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: 242 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 4.7)" published by the Japanese Ministry of the Environment.
The latest figures from the "CO2 Emissions from Fuel Combustion 2019 issued by the International Energy Agency (IEA) is used for the CO2 emission factors for electricity purchased from different countries use.
*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 As for personal computers, PC 3R Promotion Association (one corporation) collects and recycles PCs under the joint scheme with member companies.
*9 Household air conditioners, commercial air conditioners, lighting equipments and lamps, household refrigerators, commercial refrigerators, LCD TVs, washing and drying machines, fully-automatic washing machines, dish washer and dryers, IH cooking heaters, EcoCute, bathroom ventilation dryers, humidifiers, dehumidifiers, air purifiers, ventilation fans, electric fans, electronic rice cookers, microwave ovens, electric bidet toilet seats, irons, hair dryers, electric showers, electric water heaters, under-rug heaters, vacuum cleaners, electric water boilers, range hoods, projectors, mounting machines, etc.
*10 For each product category, the model that was sold in the largest quantity in the region was selected.
*11 Number of years during which spare parts for the product are available (defined by Panasonic).
*12 Regional CO2 emission factors (kg-CO2/kWh) used: 0.522 (Japan); 0.331 (Europe); 0.421 (NorthAmerica); 0.623 (China & Northeast Asia); 0.718 (India & South Asia); 0.395 (Southeast Asia & Oceania); 0.297 (Latin America); and 0.709 (Middle East & Africa).
*13 Hussmann Parent Inc. and its consolidated subsidiaries not included.

GHGs from the Whole Supply Chain (by Scope)

Category Emissions(10 kt)
FY2020 FY2021
Scope 1*14 39 33
Scope 2*15 193 187
Scope 3*16 1. Purchased goods and services 1,805 1,656
2. Capital goods 72 64
3. Fuel- and energy-related activities 24 23
4. Upstream transportation and distribution 86.6 81.5
5. Waste generated in operations 1.6 1.5
6. Business travel 2.2*17 1.2*17
7. Employee commuting 3.0*17 2.0*17
8. Upstream leased assets 1.5*17 2.4*17
9. Downstream transportation and distribution 2.0*17 1.7*17
10. Processing of sold products - -
11. Use of sold products 8,313 8,593*18
12. End-of-life treatment of sold products 118 105
13. Downstream leased assets - -
14. Franchises - -
15. Investments - -

total

10,429

10,531

*14 Direct emissions from facilities owned and controlled by Panasonic (e.g. emissions from use of town gas or heavy fuel oil).
*15 Emissions from production of energy consumed at facilities owned and controlled by Panasonic.
*16 Other indirect emissions, excluding Scope 1 and Scope 2.
*17 Figures for Japan.
*18 The number of lighting products sold overseas to be used for calculation of CO2 emissions during use of the lighting products was used to be calculated with the sales amount of the lighting products overseas and the average unit selling price. However, the number of lighting products actually sold overseas has been used for the calculation to improve its accuracy since FY2021. When calculated with the previous method, the total CO2 emissions is 8,013 (10kt).

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 2021

Environmental conservation in factories
Investments*19 2,439 million yen
Expenses*19*20 139 million yen
Economic benefit 1,522 million yen

*19 Includes all investments relating to environmental conservation. The difference or appropriate portions (divided proportionally) are not calculated.
*20 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 2021 (in physical terms)

Categories Emission reduction Reference indicator: environmental impact
Fiscal 2020 Fiscal 2021
CO2 emissions from production activities 120 kt 2.23 Mt 2.11 Mt
Human Environmental Impact 36 kcount 466 kcount 430 kcount
Landfill of waste 0.0 kt 3.4 kt 3.4 kt
Water consumption 3.92 million m3 23.11 million m3 19.19 million m3

Fiscal 2020 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 2021

Electricity cost reduction from product usage (global)
Reduced amount of electricity*21 30.7 TWh
Reduced electricity costs*22 509 billion yen

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

Panasonic also has been working on research and development. The R&D expenses for leading activities related to environment (including climate change), which are implemented corporate wide, were approx. 7.4 billion yen in fiscal 2021.