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Sep 26, 2007
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Panasonic Announces its 'Declaration of Becoming an
Environmentally Contributing Company in China'

Environmental Forum held in China
Aiming to make all products environmentally-conscious and to improve
the environmental performance of all factories by March 2010


Panasonic Corporation of China (PC) and its parent company Matsushita Electric Industrial Co., Ltd. hosted the 'Matsushita Group China Environmental Forum 2007' jointly with the China-Japan Friendship Association on September 26, 2007 at the China World Hotel in Beijing, China. The two companies announced the group's 'Declaration of Becoming an Environmentally Contributing Company in China.' The group pledges to become involved in local activities aimed at optimizing environmental conservation in the three areas of (1) producing products with high environmental performance, (2) alleviating environmental impact in manufacturing sites, and (3) improving employees' environmental awareness and promoting ecology-oriented activities.

Environmental and resource problems have been increasing alarmingly throughout the world in recent years. This is particularly the case in China (which is one of the strategic areas included in the 'GP3 Plan,' the group's mid-term plan), where the government of China has stepped up its environmental conservation activities by including an environmental target in the '11th Five-Year Plan.' With this background, the Matsushita Group believes that the further enhancement of environmental activities in parallel with business activities is a priority issue in China, and has started the 'China Eco Project,' which will continue for three years from this fiscal year. The 'Declaration of Becoming an Environmentally Contributing Company in China'(Attachment 1) describes the activity plan and target of the 'China Eco Project, 'which consists of the following items.

(1) In the product strategy, all new products to be introduced in and after April, 2007 will be certified as Green Products as defined by the group. At the same time, new products in all targeted categories will be eligible for China's environmental labels.
(2) In the manufacturing process, the major environmental indicators (energy and water consumption, etc.) and 2010 targets as defined in China's 11th Five-Year Plan have been translated into the group's equivalent internal targets. Panasonic aims to achieve these targets by FY'10 (i.e. from April 1st 2009 to March 31st 2010). In addition, all manufacturing sites will obtain public environmental certification.
(3) All Matsushita group companies in China will promote environmental conservation activities including a "Declaration of Eco Activities" that will be adopted by the 67,000 employees working in 74 companies in China, and the "CO2 Reduction Eco Challenge by 100,000-Employees" (Attachment 2) jointly promoted by Japan and China.

Approximately 250 guests from the Chinese government and experts from various institutions along with academic environmental researchers attended the China Environmental Forum. During the event, the company signed the joint declaration document of the 'Yellow Sea Eco-region Support Project' with the World Wildlife Fund (WWF) and the Korea Ocean Research & Development Institute (KORDI). (Attachment 3)

About Panasonic
Best known for its Panasonic brand name, Matsushita Electric Industrial Co., Ltd. is a worldwide leader in the development and manufacture of electronic products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the Company recorded consolidated net sales of US$77.19 billion for the year ended March 31, 2007. The Company's shares are listed on the Tokyo, Osaka, Nagoya and New York (NYSE:MC) stock exchanges. For more information on the Company and the Panasonic brand, visit the Company's website at http://panasonic.net/.


[Attachment 1]

Outline of the 'Declaration of Becoming an Environmentally
Contributing Company in China'

1. Panasonic will make all its products certified 'Green Products.'

Panasonic will promote product development to ensure that all the products it will introduce in China in and after April, 2007 onwards will be Green Products*1, and accelerate the acquisition of Chinese environmental labels*2 for designated products*3.

*1 Green Products: Environmentally-conscious products that meet our independent criteria in terms of the prevention of global warming, efficient resource use, and chemical substance management
*2 Target Chinese environmental labels:
  China Environmental Labeling,, Energy Conservation Certificate, Water Conservation Certificate, and China Ecolabeling
*3 Designated products:
  TVs, air conditioners, refrigerators, microwave ovens, washing machines, DVD recorders, rice cookers, facsimiles, home theater systems, projectors, lamps, ballasts, digital imaging systems, and dot printers

2. Panasonic will transform all its factories into 'Clean Factories.'

  China's 11th Five-Year Plan
(2010 target vs. 2005)
Matsushita Group's Chinese environmental target
(FY'10*1 target vs. FY'06*2)
Energy Reduce energy consumption
per GDP unit by 20%
Reduce CO2 emissions per
basic unit of production outpout
by 20%
Waste Achieve a 60% or higher total solid industrial waste utilization rate. Achieve a 90% or higher
recycling rate.
Chemical substances Reduce the total release of
key pollutants by 10%
Reduce the total release and transfer of Key Reduction-target substances (368 types) by 10%
Water consumption Reduce water consumption per unit of industrial production by 30% Reduce water consumption per basic unit of production output by 30%.

Panasonic aims to achieve the key environmental targets set in the11th Five-Year National Economic and Social Development Plan (2006-2010) one year ahead of schedule. As part of its initiatives, all of its manufacturing business units will aim to pass the clean production audit*3 to ensure that each of its twelve Chinese companies becomes an National Environment- friendly Enterprises*4 at the municipal, provincial/autonomous municipal and federal levels in China.

*1 FY'10: From April 2009 to March 2010
*2 FY'06: From April 2005 to March 2006
*3 Clean production audit: Factory audit system established by the Chinese government to reduce the environmental impacts of factories
*4 National Environment-friendly Enterprises:
System to commend companies at the industry's leading level in total environmental conservation activities implemented by the Chinese government. The levels include municipal, provincial/autonomous municipal and federal levels

3.

The employees at all of our Chinese Matsushita Group companies will participate in environmental activities.

67,336 employees of our 74 Chinese Matsushita Group companies each made their respective 'Declaration of Eco Activities' and committed themselves to lead an ecological lifestyle. Employees will make efforts in ten key designated categories, namely days of the month for not commuting by car, campaigns to reduce the use of plastic shopping bags, tree planting or cleanup activities in local communities and energy and water conservation. 130,000 Japanese and Chinese employees joined the Japanese-Chinese Joint 'CO2 Reduction Eco Challenge by 100,000-People' Campaign. Furthermore, we will raise our employees' environmental awareness through joint promotion of the Yellow Sea Eco-region Support Project with NGOs.


[Attachment 2]

The Japanese-Chinese Joint 'CO2 Reduction Eco Challenge by
100,000-Employees' supported by 130,000 employees

Matsushita Electric Industrial Co., Ltd. and its affiliated companies in Japan and China jointly held the 'CO2 Reduction Eco Challenge by 100,000-Employees' for improving the environmental awareness of employees.

The company started the 'Love-the-Earth (LE) Citizens' Campaign in 1998 targeting Japanese employees and their family members based on the motto, "Each employee is not only a company member but should also be a citizen who is environmentally-conscious as a member of a family and Society." Since this year is the 10th anniversary of LE activities, participants were expanded from Japan to also include China, and a campaign called the "CO2 Reduction Eco Challenge by 100,000- Employees" was held in July 2007. The campaign involves 130,000 employees in Japan and China and aims to reduce CO2 emissions during the weeklong CO2 reduction activities. The estimated amount of CO2 reduction is equivalent to approximately 180 tons.

  • Result Summary

Total number of campaign participants: 130,000
Estimated effect: Reduction of approx. 180 tons of CO2 (Equivalent to the amount of CO2 absorbed by approx 13,000 cedar trees.) *2

  China Japan
Number of participants 67,336 62,664
Estimated CO2 reduction effect Approx. 112 tons (*1) Approx. 68 tons
(Including 49 tons estimated from regular activities)
CO2 reduction action
- Mains power off for home appliances
- Room temperature setting 26ºC or higher.
- Lighting off in any room without people.
(These items are mandatory)
- Mains power off for home appliances
- Shopping using an Eco-bag
- No commuting by car
(Free selection from the total of 8 items)
Survey method Employees who made a commitment prior to the registration deadline were regarded as participants and the CO2 reduction effect was calculated from the questionnaire administered to 476 people after the event. Participants were counted according to the number of replies to the questionnaire conducted afterwards via the Intranet.
Campaign period One week in July July 9 - July 15
Data calculation period July - Sept. 11 July 17 - Aug. 28
*1 The CO2 emission factor for power generation in China is approx 1.9 times that of Japan.
*2 Reference: "Green Absorption Measures for Global Warming Prevention," Ministry of Environment, Forestry Agency. The average amount of CO2 absorbed annually by a 50-year-old cedar tree is 14 kg.

The survey of those who participated in the campaign in Japan indicated that approx. 70% intended to continue the energy-conserving activities in the future. In addition to the LE activities such as 'household eco-account book,' reduction in the number of plastic shopping bags, environmental volunteering, etc., active eco-life practices by each employee and their family will be further expanded and enhanced. Also in China, as described in the Declaration of Becoming an Environmentally Contributing Company in China, active eco-life practices (LE) activity will be carried out.

The Matsushita Group is committed to nurturing staff that are eager to become involved in environmental activities in order to achieve "Living in harmony with the Global Environment."


[Attachment 3]

Outline of the 'Yellow Sea Ecoregion Support Project'

Matsushita Electric Industrial Co., Ltd. (MEI) and the World Wide Fund for Nature (WWF) along with Korean Ocean Research and Development Institute (KORDI) held a signing ceremony on September 26, 2007 at the China World Hotel in Beijing, China to sign the joint declaration document for the 'Yellow Sea Ecoregion Support Project,' which aims to preserve the Yellow Sea's marine ecosystem. The joint declaration document was signed by the representatives of WWF International, WWF Japan, WWF China, KORDI, and MEI, Panasonic Corporation of China (PC).

The ceremony was attended by MEI Executive Officer Takumi Kajisha in charge of corporate communications, Mr. Chris Hails, Network Relations Director of WWF International, Mr. Takamasa Higuchi, Director General of WWF Japan and others.

The Yellow Sea Ecoregion Support Project defines an area of the sea covering approx. 460,000 square kilometers as the Yellow Sea Ecoregion, which includes the Yellow Sea, the Bohai Sea, and a part of the East China Sea. The project aims to preserve the marine ecosystem whilst still maintaining a rich life for the people living along the coastal areas. MEI, while promoting its environmental sustainability management, believes it is vital to enhance nature conservation and biological diversity. Upon receiving the invitation to participate in this project from WWF, one of the world's most respected nature conservation group, the company decided to support this project.

Over a timeframe of seven years MEI
As the corporate supporter has committed to providing financial aid of approx. 170 million yen, with WWF committing to provide the necessary technical know-how with respect to nature conservation In China, the project will be carried out through collaboration between WWF China and the State Oceanic Administration (SOA). In Korea, KORDI takes the primary responsibility of the project.

Development of the Yellow Sea Ecoregion Support Project

  • First stage (Aug. 2007 - Mar. 2010)
    Utilizing the financial aid to initiate primarily small-scale, local PR and conservation activities, thereby providing staff with opportunities to exchange conservation methods and experiences.
  • Second stage (Jan. 2010 - Mar. 2013)
    Establishing a pilot area in China and South Korea and setting up conservation activities suited to each region by utilizing habitat management techniques that meet international standards.
  • Third stage (Apr. 2013 - Sept. 2014)
    Compiling a case studies report based on the first-stage aid project and the results from the second stage pilots, and thereby publicizing the 'Asian Model of Coexisting Marine Ecosystem and Human Living' which will facilitate the fostering of similar activities throughout China, Korea, and in other regions of the world.

WWF and KORDI opened the call for organizations seeking information and financial support in the first stage of the project from September 7, 2007.


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