ACKNOWLEDGEMENT

I, Anish K R of IPM 02 Sec A Wish to thank Prof. Muhammed Ashiq V for the wonderful
opportunities he provided to me and for giving good knowledge over the course Environmental
Economics. More than knowledge we have learnt variety of new things which would be useful
for our survival in daily life. So, I would like to thank Prof. Muhammed Ashiq V for helping
me throughout the course.

Contents
INTRODUCTION ....................................................................................................................................... 3
BUSINESS MODEL .................................................................................................................................... 4
ENVIRONMENTAL .................................................................................................................................... 6
Why are they doing? ........................................................................................................................... 6
What are they doing?.......................................................................................................................... 7
Environmental Ac on Plan of Hitachi Energy ..................................................................................... 8
SOCIAL ................................................................................................................................................... 10
Innova on Management................................................................................................................... 10
Human Capital................................................................................................................................... 11
GOVERNANCE ....................................................................................................................................... 13
Corporate Governance ...................................................................................................................... 13
Business Ethics and Compliance ....................................................................................................... 14
Risk Management ............................................................................................................................. 15
Informa on Security ......................................................................................................................... 15
HOW TO IMPROVE ENVIRONMENTAL PERFORMANCE......................................................................... 16
CONCLUSION ......................................................................................................................................... 17
REFERENCES .......................................................................................................................................... 17
 INTRODUCTION

Hitachi Energy India is a part of the well-known Hitachi Group. The company is plays
important part in the energy sector of India and also focuses on sustainable growth.

Hitachi Energy India is actively engaged in various energy-related activities, using the rich
heritage of excellence and innovation established by Hitachi on a global scale. The company
is taking the lead in upbringing India's energy sector to top and focuses on improving the
current power generation, transmission and distribution systems in India.

Hitachi Energy India is dedicated to sustainability and safeguarding the environment. They use
latest methods to give energy solutions that are clean and effective. Hitachi uses smart
grids and EMS (energy management systems) to provide better energy conservation
and decrease carbon emissions.

Hitachi Energy aim to provide innovative and sustainable that benefit industries, communities,
and individuals. Hitachi Energy India is working towards a cleaner and more prosperous energy
future. They aim contribute to India's Energy Sector's Growth to the fullest they can
 BUSINESS MODEL

Hitachi Energy’s business revolves around 4 business units these four business units are -:

Grid Automation - The Grid Automation business unit of Hitachi energy

India possesses a wide range of solutions in its portfolio. The areas covered include
substation automation, communication networks, grid automation services, grid edge
solutions, and enterprise software solutions. The solutions cover various important
aspects such as generation, transmission, distribution, industries, transportation, and
infrastructure sectors.

The Grid Automation business unit of Hitachi Energy provides assistance to 50% of the
top 250 electric utilities worldwide which is a huge number. The Grid Automation
hardware, software, and services portfolio brings together extensive knowledge in the
field and advanced technologies. This helps customers to improve the important
systems that provide power, transportation, and connectivity. Hitachi's efforts are
focused on constructing a world that is both efficient and environmentally conscious.

Grid Integration – Hitachi energy has completed a huge amount of projects in the past
years. They have a wide range of grid integration portfolio which includes electric Sub-
station and energy transmission. They focus on efficient integration of electrical
network systems while minimising the impact on environment. Hitachi integrates their
DC and AC systems and services like High Voltage Direct Current (HVDC),
Substations, FACTS, Grid and Power Quality solutions like wind turbine and
Semiconductors. They provide Power Consultation in the energy field including
renewables, transmission and distribution of power sources.

High Voltage Products - Hitachi Energy specialises in high-voltage technology. They

provide a wide range of high-voltage products from 1,200 kilovolts AC supply to 1,100
kilovolts DC supply. It offers various products and services which aims to improve
power networks with safety, reliability, and efficiency. Their products include
switchgears, circuit-breakers, generators break, electrical safety
products, disconnectors, instrument transformers, and high-voltage service. They
majorly focus on minimising environmental impact. Some big advancements in
Hitachi's High Voltage Products are active technology quality of power and battery
energy storage, environmentally friendly switchgear, digital engine circuit-breaker, and
hybrid switchgear.

Transformers - Hitachi Energy gives a wide range of selection of electric power

transformers, traction transformers, insulation and components, electronic sensors, and
transformer services. Hitachi transformers are sold in approximately 100 countries
worldwide. They are used in many industries like power generation, transmission and
distribution etc. As the grid becomes more complex, their transformers come into
action more and more to boost power quality and manage the network. Hitachi
is launching their TXpert™ Ecosystem, which will take the digitalization of
transformers to a different level.
 Who are the customers - They have very diverse customers like from the sectors of
utilities and transportation. IT markets like data centres and Smart Life are served via
offering them creative solutions and customised services throughout the entire value
chain.

How the business is organized – They have plants in various parts of India and the
world through which they provide 24/7 service to their customers. They provide proper,
timely and efficient supply to the demand market.

Do they capture value – Hitachi energy is one of the top trusted and performing brand.
It has successfully created a good brand value and brand emotions among its customers.
They operate in almost all parts of the world and their main is to focus on sustainable
growth.

ENVIRONMENTAL

Why are they doing?

Innovative technology and products from Hitachi help the society. They handle challenges
with long-term environmental management. Meeting society's expectations with inventive
environmental solutions can help business. Hitachi's Environmental Vision aim is to
enhance life and promote sustainability. Their Social Innovation Business will collaborate
with stakeholders to achieve this. To realise this vision and eliminate carbon emissions,
resource waste, and ecological conflict, Hitachi Environmental Innovation 2050 sets long-
term environmental goals. Their Environmental Action Plan, revised every three years,
promotes environmental activities inside the organisation. Their goal is carbon neutrality at
all factories and offices by 2030 to decarbonize society. They aim on carbon neutrality
across our value chain by 2050.
 Hitachi’s Environmental vision and targets

What are they doing?

Improving the level of environmental governance.

Developing a better environmental management system.

The certification initiative "Eco-Factories & Offices Select" helps

Hitachi to minimise the impact on environment.

They provide knowledge on environmental to their employees with the help of

classes.

They ensure to safeguard the natural compliance.

 Decrease CO2 emissions and achieve carbon neutrality across Hitachi's whole
value chain.

Venture out and expand the business of decarbonization.

Reducing the amount of CO2 emitted in the business sites to achieve a clean
and efficient neutrality.

New concept of Hitachi Internal Carbon Pricing (HICP) framework.

Introduction and efficient use of renewable energy.

Building a system of society which is water efficient.

Timely and technologically advanced response to water based risks.

Construct a society where we use resources efficiently and minimally.

Converting to a resource-efficient circular economy.

They are trying to reduce impact on natural capital through new initiatives.

Managing chemical compounds in goods and company processes.

Taking initiatives to save and preserve our ecosystem.

Environmental Action Plan of Hitachi Energy

 Hitachi developed an Action Plan for the three-year period with indicators and targets
addressed by the Mid-term Management Plan it actively promotes the plan's execution
in order to achieve its Environmental Vision and the Hitachi Environmental Innovation
2050 long-term environmental targets.
 GREEN 21

 They monitor and manage their Environmental Action Plan performance over three
years using GREEN 21.
Environmental Action Plan targets at 160 major sites in category A are transformed
into green points (GPs) and assessed category-by-category in GREEN 21. Perfect
scores in any category are 100 GPs. Achievement of yearly Environmental Action
Plan goals and bold efforts is rewarded. GP progress lets sites compare their
accomplishment in each category. The PDCA cycle of the Environmental Action Plan
uses the outcomes.
 SOCIAL

Innovation Management

1. Why it matters? - Hitachi has been committed to contributing to society by

developing excellent technology and products for over 100 years and seeking to
innovate for the future. Hitachi utilises data and technology for making of resilient
products, solutions and business models which gives a sustainable society and business
in presence of numerous complicated societal concerns. They are back casting from
2050 to enhance research and development for better innovation and IP protection and
utilisation.

2. What is being performed?

Dilating the investments for innovation.

Creating digital service enterprises using Lumada growth model.
Back-casting from the year 2050 in order to generate revolutionary
innovation.

HOW? - The Innovation Growth Strategy Division will focus

on developing investment strategies to drive customer growth and
encourage the formation of digital services and innovation.
Hitachi is developing an innovation promotion system to utilise Hitachi
Group's technology, people capital, and customer network for global
expansion.

Working on evolving Lumada model further.

Enhancing the recruitment and cultivation of digital talent.
Creating the next gen supporting pillars of sustainable growth.
 HOW? - The Global Centre for Social Innovation and the Centre for
Technology Innovation were merged in April 2022 to form the Centre for
Digital Services and Centre for Sustainability. The objective was to increase
value generation using DX/GX to boost global corporate growth.

Human Capital

1. Why it matters? - Hitachi prioritises employee rights, equal opportunities, workplace

safety and health to achieve these goals. Hitachi actively promotes employee
satisfaction and pride and discusses about employee treatment and career advancement
to improve employee-company relations.

2. What do they do?

They place the right person in the required role.

They give a fair compensation based on a fair method of evaluation.
They are creating a trademark of global Hitachi culture.

HOW? - Hitachi's goal is to become the preferred employer in global markets.

Their focus is on improving the human resources by giving emphasis on three
important aspects: People, Mindset, and Organisation. These pillars along with
the underlying Foundation of HR strategy, are crucial for their growth and
development.

They are working towards speeding up the progress of Diversity, Equity and
Inclusion (DEI) by implementing Hitachi's DEI policy and strategy.
HOW? - Hitachi is advancing DEI globally and regionally under the Chief
Sustainability Officer's new policy and strategy. The Global DEI Council discusses DEI
strategy activities for Group companies worldwide and for their company
operations. To promote diversity and inclusion the company has appointed DEI
promotion leaders in each region, taking into account regional characteristics and
business strategies.

 Promotion of work-style reforms

 Introducing and enhancing systems to help working parents juggling child care
and nursing responsibilities.
 Putting in place support systems and measures that meet the different needs of
employees and also Stopping long hours and overwork. Promoting different ways of
working in the "new normal."

HOW? - Work-life management can improve workers work life and personal lives
which will lead to sustainable organisational growth. They have established systems
support work-style reforms and balance between employees work and personal
lives based on this idea.

Social Growth Plan of Hitachi Energy

 GOVERNANCE

Corporate Governance

1. What are they doing?

o The complete integration of all principles outlined in the Corporate Governance

Code.
o Having board meetings so that it improves the company's value and
shareholders' interests in the long run.
o Including sustainability goals in the evaluation of pay for executives.
o Implementing internal controls to improve financial reporting.
Additionally aiming to enhance collaboration through tripartite audits.

HOW? - In 2003, Hitachi introduced an Audit, Compensation, and Nominating

Committee into its present committee system. Individual directors lead these
committees and make up the majority of members. The organisation has
established a framework that separates business management execution from
supervision enabling effective oversight.

Hitachi Corporate Governance Framework

 Business Ethics and Compliance

1. What are they doing?

 Ethical and Legal Evaluation of Hazards

 Developing a More Effective Global Hitachi Compliance Service
 Bringing a halt to corruption and bribes
 Establishing stringent export controls
 Creating a Moral and Law-Abiding Workplace

HOW? - The Hitachi Group Codes of Conduct describes decision-making methods and
actions for executives and workers. Hitachi Group Head of Ethics and Compliance
oversees the One Hitachi Compliance Programme, promoting worldwide compliance
activities. They collaborate with ethical and Compliance officials worldwide to
improve company ethical standards and enhance the One Hitachi Compliance
Programme.
 Risk Management

1. What are they doing?

 Enhancing risk management techniques.

 Gaining an understanding of the risks and possibilities associated with
investment, sustainability and other topics and acting accordingly.

HOW? - Established in April 2022, the Risk Management Meeting is a subcommittee
of the Senior Executive Committee that discusses major issues of Hitachi management.
The meeting headed by the CEO and the CRMO discusses and makes decisions on
critical issues pertaining to the company's risks. Hitachi is aiming to build a strong
management base tied to growth strategy by centralising the oversight of Hitachi's many
global hazards.

Information Security

1. What are they doing?

 Performing in-depth audits and inspections of data security and privacy.

 complying with international privacy regulations.
 Obtaining Privacy-Mark approval.
 Avoiding information leakage.
 Brining strict security monitoring.
 Policy for Communicating Information Safety Measures.

HOW? - Information Security Policy promotes cybersecurity risk management at

Hitachi. The Information is supervised by Chief Information Security Officer
(CISO) Security Committee being the C-level executive with ultimate power and
responsibility for information security and personal privacy problems. The
 committee sets policies and actions while information security chiefs raise
awareness and monitors implementation within Hitachi Group of companies.

HOW TO IMPROVE ENVIRONMENTAL PERFORMANCE

Weaknesses of Hitachi Energy and how they can address them

1. Extreme Dependence on Outside suppliers - Hitachi sources all of its raw materials
from an extensive number of companies located in every region of the world. The
company faces difficulty in coordinating with its many suppliers and in dealing with
swings in currency rates.

Solution – Outsourcing materials will incur a lot of cost for the company which could
be invested in the field of environmental development and sustainability. Also there will
be a lot of damage to environment when we transport materials from one place to
another so the opportunity cost will be high. So, Hitachi should start to produce
materials in order to reduce both cost and environmental loss.

2. Long – Term Contracts – In the field like energy and power sector there will be many
long-term contracts between the companies involved in the production, supply and
distribution. So, due to these long-term contracts a company will not be able to bring
changes quickly and effectively.

Solution – Hitachi should try to minimise the long term contracts because if they think
of bringing any changes to ESG in their future they will not be able to imply it properly.
These contracts will stay as a barricade for the changes and growth of a company ESG
wise. Minimising the number of contracts involved will help to company to operate
independently.

3. Mismatch in supply and demand – Supply and Demand mismatch will cause some
major problems to a company. But usually there are more demand than the supply in
the market.
 Solution – This imbalance in supply induces producers to manufacture more product
and get that one additional unit of profit. In this process the producers will not
concentrate on environmental damage which is caused by the over-production of
materials. So if supply and demand are balanced it will create a proper balance.

4. Support Government Initiatives – They should start collaborating with government

and start supporting movements and initiatives for a better natural cause. They should
aim to reach the environmental goals set by the government.

CONCLUSION

From this project we are able to see how much efforts a company takes in order to reduce
even the one unit of pollution which they can. Not only about environment but the companies
also focus on social and governance related factors from Employee wellness to information
safety. Each and every process of these are perfectly planned and involves a lot of people’s
approval. A detailed ESG report will show the efforts taken by the company in reducing the
amount of environmental damage caused by both them and their co-companies. So we should
also learn and implement whatever we can to reduce the amount of environmental damage
which is being caused as the world, air and water are everyone’s rights and it is a public good.

REFERENCES
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