Environment:Green Logistics

Reducing CO2 Emissions in 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 every year until fiscal 2013.

In fiscal 2013, our global CO2 emissions from logistics activities came to 0.87 million tons, of which international transportation was 0.41 million tons (47%), and domestic transportation within Japan was 0.15 million tons (17%). Due to modal shift activities, the year-on-year reduction rate of CO2 emissions per basic unit from international and domestic transportation was 18% (compared to the fiscal 2012 level), achieving our midterm goal. In addition, the reduction in CO2 emissions per basic unit from fiscal 2006 was 35%.

To accelerate green logistics outside Japan, we issued the Green Logistics Manual. The document covers logistics policy, CO2 emission measurement outlines, and model cases to promote and disseminate the principles of green logistics. In China, in fiscal 2013, green logistics seminars were provided to logistics operation administrators in Dalian, Shanghai, and Guangzhou to raise green logistics standards.

  • *1CO2 emissions per transportation weight.

CO2 Emissions From Logistics

Transportation Amount by Transportation Method (Japan)

Note: Former SANYO Electric is not included in the intra-region outside of Japan and international transportation.

Major Initiatives Taken for Green Logistics

Collaboration With Logistics Partners

We are working to increase transportation efficiency in collaboration with our logistics partners. In fiscal 2013, PanaHome Corporation, a group company specialized in housing, established seven ECO Centers jointly with its eight logistics partners. The ECO Centers are located among distribution centers, housing construction sites, and recycling companies across Japan, forming a logistics system with low environmental impact by efficiently transporting products and components, as well as waste.

Products and components used to be transported over long distances by multiple 4-ton trucks from the distribution center to the construction site. Now they are transported in batches using large 10-ton trucks to one of the ECO Centers, and then distributed to the construction sites by scheduled delivery trucks. After delivery, the trucks are then loaded with building waste from the construction sites, which used to be taken to a recycling company from each construction site but now returned to the ECO Centers on trucks on their way back from product and component delivery. Next, the collected waste is sorted at the ECO Centers according to its recycling purpose and transferred to the appropriate recycling companies.

Award ceremony of the 11th Excellent Green Logistics Commendation Program

Award ceremony of the 11th Excellent Green Logistics Commendation Program

This improvement increased the recycling rate of building waste, contributing to realizing zero waste emissions. Also, the reduction in the number of vehicles used and the operation of empty trucks reduced CO2 emissions by 31.7% compared to fiscal 2012. In December 2012, these efforts received the Ministry of Economy, Trade and Industry Director-General for Commerce, Distribution and Industrial Safety Policy Award in the 11th Excellent Green Logistics Commendation Program. This is the first time that companies in the housing industry won this award. As well as increasing transportation efficiency, we will further actively enhance usage of biofuel and low-emission vehicles, such as CNG-powered*2 vehicles, by further enforcing collaborations with logistics partners.

  • *2CNG: Compressed natural gas.

Comparison Before and After Establishment of ECO Center

Building an Eco-conscious Logistics Infrastructure

Panasonic has commenced an overhaul of its logistics structure in Japan. Following the establishment of logistics centers in the eastern and western regions of Japan in fiscal 2012, we constructed an advanced distribution center for the Kyushu region, Tosu Center, in Tosu City, Saga Prefecture in fiscal 2013. The functions of the two existing distribution sites in the Kyushu region were integrated into Tosu Center, improving transportation efficiency and reducing CO2 emissions. Distribution site integration also reduced the electricity usage in warehouses and offices by 139,120 kWh, as well as CO2 emissions by 12% (57 tons), compared to fiscal 2012. We have also installed our own power generator in the nine major distribution sites across Japan, drawing lessons from the Great East Japan Earthquake aftermath, so that distribution to customers can be continued even during a power cut caused by a disaster. In addition to our environmental considerations, we are reinforcing our distribution infrastructure, taking account of disaster risks.

Modal Shift*3 Initiatives

Our domestic railroad freight transportation in fiscal 2013 totaled 16,324 five-ton containers, and 8,424 tons of CO2 emissions were reduced through transportation modal shift. After termination of the Home Appliance Eco-point Program,*4 the volume of domestic transportation has changed drastically. During this transitional period, we worked together with our logistics partners through the Modal Shift Promotion Council, and successfully switched long-distance transportation from vehicles to railroad freight between Kyushu and the Hokuriku and metropolitan areas. This shift was equivalent to 591 five-ton containers.

In addition, four of our products, the 1.5 V lithium battery EVOLTA, rechargeable EVOLTA, micro batteries, and battery-operated LED lights were certified to bear the Eco Rail Mark*5 in June 2012. With these certifications, a total of seven Panasonic products are now Eco Rail Mark certified.

  • *3Switch from truck and air transport to railroad and sea vessel transport that has less environmental impact.
  • *4A program whereby certain points called Home Appliance Eco-points were given to purchasers of house appliances with high energy saving performance, and the points could then be exchanged for a variety of goods.
  • *5A mark to identify businesses and products that use a certain level of railroad freight with little impact on the environment.

CO2 Emission Reduction Effect by Railroad Transportation (Japan)

Note: Former SANYO Electric not included in fiscal 2009 through 2010.

Introduction of Large CNG-powered Vehicles

Since fiscal 2010, we have been utilizing large CNG-powered vehicles, which are next generation low-emission trucks. This was the first attempt in the industry and the result of cooperation with the Ministry of Land, Infrastructure, Transport, and Tourism, Japan Gas Association, Japan Trucking Association, and various partner companies. One more vehicle was added in fiscal 2013, making a total of ten CNG-powered vehicles in operation, mainly around the major logistics centers in east and west Japan. We also participated in the Kansai International Airport Clean Logistics Project sponsored by the Kinki Smart Eco-Logis Council to promote usage of highly eco-friendly CNG-powered vehicles, and attended the project opening ceremony as the representative of freight companies in March 2013. The number of CNG-powered vehicles is increasing, particularly in the west Japan area. We continue to promote usage of eco-friendly vehicles.

Large CNG-powered vehicles owned by Panasonic

Large CNG-powered vehicles owned by Panasonic

Kansai International Airport Clean Logistics Project opening ceremony

Kansai International Airport Clean Logistics Project opening ceremony

Use of Biodiesel Fuel (Japan)

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 areas, the amount of biodiesel fuel used increased by 31% in fiscal 2013 compared with fiscal 2012. In addition to reducing CO2 emissions, use of biodiesel fuel saves costs by round-trip transportation and utilizing empty space on trucks for newspaper delivery.

Changes in Volume of Collected Waste Cooking Oil and Biodiesel Fuel Use (Japan)

Note : Former SANYO Electric is not included in fiscal 2009 through 2010.

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