Environment : Collaboration Across the Supply Chain

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Collaboration with Suppliers and Transportation Partners

As a company backed by a number of suppliers, we must consider the environmental impacts of our entire supply chain, and not just of our own operations. Through our coordination efforts with suppliers and transportation partners, who form an integral part of our business operations, we strive to minimize our environmental impact across the entire supply chain, focusing on the reduction of CO2 emissions, resource recycling, chemical substance management, and biodiversity conservation.

Activities for Green Procurement

We have been manufacturing products with suppliers, considering the environmental impacts based on the updated "Green Procurement Standards" since its first issuance in 1999. Aiming at establishing supply chain groups in which the suppliers agree to the Panasonic's Environmental Policy and supply products and goods to us in accordance with our Green Procurement Policy, we have requested the purchasers 'to urge the suppliers at upper stream' to involve in spreading activities to minimize our environmental impact across the entire supply chain, in addition to 'minimize the environmental impacts in the supplier's business field', and to 'share fruitful results through collaboration between the suppliers and us'.

Also, we formulated an "Environment Vision 2050" in 2017 towards "a better life" and "a sustainable global environment" compatibly, aiming for societies where residents use and live a more comfortable lifestyle. Under the vision, through the development of products, technologies, and solutions relevant to energy creation, storage, saving, and management, Panasonic will work towards creation and more efficient utilization of energy which exceeds the amount of energy used. To realize the vision, we set up a "Green Plan 2021" as an environmental action plan to address priority issues in the area of energy and resources and to continuously address ongoing issues. Under the "Green Plan 2021", we revised the "Green Procurement Standards" in September 2019 not only for Panasonic Corporation alone, but also for our business partners in our whole supply chain to collaborate more closely, in order to have a broader positive impact on societies.

In response to more stringent and expanded regulations such as EU RoHS Directive, we have been engaging in continual environmental quality assurance audits of our suppliers since 2005 to improve the management level throughout the entire supply chain. In fiscal 2021, we conducted the audits at some 1,000 suppliers and have supported their efforts to upgrade their management levels.

Estimation of Environmental Impacts in Business Activities by Suppliers

In order to assess greenhouse gas (GHG) emissions across the entire supply chain (scope 3*1), we made our original calculations based on the Greenhouse Gas Protocol, the international accounting standard for GHG emissions. Since fiscal 2012 we have conducted assessment surveys on four occasions, with the cooperation of 185 suppliers in the areas of raw materials, electrical and electronic components, and processed parts.

From fiscal 2012, we started estimating our overall GHG emissions in the upstream range by multiplying the volume of materials purchased with the resource-specific GHG emissions per basic unit based on the Input-Output Table published by the Japanese government. The estimation results based on fiscal 2020 data is 16.56 Mt, roughly 7 times the GHG emissions of our own production activities.

*1 Other indirect emissions, excluding Scope 1 (direct emissions from facilities owned and controlled by Panasonic) and Scope 2 (emissions from production of energy consumed at facilities owned and controlled by Panasonic).

Sharing Achievements through Collaboration

Since fiscal 2010, we have been implementing the ECO-VC Activity*2  Activity  with our suppliers. This program is a collaboration between Panasonic and our suppliers, aimed to both reduce environmental impact as well as reinforce product capability and achieve further rationalization for our products and our suppliers. In fiscal 2010, the target for reducing environmental impact was limited to energy saving (CO2 emission reduction). However, this was extended in fiscal 2011 to Recyclingoriented Manufacturing aiming at saving resources and using recycled materials. The geographical range of our activities has also extended. Initially centered in Japan, actions accelerated to China and other parts of Asia in fiscal 2013, and later extended to a global scale in fiscal 2015.

We have stored case examples of ECO-VC Activity in a database for broader and effective use throughout the company.
At the same time, as for outstanding activities, we provide awards in occasions such as 'ECO-VC Activity award and information exchange meeting'.

Furthermore, we formulated an “Environment Vision 2050” in 2017 to achieve 'a better life' and 'a sustainable global environment' compatibly, aiming for societies where residents use clean energy and live a more comfortable lifestyle. Under the vision, through the development of products, technologies, and solutions relevant to energy creation, storage, saving, and management, Panasonic will work towards creation and more efficient utilization of energy which exceeds the amount of energy used.

Based on the Environmental Vision 2050, we plan to implement these ECO-VC Activities, which are aimed at long-term sustainability, through energy conservation (CO2 emission reduction) and cost reduction, resources conservation and recycled materials, with renewable energy as an additional evaluation item added in fiscal 2019.

*2 ECO-VC Activity: Value Creation Activities

Environmental Achievements Made through Proposals

Items FY2017 FY2018 FY2019 FY2020 FY2021
Number of proposals 622 354 820 772 430
CO2 reductions derived from proposals 253.27 kt 58.45 kt 30.50 kt 280 kt 110 kt
Use of recycled resources derived from proposals 18.42 kt 2.67 kt 80 t 100 t 5 t
Reduction in resources used derived from proposals 20.22 kt 1.09 kt 3.03 kt 19.9 kt 323 kt

Collaboration with Environmental NGOs

For exhaustive implementation of CSR throughout our global supply chain, we are implementing activities in collaboration with overseas environmental NGOs.

In China, where we have a large number of suppliers and commitment by suppliers to environmental issues have been highly demanded in the society, we have requested our suppliers—now reaching a total of about 7,000—to use our CSR Self-Assessment Checklist since fiscal 2016. In September 2016, we held seminars on our CSR Procurement Policy and Chinese environmental regulations in Guangzhou, Dalian, and Shanghai in order to accelerate that our suppliers take actions to environmental regulations. By the end of fiscal 2019, we completed collection of the CSR Self-Assessment Checklist results from all of our existing suppliers. For those suppliers who had completed the CSR self-assessment, we have conducted on-site environmental and CSR audits at the same time in some 20 suppliers per year since fiscal 2019.
We have been working to reduce environmental load togehether with suppliers: in the auditing, we identify points to be improved and monitor until these points are actually improved.

The above efforts are being made under a collaboration with the Institute of Public & Environmental Affairs (IPE), a Chinese environmental NGO. In IPE's Suppliers Green Supply Chain responsibility (CITI Index), which has been published since 2014, Panasonic has been listed in the top raking companies every year. In fiscal 2021, Panasonic were ranked the third in the home appliances category.