Panasonic Activities. Green Procurement & Green Products. Oct. 7, 2005

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1 2005 Thailand ECO Eco-Products fair - Thailand Exhibition Forum Panasonic Activities Green Procurement & Green Products Oct. 7, 2005 Corporate Environmental Affairs Division Matsushita Electric Industrial Co., Ltd Akira Nakamura

2 Today s Agenda Company Profile Green Procurement & Green Purchasing Supply of Green Products Products Recycling

3 Company Profile Global fiscal year ended 2005 Mar. Foundation Sales Profit Mar ,700 bill. J. yen 300 bill. J. yen Employees 340,000 approx. Thailandfiscal year ended 2005 Mar. Foundation Dec Group 20 companies Sales 45 bill. THB Employees 16,000 approx. Sales Employees

4 Sales by Products Category JVC Others AVC Network Visual Audio MEW & Pana-Home AVC Network Information & Communication Device Appliance

5 Panasonic s Vision for 21 st Century Contribute Human s s Affluent Life Service & Solution Digital Network Appliance Environmental System Device Production System

6 Today s Agenda Company Profile Green Procurement & Green Purchasing Supply of Green Products Products Recycling

7 Green Procurement & Green Purchasing Green Procurement : Obtaining of device/material needed for the manufacturing Green products : Supply of products with the environment conscious design/material Green Purchase : Purchasing of green products for the related business

8 Stopped Using Lead-Contained Solder Finished introducing Lead-free solder, globally, in Mar Europe Panasonic U.K. China Japan Brazil Lead-free print circuit board Indonesia Panasonic Malysia Panasonic HA Hangzhou National Gobel

9 Non-use of Restricted Certain Substances RoHS Directive In Europe, Restriction of the use of certain substances in electrical equipment Starting from July 1 st, 2006 *6 substances : Lead, Mercury, Cadmium, Hexavalent chromium, Polybrominated biphenyls(pbb), Polybrominated diphenyl ethers(pbde) Panasonic Counter-action Globally, Prohibiting the use of these 9 months before RoHS directive in effect Finish actions before Oct in product shipment base PBB PBDE immediate prohibition Lead, Mercury, Cadmium, Hexavalent chromium No-use after Oct. 2005

10 GP-Web system In order to assure non-use, need to know the chemical content of each material Suppliers Panasonic Entry Head office Consolidated data management Registration of chemical substance & material Consolidated data collection Eliminate redundant checks Helpdesk Investigation & registration request System management Group-wide procurement database Environmental Law database Business domain company Green procurement database (Material list & data) Data Utilization LCA R assessment Disclose of environmental impact info.

11 Status of Non-use Project as of Mar completion of non-use 100 will be achieved in Oct Investigation Watch Change Assurance Completed for All devices & materials 1,320,000 items All suppliers (11,000 suppliers) committed non-use Supplier audit is undergoing 6,000 11,000 suppliers Became capable to self-check/analyze (equipment etc.) 240,000 devices/materials have been substituted from use to non-use 50,000 items left (4%) Established the Products Assurance System Request all suppliers to obtain ISO14001 certification Products Chemical Control System Sharing all material & suppliers information with GP-Web, globally China Material Test Center

12 Status of substitution Non-use project Unit: P/Ns *Devices & Materials to-go Underway 50,000 Exemption required by customers to-go As of Mar Products base Exemption required by customers Substituted 240,000 Material 1,320,000 Underway 12,000 Products 48,000 Non-use 990,000 Substituted 25,000 *Devices & Materials : Limited to for finished products

13 Chemical Substances Management Chemical Substances Management Rank Guidelines (for products) Rank Definition Prohibited Level (1) Level (2) Prohibited the intentional use by law Prohibited as Pana s decision PCB, Asbestos, PBB, PBDE etc. Prohibit possibly after certain period by law Push forward with restricting as Pana s decision PVC, Cadmium, Lead, Mercury etc. Managed Considered less environmental impact (The study of recycle & reasonable disposal works are included) No restriction, but required to report and manage Reduce chemical substances usage 33/50 Reduction Plan (in total including factory use) Aiming the reduction of usage by 33% in 3 years, by 50% in 6 years Restriction of using *PVC, after Apr *Contains phthalate ester or no collection system after disposal

14 Introduction of Hybrid Truck & Eco-car (Japan) Japan prime minister Koizumi made remarks in his annual policy speech Jan.9, 2005 by Asahi (newspaper) No. of low-pollution car Hybrid truck Eco-car Spurt Plan CNG or Low emission car Reduction of CO2 emission FY03 Actual FY04 Est. FY05 Plan FY06 Plan FY2004 FY2007 FY ,200 t 48,750 t 43,740 t est.

15 Green Purchasing (Japan) Copy Paper (mil. Sheets) Non-green Green ratio (%) 84% 40% Green 100% Stationery (mil. J-yen) Non-green 59% Green ratio (%) 70% Green 78% Products conformed to green purchasing law of Japan (2004) Products No. of model Refrigerator 26 Washing machine 14 Air-conditioner 340 Television 57 Copy machine 53 Printer & Fax machine 26 PC 90 Lamp 73 Video tape recorder 5 OA paper 2 Garbage disposer 26 Lighting equipment 145

16 Introduction by DVD/VTR (Approx. 4 min.) Green products & Environmental activities

17 Today s Agenda Company Profile Green Procurement & Green Purchasing Supply of Green Products Products Recycling

18 Simultaneous Pursuit of Environment & Business V-Products Creating Value for a New Lifestyle Index Factor X Understanding of Competition Green Products Coexist with with Global Value for for Environment Conventional Lifestyle Energy Saving Comfort & Convenience Resource Efficiency Security & Safe Flexibility & Versatility Echo-Life Chemical reduction Environment Conscious Environmental Advancement Environmental Technology Minimizing Environmental Risk Black Box Technology Universal Design Easy to use Any time, any place, for everyone Comfortable & Convenient Life

19 Structure of Green Products Actual Super GP Superior GP GP Target GP in development Trend setting products for sustainability or remarkable efficiency improvement Industry s best in the environmental performance Improved environmental performance GHG efficiency Resource efficiency Non-use of *certain chemicals Environmental problem solution Products assessment Indispensable rule Pre-assessment of environmental conformity 1.Obedience 2.Green procurement 3.By-rank chemical control guidance *Certain chemicals: 6 hazardous substances defined in RoHS is restricted in all products

20 CFC/HFC-free Refrigerator Ozone depletion potential Global warming potential 0 1, (1/400) Electricity consumption kwh/year NR-F462U

21 Standby Energy-saving with IPD Semiconductor device for switching power supply Concomitant standby detection of constant & intermittent oscillation 1 IPD-chip cuts excess standby electricity consumption 1W Standby electricity 1W vs. old type 81 reduction 0.35W 0.065W Adoptable to other electric appliance Open to supply to other than Panasonic 0 w/o chip In case of using 30 mil. pcs./y, CO2 reduction: 25,000 ton/y

22 Household Fuel Cell Cogeneration System Electricity & hot water, making from clean hydrogen, Total efficiency reach 74% Efficiency of generation system is usually Set 1 st unit in the new official residence of Japan prime minister Apr.2005 Good morning! New home-making energy!

23 KAZEKAMOME

24 Creation of Black Box Technology Black Box Technology System LSI PEAKS Evacuated insulation High frequency inductive coil High quality of picture & sound Energy-saving Long life & energy-saving Flat Digital TV GP & V Products CHC/HFC-free Refrigerator Electrodeless fluorescent lamp (Pa-look ball)

25 V Products Green Products, off course! Leading Pana s 21 st century vision Products ECO Technology

26 Today s Agenda Company Profile Green Procurement & Green Purchasing Supply of Green Products Products Recycling

27 Legislation of Recycle JPN the Electric Appliance Recycling Law to be reviewed in 5 years after the law in effect Recycle cost collection method Adding to objected products PDP LED-TV Wave-oven etc. Will be issued in 2006/end thru 2007/beg EU China USA WEEE Directive came into effect on Aug.13, countries Spain etc. Started as EU Directive 4 countries Germany, France etc. Delay to take effect 4 countries UK etc. Legislation not concluded Will be issued in 2005 Details unknown, Taking effect will be in 2007 or later Under deliberation in 21 states (Main state etc.) Different concept by states

28 Establishment of Recycle Plant AddressYashiro-cho, Hyogo Floor, Capacity,, year Result,, cumulated Visitors, cumulated

29 Challenge of Product to Product Air-conditioner Cupper/Aluminum in H-exchanger will be reused to the parts of H-exchanger Indoor unit H-exchanger TV Brown tube glass will be reused as the material of brown tube Cast-metal in compressor will be reused to the casting parts of compressor Refrigerator Plastic will be reused to the new refrigerator s bottom board Outdoor unit H-exchanger Compressor Panel glass Washing machine Plastic will be reused to the new washing machine s base frame Funnel glass Cast-metal in compressor will be reused to the casting parts of compressor Bottom Board Compressor Base Frame

30 The Role of METEC, not only recycle plant Recycle line by product Product to Product R&D for the recycle technology Technology Development Center Environment Conference Coexist with Environment Disclosure of the plant Coexist with Community

31 From Panasonic Visit us to:

32 Sustainable Development through Creating Value for a New Life Style Improving Quality of Life Minimizing Environmental impact Creating Value for a New Life Style Ripple effect on society Coexist with global Environment Value for a New Lifestyle we envision will lead towards a sustainable society.

33 Thank you for your attention! Let s join to stop the warming earth Team minus 6%