Jun 09, 2023

Sustainability / Blog Posts

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, JapanPanasonic 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)

Overview of Panasonic Corporation’s internal carbon pricing system trial

Internal carbon price

20,000 yen per ton of CO2

Scope of application

  • Investments that contribute to carbon neutrality (decarbonization)
    - Advanced energy-saving control through IoT
    - Contribution to reducing emissions in society by, for example, enabling demand response
  • Investments that contribute to a circular economy
    - Development of products with longer life cycles (improved repairability, failure prediction, etc.)
    - Creation of a circular business model

How the system is used

Strategic investment decisions in the targeted investment areas are made by taking into account the CO2 reduction effect calculated using the internal carbon price.

Panasonic Group’s environmental efforts

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.

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

About Panasonic Corporation

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

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