverse communities globally
  • Set a Group-wide policy to commit to diversity and inclusion in recruiting
  • Build scenarios on the speed of change in 3–5 years, and put elements of Diversity and Inclusion in recruiting activities tailored to the region and business
(4) Retention
  • Differentiated benefits companywide and a robust network of employee resource groups (ERGs)*
    *
    Employee-led groups, which are based on shared characteristics and experience
  • Support informal activities of employees including ERGs to expand their networks, broaden their horizons, and have voices advocate inclusivity
  • Review benefits packages and policies
(5) Advancement
  • Diverse talent in decision-level management
    -
    Achieve the new target (15% of directors are female or non-Japanese ) for executive officers and corporate officers in Hitachi as the milestone toward 2030
  • CDIO’s direct communication with future leaders (1 on 1 mentoring, group sessions, events, etc.) and Global Leadership Development activities (identify and develop talented employees for management positions within the Hitachi Group globally)

Female Empowerment

To ensure an environment where women are able to perform at their best in all layers of the organization, the CDIO participated in Talent Committee sessions and had positive discussions about aspiring, talented future employees.
Based on actions determined at the Diversity and Inclusion global strategy and Talent Committee sessions, the CDIO is mentoring female leaders and leader candidates globally.

In addition, the annual Global Women’s Summit (in fiscal 2020 it was cancelled due to COVID-19) has been held since fiscal 2016 to realize gender equality in the Hitachi Group as well as other dedicated events for female employees that are held in partnership with the business units to encourage all female employees.
Activities related to the empowerment of women are also being developed globally in Group companies, and we are further strengthening the global structure of the Diversity and Inclusion program.

Examples of actions being taken in regions and Group companies include Hitachi Astemo establishing a global organization with the appointment of a global Diversity and Inclusion manager under the leadership of its CEO. With one of the key focus areas being increasing diversity across the entire organization, aspects of Diversity and Inclusion have been integrated in various HR processes including acquiring and managing talented employees with an increased focus on gender diversity and having a variety of different nationalities. All of the initiatives are embedded in a cohesive Diversity and Inclusion statement to build and leverage an inclusive work environment and fully embrace diversity.

Hitachi ABB Power Grids (HAPG) launched Diversity 360 as a company strategic priority to ensure diversity and inclusion penetrates all aspects of management practice throughout the Group. One of the four work streams is “Female acceleration” with a management commitment to increase female representation at three levels of the organization; senior leadership positions, middle managers, and early career hires. The target is supported by a robust and comprehensive plan including Employee Value Proposition (EVP) to reflect the aspiration to hire employees with different ways of thinking, and the Female Talent Development Program in pipeline planning and structural integration to incorporate Diversity and Inclusion into all policies related to the employee lifecycle such as equal pay and flexible working.

In Japan, actions within the group are being implemented such as Hitachi Japan Group Women’s Career Success Survey which measures the progress of female inclusion activities; it was launched in 2013 and is held every two years. Alongside these efforts, we are implementing actions such as Hitachi Japan Group Women Leaders’ Meeting held every two years to support female employees at the supervisory level and above and career development training for early career female employees. Hitachi, Ltd. provides HR support and communicates with employees to prevent employees having to leave the workforce due to child/nursing care issues (for details see the Work Life Balance page). In addition, we are working to change the mindset of managers and male staff regarding gender parity and examining our working style as a whole with the aim of transforming our corporate culture. Employee compensation is set according to each individual’s role and achievements, with no divisions or differences based on gender or age.

Ratio and Number of Female Managers (Hitachi Group)
Percentage and Number of Female Managers (Hitachi Group)

Note
The Beginning in fiscal 2019, the scope of reporting shifted from full-time, regular female managers, excluding those dispatched to non-Group companies, to all female managers including those dispatched from Hitachi, Ltd. to other companies; figures for previous years have been adjusted to match this new scope. Rising numbers of female managers in part reflect improved coverage of our human capital databases.
Basic Salary and Total Individual Compensation for Female and Male Managers Fiscal 2020 Hitachi, Ltd.
Basic Salary Total Individual Compensation
100:104 100:106
Note
Benefits for male and female employees are identical. Differences between male and female employees’ salary and compensation are due to age distribution, grade distribution, etc.

Disability Inclusion

Hitachi Group joined The Valuable 500, a global CEO community launched at the World Economic Forum to realize the inclusion of people with disabilities through business leadership and opportunities. By joining this worldwide movement, Hitachi accelerates the inclusion of people with disabilities internally and externally.
Disability inclusion actions in regional and Group companies are implemented in compliance with the local laws. In the case of regional Group companies, Hitachi Europe employees and contractors must complete training on “equality and diversity” as part of their induction plan, since disability inclusion is legally protected. Through the training, employees will be able to understand how to contribute to creating an inclusive workplace for all.

Hitachi ABB Power Grids ensured it aligned disability inclusion in the HR processes and policies within the group. This includes equal employment opportunity policies, induction programs for on boarding as well as buddy programs as part of retention and support. In addition, Hitachi ABB Power Grids is currently making its website more accessible and will continue to make the application process better for people with disabilities.

Hitachi ABB Power Grids has also ensured its recruiting policy is aligned with requirements by conducting a review to create an inclusive workplace by examining things such as the office infrastructure. In Japan, Hitachi, Ltd. and domestic Group companies have actively implemented the recruitment of people with disabilities such as using online recruiting fairs, partnerships with special subsidiaries, expanded their job capabilities, and responded to the growing needs of working from home such as with the digitalization of documents. As a result, as of June 2021, the employment ratio of people with disabilities was 2.37% at Hitachi, Ltd.*1 and 2.42% for the entire Group in Japan. Both of these figures exceed Japan’s legally required employment ratio of 2.3 %.

As of April 1, 2020, “Hitachi You and I,” *2 which was established by three special subsidiaries, created the Recruitment Retention Support Division. The Division ensures support for the long-term employment of the disabled and develops an environment where the job satisfaction of employees is high. In addition, we have implemented “Working Together with the Disabled,” an e-learning course, that 168,000 people out of 176,000 (attendance rate 95%) attended for the domestic Hitachi Group and which aims to introduce non-discrimination policies and accommodation designed for the disabled.

*1
Includes one special subsidiary and 23 related Group companies.
*2
The new company’s name is Hitachi You and I Co. Ltd. The company employs around 450 people, of which around 380 have disabilities.

Employment of People with Disabilities and Employment Ratio (Hitachi, Ltd.)*1
Employment of People with Disabilities and Employment Ratio (Hitachi, Ltd.)

*1
Includes special subsidiaries and related Group companies. (One special subsidiary and 23 related Group companies in fiscal 2021.)
*2
The legally required employment rate was 1.8% up to fiscal 2012, 2.0% between fiscal 2013 and 2017, 2.2% in fiscal 2018 and became 2.3% from fiscal 2021.
Note
・Data compiled on June 1 of each fiscal year.
・The employment ratio is calculated according to methods prescribed in the relevant laws.
Employment ratio of people with disabilities 2.37%

Our approach on B-BBEE in South Africa

As Hitachi expands its business in South Africa, it pursues activities aligned with the country’s Broad-Based Black Economic Empowerment (B-BBEE)*1 policy to create employment and economic development. As of 31 March 2021, Hitachi Construction Machinery Southern Africa has achieved a B-BBEE rating of level 4.

*1
B-BBEE:Companies and organizations in South Africa are scored on their B-BBEE approaches and contributions, and are rated on a scale from level 1 (the highest) to 8, and “non-compliant.”

Work-Life Management

Hitachi goes beyond “work-life balance,” in which employees are simply urged to balance work and private life, to promote “work-life management” which encourages employees to proactively take charge of improving the quality of both their work and private lives. We believe that practicing work-life management will enrich employees’ work and private lives, enhance professionalism, and build personal character, resulting in both individual and organizational growth over the long term. Based on this philosophy, we have established systems to support work-life reforms and a balance between employees’ work and private lives.

Coverage of telecommuting and satellite office work programs Approx.95%

Promoting Work-Life Reform

Hitachi, Ltd. promotes the companywide work-life reform initiative, Hitachi Work-Life Innovation, to develop workstyles allowing talent from diverse backgrounds to work with enthusiasm and demonstrate strong performance.
Today, approximately 95% of all employees take advantage of our telecommuting and satellite office work programs, including managerial-level employees, flex workers, and career-track regular employees who need to balance work with child care, nursing care, or medical treatment. This provides employees with flexibility concerning where and when they work. The programs do not require the applicants to come into the office for a certain amount of time, nor are there any limitations on the number of times for doing so, which allows employees to work from wherever they need to be for child care or nursing care. If posted away from their families, they can work from their family home. We are also rolling out location-free work for managerial-level employees, which allows them to perform their duties from anywhere when approved by the company.

Work-Life Innovation Initiatives at Hitachi, Ltd.
Activity Key components
Top commitment
  • Send message within company
Review of operations and processes
  • Reform administrative operations at headquarters
  • Clarify rules for outgoing email
  • Use support tool designed to optimize meeting durations and participant numbers and improve meeting efficiency
Strengthening of workplace management
  • Increase operational transparency using in-house consultants (experience-oriented approach)
  • Improve attendance management system for compliance rule enforcement
Promotion of time- and location-independent work practices
  • Expand telecommuting program
  • Create environments where internal wireless local area networks (LAN) can be accessed safely
  • Distribute around 30,000 IT tools to support paperless and online meetings
  • Roll out location-independent work for managerial-level employees
  • Expand satellite office network (150 sites as of April 2021)
  • Reform administration by promoting electronic signatures and paperless systems
Companywide promotional tactics
  • Share on Hitachi's intranet site
  • Share best practices by giving awards

Enhancing Work-Life Management Support Systems

Hitachi, Ltd. and certain Group companies in Japan are working to create even more supportive workplaces by introducing and expanding various programs to help employees balance work and family life. We have provided an allowance to support child care and work; launched Hokatsu Concierge child-care matching service, an information-providing service for finding nurseries; and provided a child-care matching service in collaboration with company-led nurseries. Through these kinds of support, we offer an environment where work and parenting can be balanced with peace of mind.

Hitachi regularly conducts employee awareness and internal fact-finding surveys concerning nursing care. Based on the results of these surveys, we are working to enhance measures to help employees balance their work and home nursing care responsibilities. As Japan’s population ages, the number of regular employees facing the challenge of providing nursing care for elderly family members is growing. Consequently, Hitachi has been offering financial support for these employees by establishing new programs such as Work-caregiving balance support points under the Cafeteria Plan. By also holding seminars on how to balance work and nursing care responsibilities, employees receive useful information which transforms their awareness of the worklife balance. This includes learning about the importance of continuing to work while fulfilling nursing care responsibilities along with expert information on how to achieve this balance.

Hitachi has also introduced a service that warmly supports employees dealing with nursing care concerns. In addition to helping employees apply for public programs and find nursing care facilities, the service can also arrange counseling to help employees cope with the emotional challenges.

New Measures in Fiscal 2020

Balancing Work, Child Care and Nursing Care
Measures Main Details and Purpose
Child-care matching service in collaboration with company-led nurseries
(started operation in fiscal 2020)
  • New support measures to promote the balancing of work and child care.
  • Supporting a more balanced approach between work and parenting, we launched a childcare matching service in collaboration with company-led nurseries. This service, created with the help of the Cabinet Office’s support program, enables employees who are looking for a nursery for their children to apply for admission to a company-led nursery, thereby expediting an early return to work for employees on maternity or child-care leave.
Launched Nursing Care Concierge (October 2020)
  • Contact point for obtaining consultation and support regarding nursing care concerns
Expanded the number of people eligible for Workcaregiving balance support points (January 2021)
  • To increase financial support
Established Work-caregiving Balance System Development Support Points (January 2021)
  • To enhance support for creating better home care environments

Work-Life Management Support System at Hitachi, Ltd.
Work-Life Management Support System at Hitachi, Ltd.

Return and Retention Rates After Maternity and Child-Care Leave (Hitachi, Ltd.)
    FY2016 FY2017 FY2018 FY2019 FY2020
Maternity/partner's leave utilization rate (%)
 
Total number of employees who took maternity leave or partner’s maternity leave /Total number of employees with newborn children
Male 24.3 32.7 37.8 38.1 33.8
Female 100.0 100.0 100.0 100.0 100.0
Return rate for maternity/partner's leave recipients (%)
 
Total number of employees not resigning on the day after completing maternity leave or partner’s maternity leave/
Total number of employees who took maternity leave or partner’s maternity leave
Male 100.0 100.0 100.0 100.0 100.0
Female 100.0 100.0 100.0 100.0 99.7
Retention rate for maternity/partner's leave recipients (%)
 
Total number of employees who did not resign within one year after maternity leave or partner’s maternity leave/
Total number of employees who took maternity leave or partner’s maternity leave
Male 98.7 98.4 99.7 96.9 97.7
Female 100.0 99.2 100.0 100.0 99.7
Childcare leave utilization rate (%)
 
Total number of employees who took child-care leave/
Total number of employees with newborn children
Male 1.6 2.2 2.7 4.0 7.3
Female 99.6 86.6 100.0 87.5 74.9
Return rate for childcare leave recipients (%)
 
Total number of employees returning from child-care leave/Total number of employees who planned to return from child-care leave
(Number of employees returning excludes those planned to return and resigned voluntary without returning)
Male 96.7 100.0 94.3 100.0 100.0
Female 97.1 98.5 97.4 97.4 98.9
Retention rate for childcare leave recipients (%)
 
Total number of employees continuously working one year after returning from child-care leave/Total number of employees returning from child-care leave
Male 100.0 96.6 90.9 84.8 71.4
Female 98.6 98.0 99.4 95.5 98.0

In-House Child-Care Centers

Hitachi, Ltd., in collaboration with its labor union and 17 Group companies, has set up in-house child-care facilities with capacity for approximately 70 children in its Yokohama Office as a way to support employees in balancing work with child care.

Support Systems and Measures that Meet Diverse Employee Needs

Hitachi, Ltd. and the Hitachi Group in Japan are working to meet the needs of employees as their lifestyles become more diverse. Through domestic Group-wide lifestyle support programs and measures, we have implemented systems that provide the necessary level of support based on the business environment of each company and the needs of employees. These measures include the following: a Cafeteria Plan program, housing support such as dormitory and family housing and a housing allowance system, allowances for balancing work with child and nursing care, retirement and pension plans, a consolation payment system, an employee stock ownership program, Hitachi Group insurance, a property accumulation promotion system, internal sales, and a Health Insurance Society.

In the past, these lifestyle support programs and measures were only available in principle to regular employees. Based on Japan’s Equal Pay for Equal Work Act that came into effect in 2020, some systems have been updated so that they also cover limited-term contract employees. In addition, for those measures that are unsuitable for limited-term contract employees due to the purpose and nature of the program concerned, we provide support to employees regardless of their employment type. This includes the provision of welfare allowances as an alternative measure.

With regard to retirement benefit programs, Hitachi Group companies in Japan have partially or fully implemented defined benefit corporate pension plans, defined contribution pension plans, and lump-sum retirement allowance plans. These plans respond to the diverse needs of people in old age by providing supplementary benefits in addition to public pensions and play an important role in allowing retired people to live more affluently.

Achievements in Fiscal 2020

In fiscal 2020, the incentive system to encourage regular employee participation in the stock ownership program was changed at Hitachi, Ltd. and some Group companies in Japan. Under the new system, the stock option incentive rate varies according to the degree of the target achievement under the 2021 Mid-term Management Plan and the number of shares already held by the employee concerned. While raising awareness of the benefits of management participation, we are helping employees to accumulate assets over the medium and long term.

Furthermore, as part of its Cafeteria Plan benefits program, Hitachi, Ltd. has been taking special measures during the COVID-19 pandemic. This includes raising funds to support professionals on the healthcare frontlines, while also subsidizing costs incurred to purchase computer equipment such as monitors and Wi-Fi routers, as well as desks, chairs, and other items they may need to work from home.

Initiatives at Regional Headquarters to Create a Good Working Environment

The Statement on Diversity and Inclusion guides Hitachi’s endeavors to create work environments that allow our diverse range of human capital to work with enthusiasm and to support workstyles that are conducive to each employee achieving their full potential. Region-specific policies are also implemented by our regional headquarters.

Hitachi America, Ltd.
Initiatives to promote diversity and inclusion include a mentor program and webinars to share the experiences of employee role models. Of the employees promoted from January to early August 2020, 36% were women and 83% were from minority groups. Nearly 30% of minority employees at Hitachi America hold director or higher positions. New hires during the same span were about one-third women, and approximately half were ethnic minorities.

Hitachi Asia Ltd.
Efforts to make Hitachi Asia the best place to work in Asia include providing equal opportunities for all employees and creating workplaces that foster and retain outstanding human capital. The company is particularly striving to improve team management, which is a key business capability. The focus is on sharing knowledge and skills, enhancing communication and coaching, and promoting the acceptance of diversity to boost employee engagement. It also supports the creation of opportunities for employees to engage in recreation together in order to further enhance communication between employees.

Hitachi (China) Ltd.
Activities are being promoted to strengthen inter-divisional cooperation. A group of mainly younger employees are asked to introduce their division’s work to workers in other divisions to deepen understanding and encourage collaborative creation across divisions. This activity was held four times in fiscal 2020, twice in Beijing and twice in Shanghai, including online sessions and with a total of 63 employees participating. The network built through these activities has contributed to smoother business operations.

Hitachi Europe Ltd.
In addition to Hitachi Insights, which is conducted across the worldwide Hitachi Group, each region of Hitachi Europe separately surveys those who have chosen to leave the company. The information is analyzed and used to help create workplaces where employees prefer to stay long term. Support is provided to employees’ philanthropic activities, with auctions and sporting events being organized to benefit a charity selected by a vote among employees each year.

Hitachi India Pvt. Ltd.
In India, where the pandemic has been especially severe, this company has been accelerating online measures to improve communication between employees. Sixty participants from Hitachi India and its group companies participated in an online workshop program. By enhancing participant follow-up before and after the program, the activity received high marks from those who took part. As part of other measures to deal with COVID-19, Hitachi India introduced virtual coffee breaks for employees working from home. Also, the company is enhancing efforts to support the mental health of telecommuters including the promotion of online yoga using a mobile app.

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