As a public entity of society, Panasonic has established as part of its management philosophy that it will contribute to the advancement of world culture by working to improve the quality of life of society through the products that it produces and sells. Since 2005, the company has been keenly aware of the necessity of activities relating to business continuity—one of the company's duties to society. The company thus engages in business continuity management (BCM), whose goal is to prevent a halt to the supply of products or the provision of services when contingencies such as disasters have occurred, or, in the rare event that service has halted, to restart operations as quickly as possible.
Specifically, if disasters or other incidents were to occur within our supply chain, they would impact the production or sales of our group companies. In the case of B2B, this impact would also affect the production and sales of companies to which we deliver. This is why Panasonic believes it is critical to have BCM that includes our supply chain.
For this reason, we have conducted a hazard survey of various risks posed by natural disasters in countries around the world—earthquakes, floods, tropical depressions, tsunamis, naturally occurring fires, landslides, tornadoes, and volcanic eruptions. We have also shared these findings with each of the four Companies and have put priority-ranked measures in place, both within our own group and in our supply chain. We also work hard to obtain information on disasters and incidents and to respond swiftly in real time, both in order to confirm the safety of our employees and to provide uninterrupted supply to customer companies.
Forecasts indicate a high probability of a major earthquake in Japan, directly under the Tokyo metropolitan area or in the Nankai Trough, within the next 30 years. In response to these predictions, Panasonic has established a cross-Company task force, which is promoting earthquake resistance and disaster responses, based on the latest government damage predictions. The task force conducts annual groupwide disaster-preparedness training drills. It has established emergency response headquarters at every level of the group, within the four Companies, and within business divisions. These headquarters are intended to maintain and improve Panasonic's initial response capabilities—including confirmation of the safety of employees and reporting among different emergency response headquarters on the degree of damage.
In terms of procurement activities, we also manage the securing of replacement sourcing and the building up of inventory for emergencies, based on evaluations of the criticality and interchangeability of procured parts.
Concerning fires, the task force conducts periodic fire risk assessments, independent fire prevention checks, and fire prevention audits and strives to prevent similar accidents from occurring again by sharing case studies of dealing with fire-related accidents.