Reducing the Amount of the Energy Used and CO2 Emissions in Production Activities

Panasonic promote making its factories zero-CO2 emission factories as a part of efforts towards the Environment Vision 2050. Zero-CO2 emission factories contribute not only as measures for climate change, but also to reinforcement of environmental sustainability management through energy-saving measures in factories, reduction in CO2 emissions, productivity improvement, and reduction in energy costs. We formulated an "Environmental Action Plan, Green Plan 2021" for the current medium term with a focus on 'energy' as one of the priority issues. Based on the plan, all our factories are working to 'promote zero-CO2 emission model factories', 'increase the use of renewable energy', and 'promote production with energy minimum."

As a part of efforts to 'promote zero-CO2 emission model factories' in fiscal 2020, Panasonic Centroamericana S.A. (PCA) in Costa Rica realized zero CO2 emissions.*1

In the area of 'increasing the use of renewable energy', the amount of renewable energy adopted at our sites*2 in fiscal 2020 marked 32 thousand MWh and this figure shows steadily increasing transformation of the use of power towards the fiscal 2022 target of renewable energy generated at our sites of 40 thousand MWh.

As a part of efforts to 'promote production with energy minimum', each factory takes its own initiatives on the promotion. The fiscal 2020 investment to reduce the amount of energy used and CO2 emissions by the efforts was 2.6 billion yen.*3

These efforts in fiscal 2020 resulted in 18.5 thousand terajoules (TJ)*4 of the energy used in factories, which was reduced compared with the amount in fiscal 2019.

Until the completion of the "Environmental Action Plan Green Plan 2018", we used all of the fixed CO2 emission factors for calculating the amount of purchased electricity in each fiscal year. At formulating our Green Plan 2021, we replaced this fixed factors with factors by country and by fiscal year*5 and recalculated the CO2 emissions, including those in previous years. With the calculation by the new factors, the CO2 emissions in fiscal 2020 was 2.23 million tons.

In August 2019, Panasonic joined 'RE100',*6 an international initiative of corporations committed to change over to 100% renewable energy to be used for electricity in their business activities. We aim to replace all of our purchasing electricity across the world to 100% renewables by 2050, as well as to realize manufacturing with zero CO2 emissions.

Additionally, Panasonic has participated in Keidanren's "Action Plan for Low Carbon Society", a voluntary action program to prevent global warming, collaborating all members of the whole electrical and electronic industry, with targets set for 2030. Specifically, we are steadily implementing energy-saving measures at our factories and offices to achieve the goals set by the industry in Japan, aiming to 'improve the energy consumption per basic unit at our factories and large offices at an annual rate of 1% on average towards 2030'.

*1 See relevant topics
*2 The total amount of the adoption is subject to the amount of photovoltaic energy, wind power, and biomass energy including the amount of the renewable energy adopted at our non-manufacturing sites, excluding the amount of energy from heat pumps.
*3 The total amount includes all investments concerning reduction of the amount of the energy used and CO2 emissions. Note that differences or proportions of the investment are not calculated.
*4 In fiscal 2020, we reviewed the CO2 emission factor to determine the amount of the energy used (TJ) in using electricity, and replaced 9.97 GJ/ MWh of the thermal conversion factor for electricity (based on the Japanese Energy Conservation Act) with 3.6 GJ/MWh that is an energy unit. Because of the change, the amounts of the energy used in the preceding years were also recalculated with the new factors.
*5 The CO2 emission factors (kg-CO2/kWh) for purchased electricity per fiscal year are as follows: The factors by country defined in "IEA CO2 Emissions from Fuel Combustion 2017" (Book 2017) were used for FY2014 and FY2016; Book 2018 for FY2017; and Book 2019 for FY2018, FY2019, and FY2020.
*6 Press release on August 30, 2019.
Panasonic Joins RE100 Aiming for Business Operations with 100% Renewable Energy

Energy Consumption in Production Activities

Energy consumption in production activities: 20 thousand TJ in fiscal 2016, 19.4 thousand TJ in fiscal 2017, 20 thousand TJ in fiscal 2018, 19.4 thousand TJ in fiscal 2019, and 18.5 thousand TJ in fiscal 2020.

CO2 Emission in Production Activities and CO2 Emission Per Basic Unit

Changes of CO2 emissions in production activities were 3.34 million tons in FY2014, 2.56 million tons in FY2016, 2.48 million tons in FY2017, 2.4 million tons in FY2018, 2.35 million tons in FY2019, 2.23 million tons in FY2020. Changes of CO2 emission per basic unit were 100 in FY2014 as base year, 78 in FY2016, 78 in FY2017, 70 in FY2018, 68 in FY2019, 69 in FY2020.

CO2 Emission in Production Activities (by region)

CO2 emissions in production activities in fiscal 2019 (by region): 1.10 million tons in Japan, 0.62 tons in China and Northeast Asia, 0.50 tons in Southeast Asia & Oceania, 0.04 tons in North America & Latin America, 0.05 tons in India, South Asia, Middle East & Africa, and 0.04 tons in Europe & CIS.

*7 We calculated the improvement rate of the 'CO2 emissions per basic unit' versus that of fiscal 2014, which was obtained by dividing CO2 emissions by the revenue of all group companies.
*8 The CO2 emission relevant to fuels was obtained by calculating with the factors stated in the "Guidelines for Calculation of Greenhouse Gas Emissions (version 4.6)".

Promotion of Zero-CO2 Model Factories

In our regions across the world (Five regions: Japan; China & Northeast Asia; Southeast Asia, Pacific, India, South Asia, Middle East & Africa; North America & Latin America; and Europe & CIS), we set a target of realizing at least one zero-CO2 emission factory in each region. We now have six zero-CO2 emission factories across three regions.

In fiscal 2020, Panasonic Centroamericana S.A. (PCA) realized a zero-CO2 emission factory by procuring power sourced from renewable energy, and the like, in addition to installing a solar photovoltaic system.

In Japan, Panasonic Eco Technology Center (PETEC), the Panasonic Group's home appliance recycling factory, realized a zero-CO2 emission factory in fiscal 2019. In the North America & Latin America region, we realized total four zero-CO2 emission factories: three in Panasonic Brazil (PANABRAS)'s sites in San José dos Campos, Manaus, and Extrema, and one in PCA. In the Europe & CIS region, Panasonic Energy Belgium N.V. (PECBE) realized a zero-CO2 emission model factory. In addition to roll-out of the zero-CO2 emission model factory within the region, we will promote increase the number of zero-CO2 emission factories in other regions.

Promotion in Reducing the Amount of the Energy Used and CO2 Emissions in Factories

To ensure steady progress in reducing the amount of energy used and CO2 emissions in factories, it is important to visualize trend of the energy consumption of each facility in factory and the effects of the measures for specific emissions reduction. To date, we have worked on CO2 reduction by adopting more than 40,000 measurement equipment systems and Factory Energy Management System (FEMS) at all of our global manufacturing sites, promoting METAGEJI (Meter and Gauge)*9, which visualizes and analyzes energy consumption.

*9 METAGEJI is a coined word created by Panasonic which refers to visualizing energy consumption and implementing measurable reduction measures by adopting measurement instruments, such as meters and gauges.

Activities at Factories

Activities to promote to reduce the amount of energy used and CO2 emissions are being proactively continued in each factory. Several factories in such activities were awarded the Energy Conservation Grand Prize 2019. One of the awards our factories won was the ECCJ (Energy Conservation Center, Japan) Chairman's Prize in the Energy Conservation Best Practices category under the Energy Conservation Grand Prize 2019 for the following activity.

Another examples that our factories won awards were 'Best factory for Efficient Energy Management' , i.e. Chief award by Shikoku Bureau of Economy, Trade and Industry (ETI) in the award for 2019 Energy Efficient Month in Shikoku Region, and 'Climate Change Award' in 2019 Climate Change Award hosted by Tokushima prefecture.

●ECCJ Chairman’s Prize
Tsu Factory, Life Solutions Company, Panasonic Corporation 'Roll-out of Energy-Saving Practices corporate-wide including overseas factories through integration of energy-saving and Business Continuity Planning (BCP) led by the factory'

This is an example of activities conducted in Tsu Factory, which is a mother factory for wiring equipment. A range of energy-saving measures integrating with BCP have been promoted in the factory, and their best practices and expertise accumulated in the energy saving activities are rolled out to our other factories not only in Japan, but also overseas. Their cross-border collaboration with other departments and other companies, a solar photovoltaic system that was adopted in the factory as the BCP measures, and the like were highly evaluated by the ECCJ.

●'Best factory for Efficient Energy Management' (Chief award by Shikoku Bureau of ETI) and 'Climate Change Award',
Tokushima Factory, Industrial Solutions Company, Sanyo Electric Co., Ltd. The factory's activities to promote more efficient energy management and their results were highly evaluated through the energy management report submitted to the municipal body.

In fiscal 2019, Manufacturing Innovation (MI) Division won the Grand Prize of the Minister of Economy, Trade and Industry (METI Energy-Saving Category) under the Energy Conservation Grand Prize 2018 for 'a Smart EMS (Energy management system)', an automatic energy saving management system. The 'Smart EMS' was rolled out to the factory of Panasonic Energy (Wuxi) in China by MI Division and adopted at the factory. In the factory, huge amount of the energy is used for air conditioning, because in the process of manufacturing electrode plate for batteries, maintaining low humidity environment is required to ensure the product quality. However, with the Smart EMS, some 13% of reduction in the amount of the energy used in the process was realized. This is because Smart EMS's energy saving automatic control, unlike the conventional manual control at certain condition, enables control of air conditioning without excessive or loss of energy used, by optimizing the amount of energy to be used, utilizing the automatic control function with AI that follows required load fluctuation. We will continue to roll out this technology more widely to other factories across the world to achieve reducing significant amount of CO2 emissions.

Received the Energy Conservation Grand Prize
Winners with the ‘Best factory for Efficient Energy Management’ award certificate
Adoption of Smart EMS

Activities for Increasing Amount of Renewable Energy Use

In order to increase the amount of renewable energy use, Panasonic is actively promoting to adopt use of renewable energy suited to features of the region such as energy from photovoltaic cells in its sites across the globe. Representative examples of adoption of renewables in fiscal 2020 are adoption of solar photovoltaic systems in both China and Japan.

In China, we are working on adopting photovoltaic generation systems including Panasonic HIT® Photovoltaic Modules through a Panasonic third-party leasing scheme. Panasonic Industrial Devices (Qingdao) Co., Ltd. (PIDQD) adopted a 701 kW generator in April 2019. Panasonic Manufacturing (Shanghai) Co., Ltd. (PMFSH) adopted a 792 kW generator in June 2019. Further, Panasonic Potevio Mobile Communications Beijing Co., Ltd. (PMCB) adopted a 398 kW generator in September 2019, and produced 239 MWh in the second half of fiscal 2020, which supplied some 21% of the energy used in the site.

In Japan, an additional 330 kW photovoltaic system was adopted at Panasonic Eco Technology Center (PETEC), a home appliance recycling factory. Combined with the existing photovoltaic system, PETEC is now equipped with a photovoltaic power generation capability of 624 kW, which supplies some 9% of annual power consumption. Along with other energy-saving measures, including procuring electricity sourced from renewable energy and utilizing a non-fossil fuel certificate, as well as a credit to offset fossil fuel-derived CO2 emissions, PETEC has been a zero-CO2 emission factory since fiscal 2019.

Thanks to the series of efforts described above and the commencement of fullscale operations of existing photovoltaic systems in different sites, our in-house renewable energy adoption in fiscal 2020 for the entire company*10 reached 32 thousand MWh.*11 We are steadily making progress towards the 'target of generating 40 thousand MWh renewable energy across our sites'.

We are continuously promoting to adopt photovoltaic power generation system in other global sites in addition to those mentioned above. We will continue our efforts to achieve further reductions in CO2 emissions, aiming to adopt a photovoltaic power generation system at sites where the system adoption is feasible by fiscal 2021.

*10 The total amount of the adoption includes the amount of the renewable energy adopted at nonproduction sites.
*11 The total amount of the adoption is subject to the amount of photovoltaic energy, wind power, and biomass energy including the amount of the renewable energy adopted at our nonmanufacturing sites, excluding the amount of energy from heat pumps.

Photovoltaic power generation system at PIDQD
Photovoltaic power generation system at PMFSH
Photovoltaic power generation system at PMCB
Photovoltaic power generation system at PETEC

Adoption of a Photovoltaic Power Generation System in Singapore

In Singapore, a photovoltaic power generation system with an output capacity of 1.0 megawatt-peak(MWp) was adopted in Panasonic Factory Solutions Asia-Pacific (PFSAP) in September 2016. A total of 3,476 Panasonic PV module HIT® panels were installed on the rooftop of three factory buildings. At its peak, the factory's photovoltaic (PV) system is expected to power, on average, close to 20% of its entire energy consumption. Panasonic HIT® panels can generate more energy even on limited rooftop spaces due to industry’s top-level efficiency. In addition, the panels are more suited to tropical climates, since they can also maintain high power generation performance even under high temperatures. The product is manufactured by Panasonic Energy Malaysia, located in Kulim Hi-tech Park in Kedah, Malaysia.

Installation of this system is based on a leasing agreement with Sunseap, the largest clean energy provider in Southeast Asia. This is the second, of such leasing agreement in Singapore, following the installation of a 2.4 MWp a photovoltaic power generation system at Panasonic Appliances Refrigeration Devices Singapore (PAPERDSG) in October 2015 also under a leasing agreement with Sunseap. The system in PFSAP is the second of such leasing arrangement between Panasonic and Sunseap.

Photovoltaic power generation system in PFSAP

Adoption of Wind Power Generation System in Belgium

In Europe where wind power generation is advanced, a 2.0 MW wind power generation system was adopted in Panasonic Energy Belgium (PECBE) in November 2016. Under an agreement with a local power company, a wind power turbine was installed on the factory premises, which enabled covering roughly 25% of the factory's peak total demand.

Wind power generation system in PECBE

Increasing the Efficiency of Biomass Power Generation Systems in Japan

The Gunma Factory of Panasonic Eco Solutions Interior Building Products Co., Ltd. uses wood scraps and wood particles generated from manufacturing processes as fuel for its biomass boiler. Ever since the system was installed, steam generated by the biomass boiler is used in production in the factory processes, and excess steam is used to generate power. Continuous improvements have been implemented since 2011, including reducing the size of the dust collector, using inverters for fans, and reviewing the wood particle transportation route. We will promote the increase in the efficiency of boilers to make more effective use of wood scrap fuel, as well as examine expanding to other factories in the future.

Biomass power generation system in Gunma

Adoption of Biomass Boilers in the UK

In Europe, Panasonic Manufacturing UK (PMUK) newly adopted a wood biomass boiler. Conventionally, used wood pallets were shipped as waste, and the wood chips manufactured were used as fuel for biomass power generation in the community. From fiscal 2017, a wood chip production machine, a storage warehouse, and a biomass boiler were installed in the factory to produce wood chips within the factory for use as biomass boiler fuel. This has enabled reduction in the number of trucks to ship wood pallets as well as reduction in boiler gas consumption, achieving an annual reduction of CO2 emissions by 65 tons. With biomass power generation, we will aim further CO2 reduction.

Biomass boiler in PMUK

Approach towards the CO2 Emissions Trading Scheme in China

In China, an Emissions Trading Scheme (ETS) that targets at more than 1,700 companies in the power industry was implemented in December 2017. This scheme became stricter in 2019 and the trading volume is also increasing. As we have many business divisions located in China, we continue to take measures for the possible effects of the scheme on our businesses and the possibilities that Panasonic may be a target in the light of risks and opportunities, by making use of our strength in terms of reducing CO2 emissions in production activities we have conducted.

Reducing the Emissions of GHGs Other than CO2 from Energy Use

GHGs other than CO2 from energy use emitted by Panasonic include nitrogen fluoride (NF3) and sulfur hexafluoride (SF6) used as cleaning gases in LED and semiconductor factories, hydrofluorocarbons (HFCs) used in air conditioner factories as refrigerants for products. To reduce these gases, we implement a variety of measures, such as installing removal devices, preventing leakage of refrigerants, collecting and destroying refrigerants, and replacing the gas with substitute non-GHG.

GHG emissions other than CO2 from energy use (CO2- equivalent; hereinafter the same) in fiscal 2020 amounted to 100 thousand tons, which was 10 thousand tons less than the previous fiscal year.

Emissions (CO2-equivalent) of GHGs Other than CO2 from Energy Use in Production Activities *12

Emission (CO2-equivalent) of GHGs other than CO2 from energy use in production activities:  0.10 million tons in fiscal 2016, 0.11 million tons in fiscal 2017, 0.13 tons in fiscal 2018, 0.11 tons in fiscal 2019, and 0.10 tons in fiscal 2020.

*12 Hussmann Parent Inc. and its consolidated subsidiaries not included.

Breakdown of Total GHG Emissions (by gas and by scope)

Our GHG emissions, including emissions from energy sources and other sources, reached 2.32 million tons in fiscal 2020, the breakdown being 17% for Scope 1 emissions*13 and 83% for Scope 2 emissions*13 (See Scope 3 emissions).

*13 GHG emissions defined by the GHG Protocol, an international calculation standard for GHG emissions. Scope 1 emissions refer to all direct GHG emissions from facilities that are owned or controlled by the reporting entity (e.g. emissions from usage of town gas or heavy oil). Scope 2 emissions refer to GHG emissions from manufacturing of the energy that is consumed in facilities owned or controlled by the reporting entity (e.g. emissions from generation of electricity that the reporting entity purchased).

Breakdown of Total GHG Emissions (CO2-equivalent) in Production Activities (by category)

Total GHG emissions (CO2 equivalent) in production activities reached 2.32 million tons in fiscal 2020. By category, CO2 Japan: 1.03 million tons, CO2 outside Japan:1.19 million tons, HFC: 0.08 tons, PFCs: 0.006 million tons, and SF6: 0.004 million tons.

Breakdown of Total GHG Emissions (CO2-equivalent) in Production Activities (by scope)

Total GHG emissions (CO2 equivalent) in production activities reached 2.32 million tons in fiscal 2020. By scope, Scope 1 emissions: 0.39 million tons and Scope 2 emissions: 1.93 million tons.