Environment : Mid-term to Long-term Environmental Vision

From Panasonic Environment Vision 2050 to Panasonic GREEN IMPACT

Panasonic Group's "Environment Vision 2050" formulated in 2017 was to promote reductions in the amount of energy used, and at the same time to generate and utilize clean energy in amounts greater than the amount of energy used, with the aim to build a society in which residents can use clean energy and live a more comfortable and 'a better life' that coexists with 'a sustainable global environment'.

To be specific, we aimed to reduce the amount of 'energy used' by developing technologies that would improve the energy-saving performance of our products, and to introduce innovations to our manufacturing processes. At the same time, by expanding our energygeneration and storage businesses, we aimed to increase the amount of 'energy created' and provide more opportunities to utilize clean energy. We have challenged to ensure that the energy created exceeds the energy used by the year 2050.

Panasonic Environment Vision 2050 To achieve "a better life" and "a sustainable global environment," Panasonic will work towards creation and more efficient utilization of energy which exceeds the amount of energy used, aiming for a society with clean energy and a more comfortable lifestyle. Energy used < Energy created

We believe that resolving global environmental issues including climate change is a top priority issue for our far-reaching mission to achieve an ideal society that 'satisfies both individual material life and mental health'. In January 2022, Panasonic Group published a long-term vision, "Panasonic GREEN IMPACT" regarding environment.

Facing our responsibilities to resolve environmental issues particularly on climate change, we have transformed "the Panasonic Environment Vision 2050" to "Panasonic GREEN IMPACT", i.e., transformed the activities for energy efficiency to activities in wider scope to reduce CO2 emissions from Panasonic Group and societies with the aim of achieving carbon neutrality, in which the impacts of accumulation of each of our actions (ACT) reduce both our own CO2 emissions and the emissions of various fields of society.

Panasonic GREEN IMPACT To realize 'a better life' and 'a more sustainable global environment', the Panasonic Group will strive to achieve carbon neutrality together with society, by increasing impacts from various actions that will contribute to reduce CO? emissions of our own and of various fields of society.

By 2050, Panasonic Group aims to reduce CO2 emissions by more than 300 million tons*1, or 'about 1%' of the current total global emissions of 33.6 billion tons*2 through our group business activities.

Our reduction of 300 million tons can be split into three types of impact.

  1. OWN IMPACT: Moving faster to reduce CO2 emissions by 110 million tons across Panasonic Group value chain. At the same time, achieving net zero CO2 emissions in the Group together with a decarbonization effect on the whole of society by 2050.
  2. CONTRIBUTION IMPACT: Contributing to a reduction of 100 million tons through customers energy reduction such as through expansion of sales of eco-conscious vehicles using automotive batteries, businesses of supply chain software, air quality and air conditioning, etc.
  3. FUTURE IMPACT: Contributing to a reduction of 100 million tons in social energy transformation by creating new technologies and businesses in hydrogen energy and other fields.

Furthermore, we refer to the ripple effect of Panasonic Group's proactive initiatives on energy transformation in society through the three aforementioned impacts as "INFLUENCE", although we are not including its calculation results in our direct CO2 reduction results as of now.

*1 33.6 billion tons of energy-related CO2 emissions in 2019 (Source: IEA)
*2 Factors for calculating CO2 emission are the 2020 factors.
*3 FY2021 result

Environmental Action Plan "GREEN IMPACT PLAN 2024"

We set specific target values such as for own CO2 emissions reduction and contribution to society-wide CO2 avoided emissions in "GREEN IMPACT PLAN 2024 (GIP2024) that is a three-year environmental action plan covering fiscal 2023 to fiscal 2025 as a milestone toward 2050 targets set in "the Panasonic GREEN IMPACT" which is Panasonic Group's long-term environmental vision.

The OWN IMPACT in the GIP2024 refers to the targets in Scopes 1, 2, and 3. We aim at a reduction of 16.34 million tons CO2 emissions by fiscal 2025 from our current emissions of 110 million tons, while retaining business growth. We are particularly focusing on increasing the number of zero-CO2 factories, where we aim at net zero CO2 emissions from processes in manufacturing products, increasing the number of net zero CO2 factories from nine in fiscal 2022 to 37 in fiscal 2025. In addition, the CONTRIBUTION IMPACT in the GIP2024 we aim to increase to 38.3 million tons by fiscal 2025 for the contribution to society-wide CO2 avoided emissions.

Furthermore, we will reinforce our efforts to establish a Circular Economy (CE). One is for recycling ratio of factory wastes. In this area, we aim to normalize more than 99% of the recycling ratio across the world, through reviewing and modifying product designs, sorting recyclable materials without fail, etc., although some countries and regions still do not have an established waste handling method. For expansion of use of recycled plastics, we will increase their use amount in 3 years up to 90,000 tons which is more than double of the previous midterm's (FY2020 to FY2022). We will also direct our efforts to create CE business models based on the relation map between existing businesses and a Circular Economy that we completed in the previous medium-term. As of fiscal 2022, we have six CE businesses, for example, business development of mixed cellulose plastics. We plan to increase these businesses to at least 13 by fiscal 2025, including subscription services for home appliances and sharing services for electrically assisted bicycles.

We also set the fiscal 2031 targets at the same time as the GIP2024. In addition to the activities to achieve net zero of the emissions from our offices and factories specified in Scope 1 and 2 as we published our commitment in May 2021, we will reduce emissions specified in Scope 3, by thorough energy saving in the area of Lifestyle Updates Businesses, aiming at 31.45 million ton reduction in the OWN IMPACT. Further, we aim to achieve 93 million tons of the contribution to CO2 avoided emissions in the CONTRIBUTION IMPACT by fiscal 2031 by increasing competitiveness of our businesses focusing on' electrification', 'energy efficiency', and 'hydrogen' areas.

Although we have been making these efforts, there is no common method to calculate the contribution to CO2 avoided emissions. In 10 years, a standard formula that uses a calculation method different from our own may have been established. In such case, we will review our method of the calculation and correct it if necessary to achieve the set targets in order, using the new formula and continue to build a carbon-neutral society as early as possible.

For the issues that we need to continue, we set targets taking account of the scale of such issues and empathy in society, to suit the characteristics and needs of our operating companies and communities.

GREEN IMPACT PLAN 2024 and Fiscal 2031 Targets

GREEN IMPACT PLAN 2024 and Fiscal 2031 Targets

*1 Classification according to the GHG protocol (standards for calculating and reporting emissions).
*2 CO2 amount of reduction based on 2020.
*3 CO2 Avoided emissions is the amount calculated by subtracting the lifetime CO2 emissions after introduction from the lifetime CO2 emissions assuming that the Group’s products and services do not exist and calculated using 2020 emission factor.
*4 Amount of resources recycled/(Amount of resources recycled + Amount of landfill).
*5 Mass of recycled materials contained in the recycled resin used in our products.
*6 Cumulative up to 2024

Size of CO2 emissions & reductions in our own value chain (tons)

*7 Includes avoided emissions through replacement purchase of products, etc. (10.99 Mt in FY2021 & 6.3 Mt in FY2025)

Dissemination of Decarbonized Energy

Panasonic Groups has been contributing to realize a decarbonized society through offering new options to adopt and increase use of electricity generated from renewable energy sources, particularly full use of electricity generated from hydrogen. Specifically, we developed 'H2 KIBOU' that is a pure hydrogen fuel cell generator with 5kw output that enables 56% of power generation efficiency which is the industry's highest performance in small generators. We have started selling H2 KIBOU for commercial use in October 2021. In addition to that scaling out* of generated output from a H2 KIBOU can be done according to electricity demand by incorporating technology to control linked multiple units, H2 KIBOUs can be installed on the roof top of buildings, small narrow places, etc. Furthermore, we published 'RE100 solution' that is an initiative with an aim to use 100% renewably energy in business activities, by self-power generation through a combination of use from energy sources of 3 types of cells, i.e., pure hydrogen fuel cells, photovoltaic cells, lithium-ion storage cells. We will start conducting its demonstration experiment at Kusatsu site, Shiga.

*Scale out: to improve performance of a whole system by parallel and distributed processing.

Pure hydrogen fuel cell generator 'H2 KIBOU'
Facilities for demonstration experiment of 'RE100 solution' at Kusatsu site, Shiga

Environmental Action Plan "Green Plan 2021"

Having achieved the targets we set out in Green Plan 2018, we have created a new Green Plan 2021 for the period from fiscal 2020 to 2022 to move us forward towards Panasonic Environment Vision 2050, which aims for building societies based on clean energy and more comfortable lifestyles that will bring "A better life" and "Sustainable global environment" compatibly.

Green Plan 2021 sets targets that focus on "energy" and "resources," which are the materiality to address to realize Environment Vision 2050. We also set out integrated and simplified targets as our continuing efforts for issues other than the above material issues, based on the Environmental Action Guidelines while taking account of environmental challenges and understanding society. We have worked to make "energy created" exceed "energy used" towards the year 2050, or even earlier.

To this end, in terms of "energy", we have worked to "increase amount of energy created" and "increase the size of contribution toward energy savings" in the area of products and services. The size of contribution toward energy savings through our products and services is an index to indicate the amount of our efforts toward energy savings when products and services of Panasonic Group are used by customers.
We have focused on increasing the value of this index. The initiative to increase this index is similar to our aims concerning the size of contribution in reducing CO<SUB>2</SUB> emissions through our products and services, which indicates the amount of our efforts to reduce CO<SUB>2</SUB> emissions in order to bring forward the peak of total CO<SUB>2</SUB> emissions in whole society. When the size of contribution in reducing energy consumption is converted to CO<SUB>2</SUB> emissions, it can be transferred to the size of contribution in reducing such emissions.

As a means of "energy," our factories have implemented activities such as "promoting zero-CO2 model factories," "increasing the use of renewable energy," and "promoting energy efficiency in production."

In our production activities, we have worked to further reduce energy consumption and CO<SUB>2</SUB> emissions by employing thorough energy-saving measures in all factories across the globe.

In terms of "resource," we have worked to "create circular economy business models," "reduce resources consumption and increase the use of sustainable materials," and "achieve Zero Waste Emissions from factories globally."

As other environmental sustainability goals, we have implemented activities in solving issues concerning water, chemical substances, and biodiversity, as well as in promotion of community contributions and education for the next-generation, and to prevent pollution in factories and thoroughly comply with product-related laws and regulations.

To spread a positive influence across society, we have implemented our environmental activities by rolling them out beyond the Panasonic Group across the entire supply chain through close collaboration with a variety of partners.

We have steadily put this environmental action plan into practice to achieve the set targets by fiscal 2022.

Environmental Action Plan “Green Plan 2021”

Environmental Action Plan

*1 Clean energy that is created/efficiently utilized in business activities as well as for products/services made through such activities.
*2 Energy that is used in business activities as well as for products / services made through such activities.
*3 The amount of energy achieved by deducting the actual emissions from the amount that would have been emitted without the improvements by the energy-saving performance of our products.
*4 Size of contribution by major products of Panasonic Group.
*5 Size of contribution by our solutions, or materials and components built into products of other companies.
*6 Five areas, covering: Japan; China & Northeast Asia; Southeast Asia & Oceania, India & South Asia, and Middle East & Africa; North America and Latin America; and Europe & CIS.
*7 Usage in our sites of renewable energy (solar, wind, biomass, etc.) generated by renewable power generating facilities in our sites.
*8 Mass of recycled materials contained in the recycled resin used in products of Panasonic Group.
*9 Amount of resources recycled/(Amount of resources recycled + Amount of landfill).
*10 Contribution to local communities
Education the next generation

The Amount of the Energy Created by Products and Services

"The amount of the energy created" by our products and services is composed of "creation" of the power generated by products of Panasonic Group at customer sites, and "utilization" of the power stored by products of Panasonic Group at customer sites. In concrete terms, we regard the amount of the power generated by our solar photovoltaic systems and fuel cells as "creation," and the used amount of the power stored in our automotive batteries and on-site storage batteries as "utilization." "The amount of the energy created" from our products and services refers to the sum of the "created" and "utilized" power. Using this "amount of the energy created" as an index to represent our continuous efforts to increase the energy to be created and utilized by products and services of Panasonic Group in customers' premises, we set numerical targets.

The fiscal 2022 result was 13 TWh.

Although our solar battery sales continue, termination of solar battery production at our factories in Malaysia and Shimane, Japan affected the Group and fell short of the target for the amount of energy created.

For the same reason, the ratio of total energy created to total energy used also fell below the target.

The Size of the Contribution in Reducing the Energy Used by Products and Services

Panasonic Group define the "energy used by our products and services" as the amount of the energy used by products of Panasonic products at consumer sites. We plan to continue reducing the amount of the energy used by our products and services by further improving their energy-saving performance.

In order to promote reduction of the amount of the energy used by our products and services, we introduced the concept of "size of the contribution in reducing the amount of the energy used." We define the "size of the contribution in reducing the amount of the energy used" as the amount of the estimated energy used by our products after subtracting the amount of the energy actually used, assuming no improvement in their energy energy-saving performance since fiscal 2014. Using this "size of the contribution in reducing the amount of the energy used" as an index to represent our continuous efforts to reduce our energy consumption, we set numerical targets.

Within the "size of the contribution in reducing the amount of the energy used," we classify the contribution into two; 1) the contribution by finished products of Panasonic Products, as "direct contributions"*10 and 2) the contribution by products and services except finished products of Panasonic Products, as "indirect contributions."*11 "The indirect contributions" means energy reduction effects of finished products of other companies that are supported by products and services of Panasonic Group. The "size of the contribution in reducing the amount of the energy used" in fiscal 2022 was 35 TWh. Of this, the direct contribution was 32 TWh and the indirect contribution was 2.4 TWh.

*10 Scope of the direct contribution: Household air conditioners, commercial air conditioners, lighting equipment and lamps, household refrigerators, commercial refrigerators, LCD TVs, washing and drying machines, fully-automatic washing machines, dish washer and dryers, IH cooking heaters, EcoCute, bathroom ventilation dryers, humidifiers, dehumidifiers, air purifiers, ventilation fans, electric fans, electronic rice cookers, microwave ovens, electric bidet toilet seats, irons, hair dryers, electric showers, electric water heaters, under-rug heaters, vacuum cleaners, electric water boilers, range hoods, projectors, mounting machines, etc.
*11 Scope of the indirect contribution: Motors, heat exchangers.

Reduction of the amount of the energy used is also reduction in GHG emissions. The size of the contribution in reducing CO2 emissions converted*12 from the size of the contribution in reducing the amount of the energy used was 18 Mt.

*12 CO2 emission factors (kg-CO2/kWh) used by region: 0.487 (Japan); 0.277 (Europe); 0.383 (North America); 0.623 (China & Northeast Asia); 0.723 (India & South Asia); 0.386 (Southeast Asia & Oceania); 0.252 (Latin America); and 0.616 (Middle East & Africa).

Expanding energy creation and energysaving businesses

Miyako Island, Japan aims to achieve a 48.9% energy selfsufficiency rate by 2050. Since 2011, the island has been conducting Island-and-Islet Type Smart Community Islands Verification project, introducing energy management systems that cover houses, business sites, and agricultural lands.

Since 2016, the project has been shifted to development of a cloud-based energy management system. Utilizing the standard protocol, ECHONET Lite,*13 verification of the system controls and operations of EcoCute, energy storage equipment installed in Eco Park Miyako verification site has been conducted under a multi-vendor environment*14. Products of Panasonic Group are contributing to this project.

Thanks to the increased number of adoptions of automotive lithium-ion batteries with high capacity, and operation of their new production lines in North America, sales volume in FY2022 became 145% versus last year.

*13 Standard for communications by Home Energy Management Systems (HEMS) that comprise smart houses recommended by the Ministry of Economy, Trade and Industry (METI).
*14 An environment where equipment of different manufacturers are installed.