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Hitachi

Modern Slavery Act

Modern Slavery Act Transparency Statement

Hitachi Europe Limited

Modern Slavery Act 2015 Statement for the year ending 31 March 2022

Hitachi Europe recognises the importance of identifying and preventing modern slavery and its causes in our business and supply chain. This statement, our seventh made pursuant to Section 54(1) of the Modern Slavery Act 2015, sets out the steps we have taken to prevent modern slavery and human trafficking in our business and supply chain in the year ending 31 March 2022 as well as our plans for the current year. It covers Hitachi Europe Limited only. For other Hitachi Group company statements please see the relevant company website or visit www.hitachi.eu/en-gb/modern-slavery-act.

Our Business

Hitachi Europe 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 Stoke Poges, with significant presences in London and Cambridge. We also have branch offices in Istanbul (Turkey), Warsaw (Poland), Zurich (Switzerland), Johannesburg (South Africa) and Copenhagen (Denmark), and a representative office in Bucharest (Romania). These offices are involved in sales and/or business development.

Operations

Our Stoke Poges office operates as the European corporate centre for Hitachi, Ltd. providing support and services to Hitachi’s European Group companies and, along with our other UK based locations, also houses a number of diverse businesses, which are organised in operational business groups supplying a variety of products and services under the Hitachi brand. In the financial year ending 31 March 2021 these included:

  • The Digital Media Group – sources and sells televisions, soundbars, refrigerators and motion sensors. Consumer products are available in the UK via retailers such as Argos;
  • The Security Business Group – focusses on digital security solutions and finger vein technology, a secure, simple and safe way for banks to identify their customers by reading their unique vein pattern;
  •  The Power Device Division – provides advanced high reliability semiconductors – including insulated gate bipolar transistors, integrated circuits and diodes – to industrial, rail, automotive and consumer markets. These components deliver high power efficiency for precise electric power control, in applications ranging from motors to grid level power transmission;
  •  The Particle Beam Therapy Group – provides systems to deliver proton therapy, one of the most advanced forms of cancer therapy available, offering treatment with pinpoint accuracy and minimal side effects;
  •  The Digital Solutions Group – offers digital solutions, combining Hitachi's extensive operational technology and advanced IT capability to meet client needs in areas including connected communities, energy management and electric mobility; and
  •  The Social Innovation Business Group - is responsible for developing new digital solutions that harness Hitachi’s extensive experience in IT and operational technologies to bring new value to our customers. Activities are focused on delivering solutions in three core areas of expertise: Transport, Manufacturing and Smart Energy

We also provide corporate, administrative, compliance and governance services to other Hitachi Group companies. Our UK business, and its overseas branch and representative offices, employs approximately 350 people. In the 2021 financial year, Hitachi Europe had a turnover of approximately £125 million.

Our Supply Chain

We have approximately 39 active trade suppliers (of which 13 are Hitachi Group companies) that supply either complete products or components of our products. Half of these are based in the UK or Japan. Approximately one third of our trade suppliers are based in countries identified as posing a high risk of modern slavery, namely China (including Hong Kong), Greece, Malaysia, Thailand and Turkey. The others are based in other lower risk European countries, Australia and Singapore.

We have approximately 770 further suppliers (of which 32 are Hitachi Group companies) which are categorised as non-trade. They supply everything used for our operations that is not a product or product component. The majority of these suppliers are located in the UK and Japan, while a small number are based in higher risk countries including India, Oman, Qatar, Romania, Russia, Saudi Arabia and Turkey.

Our Approach

We are committed to conducting business ethically and to minimising the risk of slavery or human trafficking in our own business and in our supply chains.

Our commitment and work is strongly supported by Hitachi, Ltd. In 2019, Hitachi, Ltd.’s President and CEO, Toshiaki Higashihara, signed the World Business Council for Sustainable Development’s CEO Guide to Human Rights calling for CEOs to go beyond compliance to drive transformative change in corporate respect for human rights.

In line with Hitachi’s global human rights approach to create a value chain where the human rights of all stakeholders are respected, Hitachi Europe seeks to work with suppliers that actively address modern slavery and to work collaboratively with those still developing their processes in this area. We also strive to engage employees and other Hitachi Group companies in understanding why addressing modern slavery is important and how to identify and act on indicators of slavery.

We acknowledge that we are on a journey and, in common with other companies, face challenges which include engaging suppliers where we have low leverage and fully understanding the sub-tiers of our supply chain. This is why we collaborate with external stakeholders and experts to overcome such challenges and ensure that our work is robust and effective.

Our Policies

We continue to apply our company and Group policies which address issues relevant to slavery and human trafficking:

  •  The Hitachi Group Codes of Conduct refer to respecting human rights, in particular hiring employees according to international standards and not engaging in child or forced labour.
  • The Hitachi Group Human Rights Policy sets out Hitachi’s commitment to undertake Human Rights Due Diligence in accordance with the UN Guiding Principles to identify and address human rights issues, including those related to modern slavery.
  •  The Hitachi Group Sustainable Procurement Guidelines are shared with suppliers and specifically call for freely chosen employment, appropriate working ages, working hours, wages and benefits as well as humane treatment, non-discrimination and freedom of association.
  • Our written employment practices and procedures ensure fair recruitment and treatment of employees.
  • A written whistleblowing procedure encourages employees to report concerns of malpractice, which would include any concerns related to modern slavery and human trafficking issues.

Our Progress to Date

Over the last year, we have:

1. Continued to raise awareness and build expertise

  • We continued to co-ordinate a cross-group European Responsible Supply Chain Working Group co-led by our Sustainability and Value Chain Integration teams. All Hitachi Group companies in Europe are invited to join this collective learning group which aims to support Group companies in strengthening their consideration of social impacts within their supply chains, and specifically to:

1. increase the understanding of Hitachi’s approach as set out in the Hitachi Group’s Human Rights Policy and with reference to drivers for implementing the UN Guiding Principles, such as the regulatory environment in Europe in relation to business and human rights including the UK Modern Slavery Act;

2. build capacity in understanding how salient human rights issues in the supply chain can be assessed and prioritised;

3. build capacity in managing challenges and identified salient human rights risks proactively;

4. equip group companies with the knowledge, guidance and tools on how to embed human rights due diligence with suppliers; and

5. provide an information exchange platform among Hitachi companies in Europe to discuss challenges and good practice.

 

2. Collaborated with external organisations and stakeholders

  • We continued to participate in:
  • BSR (Business for Social Responsibility), a global not for profit organisation, participating in their Human Rights Working Group. We took part in peer learning, openly discussing challenges and solutions.
  • techUK’s Sustainable Supply Chain group, providing access to learning from peers in the technology sector on modern slavery.
  • We continued to collaborate with Shift to input into and guide the direction of the European Responsible Supply Chain Working Group.

3. Monitoring progress

  • We continued to work towards the development of KPIs. However, we have continued to focus on ensuring we have the right processes in place and fully understand the risks in our supply chain before we set and agree KPIs.

Our Future Plans

Over the coming year and beyond we plan to focus on the following areas:

  • Develop and promote Human Rights Due Diligence
    • We are building on the work undertaken during FY20 to strengthen the due diligence process.
    • Conduct an initial review of the supply chain including areas of low visibility
    • Undertake a supply chain mapping exercise and analysis.
    • Conduct a salient risk assessment on our value chain
  • Raising awareness and building expertise on Human Rights Due Diligence
    • We have established a core team and working group to provide strategic direction and leadership to ensure we have the appropriate mechanisms in place to identify, respond to, mitigate, and prevent our adverse human rights impacts in our own value chain
    • The working group shall have established KPIs to develop, lead, monitor and be accountable for the implementation of various HRDD deliverables within Hitachi Europe.
  •  Collaborating with external organisations and stakeholders
    • We are continuing membership of Shift’s Business Learning Programme, BSR’s Human Rights Working Group and techUK’s Sustainable Supply Chain Group.
  • Monitoring progress
    • We plan to start setting appropriate KPIs to monitor progress.

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 2022. It has been approved by Hitachi Europe Limited’s Board of Directors.

Naotoshi Nishida

Managing Director

Date: 6th December 2022

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Hitachi Astemo Europe GmbH and Hitachi Astemo UK, Ltd.

Modern Slavery Act 2015 Statement for year ending 31st March 2021

Hitachi Astemo Europe recognises the importance of identifying and preventing modern slavery and, its causes in our business and supply chain. This statement, our sixth made pursuant to Section 54(1) of the Modern Slavery Act 2015, sets out the steps we have taken to prevent modern slavery and human trafficking in our business and supply chain in the year ending 31 March 2021, as well as our plans for the current year.

This statement covers both Hitachi Astemo Europe GmbH ("(Astemo) EU") and Hitachi Astemo UK, Ltd ("(Astemo) GBUK") who are referred to jointly in this statement as "Hitachi Astemo Europe" or "we" and are formerly known as Hitachi Automotive Systems Europe GmbH and Hitachi Automotive Systems UK Lid

Our Business

A key change in January 2021 was the establishment of Hitachi Astemo, Ltd the formation of a new company following the recent acquisitions of a number automotive and motorcycle component manufacturing companies. The name Is derived as follows A (Advanced) S (Sustainable) TE (Technologies) for MO (Mobility) and has a strategy to 'Provide a safe, sustainable, and comfortable mobility life through technologies that contribute to an advanced and sustainable society'. The shareholding of this company is 66.6% Hitachi, Ltd and 33.4% Honda Motor Co., Ltd with the business scale and number of employees in approximate figures.

For this statement, which is, elating to FY 2020, we will report for the two previously named companies only, jointly referred to as Hitachi Astemo Europe. (Astemo) EU is headquartered in Schwaig, Germany and Is a subsidiary of Hitachi Astemo, Ltd, Japan. (Aslemo) GBUK is based in Bolton, UK and is a fully owned subsidiary of (Astemo) EU Both businesses sell automotive components into the UK market.

Our Operations

Hitachi Astemo Europe supplies a variety of automotive products to the automotive industry under the Hitachi brand or under their customer's brand. Some of these products are assembled, in Hitachi Astemo Europe assembly plants in Germany, Czech Republic and the UK, whilst other products are imported from Hitachi Astemo, Ltd which has subsidiary factories in Asia (including Japan, China and India) and in the Americas Hitachi Asterno Europe' business employs around 850 people.

Our Supply Chain

Hitachi Astemo Europe has approximately 140 trade supplies (of which 10 are Hitachi Group companies) and over 1000 non-trade suppliers. The suppliers are located in the European Union (EU- 28 Member States), Asia and the Americas.

Out Approach

We are committed to conducting business ethically and to minimising the risk of Slavery or human trafficking in our own business and in our supply chains.

Our commitment and work is strongly supported by Hitachi, Ltd. In 2019, the Company signed the World Business Council for Sustainable Development's CEO Guide to Human Rights, calling for CEOs to go beyond compliance to drive transformative change in corporate respect for human rights.

In line with Hitachi's global human rights approach to create a value chain where the human rights of all stakeholders are respected, Hitachi Astemo Europe seeks to work with suppliers that actively address modern slavery and to work collaboratively with those still developing their processes in this area. We also strive to engage employees in understanding why addressing modern slavery is important and how to identify and act on indicators of slavery.

Our Policies

We continue to apply our company and Group policies which address issues relevant to slavery and human trafficking.

  • The Hitachi Group Codes of Conduct (LINK) refer to respecting human rights, in particular hiring employees according to international standards and not engaging in child or forced labour.
  • The Hitachi Group Human Rights Policy (LINK) sets out Hitachi's commitment to undertake Human Rights Due Diligence in accordance with the UN Guiding Principles to Identify and address human rights issues, including those, elated to modern slavery.
  • The Hitachi Group CSR Procurement Guideline (LINK) is shared with suppliers and specifically calls for freely chosen employment, appropriate working ages, working hours, wages and benefits as well as humane treatment, non-discrimination and freedom of association.
  • Written employment practices and procedures which ensure fair recruitment and treatment of employees.
  • The recent introduction of the Hitachi Global Compliance Hotline, which replaces the previous Compliance Reporting system and Is run and monitored by a third party, further enhances and supports an open environment with regard to raising any items of concern from business partners as well as employees. As previous this system encourages the reporting of any concerns relating to malpractice, which would include any concerns related to slavery and human trafficking issues.

Our progress to date

Over the last year, we have taken a number of steps

  • We conducted conflict minerals reporting across all our manufacturing locations based on the standardised reporting template created by the Responsible Minerals initiatives (RMI).
  • We conducted the mandatory online training on the Hitachi Group Codes of Conduct with all our employees, which includes references to Modern Slavery. This training is conducted annually.
  • We introduced the Global Hitachi Compliance Hotline which is open to all business partners and employees (referred to above).
  • We started using an updated contract version with our suppliers which included specific provisions relating to HRDD (Human Rights Due Diligence).
  • We continued to attend the annual Hitachi Group European Procurement Meeting and the Hitachi Group European Compliance Conference which included presentations on modern slavery in the supply chain, in order to align with the updated company guideline and requirements to suppliers.
  • We participated in the European Responsible Supply Cham Working Group led by the Hitachi Europe Limited Sustainability and Value Chain Integration teams. The aim of the Working Group Is to strengthen understanding of the social impacts within their supply chains and specifically to

1 Increase understanding of Hitachi's approach and drivers for implementing the UN Guiding Principles, including the regulatory environment in Europe in relation to Business & Human Rights.

2 Build capacity in understanding how salient human rights issues in the supply chain can be assessed and prioritised.

3 Build capacity in managing challenges and identified salient human rights risks proactively.

4 Equipping Group Companies with the knowledge, guidance and tools on how to embed HRDD with suppliers.

5 Provide an information exchange platform among Hitachi in Europe to exchange challenges.

Our ongoing commitments

Year on year we seek to progress our work on addressing modern slavery, during the year end March 2022 we plan to

  • As a priority understand the impact, that the new Company Hitachi Astemo, Ltd has on our business and especially our supply chain. Ensuring that regionally our compliance structures and due diligence is applied consistently and appropriately.
  • Enhance risk management of our suppliers during the sourcing and regular audits to identify areas of potential risk for modern slavery and human rights.
  • Continue our review of 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.
  • All employees will continue, annually, to complete Hitachi Code of Conduct mandatory training which includes examples of slavery and human trafficking and how employees should report concerns.
  • Discuss updating of the global sourcing process and relevant contracts for modern slavery and human rights with the global procurement team in Hitachi Astemo.
  • Keep updating the annual conflict minerals reporting to our customers based on the internatIonal standard updated by the Responsible Minerals initiatives (RMI).
  • Continue participation in Hitachi's European Responsible Supply Cham Working Group which will support (Astemo) EU's work through focusing on assessing prioritising and addressing human rights risks.
  • Deployment of the new Hitachi Group Sustainable Procurement Guidelines which will be shared with all of our suppliers when issued during the 2nd Quarter FY2021.
  • Commence project work relating to the implementation of a CSR evaluation amongst our supply base with the support of Hitachi Value Chain Integration Group.

This statement is made pursuant to section 54(1) of the Modern Slavery Act 2015 and constitutes (Astemo) EU's slavery and human trafficking statement for the financial year ended 31 March 2021.

It has been approved by (Astemo) GBUK's Board of Directors

Tim Clark

President/ Director

Hitachi Astemo Europe GmbH / Hitachi Astemo UK, Ltd

 

Daniel Holmes

Managing Director

Hitachi Astemo UK, Ltd

Date 7th September 2021

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