Environmental Accounting

• Environmental conservation cost
• Breakdown of costs for global environmental conservation and resource circulation
• Breakdown of environmental conservation cost by region

Scope of environmental accounting
Accounting period from April 2006 to March 2007
Companies covered: Matsushita Electric Industrial Co., Ltd. and its affiliated companies across the globe, and PanaHome Corporation in Japan

(million yen)

Categories Investments Expenses* Major areas addressed Business area cost Pollution prevention cost 3,919 11,356 Renovation of wastewater disposal facilities, installation of deodorizing furnaces, and measures to remove asbestos Global environmental conservation cost 3,686 2,387 Introduction of cogeneration systems, repair of air conditioning equipment, and switchover to energy-saving fluorescent lamps Resource circulation cost 2,533 7,746 Introduction of systems for utilizing factory wastewater, appropriate disposal of waste, and collection of phosphoric acid Subtotal 10,139 21,489   Upstream and downstream cost 1,535 7,766 Measures to comply with the RoHS Directive (including investment in measuring equipment) and the introduction of systems for optimizing logistics Administration cost 150 9,820 Introduction of management system for chemical substances in products, reauditing, and rooftop forestation and its management R&D cost 1,619 16,341 Research on general energy conservation-related projects and the development of alternative technologies for chemical substances of concern to Panasonic Social activity cost 0 67 Contribution and support for environmental activities conducted by conservation organizations and local communities neighboring Panasonic locations Environmental remediation cost 330 2,325 Measures to remedy soil pollution by PCB, groundwater pollution, and repair of suction wells Total 13,773 57,807

• * Expenses include the cost of capital investment depreciation. Where the entire amount of investments and expenses cannot be regarded as environmental conservation cost alone, the difference or appropriate portions (divided proportionally) are calculated. R&D cost is limited to investments and expenses for environment-oriented technology development, itself and does not include costs for product development utilizing such technology.

[Related Data File]

• Visualizing cost-benefit performance to increase the efficiency of environmental preservation measures
• Investment trends and Expense trends
• Environmental conservation benefit