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.
We introduce our collaboration with transportation partners in the section on Green Logistics.
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 materials in order to materialize the targets in supplier collaboration with our Group. In addition to cooperation in ‘reducing environmental impact 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. Working on our own targets to achieve both a better life and a sustainable global environment aimed in the “Panasonic GREEN IMPACT” in January 2022, we will expand our efforts to reduce CO2 emissions throughout the supply chain. In October 2022, 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. In fiscal 2024, we submitted a letter to all of approximately 13,000 suppliers who have business with Panasonic Group across the globe to deepen understanding of our activities of ‘Panasonic GREEN IMPACT’.
In response to more stringent and expanded regulations such as EU RoHS Directive, the Panasonic Group has been engaging in continual environmental quality assurance system audits of our suppliers since 2005 to improve the management level throughout the entire supply chain. In fiscal 2026, we conducted the audits at some 950 suppliers and have supported their efforts to upgrade their management levels for chemical substances in products.
Estimation and Reduction 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 2026 data is 19.01 Mt.
*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).
In fiscal 2026, with a view to transitioning to the implementation phase for reducing emissions, we shared information and exchanged views with key suppliers regarding the status of their greenhouse gas emissions calculations and their understanding of the challenges involved in reducing emissions. Taking into account each supplier's business characteristics and the progress of its initiatives, we worked to establish a foundation for future emissions reduction activities by developing a shared understanding of calculation scopes and methods.
To reduce CO2 emissions with our suppliers, Panasonic Group is actively procuring low-carbon materials for resins, irons/steels, aluminum ingots, copper bullion, such as utilization of recycled resins and recycled irons/steels, recycled copper, and aluminum ingots refined using hydroelectricity. In fiscal 2026, we managed to reduce approximately 73,000 tons of CO2 emissions.
Scheme to Procure and Supply Aluminum Ingots Produced using Hydroelectricity.
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 43,000 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.
Sharing Achievements through Collaboration with the Panasonic Group
Since 2009, ECOVC has been ahead of the industry in working with suppliers worldwide to promote CO2 reductions throughout the entire supply chain, from raw material procurement through manufacturing and delivery. Through these efforts, we launched initiatives to strengthen the competitiveness of our eco-conscious products.
The concept behind ECOVC is to work with our suppliers to help mitigate global environmental issues while simultaneously achieving "GHG Emissions Reduction and Recycling-oriented Manufacturing" and "Cost Rationalization."
In fiscal 2019, renewable energy was added as a new evaluation item alongside the existing criteria of energy conservation (CO2 emissions reduction), cost reduction, resource conservation, and the use of recycled materials. Since fiscal 2024, these initiatives have evolved further through coordination with Panasonic GREEN IMPACT.
Proposals submitted by suppliers are evaluated from multiple perspectives by several different departments within the Panasonic Group, and the evaluation results and perspectives are shared with the suppliers. Outstanding examples are recognized and introduced at events such as ECOVC award ceremonies and technical exchange meetings. Examples of initiatives created through these activities are also shared throughout the Group.
This evaluation and visualization framework helps motivate suppliers that proactively seek to achieve both environmental and business value, while continually strengthening our partnerships with them.
Environmental Achievements Made through Proposals
| Items | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | Cumulative total |
|---|---|---|---|---|---|---|
| Number of proposals | 332 | 264 | 236 | 265 | 291 | 10,778 |
| CO2 reductions derived from proposals | 50 kt | 80 kt | 927 kt | 55 kt | 85 kt | 4,461kt |
| Use of recycled resources derived from proposals | 1.5 kt | 0.6 kt | 37 kt | 13.4 kt | 27.5 kt | 212 kt |
| Reduction in resources used derived from proposals | 255 kt | 40 kt | 19 kt | 17 kt | 216 kt | 1,007 kt |
Collaboration with Environmental NGOs
Following the announcement of the "Panasonic GREEN IMPACT", we further enhanced collaborative work with environmental NGOs overseas and deepened our CSR efforts in the supply chain.
Particularly in China, where the number of suppliers of our group is large and there are strong demands in the society for suppliers to properly respond to environmental matters, we are continually working together with the suppliers to reduce environmental loads by from requesting corrective actions as items require improvement for the issues found in the audit, and confirming whether the items are improved, aiming at further pursuing responsible procurement activities.
Through confirming these CSR and environmental items on site, we will continue to comply with new regulations, social norms, and corporate ethics, and conduct procurement activities that fulfill our social responsibilities such as for human rights, labor, safety and health, and global environmental conservation.
Main activities to date
2016 | Started collaboration with a Chinese NGO. |
|---|---|
2018 | Conducted on-site environmental audits that focused on suppliers’ responsiveness to environmental issues, together with CSR audits for approximately 20 suppliers per year. |
2020 | Continually implemented on-site and online audits for more than 20 suppliers per year. |
2023 | Reinforced the on-site audits at suppliers sites through the Group-wide Supply Chain Compliance Project. |
In addition, we are continually improving suppliers CSR and environmental issues, collaborating with an environmental NGO in China, the Institute of Public & Environmental Affairs (IPE), through periodically sharing information on the latest laws and regulations in working group meetings, as well as requesting the suppliers with records of non-compliance for improvement every month.
In the Suppliers Green Supply Chain Evaluation rankings (the CITI score*2 and CATI score*3) published by the IPE since fiscal 2015, the Panasonic Group has consistently ranked near the top each year. In fiscal 2026, the Group ranked 39th in CITI (out of 800 brands) and 33rd in CATI (out of 903 brands). Furthermore, it ranked first among brands in the household appliances industry in both CITI and CATI.
*2 CITI: The Green Supply Chain Corporate Information Transparency Index
*3 CATI: The Corporate Climate Action Transparency Index
