Evolution of Recycling-Oriented Manufacturing

To achieve complete biodegradation of molding materials, we have been working to blend cellulose fibers into biodegradable resins. In fiscal 2022, we succeeded in developing a molding material based on plant-derived resins (polylactic acid, etc.) that completely decomposes in soil^{*13, *14}. In order to further reduce the risk of environmental pollution in the event of discharge into the natural environment, we also improved our compounding and molding technologies to enable biodegradation in the marine environment, where decomposition is difficult. In fiscal 2024, we succeeded in developing a cellulose-fiber molding material with 100% biomass^*15 by replacing the resin mixed with cellulose-fiber with a marine biodegradable resin that is completely degradable in the ocean and has the same strength as the polypropylene used for durability applications. As with the conventional kinari series, these biodegradable materials have also been successfully pelletized into white resin that can be colored freely, enabling a high level of flexibility with regard to design. The molding materials developed have received the Biodegradable Biomass Plastic and Marine Biodegradable Biomass Plastic marks certified by the Japan BioPlastics Association.

Further, we are working to increase the strength of the cellulose fiber molding materials to expand our kinari applications to be an alternative to fossil-based resin. We produced a material that demonstrates a strength equivalent to PBT-GF30% (polybutylene terephthalate with 30% glass fiber) at 80°C utilizing our newly developed plastics engineering compounding technology. We have also successfully developed cellulose-fiber molding materials with less density^*16.

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 57^th Ichimura Industrial Awards, hosted by the Ichimura Foundation for New Technology in April 2025^*20.

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.

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.

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 2025, it reached over 1,600 tons per year, and the recycled steel is being used in our Group products, including washing machines and ceiling materials for housing.

*21 Steel produced from scrap iron melted and refined in an electric arc furnace.

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^*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. We are also running a similar scheme for resin.

*22 See https://www2.panasonic.biz/jp/lighting/facilities/baselight/id/

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^*23.

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 1.1 tons of gold, 33 tons of silver, and 8,100 tons of copper^*24.

*23 See https://news.panasonic.com/jp/press/jn250117-4
*24 Based on the research of our Group and Mitsubishi Materials Corporation as of December 2024.

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), (2) waste that can be reduced by incineration or dehydration, and (3) landfill (waste with no option other than being sent to landfills). We reduce the emission of waste by boosting yield in our production process and increasing the recycling rate of our waste materials. Accordingly, we strive globally toward achieving our Zero Waste Emissions from Factories^*25 goal by reducing the amount of landfill to nearly zero. As a result of various activities, the factory waste recycling rate in fiscal 2025 was 99.2%, achieving the 99% target in our GIP 2024. In addition to the waste plastic recycling, we will introduce more recycling activities which aim to maintain and improve the factory waste recycling rate.

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.

Because waste recycling rates in our overseas factories lag behind those in Japan, we have worked to improve the average level of recycling activities by sharing information within and between regions outside Japan. Specifically, in addition to accelerating the information sharing on waste recycling issues between our local 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^*26 prepared by each region, following our long-standing approach toward CO₂ reduction activities.

*25 Definition by the Panasonic Group: Recycling rate of 99% or higher.
Recycling rate = Amount of resources recycled/(amount of resources recycled + amount of landfill).
*26 A chart-format summary of comparisons between "before and after" implementation of waste reduction and recycling measures.

*27 Combustion residue, fiber scraps, animal residue, rubber scraps, debris, ash particles, items treated for disposal, slag, infectious waste, polychlorinated biphenyls (PCBs), waste asbestos.