Promoting Sustainability (ESG) Management
The Panasonic Group has established its Basic Business Philosophy, which outlines its approach to management practices and the way employees carry out their work, and conducts its business based on this policy.
Unraveling the Basic Business Philosophy (BBP) from an ESG perspective, it stipulates from the perspective of the environment and society that we make unparalleled contributions to solving global environmental problems, including climate change, and to the physical and spiritual health and well-being of people. Additionally, we will return the profits we obtain to the society and invest in further contributions. From the perspective of governance that sustains such contribution to the environment and society, the BBP also stipulates autonomous responsible management, the practice of each employee’s entrepreneurship, maximizing human resources and management based on collective wisdom, and the principle of “Fairness and Honesty” including the compliance.
As one of the operating companies in the Panasonic Group, Panasonic Energy will help resolve environmental and social issues through its corporate activities in accordance with the above ideas. At the same time, we are committed to promoting ESG-focused management in order to establish a transparent and fair management foundation, realize a sustainable society, and enhance medium- to long-term corporate value.
This is in line with our Mission, which is to “achieve a society in which the pursuit of happiness and a sustainable environment are harmonized free of conflict,” and represents an essential initiative for us.
Promoting Sustainability (ESG) Management
The Panasonic Group has established its Basic Business Philosophy, which outlines its approach to management practices and the way employees carry out their work, and conducts its business based on this policy.
Unraveling the Basic Business Philosophy (BBP) from an ESG perspective, it stipulates from the perspective of the environment and society that we make unparalleled contributions to solving global environmental problems, including climate change, and to the physical and spiritual health and well-being of people. Additionally, we will return the profits we obtain to the society and invest in further contributions. From the perspective of governance that sustains such contribution to the environment and society, the BBP also stipulates autonomous responsible management, the practice of each employee’s entrepreneurship, maximizing human resources and management based on collective wisdom, and the principle of “Fairness and Honesty” including the compliance.
As one of the operating companies in the Panasonic Group, Panasonic Energy will help resolve environmental and social issues through its corporate activities in accordance with the above ideas. At the same time, we are committed to promoting ESG-focused management in order to establish a transparent and fair management foundation, realize a sustainable society, and enhance medium- to long-term corporate value.
This is in line with our Mission, which is to “achieve a society in which the pursuit of happiness and a sustainable environment are harmonized free of conflict,” and represents an essential initiative for us.
ESG promotion structure
In fiscal year ending March 31, 2024 (fiscal 2024), Panasonic Energy established its ESG Committee, chaired by the President, to formulate an overall ESG plan, monitor its progress, and evaluate its achievement status. Based on the outcomes of its deliberations, the Committee makes annual reports and recommendations to the Board of Directors to ensure that ESG considerations are integrated into the management decision-making process.
In promoting specific measures, we designate Executive Officer, or other person to take charge of addressing each of the seven material issues, set medium- to long-term visions and key performance indicators (KPIs) for each material issue, and formulate action plans to achieve them. Based on progress reports from the aforementioned persons in charge, the ESG Committee monitors and evaluates activities, estimates the effectiveness of measures, and encourages their improvements. In these ways, we have established the PDCA cycle throughout the year.
We conducted a progress review of our annual activities in fiscal 2024 at the first meeting of fiscal 2025. In addition, the three material issues that are particularly important for improving our company’s growth potentialーnamely achieving decarbonization, realizing a circular society, and promoting human capital management and respecting for human rightsーwere also reviewed during fiscal 2024 to encourage steady implementation of measures.
The Committee also conducts regular study sessions that utilize outside knowledge to keep abreast of ESG-related social demands.
Furthermore, in the remuneration system for executive officers, performance-based remuneration linked to short term and med-long term business results is based on both ESG indicators as well as financial indicators, thereby strengthening the motivation to promote measures.
Our ESG management promotion structure
ESG promotion structure
In fiscal year ending March 31, 2024 (fiscal 2024), Panasonic Energy established its ESG Committee, chaired by the President, to formulate an overall ESG plan, monitor its progress, and evaluate its achievement status. Based on the outcomes of its deliberations, the Committee makes annual reports and recommendations to the Board of Directors to ensure that ESG considerations are integrated into the management decision-making process.
In promoting specific measures, we designate Executive Officer, or other person to take charge of addressing each of the seven material issues, set medium- to long-term visions and key performance indicators (KPIs) for each material issue, and formulate action plans to achieve them. Based on progress reports from the aforementioned persons in charge, the ESG Committee monitors and evaluates activities, estimates the effectiveness of measures, and encourages their improvements. In these ways, we have established the PDCA cycle throughout the year.
We conducted a progress review of our annual activities in fiscal 2024 at the first meeting of fiscal 2025. In addition, the three material issues that are particularly important for improving our company’s growth potentialーnamely achieving decarbonization, realizing a circular society, and promoting human capital management and respecting for human rightsーwere also reviewed during fiscal 2024 to encourage steady implementation of measures.
The Committee also conducts regular study sessions that utilize outside knowledge to keep abreast of ESG-related social demands.
Furthermore, in the remuneration system for executive officers, performance-based remuneration linked to short term and med-long term business results is based on both ESG indicators as well as financial indicators, thereby strengthening the motivation to promote measures.
Our ESG management promotion structure
Material issues (materiality)
We have identified material issues (materiality) that we must address from an environmental, social, and governance (ESG) perspective in order to contribute to a sustainable society.
Materiality identification process
Panasonic Energy Identified seven material issues using the following four steps.
Step.1
List social issues
We listed 71 social issues that are candidates for materiality
Step.2
Evaluate their importance from the perspective of Panasonic Energy
For each item on the list of social issues, we evaluated its impact on our business and relevance to our policies from Panasonic Energy’s perspective.
Step.3
Evaluate their importance from a stakeholder perspective
For each item on the list of social issues, we evaluated its importance from the perspective of all stakeholders, based on the opinions we have obtained through dialogue with stakeholders to date and the interest of investors and certifying organizations
Step.4
Deliberate and identify
After sorting out our thoughts on ESG management and what we aim to achieve, we identified seven material issues through multiple rounds of deliberations between the officers, including the Representative Director, and staffs of the relevant departments.
Materiality matrix
We evaluated social issues from two perspectives: their importance to Panasonic Energy and their importance to our stakeholders, and plotted the most important of these issues in the materiality matrix below
Seven identified material issues and specific examples of initiatives
● Materiality relating to the environment (E)
● Materiality relating to society (S)
● Materiality relating to governance (G)
Achieving decarbonization
- Reduction of greenhouse gas (GHG) emissions
- Contribution to reducing CO2 emissions in society
- Effective use of renewable energy
- Local procurement
Realizing a circular society
- Building a recycling-oriented supply chain
- Development of recycling-oriented products
- Waste reduction
- Promotion of recycling
Providing energy for the pursuit of happiness
- Contributing to a safe and secure society
- Eradication of poverty and hunger
- Contributing to local communities
Promoting human capital management and respecting human rights
- Ensuring occupational safety and health
- Promotion of human resource development
- Promotion of Diversity, Equity & Inclusion (DEI)
- Prevention of discrimination and child/forced labour
Responsible supply chain
- Responsible procurement of minerals
- Respect for human rights in the supply chain
- Supply chain management
Corporate governance
- Strengthening the functions of the Board of Directors and management team
- Ensuring transparency
Thorough compliance
- Pursuit of quality and product safety
- Compliance with laws and regulations
- Ensuring information security
Material issues (materiality)
We have identified material issues (materiality) that we must address from an environmental, social, and governance (ESG) perspective in order to contribute to a sustainable society.
Materiality identification process
Panasonic Energy Identified seven material issues using the following four steps.
Step.1
List social issues
We listed 71 social issues that are candidates for materiality
Step.2
Evaluate their importance from the perspective of Panasonic Energy
For each item on the list of social issues, we evaluated its impact on our business and relevance to our policies from Panasonic Energy’s perspective.
Step.3
Evaluate their importance from a stakeholder perspective
For each item on the list of social issues, we evaluated its importance from the perspective of all stakeholders, based on the opinions we have obtained through dialogue with stakeholders to date and the interest of investors and certifying organizations
Step.4
Deliberate and identify
After sorting out our thoughts on ESG management and what we aim to achieve, we identified seven material issues through multiple rounds of deliberations between the officers, including the Representative Director, and staffs of the relevant departments.
Materiality matrix
We evaluated social issues from two perspectives: their importance to Panasonic Energy and their importance to our stakeholders, and plotted the most important of these issues in the materiality matrix below
Seven identified material issues and specific examples of initiatives
● Materiality relating to the environment (E)
● Materiality relating to society (S)
● Materiality relating to governance (G)
Achieving decarbonization
- Reduction of greenhouse gas (GHG) emissions
- Contribution to reducing CO2 emissions in society
- Effective use of renewable energy
- Local procurement
Realizing a circular society
- Building a recycling-oriented supply chain
- Development of recycling-oriented products
- Waste reduction
- Promotion of recycling
Providing energy for the pursuit of happiness
- Contributing to a safe and secure society
- Eradication of poverty and hunger
- Contributing to local communities
Promoting human capital management and respecting human rights
- Ensuring occupational safety and health
- Promotion of human resource development
- Promotion of Diversity, Equity & Inclusion (DEI)
- Prevention of discrimination and child/forced labour
Responsible supply chain
- Responsible procurement of minerals
- Respect for human rights in the supply chain
- Supply chain management
Corporate governance
- Strengthening the functions of the Board of Directors and management team
- Ensuring transparency
Thorough compliance
- Pursuit of quality and product safety
- Compliance with laws and regulations
- Ensuring information security
KPIs and progress in material issues (materiality)
The KPIs, targets for fiscal 2030, and results so far for the identified material issues (materiality) are as follows.
Achieving Decarbonization
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| Environmental Contribution Index | 4.5 | 4.0 | 15 |
| Avoided CO2 emissions (10,000 t-CO2)*1 | 1,493 | 1,271 | 6,000 |
| Zero-CO2 factories All sites*2 | 10 sites | 14 sites | All sites (FY2029) |
| Electricity renewable energy ratio*3 | 23% | 32% | 100% |
| Carbon footprint*4 | 100% (FY2022) | 100% | Vs FY2022:–50% |
Realizing a Circular Society
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| Recycled material utilization rate (cathode materials, copper foil) | - | - | Compliance with local regulations in each country |
| Recycling rate (in-house waste) | 98.7% | 97.6% | 99% or more (less than 1% going to landfill) |
Providing Energy for the Pursuit of Happiness
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| Sales of stationary storage batteries that support clean energy*5 | 1.3 | 1.9 | 4.0 |
| Sales of healthcare storage batteries that support everyday life*5 | 1.3 | 0.7 | 2.4 |
| Sales of dry batteries that provide support in emergencies*5,6 | 1.1 | 1.2 | 2.2 |
| Sales of batteries that protect the security of mobility*5,7 | 1.0 | 1.1 | 8.2 |
Promoting Human Capital Management and Respecting Human Rights
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| EOS Score: Employee engagement | 70pt | 70pt | 80pt |
| EOS Score: Employee enablement | 63pt | 62pt | 75pt |
| Percentage of women in managerial positions*8 | 5.8% | 6.5% | 15% |
| Rate of childcare leave taken among men and women*9 | Women 100%/Men 56.2% | Women 100%/Men 58% | Women/Men 100% |
| Health management index (Japan: Ministry of Economy, Trade and Industry) | 52.5pt | 55.7pt | White 500 |
| Number of fatalities due to industrial accidents | 0 incidents | 0 incidents | 0 incidents |
| Number of industrial accidents (lost time incidents in Japan)*9 | 4 incidents | 5 incidents | 0 incidents |
| Percentage of implementation of self-assessments related to human rights and labour (overseas manufacturing subsidiaries) and percentage of executed corrective plans | 100％ | 100％ | 100％ |
Responsible Supply Chain
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| Written CSR consent acquisition rate from tier 1 suppliers | 46％ | 62％ | 100％ |
| Ratio of tier 1 suppliers with an A-rank CSR self-assessment | 77％ | 81％ | 100％ |
| Ratio of assurance provided by conducting CSR audits of tier 1 Suppliers | Not implemented | 10% | 100％ |
| CMRT/EMRT collection rate | 98% | 99% | 100％ |
| Utilization ratio of conformant/active smelters | 82% | 82% | 100％ |
Thorough Compliance
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| Number of serious product incidents*10 | 0 | 0 | 0 |
| Number of serious legal and compliance violations*11 | 0 | 0 | 0 |
| Number of information security incidents | 2 | 2 | 0 |
*1 : The amount of CO2 emissions reductions achieved for our customers and society as a result of the introduction of our products, compared to the baseline level where no products were introduced.
*2 : Factories that have achieved virtually zero CO2 emissions by conserving energy, introducing renewable energy, and using credits.
*3 : Percentage of electricity, fuel, etc. used by Panasonic Energy that is derived from renewable energy sources (includes certificates, credits, and other externally procured items).
*4 : CO2 emissions per unit capacity of lithium-ion batteries for automotive use produced at the North American factory.
*5 : Sales volume with fiscal 2022 set as 1
*6 : Sales in the three key regions
*7 : Automotive batteries excluding those for drive applications
*8 : Non-consolidated (domestic)
*9 : Consolidated (domestic)
*10 : Number of product incidents leading to safety-related recalls
*11 : The criteria are based on internal rules and regulations, etc.
KPIs and progress in material issues (materiality)
The KPIs, targets for fiscal 2030, and results so far for the identified material issues (materiality) are as follows.
Achieving Decarbonization
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| Environmental Contribution Index | 4.5 | 4.0 | 15 |
| Avoided CO2 emissions (10,000 t-CO2)*1 | 1,493 | 1,271 | 6,000 |
| Zero-CO2 factories All sites*2 | 10 sites | 14 sites | All sites (FY2029) |
| Electricity renewable energy ratio*3 | 23% | 32% | 100% |
| Carbon footprint*4 | 100% (FY2022) | 100% | Vs FY2022:–50% |
Realizing a Circular Society
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| Recycled material utilization rate (cathode materials, copper foil) | - | - | Compliance with local regulations in each country |
| Recycling rate (in-house waste) | 98.7% | 97.6% | 99% or more (less than 1% going to landfill) |
Providing Energy for the Pursuit of Happiness
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| Sales of stationary storage batteries that support clean energy*5 | 1.3 | 1.9 | 4.0 |
| Sales of healthcare storage batteries that support everyday life*5 | 1.3 | 0.7 | 2.4 |
| Sales of dry batteries that provide support in emergencies*5,6 | 1.1 | 1.2 | 2.2 |
| Sales of batteries that protect the security of mobility*5,7 | 1.0 | 1.1 | 8.2 |
Promoting Human Capital Management and Respecting Human Rights
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| EOS Score: Employee engagement | 70pt | 70pt | 80pt |
| EOS Score: Employee enablement | 63pt | 62pt | 75pt |
| Percentage of women in managerial positions*8 | 5.8% | 6.5% | 15% |
| Rate of childcare leave taken among men and women*9 | Women 100%/Men 56.2% | Women 100%/Men 58% | Women/Men 100% |
| Health management index (Japan: Ministry of Economy, Trade and Industry) | 52.5pt | 55.7pt | White 500 |
| Number of fatalities due to industrial accidents | 0 incidents | 0 incidents | 0 incidents |
| Number of industrial accidents (lost time incidents in Japan)*9 | 4 incidents | 5 incidents | 0 incidents |
| Percentage of implementation of self-assessments related to human rights and labour (overseas manufacturing subsidiaries) and percentage of executed corrective plans | 100％ | 100％ | 100％ |
Responsible Supply Chain
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| Written CSR consent acquisition rate from tier 1 suppliers | 46％ | 62％ | 100％ |
| Ratio of tier 1 suppliers with an A-rank CSR self-assessment | 77％ | 81％ | 100％ |
| Ratio of assurance provided by conducting CSR audits of tier 1 Suppliers | Not implemented | 10% | 100％ |
| CMRT/EMRT collection rate | 98% | 99% | 100％ |
| Utilization ratio of conformant/active smelters | 82% | 82% | 100％ |
Thorough Compliance
| KPI | Result FY2023 | Result FY2024 | Target FY2031 |
|---|---|---|---|
| Number of serious product incidents*10 | 0 | 0 | 0 |
| Number of serious legal and compliance violations*11 | 0 | 0 | 0 |
| Number of information security incidents | 2 | 2 | 0 |
*1 : The amount of CO2 emissions reductions achieved for our customers and society as a result of the introduction of our products, compared to the baseline level where no products were introduced.
*2 : Factories that have achieved virtually zero CO2 emissions by conserving energy, introducing renewable energy, and using credits.
*3 : Percentage of electricity, fuel, etc. used by Panasonic Energy that is derived from renewable energy sources (includes certificates, credits, and other externally procured items).
*4 : CO2 emissions per unit capacity of lithium-ion batteries for automotive use produced at the North American factory.
*5 : Sales volume with fiscal 2022 set as 1
*6 : Sales in the three key regions
*7 : Automotive batteries excluding those for drive applications
*8 : Non-consolidated (domestic)
*9 : Consolidated (domestic)
*10 : Number of product incidents leading to safety-related recalls
*11 : The criteria are based on internal rules and regulations, etc.
Dialogue with stakeholders
We place great importance on dialogue with a wide range of stakeholders around the world, including customers, investors, suppliers, governments, industry associations, NPOs and NGOs, local communities, and employees, and engage in dialogue at various stages of our operations. We also provide information on our activities to our stakeholders, and at the same time receive feedback from them regarding their expectations and concerns about us. We will incorporate such feedback into our business, product development, and ESG management activities to further enhance our corporate value.
Major stakeholders
Dialogue with stakeholders
We place great importance on dialogue with a wide range of stakeholders around the world, including customers, investors, suppliers, governments, industry associations, NPOs and NGOs, local communities, and employees, and engage in dialogue at various stages of our operations. We also provide information on our activities to our stakeholders, and at the same time receive feedback from them regarding their expectations and concerns about us. We will incorporate such feedback into our business, product development, and ESG management activities to further enhance our corporate value.
Major stakeholders
