Did you know that, according to the U.S. Environmental Protection Agency, nearly one-third of global greenhouse gas emissions stem from the industrial sector? These emissions arise from burning fossil fuels for energy and the processes used to turn raw materials into the products we rely on daily.
At Hitachi Industrial Equipment Systems (HIES), we recognize this challenge and the heavy responsibility it places on us. While industrial products and solutions have historically contributed to the problem, we are committed to driving change and being part of the solution.
Driving sustainability is at the core of my leadership – and it has been for many years, even when many people were skeptical. Several years back, there was little demand for sustainable products. When I suggested it, many people even outright rejected the idea. I held firm convictions because I witnessed firsthand the devastating impacts of extreme weather on communities and felt a responsibility to act for the sake of future generations, including my daughter.
Today, though, the landscape has evolved significantly. Public concern for sustainability has surged in recent years, driven by the undeniable impacts of extreme weather worldwide. According to Bain & Company, consumers are willing to spend an average of 12% more on sustainable products or those with a minimized environmental impact. Half of consumers say sustainability is one of their top four key purchase criteria when shopping.
HIES is leveraging innovative engineering to deliver more energy-efficient products. For example, our amorphous metal transformers make significant contributions to energy and CO₂ reduction by saving no load losses (standby energy). Another example is the Sullair TS 190-260 Series two-stage rotary screw air compressors, which offer best-in-class※1 efficiency, helping customers in the steel industry, auto manufacturing and more minimize greenhouse gas emissions.
It's also important to note we’re not only focused on new products. Through our 5R initiative— remanufacture, rebuild, repair, reuse, recycle — we’re giving many of our products a second life, too. Since the launch of our Rebuild business for air ends, the core component of air compressors, in 1985, we have rebuilt approximately 29,000 units in total, contributing to a reduction of approximately 5,500 tons of CO₂ emissions—a 57% reduction compared to manufacturing new parts. These efforts showcase how innovation and responsibility work together to create meaningful, measurable impact.
But our commitment doesn’t stop there. We are also taking tangible steps to achieve carbon neutrality in our operations. This fiscal year (ending March 31, 2025), we expect to achieve scope 1 and 2 carbon neutrality across all of our global offices and factories well ahead of 2030※2, the Hitachi Group-wide goal. From capital investments in solar panels and efficient HVAC systems to transitioning some of our service fleets to electric vehicles, while also incorporating recycled materials into our products, we’ve implemented wide-ranging measures to reduce our emissions. Additionally, we’ve reworked packaging processes for our inkjet printers, optimizing materials to minimize environmental impact further. These are but a few examples – and only the beginning. By 2050, we aim to achieve carbon neutrality throughout the entire value chain – a challenging but necessary goal.
The industrial sector must lead as global trends shift toward energy efficiency and sustainability. It’s not just about responding to environmental concerns; it’s about taking this opportunity to create long-term value through innovation and responsibility. We owe it to our employees, customers and society.
Together, we’re not just taking action, but we’re also creating a more sustainable industry.
※1 Based on current (December 2024) efficiency data published in accordance with CAGI third-party verification program.
※2 In accordance with the SBTi requirement, accounted with a boundary that covers at least 95% of the total Scope 1&2 emissions of our entire group.
Yasuhiro Takeuchi
Vice President and Executive Officer, Hitachi, Ltd.; President & CEO of Hitachi America, Ltd.
Former President & CEO, Hitachi Industrial Equipment Systems Co., Ltd.
