Decarbonisation Strategy

Commitment to achieving Net Zero

Hitachi Solutions Europe Ltd is committed to achieving Net Zero emissions by 2050.

Baseline Emissions Footprint

Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured.

Baseline Year: : Year Ending 31.03.23
Additional Details relating to the Baseline Emissions calculations.
In line with GHG protocol guidance we have updated our baseline to fit the recently updated methodology for our footprint calculation so that all relevant scopes can now be compared
Baseline year emissions:
EMISSIONS TOTAL (tCO2e)
Scope 1 58.6 tCO2e
Scope 2 91.4 tCO2e
Scope 3

(Scopes 3.4, 3.5, 3.6, 3.7)

 1,063 tCO2e
Total Emissions 1,213.7 tCO2e

Current Emissions Reporting

Reporting Year: Year Ending 31.03.24 (Latest Published Accounts)
EMISSIONS TOTAL (tCO2e)
Scope 1 49.0 tCO2e

 
Scope 2 99.8 tCO2e
Scope 3

(Scopes 3.4, 3.5, 3.6, 3.7)

 1,011.2 tCO2e
Total Emissions 1,160.0 tCO2e

 

Please note: Hitachi Solutions Europe Ltd does not produce emissions relating to scope 3.9 (downstream transportation and distribution). As a professional services organisation, we do not create physical product that requires transportation.

Hitachi Solutions has recently completed a comprehensive review of our carbon reporting and carbon reduction plan. We have improved our data capture and reporting capability significantly since the analysis for our original baseline year in 2020. We have engaged 3rd party advisors and validators to support this calculation and we are continuing efforts to improve the accuracy and scope of our carbon reporting.

The figures for FY23 are the second year where analysis from a new and improved methodology have been applied to our carbon footprint and are an enhancement on previous figures published.

To continue to track our emissions performance accurately and ensure transparency, we will amend our Carbon reduction plan as our capability and sophistication of analysis improves.

 

 

The figures above project 68.6 tCO2e in FY2030 which is a 54.3% reduction in scope 1 and 2 emissions. This is more than the 42% reduction required by SBTi and will also exceed Hitachi Group’s targets of 50%. We are projecting a decrease in emissions in FY25 as fugitive emissions for AC coolant were recorded in 2022 and 2023. The source of these emissions has since been rectified.

Hitachi Group emissions reduction targets 

Hitachi Group joined the UN Race to Zero campaign on 25th February 2021. This agreement commits Hitachi Group (of which Hitachi Solutions Europe Ltd is a UK subsidiary) to aligning its business with the aim of the Paris Agreement which is to limit global temperature rise to 1.5°C above preindustrial levels.

Hitachi has several long-term environmental targets, including striving to achieve carbon neutrality at all its business sites (factories and offices) by fiscal 2030 and to achieve an 80% reduction in CO₂e emissions across the company’s value chain by fiscal 2050, compared to fiscal 2010. The target at all business sites aligns with the business ambition for the 1.5°C pledge.

Hitachi Environmental Innovation 2050 maps out the company’s environmental plans for the next 10 to 30 years. The targets include improvement in the efficiency of the use of water and other resources by fiscal 2050 compared with fiscal 2010 and minimising the impact on natural capital. Hitachi Solutions Europe Ltd as a member of Hitachi Group is also committed to these group targets.

Hitachi Solutions Europe aspires to go further than the requirements from our parent and commits to Net Zero by 2050. In 2023 we started a sustainability programme assisted by a 3rd party advisor to develop a science-based plan to achieve this goal.

As previously predicted we saw a small reduction in scopes 1 & 2 emissions in the latest reporting period, and our scope 3 emissions also decreased slightly largely driven by lower emissions from purchased goods and services and business travel (scope 3.1 and 3.6).

Our business has grown significantly since the initial baseline analysis and has moved premises. The business now also occupies new shared offices in Manchester (since 2022). To account for this growth we have chosen to measure carbon intensity using the amount of CO2e per hour worked. This is proportional to revenue and reflects other non-revenue generating activity. This has shown that emissions have fallen across all scopes from FY22 to FY23.

 

Figure 2: Carbon intensity for Latest published accounts verses projections for the financial year 2023-24

 

We will continue to seek efficiencies where it is possible to do so and in line with our carbon reduction plan can reasonably expect to see a continued reduction in the GHG emissions per activity measure going forward.

Hitachi Solutions Europe Ltd became ISO 14001 certified in 2022 and we are maintaining this certification. We expect continued Environment Management System (EMS) improvements to be evidenced to the appropriate standard internally & externally against the backdrop of an expanding business penetrating new national & international markets.

 

Carbon Reduction Projects

Completed Carbon Reduction Initiatives

The following environmental management measures and projects have been completed or implemented since the 2020 baseline.

  • Hitachi Solutions already operates from energy efficient offices (Passive InfraRed (PIR) controlled lighting is already in use), using energy efficient IT infrastructure & is fully committed to a reduce / reuse / recycle approach.
  • Hitachi Solutions Europe Ltd does not operate a company car/vehicle fleet.
  • Hitachi Solutions Europe Ltd has a policy to reduce company travel, where appropriate. Where travel is required, the use of public transport is encouraged where it is safe to do so.
  • Employees have the option to “work from home” where appropriate limiting scope 3.6 business travel emissions.
  • Clients have options to have remote delivery for all / part of the projects and we will continue to promote these methods of delivery, where appropriate.
  • Hitachi Solutions actively engages with our customers to support carbon reduction initiatives as appropriate & will continue to do so in the future.
  • Hitachi Solutions Europe Ltd will continue to engage with Hitachi Group Carbon reduction initiatives as required by Group.
  • Hitachi Solutions Europe Ltd became ISO 14001 certified in 2022 & seeks to maintain this certification going forward.
  • Preventative maintenance has been completed in the server room HVAC unit to prevent future fugitive emissions.

New and on-going carbon reduction initiatives

  • We continue to work with our environmental project partners to invest in projects that remove carbon from the atmosphere. These projects are selected following a process of appropriate due diligence involving oversight from an independent third party.
  • We endeavour to select externally validated “removal projects” as opposed to those focused on carbon avoidance.
  • We aim to deliver “low carbon projects” by ensuring a strong focus on minimising emissions and delivering carbon efficient solutions. We will work with our environmental partners to offset residual emissions with carbon removal solutions.
  • Over 150 of our consultants have undergone training and certification on the “Principles of Sustainable Software Delivery from the Green Software Foundation. This training will be rolled out to all employees as part of the mandatory compliance curriculum in FY2024.
  • We are updating our sustainable solution design guidance to ensure that the “well architected framework” is implemented in our green design approach.
  • Our volunteering programme is being promoted to employees to encourage participation in volunteering projects for environmental causes.

Declaration and Sign Off

This Carbon Reduction Plan has been completed in accordance with PPN 06/21 and associated guidance and reporting standard for Carbon Reduction Plans.

Emissions have been reported and recorded in accordance with the published reporting standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard[1] and uses the appropriate Government emission conversion factors for greenhouse gas company reporting[2].

Scope 1 and Scope 2 emissions have been reported in accordance with SECR requirements, and the required subset of Scope 3 emissions have been reported in accordance with the published reporting standard for Carbon Reduction Plans and the Corporate Value Chain (Scope 3) Standard[3].

This Carbon Reduction Plan has been reviewed and signed off by the board of directors (or equivalent management body).

[1]https://ghgprotocol.org/corporate-standard

[2]https://www.gov.uk/government/collections/government-conversion-factors-for-company-reporting

[3]https://ghgprotocol.org/standards/scope-3-standard

SIGNED ON BEHALF OF THE SUPPLIER:

Jonathan Scott

Date: 22.07.24