Reducing the Amount of the Energy Used and CO2 Emissions in Production Activities

Panasonic promote making its factories zero-CO2 emission factories as a part of efforts towards the Environment Vision 2050. Zero-CO2 emission factories contribute not only as measures for climate change, but also to reinforcement of environmental sustainability management through energy-saving measures in factories, reduction in CO2 emissions, productivity improvement, and reduction in energy costs. We formulated an "Environmental Action Plan, Green Plan 2021" for the current medium term with a focus on 'energy' as one of the priority issues. Based on the plan, all our factories are working to 'promote zero-CO2 emission model factories', 'increase the use of renewable energy', and 'promote production with energy minimum."

As a part of efforts to 'promote zero-CO2 emission model factories' in fiscal 2021, Panasonic Energy (Wuxi) Co., Ltd. (PECW) in China realized zero CO2 emissions.*1

In the area of 'increasing the use of renewable energy', the amount of renewable energy adopted at our sites*2 in fiscal 2021 marked 35 GWh and this figure shows steadily increasing transformation of the use of power towards the fiscal 2022 target of renewable energy generated at our sites of 40 GWh.

As a part of efforts to 'promote production with energy minimum', each factory takes its own initiatives on the promotion.

The fiscal 2021 investment to reduce the amount of energy used and CO2 emissions by the efforts was 2.2 billion yen.*3

These efforts in fiscal 2021 resulted in 4.9 TWh*4 of the energy used in factories, and the amount of CO2 emissions was 2.11 Mt in fiscal 2021.

In August 2019, Panasonic joined 'RE100',*5 an international initiative of corporations committed to change over to 100% renewable energy to be used for electricity in their business activities. We aim to replace all of our purchasing electricity across the world to 100% renewables by 2050, as well as to realize manufacturing with zero CO2 emissions. The progress ratio in FY2021 is 2.5%.

Additionally, Panasonic has participated in Keidanren's "Action Plan for Low Carbon Society", a voluntary action program to prevent global warming, collaborating all members of the whole electrical and electronic industry, with targets set for 2030. Specifically, we are steadily implementing energy-saving measures at our factories and offices to achieve the goals set by the industry in Japan, aiming to 'improve the energy consumption per basic unit at our factories and large offices at an annual rate of 1% on average towards 2030'.

*1 See relevant topics.
*2 The total amount of the adoption is subject to the amount of photovoltaic energy, wind power, and biomass energy including the amount of the renewable energy adopted at our manufacturing sites and non-manufacturing sites, excluding the amount of energy from heat pumps.
*3 The total amount includes all investments concerning reduction of the amount of the energy used and CO2 emissions. Note that differences or proportions of the investment are not calculated.
*4 In fiscal 2021, the unit used to measure the energy consumed in a factory was changed from TJ to TWh. The consumed power is measured in kWh and the consumed fuel is measured using its calorific value and then converted to electrical power units at 3.6MJ/kWh. These two values are then totaled. Because of the change, the amounts of the energy used in the preceding years were also recalculated with the new factors.
*5 Press release on August 30, 2019.
Panasonic Joins RE100 Aiming for Business Operations with 100% Renewable Energy

Energy Consumption in Production Activities

Energy consumption in production activities: 6.2 TWh in fiscal 2017, 6.1  TWh in fiscal 2018, 5.9 TWh in fiscal 2019, 5.2 TWh in fiscal 2020, and 4.9 TWh in fiscal 2021.

CO2 Emission in Production Activities and CO2 Emission Per Basic Unit

Changes of CO2 emissions in production activities were 3.34 million tons in FY2014, 2.48 million tons in FY2017, 2.4 million tons in FY2018, 2.35 million tons in FY2019, 2.23 million tons in FY2020, 2.11 million tons in FY2021. Changes of CO2 emission per basic unit were 100 in FY2014 as base year, 78 in FY2017, 70 in FY2018, 68 in FY2019, 69 in FY2020, 73 in FY2021.

CO2 Emission in Production Activities (by region)

CO2 emissions in production activities in fiscal 2021 (by region): 0.87 million tons in Japan,  0.55 million tons in China and Northeast Asia, 0.42 million tons in Southeast Asia & Oceania, 0.2 million tons in North America & Latin America, 0.04 million tons in India, South Asia, Middle East & Africa, and 0.03 million tons in Europe & CIS.

*6 Includes emissions of Panasonic Corporation of North America in FY2021
*7 We calculated the improvement rate of the 'CO2 emissions per basic unit' versus that of fiscal 2014, which was obtained by dividing CO2 emissions by the revenue of all group companies.
*8 The CO2 emission relevant to fuels was obtained by calculating with the factors stated in the "Guidelines for Calculation of Greenhouse Gas Emissions (version 4.7)" published by Japan's Ministry of Environment. The factors for purchased electricity by country per fiscal year defined in "CO2 emissions from fuel consumption" by International Energy Agency (IEA). The FY2014 factors in the Book 2017 were used for FY2014.
The FY2017 factors in the Book 2018 were used for FY2017. The FY2018 factors in the Book were used for from FY2018 to FY2021.

Promotion of Zero-CO2 Model Factories

In our regions across the world (Five regions: Japan; China & Northeast Asia; Southeast Asia, Pacific, India, South Asia, Middle East & Africa; North America & Latin America; and Europe & CIS), we set a target of realizing at least one zero-CO2 emission factory in each region. We have realized six zero-CO2 emission factories across four regions*9.

In fiscal 2021, Panasonic Energy (Wuxi) Co., Ltd. (PECW) became China's first zero-CO2 emission factory through manufacturing using the minimum energy, installing a photovoltaic power generation system, procuring International Energy Certified (I-REC) energy,, and using carbon credits that offset CO2 emissions from fossil fuels, etc.

In Japan, Panasonic Eco Technology Center (PETEC), the Panasonic Group’s home appliance recycling factory, realized a zero-CO2 emission factory in fiscal 2019. In the North America & Latin America region, we realized total four zero-CO2 emission factories: three in Panasonic Brazil (PANABRAS)’s sites in Extrema, San Jos dos Campos, and Manaus, and one in PCA. In the Europe & CIS region, Panasonic Energy Belgium N.V. (PECBE) realized a zero-CO2 emission model factory. In addition to roll-out of the zero-CO2 emission model factory in each region, we will promote to increase the number of zero-CO2 emission factories in Asia.

*9 The number does not include the number of EU dry battery factory whose transfers of stock were completed in June, 2021.

Promotion to Reduce the Amount of the Energy Used and CO2 Emissions in Factories

To ensure steady progress in reducing the amount of energy used and CO2 emissions in factories, it is important to visualize trend of the energy consumption of each facility in factory and the effects of the measures for specific emissions reduction. To date, we have worked on CO2 reduction by adopting more than 40,000 measurement equipment systems and Factory Energy Management System (FEMS) at all of our global manufacturing sites, promoting METAGEJI (Meter and Gauge)*10, which visualizes and analyzes energy consumption.

*10 METAGEJI is a coined word created by Panasonic which refers to visualizing energy consumption and implementing measurable reduction measures by adopting measurement instruments, such as meters and gauges.

Activities at Factories

Activities to promote to reduce the amount of energy used and CO2 emissions are being proactively continued in each factory. Several factories in such activities won the Prize of Director General Agency for Natural Resources and Energy and the like in the Energy Conservation Best Practices category under the 'Energy Conservation Grand Prize 2020'. The following projects received the awards.

The Prize of the Director General Agency for Natural Resources and Energy: Kato factory, Kitchen Appliances Business Division, Appliances Company, Panasonic Corporation.

"Comprehensive energy-saving measures in an integrated production factory led by factory's top management."

Kato factory, Appliances Company

This project took place in our rice cooker factory, where the production volume has decreased. The factory's top management reconstructed an energy-saving promotion structure to boost and establish energy-saving activities. As a result, a significant energy reduction was achieved. Using this project as model, texts for leaning energy-saving were prepared and rolled out to other sites, which has enhanced the development of human resources, etc. The prize was awarded in recognition of these various efforts.

Prize of the Chairman of Energy Conservation Center, Japan (ECCJ): Panasonic SPT Co., Ltd.

"Challenge to be an energy-saving model factory through installation of a highefficient production facility by devising new method."

The prize was a result of the overall recognition of our united factory-wide efforts in achieving energy conservation by installing a unique and highly efficient production facility and improving operational efficiency in an production factory of pipes for wiring.

Panasonic SPT Co., Ltd.

We are also progressing with minimum energy production by reducing production loss utilizing IoT and improving productivity in production with innovative manufacturing methods. The Manufacturing innovation Division, which is leading the evolution of our manufacturing, is now developing a system to predict abnormality of equipment/facility using AI analysis of chronological data. This is an attempt to reduce defects and quality losses occur in production processes in manufacturing sites, while improving operational efficiency in production. With the system, the amount of required energy for the equipment/facility is reduced as a whole, as it will be able to detect signs of defects in processing and abnormality of equipment/facility by monitoring its trends, as well as to conduct proper preventive maintenance by indicating options for maintenance of the equipment/facility based on the abnormal trends. This maintenance can then be implemented by any operator regardless of their skill level.

We plan to elaborate these as practical technologies and apply them to various our production processes, particularly to processing processes such as presses and molding, as well as to the processing equipment itself.

Activities for Increasing the Amount of Renewable Energy Use

To increase the amount of renewable energy in our business use, Panasonic is actively promoting installation of renewable energy facilities in our own sites and renewable energy procurement from external suppliers.

Installation of renewable energy facilities has been actively encouraged in our own sites across the world in a way to suite to the regional characteristics. Photovoltaic power generation systems, including Panasonic HIT® Photovoltaic Modules, are particularly recommended for installation wherever possible. Main installation examples of this system in fiscal 2021 are those installed at locations in Japan and in other Asian region.

In Japan, in November 2020 Connected Solutions Company installed a photovoltaic power generation system with a capacity of 5.3 kW at their Storage Business Development Center in Tsuyama Factory. This system actually generated 1.8 MWh in fiscal 2021. Also, in March 2021, Panasonic Smart Factory Solutions Co., Ltd., installed a system with a capacity of 11.7 kW in Kaga Factory.

In Asia, Panasonic Manufacturing Malaysia Berhad (PMMA) installed HIT® panels with a capacity of 1.58 MW (4872 pieces x panel of 325 W/piece), commencing operations in October 2020. The system produced approx. 1,090 MWh in fiscal 2021.

Thanks to the series of efforts described above and the commencement of full-scale operations of existing photovoltaic systems in different sites, our in-house renewable energy adoption in fiscal 2021 for the entire company*10 reached 35 GWh.*11 We are steadily making progress towards the 'target of generating 40 GWh renewable energy across our sites'.

We are continuously promoting to adopt photovoltaic power generation system in other global sites in addition to those mentioned above. We will continue our efforts to achieve further reductions in CO2 emissions.

Photovoltaic power generation system at Tsuyama Factory
Photovoltaic power generation system at Kaga Factory
Photovoltaic power generation system at PMMA

*11 The total amount of adoption is subject to the amount of photovoltaic energy, wind power, and biomass energy, including the amount of renewable energy adopted at our non-manufacturing sites, but excluding the amount of energy from heat pumps.

Procurement of renewable energy from external sources has been also promoted across the globe.

In Japan, we are an electricity user, and at the same time, an electricity retailer (registration number: A0136). Since 2005, we have been supplying power to our own factories and offices. Utilizing our knowhow and experience of electricity procurement and trading that we have accumulated to date, we procure electricity generated from biomass and wind, as well as environmental value, such as non-fossil fuel certificates and credits to offset fossil fuel-derived CO2 emissions.

These efforts have contributed to achieving zero-CO2 emissions in Panasonic Eco Technology Center and Panasonic Center Tokyo.

We also started selling our employees with electricity derived from practically 100% renewable energy in fiscal 2021.

Adoption of a Photovoltaic Power Generation System in Singapore

In Singapore, a photovoltaic power generation system with an output capacity of 1.0 megawatt-peak(MWp) was adopted in Panasonic Factory Solutions Asia-Pacific (PFSAP) in September 2016. A total of 3,476 Panasonic PV module HIT® panels were installed on the rooftop of three factory buildings. At its peak, the factory's photovoltaic (PV) system is expected to power, on average, close to 20% of its entire energy consumption. Panasonic HIT® panels can generate more energy even on limited rooftop spaces due to industry’s top-level efficiency. In addition, the panels are more suited to tropical climates, since they can also maintain high power generation performance even under high temperatures. The product is manufactured by Panasonic Energy Malaysia, located in Kulim Hi-tech Park in Kedah, Malaysia.

Installation of this system is based on a leasing agreement with Sunseap, the largest clean energy provider in Southeast Asia. This is the second, of such leasing agreement in Singapore, following the installation of a 2.4 MWp a photovoltaic power generation system at Panasonic Appliances Refrigeration Devices Singapore (PAPERDSG) in October 2015 also under a leasing agreement with Sunseap. The system in PFSAP is the second of such leasing arrangement between Panasonic and Sunseap.

Photovoltaic power generation system in PFSAP

Increasing the Efficiency of Biomass Power Generation Systems in Japan

The Gunma Factory of Panasonic Eco Solutions Interior Building Products Co., Ltd. uses wood scraps and wood particles generated from manufacturing processes as fuel for its biomass boiler. Ever since the system was installed, steam generated by the biomass boiler is used in production in the factory processes, and excess steam is used to generate power. Continuous improvements have been implemented since 2011, including reducing the size of the dust collector, using inverters for fans, and reviewing the wood particle transportation route. We will promote the increase in the efficiency of boilers to make more effective use of wood scrap fuel, as well as examine expanding to other factories in the future.

Biomass power generation system in Gunma

Adoption of Biomass Boilers in the UK

In Europe, Panasonic Manufacturing UK (PMUK) newly adopted a wood biomass boiler. Conventionally, used wood pallets were shipped as waste, and the wood chips manufactured were used as fuel for biomass power generation in the community. From fiscal 2017, a wood chip production machine, a storage warehouse, and a biomass boiler were installed in the factory to produce wood chips within the factory for use as biomass boiler fuel. This has enabled reduction in the number of trucks to ship wood pallets as well as reduction in boiler gas consumption, achieving an annual reduction of CO2 emissions by 65 tons. With biomass power generation, we will aim further CO2 reduction.

Biomass boiler in PMUK

Approach towards the CO2 Emissions Trading Scheme in China

In China, an Emissions Trading Scheme (ETS) for the power industry started in December 2017. In 2020, 2,225 power operators and related entities participated in the scheme. In response to the announcement of the carbon neutrality target set by the China government, it is expected that the related regulations will be more tightened and interim treaty for national carbon emissions will be released within 2021. As a company that owns multiple business sites in China, we will continue to respond to relevant regulations considering risks and opportunities, making the best of our CO2 emissions reduction skills in production, cultivated over the years.

Reducing the Emissions of GHGs Other than CO2 from Energy Use

GHGs other than CO2 from energy use emitted by Panasonic include nitrogen fluoride (NF3) and sulfur hexafluoride (SF6) used as cleaning gases in LED and semiconductor factories, hydrofluorocarbons (HFCs) used in air conditioner factories as refrigerants for products. To reduce these gases, we implement a variety of measures, such as installing removal devices, preventing leakage of refrigerants, collecting and destroying refrigerants, and replacing the gas with substitute non-GHG.

GHG emissions other than CO2 from energy use (CO2- equivalent; hereinafter the same) in fiscal 2021 amounted to 82 kt, which was 8 kt less than the previous fiscal year.

Emissions (CO2-equivalent) of GHGs Other than CO2 from Energy Use in Production Activities *12

Emission (CO2-equivalent) of GHGs other than CO2 from energy use in production activities:  0.11 million tons in fiscal 2017, 0.13 tons in fiscal 2018, 0.11 tons in fiscal 2019, 0.10 tons in fiscal 2020, and 0.09 tons in fiscal 2021.

*12 The emissions from Hussmann Parent Inc. and its consolidated subsidiaries are not included. Also, the emissions from Panasonic Corporation of North America are not included.

Breakdown of Total GHG Emissions (by gas and by scope)

Our GHG emissions, including emissions from energy sources and other sources, reached 2,189kt in fiscal 2021, the breakdown being 15% for Scope 1 emissions*13 and 85% for Scope 2 emissions*13 (See Scope 3 emissions).

*13 GHG emissions defined by the GHG Protocol, an international calculation standard for GHG emissions. Scope 1 emissions refer to all direct GHG emissions from facilities that are owned or controlled by the reporting entity (e.g. emissions from usage of town gas or heavy oil). Scope 2 emissions refer to GHG emissions from manufacturing of the energy that is consumed in facilities owned or controlled by the reporting entity (e.g. emissions from generation of electricity that the reporting entity purchased).

Breakdown of Total GHG Emissions (CO2-equivalent) in Production Activities (by category)

Total GHG emissions (CO2 equivalent) in production activities reached 2,189 kt in fiscal 2021. By category, CO2 Japan: 870 kt, CO2 outside Japan:1,238 kt, HFCs:73 kt, PFCs: 4 kt, SF6: 3 kt, and NF3: 0.6 kt.

Breakdown of Total GHG Emissions (CO2-equivalent) in Production Activities (by scope)

Total GHG emissions (CO2 equivalent) in production activities reached 2,189 kt in fiscal 2021. By scope, Scope 1 emissions: 327 kt and Scope 2 emissions: 1,862 kt.

*14 The GHG emissions from energy use by Panasonic Corporation of North America included.