The Promotion of Sustainability Management
The Advancement of Sustainability Management
In April 2022, the Panasonic Group transitioned to an operational company system (holding company system) in order to thoroughly implement autonomous responsible management and strengthen the competitiveness of our business from a medium- to long-term perspective.
Each Operating Company, which will be spun off as a result of the transition to an operating company system, will be able to make decisions quickly in response to changes in the external environment and flexibly design systems according to business characteristics, etc., with greatly expanded authority and responsibilities, thus significantly strengthen our competitiveness.
The holding company monitors non-financial indicators, or competitiveness KPIs, to enhance the competitiveness of each Operational Company.
In addition, various committees were set up to deal with the group’s major issues, and in these committees, we openly discuss and set the direction for specific measures, actively support the strengthening of the competitiveness of each Operational Company, and develop growth strategies from a Group-wide perspective. Through those activities, we strive to improve corporate value as a group.

- Group Management Meeting: Chaired by Group CEO, consisting of about 20 Executive members including the presidents of Operating Companies, heads of each function (held monthly in principle)
- PHD Strategy Meeting: chaired by Group CEO, consisting of ca. 10 Executive members, including the head of functions such as HR, accounting, legal, and others (held twice a month in principle)
- PHD: Panasonic Holdings Corporation
- ERM: Enterprise Risk Management
Materiality
Purpose of identifying materiality
We have identified important opportunities and risks related to sustainability as priority issues (materiality) from the two perspectives of “financial effects on the Company” and “impact on society.” We aim to improve our sustainability management by promoting materiality initiatives, creating new business opportunities, and lowering risks.
Materiality will be reviewed as appropriate based on changes in the business environment and dialogues with stakeholders.
Process of identifying materiality
From a list of items that included demands from society and foreseeable future challenges, we selected issues that could represent opportunities and risks for the Group. Next, we assessed them from the two perspectives of the Group and its stakeholders, and 11 priority issues were extracted.
We confirmed the validity of these analysis processes and the priority issues we extracted through dialogue with external experts.
The materiality was identified after deliberation at the meetings of the Group’s Sustainability Management Committee, the Group Management Meeting, and the Board of Directors of the Company.

Materiality assessment results
We assessed the level of importance of each item from the perspective of the Group and its stakeholders and identified 11 materiality.

Note: Some of the materiality items are similar to the names of “Group Major Risks / PHD Major Strategic Risks” determined by risk management activities; however, due to different objectives and identification processes, their corresponding initiatives are partly different. For more details, see “Risk Management” chapter (on page130).
Examples of initiatives to address priority issues
● Increase positive impact ●Mitigate negative impact
Materiality |
Main initiatives |
Reporting on related items |
|
---|---|---|---|
Highest priority issues |
Global warming and resource depletion |
Panasonic GREEN IMPACT Targets
|
|
Each customers’ life-long health, safety and comfort |
● As a “lifestyle solutions provider” that delivers value tailored to each customer, we combine our diverse customer touchpoints with digital technology to contribute to each customer’s life-long health, safety and comfort |
- |
|
Business integrity |
● Promoting understanding of and confirming compliance with the Panasonic Group Code of Ethics & Compliance and internal rules, and complying with relevant laws |
Sustainability Data Book 2023
|
|
Supply chain management |
● Elimination of waste and stagnation in the supply chain; |
Sustainability Data Book 2023
|
|
Employee well-being |
● Creating a safe, secure, and healthy workplace (thorough implementation of safety and compliance, promotion of health initiatives) Targets
|
Sustainability Data Book 2023
|
|
Corporate governance |
● ● With the transition to a holding company system, significant authority was delegated to the operating companies, with officers of the Panasonic Holdings Corporation participating in the management of the operating companies as directors |
Corporate information site |
|
Respect for human rights |
● Promoting initiatives based on the Panasonic Group Human Rights and Labour Policy |
Sustainability Data Book 2023
|
|
Cyber security |
● Centralization of common cyber security functions across manufacturing, information systems, and product areas to strengthen countermeasures during normal times and incident responses during emergencies |
Sustainability Data Book 2023
|
|
Priority issues |
Preparedness for geopolitical risks |
● ● Monitoring of international situation and trends in policies, laws, and regulations in each country and geographic region to ascertain the impact on the Group’s business and respond in a timely manner |
Sustainability Data Book 2023
|
Preparedness for infectious diseases and pandemics |
● Formulating Group policies for each country based on analysis of its government policies, regulatory trends, infection conditions, etc., and setting and implementing detailed rules at each business site |
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Preparedness for natural disasters |
● Enhancement of stockpiling and drills during normal times and establishment of a safety confirmation system; establishment of a Groupwide Emergency Response Headquarters system in the event of an emergency |
Respecting Global Standards, Norms, Guidelines, and Initiatives
Panasonic Group conducts its business based on global standards, specifications, norms, guidelines, and various initiatives. The Panasonic Group signed the ten principles of United Nations Global Compact.
These concepts are reflected in the Basic Business Philosophy and the Panasonic Group Code of Ethics & Compliance that form the guidelines for the company’s business activities.
In addition, Panasonic Holdings Co., Ltd. has joined the Responsible Business Alliance (RBA) as the Panasonic Group in order to strengthen CSR procurement initiatives in the supply chain.

Promoting Initiatives Based on Dialogues with Stakeholders
Panasonic Group conducts dialogues with its wide range of stakeholders around the world—including customers, investors, suppliers, governments, industry bodies, NPOs, NGOs, local communities, and employees—on various aspects of its business. The company incorporates the opinions it receives into its business activities and product creation.
![Major Stakeholders: Panasonic Group [Customers][Investors][National governments][NPOs/NGOs][Employees][Local communities][Industry organizations][Suppliers]](/content/dam/panasonic/phd-global/en/corporate/sustainability/management/structure/structure_02_2024.jpg)