In May 2019, the Panasonic Group endorsed the TCFD*¹ recommendations. Recognizing that risks and opportunities related to climate change are critical management issues, the Panasonic Group is identifying risks and opportunities based on the recommendations and examining the resilience of its strategies through scenario analysis.

Based on the above recognition and verification results, Panasonic Energy will deepen its consideration of risks and opportunities specific to our business and proactively disclose the required information. As recommended by the TCFD, we will disclose information on ‘governance’, ‘strategy’, ‘risk management’, and ‘indices and targets’ to strengthen our dialogue with our stakeholders.

At Panasonic Energy, the Board of Directors oversees risks and opportunities related to climate change based on reports and recommendations from the ESG Committee at least once a year.

Chaired by the president, the Committee includes all executive officers responsible for divisions related to climate change, such as business divisions, human resources, and legal affairs, as well as divisions in charge of the environment. The Committee formulates overall plans, monitors progress, and evaluates the status of achievement in a cross-organizational framework.
The Committee formulates overall plans, monitors progress, and evaluates the status of achievement in a cross-organizational framework.

In parallel, we analyze risks and opportunities related to climate change and, based on the results, confirm the relevance of our business strategy from a resilience perspective.

In addition, to strengthen the commitment of our executive officers, performance-based remuneration (which is an incentive linked to short term and mid-long term business results) is structured to reflect climate change-related results as well as financial indicators.

To society transition to a low-carbon economy, we have set the following targets.

Panasonic Energy has established an Enterprise Risk Management Committee (“ERM Committee”) to manage various risks, including those related to climate change, in an integrated manner.

Based on the PDCA cycle of risk management, the ERM Committee reports regularly to the Management Meeting and the Board of Directors on essential risks and the progress of countermeasures. Each year, the Committee identifies risk items in terms of “impact” and “possibility of occurrence” while also defining “operational risk” as events that have the potential to affect business activities and pose an operational threat. In fiscal 2025, we again identified earthquakes and tsunamis as operational risks and managed progress on measures to deal with flooding and other disasters.

Regarding the transitional risks, such as an increase in the cost of compliance with environmental regulations, the relevant departments closely monitor trends and take appropriate measures while the Management Meeting continues to manage the progress. In compliance with the EU Battery Regulations in particular, we thoroughly manage risks to our business activities by managing the progress of measures and raising issues at quarterly meetings that include the relevant departments and management.

In addition to disclosing actual GHG emissions (Scope 1, 2, 3), we have set a goal of achieving all of Net Zero Factories* by fiscal 2029 and are working hard to reduce emissions.

We have also set targets for GHG emissions outside of our own company, including the avoided CO2 emissions that we contribute to society and the reduction of the carbon footprint of our products, including those upstream in our supply chain.

Furthermore, we have established our own “Environmental Contribution Index” (an index that indicates the ratio of avoided CO2 emissions to the actual CO2 emissions from our battery production), which is a composite of the above indicators. We are working to improve this to 10 in fiscal 2031. For more details of our efforts to set and achieve our goals, please refer to the Environmental page of the sustainability website.