Modern Slavery Act 2015 Statement 2017 - 2018
Hitachi Europe recognises the importance of identifying and preventing the action and causes of Modern Slavery in our business and supply chain. This statement, our third made under Section 54 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 to 31 March 2018.
Hitachi Europe Limited 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 Maidenhead, with significant presences in London, Cambridge and Liverpool. We also have branch offices in Istanbul (Turkey), Warsaw (Poland), Johannesburg (South Africa) and Copenhagen (Denmark), and representative offices in Vilnius (Lithuania) and Bucharest (Romania), which are involved in sales and/or business development.
Our Maidenhead 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. These include:
- The Digital Media Group – sources and sells LED TVs, projectors, flat screen panels, sound bars, digital receivers, security solutions and accessories. Consumer products are available in the UK via retailers such as Argos;
- The Information Systems 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; and
- 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
We also provide corporate and administrative services to other Hitachi Group companies. Our UK business, and its overseas branch and representative offices, employs approximately 281 people and had a turnover in the 2017 financial year of approximately £150 million.
Our supply chain
A significant proportion of the products we supply are manufactured by Hitachi Group companies in Japan with others coming from Asian markets including China, Malaysia, Thailand and the Philippines. We have approximately 54 active trade suppliers (of which over 20 are Hitachi Group companies) and approximately 1098 non-trade suppliers.
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 as much as possible.
We continue to refer to our company and Group policies, which address issues relevant to slavery and human trafficking and which include:
- The Hitachi Group Codes of Conduct (LINK)
- The Hitachi Group Human Rights Policy (LINK)
- The Hitachi Guidelines for Procurement Activities (LINK)
- Written employment practices and procedures which ensure fair recruitment and treatment of employees.
- A written whistleblowing procedure to encourage employees to report concerns of malpractice, which would include any concerns related to slavery and human trafficking issues.
Our progress to date
Over the last year, we have:
- Improved supply chain assessment and communication
- We previously requested information from our business groups to map our suppliers to assess the potential risk of modern slavery being present. We have identified the gaps in this information and will request further information to complete this process.
- Through Hitachi, Ltd. our suppliers have received a revised version of the Hitachi Group CSR Supply Chain Guidelines. These guidelines address relevant labour standards for suppliers such as freely chosen employment, minimum worker age, working hours, wages and the expectation of humane treatment.
- Provided awareness raising and building expertise
- Our CSR Team presented to procurement colleagues across Hitachi Group companies on Modern Slavery in the supply chain at the annual Hitachi Group European Procurement Meeting.
- We held workshops with relevant colleagues from Hitachi Europe business groups to outline expectations related to modern slavery and human rights and to discuss future plans.
- We requested employees undertake the online e-learning programme we procured in FY2016. The training, raises awareness of different forms of modern slavery and trafficking and explains how these should be reported. All employees were requested to undertake the training by Hitachi Europe’s Managing Director to coincide with a message from Hitachi, Ltd. President and CEO Toshiaki Higashihara on international Human Rights Day.
- We ran a collaborative learning project for those responsible for procurement across Hitachi Group companies in Europe. Supported by Shift, an expert Human Rights non-profit organisation, the project focused on addressing social issues in the supply chain through two workshops.
- Workshop 1 explored the core concepts of the Guiding Principles and discussed how these apply in practice to a company’s procurement practices.
- Workshop 2 discussed application in practice, with a specific focus on possible changes that could be made to procurement practices to better identify, prioritise and address human rights risks that participants identified might arise in their supply chains.
- Collaborating with external organisations and stakeholders
- We continued to participate in or are members of:
- The UN Global Compact’s UK Modern Slavery Working Group (MSWG), taking part in a Modern Slavery statement peer review exercise with members of the MSWG and feeding learning across Hitachi Group companies. We have benefited from cross-sector learning, including presentations and discussion with the Chartered Institute of Building, Hope for Justice (a global non-profit organisation) and the UK’s Independent Anti-slavery Commissioner.
- CSR Europe’s Human Rights Group, which has allowed us to build enhanced capability through training on Human Rights Due Diligence.
- BSR (Business for Social Responsibility), a global not for profit, participating in their Human Rights Working Group. We took part in peer learning, openly discussing challenges and solutions.
- SHIFT’s Business Learning Program, benefiting through shared learning on best practice and support from peers and stakeholders.
- TechUK’s Sustainable Supply Chain group, providing access to learning from peers in the tech sector on Modern Slavery.
- Monitoring progress
- We have started identifying potential relevant KPIs to monitor progress.
Our future plans
Over the coming year we plan to focus on the following areas:
- Improved supply chain assessment and communication.
- Identify high risk suppliers including clarifying expectations.
- Monitoring progress.
- Finalise KPIs to monitor progress.
- Awareness raising and building expertise.
- Building on the outputs from the workshops held with Group Businesses we will look to develop a Human Rights Working Group for relevant procurement colleagues in Hitachi Group companies in Europe to embed Human Rights Due Diligence processes and identify tools to support the due diligence. This will provide a common platform for peer learning.
- Further develop our risk analysis of our suppliers and increase awareness with key suppliers as appropriate.
- Increase employees’ participation in the modern slavery e-learning programme and in particular identify key functions for a more targeted approach.
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 2018. It has been approved by Hitachi Europe Limited’s Board of Directors.