Statement in Accordance with the UK Modern Slavery Act 2015
This statement is made pursuant to Section 54(1) of the Modern Slavery Act 2015 for the fiscal year ended March 31, 2016 and articulates the steps that Hitachi, Ltd. has taken to ensure that slavery or human trafficking is not taking place in our supply chains or in any part of our business.
Hitachi, Ltd. is a business corporation headquartered in Tokyo and is, together with the major subsidiaries, providing goods and services through its business units and subsidiaries in and outside of Japan in the field of information and telecommunication systems, social infrastructure and industrial systems, electronic systems and equipment, construction machinery, high functional materials and components, automotive systems, smart life and ecofriendly systems, financial services and others. As at March 31, 2016, Hitachi, Ltd. has a branch in the UK which provides support and marketing services for its industrial products business unit. Hitachi, Ltd. and its major subsidiaries also have 17 active subsidiaries operating as sales offices, factories, and or service and maintenance sites in the areas of information and telecommunication systems, automotive parts and components, rail systems, construction machinery, power tools, power systems, and other related technology sectors. Subsidiaries that are required to produce a statement in accordance with the UK Modern Slavery Act 2015 will issue their own statement. Hitachi, Ltd. and the subsidiaries purchase products, materials, parts and components mainly from Asia to produce products or to provide systems and services. The number of suppliers with whom we have a direct business relationship is approximately 26,000 in around 60 countries worldwide (as of December, 2015). Among them, are 12 Hitachi Group companies based in UK.
Hitachi, Ltd. and the subsidiaries have Group policies and guidelines to show our approach and commitment to addressing modern slavery:
- Hitachi Group Codes of Conduct
- Hitachi Group Human Rights Policy
- Guidelines for Procurement Activities
- Hitachi Group Supply-Chain CSR Deployment Guidebook
Distributed to tier 1 suppliers of Hitachi, Ltd. and its subsidiaries.
- Hitachi, Ltd. has instituted a group-wide whistle blowing system to prevent illegal and unethical behavior, to promptly address infractions and to enhance our ability to self-regulate. In this system, reports go directly to the compliance department of Hitachi, Ltd. or to an outside attorney. Contact can be made via mail or e-mail.
During the fiscal year 2015, Hitachi, Ltd. has taken the following actions to respect human rights under the aforementioned policies and guidelines:
- Hitachi, Ltd., and the subsidiaries, asked key suppliers based in the Asian countries that we have identified as high risk areas to conduct CSR self-checks including questions about forced labour. The results were collected and analyzed to take necessary remedial action. This has been done since fiscal 2007. In 2015, 218 suppliers completed a self-evaluation.
- Hitachi, Ltd., and the subsidiaries, have audited suppliers in China from among those providing CSR self-check results and asked them to submit improvement action plans. Hitachi, Ltd., together with the subsidiaries, will be working with and advising the suppliers until they complete the planned improvements.
- Hitachi, Ltd. holds a biannual group-wide meeting on CSR and green procurement. During the 2015 meetings Hitachi, Ltd. shared the results of supplier audits and asked managers of business units and the subsidiaries to guide suppliers.
- In order to meet the UN Guiding Principles on Business and Human Rights, which Hitachi, Ltd. and the subsidiaries are committed to following, Hitachi, Ltd. has started a Human Rights Due Diligence (HRDD) process in its and the subsidiaries' procurement activities. This has involved an impact assessment to identify regions, business models, and specific risks to prioritize at group wide level. The progress was shared during the procurement meeting mentioned above as well as at group CSR meetings. Risks relating to migrant workers, including forced labour are one of the priorities for action. During the assessment process, Hitachi, Ltd. has received help from Shift, the independent, non-profit center for business and human rights practice, and the opinions of expert NGOs. The result of this assessment will be integrated into procurement activities through measures including the revision of our Supply Chain CSR Deployment Guidebook, checklists, engagement plan and other relationships with suppliers.
- To raise awareness and deepen the understanding of respecting human rights, executives as well as employees of Hitachi, Ltd. are receiving ongoing training. In this connection, during the fiscal year 2015, HRDD training for legal and compliance officers was held in Europe supported by external human rights lawyers. Furthermore, Shift gave two HRDD training sessions for European staff in charge of CSR (in Maidenhead, UK and Brussels, Belgium) during September of the fiscal year. One of the issues covered in the training was forced labour and human trafficking. Hitachi, Ltd. supported the training sessions.
- Hitachi, Ltd.’s CEO sent a message to executives and employees of Hitachi, Ltd. and the subsidiaries on Human Rights Day reiterating the importance of respect for human rights.
- Hitachi, Ltd. and the subsidiaries started to organize a seminar on CSR and the environment in China for suppliers in January, 2016 to share our CSR policy, result of audits, engagement with a NGO, environmental law updates. Fifteen people from 12 suppliers based in Eastern and Southern China have attended. We received positive feedback and plan to continue such training in China and other countries.
September 27, 2016
Toshiaki Higashihara President & CEO
Hitachi Europe Limited
Modern Slavery Act 2015 Statement
Hitachi Europe Limited is part of the Hitachi Group and is a wholly-owned subsidiary of Hitachi, Ltd. in Japan. Our business in the UK is headquartered in Maidenhead, with significant presences in London and other UK locations. We also have branch offices in Istanbul (Turkey), Warsaw (Poland), Johannesburg (South Africa) and Copenhagen (Denmark), and representive offices in Vilnius (lithuania) and Bucharest (Romania).
Our UK business operates as a European corporate centre for Hitachi, Ltd. and houses a number of diverse Hitachi businesses which are organised into operational business groups. These include the Digital Media Group, the information systems Group and the Power Device Division. We also provide corporate and administrative services to other Hitachi Group companies. Our UK business, and its overseas branch and representative offices, employ around 300 people and had a turnover in the 2015/2016 financial year of approximatley £208 million.
Our business groups supply a variety of products and services under the Hitachi brand. A significant proportion of the products supplied by us are manufactured by Hitachi Group companies in Japan and elsewhere in Asia. We have approximatley 60 trade suppliers ( of which around 20 are Hitachi Group companies) and over 1000 non-trade suppliers.
We are committed to conducting business ethically and to ensuring that there is no slavery or human trafficking in our supply chains.
We have in Place a number of company and group policies which address issues relevant to slavery and human trafficking, including:
- the Hitachi Group codes of conduct
- the Hitachi Group human rights policy
- written employment practices and procedures which ensure fair recruitment and treatment of employees
- a written whistleblowing procedure to encourage employees to report concerns of malpractice, which would include any concerns related to slavery and human trafficking issues
In the last financial year we have taken, and are continuing to take, the following steps to address the issue of modern slavery:
- We are focussing on the process of mapping our supply chains and undertaking a risk assessment to identify areas of potential risk for modern slavery
- we have targeted supplier due diligence in areas of currently-perceived risk and will review our due diligence processes in the light of the results of the supply chain mapping and risk assessment exercises to ensure an appropriate risk-based approach
- we have conducted mandatory online training on the Hitachi Group codes of conduct to targeted employees
- we have arranged the provision of human rights and modern slavery training to targeted employees to improve awareness of the issues. We are looking at integrating slavery and human trafficking awareness training into our e-learning programme
- we have prepared updated contractual provisions to include specific provisions relating to offences under the Modern Slavery Act
- once we have completed the risk assessment and review of due diligence processes we will be in a position to revise our sourcing procedures
- we are members of the UN Global Compact's UK Modern Slavery Working Group and participate in the Human Rights/MSA committees of relevant trade and industry bodies
This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes Hitachi Europe Limited's slavery and human trafficking statement for the financial year ended 31 March 2016.
Date: 23 June 2016