Page 51 - Hitachi IR 2025

with various Committees, play
a pivotal role in guiding the
strategic direction of the Company,
while ensuring compliance with
regulatory requirements and
best practices. This structure not
only enhances transparency, but
also fosters a culture of integrity
and ethical conduct throughout
the organization.
while ensuring ethical conduct
and transparency at every level.
Further, our corporate governance
framework also promotes
ethical practices throughout the
organization, while transparent
communication ensures effective
engagement with the stakeholders.
Your Company is also certified for
ISO 37001:2016 for anti-bribery
management system.
Responsible leadership
Your Company is built on
promising leadership pillars that
provide purposeful direction,
fostering connections among
individuals to promote their
potential, enhance performance
and achieve purpose-driven
growth. The Board of Directors,
composed of esteemed individuals
recognized for their competence
and integrity, exemplifies a strong
commitment to the Company
through their active participation in
meetings. Their collective wisdom,
strategic guidance and unwavering
dedication to excellence are
instrumental in shaping your
Company’s trajectory as a leader
in delivering innovative, reliable
and sustainable energy solutions.
This robust leadership framework
not only drives operational
success, it also reinforces the
commitment to creating value for
all the stakeholders.
Governance framework
The Company’s governance
structure plays a crucial role in
shaping the decision-making
process, ensuring that it is aligned
with the strategic objectives and
the interests of all the stakeholders
at large. Our governance structure,
aligned with the global code of
ethics and business conduct, is
crucial in supporting the delivery
of our strategic objectives,
Internal control framework
Our internal control framework is
designed to safeguard the interests
of all stakeholders by fostering
an environment conducive to
effective operations. It addresses
both financial and operational
risks through a comprehensive
structure that includes a country
management committee, group
directives and instructions,
local management instructions,
entity‑level controls, process level
controls and management testing
programs. This holistic approach
ensures that our control processes
are proportionate to the size and
complexity of the Company.
Internal audit
Your Company has a
well‑established, independent,
multi-disciplinary internal audit
team which operates in accordance
with governance best practices,
providing valuable insights to
the management and the audit
committee regarding compliance
with internal controls, operational
efficiency and key process risks.
Compliance
Compliance is a vital foundation
of the Company’s operations,
ensuring that all the relevant
laws and industry standards
are met. Our commitment to
integrity and accountability is
reflected in the comprehensive
compliance framework,
supported by the “Legatrix
software”, which automates the
mapping of applicable laws and
assigns responsibilities to all the
stakeholders. Quarterly compliance
certificates are collected from
various departments/functions
and reviewed at quarterly board
meetings, reinforcing the dedication
to compliance and governance.
Ethics
The Company’s code of ethics and
business conduct consists of rules
and principles to assist leaders and
employees in making decisions and
acting ethically and in line with the
Company’s identity. Your Company
has developed and implemented
a systematic approach designed
to prevent, detect and resolve any
potential integrity concerns. This is
supported by tools and processes
and a zero-tolerance policy for any
violations. The policy is available
at https://www.hitachienergy.com/
in/en/investor-relations/board-of-
directors
Whistle-blower policy/vigil
mechanism
The Company has adopted
a whistle-blower policy/vigil
mechanism for all the directors,
employees and third-parties
to report their concerns about
unethical or inappropriate behavior,
actual or suspected fraud or
violation of the company’s code
of conduct, leak of unpublished
price-sensitive information and
related matters. The whistle-blower
policy is available at https://www.
hitachienergy.com/in/en/about-us/
our-people-and-culture/integrity/
reporting-channels/whistleblower-
protection-policy
Integrated Annual Report 2024-25
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