Trial Introduction of an Internal Carbon Pricing System, Using the Amount of CO₂ Emissions Reductions over the Product’s Lifetime and the Contribution to CO₂ Reductions in Society as Criteria for Investment Decisions

• Accelerating contributions to decarbonization and a circular economy from a long-term perspective

• System to be first implemented in the Living Appliances and Solutions Company in fiscal 2024

Osaka, Japan – Panasonic Corporation (Head office: Minato-ku, Tokyo; President and CEO: Masahiro Shinada) today announced that it will implement an Internal Carbon Pricing (ICP) system on a trial basis starting in fiscal 2024, the year ending March 2024. The system aims to accelerate the competitiveness of businesses that contribute to carbon neutrality (decarbonization) and a circular economy, and uses the amount of Scope 3* CO₂ emissions reductions in the company’s entire value chain and the level of contribution to CO₂ reduction in society as criteria for investment decisions. Panasonic’s pilot ICP system will set the carbon price at 20,000 yen per ton of CO₂ and will first be introduced in the Living Appliances and Solutions Company, and then phased in after fiscal 2025.

In pursuit of both affluent lifestyles and solutions to social and global issues, Panasonic is striving to make more energy-efficient and longer life-cycle products, accelerate electrification, and efficiently use hydrogen and other clean energy sources. The pilot ICP system will be adopted independently according to the characteristics of each business, in addition to the Group’s common ICP system designed for capital investment decisions in Scopes 1 and 2*. Panasonic will make strategic investment decisions with CO₂ reduction effects in mind, focusing on areas that go beyond individual products and are expected to reduce Scope 3 CO₂ emissions, such as combining longer life-cycle product design and a circular business model, as well as areas that accelerate contributions to reducing CO₂ emissions in society.

During fiscal 2024, the company plans to invest in businesses that contribute to decarbonization and a circular economy using the pilot ICP system at the Living Appliances and Solutions Company, which is engaged in the home appliances business, and to verify the effectiveness of the system in order to improve it. In fiscal 2025, the implementation of the system will be gradually expanded for future company-wide deployment. Panasonic will adopt an ICP system that best fits the characteristics of its businesses, prioritizing long-term investments in businesses that contribute to decarbonization and a circular economy.

In order to fulfill its mission of achieving the well-being of people, society, and the planet, Panasonic aims to create a society that enables both well-being and sustainability. With the twin pillars of decarbonization and a circular economy, the company will continue to promote businesses that contribute to the global environment from a long-term perspective.

*Classification based on the GHG Protocol (a standard for calculating and reporting greenhouse gas emissions)

The Panasonic Group has adopted the long-term environmental vision, Panasonic GREEN IMPACT (PGI), to achieve both a better life and a sustainable global environment. It aims to achieve net-zero CO₂ emissions from its business operations by 2030 and create an impact equivalent to reducing emissions by more than 300 million tons*1, or about 1% of the current total global emissions of 33 billion tons*2.

Notes:
*1: Based on 2020 CO₂ emission factors
*2: Energy-derived CO₂ emissions for 2019 were 33.6 billion tons, according to the IEA.

Panasonic Corporation offers products and services for a variety of living environments, ranging from homes to stores to offices and cities. There are five businesses at the core of Panasonic Corporation: Living Appliances and Solutions Company, Heating & Ventilation A/C Company, Cold Chain Solutions Company, Electric Works Company and China and Northeast Asia Company. The operating company reported consolidated net sales of 3,483.3 billion yen for the year ended March 31, 2022. Panasonic Corporation is committed to fulfilling the mission of Life Tech & Ideas: For the wellbeing of people, society and the planet, and embraces the vision of becoming the best partner of your life with human-centric technology and innovation. Learn more about Panasonic: https://www.panasonic.com/global/about.html