Green Logistics

Panasonic has set the target of reducing its CO₂ emissions by 46% by fiscal 2019 (from fiscal 2006 level) and a midterm goal of reducing its CO₂ emissions per basic unit^*1 by at least 1% year-on-year for both international and domestic transportation through activities in five major initiatives. In fiscal 2011, our global CO₂ emissions from logistics activities came to 0.87 million tons, of which international transportation accounted for 50% and domestic transportation accounted for 20%. Global CO₂ emissions per basic unit from international and domestic transportation decreased by 2% (compared to the fiscal 2010 level) due to modal shift activities. In fiscal 2012, we plan to expand our ECO-VC^*2 Activity to align negative environmental impacts with cost rationalization, as well as share more results globally.

• *1 CO₂ emissions per transportation weight.
• *2 VC: Value Creation.

Panasonic has been fostering transportation by rail, because CO₂ emissions from rail transportation represent one-seventh^* that from transportation by truck. The amount of Panasonic’s domestic railroad freight transportation in fiscal 2011 totaled 21,221 five-ton containers and CO₂ emissions were reduced by 13,756 tons. The reduction amount increased by 56% year on year, as a result of fostering joint transportation with companies in other industries using four proprietary containers and also increasing the frequency of regular round-trip transportation to make better use of large containers in cooperation with transporting partners. In fiscal 2010, the railroad transportation amount reached 25,845 thousand ton-kilometers and Panasonic was approved to use the Eco Rail Mark in July 2010. We are also promoting transportation by rail outside Japan. In the past, our products manufactured in Asia and China were transported by ship to Europe and then delivered to countries in Central Asia through inland routes by truck. However, following the improvement of various conditions, including those related to customs clearance, we started using the trans– Chinese railway to achieve the shortest distance transportation of our products from production centers to the market, thereby also meeting the challenge concerning the long lead times. Regarding the shipment of LCD TVs manufactured in Malaysia, we reduced CO₂ emissions per container by 85% and the lead time by half.

• * Comparison of CO₂ emission factors per ton-kilometer.

As an initiative to reduce CO₂ emissions, Panasonic has been using eco cars for its company vehicles in Japan since fiscal 2003, and also sets the same or stricter criteria for eco cars compared with official governmental vehicles.

Panasonic is using biodiesel fuel made from waste cooking oil for vehicles used in its production, procurement, and marketing activities. In fiscal 2010, we increased the use of biodiesel fuel to 100% in the Tokai and Tokyo metropolitan areas and started using it for joint transportation with other companies. The use of biodiesel fuel helps us reduce our CO₂ emissions and save costs in conjunction with round-trip transportation.