Hitachi ABB Power Grids hopes to achieve carbon neutrality by 2030. In a chat with BusinessLine , the company’s Managing Director and CEO N Venu gave a low-down on Hitachi’s strategy and the progress made so far. Excerpts:
What is the current status as far as carbon neutrality is concerned?
At present, our carbon dioxide (CO2) emissions is 80,000 tonnes and electricity consumption (2019) is 4,46,05,316 kWH, of which around 35 per cent is currently green.
Water consumption is around 5,15,000 KL. Seventy per cent of waste generated is recycled and 155 tonnes of scrap is co-processed.
Forty per cent of the electricity used in our factories comes from renewable sources. In 2020 alone, we have significantly cut down on freshwater consumption at our Mysuru and Halol factories.
What is the goal set by the company to achieve carbon-neutrality?
We are reaffirming our commitment to a sustainable (energy) future... reduce waste generation by 50 per cent, and a 25 per cent in freshwater use progressively through the next 10 years. Also, we want to achieve 50 per cent reduction in CO2 emissions along the value chain.
What are your short- and long-term goals to achieve carbon neutrality?
Our approach in the short term is to achieve 100 per cent fossil-free electricity consumption by the close of FY22. We will also work more closely with suppliers to decarbonise upstream processes by introducing greenhouse gas-free technology solutions.
We would like to focus on reducing the carbon footprint of our products through constant evaluation of our sourcing and supply chain methodologies to reduce CO2 emissions. We would also reduce hazardous substances such as sulphur hexafluoride (SF6) and pollution throughout the lifecycle of our offerings. Third, in the long term, we would like to make a positive impact on the society by helping to decarbonise industries, transportation and data centres.
How is the company preparing for customer engagement?
We plan to work closely with customers who share our carbon-neutral vision and who want to minimise the adverse impact on human health and the environment. We are putting in time and effort in R&D to localise our product portfolio for developing markets. We are also engaging with stakeholders to foster a low carbon supply chain. Globally, we have partnered with GE to expand the range of HV equipment using a game-changing gas alternative to SF6, a greenhouse gas.
Our HVDC (high voltage direct current) projects conserve more land than alternative AC links.
For instance, the 800 kV North-East Agra ultra-high voltage direct current (UHVDC) link and the 800 kV, 6,000 MW Raigarh-Pugalur UHVDC link. Our ester-filled transformer for Tata Power is another example of our efforts towards preserving our environment and stakeholder engagement.
Where does the society feature in the company’s carbon-neutrality plan?
Reduction in carbon emissions benefits the environment and the society. We are developing our eco-portfolio to minimise the impact on people and the environment, building on products that have a smaller carbon footprint, and cutting dependence on greenhouse gases (GHG). Globally, we have launched our latest portfolio of EconiQ products, services and solutions, containing no SF6.
How is the company gearing up to face local regulations in addition to COP26?
COP26 will mark the first time the leaders will be meeting in the new normal. There will be a stronger focus on building back and building better. We have already seen this at the leader's summit on climate held in April, where the US resumed its lead and other G7 countries raised their climate commitments.
Although 2021 is the mid-way in the timeline for achieving Sustainable Development Goals (SDGs), we will likely see an upward revision of targets, based on the urgency, reinforced by extreme climate events.
Our company’s carbon neutrality goals align with India’s Mission Innovation and the United Nations’ Sustainable Development Goal 7 for affordable and clean energy.
We are lending support to the government’s efforts on clean energy, rail electrification, e-mobility and reliable power for all through our product range.
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