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  1. 1.   Sustainability Management and Information Disclosure June 2, 2005 Yoshiaki Arai Corporate Environmental Affairs Division Matsushita Electric Industrial Co. , Ltd.
  2. 2. Corporate Profile of Matsushita Electric Foundation: 1918 Started business by only three people Overseas 47 % Japan 53 % Sales Overseas 55 % Japan 45 % Employees Founder Konosuke Matsushita (Business establishment at age 23) At the Kyoto retreat, Shinshin-An 8,713.6 billion yen / FY2005 Sales 334,752 (March,2005) No. of employees 45 countries Manufacturing 170 countries Sales Overseas: Approx. 6,000 companies Japan: Approx. 5,000 companies Suppliers Japan: 155 Overseas: 182 No. of manufacturing sites
  3. 3. Business Domains in Matsushita Group AVC Networks   (41%) Home Appliances   (14%) Victor Company of Japan(JVC) (8%) Components and Devices    (13%) (% of sales in FY2005) Other (7%) Matsushita Electric Works and PanaHome   (17%)
  4. 4. "Deposits" entrusted from Society Use for Society Contribution to the Prosperity of Society "Profit" is a Reward for our Contribution Re-invest for Further Contribution Return to Society Management Philosophy People Land Building Knowledge Information Time Funds A Company is a Public Entity Utilize Products and Services … Company Philosophy
  5. 5. Matsushita's Vision for the 21st Century Coexistence with the Global Environment Realizing a Ubiquitous Network Society Digital N etworks Services & Solutions Enrichment of people's lifestyles Components & Devices Production S ystems Business Vision Environmental Vision Environmental Statement Green Plan 2010 Environmental Vision Environmental Technology & Ecological Thinking Environment and energy business initiatives New challenges for "Green" Products Environmental communication "Green" marketing and distribution Environmental management and human resources development New challenges for Clean Factories Strengthening of product recycling Coexistence with the Global Environment Home Appliances Environmental Systems ET 2 !
  6. 6. 1972: Established the Environmental Management Office 1991: Formulated the Matsushita Environmental Charter 1995: Started development of the environmental management system 1997: Established the Environment Conference 1999: Completed the acquisition of the ISO 14001 certification at all manufacturing sites worldwide 2001: Started the home appliances recycling 2001: Held the Environmental Forum in Japan and Europe Announced the Environmental Vision and Green Plan 2010 2004: Completely eliminated lead solder from all products worldwide Corporate Environment Conference Environmental Forum 2001 (Freiburg,Germany) History of Environmental Activities
  7. 7. Status of Acquiring ISO 14001 Certification (As of March 2005) 18 58 73 17 26 60 10 1 2 * Since an increasing number of site acquire integrated certification, these figures are different from the number of individual sites. The establishment of environmental management systems (EMS) forms the foundation of all environmental programs. China and Northeast Asia Asia and Oceania Japan Americas Europe 265 30 235 Total 175 13 162 Overseas 90 17 73 Japan Total Non-manufac-turing Manufac-turing
  8. 8. Data-based Management and Information Disclosure Serve as the Driving Force for Environmental Initiatives <ul><li>We have collected data from all manufacturing sites since 199 1 . </li></ul><ul><li>(Currently from some 450 global sites) </li></ul><ul><li>Energy, water, waste, GHGs, chemical substances, air, water quality, noise, vibration, compliance with laws, logistics, communications and site overviews (ISO certification, etc.) </li></ul><ul><li>Started to collect data by fax, but now have a web-based system. </li></ul><ul><li>Annual management  Monthly management </li></ul>Environmental Performance Report <ul><li>We started to publish it in 1997 and distribute copies at the Shareholders' Meeting every June. </li></ul><ul><li>Publish ed data, specific examples, our vision for the future and key subjects. </li></ul><ul><li>Improved the content of our report by changing the name from Environmental Report to Sustainability Report. </li></ul><ul><li>Domain companies and sites disclose their independent data. </li></ul>Sustainability Report Report to administrative bodies Input and Collect Output (Disclosure)
  9. 9. Overall Structure of Sustainability Management Systems Search of environmental law-related information Environmental accounting Site reports Contained substances PRTR Environmental assessments Environmental impact DB Sustainability Report 3DCAD parts lists    Part DB Manifest Compliance with laws Waste DB Part DB Supplier DB Chemical substance DB Part DB Chemical substances 1 2 3 4 Energy General waste Water Environmental investments PRTR Industrial waste Comprehensive chemical substance management 1 3 4 Material purchase records Parts lists Manufacturing process DB ECO ASSIST Chemilution Industrial waste 2 5 GP-Web Material DB ET manifest Environmental performance Product chemical substance management Chemical substance management at factories ET manifest Environmental performance Product chemical substance management (Supplier surveys) (Data collection) Product assessments (Environment conscious design) Chemical substance management at factories Waste management at factories Product assessments 5
  10. 10. Information disclosure in compliance with guidelines Definitions of sustainability Visions & Action   Plans Minimum  requirements   Started to publish reports and disclose information Environmental Reports Economic performance and social responsibility reports Accountability   Leading enterprise    Advanced enterprise 2003 2004 2005  (Environment) Environmental Reporting Guidelines   (CSR) GRI Guidelines     Steps of the Development of our Non-Financial Reports Information disclosure, which started with the environmental sector, now complies with the guidelines and almost reaches to a complete level. 2002 2001 2000 1999 1997, 1998 Dialogue with community Incorporation in business operations
  11. 11. Overview of Environmental Reporting Corporate non-financial reports Environmental performance data Japanese site Japanese English Sustainability Data Files Domain environmental report Japanese site English site Japanese site (Japan) Chinese site (China) English site (Others) Site environmental report English site Individual domain companies' environmental performance data (Total 11 domains) Chinese Performance data including social aspects Individual manufacturing sites' environmental performance data (Japan: 153 sites; Overseas: 181 sites) Chinese Japanese English Third-party assessments Booklet Web Third-party assessments Third-party assessments Environmental Data Book The Panasonic Report for Sustainability
  12. 12. Ensure Compliance with Guidelines by Using the Web Disclose detailed information for each item. The Table of contents conform to the GRI Guidelines and Environmental Reporting Guidelines (Japanese Ministry of the Environment).
  13. 13. Backing of Society Serves as the Driving Force for Information Disclosure The Global Reporters 2004 Sustainability Reporting Awards (since 1997 in Japan) A wide variety of evaluation and ratings Japanese companies ranked in the top 50 <ul><li>(Ratings of Matsushita) </li></ul><ul><li>Grand Prize : 3 times </li></ul><ul><li>Outstanding Performance Prize : Once </li></ul><ul><li>Meister Award : Twice </li></ul>Ministry of the Environment <ul><li>(Ratings of Matsushita) </li></ul><ul><li>First Prize : Once </li></ul><ul><li>Outstanding Performance Prize : Twice </li></ul><ul><li>Excellence Prize : 4 times </li></ul>Toyo Keizai Inc. (publishing firm) <ul><li>Dow Jones </li></ul><ul><li>Sustainability </li></ul><ul><li>Index </li></ul><ul><li>FTSE4 good </li></ul><ul><li>Ethibel </li></ul>Socially Responsible Investment (SRI) <ul><li>Tohmatsu environmental ratings </li></ul><ul><li>Sustainability management level rankings </li></ul><ul><li>Environmental brand rankings </li></ul>Ratings and rankings UK and Netherlands Unilever   10 US HP 10 UK and Netherlands Royal Dutch Shell (oil) 8 UK and Australia Rio Tinto (mining) 8 Netherlands Rabobank (bank) 7 UK BAA (airport administration) 6 UK BT Group (telecom services) 4 UK British American Tobacco 4 UK BP (oil ) 3 Denmark Novo Nordisk (pharmaceutical) 2 UK Co-operative Financial Services (bank) 1 Country Enterprise Rank Sony Matsushita Electric 47th 39th Ito-Yokado 45th Daiwa Securities 34th
  14. 14. Information Disclosure and Communications Sustainability Report Environmental Forum Marketing Website Shareholders Investors Various Stakeholders Consumers NGOs NPOs Local residents Employees Business partners Academic organizations Mass media Government organizations
  15. 15. HFC-free Refrigerators NR-F462U Prevention of global warming   HFC gas HFC-free   Energy conservation     Annual power consumption (kWh/year) 10 years ago HFC-free refrigerators    1,190 Reduced to approx. 1/6 200 1,300 0 3 (1/400) 0   Global warming   coefficient   Ozone depletion   coefficient  
  16. 16. Information Disclosure (FY2004 results) 23 News releases 4 10 events Eco-Products 2003, etc. Participation in exhibitions 3 150,000 accesses Environmental website 2 350,000 copies Japanese, English and Chinese Sustainability Report 1 Newspaper advertisements: 7 TV commercials: 3 Newspaper advertisements TV commercials 5 1,058 Direct disclosure via e-mail, etc. 8 28 Replies to questionnaires 7 44 Lectures at symposiums and seminars 6
  17. 17. TV Commercials HFC-free refrigerator &quot;Clouds in the Sky&quot; HFC-free refrigerator &quot;Demonstration of Heat Insulation&quot; Dishwasher &quot;Faucets&quot; Tilted drum washing machine &quot;Miracle of Water&quot; Home appliance recycling &quot;Glass Sands&quot; Home appliance recycling Leave it to wool
  18. 18. Communications with Stakeholders Discuss new partnership among society, NGOs and corporations. Learn the readers' impressions and questions about our Sustainability Reports. Stakeholder meeting Meeting to Read the Sustainability Report
  19. 19. Reviews by Third Parties Third Party Comments Report of The Natural Step International Third Party Analysis Report of Azusa Sustainability Co.
  20. 20. Thank you for listening our presentation Environmental Technology & Ecological Thinking
  21. 21. Live broadcast at the Panasonic Center Tokyo Matsushita Eco Technology Center Co., Ltd. Opening of the factory to the public Some 38,000 people visited since 2001 Opening of Home Appliance Recycling Factory to the Public Publication on the website