Hitachi Cuts Emissions to Support Sustainable Data Centres

Hitachi Group has achieved a 74% reduction in carbon dioxide emissions at its factories and offices since 2010.

The Japanese technology conglomerate, which employs 270,000 people globally across three core divisions, has avoided 153 million tons of CO2 emissions whilst identifying 198 new products as Eco-Design compliant.

Its 2024 sustainability report reveals a shift to focus on a more service-type business model, where it focuses on the use of products instead of their ownership. It details progress towards the company’s target of achieving business carbon neutrality by 2030 and value chain carbon neutrality by 2050. 

Hitachi operates across Digital Systems & Services, Green Energy & Mobility, and Connective Industries divisions, spanning sectors from information systems to rail infrastructure and renewable energy.

“Looking back on fiscal 2023, we successfully met most of our sustainability goals and KPIs,” says Lorena Dellagiovanna, SVP & Executive Office, Chief Sustainability Officer, CHRO, GM of Human Capital Group and CDEIO. 

“We will continue to accelerate our evolution and enhance our practices to achieve more advanced sustainability management.”

Hitachi Energy drives grid transformation with 150GW capacity

The company’s energy division has emerged as a contributor to emissions reduction efforts.

Hitachi Energy, which specialises in electric power transmission and distribution, has reached 150 gigawatts of grid-connected capacity through its HVDC technology. This figure equals Japan’s peak electricity demand and reflects increasing adoption of clean energy infrastructure globally.

“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 over 8,000 employees worldwide and invested US$3bn in manufacturing, engineering and research since 2020. The division’s expansion coincides with increased demand for grid infrastructure capable of handling renewable energy sources and supporting data centre operations.

The sustainability report shows 146 sites, representing 75% of Hitachi's facilities, have achieved zero waste to landfill status. Water consumption per unit has decreased by 30%, suggesting a commitment to resource efficiency improvements across the company’s manufacturing operations.

Gen AI adoption creates power consumption challenges

Hitachi executives also acknowledge the dual impact of generative AI (Gen AI) on sustainability objectives throughout the report. The technology is able to offer strong efficiency gains whilst simultaneously increasing power consumption through expanded data centre requirements.

“In 2023, we witnessed an epoch-making technology, Gen AI, take the world by storm, impacting industries and society as a whole,” Lorena says. “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.”

The company is developing frameworks to analyse both positive and negative impacts of Gen AI deployment. This includes assessment of environmental effects and ethical implications as organisations increase their AI infrastructure investments.

“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.”

New business strategy targets service delivery

Hitachi’s transition to more service-based operations aims to reduce raw material consumption and improve resource efficiency across the company's manufacturing heritage.

“Some of the notable progress we made in the area of environment relates to decarbonisation and circular economy,” Lorena explains. 

The company is “shifting toward using fewer raw materials, water and other resources more efficiently and sustainably. As a company with a long history in manufacturing, we recognise the need to approach production with a new mindset.”

This approach also aligns with sustainability targets whilst maintaining market competitiveness as customer requirements evolve.

Hitachi continues to prepare to comply with emerging sustainability reporting standards, including the EU’s Corporate Sustainability Reporting Directive and International Sustainability Standards Board requirements.

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

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