Business Continuity Initiatives

• Approach to Business Continuity Plans (BCPs)
• BCPs Initiatives
• Procurement BCPs Initiatives
• Improving Safety for Employees Sent to Dangerous Regions

Approach to Business Continuity Plans (BCPs)

Approach & Policy

Activities

Given the close relationship of our business to social infrastructure, Hitachi continues to strengthen BCPs to ensure that the impact of risks does not disrupt our business and thereby significantly affect society. We have prepared the Hitachi Group Guidelines for Developing Business Continuity Plans (Overview) and the Hitachi Group Guidelines for Developing Business Continuity Plans (By Department) in Japanese, English, and Chinese and have provided them to all group companies to enhance preparedness for major disasters and other risks.
Regarding infectious diseases, we have also provided the Hitachi Group Guidelines for Pandemic Influenza Preparedness in three languages to group companies for use in countermeasures against COVID-19.
We appoint personnel with responsibility for risk-response policies at our main overseas bases. Major group companies outside Japan prepare BCPs to strengthen response to business risks including major disasters, infectious diseases, political instability, social disruption, and acts of terrorism.

Formulation of BCPs

Hitachi, Ltd. and group companies in Japan have formulated BCPs for each business in preparation for major earthquakes, wind and flood damage, and novel strains of influenza. Each business division reviews its BCP regularly and makes revisions as necessary. In fiscal 2023, we strengthened BCPs with a focus on the potential event of mega-earthquakes.
Group companies outside Japan have formulated BCPs in light of risks of concern in their respective locations.

BCPs Initiatives

Activities

Hitachi, Ltd. continues to strengthen measures against natural disasters by conducting annual earthquake drills, which simulate a major seismic event.

Drill Simulating Earthquake Measures

FY2020	Drills to set up an earthquake task force on a remote-work basis on the assumption that all work must be conducted remotely
FY2021	Remote drills using a Web conferencing system on the assumption that not everyone can assemble at the office on weekdays and that there is a mix of those who come to the office and those who work from home
FY2022	Conducted training for remote workers, assuming that headquarters disaster-response staff living in areas subject to JMA Seismic intensity 7 are not able to participate in drills in person; simulated an earthquake occurring directly under the Tokyo metropolitan area during daylight on a weekday
FY2023	Added a drill in which employees must establish contact with disaster-response staff as a first response in a scenario in which an earthquake has occurred in the Tokyo metropolitan area during daylight hours on a weekday and networks have been temporarily disrupted

Procurement BCPs Initiatives

Activities

Hitachi is committed to enhancing its procurement Business Continuity Plan (BCP) throughout the group to ensure that incidents^*1 do not disrupt operations and cause significant impact on society. Procurement divisions in each BU and major group company are formulating and promoting strategies to minimize the impact of disasters. These strategies include: (1) minimizing procurement risks through thorough standardization and the use of common parts; (2) promoting multi-supplier arrangements; (3) diversifying manufacturing locations; (4) budgeting for strategic inventory; and (5) considering alternatives. In fiscal 2023, frequent natural disasters, such as typhoons and floods in various regions and the Noto Peninsula Earthquake, underscored the increasing importance of strengthening our supply chains’ resilience. Given these circumstances, we will continue to advance the aforementioned initiatives.

*1Events such as natural disasters (including major earthquakes) serious enough to disrupt business

Responsible Procurement

Improving Safety for Employees Sent to Dangerous Regions

Activities

Hitachi takes all possible measures to ensure safety when sending employees to countries and areas at high risk of conflicts, terrorism, and other threats, with on-site surveys conducted by in-house and outside experts beforehand as necessary. In addition, to ensure the safety of our employees around the globe, Hitachi, Ltd. undertakes measures for the timely provision of information by posting the information from contracted news agencies on our intranet and we have contracted an outside specialist company to provide overseas medical assistance to Hitachi Group employees.
Furthermore, Hitachi, Ltd. participates in the Council for Public-Private Cooperation for Overseas Safety organized by Japan’s Ministry of Foreign Affairs to enhance collaboration between the private and public sectors in this area, by which contributes to safety measures at other Japanese corporations operating outside Japan.

Note:Hitachi normally refers to suppliers (including vendors or providers) as procurement partners who build business together on an equal footing.