Panasonic Group endorsed the TCFD recommendations*1 in May 2019. As Panasonic Group recognizes risks and opportunities concerning climate change as a critical management issue, we identify our business risks and opportunities and verify business resilience and strategy by thoroughly analyzing the scenarios, considering the TCFD's recommendation. We also disclose information on thematic areas recommended by TCFD, i.e., 'governance', 'strategy', 'risk management', and 'indices and targets', assuming future engagement with investors, etc.
*1 TCFD: an abbreviation of Task Force on Climate-related Financial Disclosures. The task force was set up by the Financial Stability Board (FSB) in response to a request by the G20 Finance Ministers and Central Bank Governors. TCFD published its recommendations in 2017.
Governance
Panasonic Group system to promote group-wide environmental sustainability management is headed by board of directors, so that information on group-wide environmental sustainability management from all of the operating companies are reported to the board of directors.
Since 2021, progress made in the KPIs established under GIP, as well as issues and social developments, are deliberated on by the Sustainability Management Committee. Decisions on important issues are made swiftly at Group Management Meetings consisting of the Group CEO and the presidents of the operating companies.
This process, under which the PDCA cycle is implemented throughout the Group, was announced in 2022 and is part of Panasonic GREEN IMPACT, our long-term environmental vision.
Strategy
We analyzed impacts on certain items of Panasonic Group Businesses that are likely to affect climate change, based on our assessment of the risks and opportunities in Panasonic Group business operations. The results were used to develop a social scenario for the year 2050, focusing on matters with the greatest impact. We then used the scenario as the basis for examining strategies, and verified the business resilience in our strategy.
Panasonic GREEN IMPACT (PGI) is our transition plan to low-carbon economy as a Panasonic group. To support this transition, we have set up short-term targets in our Green Impact Plan (GIP) 2024. We have also set out following medium-term targets.
- Make our total CO2 emissions (Scope 1 and Scope 2) net-zero by 2030.
- Reduce CO2 emissions from use of our products that Panasonic Group sold by 30% compared with the 2019 level by the year 2030.
Risk Management
As a tool to continuously reduce environmental risks, Panasonic Group is working to establish operating company-specific Environmental Risk Management Systems, in accordance with the basic risk management policy for all Group companies The management policy includes identification of environmental risks and group-wide risk management each year, and ensuring quick responses to reported environmental risks. In addition, The Panasonic Group is promoting risk management based on the same process at Panasonic Holdings Co., Ltd. and operating company. Once a year, the Enterprise Risk Management Committee identifies risks that could affect the entire Group based on changes in the external and internal environment and management's risk awareness. In fiscal 2026, the Panasonic Group addressed significant strategic risks related to environmental issues and climate change.
Metrics and Targets
The Panasonic Group has set its medium- to long-term targets for reducing greenhouse gas emissions which were accredited SBT*2 2.0°C in October 2017. Furthermore, in May 2023, our new greenhouse gas emissions reduction target was accredited as SBT 1.5°C.
In addition, we set long-term targets and received accreditation for our net-zero emissions targets.
*2 SBT: an abbreviation of Science Based Target. It is a target to reduce GHG emissions in consistent with scientific knowledge toward the goals to limit the increase of global temperature to less than 2.0°C, or less than 1.5°C if possible, above pre-industrial levels.
GHG emissions reduction targets (SBT 1.5°C accreditation)
| Targets | Progress rate | |
|---|---|---|
| Emissions from Panasonic Group business activities (Scopes 1 and 2) | Reduce by 90% by 2030 (compared to FY2020) 2019: 2,311 kt | 45% |
| Emissions from use of Panasonic Group products (Scope 3) | Reduce by 30% by 2030 (compared to FY2020) 2019: 95,040 kt | -*3 |
*3 Progress rate not calculated due to increase in emissions because of expansion of products subject to calculation
GHG emissions reduction targets (SBT net-zero accreditation)
| Targets | Progress rate | |
|---|---|---|
| Emissions from Panasonic Group business activities (Scope 1, 2 and 3) | Reduce by 90% by 2050 (compared to FY2020) 2019: 127,039 kt | -*3 |
Moreover, regarding indices related to climate change, we are discussing to set targets for following each item.
Transition risk
In response to a rise in the awareness of environmental issues, we are particularly focusing on the risks associated with the introduction and expansion of environmental regulations and policies in the international community. The rise in energy procurement costs, forced purchase of emission credits, increase in manufacturing costs because of switching to use materials with lower environmental impact, and commoditization of low-carbon products, resulting from the introduction of carbon pricing, such as a carbon tax and the Emission Trading System, are all may adversely affect our Group's business operations and performance. In addition, any delay in taking action to take measures against these environmental issues may lead to a loss of business opportunities to expand in the European and other markets as well as a loss of business opportunities as a result of trade halts. Furthermore, our drive to use tax deductions, subsidies and other methods to gain business opportunities under regulatory systems for energy security assurance and climate change measures in these countries may adversely affect our Group's business since we will not be able to receive fruitful results as we expected.
Physical risk
Each operating company assesses and monitors natural disaster risks, as well as their emergency responses to those risks. Each operating company also established financial assessment standards on the scale of the impact of the potential risks, rating the risk as high when the impact is more than 10 billion yen and as medium or low according to the impact risk.
Climate-related business opportunities
As the target set under our PGI announced in April 2022, we will strive to reduce CO2 emissions, with a aim of by 2050, achieving reduction impact of more than 300 million tons that is 'approx.
1%' of the total CO2 emissions discharged all over the world as of now, through group business activities.
In addition to our business operations in the automotive battery business for environmentally friendly vehicles that are designed to significantly reduce CO2 emissions and activities to reduce CO2 emissions from our air quality and air conditioning business in Europe, we opened demonstration facilities for Panasonic HX at our Japanese sites in 2022 and overseas sites in 2024*4. Panasonic HX is a solution based on our unique AI-based Energy Management System (EMS) that integrates three energy sources—pure hydrogen fuel cell generators, photovoltaic generators and storage batteries—to provide stable, renewable energy and effective energy use.
Internal carbon pricing
Panasonic Group introduced internal carbon pricing (ICP) in March 2022 for capital investment, with a setting the price of CO2 emissions at 6,000 yen/t-CO2.*5 We plan to increase the installation of energy-saving facilities and renewable energy-fueled equipment, including photovoltaic power generation, while maintaining economic rationality that is consistent in the future, by considering the impact of future carbon taxation and the like. As for further expansion in the scope of our activities and price setting, we will determine in line with our business decisions.
In order to accelerate our competitiveness in businesses contributing to ‘carbon neutrality (decarbonization)’ and ‘circular economy’, Panasonic Corporation, one of our Panasonic Group companies, introduced the ICP scheme where CO2 emissions reduction in Scope 3 in our entire value chain and avoided CO2 emissions contribute to society are used as criteria for investment decision, to all Panasonic Corporation in fiscal 2025.
Until now, priority investments have been made in the business of automatic demand response control for refrigerators and part of the Panasonic Factory Refresh business.
Remuneration
Since April 2022, we have adopted a new performance evaluation system for executive remuneration of directors and executive officers of the holding company and of the presidents of the operating companies. The evaluation items for performance-based remuneration include those related to sustainability viewpoint such as environmental contributions. One of the examples of the contribution to our environmental performance index is reduction of CO2 emissions in our own value chain.
*4 See https://news.panasonic.com/global/press/en241203-3
*5 Subject to change because of market conditions
