Hitachi eyes carbon-neutral supply chain

Japanese electronics giant Hitachi says it wants its entire supply chain to be carbon neutral by fiscal 2050.

Hitachi says it released about 72 million tons of carbon dioxide in fiscal 2020, through sourcing raw materials and manufacturing its products.

The company says over 90 percent of those emissions came from suppliers and other business partners.

Hitachi had already announced it was targeting carbon neutrality in its own factories and offices by the end of fiscal 2030.

Group-wide, Hitachi has one of the biggest supply chains in Japan. It does business with about 30,000 companies.

Hitachi says it will first compile a strategy with roughly 800 firms that make up 70 percent of its transactions in value terms.

The group also plans to use advanced energy management systems to hit its targets.

Hitachi is following the lead of financial groups Sumitomo Mitsui and Mitsubishi UFJ, both of which are aiming for carbon neutrality by 2050 in the firms they invest in or lend to.