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 2017, our global CO2 emissions from logistics activities came to 0.82 million tons across the world, of which international transportation was 0.33 million tons (41%), and domestic transportation within Japan was 0.133 million tons (16%). CO2 emissions per basic unit of transportation within Japan reduced by 5.8% from the fiscal 2014 level.

*1 CO2 emissions per transportation weight

CO2 emission levels for shipping for fiscal 2017 show a global total of 820,000 tons, of which international transportation accounts for 41%, intra-regional shipping outside Japan for 43%, and domestic shipping in Japan for 16%.
Transportation volumes for fiscal 2017 total 990 million ton-kilometers, of which air freight accounts for 0.1%, trucks for 90.8%, ships for 6.2% and rail for 2.8%.

Modal Shift*2 Initiative in Collaboration with Logistics Partners

Panasonic promotes modal shift in transportation from trucks to railroad in order to reduce CO2 emissions.

Since fiscal 2016, Panasonic has taken the initiative in modal shift, collaborating with our logistics partners, including Mitsui-Soko Logistics Co., Ltd., Japan Freight Railway Company, and Nippon Express Co., Ltd.

Conventionally, we delivered cold chain equipment from Gunma Prefecture to Fukuoka Prefecture by truck based on requests from customers. In 2015 we established the Kyushu Stock Point (SP) to achieve stable product supply and optimize stocks of popular products. This enabled us to shift the means of delivery from road to railway. The CO2 emissions reduction effects from this shift are equivalent to 304 tons per year (113% compared to the previous year).

As a result, our railway transportation in Japan in fiscal 2017 reached 9,770 five-ton containers, reducing 4,968 tons of CO2 emissions.

Rail freight transportation

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

Adoption of New Natural Gas Heavy-duty Trucks

From February 2017, we started using a new type of heavy-duty trucks that utilize natural gas*3 for product deliveries between Osaka and Tokyo. This is the first heavy truck to be introduced under the Project to Accelerate Usage of Advanced Eco-Friendly Trucks and Buses which commenced in fiscal 2017, led by the Ministry of the Environment in collaboration with the Ministry of Land, Infrastructure, Transport and Tourism, and the Ministry of the Economy, Trade and Industry.

Panasonic participated in Japan’s first long-distance trial of natural-gas heavy-duty trucks in fiscal 2010. Since then, we have been taking part in field tests and promotional activities by public and private sectors towards practical utilization of natural-gas heavy-duty trucks. The truck adopted at this time can reduce CO2 emissions by more than 10% compared with diesel trucks in the same classification that conform with the fiscal 2016 fuel economy standards. On February 27, 2017, the first day of truck operation, the operator of the truck—Eco Truck Co., Ltd. (Kadoma City, Osaka Prefecture)—held a launch ceremony sponsored by the Kinki Smart Eco-Logi Council.*4

In addition to adopting natural gas trucks, we will continue to promote a range of efforts to reduce environmental impact, such as by further modal shifts as well as reducing waste from logistic materials.

New natural gas heavy-duty truck

*3 New natural gas heavy-duty truck manufactured by Isuzu Motors Limited
*4 Kinki Smart Eco-Logi Council
A council led by the Kinki District Transport Bureau under the Ministry of Land, Infrastructure, Transport and Tourism, consisting of local governments, retailers and couriers, related organizations, and academic experts, aiming to realize a black-smoke-free society that considers both people and the environment.

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.
However, due to the decrease in vehicles compatible with biofuel and also because of vehicles that shifted to diesel as a result of discontinuation of production by biofuel suppliers, usage of biofuel in fiscal 2017 fell to 29,632 liters, 49% of the previous year.

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 2016. 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.

A total of 182 tons of stretching film was recycled in fiscal 2017 (117% compared to fiscal 2016) as a result of expanding our initiatives from sites centered in the Kansai area to the Kanto area which was made possible through the opening of a new recycling factory in Saitama Prefecture by Nozoe. We plan to further expand this scheme to the North Kanto and Chubu areas in fiscal 2018. We will 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 1,107 tons per year.

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.