Panasonic endorsed the TCFD recommendations*1 in May 2019. As we recognize risks and opportunities concerning climate change as a critical management issue, we identify our business risks and opportunities and verify business resilience and strategy by thoroughly analyzing the scenarios, considering the TCFD's recommendation. We also disclose information on thematic areas recommended by TCFD, i.e. 'governance', 'strategy', 'risk management', and 'indices and targets', assuming future engagement with investors.

*1 TCFD: The task force was set up by the Financial Stability Board (FSB) in response to a request by the G20 Finance Ministers and Central Bank Governors. TCFD published its recommendations in 2017.

Governance

Our system to promote Panasonic Environmental Sustainability Management is headed by board of directors, so that information on environmental sustainability management from all of the group companies are reported to the board of directors. Also, the progress and results of activities for the key environmental targets we promised to society to achieve under the Green Plan 2021, as well as Environment Vision 2050, are examined and determined on the directions, issues, and particularly key measures in the Group Strategy Meeting where Panasonic president, presidents of group companies, and senior managers participate. In fiscal 2017, the Environmental Compliance Administrators (ECA) Meeting (held twice a year) was set up. Senior managers in charge of environmental affairs and persons in charge of environmental affairs in Companies participated in the ECA meeting and make decisions speedily on corporate-wide environmental management.
In addition, examples of past good practices, challenges in implementation, and approaches to mid-term to long-term targets that respective Company and Regional Headquarters have are shared and discussed at the Global Environmental Working Committee Meeting, held twice a year, which consists of managers and persons in charge of environmental affairs in Companies and Regional Headquarters, seeking to enhance the level of corporate-wide environmental sustainability management through the PDCA management cycle. 

Strategy

We have identified risks and opportunities in the business areas of home appliances, housing equipment, and automotive that are deemed to be affected by climate change. The identified risks are categorized into those related to transition to a low-carbon economy and others related to physical changes caused by climate change, and then discussed by the category. Opportunities are also being investigated to create new businesses mainly in the areas of business operation, products, and services.
In addition, towards realization of the Environment Vision 2050, we analyzed the impact of climate change on our business based on the external scenarios, discussed the measures, and verified the business resilience in our strategy.

Climate change risks (typical examples)

Type

Scope

Risk Description

Transition risk

Home appliances business

If product design does not meet the requirements of regulation because of enhanced requirements for energy efficiency in the regulations, sales opportunities may be lost.

Physical risks

Manufacturing

In the case of our production sites and/or supply chain operations are damaged from extreme weather, such as flooding, it may affect product sales and/or require a large investment to recover the facilities.

Climate change opportunities (typical examples)

Type

Scope

Opportunity Description

Business management

Manufacturing and renewable energy

- Install energy management system in factory production and promote to use renewable energy.
- Advance development of fuel cell technology to generate power from hydrogen and supply hydrogen electrolytically generated from water, using renewable energy to forklifts equipped with fuel cells.

Products and services

Housing equipment business

As the government subsidy system for purchase of energy-efficient houses has been introduced, work focusing on development, sales, and dissemination of energy-efficient houses, collaborating with other companies to create better ideas, products and services.

Automotive business

As the number of electric vehicles is increasing because the regulations for engine-mounted vehicles have been more stringent, expand high-performance automotive battery business, collaborating with other companies.

Scenario analysis overview

Scenario

Situations

Potential influence on the group

2°C Scenario

More stringent regulations: Introduction of carbon pricing

Minor effects on our businesses, because we have been working on reduction of CO2 emissions from products and production through taking various measures, including enhancing the energy-efficiency of existing products, creating new energy-efficient products, and rolling out zero-CO2 factories.

More stringent: Changes/ modifications in environmental regulations

Minor effects on our businesses, as we continuously understand up-to-date information on environmental laws and regulations in the world through close collaboration with regional headquarters and environmental departments in respective regions.

4°C Scenario

Increase of extreme weather

Minor effects on our businesses, as we continue to strengthen the risk management system, through formulating Business Continuity Plan (BCP), and Business Continuity Management (BCM) Guidelines based on the BCP.

Risk Management

As a tool to continuously reduce environmental risks, Panasonic is working to establish Company-specific Environmental Risk Management Systems, in accordance with the basic risk management policy for all Companies. The management policy includes (1) identification of environmental risks and group-wide risk management each year, and (2) ensuring quick responses to reported environmental risks.
In addition, the Global & Group (referred to as G&G, hereinafter) Risk Management Committee examines and discusses those major risks that require taking up as corporate risks from a corporate-wide points of view. The G&G Risk Management Committee also monitors progress of the measures as a means to improve and strengthen Group-wide risk management. In fiscal 2021 we listed natural disasters (earthquakes, flood damages) as one of our major risks.

Metrics and Targets

We announced the Environment Vision 2050, placing "energy" on the axis, and set up the Green Plan 2021 towards realizing Environment Vision 2050 with short-term targets based on the amount of energy as metrics.
In addition to these energy indices, we also set the medium- and long-term targets for the reduction of Green House Gas (GHG) emissions. These targets were accredited as Science Based Targets (SBTs)*1 in October 2017.

*1 SBT: an abbreviation of Science Based Target. It is a target to reduce GHG emissions in consistent with scientific knowledge toward the goals to limit the increase of global temperature to less than 2°C above pre-industrial levels.
Environmental Action Plan "Green Plan 2021" for more details on indicators for energy.

GHG emissions reduction targets (SBT accreditation)

2030

2050

Emissions from business activities (Scope 1 and 2)

Reduce by 30%
(compared to FY2014)

Zero

Emissions from use of our products (Scope 3)

Reduce by 30%
(compared to FY2014)

-