In a trend of growing interest in corporate social responsibilities worldwide, Hitachi Construction Machinery Group is promoting sustainable activities throughout the entire supply chain including procurement partners. We believe it is important to share the same sustainable awareness with our business partners to prevent supply chain risks.
In July 2021, Hitachi Group established “Hitachi Group Sustainable Procurement Guidelines (4th Edition)”. This is the revised version of ‘’Hitachi Group CSR Procurement Guidelines (3rd Edition)”. These revised Guidelines were established based on the Hitachi Group’s efforts for sustainability including the policies, initiatives, and widely recognized latest global standards. This guideline sets out a code of conduct to be observed by suppliers and Hitachi Group’s policies and code of conduct. In addition, Hitachi Group also has published “Green Procurement Guidelines (Ver.11.1)” as the revised versions of “Green Procurement Guidelines (Ver.11.0)” in July 2021.
The purpose of those revisions is for suppliers to easily understand Hitachi Group policies and requests. We have integrated the Policies and Code of Conduct into “Hitachi Group Sustainable Procurement Guidelines” and separately publish the manual as “Green Procurement Guidelines (Ver.11.1)”. Hitachi has distributed them to our suppliers and requested to be carefully read, in order to follow these Guidelines. These Guidelines are expected to be fully implemented by all our suppliers.
Through a designated supplier selection process at Procurement department, we implement sustainable procurement by comprehensively assessing whether the supplier is fulfilling social responsibilities or not. In addition to supplier evaluation by product quality, reliability, delivery, price, business stability and R&D ability, the below factors which are specified in “Guidelines for Procurement Activities” are also taken in consideration to realize sustainable in Procurement; fair and highly transparent information disclosure, compliance with laws and social norms, respect for human rights, elimination of discrimination, elimination of child and forced labor, environmental preservation activities, social contributions, good working environment, and recognition of social responsibilities with procurement partners.
In addition, to reinforce compliance efforts, we revised procedures for internal audits in November 2017. We do rigorous audits on new suppliers which include confirmation of environmental and CSR factors, such as anti-bribery measures.
Hitachi Group Sustainable Procurement Guidelines
Guidelines for Procurement Activities