Hitachi's Masterplan for Sustainable Growth Right on Track
Hitachi is one of the most highly diversified technology companies anywhere in the world, designing and manufacturing everything from microwaves to high-speed railway systems, all supported by a workforce more than 270,000 people strong.
As such a global company, with such a large and varied supply chain, Hitachi naturally has to contend with a sizable carbon footprint.
In its latest sustainability report, though, Hitachi detailed a series of impressive advancements towards its net zero ambitions.
The report, which looks over the group's ESG performance, was released towards the tail end of 2024 and it showcases how technology can be put to work in the pursuit of sustainability.
"We successfully met most of our sustainability goals and KPIs,” Lorena Dellagiovanna, EVP & CSO of Hitachi Group, said in the report.
“We will continue to accelerate our evolution and enhance our practices to achieve more advanced sustainability management.”
Hitachi's sustainable progress
Hitachi's aim is to achieve carbon neutrality across its business operations by 2030 and throughout its value chain by 2050.
“Some of the notable progress we made in the area of environment relates to decarbonisation and circular economy,” Lorena says.
She says that “good progress” is being made on Hitachi's internal sustainability efforts, including a 74% reduction in CO₂ emissions at the group's business sites.
Hitachi Energy, one of the group's major branches, renowned for its specialty in renewables, has made a big contribution to Hitachi's recent sustainable successes.
“Significant contributions came from Hitachi Energy, which specialises in electric power transmission and distribution," Lorena explains.
"The total grid-connected capacity of Hitachi Energy’s HVDC technology now stands at 150 GW, equalling Japan's peak demand.
"This milestone reflects the increasing global shift toward clean energy.”
Hitachi Energy has recruited more than 8,000 new employees worldwide to carry out its newest sustainable initiatives, while also investing US$3bn in manufacturing, engineering and R&D since 2020, a great deal of which has gone towards decarbonisation.
“These efforts underscore our commitment to supporting our customers as long-term strategic partners and highlight the impact of our sustainability initiatives,” Lorena says.
As a whole, Hitachi Group is in a transitionary moment. The leadership team want to shift their business model from a "sell only" approach to a "service type" approach, which would mean that Hitachi gets a better oversight on how its products and materials are used.
“This shift not only aligns with our sustainability goals but also ensures we remain relevant and competitive in the evolving market," Lorena says.
- 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 role of AI in Hitachi's sustainability
Recently, AI has played a central role in Hitachi’s sustainability strategy.
“In 2023, we witnessed an epoch-making technology, Gen AI, take the world by storm, impacting industries and society as a whole,” Lorena explains.
“Gen AI can significantly improve work efficiency, allowing people to focus on more value-added and creative tasks.
“However, as its use expands, the demand for data centres will rise, leading to increased power consumption and CO₂ emissions.”
This is the double-edged sword dilemma that many technology companies are facing today. On the one hand, AI can help businesses increase their efficiency, helping them to cut down on wasted energy. On the other, AI and its associated technologies are extremely energy intensive.
“At Hitachi, we aim to analyse both the positive and negative impacts of Gen AI from multiple perspectives, including environmental impacts and ethical implications,” Lorena says.
“Our goal is to derive optimal solutions that enhance society’s wellbeing while staying within planetary boundaries.”
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