Environment : Collaboration Across the Supply Chain

Collaboration with Suppliers and Transportation Partners

As the Panasonic Group backed by a number of suppliers, we must consider the environmental impacts of our entire supply chain, and not just of our own operations. Through our coordination efforts with suppliers and transportation partners, who form an integral part of our business operations, the Panasonic Group strives to minimize our environmental impact across the entire supply chain, focusing on the reduction of CO2 emissions, resource recycling, chemical substance management, and biodiversity conservation.

Activities for Green Procurement

Activities for Green Procurement Since the publication of the "Green Procurement Standards" in 1999, the Panasonic Group has been promoting the manufacture of eco-conscious products in partnership with our suppliers. In the "Green Procurement Standards", we set up groups of suppliers who support the Panasonic Group's Environmental Policy in supplying products and goods in order to materialize the targets in supplier collaboration with our Group. In addition to cooperation in 'reducing environmental loads in supplier's business operation areas' and 'sharing achievements through collaboration with the Panasonic Group', we are asking our suppliers to 'seek the cooperation of upstream business partners' to expand the scope of activities of reducing environmental impact throughout the entire supply chain. In September 2019, we revised "the Green Procurement Standards" to deepen and widen their influence throughout the entire supply chain–beyond our Group and across society–following the Panasonic Group's environmental action plan.

We also published "Panasonic GREEN IMPACT" in 2021, regarding information about our contribution to CO2 emissions reduction from Panasonic Group's business activities and from society in general, indicating our determination by setting our own targets to achieve both 'a better life' and 'a sustainable global environment' at the same time. We plan to expand this effort across the entire supply chain.

In response to more stringent and expanded regulations such as EU RoHS Directive, the Panasonic Group has been engaging in continual environmental quality assurance audits of our suppliers since 2005 to improve the management level throughout the entire supply chain. In fiscal 2023, we conducted the audits at some 800 suppliers and have supported their efforts to upgrade their management levels.

Estimation of Environmental Impacts in Business Activities by Suppliers

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 2022 data is 21.55 Mt, roughly 12 times the GHG emissions of our 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).

Sharing Achievements through Collaboration with the Panasonic Group

Since fiscal 2010, the Panasonic Group has been implementing the ECO-VC Activity*2 Activity with our suppliers. This program is a collaboration between the Panasonic Group and our suppliers, aimed to both reduce environmental impact as well as reinforce product capability and achieve further rationalization for the Panasonic Group products and suppliers. In fiscal 2010, the target for reducing environmental impact was limited to energy saving (CO2 emission reduction). However, this was extended in fiscal 2011 to Recycling-oriented Manufacturing aiming at saving resources and using recycled materials. The geographical range of our activities has also extended. Initially centered in Japan, actions accelerated to China and other parts of Asia in fiscal 2013, and later extended to a global scale in fiscal 2015.

We have stored case examples of ECO-VC Activity in a database for broader and effective use throughout the Panasonic Group. At the same time, as for outstanding activities, we provide awards in occasions such as 'ECO-VC Activity award and information exchange meeting'. Furthermore, the Panasonic Group formulated "an Environment Vision 2050" in 2017 to achieve 'a better life' and 'a sustainable global environment' compatibly, aiming for societies where residents use clean energy and live a more comfortable lifestyle. Under the vision, through the development of products, technologies, and solutions relevant to energy creation, storage, saving, and management, the Panasonic Group has worked towards creation and more efficient utilization of energy which exceeds the amount of energy used.

We added renewable energy to conventional evaluation items such as energy conservation (CO2 emission reduction), cost reduction, resources conservation and use of recycled materials in fiscal 2019. Starting in fiscal 2024, we plan to work together with our suppliers to promote decarbonization and reduce CO2 emissions in conjunction with the Panasonic Green Impact.

*2 ECO-VC Activity: Value Creation Activities

Environmental Achievements Made through Proposals

Items FY2019 FY2020 FY2021 FY2022 FY2023
Number of proposals 820 772 430 332 264
CO2 reductions derived from proposals 30.50 kt 280 kt 110 kt 50 kt 80 kt
Use of recycled resources derived from proposals 80 t 100 t 5 t 1500 t 600 t
Reduction in resources used derived from proposals 3.03 kt 19.9 kt 323 kt 255 kt 40 kt

Collaboration with Environmental NGOs

For exhaustive implementation of CSR throughout our global supply chain, we are implementing activities in collaboration with overseas environmental NGOs.

In China, where the Panasonic Group has a large number of suppliers and where commitments by suppliers to environmental issues have been highly demanded by society, we have diligently ensured compliance with China's laws and regulations and conduct responsible procurement throughout the supply chain, working together with environmental NGOs.

In September 2016, the Panasonic Group held seminars for about 400 suppliers on our CSR Procurement Policy and Chinese environmental regulations in Guangzhou, Dalian, and Shanghai. In the seminars, we asked suppliers to take necessary actions in response to China's latest environmental regulations, in addition to ensure CSR in supply chain. In such way, we have been working on to understand possible risks and to reduce environmental impact in our supply chain.

Since 2018, we have conducted on-site environmental audits which focus on response capabilities and CSR audits at the same time in some 20 suppliers per year since fiscal 2019. To ensure responsible procurement, we have been working on reduction of environmental impact collaborating with suppliers, ensuring from a request for the improvement items pointed out by audits to a confirmation of implementation of such improvements. Through on-site environmental and CSR audit, we will ensure compliance with relevant laws, social norms and corporate ethics.

We will also promote procurement to fulfill social responsibilities such as human rights, labor, safety and health, and global environmental conservation together with suppliers.

In addition, collaborating with the Institute of Public & Environmental Affairs (IPE), a China's environmental NGO, we have been working on to improve suppliers CSR environment, through sharing information on latest laws and regulations in a periodical working group meeting, and requesting for suppliers whose regulatory violation is recorded on a monthly base to improve it.

In the Suppliers Green Supply Chain responsibility rating (CITI*3 and CATI*4) that has been published by IPE since fiscal 2015, the Panasonic Group has consistently listed in the top rank each year. We were ranked the third best in the CITI ratings and the top in the CATI ratings for the home appliances industry (33 brands) in fiscal 2023.

*3 CITI : The Green Supply Chain Corporate Information Transparency Index
*4 CATI : The Corporate Climate Action Transparency Index