Approaches to CO2 Reduction

The Paris Agreement that went into effect in November 2016 sets out a target to limit global temperature increases to less than 2°C above pre-industrial levels and a more ambitious target to keep global temperature increases to less than 1.5°C above pre-industrial levels, as well as sets the goal for CO2 and other greenhouse gas emission levels for the second half of this century to be virtually zero. To achieve these targets, it is essential to cut CO2 emissions to the greatest extent possible, and companies are required to make further contributions to reducing CO2 emissions.

In association with the announcement of the Environment Vision 2050 (see page 13) focusing on energy, we have set the reduction targets for CO2 emissions to be achieved by 2030 and 2050 : reducing CO2 emissions from our business activities by 30% by 2030 compared to that of fiscal 2014, achieving zero emission by 2050, and reducing CO2 emissions from our product use by 30% by 2030 compared to that of fiscal 2014, in line with the goal set by the Paris Agreement.
The targets have been approved as Science Based Targets (SBT*1) by the SBT initiative in October 2017. We are currently working towards CO2 emissions reduction from our business activities and product use in order to achieve these targets.

*1 SBT is science-based reduction targets for greenhouse gas emissions set to achieve the goal which keeps global temperature increase below 2°C compared to pre-industrial temperatures.

Size of Contribution in Reducing CO2 Emissions through products and services

Panasonic has introduced a unique indicator "size of contribution in reducing CO2 emissions" to accelerate emissions reduction, targeting our products (for energy saving and energy creation). The size of contribution in reducing CO2 emissions is defined as the amount 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 from fiscal 2006, and this amount is combined with the emission reduction resulting from power generation by energy-creating products. In other words, it reflects the continuous efforts being made to reduce CO2 emissions.

Panasonic will continue to maximize the size of contribution in reducing CO2 emissions.

Size of Direct Contribution in Reducing CO2 Emissions through Energy-saving Products

We will improve the energy-saving performance of our products to reduce the energy consumed in using the products.
The more energy-saving products are introduced and promoted, the size of contribution in reducing CO2 emissions will further increase.

The amount 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 from fiscal 2006,

*2 For each product category, the model that was sold in the largest quantity in the region was selected.
*3 Regional CO2 emission factors (kg-CO2/kWh) used: 0.410 (Japan); 0.487 (Europe); 0.579 (North America); 0.740 (China & Northeast Asia); 0.927 (India & South Asia); 0.527 (Southeast Asia & Oceania); 0.332 (Latin America); and 0.599 (Middle East & Africa).
*4 Number of years during which spare parts for the product are available (defined by Panasonic).

Size of Direct Contribution in Reducing CO2 Emissions through Energy-creating Products

By using electricity generated by solar power generation and such, we can reduce CO2 emissions from thermal power plants. Panasonic will further foster its energy creation business to increase the size of contribution in reducing CO2 emissions.

The emission reduction resulting from power generation by energy-creating products

*5 For photovoltaic power generation: 1,204 kWh/kW (after fiscal 2015), 1,193 kWh/kW (fiscal 2014 and prior).Considering sunshine conditions, system loss, and other variables.
*6 For photovoltaic power generation: 0.360kg-CO2/kWh (Source: Voluntary Rules on Indication (2010) by the Japan Photovoltaic Energy Association).
*7 For photovoltaic power generation: 20 years.

Size of Indirect Contribution in Reducing CO2 Emissions

Effects of reducing CO2 emissions in domains of housing, automotive, and B2B businesses which we are focusing on are shown as the size of indirect contribution to reducing CO2 emissions to distinguish it from the size of direct contribution in reducing CO2 emissions from Panasonic-brand products. The size of indirect contribution in reducing CO2 emissions represents the CO2 emissions reduction effects from other companies' products, in which our components contribute to reducing CO2 emissions. Specifically, the data represents "air conditioning load reduction effects from improved insulation performance in Panasonic housing," "energy-saving effects from products by other companies equipped with Panasonic energy-saving compressors, motors, and vacuum insulation materials" and "improved fuel economy effects from electric vehicles equipped with Panasonic automotive batteries." From the results for fiscal 2017, CO2 reduction effects as a result of energy saving such as less travelling made possible through the use of our HD Visual Communication Systems, and from the results for fiscal 2018, the energy-saving effects from using our HEMS and BEMS are also calculated and disclosed.

Our size contribution in reducing CO2 emissions through products and services amounted to 60.97 million tons in fiscal 2018. Of this, direct contributions amounted to 43.87 million tons, and indirect contributions to 17.10 million tons.

Our size contribution in reducing CO<sub>2</sub> emissions through products and services amounted to 60.97 million tons in fiscal 2018. Of this, direct contributions amounted to 43.87 million tons, and indirect contributions to 17.10 million tons.

*8 Total amount of contribution in reducing CO2 through energy-saving products and energy-creating products