In an interview with ResponsibleUs, Pablo Orvananos, Global Sustainability Lead at Hitachi Digital Services, discussed how Hitachi has established a parallel path for innovation, where technology meets sustainability to create lasting value for people and the planet.
Pablo has more than 18 years of experience in sustainability and strategy, working in both mature and emerging markets, like Spain, China, UK, Australia, Vietnam and Mexico. He has a demonstrated track record in developing high-level sustainability strategies, driving business transformation, developing new circular business models, and successfully creating solutions for complex business challenges.
At Hitachi Digital where he initiated and developed a comprehensive sustainability offering from the ground up, and collaboratively works with innovative sustainability startups to help clients achieve their sustainability ambitons.
How is Hitachi Digital Services integrating the twin forces of digital transformation and sustainability to ensure their combined impact is lasting?
Hitachi Digital Services integrates digital transformation and sustainability by deeply understanding the transformative potential of digital tools in advancing a company’s sustainability journey. Recognising that each organization operates at a unique stage of maturity, we tailor digital transformation roadmaps that simultaneously address their business and sustainability challenges. Our approach emphasizes designing systems that are not only digitally innovative but also aligned with sustainability principles, ensuring that our solutions drive measurable results. This dual-focus strategy ensures that the impact of digital transformation and sustainability integration is not only significant but enduring.
If possible, provide instances where your sustainability practice helped them reduce their carbon footprint.
Our work with a global manufacturing firm stands as a clear example of this. We deployed digital twin technology for energy monitoring across sites. As a result of the implementation, the identification of inefficiencies in energy consumption has led to optimization and a reduction of more than 15% in the company’s carbon emissions within the first year. An example of this includes AI predictive maintenance solutions provided to a transport client and the considerable reduction in emissions realized from the resultant fuel savings due to the extension of asset life and unnecessary consumption.
What role does AI play in advancing sustainability initiatives inside Hitachi DS, along with IoT?
AI and IoT are pivotal in advancing sustainability at Hitachi DS. AI provides predictive insights to optimize energy and resource consumption, while IoT enables real-time data collection from devices and systems. Together, they create a synergistic approach where actionable insights drive smarter, more sustainable operations. For instance, our AI-powered platforms analyze IoT data to enhance supply chain transparency, reduce waste and rework, and achieve greater efficiency in energy-intensive industries.
How does Hitachi ensure that its sustainability strategy aligns with globally perceived frameworks such as the UN SDGs or the Paris Agreement?
Hitachi DS aligns its sustainability strategy with global frameworks by conducting comprehensive materiality assessments to identify the most relevant SDGs for our operations and solutions. At a group level we set science-based targets to meet the Paris Agreement goals and integrate these frameworks into our corporate KPIs, ensuring that our actions are measurable and aligned with global expectations.
Be specific in the measure of sustainability initiatives internally and for your customers:
We measure the success of sustainability initiatives through well-defined KPIs aligned to key reporting frameworks (such as CSRD, GRI, and CDP just to name a few) that provide actionable insights into social and environmental impact. To support these efforts, we have developed RITA, our proprietary ESG tool. RITA enables Hitachi companies and external clients to baseline and track their progress toward ESG targets. This tool provides a data-driven approach to sustainability management, ensuring that both internal initiatives and client projects are aligned with measurable and impactful outcomes
What innovative solutions has Hitachi DS recently developed to tackle energy efficiency and resource optimisation?
Hitachi DS has developed energy management systems powered by AI and IoT, which optimize power usage in real-time. Additionally, our Lumada platform integrates data insights to streamline resource utilization in industries such as manufacturing and transportation. These solutions not only improve energy efficiency but also reduce operational costs and environmental impact.
How do you manage the tension between profitability and sustainability in your projects with clients?
Balancing profit and sustainability on client projects involves the three levers of new partnerships, new business models, and new technologies. Work with suppliers, competitors, and governments for resource-sharing and co-innovation for cost savings that adds to a sustainability context. Circular business models such as reuse, refurbish, or sharing economies increase efficiencies and minimize wastes by creating new revenue streams. Lastly, the inclusion of advanced technologies such as AI and block chains ensures users are transparent about their business and optimizes resource and streamlined operations. The transition to a circular economy makes the first mover reap the actual-burning opportunities to date. Instead of seeing this change as a challenge, companies should view it as an opportunity – and grow with sustainability attached.
What does Hitachi do to ensure a supply chain compliant with sustainable and ethical principles?
Hitachi group has stringent supplier codes of conduct and regular audits for compliance in sustainable and ethical practices. Along this, we help suppliers lower their emissions across supply chains along with adopting sustainable materials where possible. Digital tools like blockchain technology even bring forth more transparency and traceability towards that end.
Can you take a few minutes to explain how crucial data-driven insights would be in putting together an effective sustainability strategy?
Data-driven insights are essential in identifying inefficiencies and setting realistic sustainability targets, as well as for monitoring progress. Applying big data analytics reveals trends and opportunities for improvement-in fact, our solutions are enabling informed decision making by clients about their resources and processes.
How does Hitachi ensure engagement with local communities for inclusive and equitable processes in regard to its sustainability projects?
As a group, we actively engage with local communities through stakeholder consultations, partnerships with local organizations, and initiatives that address community-specific needs. This inclusive approach ensures that our projects benefit all stakeholders equitably while fostering long-term relationships.
What advice would you give other organisations that want to integrate sustainability into their digital offering?
To bake sustainability into digital services, first have it be internalized within core strategy and product design-it should never be an afterthought but a business model dimension in itself. Ask stakeholders early-on in the process what objectives they want to achieve and give digital tools in measuring and understanding environmental and social impacts. Set clear actionable roadmaps-with milestones-onward toward reaching sustainable desired outcomes. Start small and build as your organisation matures. Sustainability is a marathon, not a sprint; therefore, it demands long-term commitment as well as steady progress. Emphasize transparency to build trust with stakeholders while creating collaboration across your ecosystem.
How does Hitachi DS respond to the dilemma of decarbonising the hardest-to-abate industries?Hitachi DS is taking a tailored, multifaceted approach to meeting the challenge of decarbonizing traditionally hard-to-abate sectors. The pathways are then individualized, as this sector faces different challenges with unique solutions pertaining to this process, such as process optimization, innovative strategy development, and partnership with industry leaders. A commitment to research and development ensures the continuous advancement of effective approaches, while collaboration enables practical, scalable implementations that align with the realities of each sector.
Which future trends in sustainability excite you the most, and how is Hitachi DS positioned to leverage them?
Especially the emergence of circular economies, the advanced technology of renewable energies, as well as AI-propelled innovation in sustainability. Hitachi DS will capitalize on these multiple trends by investing continuously in research and development and establishing joint ventures in addition to its complete Lumada solutions suite.