Resource Conservation

In order to use resources responsibly and prevent pollution, countries around the world have established legal frameworks and mechanisms for recycling. Examples include Japan's Law for Recycling of Specified Kinds of Home Appliances (Home Appliance Recycling Law) and Law for the Promotion of Effective Utilization of Resources, the European Union's Directive on Waste Electrical and Electronic Equipment (WEEE Directive), and similar laws enacted by U.S. states. In February 2009, China also established a legal framework for recycling. Panasonic not only complies with all laws and regulations involving recycling in each country, but when establishing systems to collect and recycle our products, we also take into consideration the recycling infrastructures in each country. Our aim is to create the best possible systems from the standpoint of environmental and economic considerations as well as systems that are feasible and sustainable.

In Europe, there have been a number of unfortunate violations of environmental laws, including companies that release of fluorocarbons (CFCs and others) to cut recycling expenses. ENE EcologyNet Europe GmbH (ENE), which we established in Germany in April 2005, has not recorded a single violation since beginning operations. Maintaining this spotless record has earned ENE a reputation as one of Europe's leading recycling management companies.

The U.S. state of Minnesota enacted a recycling law in July 2007. The following September, Panasonic was a major participant in the establishment of Electronic Manufacturers Recycling Management Company, LLC (MRM), which recycles TVs, PCs and other products. MRM also started operations in other states that enacted their own recycling laws. In November 2008, Panasonic launched a National Voluntary Program operated by MRM.

To prepare for the enactment of a recycling law in China January 2011, Panasonic is working actively with the Chinese government as a member of the Executive Committee of Foreign Investment Companies (ECFIC) to establish the necessary systems.

Through these types of initiatives, Panasonic is working to meet our legal and social obligations as a manufacturer in five regions of the world. We are dedicated to continue fulfilling these obligations in the most efficient manner through the proper division of responsibilities based on discussions with all stakeholders.

Factory-generated wastes and revenue-generating waste from our factories can be divided into three major categories. The first category is a recycled amount, which can be recycled. This includes all materials that can be recycled whether they are sold, given away at no cost, or require a payment for disposal. The second category is reduced amount that can be made smaller and/or lighter by either incineration or dehydration. The third category is a final disposal amount. Our waste material reduction programs aim for not only lowering the volume of waste for final disposal, but also the category 1 and 2 materials that are recycled or reused.

We aim to achieve zero waste emissions*1, as part of our efforts to reduce the mass of final disposal to close to zero through recycling. In fiscal 2009, we achieved a target of reducing total waste arisings per unit of sales by 16% with a result of 43% reduction. In a total volume, we have reduced by 17.1% compared to the previous fiscal year. Since we have already surpassed fiscal 2011 target, we have newly set a target based on per basic unit*2 without Bank of Japan's corporate goods price index, and aim for reducing by 14% in fiscal 2010 and 16% in fiscal 2011.

Our fiscal 2009 recycling rate in Japan is 99.7%. In fiscal 2008, all 138 business sites in Japan*3 achieved zero waste emissions and in fiscal 2009, all business sites except one in Japan, a total of 134, reached at this level. Outside Japan, our fiscal 2009 recycling rate was 91.7% against a target of 90%. We plan to raise the average recycling rate for the entire group outside of Japan to at least 95% in fiscal 2011.

• *1 Definition: A recycling rate of at least 99%.
  Recycling rate = Waste materials recycled / (Waste materials recycled + final disposal)
• *2 Total waste arisings / (consolidated sales / Bank of Japan's corporate goods price index (electrical machinery and equipment))
• *3 Total waste arisings / consolidated sales
  (Achievements in fiscal 2009 by the above calculation was lower by 12% than that in fiscal 2001)

In response to serious water shortages worldwide, Panasonic endeavors to reduce water consumption. Our target for fiscal 2009 was to reduce water consumption per unit of sales*1 by 8% from the fiscal 2001 level and the result was a reduction of 48%. Since we have already surpassed fiscal 2011 target, we have newly set a target based on per basic unit*2 without Bank of Japan's corporate goods price index, and aim for reducing by 22% in fiscal 2010 and 24% in fiscal 2011.

In terms of an amount of global water consumption, we have reduced by 12% compared to fiscal 2008. In China, where water shortage is a serious problem, effective utilization of water resources is a mandatory requirement under Panasonic's internal factory accreditation system. While per basic unit of water consumption*3 in China in fiscal 2009 was down 2.7% from the previous year worldwide, the value of factories participating in the China Eco Project was an average of 5.1% at. We plan to continue to lower water consumption by setting targets that reflect the characteristics of each region of the world.

• *1 Water consumption / (consolidated sales/Bank of Japan's corporate goods price index (electrical machinery and equipment))
• *2 Water used / Consolidated sales (Achievements in fiscal 2009 by the above calculation was lower by 20% than that in fiscal 2001)
• *3 Water used / Production volume