Manufacturing That Returns to Nature—In Pursuit of “Nature Positive” Economy

The Panasonic Group is promoting a long-term environmental vision, Panasonic GREEN IMPACT (PGI). Complementing initiatives for carbon neutrality and circular economy, Panasonic Holdings Corporation (PHD) is also investing in the nature positive* economy, promoting research and development with green transformation (GX) as a pillar of its growth strategy. In August 2024, Dr. Naoki Adachi, CEO of Response Ability, Inc. and Executive Director of Japan Business Initiative for Biodiversity (JBIB), sat down with Tatsuo Ogawa, PHD Executive Officer and Group CTO, for a dialogue on the importance of corporate initiatives for nature positive economy, what the Panasonic Group should be aiming for, and examples of nature positive initiatives within the Group. 

* Nature Positive: halting and reversing biodiversity loss

The session began with Dr. Adachi explaining why biodiversity is critical to human economic activity:

The global target agreed to at the 15th Conference of the Parties to the Convention on Biological Diversity (COP 15) in December 2022 is referred to as “nature positive.” With 2020 as the base year, the goal is to halt and reverse biodiversity loss to put nature on a path to recovery for the benefit of people and planet by 2030 and to fully restore our ecosystems by 2050.

Climate change, circular economy, and biodiversity crisis are all “nature” issues. Ecosystem services—provisioning, regulating, cultural, and supporting servies—have yielded a variety of benefits to humans but are breaking down under the burden of human economic activity. Biodiversity is “natural capital.” We must acknowledge that our lives and business activities depend on biodiversity—and that if we negatively impact biodiversity, then that natural capital will be degraded and eventually disappear, then human economic activity will no longer be possible.

The Economics of Biodiversity: The Dasgupta Review, a report commissioned by the UK Treasury and published in 2021, states that “the economy is only one part of the environment (biosphere).” Along with this awareness is the importance of utilizing nature to solve problems in the future—and to do that, we need to increase the area of natural ecosystems.

Companies must hone their technical ability to harness the power and functions of nature and strengthen their managerial skills so they can launch businesses that increase nature.

Ogawa asked Dr. Adachi about the direction the Group should take in its nature positive efforts, and shared his own thoughts on the realization of nature positive economy from a corporate perspective.

Ogawa: The Panasonic Group’s nature positive initiative is just getting started. What direction should we be taking?

Dr. Adachi: It’s wonderful that you are broadly disclosing the Group’s impact on nature in the Sustainability Data Book and other publications. I think you can find some clues by reviewing your impact not only within the Group but also across your supply and value chains.

Ogawa: As a company, our perspective tends to be limited to things that have a direct impact on our business today. Based on our firm understanding of “the concept that biodiversity underlies all economic activity,” we will thoroughly promote our circular economy initiative. By expanding our perspective to the entirety of nature and the planet, we believe that we will be able to create new relationships with partner companies.

Dr. Adachi: In the coming age of nature positive economy, I believe a new market will emerge. I think it would be a good idea to take another look at nature, to make good use of nature to solve problems, and to consider the upfront investment that will be required.

The Panasonic Group has multiple initiatives under way to develop and commercialize technologies and realize a nature positive economy, driven by the passion of employees who want to make a positive impact on the environment.

Let’s take a closer look at three initiatives:

• Bio CO₂ Transformation technology “Novitek”
• Restoring regional flora—Kusatsu Factory “Forest of Coexistence”
• Open Innovation “Nawashiro” Initiative

Bio CO₂ Transformation technology uses atmospheric CO₂ as the main source to produce a component that stimulates plant growth by harnessing photosynthetic microorganisms. Expected to be commercialized as “Novitek” by the end of FY2025, it can promote decarbonization while stimulating plant growth and increasing crop yields.

Novitek developer Seiji Kojima of the PHD Technology Division had this to say:

Kojima: We sought a dual vision of reducing environmental burden and creating economic value. When working with nature, the idea is to chain and amplify value in multiple stages, leveraging the power of nature at each stage.
Bio CO₂ Transformation starts with atmospheric CO₂. Even when crops are being sprayed, the system seeks to improve productivity by making use of atmospheric CO₂. Depicting this kind of value chain and amplification structure for initiatives that focus on the environment and nature is important. 

The Forest of Coexistence covers 13,000 m² at Panasonic Corporation (Panasonic)’s Kusatsu Factory of in Kusatsu City, Shiga Prefecture and is positioned as an important green space under Panasonic’s Ecological Network Concept, which seeks to contribute to local biodiversity while preserving the landscape.

Takahiro Nakano, from the General Affairs Department of Panasonic’s Living Appliances and Solutions Company, manages the Forest of Coexistence and explains its significance:

Nakano: When founder Konosuke Matsushita visited the Kusatsu Factory in 1970, he said, “Kusatsu (Factory) is made with an emotional atmosphere by fully utilizing (or taking advantage of ) nature. In fact, that’s how I want it to be.” Since then, the Kusatsu Factory has been developed as a “park factory” surrounded by greenery and flowers and cherished by local residents, the “most advanced factory in the Orient” that enriches people’s lives.
The company introduced the Ecological Network Concept to create a green space in a corner of the site and secure a habitat for wildlife while connecting it with the surrounding green space and waterfront. Known as the “Forest of Coexistence,” development began in October 2011.

Nakano: The site includes waterfront, grassland, and woodland and serves as a model for “satoyama” (rural spaces in which humans and nature coexist). A team of experts monitors the restoration status of the satoyama environment. Employees manage green areas, monitor for invasive species, and raise seedlings and plant trees. The number of plant and animal species has recovered from approximately 580 species in 2011 to approximately 840 in 2016. 

Nakano: In October 2023, the Ministry of the Environment certified the area as an “OECM (Other Effective area based Conservation Measure) site” and the site was registered in an international database as one of Japan’s OECMs in August 2024.

Since April 2023, PHD has been launching our system for nurturing technologies in their seed stage, called “Nawashiro.” Inspired by the Japanese practice of growing rice seedlings, which requires careful attention and effort, “Nawashiro” reflects our commitment to nurturing technologies without cutting corners. It leverages collaboration with academia, providing resources and mentorship to help emerging technologies develop until they are ready for the market, embodying our dedication to fostering innovation. Koichi Matsumura of PHD’s Technology Planning Office, explains: 

Matsumura: This initiative is known as “Nawashiro” because it nurtures the seeds of technology. Our goal is to create themes that actively utilize industry-academia collaboration.

Matsumura: Our approach is to study the subject area and then “go into the field for hands-on work.” We analyze data and facts using the knowledge we’ve gained, and then compile the results, hypotheses, and facts we think will be of interest to professors at Kyoto University and other universities with whom we collaborate. Today we are exploring and analyzing the following activities:

• Collaboration with Kyoto University: Understanding the Mechanism of Natural Cycles
  Based on hill-to-ocean linkage studies, we seek to establish sensing, modeling, and actuation methods for material circulation in forests/soil. We collect and analyze data from sensors that have been installed at various sites.

Matsumura: We want to create opportunities to accelerate research by sharing the findings and data obtained here with researchers, including those outside of “Nawashiro.”

At the conclusion of their dialog, Dr. Adachi and Ogawa offered some closing comments. 

Dr. Adachi: As part of our efforts to realize nature positive economy, I would like you to promote manufacturing based on recycling from the design stage.

Ogawa: In July 2024, the PHD Corporate Technology Sector formulated a “Technology Future Vision” that includes themes that cannot be separated from nature—including energy, water, and food. Nature is the source of everything. Using this as our starting point, we will consider new ways of doing business, of creating new communities, of producing food and new energy, and new ways of recycling resources—all aligned to the theme of “nature.” We will also consider combining nature and AI. By doing so, a new future will open up for the Panasonic Group.