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As a company backed by a number of suppliers, we must consider the environmental impacts of our entire supply chain, and not just of our own operations. Through our coordination efforts with suppliers and transportation partners, who form an integral part of our business operations, we strive to minimize our environmental impact across the entire supply chain, focusing on the reduction of CO2 emissions, resource recycling, chemical substance management, and biodiversity conservation.
We issued our Green Procurement Standards in March 1999 and are actively engaging in green procurement in order to promote the manufacture of environmentally conscious products in partnership with our suppliers. As a first step in collaborating with suppliers and achieving the goals outlined in our environmental action plan–Green Plan 2018–we issued an updated version of our Green Procurement Standards in January 2012. This renewed policy aims to build a group of suppliers who agree with our environmental policy and provides products and goods to Panasonic, to reduce the environmental impact of their business activities, share achievements through collaboration, and encourage upstream suppliers in our supply chain to reduce their environmental impact.
Also, in order to promote environmental impact reduction activities more effectively with our suppliers, we monitored the Green Procurement Standards implementation status of our suppliers in fiscal 2013 through the Green Procurement Survey targeted at our major global suppliers on a trial basis. We received responses from 415 companies, and were able to confirm the level of activity in areas such as “environmental management system development,” “thorough implementation of chemical substance management,” “reduction of greenhouse gas emissions,” “promotion of resource recycling,” “promotion of water recycling,” and “biodiversity conservation.” The responses received will be used as materials for decision-making on future business transactions and, at the same time, to identify issues in cutting down environmental impacts. The details of the survey can be found in the Green Procurement Standards.
We have launched a trial project to identify GHG emissions in our supply chain as a first step toward implementing reduction efforts since fiscal 2012. In order to first identify any issues arising from suppliers' GHG calculation processes, we newly selected and briefed raw material suppliers and electrical/electronic component manufacturers also in fiscal 2013, urging suppliers to calculate and submit appropriate GHG emissions data. We received replies from 101 consenting suppliers, with global calculations taking into account GHG emissions from supplier domains, upstream domains (raw material suppliers and component manufacturers), and downstream domains (domestic import and logistics companies), and the total emissions of products delivered by the suppliers to Panasonic were about 1.05 million tons. We will commit to promoting these initiatives while considering factors like economic rationality between Panasonic and suppliers and the completeness of collected data.
Also, our GHG emissions in the upstream segment were estimated by using the GHG emission per basic unit by resource type, based on the volume of resources purchased and on the Input-Output Table published by the Japanese government. The estimate based on the aforementioned figures for fiscal 2012 is 13.64 million tons, roughly 4 times the GHG emissions from our production activities.
Seminar on trial of identifying GHG emissions in the supply chain
Since fiscal 2010, we have been implementing the ECO-VC*1 Activity with our suppliers. This program seeks out ways in our parts procurement activities to save energy and resources or use recycled materials, which at the same time aims to rationalize costs. In fiscal 2011, we expanded the focus on Recycling-oriented Manufacturing in addition to the original objective of reducing CO2 emissions.
Action in China and other Asian nations was accelerated in fiscal 2013. Suppliers from around the world have submitted a total of 866 ideas on energy saving for products and factories, or proposals on how to make smaller and lighter goods or using fewer parts. We wanted to share the best of these proposals with all our suppliers, and so we established the Panasonic Excellent Partners Meeting, which is attended by all our suppliers worldwide.
In the future, we will implement this ECO-VC Activity throughout the supply chain-from procurement to distribution-to reach many more suppliers and reduce CO2, lower costs, and promote Recycling-oriented Manufacturing (minimizing resources used, recycling, and switching to non-petroleum materials).
|Number of proposals||668||901||866|
|CO2 reductions derived from proposals||163,000 tons||323,000 tons||412,000 tons|
|Use of recycled resources derived from proposals||11,612 tons||16,521 tons||17,011 tons|
|Reduction in resources used derived from proposals||12,311 tons||16,231 tons||18,431 tons|
In addition to complying with environmental laws, we have called on our upstream suppliers to reduce their environmental impact in the updated Green Procurement Standards, further extending our supply chain initiatives to reduce our environmental impact.