Environment : Green Logistics

Reducing CO2 Emissions in Transportation

In order to realize the 'Environmental Vision 2050' and contribute to the prevention of global warming, aiming to improve transportation efficiency while reducing costs, Panasonic has been working to reduce CO2 emissions also in our Distribution division, focusing on modal shift, adoption of low-emission vehicles, adoption of biodiesel fuels, reductions in transportation distances, and improvement of the loading rate in transportation/distribution.
As a result, in fiscal 2023, our total global CO2 emissions from logistics activities was 887kt worldwide; of which international transportation was 246kt, and domestic transportation in Japan was 123kt.

Focused Activities for Green Logistics

CO2 Emissions from Logistics

CO2 emission levels for shipping for fiscal 2024 show a global total of 741,000 tons, of which international transportation accounts for 29.0%, intra-regional shipping outside Japan for 55.5%, and domestic shipping in Japan for 15.5%.

Transportation Amount by Transportation Method (Japan)

Transportation volumes for fiscal 2024 total 0.77 billion tons-kilometers, of which air freight accounts for 0.03%, trucks for 92.59%, ships for 6.68% and rail for 0.70%.

Consolidated Transportation (transportation/load of different products at the same time) in Collaboration with Sales Division

Making best use of that products are shipped from the same warehouse, Panasonic has transported products in consolidated cargo (transport/load of different products at the same time) in collaborating with its sales division. Under the system finalizes orders two days before the transportation, which was started in 2017, the followings have been realized: 1) allocation of a tack for the transportation one day before the transportation instead of on the transportation day, and 2) consolidated transportation of different products such as water heaters and air conditioners. As a result, the number of ordering trucks for transportation has been reduced, which has contributed to CO2 reduction, and at the same time, actions for transportation risk have been realized. In fiscal 2024, the total number of actually ordered trucks for consolidated transportation was 3,786 trucks (81% year-on-year), whose loading rate at the same time was 43%, and CO2 reduction effect was equivalent to 117t per year; for the subject transportation, 5.5% of CO2 was reduced.

Modal shift (using JR containers)

As part of our efforts to eliminate wastefulness in our transportation, our Group uses JR containers as an alternative to trucks. We had signed a contract for round-trip transportation between Kyushu (Ogori center) and Shiga (contracted warehouse for Hikone Factory) by chartering a 10-ton vehicle. The outward journey is the transportation of materials (with a loading rate of around 80%), but the return journey is the returning of reusable shipping boxes (with a loading rate of around 25%). To eliminate the wastefulness of the return journey, we replaced this transportation with JR containers that can be used for one-way journeys. The outward journey remains the same, with materials being transported on a daily basis in the JR containers. However, for the return journey, the reusable boxes are collected together and only transported once every four days. This reduces the total logistics costs and has reduced the CO2 emissions by 19.2 tons per year (a 70% decrease from the previous year). We are making a contribution for the environment by switching from truck transportation to JR containers.

Landing Shipments at a Port Close to the Target Sales Area

Aiming for higher efficiency in transporting products, Panasonic is expanding its our efforts to land imported products at a port close to the target sales area in Japan. Conventionally, landing of products was centralized to a port near the West Japan Global Logistics Center (GLC) in Amagasaki City in Hyogo Prefecture, stored at the West Japan GLC, and then transported to respective locations as required. Landing the products at ports closer to the target sales areas can reduce the distance required for land transport within Japan, thereby contributing to reducing not only CO2 emissions but also inbound and outbound deliveries between sites as well as distribution costs. In fiscal 2023, we further improved the accuracy of our efforts to land shipments close to the target sales area. We started this with washing machines, which we had been working on for some time because of their high sales volumes, and also extended it to microwave ovens, hair care and beauty products, bidet seats, heating products, telephones, and fax machines. In particular, for dishwashers, we realized landing at Komaki Port for the first time and further reduced our domestic transportation. From now on, we will continue to expand the scope of products and also further refine the projection of sales demand in various regions, optimize the stock amounts held in those areas, and expand the landing products at ports near target sales areas.

Focus on harmony with the environment and expansion of modal shift

In terms of transportation of finished products, we aim to achieve a modal shift rate of approximately 45% or more. We are currently working to increase the ratio of rail freight transportation, focusing on transportation to front-line warehouses in Sapporo, Sendai, Tokyo, and Tosu, which will cover distances of 500 km or more. In fiscal 2023, we increased the number of 31 ft (10-ton type) railway containers we use in Tokyo, where we transport a large volume of goods. This enabled us to achieve a modal shift rate of 48.7% and to succeed in reducing our CO2 emissions in logistics by 159 tons from the previous year. We are also working to drastically reduce CO2 emissions by improving transportation efficiency.

Osaka Settsu warehouse
(product shipments)

Long distance transportation bound for Kanto region. The photo shows a railway containers whose load weight is 10ton.

Interview article in the Railway Freight Association's magazine,March 2024

Has obtained the Eco Rail Mark product certification since 2005; continuation of promotion of the activities.

Children's factory tour booklet

Since publishing this booklet in 2007, we have invited more than 200,000 elementary school students to visit our factory to promote our company's environmental initiatives.

Product catalog

We obtained product certification in 2012 and are now include the Eco Rail Mark in our catalog. We promote our achievements as added value to our customers.

*Panasonic products are on the list of the Eco Rail Mark certified products on the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) Homepage in 2023 (Japanese)
-Alkaline dry battery 'All types'
- 'Micro battery' manufactured by Panasonic
- 'LED light' manufactured by Panasonic
--Nickel hydride battery: 'eneloop'

Recycling of Stretching Film Used in Shipment

As an activity to reduce logistics waste, in fiscal 2015, we started recycling and reusing used stretch films with Nozoe Industry Inc. (Nozoe), and in fiscal 2023, we have continued the activity. It used to that all the stretch films used for shipment were discarded after use, however, the used films are now recycled and used as raw materials for polyethylene bags by Nozoe, while Panasonic has purchased the bags made of recycled materials. As Chinese government started banning imports of waste plastics in the end of 2017, Panasonic’s other sites who did not have business contact with Nozoe in Japan started similar activities with Nozoe. In addition, with the launch of full operation of Nozoe’s recycling factory in Saitama Prefecture led to expand our recycling scheme for used stretch film in Kanto region. As a result, the total 329t of stretch film was recycled. In FY2019, we have started to purchase recycled products from Nozoe in Panasonic, to further increase purchase volume of Nozoe’s recycled products. We continue to make effective use of used stretch films, while reducing logistics wastes.

Stretch Film Recycling Scheme with Nozoe

Stretch film purchased from Nozoe Industry Inc. for transportation is recycled into garbage bags and repurchased by Panasonic.

Use of Biodiesel Fuel (Japan)

Panasonic promotes transforming waste cooking oil collected from its business sites into biodiesel fuel and utilizing it for vehicles used in production, procurement, and marketing activities. Since fiscal 2023, we have received support from Aburatou Shoji K.K., which is a manufacturer and seller of biodiesel fuel, and have been working to further expand the use of biofuel by supplying 5% biodiesel fuel to the vehicles owned by Kinki Kankyo Hozen K.K., which collects and transports waste from our Kusatsu site. The amount of biofuel we used in fiscal 2023 was 1,272 liters.
*The amount of biofuel used includes the amount from Revo International Inc.