Hitachi Rail: Scaling up Without Scaling Back on Net Zero

Hitachi Rail has undergone a major expansion over the past year, acquiring Thales’s Ground Transportation Systems, and nearly doubling its workforce.

While such a major acquisition could disrupt Hitachi Rail’s sustainability strategy, Hitachi Rail’s focus on decarbonisation remains a priority. It has reaffirmed its commitment to achieving carbon neutrality across its business sites by 2030.

According to Hitachi Rail's latest sustainability report, it also plans to maintain its commitment to being net zero by 2050. This is despite the acquisition adding 484,000 tonnes of greenhouse gases to its Scope 3 emissions baseline.

"We are proud to report we are on track to achieve net zero emissions across our entire value chain by 2050," says Giuseppe Marino, Head of Mobility Business and Group Chief Executive.

Manufacturing transformation and site decarbonisation

Clear evidence of this commitment can be seen at Hitachi Rail's manufacturing facilities where site-level decarbonisation projects are yielding tangible results.

Its new plant in Hagerstown US already runs with zero Scope 1 and 2 emissions, by eliminating fossil fuels. A power purchase agreement with Suntrail Energy supplies up to 70% of the plant's energy needs, reducing emissions by an estimated 870 tonnes of CO₂ annually.

Similar initiatives are being implemented across Europe. In Italy, electrifying equipment at the Reggio Calabria site is projected to cut annual Scope 1 emissions by about 450 tonnes by 2026.

These efforts contribute to a strong waste management record. Manufacturing sites in Naples, Hagerstown and Reggio Calabria all achieved zero-landfill status in FY24 and Hitachi Rail now diverts waste from landfill at 97% of its manufacturing facilities.

Developing battery technology for greener railways

Beyond its own operational footprint, Hitachi Rail is advancing technologies to help railway operators reduce their carbon emissions. During FY24, the company completed the design phase for battery-powered train prototypes in the UK.

This work builds on experience from its Italian regional tri-mode battery trains, that Marino noted "continue to operate daily".

The commercial potential of this technology was confirmed when Hitachi Rail secured its first order for 14 tri-mode intercity trains after the reporting period. This aligns with the EU's Rail4EARTH programme, which aims to develop zero-emission trains to replace diesel units.

Digital systems and strategic sustainability

Hitachi Rail is also leveraging digital systems to create efficiency gains for operators. It launched HMAX in FY24, a digital asset management platform that creates digital twins for whole rail ecosystems.

The system targets cost reduction and emissions management by enabling predictive maintenance and identifying optimal driving patterns. One customer recorded an 8% energy saving using the platform and Hitachi Rail suggests this could reach 15% at scale.

These digital capabilities are enhanced by the expanded signalling expertise gained from the Thales acquisition.

This creates what Dr Maiya Shibasaki, Hitachi Rail's Chief Sustainability Officer (CSO) describes as a strategic advantage.

"Sustainability is not just about compliance – it's a strategic business driver that fuels innovation strengthens competitiveness and builds long-term value" she says.

Hitachi Rail's sustainability goals are now more deeply integrated into its organisational and incentive structures. 20% of short-term incentive compensation is now linked to sustainability targets.

This financial alignment is complemented by governance changes, including the appointment of an Independent Non-Executive Director to the board from FY25 to enhance oversight.

In FY24 Hitachi Rail reported total Scope 1 and Scope 2 emissions of 35,046 tonnes of CO₂ equivalent with Scope 3 emissions at 7.4 million tonnes. 

It has set a target for a 75% reduction in Scope 1 and 2 emissions by 2027 against a 2019 baseline.