State of Green Business

Hitachi Expands Consulting Practice as Part of Green Revival

Hitachi Expands Consulting Practice as Part of Green Revival

Following on the recent news of its focus shift to green electronics, the company this week expanded its consultancy to help other firms take the reins of their environmental impacts.

The new Environmental Sustainability Solutions practice offers a set of solutions tailored to customers' needs that will emphasize resource efficiency and environmental management.

"We've helped companies of varied backgrounds save money, reduce their overall environmental impact and create more corporate value for their mission and brand, in part by making productive use of corporate data assets, organizational change management processes, and measurement of actual progress to thoughtfully developed targets," Todd Price, National Leader of the Hitachi Consulting Environmental Sustainability Solutions practice, said in a statement. "In addition to our consulting services, we are now poised to selectively help introduce sustainable product innovations from sister companies, including Hitachi Data Systems, Hitachi Power Systems and Hitachi Industrial Equipment Systems, pursuant to the overall Hitachi Corporate growth strategy to 'create a more sustainable world through innovation.'"

The move will also help Hitachi achieve its own twin environmental goals: to become carbon-neutral by 2015, and to apply Hitachi manufacturing efficiencies to reduce its customers' emissions by 100 million tons of CO2 per year by 2025.

Hitachi aims to achieve these targets in part through the use of SAP's Carbon Impact software, which will shape their internal green initiatives while simultaneously helping Hitachi apply their experiences to their customers' efforts.

Last month, Hitachi president Hiroaki Nakanishi announced a comprehensive refocusing of the company's efforts to emphasize green business and move toward profitability. As we reported in April, the move aims to:

put environmental innovations at the core to the company's operations for the next 100 years.

Hitachi, which has been a money-losing company in recent years, posting a $2 billion loss for the fiscal year that ended March 31, is shifting its focus to green technologies as a way to revive the company.

In a speech to employees last week, Nakanishi called Hitachi's financial base "not satisfactory" on a global basis. "As we move forward, our basic stance is to bolster shareholders' equity by generating profits," he said.

To move back to the black, Hitachi is going green, starting with three main foci: A global focus on operations, a fusion ICT with social infrastructure, and an environmental focus in all its activities.

"Hitachi is a unique company that embodies both ICT and social infrastructure technologies," Nakanishi said. "We intend to create unrivaled value in domains that fuse these two technologies. Eco-friendly data centers, smart grids and other businesses are expected to enjoy robust growth in this domain."