Green Logistics

We have overhauled our sales and logistics structure in Japan, consolidating logistics in facilities located close to major ports that service the eastern and western regions of Japan. In particular, our West Japan Global Logistics Center in Amagasaki partnered with chartering brokers to create a round-trip^*1 program for shipping cargo, reducing CO₂ emissions while curtailing costs. We increased the matching rate of import/export cargo by 10% compared to fiscal 2011, and cut our CO₂ emissions by 14% (76 tons) year-on-year in fiscal 2012. We have also developed a green transportation network, which consists of six large first-in-Japan CNG^*2- powered vehicles, a shift to railroad transportation for long distance shipping, and highly efficient transportation through an automated delivery system. In addition, we are working on making eco-conscious sites, installing approx. 12,000 LED lights and a 50 kW photovoltaic power generation system. As a result of these initiatives, we were recommended by the city of Amagasaki, and we received the Minister of the Environment Prize for the 1st Award of the Model Initiatives Environment Measures in January 2012 in Japan.

• *1 Method of reusing containers used in import for export without returning them to the shipping company yard.
• *2 CNG: Compressed natural gas.

Our domestic railroad freight transportation in fiscal 2012 totaled 17,813 five-ton containers, and 9,561 tons of CO₂ emissions were reduced through transportation modal shift. In addition, as a new initiative in fiscal 2012, we established a modal shift promotion consortium in collaboration with our logistics partners, and expanded our railroad transportation by an equivalent of 2,077 five-ton containers.

Outside Japan, we are also promoting river and marine transportation, which release less CO₂ compared to truck transport. For example, in Brazil, for long-distance transport of goods from Manaus in the inland to the southern city of Sao Paolo, we grew our year-on-year use of river and marine transportation over the same route by 20% in fiscal 2012, resulting in a 7% reduction in CO₂ emissions.

• *3 Switch from truck and air transport to railroad and sea vessel transport that has less environmental impact.

Panasonic transforms waste cooking oil into biodiesel fuel and utilizes it for vehicles used in its production, procurement, and marketing activities. We started joint transportation with other companies in fiscal 2010 in the Tokai and Tokyo metropolitan areas, where the vehicles use 100% biodiesel fuel. , Through expansion of covered products and delivery routes, the amount of biodiesel fuel used increased by 81% in fiscal 2012 compared with fiscal 2011. In addition to reducing CO₂ emissions, use of biodiesel fuel save costs in conjunction with round-trip transportation.