Diversity, Equity and Inclusion

• Diversity, Equity and Inclusion (DEI) at Hitachi
• Global DEI Management Structure
• Global DEI Strategy
• Global DEI Target
• Global DEI Activities
• Diversity
• Equity
• Inclusion

Diversity, Equity and Inclusion (DEI) at Hitachi

Approach & Policy

Hitachi is committed to implementing DEI as a crucial driver to achieve long-term and sustainable business growth and create value for society by respecting planetary boundaries and improving people’s well-being. Hitachi aims to be a diverse and inclusive company in which every employee is welcome, treated fairly, and feels included. At Hitachi, we have zero tolerance for any behavior that fails to demonstrate respect for each person.
Having a diverse workforce in all aspects, from gender and culture, background, generation, neurodiversity and disability, is crucial for unlocking innovation. However, diversity alone is not enough. To truly benefit from diversity, we need to provide everyone access to the same opportunities through structural changes (Equity) and create an inclusive, safe environment where everyone feels accepted, valued, and free to express their thoughts and contribute (Inclusion). For this reason, Hitachi is implementing a group strategy to drive actions across these three frameworks of Diversity (D), Equity (E) and Inclusion (I) on both a global and regional level.

In April 2024, we issued a revised version of the Hitachi Group Global Diversity, Equity and Inclusion (DEI) Policy, which replaces the previous version released in September 2022. The new release covers two new global DEI topics (LGBTQIA+, Disability & Neurodiversity) and has a focus on Allyship and Psychological Safety. In line with this policy, our initiatives to enhance DEI share these basic goals:

• Make Hitachi a truly global company, with talents from all over the world;
• Enable Hitachi to better serve global customers, improve our footprint, and open new markets;
• Drive innovation and creativity;
• Attract and retain talent;
• Ensure employees are engaged and can actively contribute to implement the group strategy.

Hitachi Group Global Diversity, Equity and Inclusion (DEI) Policy

Global DEI Management Structure

Structure

To develop a robust approach to DEI and an inclusive culture as a core driver for sustainable business growth, Lorena Dellagiovanna was appointed as Hitachi’s Chief Sustainability Officer to address the wider sustainability agenda, leading and championing DEI as part of her sustainability work. Under the leadership of the Chief Sustainability Officer, Hitachi strengthened a dedicated global and regional DEI structure to set the group direction, implement DEI initiatives and achieve DEI goals, in line with business needs and local priorities.
From a global perspective, DEI topics are discussed both at the executive level and the implementation level to ensure a common understanding and direction in terms of policies and initiatives. The mission of the Senior and Global DEI Councils, which includes representatives from each business and region, is to align with the global DEI strategy and discuss implementation in partnership with the HR departments around the world. The Senior DEI Council is responsible for setting the strategy for DEI, while the Global DEI Council helps in prioritizing the DEI topics and implementing initiatives. Material matters are reported to and deliberated on by the Senior Executive Committee and are reported to the Board of Directors when necessary.
From a regional perspective, the Regional DEI leaders and teams based in six regions (Americas, EMEA, India, China, Southeast Asia, Japan) drive initiatives aligned to local needs and business strategies.
The Global DEI Division supports the implementation of the group initiatives, implementing the DEI strategy to foster an inclusive culture and ensure equitable procedures and policies. The Division implements a thorough set of DEI performance indicators, monitoring data and progress to identify core actions and priorities. To foster communication among all BUs, corporate functions, and group companies, the Global DEI Division facilitates working group sessions. These sessions involve all key internal stakeholders, and participants discuss specific DEI topics, share best practices, identify common issues, and find practical solutions. We are also working closely with HR to ensure all policies and procedures grant equitable access to all employees, increasing awareness around the importance of inclusive culture and reinforcing the role of inclusive leadership. At the same time, we focus on improving transparency in our internal procedures and strengthen the internal collaboration.

Global DEI Strategy

Strategy & Target

In fiscal 2020, Hitachi conducted a gap data analysis. In connection with this analysis, we looked at external assessments and worked with BUs, corporate functions, and group companies to review status and business strategies. Based on this analysis, we formulated our global DEI strategy for the medium to long-term, including:

• Moving from standalone initiatives focused mainly on gender equity to a holistic strategy embracing different dimensions of diversity;
• Integrating DEI into the business strategy as a driver for business growth with clear targets;
• Creating a new global structure to coordinate and guide all different group entities on a clear direction, and defining actions plans to support DEI development based on specific priorities;
• Introducing initiatives to foster an inclusive culture.

From fiscal 2024, we are strengthening the DEI strategy in line with the revised policy. The strengthened strategy addresses all dimensions of diversity. Among them, to achieve our DEI vision, we identified three important topics that are common to all businesses and regions (Gender Diversity, Cultural Diversity, and Multi-generation), and added two more topics; LGBTQIA+ and Disability and Neurodiversity), that we address with our activities from Equity and Inclusion perspectives.
For the gender and cultural diversity dimensions, each Hitachi BU, corporate function, and group company sets specific targets to increase diverse representation across the group and at a leadership level. The procedure to define the targets included individual meetings where discussions focused on how DEI efforts can help to address issues and priorities in each business and region, since Hitachi operates in a variety of industries and markets.
In line with the above-mentioned global DEI topics, Hitachi has put actions in place not only to increase representation of underrepresented groups, but also to implement inclusive behavior and ensure equity across the group through the five pillars of implementation.

Five Pillars of Implementation

Five Pillars	Details
Leadership commitment	President & CEO and Senior Leadership are committed to implementing DEI as a business driver across the whole organization Hold leadership accountable for DEI progress, embracing and promoting an inclusive leadership style Equip leaders with the skills needed to foster inclusive teams and lead by example
Culture	Build an inclusive culture and work environment where we respect and value each other’s uniqueness, so that everyone feels safe to be themselves, helping to unlock innovation Create a compelling, clear, crisp, simple, and positive DEI narrative Enhance collaboration across all businesses and functions to support our global initiatives
Recruitment	Attract and retain diverse talents, from different markets and sectors Conduct diagnostic analysis and review recruiting channels and practice, monitoring the recruiting funnel Develop and implement free-of-bias strategies to attract a diverse pool of candidates for all levels of the organization
Retention	Review all HR policies to grant equal opportunities to every employee, by conducting a comprehensive audit to identify gender pay gaps Monitor engagement score and well-being of employees Provide benefits and support robust Employee Resource Groups (ERGs)
Advancement	Build and develop a pipeline of diverse talents into leadership roles, including succession planning that prioritizes underrepresented groups Define a transparent process for promotion with clear criteria Identify diverse talents based on competency

Global DEI Target

Strategy & Target

Materiality

Hitachi aims to have a fair representation of the society we serve among its leaders and workforce.
To achieve this goal, Hitachi, Ltd. has set a dedicated target to increase diversity at the leadership level, aiming to achieve 30% of non-Japanese and 30% of women in Executive and Corporate Officer positions by fiscal 2030. As of June 2024, the ratio of women and non-Japanese are progressing steadily towards the fiscal 2030 target rates, with 11.8% and 25% respectively.

Global DEI Activities

Activities

Hitachi implements a wide range of initiatives to progress on DEI strategy, focused on the five global DEI topics and based on the global DEI policy.
Among these initiatives, a series of employee resource groups (ERGs) focused on specific topics (women, LGBTQIA+, cultural diversity, etc.), ERGs are working in various countries and regions with the aim to support underrepresented groups and improve workforce diversity. The ERGs help to increase awareness on the potential barriers certain groups may encounter in the work environment, ensuring equal opportunities and eliminating discrimination.

Diversity

Activities

Diversity is a fact, because everyone is unique.
Diversity means that there is a place for everyone, regardless of their characteristic traits, and we embrace and value everyone’s unique contribution.

Gender Diversity at Hitachi

Gender diversity at Hitachi is crucial for ensuring long term sustainable business growth. On a global level, women are around 50% of the population. Achieving a good gender balance at all levels of the company will allow Hitachi to better understand and respond to the needs of the market and society.
For this reason, Hitachi works to create workplaces where all employees can work comfortably and actively. In fiscal 2023, the ratio of women managers reached 14%.

Cultural Diversity at Hitachi

Being culturally diverse is about creating a team which reflects the global nature of our company. As of the end of fiscal 2023, with approximately 60% of revenues coming from overseas and approximately 60% of employees being based outside Japan, Hitachi has grown from its Japanese roots into a global innovation business. Our aspiration is to see the global and diverse nature of our business portfolio reflected in our people—particularly at the decision-making level — working in an inclusive environment.
By providing the opportunity for more individuals from different nationalities to progress into leadership, we create opportunities for Hitachi to access new markets and sustain our global growth. Among the different activities Hitachi has set in place:

• Global Human Capital Management on a group global level to improve diversity and equal opportunity among employees from various cultural backgrounds, as well as eliminate discrimination.
• Global Leadership Development program (GLD), started in fiscal 2012, to identify global talents and future leaders ensuring an inclusive perspective. The initiative has been included in the World Economic Forum’s 2024 DEI Lighthouse report as best practice for developing the future generation of leaders.
• Global Talent Mobility Program across all Hitachi companies, to support internal talent mobility from a structural perspective. The first pilot project started in EMEA in fiscal 2022, and was expanded to the Americas in fiscal 2023. Global Human Capital Management
  

Disability Diversity in Japan

Hitachi, Ltd. and Hitachi Group companies in Japan recruit people with disabilities via online recruiting fairs and by partnering with special subsidiaries.
As of June 2024, the employment ratio of people with disabilities was 2.64% at Hitachi, Ltd. and 2.65% for the entire group in Japan.

Equity

Activities

Equity is a choice.
Equity means every employee has access to everything they need to succeed and is treated with fairness and transparency.
At Hitachi, we recognize that each of us needs different conditions to thrive. We put policies, tools and reasonable accommodations in place to allow everyone to be able to access the same opportunities.

Equity at Hitachi: Individual Behavioral Goals linked to DEI in GPM

Starting in October 2023, with a full rollout at the group level in April 2024, Hitachi Group employees have been required to set DEI-related goals, which account for more than 5% of their total individual goals in the Global Performance Management (GPM) system. This initiative is designed to hold each employee accountable and actively contribute to creating a more inclusive work culture and environment.

Gender Equity

Improving gender equity and inclusion means empowering women across our organization to access opportunities to fulfil their potential based on their aspirations and competences, ensuring an inclusive environment and equitable processes. We are also committed to removing systemic inequalities that exist allowing for everyone to thrive from wherever they are.
Starting with giving broader access to all roles through recruitment, Hitachi offers women opportunities to progress into leadership positions. Our goal is that all women at Hitachi feel included and respected, and have a clear and distinctive voice to contribute to our innovation.
To increase transparency internally and externally, Hitachi launched the group Global DEI data office. Its purpose is to track KPIs and progress, and make data-driven decisions on DEI, clearly stating the leading role of DEI in business collaboration. Additionally, it helps identify areas where the implementation of DEI can be accelerated.

Equity for Different Generations

Equity for LGBTQIA+ Community

Hitachi released the LGBTQIA+ Toolkit. The Toolkit offers definitions of terminology related to LGBTQIA+, and showcases specific actions that can easily be put into practice in the workplace to foster awareness and inclusion.
As part of the Pride campaign in 2024, an updated version was released, including a section on gender affirmation guide and the use of pronouns and chosen name in internal processes and procedures.

Equity for People with Disabilities

Inclusion

Activities

Inclusion is an action.
Inclusion is ensuring everyone feels recognized and valued, and they are empowered to contribute to the organization at their best.
We believe everyone should feel respected, heard, involved, and empowered to speak up. This requires fostering an open and empathetic culture that ensures freedom of expression and psychological safety, where individuals can be themselves without fear of negative consequences.

Fostering Inclusion at Hitachi

An inclusive environment and culture are essential to be able to leverage all diversities of employees in a global company. While equity is closely linked to the structure of the company, inclusion is related to the behaviors and mindset of the people in Hitachi. For this reason, to make progress on inclusion, we have set a series of actions from both top-down and bottom-up approaches to increase awareness of DEI as a business driver and to share concrete examples of inclusive behaviors, ensuring everyone has the same understanding and clarity on their role.

• Inclusive Leadership Program: In 2023, 84 Hitachi top executives on a global level were invited to take part in a dedicated program. Through an assessment, a feedback session, and interactive workshop, Hitachi leaders had the chance to reflect on their behavior, thinking process and attitude toward an inclusive leadership style that will help drive business with diverse employees in a complex business environment. Through peer-to-peer workshops and individual exercises, participants became aware of their own unconscious biases and reaffirmed the value of diversity. In FY2024, the Hitachi group plans to roll out a second phase of the program to enable more inclusive leadership practices. The program will be rolled out on a wider scale to include not only executives but also subordinate leaders and managers across the group and globally.
• Hitachi DEI eLearning: To increase awareness and understanding of DEI and inclusive behavior within all levels, in fiscal 2023 Hitachi rolled out a bespoke DEI eLearning program targeting all Hitachi employees (including offline workers) to ensure a consistent, global and shared understanding of DEI topics, Hitachi DEI Strategy and how people can practice DEI in their daily life. As of March 2024, more than 185,000 employees has completed the training.
• DEI Month campaigns: Hitachi rolls out a series of campaigns on specific diversity pillars leveraging International Days such as International Women’s Day, Pride, International Day of Persons with Disabilities, and World Day for Cultural Diversity for Dialogue and Development. In November 2023, Hitachi launched a month-long campaign dedicated to DEI, involving business leaders to share their commitment towards DEI, launching several activities focused on increasing awareness and igniting behavioral change.
• Inclusive Toolkit series: During the campaign, we released a series of inclusive toolkits. The first ones we issued are the Inclusive Language and Inclusive Meeting Toolkits, with the aim to support all Hitachi employees in identifying concrete actions to create an inclusive environment where everyone feels safe, welcome and able to contribute.
• Hitachi Group Core Competency: To drive progress in inclusion, Hitachi included DEI as part of the new Core Competency model launched in 2023 to support all employees in embracing an inclusive and growth mindset approach.

Global Human Capital Management

Gender Inclusion

While working on increasing the representation of women across all levels and sectors of the company, and ensuring policies and procedures offer equal chance to thrive, an inclusive culture is essential to grant women the chance to actively contribute to the business.

• Catalyst’s Men Advocating for Real Change (MARC): In partnership with Catalyst, a global NPO, Hitachi set up a series of activities in fiscal 2023 with the aim to increase the understanding of gender inclusion, why it is important for everyone, the crucial role of men and how we can all contribute to create a more inclusive work environment.
• Internal events and roundtable: Hitachi is also providing opportunities for women to share and discuss their perspectives during an internal roundtable and events, in direct contact with the group CDEIOs and Deputy CDEIOs.
• IWD 2024: A dedicated communication campaign on gender equity and inclusion was rolled out during the month of March 2024 through all regions and businesses, leveraging International Women’s Day, including online events, training sessions, articles and research.

Cultural Inclusion

Cultural Inclusion is one of the main drivers for innovation at Hitachi. The diversities in culture and background of Hitachi employees allow the company to better understand the needs of customers and society, and serve them best, driving sustainable business growth.
For this reason, Hitachi set the goal of 30% of non-Japanese executives and corporate officers.
While working on a solid pipeline for future global leaders of the group, Hitachi is committed to providing all employees with the necessary tools to work in a diverse environment, understanding, respecting, and valuing cultural differences.

Inclusion for LGBTQIA+ Community

Hitachi has a place for everyone, and we value all diversities as the source for creating innovation and sustainable business growth. We recognize and value the contributions of the LGBTQIA+ community, and we embrace our responsibility to promote an inclusive environment where everyone can thrive regardless of sexual orientation, expression or identity.
In June 2023, during Pride month, Hitachi launched a global group campaign to increase awareness on LGBTQIA+ topics, sharing practical examples of inclusion and allyship. For the first time, the Hitachi logo reflected the colors of the rainbow flag to show its support for the LGBTQIA+ community. Among the activities, we organized in-person and online events, inviting external speakers, ERG members, and executives to share their experiences and engagement with the topics.
In fiscal 2024, Hitachi continued to use the Pride logo for topic-related communications. During the year and specifically in June for Pride Month, Hitachi sponsored local parades to show support for the community.
A series of “Pride Dialogues” was launched in June focusing on Allyship, giving space to colleagues belonging to the community or allies to share their view, why and how to become an ally.

Inclusion for People with Disabilities

Hitachi joined The Valuable 500, a global CEO community launched at the World Economic Forum to accelerate inclusion for people with disabilities, transforming business systems and the work environment. By joining this worldwide movement, Hitachi is committed to support this transformation with internal activities and taking part in the Valuable 500 initiatives.
Among them, Hitachi joined the Generation Valuable Program from December 2023. By involving employees with disabilities and executives from each company in direct dialogue, the program aims to increase understanding of the gap that needs to be filled to ensure equal opportunity for employees with disabilities in the company.