Respect for Human Rights Throughout the Value Chain

• Respecting the Human Rights of All People
• Hitachi Group Human Rights Policy
• Structure for Promoting Respect for Human Rights
• HRDD Roadmap and Targets
• Measures to Prevent Harassment
• Initiatives to Prevent Child Labor and Forced Labor
• Encouraging Procurement Partners to Conduct Activities
• Human Rights Education and Raising Awareness Among Employees and Executive Officers
• Initiatives to Promote Broad-Based Black Economic Empowerment (B-BBEE) in South Africa
• Grievance Mechanisms for Human Rights

Respecting the Human Rights of All People

Approach & Policy

Hitachi believes that respecting human rights is our duty as a global company and essential to conducting business.
We refuse to engage in any acts that may impair individual dignity or discriminate on bases such as gender, sexual orientation, age, nationality, race, ethnicity, ideology, belief, religion, social status, family origin, disease, or disability.
We place great importance on engagement with stakeholders in order to understand and manage our impact on human rights. Stakeholders whose human rights are affected or may be affected by Hitachi’s operations include employees at Hitachi and its procurement partners, local communities, consumers, other individuals or groups whose livelihoods or working environments may be affected, industry associations, government entities, investors, NGOs/NPOs, and human rights organizations, etc.

Hitachi Group Human Rights Policy

Approach & Policy

In 2013, Hitachi conducted stakeholder dialogue inviting representatives from the European Commission, the International Labour Organization (ILO), NGOs, companies, and lawyers specializing in human rights issues, after which we formulated the Hitachi Group Human Rights Policy, positioned as one of the highest standards of internal company rules.
Hitachi has expressed respect for human rights in its Human Rights Policy based on the International Bill of Human Rights^*1 and the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work. The policy stipulates basic rights at work, including freedom of association and the effective recognition of the right to collective bargaining, the elimination of all forms of forced or compulsory labor, the effective abolition of child labor, the elimination of discrimination in respect of employment and occupation, and safe and healthy environment. In fiscal 2024, we are preparing for the revision of the policy in light of global trends. To revise this policy, we are not only conducting dialogue with experts both inside and outside the company, but also gathering opinions from regional headquarters as it is a policy that must be complied with across the entire group.
Additionally, Hitachi has been a member of the United Nations Global Compact since 2009. We declared our support for the UN Global Compact, which outlines a set of universal principles that companies should adhere to in the four areas of human rights, labor, the environment, and anti-corruption. Accordingly, we continue to pursue efforts in each area.
Hitachi also protects freedom of expression and the right to privacy, as recognized by international norms, such as the International Covenants on Human Rights, to ensure no violations of human rights. Hitachi conducts human rights due diligence (HRDD)^*2 in line with the UN Guiding Principles on Business and Human Rights,^*3 and provides appropriate education to employees. Furthermore, we comply with the laws and regulations in the regions and countries where we operate. Where there is a conflict between internationally recognized human rights and the laws and regulations of a specific country or region, Hitachi stipulates that it should seek to find a way to conform to the spirit of international standards.
With respect to the human rights of children, we are striving to ensure there is no child labor nor forced labor in our company or supply chain. The Hitachi Group Code of Ethics and Business Conduct stipulates that consideration be given to human rights, including those of children.

*1 International Bill of Human Rights: Collective name for the Universal Declaration of Human Rights and International Covenants on Human Rights adopted by the United Nations.

*2 Human rights due diligence (HRDD): An ongoing process to identify and assess potential and actual human rights negative impacts, take appropriate action to prevent or mitigate potential impacts, track the effectiveness of actions to address impacts, and communicate externally.

*3 Guiding Principles on Business and Human Rights; John Ruggie, Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises; March 2011.

Structure for Promoting Respect for Human Rights

Structure

Hitachi continues to strengthen human rights risk management worldwide through efforts that include tasking the Chief Sustainability Officer with groupwide human rights promotion and the formulation of policies based on the status of HRDD progress throughout the Hitachi Group. Our HRDD Promotion Secretariat, established within the headquarters of Hitachi, Ltd., (consisting of the human capital division, procurement division and sustainability division) takes charge of core promotion activities based on inter-divisional cooperation that include investigating HRDD promotion measures for the Hitachi Group and its procurement partners, preparing implementation-oriented manuals and guidelines, and responding to inquiries from Business Units (BUs) and group companies.
Hitachi comprises diverse business entities and must manage human rights risks by taking into consideration the characteristics of each business and its value chain. To achieve this, Hitachi appoints the heads of BUs and presidents of major group companies as HRDD promotion officers. HRDD execution managers are then appointed to take charge of HRDD execution in the respective BUs and group companies, convening HRDD Promotion Meetings. We take measures to advance the formulation and maintenance of an implementation framework, aiming to address global human rights risks. Subsidiaries of BUs and major group companies outside Japan work closely with regional headquarters to share region-specific issues (cultural and religious backgrounds, legislative trends, etc.) and discuss how to respond.
In addition, we hold the HRDD Execution Managers Meeting once or twice a year as an occasion for groupwide information sharing and deliberation. Important matters discussed by the meeting may also be deliberated and decided on by the Senior Executive Committee and reported to the Board of Directors as necessary. The Audit Committee, composed of independent directors, conducts operational audits on sustainability-related operations, while the responsible executive officer reports on important human rights issues.

Roles of Human Rights-Related Meeting Body and Organization

HRDD Roadmap and Targets

Strategy & Target

Activities

Materiality

Hitachi manages human rights risks according to the following HRDD process, based on the Human Rights Risk Management Implementation Manual prepared for practical use for each BU and group company, and in line with the UN Guiding Principles on Business and Human Rights.
By fiscal 2024, we will implement a series of HRDD processes to include determining and executing countermeasures (a post-risk assessment procedure), setting indicators for verifying the effectiveness of countermeasures, and explaining / disclosing information.

Target
FY2023 Target: Conduct human rights risk assessments at all BUs (10 BUs) and major Hitachi Group companies
FY2024: Respond to human rights risks

Implementation Status of Recent Major HRDD

Implementation Status of Recent Major HRDD

FY2021	Implemented countermeasures (provided corrective guidance, held workshops, published guide for considering measures to address, etc.) at each BU and group company based on the fiscal 2020 survey to address group common priority risks.
FY2022	BUs and major group companies conducted HRDD, and we held a total of four guidance sessions with Shift to assess human rights risks.
FY2023	Continued HRDD led by BUs and major group companies, and completed human rights risk assessments by all BUs and major group companies. Total of four guidance sessions with Shift carried out to understand the HRDD process after human rights risk assessments. Some of the leading BUs and group companies also looked at measures against salient human rights issues and the formulation of indicators to verify their effectiveness.

(1) Assess Risks

Based on the experience of addressing priority risks (forced labor, potential violations of migrant workers’ rights) across the group in fiscal 2021, Hitachi began business-specific HRDD in fiscal 2022 for each BU and major group company, taking into consideration the characteristics of respective businesses, value chains, and operating regions.
In fiscal 2023, we completed human rights risk assessments for all BUs and major group companies, and identified the following as salient human rights issues.

• Forced labor (including violation of migrant worker rights)
• Child labor
• Harassment
• Discrimination
• Health and Safety
• Freedom of association

(2) Integrate and Act and (3) Track

Some BUs and major group companies that identified salient human rights issues in the fiscal 2022 risk assessment considered specific measures and indicators to verify their effectiveness in fiscal 2023. The following is an example. In fiscal 2024, HRDD execution managers from some BUs and major group companies that have considered countermeasures will take the lead in promoting activities.

Examples of Risk Measures / Indicators at BUs and Major Group Companies

(4) Communicate

Hitachi disclose information on initiatives concerning respect for human rights, including HRDD, through our Sustainability Report, websites, and other means. We also strive to deepen an understanding of Hitachi initiatives through appropriate communication in response to questions, observations, and the like from investors, ESG evaluation organizations, NGOs, and media outlets. In addition, we incorporate opinions from both inside and outside our organization when considering future measures.

Engage Stakeholders

In fiscal 2023, Hitachi made preparations to revise the Hitachi Group Human Rights Policy, which was first formulated in fiscal 2013. For the revision, we received suggestions from Shift regarding consistency with the requirements of the United Nations Guiding Principles on Business and Human Rights and whether the wording was written from the perspective of risks to people. The opinions received are reflected in our revisions to the policy.

Measures to Prevent Harassment

Activities

Hitachi recognizes harassment as an abuse of human rights that can occur in the workplace, and so aims to create an open workplace where everyone is respected and feels comfortable expressing their opinions. Details of what constitutes harassment is included in the e-learning training on compliance which takes place every year for all Hitachi Group employees. To promote correct understanding and awareness around ways to prevent harassment, we created e-learning materials for the entire group in fiscal 2023 which, in addition to sexual and power harassment, includes examples and explanations on harassment that can occur in the workplace, such as balancing work with home and family life (maternity and paternity harassment), and balancing work with nursing care or medical treatment (care harassment). Unique initiatives also take place on business sites, for example, group training on harassment topics and workplace discussions.

Initiatives to Prevent Child Labor and Forced Labor

Activities

To prevent child labor, Hitachi reviews official documents to confirm that the age of an employee does not constitute child labor when he or she is hired. Our Business and Human Rights e-learning course and other awareness-raising materials offer case studies and other methods to inform employees that, in accordance with the UN Guiding Principles on Business and Human Rights, companies have a responsibility to respect the rights of their workers as well as those of their procurement partners with respect to child labor and forced labor.

Encouraging Procurement Partners to Conduct Activities

Activities

To deepen respect for human rights throughout our entire supply chain, Hitachi includes the Hitachi Group Human Rights Policy in the Hitachi Group Sustainable Procurement Guidelines for our procurement partners. We encourage an understanding of the Hitachi policy to strengthen respect for human rights and strive to ensure that our approach is put into practice. Moreover, the guidelines make it clear that child labor and forced labor must be eliminated. We ensure to raise awareness for human rights and engagement with procurement partners in our supply chain by efforts including Sustainability Procurement Seminars in various regions.
Since fiscal 2022, we have utilized EcoVadis^*1, a third-party evaluation platform, to assess and monitor our sustainability performance relating to human rights, including efforts to address forced labor and child labor. This assessment involved gathering written survey to understand the actual situation on the ground. We also conducted sustainability audits, including labor and human rights, in reference to responses to our written survey. We explained to our procurement partners the issues identified during the audits and requested that they make improvements.

*1 EcoVadis: A sustainability assessment service platform that evaluates companies in the four areas of the environment, labor and human rights, ethics, and sustainable procurement.

Sustainable Procurement

Human Rights Education and Raising Awareness among Employees and Executive Officers

Activities

In accordance with the Hitachi Group Human Rights Policy, Hitachi familiarizes Hitachi Group executives and all employees with human rights through a human rights message on the importance of respect for human rights from the President & CEO on Human Rights Day, human rights e-learning, and other efforts.
In Japan, we aim for every employee to attend annual group training, lectures, or video-based educational activities held at each business site or group company. In addition, we conduct various awareness initiatives that include onboarding training directed at new hires, training by job positions, and training for employees transferred abroad. In this way and others, we strive to convey to each employee the significance of respecting human rights in their own work.
In fiscal 2023, in addition to awareness-raising measures for all group executives and employees, we invited ACE, a non-profit organization that is engaged in solving the problem of child labor in multiple sectors, including corporate, to hold human rights seminars on the topic of business and human rights for employees in the procurement and sales divisions. Approximately 640 people took part, gaining basic knowledge about human rights issues centered on child labor and forced labor, and deepening their understanding of the responses companies are expected to take. Many participants commented on how they could understand the reality of human rights issues and how they relate to business, and also the importance of imagining whether any human rights abuses are taking place or not.
Regional headquarters for group companies outside Japan engage in various HRDD awareness initiatives tailored to local conditions to facilitate regional coordination and support. Examples include HRDD seminars for HRDD personnel in the region, HRDD awareness surveys for regional headquarters executives, and dialogues between outside experts and regional headquarters executives.

Implementation Status of Activities to Raise Awareness of Human Rights

Target	Details	Number of participants in FY2023
Hitachi Group executives and all employees	Distributed a human rights message by President & CEO on Human Rights Day (every year)	Approximately 325,000 emails sent to executives and employees
	E-learning course on business and human rights (provided in 15 languages, taken about once every three years)	Current course which started in November 2022 completed by more than 210,000 people as of the end of fiscal 2023

Initiatives to Promote Broad-Based Black Economic Empowerment (B-BBEE) in South Africa

Activities

Grievance Mechanisms for Human Rights

Activities

Hitachi established a groupwide internal reporting system called the Hitachi Global Compliance Hotline.
This system is a whistle-blowing system operated by a third-party organization, available in approximately 50 languages, and open to Hitachi Group employees, business partners, and other stakeholders. We investigate all reports, including those concerning human rights and harassment, and following verification of the relevant facts, we inform those who submitted reports of the investigation results. We make every effort to deal with situations as appropriate, including taking remedial action when necessary. The number of labor-related and harassment reports (including reports occurred in previous years) responded to during fiscal 2023 was 237 (of which 58 were compliance violations) and 566 (of which 229 were compliance violations), respectively.

Note:Hitachi normally refers to suppliers (including vendors and providers) as procurement partners, with whom we build business together on an equal footing