Global Business Management Systems
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), organisation’s structure, roles and responsibilities (organisational roles), operation practices and rules (process excellence), platforms and tools (enterprise architecture).
Health, Safety and Environment (HSE) Management System
The HSE Department provides the Management System, reporting arrangements and assurance for the related Company HSE Risks that could compromise the achievement of the Company’s Objectives.
HSE issues could have high potential impact on the company:
▪ HSE Risk threatens business continuity. Adverse Public Opinion and Client lobby groups widespread at global level, could significantly impact the firm reputation and ability to raise capital.
▪ HSE has to set, maintain and improve a positive reputation of HSE Excellence contributing as a reliable partner for current and new customers, driving continuous improvement in HSE to meet and exceed market expectations.
Quality, Health, Safety and Environmental certifications
Listed below are the certifications of Hitachi Rail sites relating to Quality (ISO 9001 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).
|COUNTRY||CITY||IRIS||ISO 9001||ISO 45001||ISO 14001|
|UNITED KINGDOM||Newton Aycliffe||–||☑||–||☑|
|COUNTRY||CITY||ISO 9001||ISO 45001||ISO 14001|
|UNITED KINGDOM||Landore Swansea||☑||☑||☑|
|UNITED KINGDOM||Edinburgh (Craigentinny)||☑||☑||☑|
|UNITED KINGDOM||London (North Pole)||☑||☑||☑|
|UNITED KINGDOM||London (Bounds Green)||☑||☑||☑|
|ITALY||Service & maintenance activities||–||☑||☑|
|COUNTRY||CITY||ISO 9001||ISO 45001||ISO 14001|
|UNITED KINGDOM||London – Head office||☑||☑||☑|
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 as the protagonist of a great wave of change:
because the world reports 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.
taking into account the geopolitical changes and the center 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 explosively. With a clear shift of the Supply and Demand axis towards those countries with the fastest growth.
▪ Cultural (of a way of thinking),
because the change in mentality and habits is clear, only partly already started to address problems such as global environmental issues and social disparity that in 2015 led the United Nations and our companies to commit to the SDGs.
Hitachi Rail promotes and invests in the research of new ideas and in the development of new solutions to improve the quality of life of the main stakeholders (customers, employees and, finally, our planet).
The company continues to promote and aims to increase the use of recycled materials and reduce greenhouse gas emissions, innovate the processes of recycling products, and design efficient products and solutions.
At the same time, thoughts inevitably turn to the impact of the pandemic on people’s lives. Hitachi Rail knows that some changes and adaptations, such as remote working, could become the new normal in the future.
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 plays an active role in the management of relationships with local communities.
Committee’s mission is to achieve the company vision and long-term environmental goals, respecting and protecting social relations, in pursuing continuous improvement of governance through a global structure, with effective decision-making and implementation. It’s dedicated to all locations and all employees of Hitachi Rail, creating an ever-greater 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 (CSR). 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 developed.
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). The Committee makes decisions, requests and verifications regarding three macro areas of intervention:
▪ resource efficiency and environmental management process and the Group’s social report;
▪ compliance with the relevant law and rules;
▪ performance and results monitoring.
Ethics and integrity
The Hitachi Group Codes consist of rules and principles (Ethics, Conduct, Supplier Code of Conduct, Compliance Manual) intended to assist officers and employees in making decisions and taking actions in accordance with the Hitachi Group Identity.
The management of Hitachi Rail continuously confirms the commitments and ethical responsibilities, which must guide the conduct of the business and corporate activities of all of those who have relationships of any kind whatsoever with Hitachi Rail.
Hitachi Rail, in order to achieve its targets, bases its activity on values which are shared by all Directors, Senior Management, Employees and all of those who operate within its global structure.
Hitachi Rail promotes knowledge of and compliance with the Code of Ethics and laws and regulations. In case of any non-observance or violation, appropriate disciplinary action or contractual sanctions takes place. Any violations of laws and regulations of the countries in which it operates can be reported to channels made available both for internal resources and third parties. The company ensures that no-one in the workplace is subject to any retaliation, illegal conditioning and discriminating treatment of any kind, for having made a good faith report of a violation.
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 of other regions in which Hitachi Rail conducts business. Furthermore, the Groups 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.
Hitachi Rail Limited recognises the importance of identifying and preventing the action and causes of modern slavery in our business and supply chain. In its fourth 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.
Hitachi Rail is committed to tackling corruption and preventing the risks of unlawful practices. The Group, promotes and implements a corporate culture inspired by responsibility, fairness and ethics, basing its activity on ethical values and compliance, critical for the achievement of corporate goals and success in the market and influencing the relationships with any parties with an interest in Hitachi Rail. In this regard, the Group in carrying out its activities considers integrity and respect for Laws, including Anti-Corruption laws and regulations, as fundamental ethical principles and requires its Groups’ senior management to set the example for all employees and co-workers with their behaviour.
The various Group Companies have defined a Manual to provide principles, roles and responsibilities, identifies main risk areas of corruption as well as the main elements to be implemented to manage effectively the risk of corruption within the Group.
The failure to comply with regulations on trade, export, import, re-export or re-transfer of goods (tangible or intangible), technologies, information, and services classified as “Dual-Use” has exposed and exposes several Companies to administrative and criminal sanctions, reputational damage risks, as well as significant financial losses.
Hitachi Rail shares the concerns of international community on the proliferation of weapons of mass destruction and the excessive accumulation of conventional weapons, therefore the Group decides to comply with the all applicable export control laws and regulations.
In order to reach this target Hitachi Rail will exercise Export and Trade Control due diligence against any possible illicit transactions and contribute to the maintenance of international peace and security.
Hitachi Rail ensure that no products are provided and no trade is carried out in any country or any entity in violation of the above laws and regulations.
In order to achieve strict compliance, Hitachi Rail are developing in all Companies an Export and Trade Compliance Program (hereinafter ECP) in order to prevent, manage and monitor the risk of non-compliance with the applicable legislation and regulations on trade, export, import, re-export or re-transfer of goods (tangible or intangible), technologies, information, and services classified as “Dual-Use”.
Hitachi Rail undertakes to implement an efficient and effective compliance program providing a risk management tool applicable to the complexities and specific characteristics of all Companies of the Group; all Hitachi Rail Employees – especially those directly involved in trade, export, transfer, re-export and re-transfer activities/processes – are requested to operate in fully compliance with the Laws and Regulations in force.
A Hitachi Rail Target is to provide an ECP that meet the standard controls required by the World Wide Best Practice (included the European Commission Recommendation 2019/1318).
Gender pay gap reporting in the UK reflects the importance of diversity and inclusion to Hitachi Rail’s plans for business growth. Rail sector is characterised by a predominance of male employees and, if Hitachi Rail has to meet the demands of a modern railway, it has to introduce people new to the industry from a multitude of backgrounds and possessing different skills. Equally importantly, greater diversity enables to create the best, most innovative products and services for customers and the wide cross-section of passengers they serve.
Having calculated company gender pay gap using the reporting regulations, Hitachi Rail in the UK is providing fair and equal pay for its people. Hitachi Rail will continue to strive for goals for a more diverse workforce and to ensure that rail business and all stakeholders share in the many benefits this will deliver.
Involvement with local communities
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.
Hitachi Rail is actively involved in programs to communicate and interact with the communities affected in various ways:
▪ Participation in committees that represent local stakeholders.
▪ Promotion of communication between the local authorities and citizens.
▪ Engagement in direct communication.
▪ Participation in programmes to develop local communities.
Hitachi Rail’s initiatives supporting communities falls under a CSR strategy that calls for cooperating in the implementation of the 2030 Sustainable Development Goals established by the United Nations.
Corporate Social Responsibility in Hitachi Rail manifests itself in different ways with a general coordination given by the strategy and mission of the company, but even more through the direct relationship with local stakeholders. Respect for diversity and attention to equal opportunities therefore has different interpretations in the territories where the company operates.
Partnerships for sustainable development
Commitment to the UN Global Compact
Once again, this year Hitachi Rail confirmed its support to the Global Compact, the voluntary United Nations initiative that encourages respect for human rights, labour, the environment and fights against anti-corruption through a series of 10 principles. The Group’s membership in the initiative reiterates its commitment to the Global Compact and its main principles as an integral part of the company’s strategies and workplace culture.
During the fifth Italian Business & SDGs Annual Forum, held in Rome on 13-14 October 2020, Hitachi Rail won the Promoting Founder Award by Global Compact Network Italy, the local branch of the UN initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies.
Hitachi Rail and 11 other companies and non-business entities won this award to recognise the company’s position among the founding members of the Italian Network in 2009 and the company’s commitment to supporting the network’s sustainability and CSR principles and initiatives.
This award is further proof of the commitment of Rail business in sustainability and corporate social responsibility (CSR), but also of the entire Hitachi Group: Hitachi Ltd is also an active member of the UN Global Compact Network as from 2009.
Hitachi Rail actively participates in UNIFE projects (association of European railway builders), UNISIG (association of European railway signalling companies) and UITP (international public transportation association), ANIE (National Federation of Electro technical and Electronic Companies), AICQ (Italian Association for a Quality Culture), the Italian partner of EFQM (European Foundation for Quality Management), Cosila (Consortium for safety in the workplace) and Industrialists’ Union, Italy’s main organisation representing Italian manufacturing and service companies, in Naples and Genoa, specifically.
Within the scope of UNIFE, Hitachi Rail collaborates to promote the extension of the use of railway transportation through the implementation of technological standards (ERTMS and TSI) and by proposing European research projects to improve safety, energy efficiency and environmental protection in the field of railway transportation.
Taxonomy and green finance
Taxonomy and sustainable finance: the European Commission recently presented essential documents as an action plan for a greener and cleaner economy. The project that was initiated in March 2018, aims to channel capital towards a low-intensity carbon economy.
In May 2018, the European Commission began implementing the first measures contained in the Action Plan, by introducing three regulatory proposals related to:
▪ the taxonomy of eco-compatible activities;
▪ low-carbon benchmarks and positive carbon impact;
▪ institutional investors’ disclosure on ESG risks.
The European Commission subsequently appointed the Technical Expert Group on Sustainable Finance (TEG), comprising a multi-stakeholder group of experts brought together by the Commission to establish the guidelines for sustainable finance in Europe and to provide consulting on four specific issues referring to: taxonomy, prioritising environmental issues and more specifically, on the mitigation and adaptation to climate change; improving the guidelines on reporting information related to climate; the introduction of a European Green Bond Standard; common criteria to build low-carbon benchmarks and a positive-carbon impact.
Within this European initiative, Hitachi Rail contributes to the work required of the group of experts (TEG) in its sector, both through the European association (UNIFE), and in the context of Hitachi, providing their own evaluations and experiences to identify the metrics that the European Community will use to assess the performance and possible financial support.