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      Hitachi Construction Machinery

      Global

      Materiality

       

      Key Initiative Themes

      In FY2015, the HCM Group, along with outside experts and other external stakeholders, analyzed key CSR themes as a step toward achieving its goal for further growth. Taking into account recent trends in the global society at the time, we pinpointed 40 social issues, which we believed had a strong correlation with our business operations. We mapped out these issues and assessed them based using two parameters; their significance to HCM Group businesses and the expectations the public has of the HCM Group. From this we were able to define eight CSR initiative themes that factored in the opportunities and risks of each issue.

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      8 Key Initiative Themes
       

      CSV theme 1 Resolving global environmental issues

      Global environmental issues including climate change are extremely important issues that could threaten the very survival of humankind.Solutions or adaptation to these issues requires inclusive initiatives and in particular companies are expected to play an important role. The HCM Group is working to reduce the environmental impacts of its products throughout the entire life cycle and to provide environmentally conscious solutions through ICT, IoT and open innovation.

      Targets

      CSV2030 Long-term goals Reference year 2030 reduction rate 2019 progress rate
      [Product]
      CO2 saving by products
      FY2010 33% 64%
      [Product]
      Fuel reduction of hybrid hydraulic excavators
      FY2010 50% 80%
      [Production]
      Improvement rate of energy basic unit in production
      FY2005 40% 84%
      [Production]
      Improvement rate of waste basic unit in production
      FY2005 40% 103%
      [Production]
      Improvement rate of water basic unit in production
      FY2005 50% 112%

      Key Initiatives

      • Environmental impact reduction in manufacturing processes
      • Develop and deliver Eco-Products, low carbon construction machinery, dismantling, and recycling machinery
      • Utilize ICT and IoT
      • Applications for disaster recovery and disaster prevention
      • Eco-friendly mining operation solutions
      • Green infrastructure solutions
       

      CSV theme 2 Enhancing initiatives to increase social infrastructure workforce

      In the future the world will need infrastructure development that underpins an affluent life and promotes industrial development. It will also need commodities development that generates a stable supply of energy to be carried out in a way that contributes to a sustainable society. The HCM Group is addressing various issues faced by work sites including labor shortages and a lack of experienced technicians, while utilizing cutting-edge technology including ICT.

      Targets

      • Contribute to enhanced site productivity for customers using ICT and IoT
      • Reduce life cycle costs and improve utilization rate of customer machinery
      • Improve the safety of machinery and prevent occupational injuries on site
      • Contribute to alleviating the shortage of skilled technicians through advancement of machinery and systems

      Key Initiatives

      • Provide solutions to optimize mining processes and management
      • Achieve stable machinery operations and the reduction of life cycle costs
      • Popularize machinery and systems that increase work efficiency
      • Develop and delivery labor-saving machinery that is unmanned/uses robotics
       

      CSV theme 3 Contributing to community development

      In order to develop and grow in local communities, a company must understand the various characteristics of each local community and aim to grow together with it. The HCM Group, considering local communities to be an important stakeholder, aims to realize a sustainable society through activities that contribute to the development of communities while harnessing the characteristics of its business operations.

      Targets

      • Support the self-reliance of emerging countries through infrastructure development
      • Create jobs in the local community through the parts remanufacturing business
      • Support environmental activities in the local community

      Key Initiatives

      • Develop machinery and human resources that meet regional requirements
      • Support the development of overall community infrastructure utilized Hitachi Group integrated capability
      • Provide financing and machinery to support infrastructure development
       

      Base Theme 1 Pursuing safe, effective, and sophisticated products and working environments

      In 1950, HCM became the first to mass produce a mechanical excavator using purely Japanese technologies. With our excellent technical capabilities as a foundation, we deliver innovative and highly reliable products. we make construction machinery that is safer and more efficient for workers, and we are working collectively as a group to further increase site productivity.

      Targets

      • Realize the vision of “Made by Hitachi” uniform worldwide quality
      • Develop talented manufacturing technicians
      • Improve service support capabilities

      Key Initiatives

      • Develop technologies to secure safety and quality and to differentiate
      • Provide accurate information on products and services
       

      Base Theme 2 Occupational safety and work style reform

      Every company maintains the important duty of protecting its employees from occupational injuries and health problems. Moreover, ensuring a good work-life balance and work environment that enables employees to thrive will also enhance corporate value. The HCM Group is promoting workplaces where its diverse workforce can fully contribute its skills, under the basic philosophy of giving priority to safety and health in everything we do.

      Targets

      • Make efforts to completely eliminate occupational injuries
      • Increase the number of business sites with ISO 45001 (occupational health and safety management system) certification
      • Reduce the total overtime of employees (indirect workers) to a monthly average of 15 hours or less by FY2020 (HCM non-consolidated basis)
      • Increase the average number of annual paid leave days taken by all employees to 17 or more days by FY2020 (HCM non-consolidated basis)

      Key Initiatives

      • A fair work environment
      • Global management for health and safety of employees
       

      Base Theme 3 Developing human resources globally and locally

      It is becoming more difficult for companies to secure the human resources they need due to the diversification of work styles and changes in values, among other factors.
      Fostering of human capital is critical to improving productivity given Japan’s limited labor force. The HCM Group is now promoting various initiatives aimed at developing both global human resources who can play an active role around the world and local human resources who can carefully respond to the needs of local markets.

      Targets

      • Develop human resources development system that takes into account local cultures and business practices
      • Expand educational opportunities for developing global human resources
      • Transform the diversity of our workforce into an engine of organizational growth

      Key Initiatives

      • Management localization
      • Development and recruitment of local human resources
      • Global personnel management leveraging diversity
       

      Base Theme 4 Creating better business transactions and value chains

      The business activities of the HCM Group, which offers diverse products and services around the world, are made possible with the support of many business partners and customers.
      The HCM Group shares its vision and policies on CSR with suppliers to promote CSR activities across the entire value chain.

      Targets

      • Maintain a sound relationship with supplies and governments
      • Promote fair and free competition and ensure consumer interests
      • Prevent risks within the supply chain

      Key Initiatives

      • Suppliers and human rights
      • Fair sales partnerships
      • Fair procurement
      • Corruption prevention
       

      Base Theme 5 Governance

      In order to enhance competitiveness as a company and enhance corporate value over the long term, it is crucial to accurately understand global trends and shifts in management environment as well as establish a structure for decision making.
      The HCM Group is strengthening its governance system in order to establish a structure to promptly and reliably execute management strategies as well as realize a fair and transparent management style.

      Targets

      • Establish a fair and highly transparent organizational framework
      • Respect international principles on human rights
      • Respond to diversifying global risks
      • Instill and establish awareness of compliance

      Key Initiatives

      • Strengthen global governance
      • Management transparency
      • Fair tax strategies
      • Risk management, including ESG
       

      Overview of CSV

      csv_img01

       

      Approach to Value Creation

      Hitachi Construction Machinery Group’s CSV involves value creation maximizing “economic value and environmental value” for all people involved in the society toward which we aspire in the three areas of “Manufacturing” “Using” and “Challenge.”

      We are aiming for the reduction of environmental cost (including suppliers) through “Manufacturing”, increase of revenue thanks to improved environmental value from products and business through “Using”, and the expansion of business opportunities by solutions to global environmental problems through “Challenge.”
      Our efforts in expansion of business and environmental value are tied to securing stable profit for the group in the long term.

      We are managing and promoting some of our products and services related to environmental CSV in conjunction with the goals set within the medium-term management plan.
      Going forward, we will formulate even more systematic strategies for environmental CSV overall.

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