Hitachi Rail analyses the possible impacts of its strategic decisions to reduce greenhouse gas emissions over a short, medium and long term, in order to identify business development opportunities, improve efficiency and reduce risks.
This strategy focuses mainly on three spheres of influence:
▪ Scope 1 emissions: in-house activities and direct emissions from Hitachi Rail’s own sites;
▪ Scope 2 emissions: electrical energy suppliers and their operating emissions related to Hitachi Rail’s activities;
▪ Scope 3 emissions: Hitachi Rail’s supply chain and the emissions resulting from the production and delivery of goods and services.
In order to establish an improvement strategy, the company reports direct and indirect greenhouse gas emissions, as envisaged by the GHG Protocol, committing to reduce them through:
▪ programmes for reducing consumption and improving energy efficiency;
▪ use of renewable energy sources;
▪ policies on the mobility of people and goods
▪ waste and water management.
Hitachi Rail, in order to be consistent in comparing the data and referring to what the management action can determine by affecting total GHG emissions, has neutralized, specifically that relating to the pandemic situation, removing from the calculation the effect of reducing the mobility of people.
Total GHG emissions avoied
- 22,001.6 tCO2e
- 30.5 %
Scope 1 GHG emissions avoied
- 15,598.2 tCO2e
- 39.7 %
• Emissions due to energy production (diesel): -74.2%
It is due mainly to the diminished use of diesel fuel for heating in the Naples plant. The reasons for it are related to two different improvements on the Naples plant. A heating pump has been installed in sections 15 and 16 of the production plant and on the manager building. In terms of consumption of tons of diesel, this step justifies the reduction from nearly 5,000 tons in FY19 to today’s level of around 1,000 tons. This reduction is not related to the impact of the Covid 19 pandemic (and therefore to the subsequent temporary closure of the plants) as the consumptionof water – and consequently heated water – increased compared to the previous year.
• Emissions from air conditioning systems (fugitive emissions): -31.2%
This result is less than in previous years due to less use and top-ups for F-gases in cooling and air conditioning. Production sites account for 78% of these emissions.
It is essential to reaffirm the very high Global Warming Potential of the F-gases mentioned above, which has an impact from 1,500 to almost 4,000 times higher (as in the case of R404A) than CO2 (GWP=1). From a company point of view, taking care of constant maintenance to avoid spills and inefficiency is of paramount importance.
• Emissions due to internal handling (lorries and forklifts): +17.0%
This trend is to be verified as only one production site has fully responded. Perhaps it is appropriate to rephrase the question. However, the increase in emissions was due to the increase in production at the Pistoia plant.
The following graph shows how the greatest contribution to the reduction of direct GHG
emissions is due to the reduction of stationary combustion of diesel for energy production.
Scope 2 GHG emissions avoied
- 1,095.3 tCO2e
- 4.8 %
The reduction in Scope 2 GHG emissions is mainly due to the lower use of electricity withdrawn from the grid (-5.2%).
Scope 3 GHG emissions avoied
- 12,500.2 tCO2e
- 68.0 %
▪ Emissions due to employee mobility: -86.6%
The drastic reduction of flights (-86% of total air kilometres) is due to the restrictions required by the spread of the Covid-19 pandemic.
▪ Emissions due to consumption of fuels: -49.3%
Reduction of the use of fuel, especially diesel in the site of Naples. As previously mentioned, the installation of heating pumps has drastically reduced diesel usage in Naples, determining in addition to the reduction of direct emissions of scope 1 also indirect ones of scope 3.
▪ Emissions due to production of waste: -65.5%
This reduction is due to a decrease in total waste produced (-30%) and a higher percentage of waste sent for recycling (89% in FY20 against 71% in FY19)
▪ Reduction in the use of materials: –67,6%
The reduction occurred mainly due to the decrease in the use of paper (-42%) and packaging (-54%).
In the year ended 31.03.21 all GHG emission intensity indicators, which measure tonnes of CO2e per thousand hours worked fell compared the previous year, due to the reduction of emissions in absolute terms and the increase in hours worked of 4.1%.
TOTAL GHG Emission Intensity (market based)
-33.3 %
GHG Emission Intensity scope 1
-42.0 %
GHG Emission Intensity scope 2 (market based)
-8.6 %
GHG Emission Intensity scope 3
-54.4 %
Logistic – GHG emissions
As part of the strategy to reduce GHG emissions, Hitachi Rail is also very attentive to the containment of indirect ones. To complete the emissions of Scope 3 that the company has decided to consider, those relating to inbound and outbound logistics were measured.
The calculated value relating to FY20 will be taken as a reference to measure the effectiveness of the policies relating to the efficiency of the group’s logistics.
GHG EMISSIONS DUE TO TRANSPORT OF GOODS (tCO2e)
▪ on road 21,926.8
▪ by sea 13,371.1
▪ by plane 16,553.5
▪ TOTAL 51,851.4
Sustainability topics and contribution to SDGs “Hitachi Rail will reduce its environmental impact, develop a sustainability culture and improve quality of life for our people and communities”
(A. Razeto, Group Head of CSR and Sustainability)
The UN Environment Programme’s Emissions Gap Report 2020 found that global greenhouse gas (GHG) emissions hit a new high of 59.1 gigatonnes (Gt) of CO2 equivalent in 2019.
Over the past decade, emissions have continued to increase at a rate of 1.5% per year, rising in all major economic sectors.
Particularly, a closer look at GHG emissions breakdown by economic sector reveals that:
Power production today generates the largest share of GHG emissions (30%). About 50% of electricity comes from burning fossil fuels, mostly coal and natural gas.
▪ Industry represents the second-largest share of GHG emissions (21%), burning fossil fuels for energy, as well as GHG emissions from mineral products (such as cement) and other chemical reactions necessary to produce goods from raw materials.
▪ The Transportation sector contributes around 16% of global GHG emissions, with road transport being primarily responsible (94% of the sector). Rail, shipping and aviation are relatively smaller, with emissions in international territory comprising 4% of total.
▪ Agriculture contributes 16% of total GHG emissions, with most emissions coming from enteric fermentation (ruminant animals, such as cattle), nitrogen fertilizers on agricultural soils, and municipal waste.
▪ Buildings contribute to 7% of global GHG emissions, arising primarily from fossil fuels burned for heat.
Should this pattern continue, the world is projected to warm by 3°C to 5°C by 2100, with catastrophic effects on human civilization. To prevent this risk, a major turnaround in emissions trajectories is needed in all sectors (reduction of approximately 3-6% per annum between now and 2030) to limit the rise in surface temperatures and avoid catastrophic climate change effects.
In 2015, world leaders met in Paris and agreed to limit the global temperature rise by the end of the century to well below 2°C and to pursue efforts to limit the temperature increase even further to 1.5°C.
According to the Intergovernmental Panel on Climate Change (IPCC), limiting global warming to 1.5°C requires net human-caused carbon dioxide (CO2) emissions to fall by 45% by 2030 and to reach net-zero by 2050. Even limiting the temperature rise to 2°C will need CO2 emissions to fall by 25% by 2030, requiring a turnaround of the present trend and approximately $75 trillion in investment.
In 2015, the United Nations presented 17 Sustainable Development Goals (SDGs) to be achieved by 2030. Combined with the company mission to contribute to society through the development of superior, original technology and products that power sustainable connectivity, Hitachi Rail is well-positioned to make a meaningful contribution to achieving the selected SDGs. Sustainability is at the heart of our business; we have an obligation to inspire and build a better and more sustainable future for employees, customers, and all users of products.