Environment: Global Initiatives for Used Product Recycling

In response to the Home Appliance Recycling Law of 2001, which covers four specified kinds of home appliances^*1, manufacturers were grouped into two groups, Group A and Group B, to collect and recycle the four specified kinds of used home appliances. We belong to Group A, and to work on recycling, we have established Ecology Net Co., Ltd. jointly with Toshiba Corporation to operate and manage a geographically dispersed recycling network through the effective use of existing recycling facilities nationwide. This management company supervises 326 designated collection sites (shared by Group A and Group B) and 30 recycling plants, based on consignment from Group A manufacturers (18 companies including the Panasonic Group).
Additionally, we invest in Panasonic Eco Technology Center Co., Ltd. (PETEC), Panasonic Eco Technology Kanto Co., Ltd. (PETECK), and Chubu Eco Technology Co., Ltd. (CETEC)^*2 and exchange information with product manufacturing divisions to develop easy-to-recycle designs, as well as conducts research and development to efficiently recover and supply more resources. In fiscal 2023, we recycled approx. 151.3 kt of the four specified used home appliances.

Although the statutory recycling rate*³ is being raised in phases, our recycling plants have been achieving recycling rates higher than the legal requirement by reviewing and improving recycling equipment and processes in view of the characteristics and materials of respective products as well as higher recycling efficiency.

In the summer of 2019, PETECK automated a part of its air conditioner processing line, using an articulated robot to turn over and transfer air conditioner outdoor units during the dismantling process. The recognition device identifies the position and size of the outdoor unit, and based on the identified information the articulated robot picks up and moves the unit to the standard dismantling process or to the process for dismantling special items such as window-type units. This has enabled safe and efficient air conditioner processing, relieving workers of dangerous work that required physical strength to turn outdoor units (weighing 33 kg in average) upside down.

As for PETEC, it promotes high grade single-plastic recycling using plastic recognition equipment.
See Enhanced Use of Recycled Resin for more details.

*1 Air conditioners, TVs, refrigerators/freezers, and washing machines/clothes dryers.
*2 PETEC is a company fully invested by the Panasonic Group, and PETECK and CETEC are joint ventures between Mitsubishi Materials Corporation and the Panasonic Group.
*3 Statutory recycling rate = Recycling rate specified by law (Valuable resource weight/Total weight of used home appliances).
The statutory recycling rates were raised in 2009 and 2015, and are currently at least: 80% for air conditioners, 55% for CRT TVs, 74% for LCD and plasma TVs, 70% for refrigerators and freezers, and 82% for washing machines and clothes dryers.

In 2023, we collected approx. 32.20 kt^*4 of used products covered by the WEEE Directive across Europe.

Circular Economy is the key driving factor for future waste legislations in Europe. Recycled content becomes increasingly important in Europe and will be more and more included into national laws and tender processes. If products don't meet certain Circular Economy criteria, the recycling fees will increase. If products are easy to recycle, contain recycled material, easy to repair, etc., the recycling fees will decrease.

Panasonic is considering how to prepare our business for such new recycled material requirements. For instance, this includes ensuring stable material supplies with guaranteed quality. In addition, we intensified the internal discussion about the impacts on product design, the enhanced reuse of products and components, or how to further improve and simplify the recyclability of products.

*4 Calculated by multiplying the weight of collected products per collection system by our market share in terms of weight per collection system.

The Panasonic Group continues its leadership role in establishing and operating a recycling system for waste batteries and consumer electronic products in North America. Following the startup of a state recycling law in Minnesota in July 2007, we established the Electronic Manufacturers Recycling Management Company, LLC (MRM), jointly with Toshiba Corporation and Sharp Corporation in September of the same year, and began recycling TVs, PCs, and other electronic equipment.

With collaborative ties to several recycling companies, MRM operates collection programs on behalf of numerous companies across 20 states and the District of Columbia. The cumulative total of collection by MRM has exceeded 1.6 billion lbs. (approximately 726 kt) since its inception in 2007. With the changes in our business strategies in the US, our remaining collection obligations are deminimis, MRM will continue operating its collection programs on behalf of the manufacturers it serves.

As for waste batteries, we established Call2Recycle in 1994 jointly with other battery manufacturers, and now provide recycling programs for rechargeable batteries throughout the US and Canada. Call2Recycle provides collection program and a robust retail collection network for over 600 companies, and collected more than 69 kt of primary and rechargeable batteries in the US and Canada since the organization's inception.

Recycling end-of-life products in Canada started in 2004 with the Alberta Government Extended Producer Responsibility (EPR) Regulation. Since then a total of ten provinces and two territories have legislated WEEE, each with their own unique parameters and requirements. In an effort to harmonize these programs, Panasonic Canada takes an active role in the governance of the Electronic Product Recycling Association, a not-for-profit management organization. The currently active provincial EPR programs have proven to be very effective in diverting e-waste as reflected in 2020 totals, where 109.41 kt in Canada were collected.

In China, it has been announced that the collection of the Waste Electrical and Electronic Products Processing Fund, which was based on the Regulations on the Administration of the Recovery and Disposal of Waste Electrical and Electronic Products implemented since 2012, will be temporarily suspended after January 1, 2024. In the future, subsidies for waste appliance processing to recovery and disposal companies will be paid from the national general public budget (mainly from taxes).

The government is paying attention to and considering responses to related policies such as the Promotion Plan for the Extended Producer Responsibility System announced in January 2017, the Law on the Prevention and Control of Environmental Pollution by Solid Wastes enforced in September 2020, and the demonstration of the Waste Appliance Recycling Target Responsibility System involving six major local home appliance companies since 2022.

The Law on Environmental Protection 2020 sets out requirements for a wide range of environmental issues, including the enhancement of e-waste management in Vietnam. The Government has also issued "Decree 08/2022 Detailing a Number of Articles of the Law on Environmental Protection" and "Circular 02/2022/QD-TTg Detailing the Implementation of a Number of Articles of the Law on Environmental Protection" under the Law on Environmental Protection 2020 which took effect since 10 January 2022 and requires producers/ importers to contribute financially for waste treatment of primary batteries from 1 January 2022. PSV has since made the necessary financial contribution for primary batteries placed in the market in 2022 to ensure proper waste treatment for these batteries. Moving forward, producers/ importers will also be required to contribute financially or self-manage e-waste recycling for rechargeable batteries from 1 January 2024 and electronic products from 1 January 2025.

PSV has since made the necessary financial contribution for primary batteries placed in the market to ensure proper waste treatment for these batteries. Additionally, we are working with Recycling Vendors to consider 2 options: financial contribution or self- recycling for rechargeable batteries and electronic products.

Panasonic Sales Vietnam will work closely with the Vietnamese government to take the necessary actions for compliance to the Law on Environmental Protection and to support the implementation of an effective waste treatment and e-waste recycling scheme.

The National Television and Computer Recycling Scheme (NTCRS) was established in Australia in 2011. Effective since 1 July 2021, the NTCRS has been superseded by the Recycling and Waste Reduction (Product Stewardship –Televisions and Computers) Rules 2021 made under the Recycling and Waste Reduction Act 2020, which will provide a new legislative framework to manage waste, recycling and product stewardship. Currently, the national framework covers televisions and computers, including printers, computer parts and peripherals.

Panasonic Australia (PAU) partnered with Ecycle Solutions, a co-regulatory arrangement approved by the Australian government to fulfill its obligation under the national scheme, since May 2021.
Between January 2023 and December 2023, 22 tons of e-waste were recycled.

Since April 2021, PAU has also joined the Battery Stewardship Council (BSC) as a member. As part of obligations of a member, PAU has also been contributing to recycling costs for batteries imported, including 91 tons of batteries imported between January to December 2022.

The Resource Sustainability Act introduced in Singapore in 2020 requires producers of regulated consumer products to join the licensed Producer Responsibility Scheme (PRS), which started in July 2021. For Compliance Year 3 (July 2023 - June 2024), a Collection Target of 60% (of weight supplied) was set for regulated Large Household Appliances (LHAs) and 20% for Portable Batteries. Panasonic Singapore has been working closely with the authorities and PRS operator to ensure the smooth implementation of the PRS. A total of 6,490 tons of regulated e-waste were collected by the PRS operator, of which LHAs comprised of a total of 90% by weight between January to December 2023.

Regulators in Malaysia, Thailand, the Philippines, and New Zealand are also gearing towards the global trend of mandating end-of-life product recycling. Discussions with regulators and industry bodies are in progress. We hope to contribute to the formulation of sustainable e-waste management policy in each country through engagement with local governments and industry associations and participation in pilot recycling projects.

In India, the new e-waste recycling law has been implemented by the Ministry of Environment, Forests and Climate Change (MoEFCC) from the 1st of October 2017, with Extended Producer Responsibility (EPR) targets based on end-of-life (EoL) defined in the e-waste (Management) rules 2016. To fulfill the compliance, we will collect and recycle waste home appliances through the "I Recycle" program already established by Panasonic India (PI).

We have also been taking part in the Consumer Electronics and Appliances Manufacturers Association (CEAMA), which promotes an analysis of current recycling activities in India as well as a long-term plan for waste problem solutions.

We are having various dialogues with the Indian government, jointly with CEAMA, about the EPR target and EoL definition for recycling management.

We are also actively engaged in different active associations including the Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industry (CII) to establish an even more efficient and robust recycling system and to submit industry comments to the Indian government for a better governance system.

In response to a growing trend in stricter environmental laws in Latin American countries, discussions on the establishment of recycling laws and actual enforcement are being conducted.

In Brazil, a sectoral agreement on home appliances was concluded in October 2019, and a Federal Decree specifying a system to collect and recycle household electrical and electronic equipment was enforced in January 2021. As one of the main members of a waste home appliance management body (ABREE), we collaborated in the establishment of a reverse logistics system (a system to collect used products), and promotes efficient collection and treatment of used products.

The target for 2023 was reached by collecting and treating 46,8 tons which represents 100% of tonnage goal in accordance with sectorial agreement. For 2024, the target is double the previous year, representing 12% of the tons put in the market. As of March 2024, 20,02k tons have been collected and treated, which represents 22,12% of achievement so far.

In Peru, under the recycling law that came into force in 2016, we joined a nonprofit waste management organization (ASPAGER) as a leading member, and started a used-product recovery program.

In Colombia, a framework law for home appliance recycling was enacted in 2018. We have been a member of a used-product collection program (Red Verde/Lumina) conducted by an industry group (ANDI) since 2014, prior to the enactment of operational rules. The target for 2024 is 806 tons and at January end it was already collect 260 tons, which represents 32% of achievement.

In Mexico, a collection program is implemented under the government-approved recycling management plan.

In Chile, the legislation is being considered, and preparations for setting up a collection program are underway through continuous discussions with the government.