Procurement Activities

The Panasonic Excellent Partners Meeting took place on November 7, 2008, attended by 304 participants from 229 Panasonic suppliers, including 26 executives from 19 companies outside Japan. In prior years, we held a Conference of Presidents of Key Manufacturers that was attended by only representatives of companies that actually process various materials. The November 2008 meeting was expanded to include representatives of trading companies, logistics companies, and many other partner companies worldwide. Bringing these people together gave everyone a better understanding of our commitment to CSR Procurement. Furthermore, exchanges of ideas at the meeting allowed all participants to adopt a unified stance for contributing to society.

At the Panasonic Excellent Partners Meeting, company president Fumio Ohtsubo explained Panasonic's strategic goals and what is being done to accomplish these goals. He also discussed the company name change and the reasons for the decision to use a single brand for all businesses. Mr. Ohtsubo emphasized the need for the cooperation of suppliers to create new types of components and production processes for Panasonic products. Innovation in manufacturing is impossible without fresh ideas that incorporate the input of suppliers.

The next speech was by Koji Itazaki, director of Panasonic's Corporate Procurement Division, who explained the Panasonic Group's policy for procurement. He stated that the meeting was the most important announcement for suppliers, attended by executives from suppliers throughout the world, and that it helped improve understanding of Panasonic's dedication to responsible procurement, adding that the new format also served as an opportunity for two-way communication, allowing suppliers a chance to tell Panasonic about their issues and ideas.

As a new means of deepening partnerships with suppliers, Panasonic also gave awards to companies that made particularly significant contributions to CSR Procurement. These awards are intended to provide for periodic evaluations of the activities of suppliers and for information sharing to ensure the soundness of the "check" step of the PDCA cycle for building partnerships.

Grand prizes and other recognitions were awarded in five categories: new technologies, product quality, environmental activities, the supply chain and cost reductions. Companies making the greatest contribution in each of these areas were selected to receive Best Partner Prize. Starting in fiscal 2010, the Panasonic Excellent Partners Meeting will also include accomplishments of the ECO-VC (value creation) Initiative, a new campaign to protect the global environment and streamline business operations.

We plan to continue expanding the role of the Panasonic Excellent Partners Meeting. Holding this event reinforces partnerships with outstanding suppliers and provides a forum for sharing information about successful CSR Procurement activities. This cooperation creates a foundation for the joint pursuit of global excellence in procurement operations for the benefit of people around the world.

There is an urgent need to reduce CO₂ emissions in order to protect the global environment. The Panasonic Group is tackling this issue in many ways, including programs to lower these emissions in the supply chain.

In fiscal 2008, we started a trial CO₂ emission reduction program by asking for the participation of members of the Panasonic Kyo-ei(co-prosperity suppliers) Association, which consists of companies that we use for outsourcing. This program grew to include all 102 members of this association in fiscal 2009.

In fiscal 2010, Panasonic started the ECO-VC Initiative with the aim of having global suppliers work together to cut CO₂ emissions and make products more competitive. Suppliers concentrate on various improvements for materials and parts used in Panasonic products. Conserving resources and energy, recycling materials, developing new materials, and improving cargo transport methods are prime examples. We plan to use this initiative to make our products even more environmentally responsible.

The first phase of Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), a new European Union (EU) regulation requiring the registration of chemicals, was enacted in June 2007. REACH has a much broader scope than the Restriction of Hazardous Substances (RoHS), a European Directive already in force that prohibits the use of specified substances. REACH covers all chemicals and products that use chemicals. To ensure the safe use of chemicals, companies must track and monitor across the entire supply chain the amount of chemicals contained in products and materials and disseminate information on hazards posed by these chemicals. This requirement applies to everything from raw materials to finished products. For Substances of Very High Concern (SVHC), such as toxins, carcinogens and substances that accumulate in the human body, companies are required to submit declarations and disclose other information.

Our response goes beyond simply complying with REACH regulations. We are a participant in the Joint Article Management Promotion-consortium (JAMP), which aims to monitor levels of all substances classified as SVHC. We have started performing the necessary surveys. The Panasonic Group's Chemical Substances Management Rank Guidelines, which have been made public, already include all compounds that are candidates for classification as SVHC. Furthermore, we are advocating the monitoring of these compounds at upstream stages of the supply chain along with the dissemination of this information. Oversight of chemicals contained in our products also includes the collection of information and creation of a database by using GP-Web (Green Procurement Web), our extranet information system.