Sustainability Steering Committee
Hitachi Rail is committed to understand the needs and expectations of its people and involve them in capacity and skills development projects. Its focus is on the constant monitoring of the satisfaction of its customers/stakeholders and it plays an active role in the management of relationships with local communities.
The Committee’s mission is to govern the company vision and long-term environmental goals, while respecting and protecting social relations, in pursuing continuous improvement of governance through a global structure, incorporating effective decision-making and implementation. It proposes all locations and all employees of Hitachi Rail, creating an evergreater value proposition for customers and stakeholders
The SSC has the task of directing the strategic business guidelines for governance practices for Sustainability and Corporate Social Responsibility. SSC gives the mandate to the specific organisational group unit (SHEQ/R&D) to implement and to achieve the objectives of continuous improvement, environmental protection and social respect, in the interest of the various stakeholders and communities in which the business is delivered.
The Committee (SSC) reports directly to the Chairman and CEO of Hitachi Rail and works in partnership with Hitachi Ltd.’s Sustainability Promotion Division (SusD).
Main Authority and Duties
▪ Sustainability and corporate responsibility policies, strategies and programs. The Committee will oversee, approve and provide input to the Company on the Company’s policies, strategies and programs related to sustainability and corporate responsibility issues, assessing their KPIs and risks.
▪ Social Trends. The Committee shall consider analyses and provide input to the company to respond promptly to social needs.
▪ Relations with Stakeholders. The Committee regularly analyses relations with the main external Stakeholders (Clients/Committees/etc.) concerning issues of sustainability and corporate social responsibility that may have a significant impact on the Company’s activities and performance.
▪ Social Responsibility. The Committee will examine social responsibility policies and programs and provide guidance and relevant approvals for the social development of the communities in which we operate.
▪ Reporting. The Committee examines and approves the reports and reports on sustainability and social responsibility, addressing the related internal communications.
Global Business Management System
The Global Business Management System (GBMS) is the unique set of rules common to the whole Hitachi Rail organisation. It is designed to cover, with the same approach and methods, the activities of all Hitachi Rail companies. The GBMS is the core element of a business model that combines all related components of a business into one system for easier management and integrated operations, as shown in picture. The GBMS helps the organisation to establish the objectives and policies (strategy execution), the organisation’s structure, roles and responsibilities (organisational roles), its operation practices and rules (process excellence), and its platforms and tools (enterprise architecture).
The implementation project started in April 2020 just after the establishment of the One Hitachi Rail organisation, and has displayed excellent progress in a number of different areas. In particular, about the Organizational Area (lead by HR), the Organization Chart, Roles & Mandates and the Project Organization Structure.
The Process Excellence area that looks after our Processes and Procedures is progressing well with the central Functions (overall progress around 70%) with most of their processes (belonging to the Strategy, Customer and Support Clusters) already completed and published on new COSMO GMBS area, while the Execution Processes inside the lines of business are progressing at a different speed based on the integration activities complexity.
New COSMO AREA – Internet platform
Social Responsibility and Sustainability Department (CSR&S)
Being a completely sustainable company is a huge, responsibility and a very stimulating challenge. It means being able to say that you really make a difference, which will last for generations to come!
Hitachi Rail has culture and skills coordinated and integrated by the Social Responsibility and Sustainability Department (CSR&S), led by Ulderigo Zona, Group HSE.
The CSR&S team evaluates, launches, and coordinates global and local initiatives and the governance necessary to achieve the company targets with the highest efficiency.
Inside Hitachi Rail, the SHEQ Department (Safety Health and Quality) is responsible for all aspects of Corporate Social Responsibility and Sustainability (CSR&S) through the Company Sustainable Steering Committee.
Hitachi Rail defines the sustainability and corporate social responsibility strategy based on innovation and aims to be at the forefront of a great wave of change:
▪ Technological, because the world experience a continuous flood of changes which it must face with intelligence, in a context of digital innovation for which Hitachi Rail inside Hitachi have all the necessary skills and solutions.
▪ Economic, taking into account the geopolitical changes and the centre of gravity of the world economy moving from the West to Asia. While some countries are facing rapid population ageing due to an extremely low birth rate, the global population is growing. With a clear shift of the Supply and Demand axis towards those countries with the fastest growth.
▪ Cultural, a way of thinking which means the change in mentality and habits necessary to address the global environmental issues and social disparity that in 2015 led the United Nations and our companies to commit to the SDGs.
Health, Safety and Environment (HSE) Management System
HSE Department provides the Global Management Systems, reporting arrangements and assurance for the Company. The function challenges, coaches and supports the businesses to ensure that HSE Risks are effectively managed. Failure to do so could compromise the achievement of the Company’s Objectives, leading to incidents and reputational damage
HSE issues could have a high potential impact on the company:
▪ Failure to manage HSE Risk effectively threatens our business continuity. It can lead to adverse public opinion, and loss of customer trust and could significantly impact the firm reputation and ability to raise capital.
▪ HSE maintains and improves a positive reputation for HSE Excellence. Hitachi Rail is a reliable partner for existing and new customers, driving continuous improvement in HSE to meet and exceed market expectations.
Strong and competent HSE Management also helps to avoid criminal, civil or administrative sanctions:
▪ Judiciary actions with possible permanent sanctions and severe financial impact (equal or greater than € 1.5 M and/or Criminal, Civil, Administrative sanctions. This could include the incarceration of Group senior managers, which could disrupt the operations of the entire Company.
▪ The Company Enterprise Risk Map identified HSE failure as Company key risk. Those strategic key risks are reported to the CEO and monitored by Board of Directors. The HSE department interacts with and influences Executives and the Country legal Representative to drive the continuous improvement of our HSE Culture. s.
Quality, Health, Safety and Environmental certifications
Listed below are the certifications of Hitachi Rail sites relating to Quality (ISO 900 and IRIS), Health and Safety (ISO 45001) and Environmental (ISO 14001).
The Genoa office is also ISO 27001 certified (information security management) and in 2019 it obtained the CMMI certification (Capability Maturity Model Integration).
PRODUCTION SITES
| COUNTRY | CITY | IRIS | ISO 9001 | ISO 45001 | ISO 14001 |
|---|---|---|---|---|---|
| USA | Batesburg | ☑ | ☑ | ☑ | ☑ |
| FRANCE | Riom | ☑ | ☑ | ☑ | ☑ |
| UNITED KINGDOM | Newton Aycliffe | – | ☑ | – | ☑ |
| ITALY | Tito Scalo | ☑ | ☑ | ☑ | ☑+EMAS |
| Naples | ☑ | ☑ | ☑ | ☑ | |
| Pistoia | ☑ | ☑ | ☑ | ☑ | |
| Reggio Calabria | ☑ | ☑ | ☑ | ☑ |
TRAIN MAINTANCE CENTRE
| COUNTRY | CITY | ISO 9001 | ISO 45001 | ISO 14001 |
|---|---|---|---|---|
| UNITED KINGDOM | Ashford | ☑ | ☑ | ☑ |
| UNITED KINGDOM | Doncaster | ☑ | ☑ | ☑ |
| UNITED KINGDOM | Landore Swansea | ☑ | ☑ | ☑ |
| UNITED KINGDOM | Edinburgh (Craigentinny) | ☑ | ☑ | ☑ |
| UNITED KINGDOM | London (North Pole) | ☑ | ☑ | ☑ |
| UNITED KINGDOM | London (Bounds Green) | ☑ | ☑ | ☑ |
| ITALY | Service & maintenance activities | – | ☑ | ☑ |
OFFICE SITES
| COUNTRY | CITY | ISO 9001 | ISO 45001 | ISO 14001 |
|---|---|---|---|---|
| UNITED KINGDOM | London – Head office | ☑ | ☑ | ☑ |
| London | ☑ | ☑ | ☑ | |
| FRANCE | Les Ulis | ☑ | ☑ | ☑ |
| SPAIN | Madrid | ☑ | ☑ | ☑ |
| Zaragoza | ☑ | ☑ | ☑ | |
| SWEDEN | Stockholm | ☑ | ☑ | ☑ |
| Solna | ☑ | |||
| DENMARK | Copenhagen | ☑ | ☑ | ☑ |
| ITALY | Genoa | ☑ | ☑ | ☑ |
| Naples | ☑ | ☑ | ☑ | |
| Piossasco | ☑ | ☑ | ☑ | |
| SAUDI ARABIA | Riyadh | ☑ | ☑ | ☑ |
| PERU | Lima | ☑ | ☑ | ☑ |
| TAIWAN | Taipei | ☑ | ☑ | ☑ |
| MALAYSIA | Kuala Lumpur | ☑ | ☑ | ☑ |
| USA | Pittsburgh | ☑ | ☑ | ☑ |
| AUSTRALIA | Brisbane | ☑ | AS/ZNS 4801:01 | ☑ |
| Newcastle | ☑ | AS/ZNS 4801:01 | ☑ | |
| Perth | ☑ | AS/ZNS 4801:01 | ☑ | |
| Sidney | ☑ | AS/ZNS 4801:01 | ☑ | |
| Karratha | ☑ | AS/ZNS 4801:01 | ☑ | |
| INDIA | Kolkata | ☑ | ☑ | ☑ |
| Noida | ☑ | ☑ | ☑ | |
| Bangalore | ☑ | ☑ | ☑ | |
| CANADA | Toronto | ☑ | ☑ | ☑ |
| CINA | Bejing | ☑ |
Ethics and integrity
Code of Ethics
The Hitachi Group Code of Ethics is a crucial pillar of Hitachi’s Group Compliance Program, providing rules, values and principles that are required to be followed by employees, executives and directors, and third parties engaging in business with Hitachi Rail. The same rules, values and principles are also intended to assist officers and employees in making business decisions and acting in alignment with Hitachi’s Group Identity.
The management of Hitachi Rail continuously confirms the commitments and ethical responsibilities, setting an example and promoting a culture of ethics that allows Hitachi to preserve a good reputation amongst our clients, partners, Stakeholders and our community.
Whistleblowing
With the objective of maintaining high ethical standards and working in compliance with the applicable laws and regulations, whilst also promoting a safe environment to report potential or suspected violations, Hitachi Rail has a dedicated SPEAK UP channel whereby anyone can report any suspected violations of the Group Code of Ethics or any violation of laws and regulations.
The SPEAK UP channel is available:
▪ Online through this link
▪ By phone (available 24-7) through a toll-free number provided on the following link above.Furthermore, for any suspected violations of Law 231, a dedicated channel has been made available by reporting to OdV@hitachirail.com
Out of the countries in which it operates can be reported to the following channels made available both for internal resources and third parties through various channels. Online reporting system: this is available 24-7 for reporting via telephone and/or online through this link*.
The company ensures whistleblower protection and that no-one in the workplace is subject to any direct or indirect retaliation, illegal conditioning and/or discrimination ng treatment of any kind, for having made reported in a good faith report of a violation to the following channels.
*For Hitachi Rail STS S.p.A: odv231@hitachirail.com; for Hitachi Rail S.p.A: odv@hitachirail.com
Competition Law
Hitachi Rail engages in business across the world based on principles of adherence with the law and business ethics as well as fair and open competition in compliance with EU competition laws, and those of other regions in which Hitachi Rail conducts business. Furthermore, the Group’s Global Compliance Programme incorporates rules concerning competition law as well as related business standards and guidelines.
Hitachi Rail has constant training sessions where employees, directors and management are made aware of competition laws & regulations and the proper conduct to adopt.
Modern slavery
Hitachi Rail Limited recognises the importance of identifying and preventing the action andcauses of modern slavery in our business and supply chain. In its fifth statement, published under Section 54 of the UK Modern Slavery Act 2015, Hitachi Rail has detailed the steps it has taken to address modern slavery and human trafficking in the business and supply chain. A separate Modern Slavery Statement that complies with the Australian Modern Slavery Act 2018 has been lodged with the Australian Government for the reporting period from April 2020 to March 2021.
Anticorruption
Hitachi Rail is committed to tackling corruption and preventing the risk of unlawful practices.
The Group promotes and implements a corporate culture inspired by responsibility, fairness and ethics, and basing its activity on ethical values and compliance. This is critical for the achievement of corporate goals and success in the market, as well as influencing the relationships with any parties with an interest in Hitachi Rail. In carrying out its activities, the Group considers integrity and respect for Laws, including Anti-Corruption laws and regulations, as fundamental ethical principles to conduct business and requires its Groups’ senior management to set the example for all employees and co-workers with their behaviour.
Within the Hitachi Rail Group Compliance program, a dedicated compliance governance structure has been established as well as an Anti-Corruption Policy whereby. The various Group Companies have defined a Manual to provide principles, roles, and responsibilities. The manial also, identifies the main risk areas of corruption as well as the elements in place to be implemented to manage the risk of corruption within the Group effectively.
Risk description
Minimal visibility and increased regulation on Environmental, Social and Governance supply chain risk.
Growing acceptance for mandatory due diligence and judicial solutions in holding parent companies in home states accountable for abuses throughout their operations.
Lack of adequate safeguards in supply chain and insufficient assessments and monitoring. Changes in Government requirements mid contract.
Supplier non-compliance.
Increased volume of Suppliers globally.
Organisational, Management and Control Model
In relation to the entry into force of Legislative Decree no. 231/01, as amended and supplemented, which introduced a specific regime of liability for the companies in regards to certain types of crimes, Hitachi Rail STS S.p.A. and Hitachi Rail S.p.A has adopted the appropriate measures to prevent such liability from arising for the company, with the implementation of specific protocols and supervision systems designed to prevent the commission of the crimes included in the Decree and which may potentially be committed by Directors, Statutory Auditors, executives, employees or by any person who has a contractual, financial or commercial relationships with Hitachi Rail STS S.p.A and Hitachi Rail S.p.A.
For this purpose, both Hitachi Rail STS S.p.A. has companies which have adopted an Organisation, Management and Control Model pursuant to Legislative Decree no. 231/01 (the Model), which has been subsequently updated following subsequent regulatory and organizational changes
Gender Pay Gap Report
Gender pay gap reporting in the UK reflects the importance of diversity and inclusion to Hitachi Rail’s plans for business growth. A predominance of male employees characterises the rail sector and, if Hitachi Rail is to meet the demands of a modern railway, it must introduce people new to the industry from a multitude of backgrounds and who possess different skills. Equally importantly, greater diversity enables to creation of the best, most innovative products and services for customers and the wide cross-section of passengers they serve.
Having calculated the company gender pay gap using the reporting regulations, Hitachi Rail in the UK is committed to providing fair and equal pay for its people. Hitachi Rail will continue to strive for a more diverse workforce and to ensure that rail business and all Stakeholders share in the many benefits this will deliver.
Export & Trade Compliance
The failure to comply with regulations on export, import, re-export or re-transfer of products (tangible or intangible), technologies, information, and services (hereinafter Goods) classified as “Dual-Use” has exposed several Companies to administrative and criminal sanctions, reputational damage risks, as well as significant financial losses.
Hitachi Rail shares the concerns of the international community on the proliferation of weapons of mass destruction and the excessive accumulation of conventional weapons. Therefore, Hitachi Rail undertakes to comply with all applicable export and trade compliance laws and regulations.
Hitachi Rail does not deal in military products.
Since 2018, all Hitachi Rail Companies have developed Export Control procedures, policies and a Manual to prevent, manage, and monitor the risk of non-compliance with the applicable legislation and regulations.
Now, in a “One Hitachi” fully integrated perspective, Hitachi Rail has developed an efficient and effective Export and Trade Compliance applicable to all Line of Business (LoB) and Hitachi Rail Companies to prevent, manage, and monitor the risk of non-compliance with the applicable legislation and regulations on export, import, re-export, or re-transfer of goods classified as “Dual-Use”. The above-mentioned Export and Trade Compliance meets the standard controls required by the Regulation in force and the best practice (here included the European Commission Recommendation) and based on the following seven pillars:
1. Top-level management commitment to compliance.
2. Organisation structure, responsibilities and resources.
3. Training and awareness-raising.
4. Transaction screening process and procedures.
5. Performance review, audits, reporting and corrective actions.
6. Recordkeeping and documentation.
7. Physical and information security.
In order to reach this target, Hitachi Rail exercised and exercised Export and Trade Compliance due Hitachi Rail has implemented an efficient and effective compliance program providing a risk management tool applicable to the complexities and specific characteristics of all Companies of the Group (a new Hitachi Rail ETCP Manual was issued on July 2021 and is applicable to all the Lobs and Hitachi Rail companies).
In 2019 Hitachi Rail started the classification of all the products manufactured in each Hitachi Rail factory. The Classification of all Signalling & Turnkey products, has been completed in 2020 for the products manufactured in Italy, and the Company is now completing the classification of few remaining products manufactured in US and France Factories. Some products manufactured by S&T has been classified Dual Use (i.e. typological Racks, boards and software).
With reference to the products manufactured by Rolling Stock Line of Business, adopting the same approach used in S&T LoB, in Q3 FY2020 RS LoB started the classification of products manufactured by the Italian RS Factories. The classification of products is expected to be completed within FY 2021.
All Hitachi Rail Employees – especially those directly involved in trade, export, transfer, re- export and re-transfer activities/processes – are requested to operate in full compliance with the Laws and Regulations in force. In order to create an Export and Trade Compliance Culture, various training opportunities have been organised (an e-learning has been launched for all
the employees and specific training sessions have been organised for the Employees directly involved in the activities related to Export and Trade compliance).
Stakeholders engagement
For Hitachi Rail, social responsibility translates into the daily focus and care of its relations with Stakeholders. Understanding their needs and expectations is achieved through the definition and implementation of specific tools for dialogue and interaction.
In this sustainability report, Hitachi Rail has aimed to present the different ways in which it interacts with its Stakeholders, distinguishing between:
▪ Opportunities for information: one-directional communications from the company to its Stakeholders;
▪ Consultation/dialogue: when the company asks for Stakeholders’ opinions (e.g., through surveys, polls, focus groups, etc.) or sets up permanent discussion groups;
▪ Partnerships: specific projects implemented and/or managed jointly with Stakeholders.
The description aims to provide a clear understanding of the margins for improvement in the methods of Stakeholders engagement, aiming to progressively intensify dialogue and partnership opportunities to create shared value.
CUSTOMERS
OPPORTUNITIES FOR INFORMATION
▪ Periodic project meetings
▪ Meetings with customer senior and top management
▪ Participation at trade fairs, conferences and opening ceremonies
▪ Communication via the social media
CONSULTATION DIALOGUE
▪ Customer satisfaction survey
▪ Hazard Workshop to test the safety of products and solutions
▪ Open Day to collect feedback from end users
PARTNERSHIPS
▪ Joint venture agreements
SUPPLIERS
OPPORTUNITIES FOR INFORMATION
▪ Requests for information, references, and catalogues.
▪ Structured feedback to suppliers, recorded as to the progress of their qualification within the suppliers portal.
CONSULTATION DIALOGUE
▪ Requests for technical and price-based bids and negotiations
▪ Online survey of sustainability issues (TenP of Global Compact Network Italy Foundation)
▪ Sharing of the necessary corrective actions requested and planning of actions following non-compliances discovered during the performance evaluation stage with the suppliers.
PARTNERSHIPS
▪ Medium- to long-term supply contracts
NATIONAL AND EU PUBLIC INSTITUTIONS
OPPORTUNITIES FOR INFORMATION
▪ Institutional communications (internet news, press releases, etc.)
CONSULTATION DIALOGUE
▪ Consultations about potential partnerships for research projects
PARTNERSHIPS
▪ Joint research projects
LOCAL COMMUNITIES
OPPORTUNITIES FOR INFORMATION
▪ Reports on the progress of projects to the local community (together with the local institutions)
CONSULTATION DIALOGUE
▪ Participation in local stakeholder committees
▪ Rail user satisfaction surveys
PARTNERSHIPS
▪ Participation in local community development projects and CSR initiatives
MEDIA
OPPORTUNITIES FOR INFORMATION
▪ Regular institutional communications
CONSULTATION DIALOGUE
▪ Consultations for more details of specific issues
HUMAN RESOURCES
OPPORTUNITIES FOR INFORMATION
▪ Information about the company’s performance, delivery of its main projects, acquisitions of new orders
CONSULTATION DIALOGUE
▪ Employee engagement analysis through launching of a yearly global survey
▪ Assessment of managers by groups of peers (360° for executives)
▪ Talent selection and development programmes
▪ Coaching sessions for international work teams (Project team effectiveness)
PARTNERSHIPS
▪ Partnership with the Faculty of Electrical Engineering at the University of Genoa, with membership of the careers guidance committee.
▪ Collaboration with the Department of Civil, Construction and Environmental Engineering of the University of Rome “La Sapienza” in relation to the Level II Masters in “Infrastructural and Rail Systems Engineering”
LENDING INSTITUTIONS
OPPORTUNITIES FOR INFORMATION
▪ Invitations to participate in deals
▪ Communication and presentation of project data
CONSULTATION DIALOGUE
▪ Meetings to present projects and their details
▪ Contract negotiation (guarantee texts, credit letters and pricing negotiation)
PARTNERSHIPS
▪ Partnership for the guarantees related to the O&M Riyadh Metro and O&M Riyadh Princess Noura, mRing 3 Copenhagen, Tel Aviv Red Line, Mumbai Line 3 and the Florence Hub projects
▪ Partnership and beauty contest for guarantees relative to the newly acquired projects, among which O&M Riyadh
LOCAL AUTHORITIES/ PUBLIC ADMINISTRATION
OPPORTUNITIES FOR INFORMATION
▪ Regular institutional communications
CONSULTATION DIALOGUE
▪ Ongoing dialogue on different occasions and for jointly-managed projects
PARTNERSHIPS
▪ CSR projects jointly-managed with local institutions
INDUSTRY ASSOCIATIONS
OPPORTUNITIES FOR INFORMATION
▪ Institutional communications (internet news, press releases, etc.)
CONSULTATION DIALOGUE
▪ Consultations about potential partnerships for research projects
PARTNERSHIPS
▪ Joint research projects
DIGITAL USERS/SOCIAL NETWORK
OPPORTUNITIES FOR INFORMATION
▪ Regular institutional communications
CONSULTATION DIALOGUE
▪ Ongoing communications and regular updates of the website
PARTNERSHIPS
▪ Partnerships with social networks to develop web communications and relations.
Involvement with local communities
For Hitachi Rail, social responsibility translates into the daily focus and care of its relations with Stakeholders. Understanding their needs and expectations is achieved through the definition and implementation of specific tools for dialogue and interaction.
Hitachi Rail plays a leading role in managing relations with local communities, be they municipal authorities, residents’ associations, metro and rail service users, businesses or local workers, adopting different methods depending on the type of commercial project.