Resource Conservation in Factories

Panasonic's efforts to achieve zero emissions center not only on recycling, but also on the reduction of the absolute amount of waste generated, including waste that is valuable or recyclable. We have set a target of reducing total waste arisings per unit of sales^*1 by 20% by fiscal 2011 from 2001 levels. We aim to achieve zero waste emissions^*2, as a part of our efforts to reduce the mass of final disposal to close to zero through recycling.

• *1 Total waste arisings / (consolidated sales / Bank of Japan's corporate goods price index (electrical machinery and equipment))
• *2 Definition: A recycling rate of at least 99%

The fiscal 2008 target for reducing the total waste arisings per unit of sales was a 14% reduction from the fiscal 2001 level, and we have achieved a 38% reduction. In absolute terms, total waste arisings are decreasing in Japan, while they are increasing in Asia, Oceania, China, and Northeast Asia because of production increases in those regions. Due to a decrease in CRT production, increased production efficiency, and the introduction of waste acid and alkali treatment technology, the total waste arisings decreased 2.2% in Japan, increased 0.8% outside Japan, and decreased 0.7% on a global basis, compared with fiscal 2007.

Furthermore, the recycling rate in Japan reached 99.8% and all 138 manufacturing sites* in Japan achieved zero waste emissions, while the rate stands at 87.9% on a global basis. We will reinforce our efforts to boost recycling rates to achieve at 95% at sites outside Japan.

• * All sites under the domain

Panasonic has introduced ET Manifest, an IT-based waste management system, to handle the proper disposal of waste generated in the production process. This system traces and manages the waste generated at our sites by employing image and GPS data. In fiscal 2008, the following functions were added to enhance control:

1. Function to send out warnings about expiring licenses, contracts, and on-site verification;
2. Function to manage discharging sites centrally from the Group's management headquarters;
3. Function to make tabulation tasks easier and to produce reports for submission to the government;
4. Function to manage disposal site verification schedules.

Since fiscal 2008, this system has been introduced not only in manufacturing sites, but also in non-manufacturing sites. Starting with the introduction in Tokyo Branch Office in April 2007, the system is also being introduced at Matsushita Technical Services Co., Ltd. and Matsushita Logistics Co., Ltd.

• * An organization that operates an industrial waste management ledger system using digital data, in compliance with the Waste Management Law

In response to serious water shortages in some parts of the world, Panasonic endeavors to reduce water consumption. Our target for fiscal 2008 was to reduce water consumption per unit of sales* by 7% from the fiscal 2001 level, and the result was a reduction of 47%.

Absolute water consumption outside Japan reduced 13.0% from fiscal 2007 due to consolidation of some manufacturing sites. In Japan, water consumption increased 0.9% from fiscal 2007 despite reduction measures, such as using water collection and recycling equipment. On a global basis, water consumption decreased 3.6% from fiscal 2007.

We encourage each business site to set its own targets, based on respective regional characteristics. For example, effective utilization of water resources is a mandatory requirement under the CF Accreditation System in China, where water shortage is a serious problem.

• * Water consumption / (consolidated sales/Bank of Japan's corporate goods price index (electrical machinery and equipment))