How is Hitachi Driving Sustainability in its Supply Chain?
Hitachi Group has made notable improvements in carbon reduction efforts across its supply chain sectors.
Headquartered in Japan and operating globally, Hitachi conducts its business through divisions crucially focused on modern supply chain needs: digital systems and services, green energy and mobility and connective industries.
This comprehensive approach reflects Hitachi's strategic dedication to incorporating sustainability into its logistics and operations.
Moreover, with a workforce of 270,000, the group spans a wide array of 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.
This diversity underscores its breadth of impact in logistics and supply chain dynamics.
Sustainability goals within the supply chain
According to Hitachi's sustainability report, the company aims for carbon neutrality in its business operations by 2030 and within its entire value chain by 2050.
Lorena Dellagiovanna, SVP & Executive Office and Chief Sustainability Officer, said: “Some of the notable progress we made in the area of environment relates to decarbonisation and circular economy.”
- 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
Achieving a 74% reduction in CO2 emissions at business sites marks a significant milestone in reshaping their operations.
The contributions of their energy division, Hitachi Energy, which focuses on electric power transmission and distribution, have been particularly impactful within the supply chain sphere.
The division's grid-connected HVDC technology now has a capacity of 150 GW, matching Japan's peak demand, indicating a shift towards cleaner energy within their supply chain infrastructure.
Transforming business and supply dynamics
Hitachi has revised its business model to enhance sustainability, emphasising a transition from selling products to a service-oriented model.
This approach not only aligns with sustainability goals but also revolutionises supply chain processes by optimising the utilisation of resources.
As executives at Hitachi recognise: "This shift not only aligns with our sustainability goals but also ensures we remain relevant and competitive in the evolving market.”
Generative AI's emergence is another significant factor in Hitachi's modern supply chain strategy, where it blends seamlessly with sustainability efforts.
The integration of AI presents both opportunities and challenges, particularly in terms of energy consumption and CO2 emissions related to increased data centre demand.
As Lorena said: "As its use expands, the demand for data centres will rise, leading to increased power consumption and CO2 emissions.”
Exploring AI's impact on the supply chain, Hitachi is committed to evaluating both the positive and negative implications of AI advancements, aiming to harness technology for improved efficiencies while mitigating its environmental footprint.
Leadership's vision on sustainable growth
Hitachi also emphasised the coupling of AI and sustainability to foster new growth areas within the supply chain amidst global economic challenges, reiterating the importance of aligning with emerging standards in sustainability reporting frameworks, ensuring adaptability and responsiveness to regulatory demands.
Hitachi's endeavours highlight a strategic focus on sustainability deeply entrenched in its supply chain and operational methodologies, reflecting its commitment to pioneering a sustainable future.
Through constant review of material topics, Hitachi ensures its alignment with societal needs and stakeholder expectations, reinforcing its leadership in sustainable supply chain management.
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