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Panasonic's "eco ideas" Strategy

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Panasonic's "eco ideas" Strategy
-Promoted with our Collective Wisdom, Focusing on CO2 Emissions Reductions-

eco ideas
Panasonic's "eco ideas" Strategy

Panasonic has commenced its 'GP3 Plan,' mid-term management plan, from this fiscal year, and is working towards steady growth with profitability. And now, it considers that advanced environmental initiatives should be awarded the same level of importance, and will promote these two as the wheels that drive its vehicle.

In the followings, a presentation by Fumio Otsubo, President of Matsushita Electric Industrial at Panasonic Center Tokyo on October 5, 2007 is explained.

Increasing Environmental Awareness

Increasing Environmental Awareness

As you are all aware, it was announced this February by IPCC -- Intergovernmental Panel on Climate Change -- that human-induced greenhouse gases are the main cause of global warming.

Meanwhile, the first commitment period to achieve greenhouse gas reduction targets set out in the Kyoto Protocol begins next year, while international anti-global warming movements are gaining pace, with the Heilgendamm Summit held this June and APEC in September.

With the Hokkaido Toyako Summit also scheduled for next year in Japan, social interest can be expected to continue rising.

Even in customer purchase motives, as you can see on these charts, the weight of 'environment' is growing every year.

I now feel that an era has dawned in which companies without sufficiently fast and solid environmental initiatives will struggle to survive.

Accelerate Environmental Sustainability Management

Accelerate Environmental Sustainability Management

Amid such trends, Panasonic has decided to accelerate its environmental sustainability management further.

With the aim of becoming a challenger to achieve global excellence, we have commenced our 'GP3 Plan,' mid-term management plan, from this fiscal year, and are working towards steady growth with profitability.

We are continuing to pursue growth and high profitability, but now, we consider that advanced environmental initiatives should be awarded the same level of importance.

Therefore, along with steady growth with profitability, we have added the aim to reduce environmental impact in all business activities to our basic GP3 Plan stance, and will now promote these as two of the wheels that drive our vehicle.

In particular, we have identified two key issues:
Rapidly implement measures to prevent global warming
Globally promote environmental sustainability management
And we will promote related initiatives across the Panasonic as a whole.

Reduce CO2 Emissions in Production Activities

Reduce CO2 Emissions in Production Activities

The most important and directly relevant theme for us is to reduce CO2 emissions in production activities.

Until now, we have considered this reduction in terms of 'basic unit,' namely, the total CO2 emissions from across our business units divided by sales or production output.

However, we will now consider reduction in terms of the total value across the group, regardless of how our business expands -- in other words, seek to reduce CO2 emissions in terms of absolute quantity.

More specifically, we are aiming to reduce our global CO2 emissions by 300,000 tons over the three years of the GP3 Plan. In addition, we aim to reduce total emissions to the FY2001 levels by FY2011.

Panasonic has determined that FY2001 represents the standard year of its 'Environmental Action Plan,' and aims first to reduce emissions to that year's levels.

CO2 Emissions Serve as our Key Management Indicators

CO2 Emissions Serve as our Key Management Indicators

In another new initiative, we have regarded CO2 emissions as one of our key management indicators, as we seek to achieve our targets.

In Panasonic, we have established a system in which environmental performance data of 23 items, such as CO2 emissions, is collected every month from all of our manufacturing business units in 294 sites around the world, and feedback is subsequently given on the results of the data they submit into the system.

This environmental performance system has already been put into place in Japan this month, while operations will commence in all sites on a global basis next January.

This system will now be utilized with CO2 emissions added to the other key management indicators -- sales, operating profits, inventory, and Capital Cost Management (CCM) -- and emission reduction initiatives will be strengthened with the management and assessment of the environmental performance data.

Three Key Initiatives

Three Key Initiatives

Panasonic will not stop at the CO2 reduction in production activities that I have just been through. We will also develop our environmental sustainability management widely using the three types of 'eco ideas' shown here.

Going through these individually, we have:
'eco ideas' for Manufacturing -- initiatives in our corporate activities
'eco ideas' for Products -- initiatives to reduce environmental impact from products
'eco ideas' for Everybody, Everywhere -- to actively expand our environmental initiatives as a corporate citizen.

Thorough Pursuit of Energy-efficient Products

Thorough Pursuit of Energy-efficient Products

'eco ideas' for Products also include consideration of materials and recyclable design, but the most important concept here is energy conservation. We have established a basic concept of increasing the number of products with the No. 1 energy-efficient performance, and to phase out low energy-efficient products.

For example, while it is very difficult to set quantitative targets as we cannot make clear comparisons with other companies, we do aim wherever possible to engage in objective initiatives. As an example of these, I would like today to explain about initiatives based on the 'Energy Conservation Performance Catalog,' which is published by the Energy Conservation Center, Japan.

This graph shows a distribution of how the Panasonic products listed in the latest edition of the Energy Conservation Performance Catalog are ranked in terms of high energy-saving performance.

16% of our products are rated as having No. 1 energy-efficient performance, but 13% had low-ranked performance. These were limited to just seven products, including televisions and air conditioners, but I do think that this is one yardstick for objectively measuring our energy-saving performance.

Energy-efficiency performance is becoming more and more closely related to product competitiveness. Panasonic currently has more high rankings and fewer low rankings than other companies. However, we are actively working even harder at energy-efficient performance with the aim of doubling the proportion of products with No. 1 energy-efficient performance, and totally phasing out the lower-ranked models, in time for the FY2010 publication of the Energy Conservation Performance Catalog.

Reduce CO2 Emissions by Improving Productivity

Reduce CO2 Emissions by Improving Productivity

As for 'eco ideas' for Manufacturing, we are working to reduce CO2 emissions not only in the production activities in our factories, but across the entire manufacturing processes from product planning to production, sales, services, and recycling.

We consider that initiatives to reduce CO2 are realized in initiatives to improve productivity.

For example, our steady initiatives to eliminate waste, through inventory reduction and improved quality and yield ratios, also result in reduced CO2 emission.

In addition, CO2 reduction effects have also been achieved when installing new equipment, improving transportation efficiency, and integrating factories.

Even in indirect departments, it is possible to minimize travel to work and business trips, and achieve paperless operations, by utilizing IT, and this too contributes to CO2 emission reduction.
We are accelerating initiatives in all of our businesses, with the view that reforms and improvements to management all lead to CO2 emission reduction effects.

Expand Eco-conscious Activities with the Collective Wisdom

Expand Eco-conscious Activities

In the third concept, 'eco ideas' for Everybody, Everywhere, we are promoting three major themes:

Global promotion of the 'Love-the-Earth Citizens' (LE) Campaign'
Development of 'eco ideas' factories to achieve coexistence with local communities
Acceleration of environmental contribution in China as a group-wide project

Together with our employees and our many other stakeholders, we are gathering collective wisdom to develop eco-conscious activities for everybody, everywhere.

Panasonic "eco ideas" Declaration

Panasonic "eco ideas" Declaration

Finally, I would like to take this opportunity to announce 'Panasonic 'eco ideas' Declaration,' which, as you can see here, is a commitment to all members of society that our company will steadily and concretely implement the initiatives that I have spoken about today.

 1. We will produce energy-efficient products
 2. We will reduce CO2 emissions across all our manufacturing sites
 3. We will encourage the spread of environmental activities
throughout the world

Panasonic hereby makes these three commitments, and based on its management philosophy that 'a company is a public entity of society,' will actively contribute to coexistence with the global environment.

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