Sustainability Management and Information Disclosure June 2, 2005 Yoshiaki Arai Corporate Environmental Affairs Division Matsushita Electric Industrial Co., Ltd. Corporate Profile of Matsushita Electric Foundation: 1918 Sales Manufacturing Started business by only three people 170 45 countries countries No. of manufacturing sites Japan: 155 Overseas: 182 Sales Sales Overseas Japan 8,713.6 47% 53% billion yen / FY2005 Founder Konosuke Matsushita (Business establishment at age 23) Employees No. of employees 334,752 Overseas Japan 55% 45% (March,2005) Suppliers At the Kyoto retreat, Shinshin-An Japan: Approx. Overseas: Approx. 5,000 companies 6,000 companies Business Domains in Matsushita Group Other (7%) Victor Company of Japan(JVC) (8%) AVC Networks (41%) Matsushita Electric Works and PanaHome (17%) Components and Devices (13%) Home Appliances (14%) (% of sales in FY2005) Management Philosophy A Company is a Public Entity Philosophy People Land Building Funds Knowledge Information Time "Deposits" entrusted from Society Company Utilize Use for Society Products and Services Contribution to the Prosperity of Society "Profit" is a Reward for our Contribution Re-invest for Further Contribution Return to Society … Matsushita's Vision for the 21st Century Business Vision Realizing a Ubiquitous Network Society Coexistence with the Global Environment Enrichment of people's lifestyles Environmental Vision Environmental Statement Environmental Vision New challenges for "Green" Products Environment and energy business initiatives Environmental communication Services & Solutions Home Appliances Digital Networks Environmental Systems Components & Devices Production Systems New challenges for Clean Factories Coexistence with the Global Environment Environmental management and human resources development Strengthening of product recycling "Green" marketing and distribution Environmental Technology & Ecological Thinking Green Plan 2010 ET2! History of Environmental Activities 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 Corporate 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 Environmental Forum 2001 (Freiburg,Germany) Status of Acquiring ISO 14001 Certification The establishment of environmental management systems (EMS) forms the foundation of all environmental programs. 73 18 58 2 26 17 Europe China and Northeast Asia Americas Japan 60 10 Asia and Oceania (As of March 2005) 1 Manufacturing Nonmanufacturing Total Japan 73 17 90 Overseas 162 13 175 Total 235 30 265 * Since an increasing number of site acquire integrated certification, these figures are different from the number of individual sites. Data-based Management and Information Disclosure Serve as the Driving Force for Environmental Initiatives Input and Collect Output (Disclosure) Environmental Performance Report Sustainability Report We have collected data from all manufacturing sites since 1991. (Currently from some 450 global sites) Energy, water, waste, GHGs, chemical substances, air, water quality, noise, vibration, compliance with laws, logistics, communications and site overviews (ISO certification, etc.) Started to collect data by fax, but now have a web-based system. Annual management Monthly management We started to publish it in 1997 and distribute copies at the Shareholders' Meeting every June. Published data, specific examples, our vision for the future and key subjects. Improved the content of our report by changing the name from Environmental Report to Sustainability Report. Domain companies and sites disclose their independent data. Report to administrative bodies Overall Structure of Sustainability Management Systems 1 Environmental performance 2 Product chemical substance management Energy 3 1 Environmental investments Chemical substance management at factories 4 Environmental performance ECO ASSIST Water General waste Industrial waste Comprehensive chemical substance management 2 3DCAD parts lists 5 Product chemical substance management GP-Web (Supplier surveys) Chemical substances Environmental impact DB PRTR Supplier DB 3 Industrial waste Material DB Search of environmental lawrelated information Parts lists Chemical substance management at factories Chemilution Product assessments Environmental accounting Site reports Sustainability Report Contained substances Environmental assessments Compliance with laws PRTR Part DB (Data collection) Part DB Product assessments (Environment conscious design) Part DB Material purchase records 5 ET manifest 4 Manufacturing Chemical process DB substance DB Waste management at factories ET manifest Waste DB Manifest 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. Leading enterprise Dialogue with community Incorporation in business operations 2005 2001 Visions & Action Plans Advanced enterprise 2004 2000 Definitions of sustainability 1999 Accountability Information disclosure in compliance with guidelines (Environment) Environmental Reporting Guidelines (CSR) GRI Guidelines Minimum 1997, 1998 Started to publish reports and requirements disclose information Environmental Reports Economic performance and social responsibility reports 2003 2002 Overview of Environmental Reporting Environmental Data Book Corporate non-financial reports Environmental performance data Booklet The Panasonic Report for Sustainability Japanese Japanese English English Chinese Chinese Third-party assessments Third-party assessments Sustainability Data Files Performance data including social aspects Web Japanese site English site Third-party assessments Domain environmental report Individual domain companies' environmental performance data (Total 11 domains) Japanese site English site Site environmental report Individual manufacturing sites' environmental performance data (Japan: 153 sites; Overseas: 181 sites) Japanese site (Japan) Chinese site (China) English site (Others) 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). Backing of Society Serves as the Driving Force for Information Disclosure The Global Reporters 2004 Rank 1 2 Enterprise Country Co-operative Financial UK Services (bank) Novo Nordisk (pharmaceutical) Denmark 3 BP (oil ) UK 4 British American Tobacco UK 4 BT Group (telecom services) UK 6 BAA (airport administration) 7 Rabobank (bank) Netherlands 8 Rio Tinto (mining) 8 Royal Dutch Shell (oil) 10 HP 10 Unilever UK and Australia UK and Netherlands US UK and Netherlands UK Japanese companies ranked in the top 50 Matsushita 34th Electric 45th Sony 39th Daiwa Securities 47th Ito-Yokado Sustainability Reporting Awards (since 1997 in Japan) Ministry of the Environment Toyo Keizai Inc. (publishing firm) (Ratings of Matsushita) (Ratings of Matsushita) Grand Prize: 3 times Outstanding Performance Prize: Once Meister Award: Twice First Prize: Once Outstanding Performance Prize: Twice Excellence Prize: 4 times A wide variety of evaluation and ratings Socially Responsible Investment (SRI) Dow Jones Sustainability Index FTSE4 good Ethibel Ratings and rankings Tohmatsu environmental ratings Sustainability management level rankings Environmental brand rankings Marketing Government organizations Mass media Academic organizations Sustainability Report Environmental Forum Business partners Employees Local residents NGOs NPOs Consumers Shareholders Investors Information Disclosure and Communications Website Various Stakeholders HFC-free Refrigerators Prevention of global warming HFC gas HFC-free Ozone depletion coefficient 0 0 Global warming coefficient 1,300 3 (1/400) Energy conservation 1,190 Annual power consumption (kWh/year) Reduced to approx. 1/6 200 10 years ago NR-F462U HFC-free refrigerators Information Disclosure (FY2004 results) 350,000 Sustainability 1 Report Environmental copies Japanese, English and Chinese 2 website 150,000 Participation in 3 exhibitions 10 events 4 News releases 5 6 Lectures at symposiums and seminars 44 7 Replies to questionnaires 28 8 Direct disclosure via e-mail, etc. accesses Eco-Products 2003, etc. 23 Newspaper advertisements: Newspaper advertisements TV commercials 7 TV commercials: 3 1,058 TV Commercials HFC-free refrigerator Tilted drum washing machine "Clouds in the Sky" "Miracle of Water" HFC-free refrigerator Home appliance recycling "Demonstration of Heat Insulation" "Glass Sands" Dishwasher Home appliance recycling "Faucets" Leave it to wool Communications with Stakeholders Stakeholder meeting Discuss new partnership among society, NGOs and corporations. Meeting to Read the Sustainability Report Learn the readers' impressions and questions about our Sustainability Reports. Reviews by Third Parties Third Party Comments Report of The Natural Step International Third Party Analysis Report of Azusa Sustainability Co. Thank you for listening our presentation Environmental Technology & Ecological Thinking Opening of Home Appliance Recycling Factory to the Public Matsushita Eco Technology Center Co., Ltd. Opening of the factory to the public Some 38,000 people visited since 2001 Live broadcast at the Panasonic Center Tokyo Publication on the website