Hitachi Construction Machinery Acquires ISO 30414 Certification, Guidelines for Human Capital Reporting

Tokyo, November 30, 2023 – Hitachi Construction Machinery Co., Ltd. (TSE: 6305, President and Executive Officer: Masafumi Senzaki, "Hitachi Construction Machinery") announced today that it has acquired ISO 30414 certification^*1, international guidelines for human capital reporting.

ISO 30414 is one of the management system standards of the International Organization for Standardization which establishes guidelines as an international indicator for the quantification, analysis, and disclosure of human capital information about an organization's own employees. The guidelines consist of 11 areas and 58 metrics such as productivity and diversity, etc.

In recent years, "human capital" which views human resources as the source of enterprise value is attracting attention due to the growing interest in ESG management. Information disclosure regarding "human capital" has become required as information which is useful for investment decisions that take sustainable enterprise growth into account. Overseas, the U.S. Securities and Exchange Commission (SEC) announced in August 2020 that "human capital reporting" will become mandatory for listed companies. In Japan, information disclosure is becoming increasingly important with the requirement that companies start disclosing "human capital" information in financial statements for the fiscal year which ended in March 2023.

The human resource strategy of the Hitachi Construction Machinery Group is founded on the idea that "Our employees are the foundation of our business. Human resources are the true source of value creation, and linking the growth and the challenges of each individual to the advancement and development of the business," and we have promoted our management strategy and human resource strategy as one for quite some time. The strength of the Hitachi Construction Machinery Group lies in the roughly 25,000 diverse human resources around the world who possess the "Kenkijin Spirit^*2" of shared value standard and a code of conduct. We have implemented various measures including the training of digital human resources so that each of these diverse human resources can demonstrate their individuality and strengths to develop a system where they can win as a team.

Hitachi Construction Machinery is the first machinery manufacturer^*3 to acquire ISO 30414 certification. In conjunction with acquiring ISO 30414 certification, Hitachi Construction Machinery today announced the "Human Capital Report 2023" which summarizes the quantitative information regarding its human capital. Going forward, Hitachi Construction Machinery will disclose information in accordance with ISO 30414 and continuously review and improve its human resource strategy based on feedback from stakeholders with the goal of improving its medium to long-term corporate value.

*1 The ISO30414 certification was acquired by Hitachi Construction Machinery alone.
*2 Hitachi Construction Machinery's shared value standard and code of conduct consist of the 3Cs of "Challenge," "Customer," and "Communication."
*3 Refers to listed companies categorized within the "machinery" middle classification by industry type as established by the Japan Exchange Group.

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About Hitachi Construction Machinery Co., Ltd.

Hitachi Construction Machinery Co., Ltd. (TSE: 6305), headquartered in Tokyo, Japan, is a construction machinery manufacturer which globally deploys development, manufacturing, sales, and service businesses for its hydraulic excavators, wheel loaders, compaction equipment, and mining machinery, etc. In addition to its new machinery business, Hitachi Construction Machinery is expanding its "value chain businesses" of parts and services, remanufacturing (parts and machines), rentals, and used equipment as it aims to grow together with customers as a true solutions provider that offers innovative solutions to customers. With roughly 25,000 employees around the world, the consolidated sales revenue for Hitachi Construction Machinery was ¥1,279.5 billion for fiscal year 2022 (ended March 2023) with an overseas sales revenue ratio of 82%. For more details, please see the the company's website.

Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.