Hitachi Global Air Power Releases Climate Action Performance Update; Achieves Carbon Neutrality in Fiscal Year 2022*

Written by Jennifer Ohlinger. Press release from Hitachi Global Air Power US.

MICHIGAN CITY, IND. (July 10, 2023) – Hitachi Global Air Power US, LLC, an industry leader in innovative compressed air solutions since 1965, announced a climate action performance update for fiscal year 2022. Notably, the company achieved carbon neutrality throughout its global operations* as part of the company’s Long-Term Climate Action Strategy.

This strategy comes in line with Hitachi, Ltd.’s long-term environmental targets, titled “Hitachi Environmental Innovation 2050.” The Hitachi Group has set a target of becoming carbon neutral in all its global factories and offices by fiscal 2030 and achieving carbon neutrality throughout its entire value chain by fiscal 2050. The Hitachi Global Air Power Michigan City campus achieved carbon neutral status in fiscal 2021 (ending March 31, 2022) and globally* in fiscal 2022 (ending March 31, 2023).

“We want to be an industry leader in how to sustainably build real-world compressed air and service solutions,” said Hitachi Global Air Power President and CEO John Randall. “Operating sustainably is not only the right thing to do, but more and more, it is becoming an expectation of our customers. To truly be a leader in this area, we are evolving our culture to think and act differently, and we’re making significant investments in our people and facilities to get there.”

In fiscal year 2022, the company added a dedicated, cross-functional sustainability team led by Luis Torres, Vice President of Global Sustainability, to achieve the ongoing targets. Torres has added oversight over all Hitachi Industrial Equipment Systems sustainability efforts to drive alignment and facilitate change. The team is charged with establishing sustainable business practices and installing a sustainability mindset throughout the company’s culture. This includes ensuring product development teams are designing compressed air solutions that are durable and can be remanufactured for a second and third life.

Torres and his team manage the company’s active whole good remanufacturing program, which disassembles, recycles, reuses, and ultimately remanufactures air compressors to ‘better than when new’ condition. Now in its 10th year, the program has helped offset more than 5,000 metric tonnes of CO2 production by salvaging and reclaiming components.

“We are accelerating our sustainability efforts and doing so in a way that keeps the customer front of mind,” said Torres. “We have a lofty goal – to be carbon neutral throughout our value chain by 2050. We can’t accomplish that by thinking small. The products we manufacture, the way we manufacture and how we go to market all need to be focussed on our customers – and the preservation of our planet. We are making great progress, and our business is better for it.”

The recent introduction of the E1035H electric portable air compressor is an example of the company’s more sustainable approach to design. The E1035H was engineered to provide the same power and performance as its diesel counterparts but with zero emissions. Intended for the construction and rental markets, including for use as backup plant air, the E1035H marks a new era of innovation for Hitachi Global Air Power. It is the first of many planned products to help customers meet their business and sustainability goals.

Fiscal Year 2022 Long-Term Climate Action Highlights

1. On-going Capital Expenditure Improvement Projects
   • Australia
     • • • Added PV (solar) panels in Dandenong South (Melbourne, Victoria), Paget (Mackay, Queensland), and Berrinba (Brisbane, Queensland) branches, resulting in an estimated 45 metric tonnes reduction of CO2 emissions
   • United States — Michigan City, Ind.
     • • • Upgraded the HVAC system, resulting in a reduction of 548 metric tonnes of CO2 emissions
         • Nearly 1,100 fluorescent lights were upgraded to high-efficiency LED lighting, reducing 317 metric tonnes of CO2 emissions.
         • Installed 80 pace node devices to monitor energy usage on each piece of equipment, resulting in a reduction of 479 metric tonnes of CO2 emissions
   • China
     • • • Added solar panels at the manufacturing facility, resulting in an estimated 647 metric tonnes reduction of CO2 emissions
2. Voluntary Green Power
   • In Australia, Hitachi Global Air Power transitioned to 100 per cent renewable electricity through a voluntary green power program at all facilities, which purchases Renewable Energy Certificates (RECs) on the company’s behalf and allows Hitachi Global Air Power to designate a portion of its monthly electric usage to come from power generated by renewable energy sources.
   • In the United States, Hitachi Global Air Power transitioned to 100 per cent renewable electricity by purchasing Renewable Energy Certificates (REC) for all US locations*. Through the REC program, certificates purchased allow Hitachi Global Air Power to designate a portion of its monthly electric usage from power generated by hydroelectric sources.
   • In China, Hitachi Global Air Power transitioned to 100 per cent renewable electricity by purchasing the International Renewable Energy Certificate (I-REC). Through the I-REC program, certificates purchased allow Hitachi Global Air Power to designate a portion of its monthly electric usage to come from power generated by hydroelectric sources.
3. Voluntary Carbon Offset Program
   • Implemented a voluntary carbon offset program allowing Hitachi Global Air Power to offset CO2 emissions while developing and implementing future additional measures for fossil fuel use reduction over the next three years.

*Company-owned distributors California Compression and CDA Systems, acquired in February 2023, were not included in the fiscal year 2022 carbon neutral calculation. The companies will be included in the fiscal year 2023 sustainability update and carbon neutrality update.