Hitachi Construction Machinery

Global

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.

In the FY 2019, HCM Group reduced energy consumption by 13% compared to the previous year thanks to energy-saving measures such as switching to solar power generation, introducing a power monitoring system (EMilia), use of inverters, and changing to LED lighting. Total CO2 emissions decreased by about 1% compared to the previous year.

Tata Hitachi Construction Machinery switched the company’s power generation to photovoltaic power generation and in the FY 2019, renewable energy accounts for more than 40% of its electric power consumption.

Tata Hitachi Construction Machinery Plants Switch to Photovoltaic Power Generation Reduce Power Consumption

Energy usage and GHG emissions that accompany business operations

Total Range : All Domestic and Overseas Production/non-Production Bases for Consolidation
(Bradken has been included in the results since FY 2018)

Total Range : All Domestic and Overseas Production/non-Production Bases for Consolidation
(Using the CO2 conversion coefficient of the International Energy Agency (IEA) energy, 2010 edition)

Scope Energy Type Energy Usage Heat Conversion (GJ) CO2 Emissions
(t-CO2)
Criterion, Method, Prerequisite, Other
Scope2 Electricity 419,554 MWh 4,123,655 222,364 Using the 2010 edition of the International Energy
Agency (IEA) CO2 energy conversion coefficient
Renewable energy(Solar power), within above 12,676 MWh 126,375 0
Scope1 Fuel oils (gasoline, kerosene etc.) 4,261 Kl 157,665 10,788 Using the CO2 energy conversion
coefficient of the Energy Conservation Act
City gas 7,930 kM³ 356,869 17,400
LPG,LNG 9,683 t 495,926 28,729
Other Flammable Natural Gas 20,701 kM³ 900,497 45,956
Scope1 Subtotal 1,910,957 102,873

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

A conserving energy activities project has begun within HMC Group companies, with the goal of power usage reduction overall as well as over peak times. Implementing photovoltaic power generation system, highly efficiency devices and etc have brought about continual improvements.

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 power 0 6,718 Before introduction Using the CO2 conversion coefficient of the International Energy Agency (IEA) energy, 2010 edition
Introduction of High-efficiency Devices Amorphous Transformers, Compressors, LEDs etc 3352 1613 Fluorescent Lighting, Incandescent Bulbs, Mercury Lamps
Cogeneration, thermal storage, energy storage Cogeneration introduction 0 0 Before introduction
Management Strengthening Electrical Power Monitoring, Air/Air Conditioner Management 18.5 36.4 Difference in Pressure and Temperature
Other Insulation/Heat Retention, Shutting off Lights etc 190 570 Before switch
Total 3,560 10,616

Total Range: Main Domestic and Overseas Production Bases for Consolidation

Carbon Offset Initiatives

HCM is spreading the use of products with high-level energy-saving functions, and we are taking carbon offset initiatives in order to contribute low-carbon society .

Ongoing Initiatives

In the interests of reducing CO2 emissions from energy going forward, we are not only furthering the systematic introduction of high-efficiency machinery and fuel conversion, but we are also attempting to raise environmental awareness through monitoring the monthly results of CO2 emissions at each company or group company and uploading goal achievement states online for visibility. In the future, we will establish a structure that evaluates the undertakings towards achieving annual targets, and will endeavor to strengthen the 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 did away with external warehouses near Hitachinaka Port to develop activities such as optimization of the export port and inbound goods locations, and energy saving in machinery operation. In FY 2019, the entire HCM Group achieved an approx. 56% reduction in transport-based CO2 per unit sold.

In June 2020, we started joint use of containers for import and export with the LIXIL Corporation, contributing to greater efficiency, further reduction of CO² emissions, and reduction of transportation costs through container round use initiatives.

Trends in CO2 Emissions During Transport

Total Scope: Main Domestic and Overseas Production Bases for Consolidation

In order for the HCM Group to ensure the reliability of the data, we implement third-party evaluation regarding CO2 emissions during transport. In FY2019, 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.

Scope Category Classification CO2 Emission
(t)
Total Scope Criterion, Method,
Prerequisite, Other
Scope1 Direct Emission 102,873 All Domestic and Overseas Production/Non-production Bases for Consolidation Conversion Coefficient Source: CO2 conversion coefficient of the International Energy Agency (IEA) energy, 2010 edition
Scope2 Indirect emissions from energy generation (electrical power etc) 222,364 All Domestic and Overseas Production/Non-production Bases for Consolidation
Scope 3 (upstream) 1 Purchased Products/Services 1,692,912 Domestic and overseas main products (Mini-excavators, Hydraulic excavators, Wheel loaders, Rigid dump trucks, and compaction equipment) (1) CO2 emissions volume from each product material (t-CO2)= Shipped product’s weight x CO2 emission coefficient from material Weight per unit: The weight of main models in each model groups is applied
Reference for emission basic units: IDEA (Inventory Database for Environmental Analysis) developed and supplied by the National Institute of Advanced Industrial Science and Technology and the Japan Environmental Management Association for Industry
(2) CO2 emissions volume from purchased goods and services Totals the CO2 emissions volume for each product based on (1) above
2 Capital Goods 110,231 Organizations, consolidated 80 subsidiaries related to consolidated financial statements Capital expenditure x Emission coefficient
Conversion coefficient source : *1
Calculation method : *2
3 Fuel and energy related activity not covered by Scope 1 & 2 28,110 Organizations, consolidated 80 subsidiaries related to consolidated financial statements (Limited to Electric power) Total power use x Emission coefficient at upstream
Conversion coefficient source: *1
Calculation method : *2
4 Shipping, delivery (upstream) 23,397 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
5 Waste generated through normal operations 9,290 Organizations, consolidated 80 subsidiaries related to consolidated financial statements Waste volume x Emission coefficient
Conversion coefficient source: *1 Calculation method: *2
(Note) Waste transport is excluded
6 Business Travel 3,274 Organizations, consolidated 80 subsidiaries related to consolidated financial statements Number of employees x Emission coefficient
Conversion coefficient source: *1 Calculation method: *2
(Note) Number of employees is as of March 31, 2020
7 Employee Commuting 13,525 Organizations, consolidated 80 subsidiaries related to consolidated financial statements Number of employees, working days x Emission coefficient
Conversion coefficient source: *1 Calculation method: *2
(Note) Number of employees is as of March 31, 2020
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 16,164,570 Domestic and overseas main products
(Mini-excavators, Hydraulic excavators, Wheel loaders,
Rigid dump trucks,  and
compaction equipment)
Units sold (each product model) x Amount of fuel x Product life x CO2 emission coefficient
12 Disposal of Sold Products 59,883 Domestic and overseas main products
(Mini-excavators, Hydraulic excavators, Wheel loaders,
Rigid dump trucks,  and
compaction equipment)
Product’s weight x Ratio of each constituent material x Emission coefficient by waste treatment
Conversion coefficient source: *1 Calculation method: *2
13 Lease Assets (downstream) 0  –
14 Franchises 0
15 Investments 0  –

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