Hitachi’s Bold Sustainability Strategy Powers Carbon Neutral Future

Hitachi Group is ramping up its sustainability initiatives, taking bold steps to cut carbon emissions and adopt cleaner technologies across its global operations. The company’s 2024 Sustainability Report showcases major progress in its journey toward carbon neutrality, particularly through efforts in its core divisions: Digital systems and services, green energy and mobility, and connective industries.

With a global workforce of 270,000 and operations spanning IT systems, energy, rail, electronics, and automotive solutions, Hitachi’s impact on the environment and its ability to drive meaningful change are substantial.

Substantial Progress in Carbon Reduction

Hitachi has committed to achieving carbon neutrality in its business operations by 2030 and across its entire value chain by 2050. One of the most striking achievements highlighted in the report is a 74% reduction in CO₂ emissions at its business sites since 2010. This success is largely credited to Hitachi Energy, the company's electric power transmission and distribution arm, which plays a vital role in the global shift toward clean energy.

Other key accomplishments include:

153 million tons of CO₂ avoided emissions
146 sites (75%) reaching zero waste to landfill
198 products meeting Eco-Design criteria
30% reduction in water use per unit of output

Hitachi Energy’s HVDC (High Voltage Direct Current) technology, with a grid-connected capacity of 150 GW, equivalent to Japan’s peak power demand, further reflects the company’s efforts to push for renewable and efficient energy solutions.

Rethinking the Business Model

Hitachi is also adopting a more sustainable approach to business by moving away from the traditional “sell-only” model. Instead, it is embracing a “service-type” model focused on long-term product use rather than ownership. This shift reduces raw material consumption and aligns with modern sustainability and circular economy principles.

“This shift not only aligns with our sustainability goals but also ensures we remain relevant and competitive in the evolving market,” said Lorena Dellagiovanna, Chief Sustainability Officer at Hitachi.

Investing in Green Innovation and Talent

Since 2020, Hitachi Energy has invested $3 billion into manufacturing, engineering, and R&D, while also welcoming over 8,000 new employees to support its sustainability mission. These investments are designed to boost innovation and expand low-carbon technologies across global markets.

“These efforts underscore our commitment to supporting our customers as long-term strategic partners and highlight the impact of our sustainability initiatives,” Lorena noted.

AI and Digital Transformation

Hitachi is also leveraging its strength in digital transformation to improve sustainability. The company is closely examining the use of Generative AI to increase efficiency across manufacturing and operations. While the technology brings clear benefits, it also poses challenges, such as increased energy demand due to the growth of data centres.

Lorena emphasized the significance of striking a balance, sharing that they are focused on assessing both the opportunities and environmental impacts of AI-driven technologies.

Also Read: Understanding Carbon Accounting: A Practical Guide for 2025

Future-Ready Strategy

Hitachi is preparing to navigate the ever-changing landscape of global sustainability regulations, including the EU’s Corporate Sustainability Reporting Directive (CSRD). The company’s Lumada co-creation framework is helping it solve complex problems with customers while aligning with global ESG standards.

“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,” Lorena concluded.

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Source: Manufacturing Digital