Reducing CO2 Emissions through Production Activities

Panasonic has been working to reduce CO2 emissions in factories with the aim to contribute to climate change mitigation, and reinforce our environmental management, such as by improving production efficiency in factories and reducing energy costs.

Since fiscal 2011, we have been using our unique indicator, the size of contribution in reducing CO2 emissions, to improve our energy management capabilities and reduce the CO2 emissions per basic unit, working to maximize the size of contribution in reducing CO2 emissions in production activities. In revising Green Plan 2018, our Environmental Action Plan, we changed the indicator for CO2 reductions in our production activities to “CO2 basic unit,” with the target for fiscal 2019 to exceed the fiscal 2014 level by at least 5% (more than 1% annual reduction on average).

In addition to individual efforts implemented in each factory, energy-saving and CO2 emission reduction measures including horizontal introduction of good examples across the company, specialist training, and CO2 ITAKONA initiatives*1 are promoted. We are also promoting the introduction of photovoltaic power generation to achieve our fiscal 2019 target of “at least 10,000 MWh of in-house renewable energy adoption.” Our investment in CO2 emissions reduction in fiscal 2018 was 3.5 billion yen*2.

As a result, the CO2 basic unit in fiscal 2018 reduced by 14% compared to fiscal 2014. Not only the basic unit but also the total amount of energy consumption is reducing steadily.

Furthermore, we are shifting the lighting to LED at our factories, offices, showrooms, and other buildings. We plan to complete this transition on a global scale by the end of fiscal 2019*3.

Panasonic is a member of Keidanren’s Commitment to a Low Carbon Society, a voluntary action program for global warming prevention across the entire electric and electronic industry, with the targets set aiming at 2030. Specifically, we are steadily implementing energy-saving measures in factories and offices in order to achieve the goals set by the industry in Japan, aiming improvement in energy consumption rate in factories and large offices at an annual rate of 1% on average towards 2030.

*1 ITAKONA is a term unique to Panasonic which refers to a process by which we review stages prior to production to study raw materials to ensure waste is minimized and quality is maintained. We apply a similar review process for our CO2 emissions reduction efforts and call these our CO2 ITAKONA initiatives. The activity is aimed at discovering energy conservation measures from a new viewpoint through continuous display of energy consumption levels (energy consumption per basic unit), and analyzing the factors that influence the variables in each basic unit.
*2 Includes all investments concerning CO2 emissions reduction. Differences or appropriate portions are not calculated.
*3 Installable sites

CO2 emissions in production activities (per basic unit compared with fiscal 2014 levels) came to 2.92 million tons in fiscal 2014 (100%), 2.48 million tons in fiscal 2015 (93%), 2.32 million tons in fiscal 2014 (93%), 2.30 million tons in fiscal 2017 (92%), and 2.28 million tons in fiscal 2018 (86%).
CO2 emissions in production activities in fiscal 2018 (by region): 0.93 million tons in Japan, 0.71 tons in China and Northeast Asia, 0.48 tons in Southeast Asia & Oceania, 0.07 tons in North America & Latin America, 0.05 tons in India, South Asia, Middle East & Africa, and 0.05 tons in Europe & CIS.
Energy consumption in production activities: 57 thousand TJ in fiscal 2014, 48 thousand TJ in fiscal 2015, 41 thousand TJ in fiscal 2016, 44 thousand TJ in fiscal 2017, and 43 thousand TJ in fiscal 2018.

*4 Calculated using the weighted average of improvement rates compared to the fiscal 2014 in CO2 emissions per basic unit, which is calculated by dividing CO2 emissions by the volume of activity closely related to CO2 emissions, including production amounts and volumes, etc. of each factory. Basic unit of fiscal 2014 was converted into an index as 100.
*5 The factors related to fuels are based on the Guidelines for Calculation of Greenhouse Gas Emissions (version 4.3.1) published by the Japanese Ministry of the Environment. The CO2 emission factor (kg-CO2/kWh) for electricity purchased in Japan in each fiscal year is fixed at 0.410 to accurately reflect efforts for CO2 emissions reduction. If the factors set for each fiscal year are used instead (0.570 for fiscal 2014, 0.554 for fiscal 2015, 0.587 for fiscal 2016, 0.512 for fiscal 2017 and 2018), total CO2 emissions will be 3.19 million tons for fiscal 2014, 2.77 million tons for fiscal 2015, 2.68 million tons for fiscal 2016, 2.50 million tons for fiscal 2017, and 2.47 million tons for fiscal 2018. The factors above are also used for electricity purchased from power producers and suppliers (PPS). The GHG Protocol factors for each country are used for electricity purchased outside Japan.

Promoting CO2 Reduction Activities in our Factories

To ensure the reduction of CO2 emissions at our factories, it is important to track the energy consumption of each factory and the effects of specific emissions reduction measures to visualize reduction effects. To date, we have introduced more than 40,000 measurement systems and Factory Energy Management System (FEMS) at all of our global manufacturing sites, This CO2 reduction was based upon promotion of the METAGEJI (Meter and Gauge)*6 initiative, which visualizes and analyzes energy consumption.

Based on this scheme, the CO2 ITAKONA initiative has been implemented since fiscal 2011. The activity is aimed at discovering energy conservation measures from a new viewpoint through continuous display of energy consumption per basic unit of production, and analyzing the factors that influence the variables in each basic unit.

Energy waste reduction measures under study to minimize energy consumption per basic unit.

In order to accelerate action under the CO2 ITAKONA initiative, we developed the SE-Navi software that displays energy and production data simultaneously and analyze energy consumption per basic unit. The "energy-saving navigation function" of this software quantitatively extracts energy loss per device as well as loss per factor, based on the automatic energy loss analysis results through CO2 ITAKONA analysis. With this function, energy-saving efforts prioritizing processes with large energy loss have been made easier .

Conventionally, energy consumption and other data had been analyzed manually by specialists in order to develop energy conservation measures. This function automatically analyzes data and enables users to consider energy conservation measures based on the energy-saving measure database. Not only did this contribute to a reduction in working time but also to the identification of energy-saving measures without the assistance of specialists.

*6 METAGEJI is a term unique to Panasonic which refers to visualizing energy consumption and implementing measurable reduction initiatives by introducing measurement instruments, such as meters and gauges.

To continuously study mechanisms for CO2 reduction, the Factory CO2 Reduction Working Group was set up in fiscal 2017 as a corporate-wide program and has continued its activities in fiscal 2018. One of the working group's activities is the exhaustive use of measuring instruments and FEMS previously introduced to bring greater results of CO2 reduction. The working group introduces and promotes advanced CO2 emissions reduction technologies and measures as model trials in order to accumulate knowledge and results for taking further CO2 reduction measures. In model plants, measurement of physical data of main processes such as temperature, humidity, and differential pressure, was added to enable multifaceted data analysis and to bring further depth to our energy saving efforts in major manufacturing process, as well as pressure difference and other aspects. In fiscal 2017, Uji factory of Automotive & Industrial Systems Company in Kyoto, analyzed differences in temperature, humidity, and differential pressure between the outside and inside of manufacturing processes using the existing FEMS, leading to change the air supply system from intake of external air to inner air circulation. As a result of this improvement, they successfully reduced the annual CO2 emissions by 80 tons. In order to enhance the mechanism and efficiency of this system, the factory focused on improving the processes that require fine temperature and humidity control to ensure product quality in fiscal 2018. They gained the prospect of reducing CO2 emissions while retaining quality by building a new algorithm into the FEMS to control the dew point and electricity consumption. Activities to assess the effects of these energy -saving measures and expand its application will take place from fiscal 2019 onwards.

Factory CO2 Reduction Working Group

Utilization of Renewable Energy

In order to reduce CO2 emissions, Panasonic actively and globally promotes the adoption of renewable energy suitable to the characteristics of the region, such as photovoltaic power generation. The large scale installation of a photovoltaic power generation system took place in China in fiscal 2018. In February 2017, Panasonic Appliances (China) Co., Ltd (PAPCN), located in the Panasonic Industrial Park in Suzhou, installed 3.5 MW photovoltaic power generation system, which is one of the largest in scale for a single manufacturing company in our Group. The photovoltaic power generation modules were set up on the rooftop of the two factory buildings and bicycle parking garages. These modules can generate renewable energy that covers approximately 20% of the total annual power demand of PAPCN, and electricity produced by the system is supplied to our other manufacturing companies in the Suzhou Industrial Park.

Photovoltaic power generation system in PAPCN

Panasonic Manufacturing (Beijing) Co., Ltd. (PMFBJ) installed 0.6 MW photovoltaic power generation system in July 2017. This system has been installed through the solution business with the Panasonic HIT™ photovoltaic modules offered by Panasonic Solution Service China Company, which delivers Panasonic product solution business in China. In addition to the production of photovoltaic modules, we offer the solution business utilizing the modules to promote the utilization of renewable energy.

Photovoltaic power generation system in PMFBJ

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

As a result of such efforts, our in-house renewable energy adoption across the entire company*7 reached 21,000 MWh*8 in fiscal 2018, and we have exceeded our target under the Green Plan 2018, our environmental action plan, revised in fiscal 2017, which was to reach 10,000 MWh in the use of in-house renewable energy by fiscal 2019.

Adoption of photovoltaic power generation system is also underway at respective sites on a global scale in addition to those mentioned above, and we aim for completion at all sites considered feasible for adoption by the end of fiscal 2021.

We will continue our efforts to achieve further reductions in CO2 emissions.

*7 Includes renewable energy utilization at non-production sites.
*8 Includes photovoltaic, wind, and biomass power but not power from heat pumps.

Approach towards the CO2 Emissions Trading Scheme in China

In China, the Emissions Trading Scheme (ETS) for more than 1,700 companies in the power industry has been conducted from December 2017. Although Panasonic is not included in the list of these companies as of April 2018, we have a lot of business sites in China. By taking advantage of our ongoing initiatives for the reduction of CO2 emissions in manufacturing, we continue to take measures for effects of the ETS on our business and our potential inclusion in the light of risks and opportunities.

Reducing the Emissions of GHGs Other than CO2 from Energy Use

GHGs other than CO2 from energy use emitted by Panasonic include hydrofluorocarbons (HFCs) used in air conditioner factories as refrigerants for products and nitrogen trifluoride (NF3) used as a cleaning gas in LCD factories. To reduce these gases, we implement a variety of measures, such as preventing leakage of refrigerants, recovering waste refrigerants, decomposing at external parties, and installing removal devices.

GHG emissions other than CO2 from energy use (CO2- equivalent; hereinafter the same) in fiscal 2018 amounted to 130,000 tons, which was 20,000 tons more than the previous fiscal year.

Emission (CO2-equivalent) of GHGs other than CO2 from energy use in production activities: 0.15 million tons in fiscal 2014, 0.10 million tons in fiscal 2015 and 2016, 0.11 million tons in fiscal 2015 and 2016, and 0.13 tons in fiscal 2018.

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

Our GHG emissions, including emissions from energy sources and other sources, reached 2.41 million tons in fiscal 2018, the breakdown being 19% for Scope 1 emissions*9 and 81% for Scope 2 emissions*9 (see Scope 3 emissions).

*9 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).

Total GHG emissions (CO2 equivalent) in production activities reached 2.41 million tons in fiscal 2018. By category, CO2 Japan: 0.93 million tons, CO2 outside Japan:1.35 million tons, HFC: 0.094 tons, PFCs: 0.009 million tons, and SF6: 0.022 million tons.
Total GHG emissions (CO2 equivalent) in production activities reached 2.41 million tons in fiscal 2018. By scope, Scope 1 emissions: 0.44 million tons and Scope 2 emissions: 1.95 million tons.