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

To achieve Panasonic GREEN IMPACT, Panasonic Group has been working on toward making zero-CO2 factories*1 by promoting our efforts internally and externally to realize net zero CO2 emissions at own sites in all our operating companies by 2030.*2

For this medium term, we established the GREEN IMPACT PLAN 2024. As our efforts for OWN IMPACT Scope 1 and 2, we have increased the number of zero-CO2 factories to 37, aiming to reduce 260,000 tons of CO2 emissions. In the Zero-CO2 Factory Promotion Taskforce we started up in September 2021. The taskforce aims to create and provide group-wide measures to accelerate the creation of zero-CO2 factories. The Taskforce consists of the Energy Saving Working Group (WG) that promotes a range of energy-saving measures, the Renewable Energy Utilization WG that assess the usage expansion of renewable energy in each site, and the Renewable Energy Procurement WG that promotes the procurement of renewable energy. With the participation of related sectors, our manufacturing, procurement, and environment specialists work together to support the united efforts of all operating companies. Following to the last year, we held online study sessions two times for group members, and total of 720 members participated in the sessions. We also hold study session by region outside Japan.

We also participate in the Keidanren Carbon Neutrality Action Plan, a voluntary action plan to alleviate global warming promoted by the entire electric and electronics industry. The industry set a target of an "average 1% improvement in energy intensity in factories and large offices per year towards 2030" and we are now working steadily to save more energy in factories and offices.

*1 The Panasonic Group's zero-CO2 factories means realization of net zero CO2 emissions from factory production across the world. This will be attained by promoting our conventional energy saving activities (e.g. using LED lighting), advanced energy saving technologies, such as Factory Energy Management System (FEMS), productivity improvement, and innovative manufacturing. Other means include a combination of the following efforts: promoting renewable energy usage, such as by adopting photovoltaic power systems, energy storage modules, and hydrogen fuel cells; procuring 100% renewable energy-sourced electricity; and obtaining environmental values. The Panasonic Group publishes, both internally and externally, our accelerating efforts towards reaching our goal of net zero CO2 emissions in all the operating companies' sites by 2030.
*2 Panasonic's direction: To become a top runner in the fields of "environment" and "high usability in business."

Increasing the number of zero-CO2 factories

Since establishing the group's first zero-CO2 factory in fiscal 2019, the Panasonic Group achieved conversion of nine factories across five regions*3 to zero-CO2 factories by fiscal 2022. Since fiscal 2022, it has been in a phase to increase the number of zero-CO2 factories. In fiscal 2023, eight more factories in Japan achieved zero CO2 emissions; along with six in the China and Northeast Asia region; three in the Southeast Asia, Pacific, India, South Asia, Middle East, and Africa regions; four in the North America and Latin America regions; and one in Europe and CIS. This makes a total of 31 factories*4 achieving net zero CO2 emissions to date. We are steadily progressing towards the GIP2024 target of 37 zero-CO2 factories.

One achievement example in fiscal 2023 is Panasonic Electronic Devices (Jiangmen) Co., Ltd. (PEDJM) in China. The company installed a 3.94 MW photovoltaic system in fiscal 2022 followed by a range of energysaving facilities in fiscal 2023, including a highly efficient air conditioning system and inverter water circulation pumps. Also in Asia, Panasonic Energy India Co., Ltd. (PECIN) installed a 350 kW photovoltaic system, adding to continued their energy-saving activities such as an air leakage detection campaign, and optimal control of production facilities. At the both sites, net zero CO2 emissions have been substantially achieved by procuring I-REC certificates and utilizing credit to offset CO2 emissions from fossil fuels, and the like.

Photovoltaic power generation systems at PEDJM
Photovoltaic power generation systems at PECIN

Zero-CO2 Factories across the Globe

*3 Five regions are: Japan; China & Northeast Asia; Southeast Asia, Pan Pacific, India, South Asia, Middle East; North & Latin America; Europe & CIS.
*4 ★As of now, 31 factories have realized zero-CO2 factories.
Up to fiscal 2022:① Panasonic Eco Technology Center, ② Panasonic Energy (Wuxi) Co., Ltd., ③ SANYO Energy (Suzhou) Co., Ltd., ④ Panasonic Manufacturing (Beijing) Co., Ltd., ⑤ Panasonic Energy (Thailand) Co., Ltd., ⑥⑦⑧ Panasonic Brazil (three factories; San Jose, Manaus and Extrema), ⑨ Panasonic Centroamericana S.A. Fiscal 2023: ⑩ Panasonic Center Tokyo, ⑪ Panasonic Automotive Systems Co., Ltd. Matsumoto Region, ⑫ Panasonic Automotive Systems Co., Ltd. Tsuruga Region, ⑬ Panasonic Automotive Systems Co., Ltd. Shirakawa Region, ⑭ Panasonic Automotive Systems Co., Ltd. Yokohama Building, ⑮ Panasonic Energy Co., Ltd. SUMOTO Factory, ⑯ Panasonic Energy Higashiura Co., Ltd., ⑰ Panasonic Energy Nandan Co., Ltd., ⑱ Panasonic Electronic Devices (Jiangmen) Co., Ltd., ⑲ Panasonic Industrial Devices (Tianjin) Co., Ltd., ⑳ Panasonic Industrial Devices Materials (Guangzhou) Co., Ltd., ㉑ Panasonic Industrial Devices SUNX Suzhou Co., Ltd., ㉒ Panasonic Automotive Systems (Dalian) Co., Ltd., ㉓ Panasonic Automotive Systems (Suzhou) Co., Ltd., ㉔ Panasonic Automotive Systems Asia Pacific (Thailand) Co., Ltd., ㉕ Panasonic Automotive Systems Malaysia Sdn. Bhd., ㉖ Panasonic Energy India Co., Ltd., ㉗ Panasonic Automotive Systems Monterrey Mexico C.V., ㉘ Panasonic Automotive Systems de Mexico S.A. de C.V., ㉙ Panasonic Automotive Systems Reynosa Mexico C.V., ㉚ Panasonic Energy Mexico S.A. de C.V., ㉛Panasonic Automotive Systems Czech, s.r.o.
*5 Non-manufacturing sites

Activities for Increasing the Amount of Renewable Energy Use

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

The amount of renewable energy adopted at our sites*6 in fiscal 2023 marked 55 GWh.
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. Particularly, photovoltaic power generation systems are recommended for installation wherever possible. The major achievement in fiscal 2023 was installation of photovoltaic power generation systems in Japan.

We installed a photovoltaic power generation system at Youkaichi site of Laundry Systems and Vacuum Cleaner Business Division (LVBD), Panasonic Living Appliances and Solutions Company under a Power Purchase Agreement. The system installed this time, comprises 2,658 photovoltaic panels in total that generate 997 kW, and equipped with a 22.4 kW storage battery that enables efficient usage of power.

Photovoltaic power generation systems at PEDJM

Procurement of renewable energy from external sources has been also promoted across the globe. In Japan, at our own site, 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 sites, factories, and offices. Utilizing our knowhows and experience of electricity procurement and trading that we have accumulated to date, we procure 100% renewable electricity generated from wind, etc., as well as electricity with environmental value such as those with nonfossil fuel certificates and credits to offset CO2 emissions from fossil fuel. This effort contributed to converting factories in Japan, China, and Southeast Asia to zero-CO2 factories. Furthermore, the photovoltaic power station with approx. 18,000 kW capacity for use at our own sites that we determined to develop in fiscal 2022 started its operations in February 2023. We estimate that we will be able to reduce 19,000 tons of CO2 emissions per year with the system. As described above, we continue to contribute to expanding use of electricity from new renewable energy sources. We also started selling to Panasonic Group employees in Japan, electricity derived from practically 100% renewable energy in fiscal 2021.

In August 2019, Panasonic Group joined "RE100"*7, an international initiative that brings together companies committed to sourcing 100% renewable electricity for their global business operations. We aim to switch all the electricity used in our sites across the world to that sourced from 100% renewable energy by 2050. Progress in fiscal 2023 was 15.6%.

*6 The amount from photovoltaic energy, wind power, and so on are included. The amount from heat pumps is excluded.
*7 Press release on August 30, 2019.
Panasonic Joins RE100 Aiming for Business Operations with 100% Renewable Energy

Activities for reducing energy use and CO2 emissions

To ensure implementation of reduction of the amount of energy used and CO2 emissions, 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 are working 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)*8, which visualizes and analyzes energy consumption. An example of factory energysaving support service is on the following website.

Panasonic Corporation is conducting a demonstration experiment of the RE100 solution*9 using pure hydrogen fuel cells in Kusatsu Factory, Shiga. Since February 2022, Panasonic Energy (Wuxi) Co., Ltd. (PECW) in China, has been conducting a demonstration experiment of pure hydrogen fuel cells that supply electricity and heat. PECW achieved net zero CO2 emissions in fiscal 2022 through promoting energysaving, adopting photovoltaic panels, and procuring renewable energy. The pure hydrogen fuel cells to be used for a demonstration experiment this time are three types: firstly, starting with 30 kW small-scale power generation using six connected 5kw highly efficient pure hydrogen fuel (PHF) cells; secondly, 300 kW medium-scale power generation PHF cells for the mid- to long-term experiment; and thirdly, 1 MW largescale generation PHF cells for commercialization.

The pure hydrogen fuel cells are able to supply both electricity and heat, and create cooling air in summer by supplying hot water to a lithium bromide freezer. The demonstration experiment this time is to achieve zero CO2 emissions from energy saving and energy creation without procuring external renewable energy.

Panasonic Corporation adapted a flow implementation using a low-temperature solder to the mass production of our household products*10 as a world first.*11 Leadfree solders that were developed considering toxicity of lead are most commonly used now; however, there is an issue that their melting points becomes high. On the other hand, as for lowtemperature solders whose meting points are lower than 184°C, it is difficult to put such solders into practical use because of their low intensity and durability. With a collaboration with materials manufacturers, we have now optimized the chemical composition of the low-temperature solder.

As a result, we developed a Sn (tin) and Bi (bismuth) solder alloy (Sn-58Bi) that is suitable to the flow implementation, and a flux dedicated to use for Sn-58B1, then applied the implementation flow using the low-temperature solder for mass production of our household products as a world-first. As the melting point of Sn-58Bi is 90°C lower than those of conventional lead-free solders, the power consumption during the implementation process is reduced by approx. 30% (Scope 2). Furthermore, by using Sn-58Bi whose basic unit of CO2 emissions is low, the amount of CO2 emissions is drastically reduced (Scope 3). Therefore, replacing the current solders with Sn-58Bi contributes to CO2 emissions reduction.

The Panasonic Group will continue to accelerate necessary activities to achieve Panasonic GREEN IMPACT, e.g. proactively developing and adopting environmentally low-impact materials and methods.

Green house where a fuel cell system is controlled.
Pure hydrogen fuel cells installed at PECW
Flow implementation using low-temperature solders.

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(MW) 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

Activities at Factories

Under a company-wide energy-saving project started by Panasonic Automotive Systems (PAS) Co., Ltd., PAS has raised energy-saving awareness among its members and thoroughly implements measures to eliminate waste. Specifically, energy saving activities with visualized energy use by each site are posted on a PAS portal website where all employees can view. In addition, information on energy saving that are easy to put into practice in workplaces and the like is regularly posted on the website. At all of PAS factories, members are working together to reduce energy loss as a whole PAS through measures such as optimization of ventilation including management of positive pressure in clean rooms and at manufacturing process areas, review of operational conditions such as for furnaces and improvement of insulation, and review of cooling systems. Furthermore, as a result of adopting renewable energy, such as by installing photovoltaic power generation systems at each site, in January 2023, all global 14 sites*12 achieved net-zero CO2 emissions*13, including six in Japan and eight outside Japan

*12 All of the global 14 sites managed by Panasonic Automotive
*13 Press Release (January 27, 2023)

Collaborative measures sui China's carbon peak and carbon neutrality road map

The Chinese government announced its carbon neutrality long-term policy with the prospect of the country's carbon peak. There is a movement that the Chinese government tries to strengthen the current Emissions Trading Scheme (ETS) particularly through early enforcement of "Interim Regulations on the Management of Carbon Emissions Trading", improvement of accuracy of CO2 emissions data, and expansion of the scope of the subject and methods of trades. As the Panasonic Group has a number of business sites within China, it is necessary to clarify our country-specific environmental issues and their contribution values. To address any identified issues, we will proactively build collaborative measures optimized for China utilizing our accumulated expertise of CO2 emissions reduction in production processes. Although the Panasonic Group is not in the eight sectors covered by China's ETS, we will continue to monitor and understand the above-mentioned social trends as early as possible, and seek for various better methods for emission control such as increase of renewable energy use and conversion to zero CO2 factories from the viewpoint of establishing collaborative measures with local stakeholders

Fiscal 2023 Results

These efforts in fiscal 2023 resulted in 4.7 TWh*14 of the energy used in business activities, and the amount of CO2 emissions was 1.63 Mt. The fiscal 2023 investment to reduce the amount of energy used and CO2 emissions by the efforts was 5.5 billion yen.*15

*14 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 3.6 MJ/kWh. These two values are then totaled.
*15 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.

CO2 Emission in Business Activities and CO2 Emission (by region) Per Basic Unit

CO2 Emission in Business Activities (by operating company)

*16 Includes emissions of Panasonic Corporation of North America after FY2021
*17 We calculated the improvement rate of the 'CO2 emissions intensity' versus that of fiscal 2014', which was obtained by dividing CO2 emissions by the sales volume of all Group companies.
*18 The CO2 emission relevant to fuels was obtained by calculating with the factors stated in the "Guidelines for Calculation of Greenhouse Gas Emissions" 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 FY2018-2021 factors in the Book 2019 were used for FY2018-2021. The IEA Emissions factors 2021 were used for FY2022 and the IEA Emissions factors 2022 were used for FY2023.
*19 Includes non-manufacturing sites after FY2023
*20 In the case that net zero CO2 emissions is achieved in the middle of the FY, the CO2 emissions results before the FY will remain.

Breakdown of Total GHG Emissions (CO2-equivalent) in Business Activities (by category)*21

*21 The emissions of GHG other than CO2 from energy sources by Hussmann Parent Inc. and its consolidated subsidiaries, Panasonic Corporation of North America, and non-manufacturing sites are not included.