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Hitachi

Hitachi Transport System

HTS Group Sustainability

CSR/ESG

Management Philosophy

At the HTS Group, we are all about treating people and nature with great respect. In this connection, our fundamental policy is to do our part to help create an affluent society through fair business practices, as we boost our value for all of our stakeholders.

HTS Group's Stakeholders

HTS Group's Stakeholders

The HTS Group manages and maintains its business activities through interaction with our broad array of stakeholders including customers, shareholders, local communities, and local administrations.

Basic CSR Policy

Under the corporate philosophy, the HTS Group promotes activities in line with the Basic CSR Policy with an aim to realize a sustainable society through communication with our various stakeholders and integrate sustainability and management.

Basic CSR Policy

Recognize Recognition of Social Responsibility
Properly recognize social and environmental issues and expectation
Act Corporate Activities
Identify relevant issues, establish priorities for addressing issues, and act on them
Review and Improve Review and Improve
Review and Improve CSR activities through proactive communication and stakeholder engagement

Sustainability Promotion Structure

In order to promote sustainability on a group-wide level, the HTS Group has set up the "Sustainability Promotion Committee," chaired by Senior Vice President and Executive Officer, General Manager of Corporate Strategy Office, and holds meetings regularly.

HTS Sustainability Promotion Structure

Recognition of Social Responsibility: Material Issues

Taking into consideration opinions of external experts, we understood and prioritized social/environmental issues and expectations to identify material issues in 2017 after assessment and examination for adequacy by CSR Promotion Committee (predecessor of the Sustainability Promotion Committee) and the management, as well as approval of the Executive Committee. With the recognition of the identified material issues as the social responsibility that the HTS Group should fulfill, we promote effective activities toward solving social issues.

Identification process

・Step 1: Understood issues

With reference to global common standards including Global Reporting Initiative (GRI) guideline, ISO26000, UN Global Compact, SDGs, and priority issues in transportation sector by ESG rating agencies, we created a list of 73 items of relevant environmental, social and economic issues.

・Step 2: Prioritized issues

We evaluated "impact on society" and "impact on the HTS Group's business" of the 73 issues on the list on a scale of one to five through workshops with external experts and mapped them in a matrix. Then, we categorized items with high impact into 15 proposed material issues.

・Step 3: Validated and identified

After those 15 proposed material issues were assessed and examined for adequacy by CSR Promotion Committee and the management, taking into consideration opinions of external experts, they were identified as the Group's material issues with an approval of the Executive Committee.

Process of Material Issue Identification

Material issues

Social
・Safe and healthy work environment (occupational safety and health)
・Social and environmental responsibility in supply chains (socially responsible procurement)
・New technologies (creating/utilizing innovations and cutting-edge technologies)
・Diversity and employee development
・Job creation (promoting employment in the local community)
・Dialogue with employees (labor-management relations, collective bargaining)
・Respect for human rights (addressing global human rights issues)
・Quality and safety (service quality and safety)
・Environmentally and socially responsible logistics services
Environment
・Carbon (decarbonization)
・Stopping pollution
・Renewable energy (use of clean energy)
Governance
・Compliance/governance
・BCP
・Information disclosure (operational transparency)

material Issue, materiality

Corporate Activities: Development of Four Objectives

To decide specific activities for the issues that we should address with priority, we developed four objectives based on the material issues with CSV*viewpoint. In FY2018, the HTS Group set theme and relevant KPIs for each objective, based on which we started to strengthen our initiatives using PDCA cycle.

*CSV (Creating Shared Value): Refers to practices that balance activities to create economic benefits with solutions to social issues, or management strategies to achieve them.

Our Objectives

We will focus on four objectives to drive innovation forward in supply chains with an eye to creating a sustainable society.

The HTS Group is committed to supporting supply chains, which are the foundation of society and industry, through our logistics and related businesses. Working to meet the wants and needs of people today, we will move forward to take the lead in enabling supply chains to solve various social and environmental problems with an eye to creating a sustainable society.

We will focus on four objectives to drive innovation forward in supply chains with an eye to creating a sustainable society. Objective 1:Pursue Next-generation Industries and Lifestyles, Objective 2:Enhance Occupational Safety and Productivity, Objective 3:Ensure Excellent Quality and Resilience
Objective 4 Realize:Decarbonized Business Processes

The HTS Group is fully aware of the importance of achieving the Sustainable Development Goals (SDGs*), the universal goals the international community is aiming to reach by 2030.
Among the 17 SDGs the following eight goals are especially relevant to our objectives. We will work with various stakeholders to do our part in achieving these SDGs as we move into high gear to reach our objectives.

Among the 17 SDGs the following 8 are especially relevant to our objectives. Goal 5: Gender Equality, Goal 7: Affordable and Clean Energy, Goal 8: Decent Work and Economic Growth, Goal 9: Industry, Innovation and Infrastructure, Goal 11: Sustainable Cities and Communities, Goal 12: Responsible Consumption and Production, Goal 13: Climate Action, Goal 17: Partnerships for the Goals

※SDGs:Sustainable Development Goals
SDGs were unanimously adopted by 193 UN member nations at the UN Sustainable Development Summit held in September 2015. SDGs are essentially a universal call to action, involving both developing as well as developed countries, and a commitment to "leave no one behind."

Core competencies

We believe that strengthening our core competencies is crucial to implementing initiatives that will enable us to realize our objectives. Our three core competencies, advanced technologies, personnel/organization/global network, and open innovation, are all interwoven with one another. Enhancing each core competency will create the synergy that will enable us to reach out four objectives.

Core Competencies. Advanced technologies, Personnel/organization/global network, Open innovation

Four Objectives

Objective 1: Pursue Next-generation Industries and Lifestyles

With the power of logistics, we will develop businesses to support the realization of the next-generation sustainable industries and social infrastructure in various areas across the globe.

Themes Initiatives
(1)Promote total optimization of supply chain by making full use of advanced technologies Enhancement of logistics platform
Development of trainings that promptly meet business needs
(2)Respond to local logistics needs and issues while further boosting response capability Expansion of high-quality logistics services
Optimization/management of supply chains
Promotion of transportation of social infrastructure-related equipment
Closely related SDGs

SDG8

SDG9

SDG11

SDG12

SDG17

Objective 2: Enhance Occupational Safety and Productivity

We will work on realizing further occupational safety and enhancing productivity in logistics sites across the globe.

Themes Initiatives
(1)Secure safety in operation and transportation Enhancement of occupational Health and Safety management
Strengthening of transport safety management
(2)Minimize workload at logistics sites Promotion of automation/labor saving in logistics centers
(3)Promote diversity of the workplace Systematic development of female employees
Support for career formulation of female employees
Encouragement for male employees to take childcare leave
Reduction of overtime hours
Encouragement to take annual paid leave
Development of OPEX designer
Implementation of social contribution activities for local community
Closely related SDGs

SDG5

SDG8

SDG17

Objective 3: Ensure Excellent Quality and Resilience*1

We will pursue quality of the next-generation logistics that meets the social expectation and resilience against disaster and climate change.

Themes Initiatives
(1)Pursue high quality logistics services Enhancement of compliance framework
Boosting information security level/management structure
Strengthening of BCP system
Enhancement of domestic and overseas procurement compliance
(2)Consideration for disposal and emission Reduction of air pollutants
Promotion of resource recycling
Protection of forest timber resources
(3)Contribution to disaster recovery assistance Strengthening of BCP system
Implementation of social contribution activities for local community
Closely related SDGs

SDG9

SDG11

SDG13

SDG17

Objective 4: Realize Decarbonized Business Processes

While we steadily proceed with initiatives to enhance efficiency of energy and resources, we will also work on decarbonizing*2 from the long-term perspective.

Themes Initiatives
(1)Increase energy efficiency Reduction of electricity consumption in "buildings"
Increase of vehicle fuel efficiency
Promotion of introducing double-trailer trucks
Promotion of joint use of logistics and transportation equipment
Development of new customers/routes for modal shift
Proactive promotion of streamlining transportation through establishing platform, integrated delivery sites, and container round use
(2)Introduce renewable energy Shift to eco-friendly vehicles with better environmental performance
Ongoing eco-friendly driving training
(3)Strengthen environmental management Performance of internal environmental audit
Development of voluntary environmental activities in each site
Review of the environmental management system
Enhancement of overseas environmental management
Promotion of continuous improvement by the environmental management system
Promotion of employees' understanding through education and enlightenment activities to raise their environmental awareness
Closely related SDGs

SDG7

SDG17

*1 Resilience: Defined as "the capability of a people or things to recover quickly from difficult conditions such as shock and injury" or "the ability to return to its original form after being bent, stretched or compressed."

*2 Decarbonizing: Reduce the emission of greenhouse gases including CO2 to virtually zero. Decarbonization requires one step further than "low carbonization" focusing on reduction of emissions.

Four Objectives of the HTS Group and Key Performance Indicators (KPIs)

In FY2018, the HTS Group identified theme for our objectives to be started in FY2019 and relevant KPIs, based on which we will strengthen our initiatives using PDCA cycle.

Review and Improvement: Information Disclosure and Communication

We will review and improve our activities through disclosure of ESG information and dialogues with stakeholders based on objectives. By repeating a cycle of basic policy for CSR promotion, we will promote effective activities toward a resolution of social issues and facilitate integration of sustainability and management.

Web publication policy

This website publishes the basic concepts, results of activities for FY2019, and future plans for sustainability of the Group for the purpose of creating understanding in stakeholders. For disclosure, comprehensive information is published on activities related to sustainability promotion centering on ESG. In addition, as for the booklet, non-financial information and financial information have been integrated and published as Annual Reports since 2016, but from the 2020 edition, the Integrated Report is being newly issued instead of the conventional Annual Report.

Reference guidelines

  • GRI (Global Reporting Initiative) "GRI Sustainability Reporting Standards (GRI Standards)"
  • ISO26000
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