Environmental vision and targets
Improving and protecting the environment is part of Hitachi Rail’s corporate responsibility and is a key element in its business strategy, which aims to promote the long-term growth of the company’s value.
In recent years, Hitachi Rail has continued on its path towards sustainability in the belief that acting in respect of environmental values leads to the creation of lasting value for the company, customers, and the wider community served.
To actively and responsibly contribute to combating the challenges posed by climate change, Hitachi Rail complies with the current regulations and also applies best practices to achieve better results, continuously improving its environmental management in an economically effective way.
To this end, Hitachi Rail has developed an approach based on analysis of the aspects and impacts of its operations on the environment. In addition to identifying and implementing mitigation for environmental risks, this approach has allowed the company to identify environmental opportunities and improvement areas and to deliver specific measures to meet today’s requirements and the future needs.
Hitachi Rail has a certified Environmental Management System that meets the international standard UNI EN ISO 14001.
The system identifies the most significant environmental aspects and impacts and the adoption of the most effective management and mitigation measures through a structured and assured approach.
Hitachi Rail has adopted an Environmental Policy focuses on safeguarding the environment at the heart of its management and development strategies, with a constant and targeted commitment to preventing pollution and pursuing continuous improvements in its environmental services.
The policy is shared with all Hitachi Rail personnel and all Stakeholders.
The key principles of Hitachi’s environmental policy
▪ Protecting the environment by preventing and mitigating potential adverse impacts.
▪ Improving and fostering the environmental characteristics of products and services.
▪ Meeting and exceeding the legal obligations of compliance and voluntary commitments.
▪ Striving to continuously improve environmental performance and the environmental management system.
The four strategic objectives
1. ENVIRONMENTAL MANAGEMENT SYSTEMS ARE APPLIED ACROSS THE ENTIRE ORGANISATION, DRIVEN BY THE PRINCIPLE OF CONTINUOUS IMPROVEMENT
▪ Annual preservation of the ISO 14001 certifications.
▪ Rationalisation and simplification of the certifications in the various organisational areas.
3. Promotion of sustainable environmental practices with suppliers, contractors and customers
▪ Use of environmental performance-based supplier qualification criteria
▪ Informative and training meetings on the important environmental aspects at the commencement of works through the diffusion of the Environmental Policy and exploring the ways in the impacts generated by the activities carried out are to be managed.
▪Assessment of the suppliers based on the environmental performance of the activities carried out on Hitachi Rail’s behalf.
2. Reporting to citizens, institutions and other stakeholders on the management and environmental performance of the Company
▪ Publication of the Sustainability Report and open access given to the key environmental parameters
▪Communication with analysts and participation in various Sustainability indices
4. Observance of the legal obligations of compliance and voluntary commitments
▪ Ensure that the activities are carried out in compliance with said obligations and commitments
▪ Assess observance of the subscribed obligations and commitments.
▪ Correct any non-conformities on observance of subscribed obligations and voluntary commitments.
Towards a low-carbon society
The Hitachi Group conducts independently developed Environmentally Conscious Design Assessments for all products and services involving a design process to steadily improve environmental performance throughout the Group.
In May 2020 Hitachi Rail committed to CO2 reduction targets of achieving net-zero carbon emissions at business sites (factories and offices) by fiscal 2030.
The value chain for Hitachi Rail products and services encompasses all stages, from the procurement of raw materials and parts to production, transportation, use, disposal, and recycling. Hitachi Rail has identified the environmental impact that may cause climate change, resource depletion, and ecosystem degradation across the entire life cycle of products and services, and has assessed the reduced environmental load through its business activities in multifaceted ways and strives for further reductions.
Hitachi has re-confirmed its commitment to address climate change by strengthening its own climate target to contribute to a Net Zero society by achieving carbon neutrality throughout its entire value chain, including production, procurement the use of products and services by FY2050. This bolsters the existing commitment of reaching carbon neutrality at all its factories and offices globally by FY2030.
This new target revises Hitachi’s previous target of 80% reduction by FY2050 which was set in 2016. Hitachi will contribute to the reduction of its customer’s CO2 emissions and continue to reduce environmental impact from the design stage in all its products to help develop world-class energy efficiency. Hitachi is also committed to working with partners in its supply chain, through its sustainable procurement guideline, issued in July 2021.
Hitachi is a principal partner of COP26 and is committed to becoming a climate change innovator, helping governments, cities and companies cut their greenhouse gas emissions.
Hitachi Rail continuous its commitment to CO2 reduction targets of achieving net-zero carbon emissions at business sites (factories and offices) by fiscal 2030.
The value chain for Hitachi Rail products and services encompasses all stages, from the procurement of raw materials and parts to production, transportation, use, disposal, and recycling. Hitachi Rail identifies the environmental impact that may cause climate change, resource depletion, and ecosystem degradation across the entire life cycle of products and services, assess the reduced environmental load through its business activities in multifaceted ways and strives for further reductions.
Design choices can help bring down supply-chain emissions. Hitachi Rail is focused on designing products for sustainability by using greener materials, cutting waste, reducing product variance, increasing recyclability, improving reparability, and switching manufacturing processes to lower- carbon ones.
For many years, Hitachi Rail has integrated in its Environmental Management System the ISO 14006 Guidelines for incorporating “Eco-Design” from the design phase. This allows Hitachi Rail to take into account all potential impacts from their products throughout the product life cycle.
Design choices can help bring down supply-chain emissions. Hitachi Rail is focused on designing products for sustainability by using greener materials, cutting waste, reducing product variance, increasing recyclability, improving reparability, and switching manufacturing processes to lower-carbon ones.
About 26 years ago, a “social welfare impact category” was proposed in the SETAC Workshop Report (1993): “A Conceptual Framework for Life Cycle Impact Assessment”. This started the discussion on how to deal with social and socio-economic criteria in assessing a product along its life cycle. Just like the LCA, it was proposed that Hitachi conduct S-LCA in line with ISO 14040 (2006).
The Social-LCA Project of HMU Masaccio Train has been developed in this particular context. The main aim of the project is to implement S-LCA to a train life cycle for the first time, including the most of the phases of its life cycle and develop a communication scheme towards a possible social product declaration.
The Company is empowered also the accountability of its worldwide Facility department in order to implement above strategy and achieve main targets defined inside of scope 1 and 2.
Starting from last year, the Facility management of Company assets is changing from a traditional approach to more sustainable approach favoring a Sustainable Facility focalized to add value to Environmental and Energy management support.
So main strategic aims of Sustainable Facility are:
▪ Implement globally energy management optimization plans according to sustainability strategy during 2020-2030.
▪ Lead worldwide partnership with an expert on the matter (Hitachi Europe) to implement One Energy optimization strategy and approach inside Hitachi Rail starting from 2020.
▪ Ensure a continuous efficient and effective global Real Estate properties management with the aim to maintain their suitability.
Main pillars are:
Energy efficiency management
▪ Solar power generation
▪ LED lights
▪ Green cars
▪ Purchase of green energy
▪ Energy management high efficiency equipment
▪ Smart sensor lights
Energy efficiency management
▪ Water meters
▪ Sensor taps
▪ Record and report waste
▪ Recycling in offices
▪ Recycling in industrial areas
▪ Recycled paper
Hitachi Rail adopted a Carbon Management System (CMS) which enables the planning, implementation and measurement of targets for the reduction of greenhouse gas emissions.
An efficient carbon management policy enables the Company to decrease consumption and reduce energy costs, thereby improving its bottom line and offering the possibility of investing the savings.
The CMS has been developed in line with the relevant international standards. This system enables the company to perform:
▪ Analyses of actual emissions produced.
▪ Monitoring and reporting on emissions.
▪ Comparisons between historical data and forward-looking analyses.
▪ An assessment of the impact of products, in terms of emissions over their entire life cycle.
▪ Economic/environmental impact analyses in relation to current regulations on emission reduction to determine assets’ potential value-at-risk.
▪ The measurement of the effectiveness of emission reduction projects.
▪ Communication on Hitachi Rail’s emission reduction performance to the Stakeholders, including media, investors, rating agencies and other organisations.
Within its organisation, Hitachi Rail has appointed an Energy Manager responsible for providing guidance and carrying out activities and projects with respect to energy savings at all of the company’s operating sites.
GHG emission reductions at production sites and offices Hitachi Rail analyses the possible impacts of its strategic decisions to reduce greenhouse gas emissions over the short, medium and long term, in order to identify business development opportunities, improve efficiency and reduce risks.
The Company’s strategy is to accelerate the switch to renewable energy, improve energy and process efficiency in own operations, and leverage their buying power to mobilise the overall decarbonisation of the economy, thus significantly reducing their emissions and those of their partners.
Hitachi Rail’s environmental policies aim to reduce its impact on the environment by identifying the areas of intervention and selecting specific indicators and related targets.
Actions to reduce greenhouse gas emissions are part of the environmental management system that Hitachi Rail has established at a global level, defining a carbon management strategy based on the following principles:
▪ Global approach: the development of mechanisms to increase commitment in all offices and production sites.
▪ Reasonable and feasible long-term objectives: the establishment of a clear and realistic vision of the steps to be taken.
▪ Support for the development of technologies: the development of advanced technological solutions.
▪ Expansion of audience to include also non LCA experts with particular attention of Cover methodological developments, including impacts assessment methodologies type I and II and interpretation phase.
▪ Recognize a plurality of established approaches, indeed the social life cycle impact assessment methodologies include different approaches developed in literature.
▪ Developing areas where minimum guidance prevails.
▪ Integrate Social Organizational
Towards a resource efficient society
The issues of resource scarcity, triggered by rising demand and population growth are common concerns for the entire world. As our populations grow and living standards improve, higher volumes of resources collected, extracted, used, and eventually emitted as waste.
Hitachi Rail is responding to these issues by working with customers and society to help build a society that uses resources more efficiently.
Hitachi Rail creates higher economic value designing and promoting less resources and pursue products and solutions, as well internal processes and activities, with a low environmental burden.
The majority of energy used is electricity for lighting, plants operation and building temperature control. Hitachi Rail uses fossil fuels, mainly natural gas, and district heating to heat workplaces. In order to reduce electricity consumption, the company carries out constant work on its real estate assets, to increase their eco-efficiency.
Hitachi Rail promotes the use of solar and other forms of renewable energy at our business sites and plants. New plans are under definition and will be launched at the beginning of the fiscal year, including further challenging decarbonisation goals.
The company will accelerate these efforts, aiming to raise the share of renewable energy in its total electricity consumption.
Hitachi Rail is very aware of the contribution that efficient consumption of raw materials can give, in terms of contribution for CO2 reduction. Hitachi Rail search for increasingly standardised designs and innovation to lead an overall reduction in the direct or indirect consumption of raw materials.
The sustainable management of water during withdrawal and use favours the maintenance and improvement of the use of this precious resource, ensuring less waste and a reduced environmental impact.
The company is aware that it can continually improve water use by reducing pollution, eliminating waste and fighting the release of chemicals and hazardous materials, halving the percentage of untreated wastewater and substantially increasing recycling and safe reuse.
Hitachi Rail's core business does not critically highlight the use of this resource. However, the commitment in the control and management of this resource is always very high, even in related indirect activities.
Towards a harmonized society with nature
In order to achieve a harmonized society with nature so that everyone may continue to enjoy its benefits, Hitachi Rail has established targets to minimise its impact on natural capital as part of its long-term environmental targets. It accounts for two types of activity: Positive and negative
Positive activities include providing products and services that contribute to ecosystem preservation and undertaking social contribution activities to protect the environment through the preservation of biodiversity and ecosystems.
Negative impact activities’ are classified as emissions of chemical substances into the atmosphere and the generation of waste materials.
By quantifying positive and negative impact activities across the value chain, Hitachi advances initiatives to reduce its negative impact and maximize its positive impact.
The Circular Economy means going beyond the traditional “take-make-waste” that is typical of linear economy, where natural resources are extracted, transformed, used by suppliers, combined in a product and discarded at end of life (Andersen, 2007). Today’s linear economy cannot deliver a sustainable world, where finite natural resources and the ability of the environment to absorb waste leads to a remarkable increase of resource cost and uncertainty of supply (Ellen MacArthur Foundation, 2012).