Hitachi Rail STS has conducted an initial mapping of its supply chain with respect to compliance with Environmental, Social and Governance (ESG) criteria.

Indeed, the standard purchase order model includes general supply conditions and compliance with the Code of Ethics; furthermore, when vetting new suppliers, Ansaldo STS gathers information on their compliance with quality, hygiene, health and safety in the workplace standards and their environmental policies and requires certification according to standards ISO 9001, ISO 14001 and OHSAS 18001. These characteristics are preferential requisites and are considered in the eligibility score awarded to each supplier. The results of the mapping were as follows:

Number of suppliers in the register by direct and indirect product types (2010-2016) 16,146 15,025 17,059
Total active suppliers 3,321 3,250 2,983
Number of suppliers covering 80% of the value of orders 136 190 192
Qualified suppliers (Classes A and B) 311 124 166
of which1:    
ISO 14001 certified suppliers 42 17 13
OHSAS 18001 certified suppliers 37 15 7

As Hitachi Rail STS continues to increase its operations in emerging countries, when vetting and qualifying suppliers the Company has established a preference for large companies that, ideally, hold quality, environmental and safety certificates. For this reason, in 2017 there was an increase in the number of qualified Class A and B2 companies and an increase in those in possession of ISO 14001 and OHSAS 18001 certifications.

Mapping is the first step in the definition of the specific sustainability policy for the supply chain. The main guidelines of this policy will be:

  • audit activities on site suppliers, including a review of sustainability performance, with technical controls on products for suppliers of materials;
  • collaboration between Hitachi Rail STS and suppliers in product design;
  • activities to inform suppliers about sustainability issues;
  • the extension of annual monitoring activities to A Class suppliers.

1 The figures for 2017 have been estimated in proportion to the 2016 data.

2 Class A = suppliers with higher business impact; suppliers with medium business impact.