How is Hitachi Enhancing its Sustainability Efforts?
Hitachi Group's 2024 Sustainability Report highlights its achievements in reducing carbon emissions across its main business divisions: digital systems and services, green energy and mobility, and connective industries. The report highlights the role of manufacturing in its sustainability strategy.
With a global workforce of 270,000, Hitachi is involved in diverse sectors including information and telecommunication systems, social infrastructure and industrial systems, electronic systems and equipment, automotive systems, smart life and eco-friendly systems, rail, energy, digital transformation, green transformation and renewables.
Lorena Dellagiovanna, SVP & Executive Officer, Chief Sustainability Officer, CHRO, GM of Human Capital Group and CDEIO, said: "Looking back on fiscal 2023, we successfully met most of our sustainability goals and KPIs.
"We will continue to accelerate our evolution and enhance our practices to achieve more advanced sustainability management."
Commitment to carbon neutrality
Hitachi aims for business carbon neutrality by 2030 and full value chain neutrality by 2050.
Lorena emphasised the company's progress in decarbonisation, particularly through the 74% reduction in CO2 emissions at its business sites.
This reduction is largely due to the contributions of Hitachi Energy, the company's electric power transmission and distribution sector.
- 74% CO2 reduction at factories and offices since 2010
- 153 million tons of CO2 avoided emissions
- 198 new products identified as Eco-Design
- 146 sites (75%) achieved zero waste to landfill
- 30% reduction in water use per unit
The HVDC technology of Hitachi Energy has reached a grid-connected capacity of 150 GW.
This is equivalent to Japan's peak demand, illustrating the worldwide trend towards cleaner energy solutions.
In pursuit of these sustainability goals, Hitachi Energy has expanded its workforce with over 8,000 new hires and invested US$3bn into manufacturing, engineering and R&D since 2020.
"These efforts underscore our commitment to supporting our customers as long-term strategic partners and highlight the impact of our sustainability initiatives," said Lorena.
Adopting a sustainable business model
Recognising the need for efficiency and sustainability, Hitachi is transforming its traditional manufacturing processes by using fewer raw materials, water and resources.
Lorena explained that Hitachi is moving from a "sell-only" business model to a "service-type" model, focusing on product use rather than ownership.
"This shift not only aligns with our sustainability goals but also ensures we remain relevant and competitive in the evolving market."
AI's role in sustainability
As an organisation deeply engaged in digital transformation, Hitachi is exploring the role of AI in enhancing operational efficiencies within manufacturing, while balancing sustainability.
"In 2023, we witnessed an epoch-making technology, generative AI, take the world by storm, impacting industries and society as a whole," said Lorena.
Generative AI has the potential to enhance work efficiency, thereby allowing the workforce to engage in creative tasks.
However, its growth increases demand for data centres, leading to greater power consumption and CO2 emissions.
At Hitachi, the focus is on evaluating both the benefits and challenges of AI technologies.
Leadership insights on future strategies
To navigate these changes, Hitachi is enhancing its problem-solving capabilities through Lumada’s customer co-creation framework.
Hitachi is also preparing to adapt to fluctuating sustainability frameworks like the EU’s Corporate Sustainability Reporting Directive and others, ensuring its strategies remain aligned with global standards and societal expectations.
Lorena closed her introduction to the sustainability report by affirming Hitachi’s ongoing commitment to carbon reduction.
She said: "This approach has enabled Hitachi to grow sustainably, which I believe is reflected in our stock price, market value, and reputation for sustainability management, including our performance on ESG evaluations."
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