Page 76 - Hitachi IR 2025

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
S.
No.
Material
issue
identified
Indicate
whether
risk or
opportunity
(R/O)
Rationale for identifying the risk
/ opportunity
3 Carbon
neutrality
R Unprecedented demand creating
pressure on the sector to expand
the supply chain and dilute levels
of ESG performance
 Investment in capacity extension
might dilute the strategic focus
on accelerating development of
new technologies and/or business
models to thrive after the peak of
the industry super-cycle
Unbalanced grid development
from the perspective of
intermittent energy supply and
storage might critically affect
power quality
 Investment in achieving the
reduction targets is not balanced
out by an increase in revenue or
reduction in costs, increasing the
costs of our products and services
and reducing competitiveness
 Carbon reduction targets are
not achieved, reducing our
competitiveness in the market
4 Innovation R/O The risks landscape around
innovation of sustainable products
and solutions in our industry is
quite complex.
Some of the risks are customer-
facing (for example, inadequate,
or insufficient infrastructure,
lack of grid capacity to connect
renewable energy resources or
electrification solutions for energy
intensive industries, new product
range price or usage and adoption
anxiety), while others are design
and manufacturing related (for
example, availability of sustainable
materials, quality control,
upgrading of production lines,
service, circularity and end of life
recovery, training and recruitment
of specialized resources,
compliance with regulatory and
legal requirements, investment
costs).
Another risk area relates to
regulatory environment, which may
require technology providers to
invest vast amount of funding to
develop new sustainable solutions
while the market adoption of them
is relatively low.
Therefore, the regulatory actions
need to balance between creating
sustainability markets and
developing sustainable technology,
for a healthy development of
sustainable solutions.
74 Hitachi Energy India Limited
In case of risk, approach to adapt or
mitigate
Financial
implications of the
risk or opportunity
(Indicate positive
or negative
implications)
The path towards limiting global
warming, as envisioned by the Paris
Agreement, is a critical challenge
for governments, businesses, and
organizations. The Company has,
therefore, defined and validated
ambitious greenhouse gas (GHG)
reduction targets to set its own
net-zero trajectory. The Company
ensures compliance with emerging and
future GHG emissions regulation or
legislation.
Negative
The Company’s innovative technologies
and solutions help increase access to
affordable, reliable, and sustainable
energy vital for society to prosper
and progress. As consumer needs
and lifestyles continue to evolve,
our forward-looking technologies
help make the energy system more
sustainable, flexible, and secure.
The opportunity of innovating and
bringing to the market sustainable
products and solutions in its field of
business is significant and it expects
frontrunners to become the brand,
supplier, employer, and investment
of choice for its stakeholders. As
electrification is one of the key pillars
of decarbonization, the most innovative
companies will also have the biggest
contribution to a net-zero future. The
Company identifies innovation as part
of its DNA and strategy on a short-,
medium-, and long-term basis.
Positive