Overview of Environmental Impact from Business Operation

In order to mainly manufacture and market electrical and electronic products, Panasonic consumes petroleum and electricity as energy sources and resources as raw materials of parts and components. As a result, we emit CO2 and wastes into the environment. This diagram maps the environmental impact from our business operation from a procurement stage to recycling activities. Also, GHG throughout the entire supply chain is classified into Scope 1, Scope 2, and Scope 3 and assessed according to the GHG Protocol, the international calculation standard.

Overview of Environmental Impact from Business Operation

Production: 246 manufacturing sites
Logistics: Logistics stage of procurement, production, marketing and waste by partner companies and Panasonic.
Product use: Lifetime power consumption (a) of major products*8 with large amounts of energy use and CO2 emissions (b) associated therewith.
a = Annual power consumption of a model sold*9 x Sales quantity x product life*10
b = Annual power consumption of a model sold*9 x Sales quantity x product life*10 x CO2 emission factor*11
Recycling: Recycling of products means to use by oneself or to make into a state available for sale or free of charge the components and materials of a separated product.
*1 Figures from photovoltaic, wind, and biomass sources. Heat pumps not included.
*2 Target substances include all substances in the Panasonic Group Chemical Substances Management Rank Guidelines (For Factories).
*3 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 for electricity purchased in Japan (kg-CO2/kWh) is fixed at 0.410. 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.
*4 Release amount: Includes emissions to air, public water areas, and soil.
Transfer amount: Includes transfer as waste and discharge into the sewage system. Recycling that is free of charge or recycling where Panasonic pays a fee for treatment under the Waste Management and Public Cleaning Law is included in "Transfer." (Different from the transferred amount reported under the PRTR Law.)
*5 Intra-region outside Japan not included.
*6 Figures for Japan.
*7 Air conditioners, TVs, refrigerators/freezers, washing machines/clothes dryers, and PCs.
*8 Household air conditioners, commercial air conditioners, fluorescent lamps, LED lamps, household refrigerators, commercial refrigerators, LCD TVs, washing/drying machines, fully-automatic washing machines, clothes dryers, dish washer and dryers, IH cooking heaters, EcoCute, bathroom ventilator-dryers, humidifiers, dehumidifiers, air purifiers, extractor fans, vending machines, electronic rice cookers, microwave ovens, warm-water washing toilets, clothing irons, hair dryers, under-rug heaters, vacuum cleaners, electric thermal pots, extractor hoods, telephones, security cameras, projectors, production modulars etc.
*9 For each product category, the model that was sold in the largest quantity in the region was selected.
*10 Number of years during which spare parts for the product are available (defined by Panasonic).
*11 Regional CO2 emission factors (kg-CO2/kWh) used: 0.410 (Japan); 0.487 (Europe); 0.579 (NorthAmerica); 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).

GHGs from the Whole Supply Chain (by Scope)

Category Emissions (10,000 tons)
FY2018 FY2019
Scope 1*12 46 41
Scope 2*13 195 192
Scope 3*14 1. Purchased goods and services 1,294 1,395
2. Capital goods 112 86
3. Fuel- and energy-related activities 13 13
4. Upstream transportation and distribution 94.4 95.0
5. Waste generated in operations 1.8 1.8
6. Business travel 2.6*15 2.8*15
7. Employee commuting 3.6*15 3.1*15
8. Upstream leased assets 0.8*15 2.0*15
9. Downstream transportation and distribution 2.1*15 2.0*15
10. Processing of sold products - -
11. Use of sold products 6,449 5,992
12. End-of-life treatment of sold products 127 125
13. Downstream leased assets - -
14. Franchises - -
15. Investments - -

*12 Direct emissions from facilities owned and controlled by Panasonic (e.g. emissions from use of town gas or heavy fuel oil).
*13 Emissions from production of energy consumed at facilities owned and controlled by Panasonic.
*14 Other indirect emissions, excluding Scope 1 and Scope 2.
*15 Figures for Japan.

Environmental Accounting

Panasonic globally collects data on its environmental conservation costs and economic benefits obtained through its environmental activities in relation to generated/controlled environmental impact. This data is internally utilized as basic information for our continuing environmental sustainability management.

Environmental Accounting for Fiscal 2019

Environmental conservation in factories
Investments*16 3,098 million yen
Expenses*16*17 75 million yen
Economic benefit 1,444 million yen

*16 Includes all investments relating to environmental conservation. The difference or appropriate portions (divided proportionally) are not calculated.
*17 Expenses include a cost of capital investment depreciation. For example, if latest energy-saving facilities were installed, the value includes depreciation for the first year but not for the second year and later.

Environmental Conservation Benefits for Fiscal 2019 (in physical terms)

Categories Emission reduction Reference indicator: environmental impact
Fiscal 2018 Fiscal 2019
CO2 emissions from production activities 0.02 million tons 2.28 million tons 2.23 million tons
Human Environmental Impact 4 thousand counts 522 thousand counts 538 thousand counts
Landfill of waste 0.0 thousand tons 3.1 thousand tons 3.1 thousand tons
Water consumption 1.48 million m3 25.84 million m3 24.69 million m3

Fiscal 2019 data on the reduced amount of electricity and effect of reduced electricity costs through our energy-saving products are as shown in the chart below.

Economic Effects for Customers for Fiscal 2019

Electricity cost reduction from product usage (global)
Reduced amount of electricity*18 77.6 billion kWh
Reduced electricity costs*19 1,622 billion yen

*18 Calculated under the same conditions as when determining the size of contribution in reducing CO2 emissions through energy-saving products.
*19 Electricity costs were set for each region based on IEA Statistics.

Panasonic is also engaged in research and development that will lead to new creation of environmental value. The R&D expenses related to environmental management were approx. 8.8 billion yen in fiscal 2019.