Panasonic Energy has underpinned the shift from gasoline-powered vehicles to electric vehicles (EVs) since we introduced lithium ion batteries to the market for automotive use in 2008. In addition to the shift from gasoline-powered vehicles to EVs equipped with Panasonic Energy batteries, we have propelled the spread of pedelecs with Panasonic Energy battery packs. In FY2022, this resulted in roughly 15 million tons of CO₂ emissions reduction. Going forward, we aim to help achieve a reduction of 60 million tons of CO₂ in FY2030 (approximately four times as much as in FY2022) by supporting the further electrification of mobility.

Panasonic Energy is working to reduce its own environmental footprint by both adopting renewable energy and promoting energy conservation. As of end March 2024, we achieved carbon neutrality at 14 locations worldwide through the installation of solar panels at production sites, offsite PPA, environmental credits and certificates, and other measures. We will achieve carbon neutrality at all of our production sites worldwide in 2028.

Panasonic Energy is also building an alliance with suppliers that will help to reduce our carbon footprint. In 2022, we signed a memorandum of understanding with the Canadian graphite producer Nouveau Monde Graphite concerning a contract for the long-term supply of graphite used in Lithium ion Batteries for EVs. Canada has a high ratio of electric power derived from renewable energy sources such as hydroelectric power. So integrated Canadian production, encompassing everything from resource extraction through anode materials, will enable us to procure anode materials with significantly reduced CO₂ emissions.

In the past, there have been high barriers to the use of recycled materials for the cathode materials and copper foil used as raw materials for batteries, due to concerns with quality and cost. Panasonic Energy is constructing a system for recycling these materials and using them to make new batteries. In 2022, we signed a sales agreement with Redwood Materials, Inc., a US battery recycling company, concerning recycled copper foil and cathode materials for Lithium ion EV batteries. This initiative will not only increase the ratio of recycled materials used, but also help to reduce CO₂ emissions from physical distribution processes and resource extraction by utilizing local procurement.

In 2021, we began selling dry cell batteries for consumer in Japan in "ethical packaging" that reduced the amount of packaging materials used and eliminated plastics. This was meant to appeal to consumers of off-the-shelf dry cell batteries who were interested in ethical consumption (consumption which takes into account not only the functional value of products and services, but their ethical value as well). By adopting ethical packaging, we were able to reduce the use of packaging materials that contain plastic by around 38 to 70% compared to conventional products. At the same time, it helped to reduce overall CO₂ emissions over the life cycle of packaging materials, including from raw materials procurement, manufacture, use, and disposal.