___________________________________________________________________________

2008/SOM1/MAG/WKSP/007 Session: 2

Panasonic’s Environmental Approaches

Submitted by: Matsushita Electric industrial Co.

Workshop on Information Technology / Electronics Industry

Lima, Peru20 February 2008

1

20 February, 2008

Narito ShibaikeNarito ShibaikeMatsushita Electric industrial Co., Ltd.

Panasonic’s Environmental Approaches

2

Sales

Employees

Overseas49%

Japan44%

Overseas56%

Foundation 1918

Sales 9,108.2 bln. JPY

Operating Profits

459.5 bln. JPY

Employees 330,000 approx.

(As of March 2007)

Japan51%

Company Profile Company Profile

By the Founder Konosuke Matsushita,his wife and her brother

3

AVC NetworkAVC Network(41%) (41%)

ApplianceAppliance(14%)(14%)

Victor Company of Japan*Victor Company of Japan*(JVC) (7%) (JVC) (7%)

DeviceDevice(12%) (12%)

(FY2007 sales breakdown)* From August 2007 JVC was excluded from this statistics.

OthersOthers(7%) (7%)

Matsushita Electric Works Matsushita Electric Works (MEW) & PanaHome (MEW) & PanaHome

(19%) (19%)

Business AreasBusiness Areas

4

Today's Agenda

PanasonicPanasonic Group's 'eco ideas' StrategyGroup's 'eco ideas' Strategy

PracticesPractices of 'eco ideas'of 'eco ideas'

Examples of the IndustryExamples of the Industry’’s Activitiess Activities

5

Increasing Energy Consumption by HouseholdsIncreasing Energy Consumption by Households

Breakdown of power consumption by households

(Japan)

Changes in energy consumption in Japan

0

50

100

150

200

250

1965 1970 1980 1985 1990 1995 2000 20051975

(1973 indexed as 100)

Households

Industrial sector

Total

Source: Outline of power supply and demand during 2004 published by the Agency for Natural Resources and Energy

Source: METI/EDMC General Energy Statistics, EDMC Estimate

Indi

ces

Air conditioners

25.2%

Refrigerators16.1%

LightingEquipment

16.1%

TVs9.9%

Electric carpets4.3%

Hygiene toilet seat 3.9%

Others20.2%Clothes dryers

2.8%

Dish washer/dryers 1.6%

6

KoreaKorea

JapanJapan

ChinaChina

Hong KongHong Kong

EUEU

U.S.U.S.

BrazilBrazil

IndiaIndia

EnergyEnergy--saving Performance Label saving Performance Label ExpandedExpandedaround the World (around the World (typical examples) typical examples)

AustraliaAustralia

CanadaCanada

7

Accelerate Accelerate Environmental Sustainability ManagementEnvironmental Sustainability Management

Steady Growth Steady Growth with with

ProfitabilityProfitability

Deconstruction and Creation

Matsushita Matsushita in 2007in 2007

Matsushita Matsushita in 2009in 2009

Global ExcellenceGlobal ExcellenceBecoming a Challenger to Becoming a Challenger to Achieve Global ExcellenceAchieve Global Excellence

ＧｌｏｂａｌＧｌｏｂａｌ ＰｒｏｇｒｅｓｓＰｒｏｇｒｅｓｓＧｌｏｂａｌＧｌｏｂａｌ ＰｒｏｆｉｔＰｒｏｆｉｔＧｌｏｂａｌＧｌｏｂａｌ ＰａｎａｓｏｎｉｃＰａｎａｓｏｎｉｃ

GP3 PlanGP3 Plan Reduce environmental Reduce environmental impact in all business impact in all business

activitiesactivities• Rapidly implement measures to prevent global warming.

• Globally promote environmental sustainability management.

Key issuesKey issues

8

Reduce COReduce CO22 Emission in Production Activities Emission in Production Activities

FY2010 Target

Reduce total emission while increasing production

FY2009 Target under the "GP3 Plan"

Achieving the level for FY2000 (approx. 3.6 million tons)

Reduce global CO2 emission by 300,000 tons in three years

(FY'06: 3.98 million tons FY‘09: 3.68 million tons)

9

COCO22 Emission Serve as Key Management IndicatorsEmission Serve as Key Management Indicators

Environmental performance system

Report monthly global CO2 emission figures to management

Manufacturing business units

グローバル294拠

点

294294 sites sites around around

the worldthe world

Environmental performance data

Head OfficeCOCO22

emissionemission

with 23 with 23 itemsitems

Submit data via the Web

Feedback of analysis results

Monthly reporting of “Statement of Environmental Performance”Various data analyses, etc.

Key management Key management indicatorsindicators

SalesOperating profitInventoryCCM

COCO22emissionemission+

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- Pursue energy-efficient product development

- Promote the use of environmentally-conscious materials and product recycling

- Reduce CO2 emission by improving productivity

- Enhance resource conservation and waste reduction

- Expand ecology with the international community

- Strengthen activities across national borders

Three Key InitiativesThree Key Initiatives

'eco ideas' 'eco ideas' for Productsfor Products

'eco ideas' for 'eco ideas' for ManufacturingManufacturing

'eco ideas' 'eco ideas' for Everybody, for Everybody,

EverywhereEverywhereLiving in harmony Living in harmony

with society and the worldwith society and the world

11

Thorough Pursuit of Thorough Pursuit of EnergyEnergy--efficient Productsefficient ProductsIncrease the number of products featuring the No.1 energyIncrease the number of products featuring the No.1 energy--efficient efficient performance and phase out low energyperformance and phase out low energy--efficient productsefficient products

ＦＹ2007 ＦＹ2009

No. 1 16%

High-ranked 36%

Low-ranked 13%

Mid-ranked 35%

No. 1 30%

High-ranked40%

Mid-ranked 30%

100%100%

Fade outFade out

DoubleDouble

Numerical target setting example based on the "Energy Conservation Performance Catalog by the Energy Conservation Center, Japan"

Dis

trib

utio

n of

ene

rgy-

effic

ient

mod

els

'eco ideas' 'eco ideas' for Productsfor Products

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ProductProductplanningplanning

DesignDesign

ProcureProcure--mentment

ManufacManufac--turingturing

LogisticsLogistics

SalesSales

ServiceService

RecyclingRecycling

Manufacturing Manufacturing ProcessProcess

Reduce COReduce CO22 emissionemissionby Improving Productivityby Improving Productivity

IT innovationsIT innovations

e-Work

Green logisticsGreen logistics

Modal shifts

EnergyEnergy--conserving conserving equipmentequipment

Electronic component mounting machines

RecyclingRecycling

3R design

Inventoryreduction

Qualityimprovement

Factory integration

Energy conservation

at offices

'eco ideas'eco ideas‘‘ forforManufacturingManufacturing

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Reduce COReduce CO22 emission to FY2emission to FY2000000 LevelLevel

350

--120,000120,000tonstons

--300,000300,000tonstons

'06

300

400

0 '05'04 ‘09

368

'03

410 400 398404

'07 '08

388 378360

'10'00

361

To FY'00level

GP3 PlanGP3 Plan

Reduce global CO2 emission to 3,680,000 tons in FY2009- 294 manufacturing sites -

CO

2em

issi

on (1

0,00

0 t-C

O2)

FY

'eco ideas'eco ideas‘‘ forforManufacturingManufacturing

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Love the Earth Love the Earth Citizens' CampaignCitizens' Campaign

(LE Campaign)(LE Campaign)

Global promotion

ExpandExpand EcoEco--conscious Activities conscious Activities with the Collective Wisdom with the Collective Wisdom

From communities to the worldFrom communities to the world

Establishment of factories Establishment of factories that achieve living in harmony that achieve living in harmony

with local communitieswith local communities

'eco ideas' Factory

Acceleration of Acceleration of environmental environmental

contributions in Chinacontributions in China

China Eco Project

'eco ideas'eco ideas‘‘for Everybodyfor Everybody

15

商商 品品

省エネ認証商品の投入

モノづくりモノづくり 社会貢献社会貢献

黄海ｴ ｺﾘｰｼ ｮ゙ﾝ支援（9/ 7公表）

WWFｺｰ ﾎ ﾚ゚ｰ ﾄｻ ﾎ ﾟー ﾀｰロゴ環境ラベル

１００％貼付１００％貼付 １００％取得１００％取得

清潔生産審査

工場の環境公的認証の取得

アジア初アジア初

商商 品品

省エネ認証商品の投入

モノづくりモノづくり 社会貢献社会貢献

黄海ｴ ｺﾘｰｼ ｮ゙ﾝ支援（9/ 7公表）

WWFｺｰ ﾎ ﾚ゚ｰ ﾄｻ ﾎ ﾟー ﾀｰロゴ環境ラベル

１００％貼付１００％貼付 １００％取得１００％取得

清潔生産審査

工場の環境公的認証の取得

アジア初アジア初

Harmonious Coexistence Harmonious Coexistence with Local Communities and Societywith Local Communities and Society

Become a No.1 company contributing to Become a No.1 company contributing to the environment in Chinathe environment in China

Eco-Challenge designed to select energy-efficient products

China Eco Project (published on Sep. 26)

Corporate-wide promotion of purchasing energy-efficient products

LE activities

Household Eco-account Book

Reduce the use of plastic shopping bags by using Eco Bags

Environmental volunteers

ProductsProducts ManufacturingManufacturing SocialSocialcontributionscontributions

Environment labels

Clean production audit

WWF Corporate Supporter Logo

Release certified energy-efficient products

Acquire public certification of factory environment

Yellow Sea Eco-region Support Project

(published on Sep. 7)Asia'sfirst

100%acquisition

100%labeling

'eco ideas'eco ideas‘‘for Everybodyfor Everybody

16

Panasonic 'eco ideas' DeclarationPanasonic 'eco ideas' Declaration

Panasonic will Lead the Way Panasonic will Lead the Way for the World with 'eco ideas'for the World with 'eco ideas'

－松下グループの3つのお約束－- Panasonic's 3 Pledges -

1. We will produce energy-efficient products.

2. We will reduce CO2 emission across all our manufacturing sites.

3. We will encourage the spread of environmental activities throughout the world.

Publicly announced on October 5, 2007Publicly announced on October 5, 2007

Enhance energyEnhance energy--conserving performanceconserving performance

Spread energySpread energy--conserving conserving productsproducts

Reduce CO2 emission to Reduce CO2 emission to FY2000 levelFY2000 level

Incorporate into the core Incorporate into the core management systemmanagement system

Globally expand Globally expand the LE activitiesthe LE activities

Promote the China Eco Promote the China Eco ProjectProject

17

Practices of 'eco ideas'

18

Spiral-shaped

New quadruple coil (industry's first)

Pa-look Ball Premier

Bulb-shaped fluorescent lamp

Power consumption -70%Water consumption -89 L

High-speed energy-saving heat-pump drying system

New stainless drum

NA-VR2200Tilted drum washer/dryer

* Compared with our 3-year-old similar model

Power consumption -80%Product life x10

* Compared with our silica bulbs

Innovative Products withInnovative Products withOriginal EnergyOriginal Energy--efficient Technologiesefficient Technologies

19

System LSISystem LSI

"UniPhier" "PEAKS"

VIERA

Applications

Reduced power consumption to 1/3 of the FY'00 model with miniaturization

technologies.

Digital camcorders

DVD recorders, mobile phones, etc.DVD recorders, mobile phones, etc.

Conserving Energy by Conserving Energy by Developing Semiconductor TechnologiesDeveloping Semiconductor Technologies

Semiconductors for switching power supply

"IPD"

Reduced standby power consumption to 1/6 (0.07 W) with intermittent oscillation control.

Power supply adapters

Mobile phones, electronic devices, etc.Mobile phones, electronic devices, etc.

Intercoms

Applications

20

Conserving Energy by Conserving Energy by Developing Motors and Heat Insulation Materials Developing Motors and Heat Insulation Materials

Vacuum insulation panelsVacuum insulation panelsMotorsMotors

"DC brushless motors"

Reduced power consumption to 1/2 with high space-factor wire winding.

Washing machines

"MINAS"

Industrial robots

Home appliances, automotive electronics, Home appliances, automotive electronics, information equipment, FA, etc. information equipment, FA, etc.

"U-Vacua"

Electric thermo pots

Automatic vending machines, heat Automatic vending machines, heat insulation in bathrooms, insulated trucksinsulation in bathrooms, insulated trucks

Applications

Insulation performance increased to x10that of urethane insulation materials by using porous core and vacuum

insulation materials.

Refrigerators

Applications

21

EnergyEnergy Generation System for the 21st CenturyGeneration System for the 21st CenturyHousehold Fuel Cell CoHousehold Fuel Cell Co--generation Systemgeneration System

The household fuel cell cogeneration system realizes an overall efficiency of 74%, providing electricity and heat.

The conventional power generation system only provides electricity, and its overall efficiency is 35%.

Hello, New Household Energy Source!

22

Energy management

電灯線ECHONET e-Learning

ETC Teleconferencing

Reducing CO2 Emissions with ICTReducing CO2 Emissions with ICT

Examples of CO2 emissions reduction with information & communication technology (ICT)

23

China material test centreChina material test centreChina material test centreChemical substances management system for products

Chemical substances management system for products

Eliminate specific hazardous substances* from all products on a global basis from July, 2006 (RoHS Directive as in Europe)

Started on April 1, 2003 in Xiamen

Matsushita Group

Database

Database

Head Office

Divisions

Use for environmentally-conscious design

Entry on website

Survey and request

via e-mail

NonNon--use of Specific Hazardous Substancesuse of Specific Hazardous Substances

* Substances ： Lead, mercury, cadmium, hexavalent chromium & specified brominated flame retardants(PBB, PBDE)

Suppliers

24

Comply with the REACH RegulationComply with the REACH Regulation

2007.4- 2008.4- 2009.4- 2010.4- 2011.4-

REACHRegulation

Action 1

Action 2

RoHS compliance REACH compliance

Content Ban any inclusion Check for any inclusion (by Jun. 2011)

Applicable substances Six Approx. 1,000 (a large number of substances

are covered)

Checks Analyzable Analyses are difficult

Spreading of the

regulationsEU, China, Japan, etc.(Will ensure compliance around the world)

Currently limited to EU Member States

Disclosure of applicable substances

Checking for inclusion Preparation forregistrationPreparation

Effectuation (Jun) Reporting

deadline (Jun)

Action 1: Register raw materials used in EU factories to the authorities

Action 2: Check for the inclusion of the applicable substances in products marketed in EU Member States

Preparation Pre-registration

Pre-registration Registration

Registration

25

Modular type

Manufacturing technology innovations

Increased the number of PDP panels produced from a single substrate

Finer semiconductor processing on larger diameter wafers

One panel Six panels

Energy Energy savingsaving

Line width: 130 nm(Diameter: 203 mm)

COCO22:: --80%/chip 80%/chip

Energy Energy savingsaving COCO22:: --50%/PDP50%/PDP

Introduction of energy-conserving production equipment

Molding machines

Energy Energy savingsaving

SpaceSpacesavingsaving

Hydraulic type Motorized type

COCO22:: --50%/unit50%/unit

COCO22:: --60%/unit60%/unit

Electronic component mounting machines

Rotary type Modular type

Energy Energy savingsaving

SpaceSpacesavingsaving

Line width: 45 nm(Diameter: 300 mm)

MoldingMolding

Reducing COReducing CO22 Emissions by Emissions by Increasing Productivity in ManufacturingIncreasing Productivity in Manufacturing

26

Site integration

SpaceSpacesavingsaving

MikuniMikuni NaraNara

KusatsuKusatsu

FujisawaFujisawa KofuKofu

SpaceSpacesavingsaving

"eco-idea" Factory Biwako

TransportationTransportationvolume reducedvolume reduced

Four factories and one shipping site

Reduce the number of sites to three

Shipping siteShipping site

FactoryFactory FactoryFactoryShipping siteShipping site

Factory integration (PanaHome's main factory)

Site integration (Matsushita Home Appliances Group)

Integration into Integration into Kusatsu SiteKusatsu Site

Green logistics

Tokyo

Shanghai

Tokyo

TransportationTransportationdistances reduceddistances reduced

Direct transportation near to the market

Modal shifts (railroad transportation)

ShanghaiOsaka

Direct Direct transportationtransportation

COCO22: : --50%50%

COCO22: : --80%80%

Reducing COReducing CO22 Emissions by Emissions by Increasing Productivity in Entire ProcessIncreasing Productivity in Entire Process

COCO22: : --15%15%

COCO22: : --20%20%

27

Recycling of Home Appliances in JapanRecycling of Home Appliances in Japan

Matsushita Eco Technology Centre Co., Ltd. (METEC)Matsushita Eco Technology Centre Co., Ltd. (METEC)

Operated from 1 April, 2001. ・Number of recycled products:

710,000 units/year (2004)・Number of visitors:

42,978 (As of Sep. ’05)

28

Coexistence with the region

Base for technical development

Coexistence with environment

From product to product

Features ofFeatures of METECMETEC

Each product has an individual recycling line

Environmental Protection Association

Open to All

Establishment of recycling institute

29

Examples of the Industry’s Activities

30

■ IEA (International Energy Agency)- Indicator Workshop (25-26 Oct. 2007, Paris)⇒ Recommendations to G8 on energy efficiency

Recent International Discussions Recent International Discussions on Energy Efficiencyon Energy Efficiency

■ APP (Asia Pacific Partnership on Clean Development and Climate)

- 4th BATF Meeting (15-16 Nov. 2007, Washington)- 2nd Workshop on Market Transformation

(31 Jan.-1 Feb. 2008, Tokyo)⇒ Policies analysis for “Good practices handbook”

■ ISO (International Organization for Standardization)- TC207/SC5 TG Meeting (5 Dec. 2007, Gothenburg)⇒ Proposal for eco-efficiency standard

31

Participation and Lead in APP Participation and Lead in APP as Japanese Industry as Japanese Industry

Seven countries are collaborating in eight taskforces.

Appliances Project 1 Harmonization of test procedures

L: Korea, CL: Japan and U.S. Project 2 Alignment of national standby

power approaches L: Australia, CL: Korea

Project 3 Market transformation L: Japan, CL: China

Buildings and Appliances (common)Project 8 Financing and Contracting (4 projects)

L and CL: U.S and Australia

Buildings and Appliances Task Force

32

The Information Explosion & Increase in The Information Explosion & Increase in Power ConsumptionPower Consumption

TVPC

Server

Network Equipment

Estimated Amount of Data Circulating within the Internet (2006-2025)

2006 2010 2015 2020 2025

(times)

637 Gbps

Prop

ortio

nal in

creas

e in d

ata tr

affic

121 Tbps

0

20

40

60

80

100

120

140

160

180

200

×190

Estimated Power Consumption

0

50

100

150

200

250

2006 2025 2050

[Billion kWh]

× 5

× 12

By the year 2025, the amount of data on internet will be about 200 times, and the power consumption of IT will be 5 times of 2006.

33

Reduction in Environmental Load byReduction in Environmental Load byEffective Use of ITEffective Use of IT

Improvement of production and

distribution efficiency

Improvement of energy use

efficiency

Production activitiesProduction activities

Distribution and transportationDistribution and transportation

Utilization (business)Utilization (business)

Utilization (home)Utilization (home)

- Production management system

- Energy consumption management

- Precise SCM- CAD/CAM design

- Production management system

- Energy consumption management

- Precise SCM- CAD/CAM design

- Distribution and delivery management system

- Online dealing- ITS and car navigation- Music distribution and

software distribution

- Distribution and delivery management system

- Online dealing- ITS and car navigation- Music distribution and

software distribution

- Energy management (BEMS)- IT promotion at offices (ERP,

etc.)- E-commerce- Telework and video

conferencing

- Energy management (BEMS)- IT promotion at offices (ERP,

etc.)- E-commerce- Telework and video

conferencing

- Use of energy-saving domestic electrical appliances

- Distribution of music and software

- Energy management (HEMS)

- Use of energy-saving domestic electrical appliances

- Distribution of music and software

- Energy management (HEMS)

Effective use of IT greatly helps reduce society’s environmental burden

Reduction of need to transport people

and materials

34

(Opportunities for enhancing the partnership between IT and electronics-related industries (manufacturers, users, and business organizations), research organizations, universities, and the government)

Government initiatives

Collaboration of industry, academia, and government

International leadership

Education and promotion of environmental management and IT managementVisualization of environmental contributions of IT to society

“Green IT International Symposium”

Collaboration with overseas organizations

Examination of how to create opportunities for enhancing the collaboration of industry, academia, and government

Green IT Promotion Council

Breakthroughs by innovative technologies• Promotion of the “Green IT Project”• Development of energy-saving technologies

(Collaboration with the -World Semiconductor Council (WSC) and overseas forums (such as the Green Grid and Climate Savers, etc.))

Development of the Green IT InitiativeDevelopment of the Green IT Initiative

35

Evaluation of Environmental Contributions of Evaluation of Environmental Contributions of ITIT--related Corporationsrelated Corporations

Raw materials

Distribution

Manufacture(products)

Disposal

Manufacture(parts)

Recycling

Use

Design

Business (in every industry in Japan and abroad) and

infrastructure

Home (consumers in Japan and abroad)

Virgin materials

To other industries

Presence of very environmentally conscious

consumers in Japan

“Energy saving for IT” and “Energy saving through IT”International efforts beyond the scope of domestic measuresEnergy saving in not just the manufacturing fields but throughout the entire supply chain

Green IT

Contributions to overseas and other industries

36

Thank you very much!Thank you very much!

The Panasonic Group proposes The Panasonic Group proposes oneone--stepstep--ahead eco ideas ahead eco ideas

in every activity.in every activity.