Responsible Supply Chain
Policy
At our global production sites, the Group procures raw materials, such as battery active materials, as well as a wide range of components, from processed parts to electronic devices, from suppliers in Japan and overseas. We recognize that it is essential to fulfill our corporate social responsibility throughout the entire supply chain.
To fulfill this responsibility, we build global partnerships with our suppliers. Based on mutual trust and cooperation, we strive to enhance quality and achieve competitive pricing, thereby creating the product value required by our customers.
In addition, while complying with laws and regulations, social norms, and corporate ethics, we fulfill our social responsibilities in areas such as respect for human rights, including respect for the rights of Indigenous Peoples*, conservation and restoration of natural capital, including biodiversity, and information security. Together with our suppliers, we promote responsible procurement activities and aim to establish a sustainable supply chain with a low environmental impact.
* With regard to respect for the rights of Indigenous Peoples, we act in accordance with the principle of FPIC (Free, Prior and Informed Consent). Where our business activities may affect the lives, cultures, or rights of Indigenous Peoples, we will provide sufficient information in advance, engage in consultation, and take actions that respect their free and informed decision-making.
Details of initiatives
Compliance with CSR Guidelines
To clearly communicate its approach to CSR procurement to suppliers, the Panasonic Group formulated the Panasonic Supply Chain CSR Promotion Guidelines (hereinafter, the “CSR Promotion Guidelines”) with reference to laws and international norms such as the UN Guiding Principles on Business and Human Rights.
In line with the Panasonic Group’s activities, from fiscal 2023 the Group has started to conclude basic transaction agreements that require new suppliers to comply with the Guidelines. We have also requested that they submit a written agreement to comply with the Guidelines.
Reducing CSR Risks through collaboration with international battery industry initiative
Amid growing demands in the international community for human rights initiatives, in 2021 Panasonic Holdings joined the Responsible Business Alliance (RBA), a global organization that promotes social responsibility, and is promoting initiatives to strengthen CSR procurement in its supply chain.
As part of those initiatives, we are distributing the CSR Promotion Guidelines to all tier 1 suppliers and requesting that they not only check contracts and agreements but also conduct regular self-assessments. The assessment results are classified into three ranks, A, B, and C, in ascending order according to risk. The precondition for starting transactions with a new supplier is an evaluation of B rank or higher in the CSR assessment. In fiscal 2026, we had 351 tier 1 suppliers conduct self-assessments, and 326 companies (92.9%) were ranked A, and 25 companies (7.1%) were ranked B. For B-ranked suppliers, our Procurement Department works together with them to promote risk reduction by implementing improvement activities aimed at strengthening the CSR management system. In the event that a supplier receives a C rank, we review our transactions with them.
In fiscal 2024, we also joined the Global Battery Alliance (GBA), an international battery industry initiative with more than 150 member companies, governments, and international organizations. We will continue our efforts to collaborate with member companies and organizations toward the initiative’s goal of establishing a sustainable and responsible battery value chain by 2030.
CSR-related education and training
To realize responsible procurement activities, we believe that it is essential to educate and train our personnel who are in charge of procurement and who come into contact with our suppliers on an ongoing basis. There are CSR Level 1 and CSR Level 2 systems according to the degree of proficiency in CSR, with 4% of the personnel acquiring Level 1 and 100% acquiring Level 2 in fiscal 2026. We promote education and training by creating an annual course plan and encouraging procurement personnel to acquire Level 2 or higher. We are also conducting e-learning sessions for all domestic employees to promote their understanding of CSR compliance and prevention of legal violations in purchasing operations.
Support for suppliers
As stipulated in our regulations, we conduct an audit before commencing a new transaction with a material supplier. Based on the audit results, if necessary, we provide support that will lead to improvements in, for example, the management level of our suppliers with regard to the control methods for processes, chemical substances and health and safety. We also hold a Partners’ Meeting once a year to further strengthen cooperative relationships with suppliers by understanding our management policy. In fiscal 2026, 412 people from 217 companies participated.
Human rights due diligence initiatives
With regard to its suppliers, the Panasonic Group performs risk mapping based on the risk indicators of international organizations and the impact the risks would have on business. We began on-site CSR audits with regard to our suppliers that we have identified as “high risk” in cooperation with an external organization, which include items related to human rights, labour, health and safety, since fiscal 2024. In fiscal 2025 we began conducting our own audits on an ongoing basis. In fiscal 2026, we conducted on-site CSR audits of 42 suppliers in Japan and overseas. Going forward, we will promote human rights due diligence, including the identification and countermeasures of supply chain risks, by conducting on-site CSR audits.
Integrated Report
The Integrated Report is intended to help our various stakeholders deepen their understanding of our company by disseminating financial and non-financial information, including details of the management strategy, performance and financial status, and environmental, social and governance (ESG) initiatives.
