Climate Change
Production (Scope 1 & 2)
To contribute to the prevention of global warming, HCM Group is working to reduce the CO2 emissions generated by energy which accompanies business activity. We receive third-party evaluation for GHG emissions based on criteria of verification ISO 14064-3 at limited level of assurance.
We promote our efforts to reduce of CO2 emissions throughout the Hitachi Construction Machinery Group by energy-saving measures such as switching to solar power generation, optimizing the number of forklifts, and electrifying air tools.
Energy usage and GHG emissions that accompany business operations
In terms of electricity CO2 emission coefficinet, we use ;
Japan : the emission coefficient after adjustment for each electric power company based on “Act on Promotion of Global Warming Countermeasures”
Overseas : the latest IEA(International Energy Agency) national emission coefficient for each fiscal year and the latest coefficient provided by electricity suppliers
Scope | Energy Type | Energy Usage | Heat Conversion (GJ) | CO2 Emissions (t-CO2) |
Criterion, Method, Prerequisite, Other | |
Scope2 | Electricity | 318,887 | MWh | 2,755,184 | 150,638 | Japan : Using the emission coefficient after adjustment for each electric power company based on “Act on Promotion of Global Warming Countermeasures” Overseas : Using the latest IEA (International Energy Agency) national emission coefficient for each fiscal year and the latest coefficient provided by electricity suppliers |
Renewable energy(Solar power) | 20,548 | MWh | 571,558 | 0 | ||
Renewable energy(Hydro power) | 54,072 | MWh | ||||
Scope1 | Fuel oils (gasoline, kerosene etc.) | 3,931 | Kl | 148,078 | 10,199 | Using the CO2 energy conversion coefficient of the Energy Conservation Act |
Coal | 0 | t | 0 | 0 | ||
City gas | 7,224 | kM³ | 325,070 | 12,717 | ||
LPG,LNG | 13,429 | t | 681,498 | 39,776 | ||
Other Flammable Natural Gas | 14,894 | kM³ | 571,939 | 29,193 | ||
Scope1 Subtotal | – | – | 1,726,585 | 91,884 |
No GHG emissions generated by other energy sources
No CH4, N2O, HFCs, PFCs, SF6 emissions
Total Range: All Domestic and Overseas Production/non-Production Bases for Consolidation
The Hitachi Construction Machinery Group has numerical targets for reducing energy consumption to work on continuous improvements.
Major initiatives for energy management and reduction
- Conduct energy conservation diagnosis by internal expert team to inspect energy performance and proposed improvements
- Establish a power reduction project aimed at reducing peak power and usage, and promote energy conservation activities
- Promote the use of electricity from solar, wind and other renewable power generation
- Investment in introducing energy-saving equipment and switching to renewable energy
- Education program on energy conservation for all employees
Amount of Energy/CO2 Reduction | ||||||
Energy Type | Energy Conservation Measures (Articles) | Energy Conservation Measures (Details) | Energy Reduction (Crude oil equivalent)(KL) | Amount of CO2 Reduction (t-CO2) | Comparison Criterion | Criterion, Method, Prerequisite, Other |
Electrical Power | New energy and untapped energy | Solar and hydro power generation | 0 | 19,221 | Before introduction | Conversion Coefficient Source: Japan: Using the emission coefficient after adjustment for each electric power company based on “Act on Promotion of Global Warming Countermeasures” Overseas: Using the latest IEA (International Energy Agency) national emission coefficient for each fiscal year and the latest coefficient provided by electricity suppliers |
Introduction of High-efficiency Devices | Amorphous Transformers, Compressors, LEDs etc | 512 | 1,603 | Fluorescent Lighting, Incandescent Bulbs, Mercury Lamps | ||
Cogeneration, thermal storage, energy storage | Cogeneration introduction | 0 | 0 | Before introduction | ||
Improved control method | Rotation speed control, etc. | 0 | 0 | |||
Fuel Conversion | – | 0 | 0 | – | ||
Management Strengthening | Electrical Power Monitoring, Air/Air Conditioner Management | 1,636 | 3,436 | Difference in Pressure and Temperature | ||
Other | Insulation/Heat Retention, Shutting off Lights etc | 0 | 0 | Before switch | ||
Total | – | – | 2,148 | 24,260 |
Total Range: Main Domestic and Overseas Production Bases for Consolidation
Ongoing Initiatives
We are promoting activities to reduce CO2 emissions caused by energy use. At the six Hitachi Construction Machinery plants, we are implementing high-efficiency equipment at production lines, fuel conversion, and standby power reduction activities at the Energy saving Subcommittee. Furthermore, we share these practices to global bases to strengthen PDCA.
Transport
Reducing Energy Used in Transport
The Hitachi Construction Machinery Group is committed to energy conservation for the transport of its products and components etc.
In order to improve work efficiency and reduce logistics costs, we are consolidating ports use for overseas export to Hitachinaka Port, which is near our production base, in an effort to reduce land transportation distances.
Moreover, until now, the trailer head that carried the container had to return to the shipping company once when unloading and pick up the empty container separately. By having the trailer head carrying the container for the next shipment take back the empty container that had arrived before, we have reduced the waste of the trailer head driving for empty shipments.
In FY 2023, the entire Hitachi Construction Machinery Group achieved an 43.2% reduction in transport-based CO2 per unit sold.
In order for the HCM Group to ensure the reliability of the data, we implement third-party evaluation regarding CO2 emissions during transport. In FY2023, we received limited assurance for Scope 3 Category 4 upstream transportation and distribution.
Scope 3
HCM Group has been calculating CO2 emissions over product lifecycle since FY 2007, and CO2 emissions over the entire supply chain, including Scope 3, since 2009. We receive third-party evaluation for GHG emissions based on criteria of verification ISO 14064-3 at limited level of assurance.
FY2023 GHG(CO2) emissions are as follows.
As of the end of June, 2024
Scope | Category | Classification | CO2 Emission (t) |
Total Scope | Criterion, Method, Prerequisite, Other |
Scope1 | Direct Emission | 91,884 | All Domestic and Overseas Production/Non-production Bases for Consolidation | Using the CO2 energy conversion coefficient of the Energy Conservation Act |
|
Scope2 | Indirect emissions from energy generation (electrical power etc) | 150,638 | All Domestic and Overseas Production/Non-production Bases for Consolidation | Conversion Coefficient Source: Japan : Using the emission coefficient after adjustment for each electric power company based on “Act on Promotion of Global Warming Countermeasures” Overseas : Using the latest IEA(International Energy Agency) national emission coefficient for each fiscal year and the latest coefficient provided by electricity suppliers |
|
Scope 3 (upstream) | 1 | Purchased Products/Services | 1,310,098 | Domestic and overseas main products (Mini-excavators, Hydraulic excavators, Wheel loaders, Rigid dump trucks, and Road construction machinery) |
CO2 emissions from product materials (t-CO2) = Σ {Weight per unit (t/vehicle) x Production volume by model (units)} × CO2 emissions per unit from materials (t-CO2/t): Apply the weight of the main model of each model group Conversion coefficient source: *1 Calculation method: *2 |
2 | Capital Goods | 172,814 | Global (Production and non-production bases) | Capital expenditure x Emission coefficient Conversion coefficient source : *1 Calculation method : *2 |
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3 | Fuel and energy related activity not covered by Scope 1 & 2 | 46,809 | Global (Production bases) | Energy consumption x emission coefficient ・Emissions per unit of electricity Source: *1 Sheet “7 Electricity/Heat” Emissions per unit of fuel procurement ・Emissions unit values other than electricity Source: IDEAV2, 3 Use of emission unit values in each code ・City gas was converted to CO2 without being restored to standard conditions. Calculation method: *2 |
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4 | Shipping, delivery (upstream) | 30,507 | Procurement logistics for 5 domestic sites and shipping logistics 10 domestic sites and 3 overseas sites | Fuel consumption x Emission coefficient Conversion coefficient source: The Energy Conservation Act Calculation method: The Energy Conservation Act (Note) Transport between countries is excluded |
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5 | Waste generated through normal operations | 11,014 | Global (Production and non-production bases) | Waste volume x Emission coefficient Conversion coefficient source: *1 Calculation method: *2 (Note) Waste transport is included |
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6 | Business Travel | 3,420 | Global (Production and non-production bases) | Number of employees x Emission coefficient Conversion coefficient source: *1 Calculation method: *2 (Note) Number of employees is as of March 31, 2024 |
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7 | Employee Commuting | 13,768 | Consolidated subsidiaries | Number of employees, working days x Emission coefficient Conversion coefficient source: *1 Calculation method: *2 (Note) Number of employees is as of March 31, 2024 |
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8 | Lease Assets (upstream) | 0 | – | – | |
Scope 3 (downstream) | 9 | Shipping, Delivery (downstream) | not calculated | ||
10 | Manufacturing of Sold Products | 0 | – | – | |
11 | Usage of Sold Products | 14,946,578 | Domestic and overseas main products (Mini-excavators, Hydraulic excavators, Wheel loaders, Rigid dump trucks, Cranes & Foundation Machines and Road construction machinery) |
Units sold (each product model) x Amount of fuel x Product life x CO2 emission coefficient | |
12 | Disposal of Sold Products | 44,293 | Domestic and overseas main products (Mini-excavators, Hydraulic excavators, Wheel loaders, Rigid dump trucks, Cranes & Foundation Machines and Road construction machinery) |
Product weight x sales volume x CO2 emission coefficient Source of conversion coefficient: *1 Calculation method: *2 |
|
13 | Lease Assets (downstream) | 0 | – | – | |
14 | Franchises | 0 | – | – | |
15 | Investments | 0 | – | – | |
Scope3 Total | 16,579,300 | – | – |
“-” Non-applicable item
*1 The emissions basic unit database for the calculation of an organization’s greenhouse gas emissions generated by the supply chain (Ver.3.4)
*2 Fundamental Guidelines regarding the calculation of greenhouse gas emissions by supply chains (Ver.2.6)