Overview of Environmental Impact from Business Operation

In order to mainly manufacture and market electrical and electronic products, Panasonic Group consumes petroleum and electricity as energy sources and resources as raw materials of parts and components. As a result, we emit CO2 and wastes into the environment.

Overview of Environmental Impact from Business Operation

Production: 222 manufacturing sites and 75 non-manufacturing sites
Logistics: Logistics stage of procurement, production, marketing and waste by partner companies and Panasonic.
Product use: Lifetime power consumption (a) of major products*9 with large amounts of energy use and CO2 emissions (b) associated therewith.
a = Annual power consumption of a model sold*10 x Sales quantity x product life*11
b = Annual power consumption of a model sold*10 x Sales quantity x product life*11 x CO2 emission factor*12
Recycling: Recycling of products means to use by oneself or to make into a state available for sale or free of charge the components and materialsof a separated product.

*1 Figures from photovoltaic, wind, and biomass sources including the amount of renewable energy adopted to manufacturing and non-manufacturing sites of own group . Heat pumps not included.
*2 Target substances include all substances in the Panasonic Group Chemical Substances Management Rank Guidelines (For Factories).
*3 The factors related to fuels are based on “the Guidelines for Calculation of Greenhouse Gas Emissions (version 4.7)” published by the Japanese Ministry of the Environment.
The latest figures from the “IEA Emissions Factors 2023” issued by the International Energy Agency (IEA) is used for the CO2 emission factors for electricity purchased from different countries use.
*4 Release amount: Includes emissions to air, public water areas, and soil.
Transfer amount: Includes transfer as waste and discharge into the sewage system. Recycling that is free of charge or recycling where we pay a fee for treatment under the Waste Management and Public Cleaning Law is included in "Transfer." (Different from the transferred amount reported under the PRTR Law.)
*5 Intra-region outside Japan not included.
*6 Figures for Japan.
*7 Air conditioners, TVs, refrigerators/freezers, and washing machines/clothes dryers
*8 As for personal computers, PC 3R Promotion Association collects and recycles PCs under the joint scheme with member companies.
*9 Household air conditioners, commercial air conditioners, lighting equipments and lamps, household refrigerators, commercial refrigerators, LCD TVs, washing and drying machines, fully-automatic washing machines, dish washer and dryers, IH cooking heaters, EcoCute, bathroom ventilation dryers, humidifiers, dehumidifiers, air purifiers, ventilation fans, electric fans, electronic rice cookers, microwave ovens, electric bidet toilet seats, irons, hair dryers, electric showers, electric water heaters, under-rug heaters, vacuum cleaners, electric water boilers, range hoods, projectors, mounting machines, Digital Signage, Welding Machine, Welding Robot, Component Insertion Machine, Screen Printer, Mobile Computer, etc.
*10 For each product category, the model that was sold in the largest quantity in the region was selected.
*11 Number of years during which spare parts for the product are available (defined by the Panasonic Group).
*12 Regional CO2 emission factors (kg-CO2/kWh) used: 0.463 (Japan); 0.277 (Europe); 0.368 (North America); 0.610 (China & Northeast Asia); 0.713 (India & South Asia); 0.382 (Southeast Asia & Oceania); 0.271 (Latin America); and 0.612 (Middle East & Africa).
*13 Hussmann Parent Inc. and its consolidated subsidiaries not included.

GHGs from the Whole Supply Chain (by Scope)

We calculate our GHG emissions across the supply chain for Scopes 1, 2, and 3, respectively, according to the GHG Protocol and the guidelines provided by the Ministry of the Environment.

Our CO2 emissions in fiscal 2024 Scopes 1 to 3 were reduced by 2.69 million tons compared with those in fiscal 2023.
This was affected by the increase of CO2 emissions in some categories, while approximately 0.32 mission tons of the CO2 emissions in the Scopes 1 and 2 were reduced through implementation of steady activities for energy conservation at each factory, and 4 million tons of the CO2 emissions in the category 11 was reduced due to decrease of the number of sales units.

We continue to disclose our emission data for transparency.

Category Emissions (kt)
FY2023 FY2024
Scope 1*14 406 316
Scope 2*15 1,433 1,207
Scope 3*16 1. Purchased goods and services 21,543 21,954
2. Capital goods 880 1,546
3. Fuel- and energy-related activities 212 243
4. Upstream transportation and distribution 887 741
5. Waste generated in operations 0.1 1
6. Business travel 32 31
7. Employee commuting 111 107
8. Upstream leased assets *17 -*17
9. Downstream transportation and distribution 61*18 146
10. Processing of sold products 153 234
11. Use of sold products 95,029 ★91,027*19
12. End-of-life treatment of sold products 7,537 7,860*20
13. Downstream leased assets - -
14. Franchises - -
15. Investments 928 1,108

total

127,371 124,995

Scope 1-3 total

129,209 126,518

*14 Direct emissions from facilities owned and controlled by the Panasonic Group (e.g., emissions from use of town gas or heavy fuel oil).
*15 Emissions from production of energy consumed at facilities owned and controlled by the Panasonic Group.
*16 Other indirect emissions, excluding Scope 1 and Scope 2.
*17 Including Scope 1 and Scope 2 from FY2023
*18 Figures for Japan
*19 8,838 (kt) are due to the influence of CFC
*20 6,058 (kt) are due to the influence of CFC

Environmental Accounting

Panasonic Group globally collects data on its environmental conservation costs and economic benefits obtained through its environmental activities in relation to generated/controlled environmental impact. This data is internally utilized as basic information for our continuing environmental sustainability management.

Environmental Accounting for Fiscal 2024

Environmental conservation in factories
Investments*21 3,791 million yen
Expenses*21*22 128 million yen
Economic benefit*23 907 million yen

*21 Includes all investments relating to environmental conservation. The difference or appropriate portions (divided proportionally) are not calculated.
*22 Expenses include a cost of capital investment depreciation. For example, if latest energy-saving facilities were installed, the value includes depreciation for the first year but not for the second year and later.
*23 The economic benefit represent the cost of energy savings achieved through energy conservation, which translates into cost reductions that contribute to climate change mitigation.

Environmental Conservation Benefits for Fiscal 2024 (in physical terms)

Categories Emission reduction Reference indicator: environmental impact
Fiscal 2023 Fiscal 2024
CO2 emissions from production activities 260 kt 1.63 Mt 1.37 Mt
Human Environmental Impact 45 kcount 431 kcount 386 kcount
Landfill of waste 0.8 kt 2.3 kt 1.5 kt
Water consumption 1.47 million m3 15.27 million m3 13.87 million m3

Fiscal 2024 data on the reduced amount of electricity and effect of reduced electricity costs through our energy-saving products are as shown in the chart below.

Economic Effects for Customers for Fiscal 2024

Electricity cost reduction from product usage (global)
Reduced amount of electricity*24 46.7 TWh
Reduced electricity costs*25 1256.7 billion yen

*24 Calculated under the same conditions as when determining the size of contribution in reducing CO2 emissions through energy-saving products
*25 Electricity costs were set for each region based on IEA Statistics.

Panasonic Group published a new vision "Panasonic GREEN IMPACT" in January 2022, with the intention to realize the vision linking with our business activities. Therefore, approximately 490 billion yen for the group-wide total R&D expenses in fiscal 2024 will be invested mostly for promoting "Panasonic GREEN IMPACT".