Reducing CO2 Emissions in Logistics

To contribute to the prevention of global warming as well as to improve transportation efficiency while reducing costs, Panasonic is working to reduce CO2 emissions in logistics. When we revised Green Plan 2018, our Environmental Action Plan, in 2016, we set the targets of reducing CO2 emissions per basic unit*1 by at least 1% year-on-year, and by 5% from the fiscal 2014 level by fiscal 2019, focusing on modal shift, introduction of low-emission vehicles and biodiesel fuel, reduction in transportation distances, and improvement in load factor.

In fiscal 2018, our global CO2 emissions from logistics activities came to 0.944 million tons across the world, of which international transportation was 0.373 million tons, and domestic transportation within Japan was 0.131 million tons. CO2 emissions per basic unit of transportation within Japan reduced by 4.6% from the fiscal 2014 level.

*1 CO2 emissions per transportation weight.

CO2 emission levels for shipping for fiscal 2018 show a global total of 944,000 tons, of which international transportation accounts for 39.5%, intra-regional shipping outside Japan for 46.7%, and domestic shipping in Japan for 13.8%.
Transportation volumes for fiscal 2018 total 1 billion ton-kilometers, of which air freight accounts for 0.1%, trucks for 92.1%, ships for 6.1% and rail for 1.7%.

Modal Shift*2 Initiative in Collaboration with Logistics Partners

Panasonic promotes a modal shift in transportation from trucks to railroad and ships in order to reduce CO2 emissions.
As a part of this initiative, we have been working together with Suzuyo Cargo Net and Nittsu Panasonic Logistics Co., Ltd. towards a new manner of transportation since 2017. Panasonic has conventionally used cargo trucks to transport its washing machines from Fukuroi City in Shizuoka Prefecture to Tosu City in Saga Prefecture. We have managed to switch this means of transportation to domestic shipments twice per week by reducing the shipping volume variation to average out the transportation load. This initiative generates a CO2 emissions reduction effect equivalent to 81 tons.

*2 Switch from truck and air transport to railroad and sea vessel transport that has less environmental impact.

Domestic vessel transportation

Use of Biodiesel Fuel (Japan)

Panasonic promotes transforming waste cooking oil collected from its business sites into biodiesel fuel and utilizing it for vehicles used in production, procurement, and marketing activities. Since fiscal 2010, we have been using 100% biodiesel fuel for the joint transportation with the Asahi Shimbun Company in the Tokai and Tokyo Metropolitan areas to enhance further usage of biodiesel fuel. Biodiesel fuel usage in fiscal 2018 was 19,664 liters. We aim to increase the biodiesel fuel usage in vehicles that run only in private premises, such as forklift trucks.

Recycling of Stretching Film Used in Transportation

As an effort to reduce logistics waste, we jointly entered into a full recycling scheme for used stretch film with Nozoe Industry INC. (Nozoe) in fiscal 2015, and are continuing the initiative in fiscal 2017. The stretch film used for our transport was previously discarded, but is now recycled by Nozoe as a material for plastic garbage bags, which we then purchase.

In fiscal 2018, in response to the prohibition of imports of waste plastic by China in the end of 2017, our operation sites which have not collaborated with Nozoe started working with the firm. The beginning of fullscale operation of Nozoe's recycling factory in Saitama Prefecture led to expand our recycling scheme for used stretch film in Kanto region, and a total of 360 tons of stretch film was recycled, which is increased by 198% over the previous year. We plan to increase the purchase of Nozoe's recycled products in fiscal 2019. We continue to make effective use of used stretch film and reduce logistics waste.

Stretch film purchased from Nozoe Industry Inc. for transportation is recycled into garbage bags and repurchased by Panasonic.

Landing Shipments at a Port Close to the Target Sales Area

Aiming for higher efficiency in transporting products, Panasonic is expanding its our efforts to land imported products at a port close to the target sales area in Japan. Conventionally, landing of products was centralized to a port near the West Japan Global Logistics Center (GLC) in Amagasaki City in Hyogo Prefecture, stored at the West Japan GLC, and then transported to respective locations as required. Landing the products at ports closer to the target sales areas can reduce the distance required for land transport within Japan, thereby contributing to reducing not only CO2 emissions but also inbound and outbound deliveries between sites as well as distribution costs. This effort has reduced CO2 emissions by 926 tons per year in fiscal 2018.

We will further refine projection of sales demand in various regions and optimize stock amounts held in those areas, and expand landing products at ports near target sales areas.