Evolution of Recycling-Oriented Manufacturing
We use many kinds of resources, including iron (28% of total resources used) and plastic (11% of total resources used), because of our wide range of products and businesses, from home appliances, components such as semiconductors and batteries, housing, and B2B solutions. In recycling-oriented manufacturing, we are further working on reducing the input of virgin resources, while increasing the amount of recycled resources. And in that context, we are working to establish a circular system according to resource type and features.
Furthermore, we are clarifying the use of recycled materials by identifying the volume of each type of resources used across the Panasonic Group. For example, we used 17,100 tons of recycled resin in our products in fiscal 2026. This was achieved by producing resin that has characteristics suitable for its usage purposes, securing stable supply, establishing adaptability in production sites to use the recycled resin, and developing recycling technologies. However, the above efforts did not meet the required level, and therefore we could not attain the GIP2024 target. We plan to accelerate our efforts to address these issues to steadily increase use of recycled resin. Moreover, we are promoting the development of plant-based resin with lower environmental impact and its application for the products.
As for the factory waste recycling rate*1, we had traditionally set different targets for Japan and other countries according to the relevant local infrastructures. However, given increased awareness of the importance of zero waste emission activities, we have set a fixed global target since fiscal 2011 and are taking steps to improve the standard level of waste recycling across the entire Group. In recent years, we have been maintaining our factory waste recycling rate at 99% or more. Since this has become part of our operational standard procedures, we have removed thisfigure from our fiscal 2026 targets.
*1 Factory waste recycling rate = Amount of resources recycled/(Amount of resources recycled + Amount of landfill)
Breakdown of Total Resources Used in Fiscal 2026 (by category)
Results of Recycled Resin Usage (Cumulative total from fiscal 2016)
Reduction in Resources Used
To minimize the use of resources for production, we continuously look to reducing the weight of our products. Through the Product Environmental Assessment, we have been promoting resource saving from the product planning and design stage, such as using less resources, making our products lighter and smaller, and using less components. We also implement various measures from the standpoint of resource recycling throughout the product life cycle, such as component reuse, longer durability, use of recycled resources, easier battery removal, and labels necessary for collection/recycling.
Quick-Up, a remodeling unit dedicated to the upgrading of system ceiling lighting equipment
Since the reflector plate is equipped with a power supply component, it is possible to upgrade a fluorescent lighting fixture with a straight tube LED or an iD series lighting fixture by utilizing the existing embedded type and system ceiling type body. Because this product utilizes the main body of an existing fluorescent lighting fixture, it enables upgrading with an LED lighting fixture in a short work period and can reduce the environmental load by producing less waste material.
Hair dryer
The nanocare EH-NA0K Hair Dryer, launched in September 2025, is an advanced nanocare model equipped with nanoe MOISTURE+, which moisturizes the hair all the way to the ends.*2
Its compact, lightweight design, inherited from the EH-NA0J launched in fiscal 2023, reduces product volume by approximately 27% compared with the EH-NA0G launched in fiscal 2022. It also delivers the highest airflow of any nanocare model sold in Japan, improving drying performance and helping reduce energy consumption during use. The model is designed to conserve resources and reduce environmental impact, contributing to the realization of sustainable lifestyles and society. nanoe MOISTURE+ generates approximately 18 times as much moisture as conventional nanoe and increases the moisture content of hair by approximately 1.9 times, moisturizing both the hair and scalp. All four colors of the EH-NA0K also use a plant-derived "Biomass Paint." In addition, recycled plastic is used for certain parts of the main unit, helping reduce the consumption of petroleum resources.*3
LAMDASH PALM IN
The "LAMDASH PALM IN" ES-PV6A we launched on September 1, 2023 condenses five-blade technology into a palm-sized shaver that has approximately 70% the volume of the existing LAMDASH PRO five-blade ES-LV9W.*4 It offers a new experience of shaving like stroking the skin while feeling the condition of the skin through the fingertips. We also use the innovative composite material "NAGORI®" that was created from mineral components extracted from seawater. This reduces the amount of plastic used by approximately 40% and also gives the product a texture that feels like pottery. In addition to use in the home, the USB-C charging and the carrying case supplied mean that it can also be used in various situations such as in the office and during business trips and travel. The ES-PV6A will be discontinued in September 2026, and subsequently replaced by the ES-P550U, which offers equivalent functions and specifications.
Examples of recyclable product design
In order to make recycling more efficient, we are working on designs that make it easy to disassemble and sort according to industry guidelines. For example, in order to make products easier to disassemble, we do away with fixing methods that are difficult to disassemble, such as welding and caulking, and reduce the number of screws used. In addition, we are also displaying the material of resin parts to make it easier to sort them.
Use of Sustainable Materials
Under the concept of "product-to-product", we are enhancing our initiatives of utilizing resources recovered from used products. As for resin, we promote the reuse of resin recovered from our used home appliances (refrigerators, air conditioners, washing machines, and TVs) for our products. We also started recycling scrap iron recovered from used home appliances in our products in 2013.
In addition, as an example of "product-to-product" use, we are aiming to realize "battery-to-battery" recycling. With the cooperation of AEON RETAIL Co., Ltd., we are installing boxes for the collection of used dry-cell batteries in stores and collecting the used dry-cell batteries that have been sold at AEON RETAIL stores. We are recycling the collected dry-cell batteries into new materials such as steel materials through the Okayama Plant of Tokyo Steel Co., Ltd., and are also utilizing the batteries in research and development aimed at recycling them into dry cell components. Through this initiative, we will research and establish an efficient collection and recycling process for used dry-cell batteries, and also aim to realize battery-to-battery recycling.*5
Battery-to-battery recycling is also being implemented for lithium-ion batteries for automobiles. For automotive lithium-ion batteries, Our Group has had a partnership with Redwood Materials, Inc., a U.S. battery recycling company, since 2019, and in 2022 concluded a sales agreement for cathode materials and copper foil obtained through the recycling of automotive lithium-ion batteries*6. Research and development is being carried out to have Redwood Materials recycle the waste batteries and process waste from our Group into cathode materials for use in batteries. At Panasonic Energy's sites in China, recycled materials have been incorporated into cathode materials since 2024, and their application is gradually being expanded to additional products. At its sites in Japan, Panasonic Energy is also working with Sumitomo Metal Mining Co., Ltd. to recycle raw materials for lithium-ion battery cathode materials.*7 Under this initiative, nickel, a rare metal, is recovered from battery production scrap generated at Panasonic Energy Co., Ltd. (PEC) factories in Japan using Sumitomo Metal Mining's smelting and refining facilities. The recovered nickel is then reused as cathode material in PEC lithium-ion batteries. Through this collaboration, scrap generated during production at PEC's Suminoe Factory (Osaka City, Osaka) is processed and recovered as nickel sulfate at Sumitomo Metal Mining's Toyo Smelter & Refinery (Saijo City, Ehime), and Niihama Nickel Refinery (Niihama City, Ehime). The cathode material manufactured using this nickel sulfate can then be used in PEC lithium-ion batteries.
By producing batteries made from recycled materials, we can reduce CO2 emissions generated during mining and promote recycling-oriented manufacturing.
Furthermore, we are also conducting development for greater efficiency and automation in the extraction of resources from used products. For the dismantling process for air conditioners, we have collaborated with Panasonic Eco Technology Kanto Co., Ltd. and Mitsubishi Materials Corporation and developed an automatic dismantling system for the covers on air conditioner outdoor units. This system includes automatic dismantling equipment with robots that dismantle the outdoor units of air conditioners, and a dismantling database that stores the information required for the dismantling*8. Furthermore, in collaboration with Panasonic Production Engineering Co., Ltd., and Hirakin Co., Ltd., we are aiming to further increase the efficiency of work to dismantle used home appliances and have developed an automatic dismantling system for used home appliances which focusses on air conditioner outdoor units. In the recycling of home appliances, this system is the first in the industry to enable integrated processing from the appliance input to the dismantling of each part*9. In addition to these initiatives, Panasonic is introducing "Design for CE" (CE: Circular Economy), which enables the ease of product disassembly and assembly to be assessed quickly during the design stage. This helps products remain usable for longer by improving their repairability and maintainability, in addition to their recyclability.*10 Panasonic is also promoting a "Disassembly CPS" initiative—a cyber-physical system that automatically generates disassembly procedures from product data and autonomously determines and executes robot movements.*11
Enhanced Use of Recycled Resin
To efficiently utilize resin recovered from used home appliances in addition to metals such as iron, copper, and aluminum, our recycling factories— Panasonic Eco Technology Center Co., Ltd. (PETEC), and Panasonic Resource Recycling Factory Kato (PRRFK) — work together for resin recycling.
Process of Resin Recycling
Using technologies such as our original near-infrared identification technology, PETEC is capable of sorting shredder residue of waste home appliances into three major types of resins with different purposes and properties—polypropylene (PP), acrylonitrile butadiene styrene (ABS), and polystyrene (PS)—at a material purity of over 95%.
The recycled single resins sorted and recovered at PETEC are then transferred to the adjacent Panasonic Resource Recycling Factory Kato to be further purified and processed to recover their chemical properties. Panasonic Resource Recycling Factory Kato (PRRFK) is a manufacturing and development site that promotes the use of recycled resin in home appliance manufacturing and sales. The factory plays an important role in enhancing recycled resin utilization by developing recycling technologies, such as a more efficient method that improves the performance of recycled resin. Generally, the strength and lifespan of resin deteriorate over time. This is why its chemical properties have to be recovered to the level of new resin to make them usable as materials and components in new products. Due to the differences in the physical properties required by different products, we have been examining the properties of recycled polypropylene, polystyrene and acrylonitrile butadiene styrene, and have developed technologies to create new formulas for resin components, adding our own proprietary antioxidant and mixing recycled resin with new resin. To increase usage of recycled plastic across Panasonic Group, we plan to find recycled plastic suppliers based on the recycled plastic development and quality assessment techniques cultivated in our Panasonic Resource Recycling Factory Kato.
Near-infrared sorting machine that can sort three types of resin simultaneously
Development and Use of New Sustainable Materials
Cellulose fiber, contained in plant-based wastes such as used paper and wood chips, has become a focus of attention as a resource with low environmental impact. In fiscal 2016, we commenced research and development to reduce the use of fossil-based resin by utilizing cellulose fiber. In fiscal 2019, we successfully produced an easy-to-process molding material with less resin by mixing cellulose fiber at a high concentration level into the resin. This material was launched under the brand name of "kinari," followed by kinari55-PP*12 with 55% cellulose fiber content in 2022, and kinari70-PP*13 with 70% content (biomass rate) in 2024. Further, we started sample sales of kinari90 in the same year.*14 kinari90 boasts a 90% biomass rate by combining biomass polyethylene (at 90% or more biomass rate) produced from the sugarcane pulp (bagasse) left after the juice is extracted, while maintaining a physical strength equivalent to that of conventional resin.
kinari has now been adopted in the S-story pendant lamp shade produced by Panasonic Electric Works Co., Ltd. With the plant fiber content representing approximately 50% of the weight of the shade, we successfully reduced the usage of fossil-based resin by half.*15 Despite being mass produced, each lamp shade offers varying impressions by incorporating different marble patterns created when molding the shade as a part of the lamp design. When the lamp is turned on, the light gently diffuses through the shade creating a relaxing atmosphere in the room. Further, the changing colors of the shade and wooden fragrance gives the impression that the product matures over time.
We are also working to expand the application of kinari by reinforcing its material strength. We have successfully produced a low-density cellulose fiber molding material that demonstrates a strength equivalent to PBT-GF30% (polybutylene terephthalate with 30% glass fiber) at 80°C utilizing our newly developed engineering plastics compounding technology.*16 Aiming at complete biodegradation of the above materials, we also developed a soil-biodegradable version in fiscal 2023 by mixing in plant-derived resins, such as polylactic acid.*17
Relating to "kinari" production, we are reinforcing relationships with local communities to utilize their regional resources under collaboration. Among these collaborative projects, we concluded an agreement with Fukuchiyama City, Kyoto Prefecture, to use their timber from forest thinning. We also jointly commercialized our eco-friendly tableware using this timber. On September 4, 2023, all 23 municipal primary schools and junior high schools in Fukuchiyama City started using some 6,700 sets of this tableware for their school lunches. At the same time, all these schools started an environmental education program in which we cooperated by providing the program contents. Another collaboration with a local company took place in Okinawa Prefecture. Together with Food Reborn Co., Ltd., in 2024 we developed a kinari tumbler utilizing pulp from Okinawan pineapple leaves*18 ,*19.
Such efforts relating to our kinari resin have earned a high social reputation and resulted in a number of awards, including the MEXT Minister's Prize under the FY2021 50th Japan Industrial Grand Prize held by Nikkan Kogyo Shimbun, Ltd., and the Contribution Prize under the 57th Ichimura Industrial Awards, hosted by the Ichimura Foundation for New Technology in April 2025*20.
We intend to develop more new products with this technology, focusing also on developing new recyclable resources.
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*12 https://news.panasonic.com/jp/press/jn190708-1 (In Japanese)
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*13 https://news.panasonic.com/jp/press/jn210204-1 (In Japanese)
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*14 https://news.panasonic.com/jp/press/jn220318-2 (In Japanese)
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*15 https://news.panasonic.com/jp/press/jn221206-1 (In Japanese)
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*16 https://news.panasonic.com/jp/press/jn250108-8 (In Japanese)
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*17 https://news.panasonic.com/jp/press/jn250515-2 (In Japanese)
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*18 https://news.panasonic.com/jp/press/jn230825-2 (In Japanese)
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*19 https://www.city.fukuchiyama.lg.jp/site/kyouiku/59063.html (In Japanese)
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*20 https://news.panasonic.com/jp/press/jn250421-2 (In Japanese)
Impact of Iron Resources on Ecosystems
Our Group uses a wide variety of mineral resources in a wide range of fields, from home appliances, electronic components, and batteries to housing and B2B solutions. These mineral resources have various impacts on the ecosystem throughout the value chain, including mining, processing, use, and disposal, so it is important to appropriately understand and manage risks.
We are analyzing environmental and operational risks by focusing particularly on iron resources, which are used in large amounts. Risk analysis was conducted at each of the value chain stages: mining and processing, manufacturing, use and disposal, and recycling and reuse.
For the mining stage, there are concerns about habitat fragmentation and biodiversity loss due to deforestation and encroachment into protected areas. There is also a risk that the large amount of water used during mining could cause heavy metal and chemical runoff, polluting local water resources. Furthermore, greenhouse gas emissions associated with mining and processing may exacerbate climate change.
At the manufacturing stage, greenhouse gas emissions are a challenge because the energy used to produce iron depends mainly on fossil fuels. However, due to differences in raw materials, electric furnace steelmaking (recycled steel) emits less greenhouse gases than blast furnace steelmaking (virgin steel). There is also a risk of soil and water pollution from slag generated during the manufacturing process, so proper management is required.
At the use and disposal stage, waste management plays an important role in reducing the environmental impact of iron resources.
For the recycling and reuse stage, promoting the recycling of iron products can significantly reduce the environmental risks from waste. Therefore, establishing recycling-oriented schemes, including closed-loop recycling, is essential for sustainable resource management.
Building a Recycling Scheme for Scrap Iron
Jointly with Tokyo Steel Co., Ltd., we started a recycling scheme for scrap iron in July 2013. In this scheme, we recover the scrap iron from used home appliances and Tokyo Steel makes it into steel sheets. We then purchase the sheets back as a material for our products. Supplying scrap iron for recycling and repurchasing the recycled iron is the first scheme of its kind in the Japanese electrical manufacturing industry.
Self-recycling Scheme for Electric Steel Plates
Specifically, scrap iron from home appliances collected and treated at PETEC and Panasonic Eco Technology Kanto Co., Ltd. is supplied to Tokyo Steel, where the scrap iron is processed into electrical steel plates.*21 We procure the recycled steel plates and utilize them in products.
Discussions with Tokyo Steel commenced, and we have worked together since then to improve the quality of recycled iron to a level sufficient for production use, as well as developing the technology to improve the applicability of the recycled iron. From this we identified the optimum application of the electrical steel plates, and refined its specific features (e.g. shape, strength, and weldability) to meet application-specific requirements. The use of thin electrical steel plates in our products was first made possible. Through this close collaboration, we materialized this recycling scheme, a scheme where a home appliance recycling company that we own supplies scrap iron to be used to make electrical steel plates.
The amount of scrap iron we initially supplied to Tokyo Steel was about 50 t per month. In fiscal 2026, it reached over 1,300 tons per year, and the recycled steel is being used in our Group products, including washing machines and ceiling materials for housing.
Beyond used products, we also recycle waste generated from factories. In Panasonic Electric Works Co., Ltd. Niigata Plant, we supply iron scrap generated during production to an electric arc furnace manufacture and utilize the iron recycled by the manufacturer in some of the products made in the plant*22. This trial of making iron from scrap supplied by our plant and then utilizing the recycled iron in the same plant is the first of its kind within the Panasonic Group.
Concretely, we utilize hot-dip galvanized steel sheets in our light fitting components. We started using it for general processing in fiscal 2024 and for spinning/deep drawing processing in fiscal 2027. We also started using painted hot-dip galvanized steel sheets in the main body of lighting equipment in fiscal 2027. The introduction of such materials in mass production is the first of its kind in the lighting industry. We are also running a similar scheme for resin.
*21 Steel produced from scrap iron melted and refined in an electric arc furnace.
Self-recycling Scheme Process
The increase in electrical steel plate usage leads to an increase in the usage of scrap iron, which is one of the most important resources in Japan. In addition, producing steel plates from scrap iron emits much less CO2 compared with producing steel plates from scratch. This scheme also stabilizes the procurement price, because the price of scrap iron supplied from PETEC and the price of electric steel plates procured from Tokyo Steel are determined by the scrap iron fluctuation rate agreed between the two companies. Our Group has collaborated with Panasonic Homes, which is a joint venture in which Panasonic Holdings has a partial stake, and has also implemented the same scheme for the electric furnace steel sheets supplied to Homes. In addition to increasing the purchasing power of the Group and its affiliated companies as a whole, this also makes it possible to further reduce CO2 emissions. We will further expand this recycling scheme for more efficient resource utilization, CO2 emissions reduction, and stabilization of procurement prices.
Beyond used products, we also recycle waste generated from factories. In Niigata Plant, we supply iron scrap generated during production to an electric arc furnace manufacture and utilize the iron recycled by the manufacturer in some of the products made in the plant*23. This trial of making iron from scrap supplied by our plant and then utilizing the recycled iron in the same plant is the first of its kind within the Panasonic Group. We are also running a similar scheme for resin.
Gold, Silver, and Copper Recycling from Waste PCBs
The Panasonic Group is running the Product-Material-Product (PMP) Loop scheme together with Mitsubishi Materials Corporation. In this scheme, gold, silver, and copper are extracted from waste printed circuit boards (PCBs) formerly installed in our home appliances, and reused within and outside the Panasonic Group*24.
The scheme works as follows: One of our group companies, Panasonic ET Solutions Co., Ltd. (PETS), recovers waste PCBs from home appliance recycling plants and repair sites across Japan, and commissions initial waste processing to our recycling partner companies.
The recycling companies remove the iron and aluminum during shredding and smelting to improve the quality of waste PCB materials. The processed PCBs are then passed to Mitsubishi Materials. Mitsubishi Materials extracts gold, silver, and copper from the waste PCBs through smelting and returns the materials to PETS. The recovered gold, silver, and copper are made into gold plating solution, copper wire, etc. to be utilized in our products again. Total amounts of recovered metals from the waste PCBs through the PMP Loop scheme to date have reached 1.2 tons of gold, 35 tons of silver, and 8,700 tons of copper*25.
*25 Based on the research of our Group and Mitsubishi Materials Corporation as of December 2025.
Building a Recycling Scheme for Copper from Waste Home Appliances
Together with Furukawa Electric Co., Ltd., Panasonic Operational Excellence Co., Ltd. (PEX) has newly established a copper recycling scheme. This scheme replaces some of the copper bullion used by Furukawa Electric to produce copper alloy materials for Panasonic Group products with recycled copper derived from our waste home appliances. The operation commenced in June 2025*26.
Panasonic ET Solutions Co., Ltd. extracts high quality copper with less impurities through its improved refining process from materials selected after disassembly in our recycling factory. The recycled copper is then provided to Furukawa Electric directly through the PEX Procurement Sector, without being returned to a copper refiner. Furukawa Electric has created conditions that enable production of copper alloy for wiring with stable properties even when partially using recycled copper. This scheme resulted in an 8% reduction in CO2 emissions in Furukawa Electric's copper alloy production.
We plan to apply this know-how in recycled copper use to other Panasonic Group products to further reduce our environmental impact.
Copper Recycling from home appliances
Panasonic Corporation and JX Advanced Metals Corporation have co-created a circular scheme to recycle copper scrap recovered from end-of-life home appliances and reuse it in Panasonic Group products. The scheme commenced operation in September 2025.*27
【Outline of the Scheme】
Panasonic ET Solutions Co., Ltd. collects copper scrap extracted from end-of-life home appliances at home appliance recycling plants throughout Japan and supplies it to JX Advanced Metals Corporation, which recycles it into electrolytic copper. Using a mass balance method that accounts for processing losses, JX Advanced Metals produces 100% recycled electrolytic copper that can be regarded as being derived from scrap supplied by the Panasonic Group. This low-CFP electrolytic copper is purchased through the procurement division of Panasonic Operational Excellence Co., Ltd., processed, and then reused in Panasonic Group manufacturing. According to estimates by JX Advanced Metals, this reduces CO2 emissions by approximately two to three metric tons per metric ton of electrolytic copper.
Promoting Zero Waste Emissions
From the viewpoint of effective usage of resources, we believe that generation of waste and revenue-generating waste at factories must be minimized, even if such waste could be sold as valuable commodities. Based on this belief, we identify the amount of generated waste (including both revenue-generating waste and factory generated waste) and classify it into: (1) recyclable waste (including those that can be sold and those which can be transferred free of charge or by paying a fee) and (2) landfill (waste with no option other than being sent to landfills). In our production processes, we have been working to reduce the waste shipped to landfill to nearly zero, particularly through increasing the use of resources recycled. As a result, we have been maintaining a high factory waste recycling rate of more than 99% already for many years and, therefore, have removed this figure from our fiscal 2026 targets.
As an initiative to reduce the amount of final disposal of waste and valuables, we will reduce the amount of materials that are particularly difficult to recycle, such as thermosetting resins. We are also strictly adhering to waste sorting practices in production processes to further expand the reuse of resources. In addition to accelerating the information sharing on waste recycling issues between our overseas factories and group companies in Japan, we also promote the sharing of excellent examples and know-how among our factories across regions by utilizing BA Charts*28 prepared by each region, following our long-standing approach toward CO2 reduction activities.
*28 A chart-format summary of comparisons between "before and after" implementation of waste reduction and recycling measures.
Amount and Recycling Rate of Total Wastes
Including Revenue-generating Waste
Breakdown of Total Wastes Including Revenue-generating Waste (by region)
Breakdown of Landfill (by region)
Breakdown of Total Wastes Including Revenue-generating Waste for Fiscal 2026 (by category)
(kt)
Items | Total wastes | Recycled | Landfill |
|---|---|---|---|
Metal scrap | 121 | 120 | 0.06 |
Paper scrap | 28 | 27 | 0.2 |
Plastics | 32 | 30 | 0.6 |
Acids | 21 | 17 | 0.1 |
Sludge | 9 | 8 | 0.6 |
Wood | 25 | 25 | 0.02 |
Glass/ceramics | 3 | 3 | 0.03 |
Oil | 10 | 9 | 0.06 |
Alkalis | 18 | 16 | 0.03 |
Other*29 | 7 | 6 | 0.3 |
Total | 273 | 261 | 2.0 |
*29 Combustion residue, fiber scraps, animal residue, rubber scraps, debris, ash particles, items treated for disposal, slag, infectious waste, polychlorinated biphenyls (PCBs), waste asbestos.
