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Sullair Announces Climate Change Action — Aims for Carbon Neutrality in 2023

Strategy includes CO2 reduction, transitioning to 100% renewable electricity and a carbon offset program.

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Sullair, a Hitachi Group Company, announced its long-term climate action strategy and goal to globally reach carbon neutrality. It will be achieved by undertaking capital expenditure projects to further facilitate CO2 reduction, transitioning to 100% renewable electricity through a voluntary green power program, and implementing a voluntary carbon offset program.

This strategy comes in line with Hitachi, Ltd.’s long-term environmental targets, titled “Hitachi Environmental Innovation 2050.” The Hitachi Group has set a target of becoming carbon neutral in all its global factories and offices by fiscal 2030 and achieving carbon neutrality throughout its entire value chain by fiscal 2050.

The Sullair Michigan City campus (at right) achieved carbon neutral status in fiscal 2021 (ending March 31, 2022) ahead of plan, and the rest of its global operations aim to achieve carbon neutrality by the end of fiscal 2022 (March 31, 2023).

"Sustainability is both at the core of our strategy and a driver of our business," said John Randall, president and CEO of Sullair. "Customers and businesses are increasingly making a conscious effort to buy products and services that help promote sustainability, assist the environment, and reduce the impact of climate change. By establishing this long-term climate roadmap and taking immediate action, we aim to fully play our part in the fight against climate change."

The company’s long-term climate action strategy includes three focus areas:

Undertaking capital expenditure projects over the next 12 months to facilitate CO2 reduction including:

• Upgrade nearly 1,100 fluorescent lights in its Michigan City, Ind. factories to high-efficiency LED lighting, reducing its annual CO2 by 350 tons.
• Upgrade its nearly 40-year-old HVAC equipment to a variable refrigerate flow (VRF) HVAC system, reducing CO2 by 605 tons each year.
• Install 80 pace node devices throughout its Michigan City campus to monitor energy usage on each piece of equipment.
• In its global facilities, install a variable speed drive compressor to power its China manufacturing facility, along with installing solar panels and upgrading air conditioning units.
• In Australia, transition its service fleet to hybrid vehicles and, later, fully electric vehicles.

Transitioning to 100% renewable electricity by joining a voluntary green power program to run a portion of its Michigan City campus which purchases Renewable Energy Credits (RECs) on the company’s behalf and allows Sullair to designate a portion of its monthly electric usage to come from power generated by renewable energy sources, such as wind power.

Implementing a voluntary carbon offset program allowing Sullair to offset CO2 emissions while developing and implementing future additional measures for fossil fuel use reduction over the next 4 years.

Voluntary Carbon Offset Program

As part of its long-term climate action strategy, Sullair has launched a voluntary carbon offset program in conjunction with World Kinect Energy Services, the sustainability division of World Fuel Services Corporation. Sullair has committed to voluntarily offset at least 28,000 mtCO2e through 2025. This is the equivalent of 69,501,756 miles driven by an average gasoline-powered passenger car or the amount of carbon sequestered in 189 acres of forests per year. This initiative allows Sullair to act immediately and further demonstrates its commitment to addressing climate change.

A carbon offset represents one ton of greenhouse gas emissions that has been avoided or reduced in the atmosphere. Purchasing carbon offsets allows companies to compensate for their residual carbon footprint by supporting projects worldwide that reduce carbon emissions. Carbon credits purchased by Sullair will help with the Guanaré Forest Plantations on Degraded Grasslands Under Extensive Grazing project. The land targeted by this project is under extensive grazing by beef cattle ranching, and the project will reforest 21,298 hectares in the eastern part of Uruguay, creating new job opportunities and reducing CO2 by 127,000 tons per year.

Through World Kinect, Sullair is investing in high-quality, trusted carbon offsets that have been independently verified and meet the highest international standards such as the Gold Standard or the Verified Carbon Standard (VCS).

“Each company has a unique approach to sustainability, and we applaud Sullair for its thoughtful approach and leadership,” said Michael Kasbar, chairman and chief executive officer of World Fuel Services Corporation. “Our experts at World Kinect developed a tailored carbon offset solution that enables Sullair to make immediate progress towards their long-term sustainability goals.”

About Sullair

Since 1965, Sullair has developed and manufactured air compressors with proven reliability and wear-free durability. Sullair is globally recognized as a leading manufacturer of air compressors for use in manufacturing, oil and gas operations, food processing, construction and more. Sullair has manufacturing capabilities in Michigan City, Indiana; Suzhou, China; and a JV (IHI-Sullair) based in Suzhou. Sullair is a Hitachi Group Company. For more information, visit www.sullair.com.

About Hitachi, Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is focused on its Social Innovation Business that combines information technology (IT), operational technology (OT) and products. The company's consolidated revenues for fiscal year 2020 (ended March 31, 2021) totaled 8,729.1 billion yen ($78.6 billion), with 871 consolidated subsidiaries and approximately 350,000 employees worldwide.

Hitachi is working to increase social, environmental, and economic value for its customers across six domains; IT, Energy, Industry, Mobility, Smart Life and Automotive Systems through Lumada, Hitachi's advanced digital solutions, services, and technologies for turning data into insights to drive digital innovation.

For more information on Hitachi, please visit https://www.hitachi.com.

About World Kinect Energy Services

Headquartered in Miami, Florida, World Kinect Energy Services is a division of World Fuel Services Corporation, a global energy management company involved in providing supply fulfillment, energy procurement advisory services, and transaction and payment management solutions to commercial and industrial customers. We believe that sustainability, the environment, health and safety, diversity and social responsibility are critical to our long-term success, and we are focused on creating a more sustainable future through our actions, investments, and energy solutions.

With 35 years of experience, World Kinect Energy Services is trusted by commercial and industrial customers worldwide to deliver conventional and renewable liquid fuels, lubricants, electricity, natural gas, sustainability services and data management for international brands and local businesses in more than 200 countries and territories worldwide.

For more information, call 305-428-8000 or visit www.world-kinect.com.