Collaboration Across the Supply Chain

In order to assess greenhouse gas (GHG) emissions across the entire supply chain (scope 3^*1), the Panasonic Group made original calculations based on the Greenhouse Gas Protocol, the international accounting standard for GHG emissions. Since fiscal 2012, the Panasonic Group has estimated its overall GHG emissions in the upstream range by multiplying the volume of materials purchased with the resource-specific GHG emissions per basic unit based on the Input-Output Table published by the Japanese government. The estimation results based on fiscal 2025 data is 20.33 Mt, roughly 15 times the GHG emissions of the Panasonic Group’s own production activities.

*1 Other indirect emissions, excluding Scope 1 (direct emissions from facilities owned and controlled by the Panasonic Group) and Scope 2 (emissions from production of energy consumed at facilities owned and controlled by the Panasonic Group).

To reduce CO₂ emissions with our suppliers, Panasonic Group is actively procuring low-carbon materials for resins, irons/steels, aluminum ingots, such as utilization of recycled resins and recycled irons/steels, and aluminum ingots refined using hydroelectricity. In fiscal 2025, we managed to reduce approximately 67,000 tons of CO₂ emissions.

The Panasonic Group has managed to stably procure and supply raw materials of aluminum products to be used for air conditioners, showcases, etc., utilizing a centralized purchasing system. From fiscal 2022, we have been procuring aluminum ingots refined using hydroelectricity through the centralized purchasing system and supplying it to aluminum processing manufacturers, which is an example for achieving CO2 emissions reduction, while maintaining a stable procurement price. This is the first initiative in Japan’s electrical manufacturing industry.

More specifically, we import aluminum produced at overseas aluminum refineries using hydroelectricity, to Japan. Then, we supply the imported aluminum to multiple aluminum rolling/ extrusion manufacturers in Japan to process them to aluminum plates, etc. Finally, our group procures the processed aluminum products from the manufacturers to utilize them in our products.

CO₂ emissions of the aluminum ingots refined using hydroelectricity are reduced to one third of the CO₂ emissions compared to those refined using conventional thermal power. Various aluminum products processed from the aluminum ingots become one of our various products in different forms such as air conditioners fin materials, aluminum frames for housing facilities, and lithium-ion battery casings. Since fiscal 2022, we have maintained a consistent supply of more than 8,000 tons of aluminum refined using hydroelectricity in Japan, thereby reduction of CO₂ emissions by 60,000 tons per year has been achieved. Procurement of such aluminum ingots under our metal supply scheme utilizing a group-wide centralized purchasing system also stabilizes the price of aluminum ingots in the market.
In addition, the Group also procures and supplies aluminum metal derived from hydroelectric power generation to Prime Planet Energy & Solutions Inc., a joint venture in which Panasonic Holdings has a partial stake. By also conducting procurement for this company, which manufactures lithium-ion batteries for EVs, the increased volume increases our purchasing power and it is possible to achieve more stable procurement. Separate to the materials for the Group's business, this scheme reduces the CO₂ emissions for Prime Plant Energy & Solutions by approximately 37,000 tons per year. We will continue to expand this scheme to work for procurement stability and price stability for low-carbon materials from the perspective of the entire Group, including joint ventures.