Page 84 - Hitachi IR 2025

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
April 1, 2024
-
March 31, 2025
Current Financial Year
April 1, 2023
-
March 31, 2024
Previous Financial Year
Details of improvements in environmental and social impacts
Capex ` 10,78,62,940 ` 1,35,63,252 Key energy and water conservation projects include roof top
solar and integration to microgrid and substation at Maneja,
construction of 10 rainwater harvesting structures in 2
locations with flow meter. Purchase of battery operated forklift
and reach truck. Substituting the water-cooled vacuum with
air-cooled vacuum pump in Helium plant; installation of 8 solar
streetlights and water meters installation
1. Social and environmental aspects are incorporated into R&D through:
 Environmentally Conscious Design (ECD). ECD aims to reduce a product’s environmental impact, while
maintaining or improving its functionality of the product. Integration of environmental aspects as early as possible
into the product design and development process offers flexibility to make changes and improvements to our
products. This enables us to make effective decisions about environmental aspects that we control.
Safety in Design: Incorporating design solutions for identified hazards and reasonably foreseeable risks that
may occur as the product is manufactured, transported, installed, serviced and disposed of. The Company’s
designers also consider the behavior of design components in context of the product life span – for example, how
often a component might fail during the product life and the potential impacts of such failures. Consideration is
also given to post- life aspects through the elimination or minimization of exposure to toxic or environmentally
damaging materials designed into the product.
HSE Checklist for the Company's Gate Model: The HSE Checklist helps to identify key Health, Safety,
Environmental (HSE) and Sustainability aspects in the Company’s product and technology development
projects. R&D systematically and comprehensively identifies and assesses health, safety and environmental
risks and opportunities.
Guideline for material selection: Environmental impact of a product is determined by the material and energy
inputs and outputs generated at all stages of its life cycle: raw- material acquisition, manufacture, distribution,
use and disposal. Material selection guidance on for energy conservation, pollution prevention, resource
conservation, promotion of a safe work environment is provided to reduce impact of product on the environment.
Every year projects focusing on environmental improvements are identified in our operations as part of their
environment management program and budget allocated.
a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
Yes
Our Supplier Code of Conduct (SCoC) defines the principles by which we require our partners to conduct
business. We are committed to sourcing goods and services from suppliers who fully comply with
these standards.
The Company also has several programs in place to ensure sustainable sourcing
• The supply base management process enables the Company to partner with suppliers across the entire
supply chain lifecycle, from registration and qualification to performance evaluation and classification.
• The Supplier Sustainability Development Program (SSDP) targets suppliers with higher sustainability
risks and offers the program by prioritizing the partners according to a risk matrix.
• The Sustainability Assessment via EcoVadis evaluates suppliers across four areas: environmental, social,
ethics, and supply chain. This assessment was launched in 2021 as to augment the SSDP.
• The Responsible Minerals Sourcing Program identifies suppliers in the conflict minerals survey and
offers regular training and communications for our suppliers and internal teams to work toward ensuring
compliance with our Conflict Minerals Policy.
The Company’s non-negotiable requirement is only to do business with fully-qualified, compliant, and
high-performing suppliers. The Supply Chain Management (SCM) team implements dedicated programs
to monitor, assess, and report performance and progress against various indicators, including health
and safety, environmental impact, integrity, quality, and human rights. Among these is the Supplier
82 Hitachi Energy India Limited