Founded over a century ago, Hitachi is not a new company. But over the last several years, it has focused its vision and sharpened its business strategy for the 21st century.
In short, it has transformed itself from a consumer-facing company to adigital infrastructure companywith the goal of helping the world address the problem of climate change. As a climate-change innovator, the company aims to help government and industry cut CO2 emissions. It has reorganized its business structure to focus on energy transmission and distribution, mobility, industry and digital capability. In 2020, Hitachi joined the United Nation’s Race to Zero campaign, committing to align its business with the Paris Agreement goal of limiting global temperature rise to 1.5°C above pre-industrial levels. A principal partner of COP26, the company has pledged to becarbon neutralin its operations by fiscal 2030 and across its entire value chain by fiscal 2050.
Although the company has focused on “powering good” since its founding in 1910 (its original mission stated Hitachi would contribute to society through the development of superior, original technology and products), its recent evolution “has created a renewed purpose for Hitachi and has energized our people,” says Alistair Dormer, Chief Environment Officer for Hitachi, Ltd.
Dormer was elevated in April 2021 to the newly created role as part of the company’s environmental focus. He is responsible for driving initiatives to enhance environmental value across Hitachi and the world.
The company recently announced plans to invest almost £10 billion over a three-year period in technologies to foster digital innovation. This will include research and development of high-efficiency products, energy management systems and hydrogen-related technologies to help unlock digital innovation to achieve a decarbonized society.
Mobility and transportation currently emit a large amount of carbon dioxide, says Dormer. Those industries will require an overhaul in infrastructure before EV vehicles can be adopted on a large scale. “That new infrastructure needs to be smart, using technologies like blockchain, big data and AI to ensure a reliable network that can store and transmit energy efficiently and effectively,” he notes. That’s why digital capability is so important. “The wind doesn’t always blow and the sun doesn’t always shine,” says Dormer.
One example of Hitachi’s recent work on smart infrastructure is Optimise Prime. The three-year project is a collaboration among Hitachi, Royal Mail, Uber, UK Power Networks, Centrica and Scottish and Southern Electricity Networks to help the UK government develop its EV infrastructure. The goal is to provide data that fleet operators and network operators can use to better manage their businesses – from the size of the fleet to the capacity of the network to the timing of vehicle charging.
The system could collect and analyze data from vehicles, charging stations, and the network to optimize EV charging in the most efficient way. For example, the power grid might need vehicles to reduce or stop charging during certain times of peak demand. That could reduce stress on existing network capacity and require less expenditure on new transmission equipment.
Dormer notes that Hitachi’s new focus is good for business, in addition to being good for the world. The company is already starting to see financial returns on some of its environmental investments. The company did analysis on installing solar panels on the roof of a factory in its rail business in Italy, which will save 30% in energy costs. “Saving CO2 is fundamentally saving energy,” he says.
Developing viable solutions for environmental sustainability is expected to be a profitable business, thus ensuring the success of Hitachi over the long term. And the company expects its environmental focus to help it attract and retain new talent. A recent survey by the United Nations Development Programme found that nearly 70% of people under the age of 18 believe climate change is a global emergency.
“New graduates today have a lot of choice of where to work,” says Dormer. “We want the new generation of movers and shakers to be attracted to us as a company that is doing the right thing.”
Climate Change Innovators
The time for change is now – we must preserve our planet for future generations. The breadth of Hitachi allows us to combine information technology, operational know how and physical products to tackle climate change - and ultimately improve people’s quality of life. We are applying that same innovation to our own business to contribute to a Net Zero society.
Visit Climate Change Innovator - Hitachi Sustainability to learn how Hitachi Social Innovation is Powering Good and helping drive change across the globe.