How Hitachi's Targeting Carbon Neutrality in Energy Sectors
Hitachi Group has published its 2024 Sustainability Report with a detailed look at energy efficiency and carbon reduction across its global operations.
The Tokyo-headquartered company works across three main sectors: Digital Systems & Services, Green Energy & Mobility and Connective Industries. It employs 270,000 people in areas including energy, infrastructure and renewables.
Lorena Dellagiovanna, SVP & Executive Office, Chief Sustainability Officer, CHRO, GM of Human Capital Group and CDEIO, says the business has met “most of our sustainability goals and KPIs” in the last financial year.
“We will continue to accelerate our evolution and enhance our practices to achieve more advanced sustainability management.”
Emissions, waste and water targets show energy gains
The 2024 report outlines Hitachi’s ambition to achieve carbon neutrality in its business operations by 2030 and across its value chain by 2050.
Since 2010, it reports a 74% reduction in CO₂ emissions across factories and offices.
In total, the company calculates it has helped avoid 153 million tonnes of CO₂ emissions through a mix of efficiency gains, operational shifts and energy-focused innovation.
It has also identified 198 products as qualifying for its Eco-Design standards and reports that 146 of its sites, or 75%, now achieve zero waste to landfill.
Water use has also been addressed, with a 30% drop in consumption per unit recorded.
Lorena says: “Some of the notable progress we made in the area of environment relates to decarbonisation and circular economy.”
One core part of this has been Hitachi Energy, the division focused on power transmission and distribution.
Lorena highlights that the global grid-connected capacity of its HVDC (high-voltage direct current) technology has reached 150 gigawatts, equal to Japan’s peak electricity demand.
“This milestone reflects the increasing global shift toward clean energy,” she says.
Hitachi Energy has also recruited more than 8,000 new employees globally and invested US$3bn into manufacturing, engineering and research since 2020.
“These efforts underscore our commitment to supporting our customers as long-term strategic partners and highlight the impact of our sustainability initiatives,” Lorena adds.
Moving to service-based models and fewer raw materials
A shift is under way in how Hitachi runs its businesses.
Traditionally centred on manufacturing, the group is rethinking its use of raw materials, water and resources in production, alongside reducing environmental impact.
Lorena says the company is “shifting toward using fewer raw materials, water and other resources more efficiently and sustainably".
This involves changing from a traditional “sell-only” business to a model based more on product use and services.
That means maintaining value in the product lifecycle, rather than focusing on one-off sales.
“This shift not only aligns with our sustainability goals but also ensures we remain relevant and competitive in the evolving market,” she explains.
Managing AI's energy use alongside climate targets
Generative AI is now a central part of Hitachi’s business planning, especially in terms of energy use.
Lorena notes that while this technology helps with work efficiency and enables more focus on creative output, it also brings a heavier energy load.
“Generative AI can significantly improve work efficiency, allowing people to focus on more value-added and creative tasks,” she says.
But she also warns of a growing energy burden: “As its use expands, the demand for data centres will rise, leading to increased power consumption and CO₂ emissions.”
She poses the question of how Gen AI can be examined through the lens of “balancing planetary boundaries and wellbeing,” and says Hitachi aims to assess the technology’s environmental and ethical dimensions.
“Our goal is to derive optimal solutions that enhance society’s wellbeing while staying within planetary boundaries.”
She says this environment requires constant review of strategy, including international sustainability standards from the EU’s Corporate Sustainability Reporting Directive (CSRD) and the International Sustainability Standards Board (ISSB).
“We will continue to review our material topics and the process of identifying them on an ongoing basis, informed by the changing demands of society and the needs of our stakeholders.”
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