Innovation, collaboration and net zero emissions

Cutting through the barrage of talk to truly embrace a cleaner future involves today’s business leaders becoming tomorrow’s climate change innovators.

Decarbonization is an ever more important part of businesses’ efforts to embrace sustainability, as the world grapples with the increasingly challenging task of keeping global warming below the 1.5°C climate target outlined by the Paris Agreement.

But to realize a green transformation, companies need to look both inward – to reduce the environmental impact of their operations and practices – and outward, to rethink their products, services and supply chains.

While the need for urgent action to address the climate crisis can’t be underestimated, business leaders also need to realize they can’t go it alone.

Decarbonizing the way we live and work is an enormous challenge that can only be resolved through partnerships and collaboration with a wide range of stakeholders working to accelerate positive change.

Calls to action 

Many large businesses at the forefront of efforts to decarbonize share certain characteristics: such as embracing digitalization, automation and smart technologies; investing in research and development to encourage more energy-efficient, low-carbon business models and products; and working in collaboration with partners and organizations dedicated to achieving common sustainability goals.

Companies like Hitachi help promote public- and private-sector collaboration as part of the United Nations Framework Convention on Climate Change’s Race to Zero Campaign – a global coalition of business leaders, investors and policymakers aiming to support local, regional and international net zero initiatives around the world.

The company also played an active role in the COP26 climate change conference in Glasgow, becoming the first corporation headquartered in Japan to serve as a Principal Partner.

These initiatives stem from Hitachi’s pledge to become carbon neutral throughout the entire value chain by 2050, with a decarbonization strategy that impacts all of its business sectors: Green Energy & Mobility, Connective Industries and Digital Services & Systems.

A holistic approach

Hitachi’s strategic approach to decarbonizing takes a holistic view of the challenges ahead.

The aim is to reach carbon neutrality for Scope 1 and 2 emissions – generated by company site operations and the energy that powers them – by 2030. The company has also set a target of halving CO2 emissions across its entire value chain by 2030, compared to 2010 levels, including Scope 3 emissions – greenhouse gases generated when products and services are consumed.

One pillar of the strategy aims to decarbonize internal operations and systems, including investing in energy-saving and renewable-energy generation projects at its factories and other facilities. Ten sites across the US, Europe and Japan have been refitted to use 100% clean renewable energy so far, for example.

At the same time, efforts are being focused on reducing greenhouse gas emissions by developing efficiency gains in areas like value-chain management, product design and engagement with customers.

Low- and no-carbon technologies

The second strategic pillar focuses on innovating to develop low-carbon and energy-efficient products that help customers become part of the solution. Hitachi is spending 500 billion yen over three years on research and development technologies to help customers reduce and avoid emissions.

Technologies here include developing low- and no-carbon solutions for the energy sector, railway systems and automotive industries, where electrification is advancing.

One such initiative is taking shape in northern Europe. Hitachi is participating in a project to construct a 623km undersea power link between the German and Norwegian power grids, to transport renewable energy from sources like wind and hydropower.

As some renewable energy sources suffer from intermittency challenges, this innovative HVDC interconnector link will help stabilize the energy supplies in both countries, enabling a two-way flow of emissions-free energy that contributes to a greener society.

The case for collaboration

Collaboration is an important part of developing and scaling new low-carbon technologies that help accelerate the decarbonization agenda. Business leaders, staff, investors, supply chain partners, customers, policymakers and myriad others all have a part to play in helping to bring about sustainable change.

Hitachi is part of the World Economic Forum’s Alliance of CEO Climate Leaders initiative, a CEO-led community committed to bold action on climate change and accelerating the transition to net zero emissions through science-based targets, greater reporting transparency and promoting decarbonization and partnerships across value chains.

The power of partnerships like this enables CEOs to share knowledge and best practices, as well as align their corporate ambitions with scientific requirements – leaving member companies accountable for their actions and progress.

With a network reaching across more than 120 companies, 12 industries and almost 9 million employees, the collaboration has huge potential to influence markets, make value chains more sustainable and bolster investment in green technologies – even when they carry a premium price tag. 

By embracing advances in green-transition technologies, smart solutions and digital capacity, companies like Hitachi can innovate and collaborate with customers, partners and the global community to accelerate the green agenda toward realizing a net zero society.

#Sustainability #Decarbonization #NetZero #SmartTechnologies #Emissions #Collaboration #Innovation #Partnerships