2021 ECO-VC Activity Proposal and Application Guidelines October, 2020 ECO-VC Administration Global Procurement Company Panasonic Corporation Contents Item Page 1. Overview (1) About ECO-VC Activity P4 (2) Concept of ECO-VC Activity P5 (3) ECO-VC Activity Coverage Area P6 (4) Key Points of ECO-VC Activity New P7 (5) Achievements of ECO-VC Activity (Effects / Application Results) New P8, P9 2. Schedule Annual Schedule (Planned for FY2021) New P11 3. Application Note) Refer to the Attached File: 2021 ECO-VC Activity Application Guidelines Guidelines 4. Screening Meeting (1) Screening Overview P13 (2) Evaluation Criteria for Screening New P14 (3) Screening Process P15 (1) Registration and Release of the Environment Technology Database P17 5. Others (2) Issuance of the Certificate of Registration P18 Reference Information Activities for Achieving the Environment Vision 2050 P20-P24 Attachments: COVID-19 Prevention Measures by ECO-VC New For inquiries: [email protected] Administration Access Map (Screening Venue) 2 1. Overview ECO-VC Administration, Global Procurement Company, Panasonic Corporation 3 1. (1) About ECO-VC Activity ECO-VC (ECO Value Creation) Activity ・Panasonic's procurement operations aim to achieve both reduced greenhouse gases with recycling-oriented manufacturing and reduced costs through environmentally-aware activities: energy savings in our products and suppliers, reduced resource usage with lighter and more compact products with a lower number of parts, use of recycled materials, and shifting to fossil fuel-free materials. VC means an abbreviation of Value Creation We gather ideas from our suppliers worldwide to introduce the most outstanding examples at the ECO-VC Activity award ceremony and networking event. Ideas shared with our suppliers in this way are spread throughout the entire Panasonic Group. This activity began in fiscal 2009. Reduce greenhouse gases AND Reduce costs Recycling- oriented manufacturing ECO-VC Administration, Global Procurement Company, Panasonic Corporation 4 1. (2) Concept of ECO-VC Activity Maximizing Value Cost Degree of satisfaction Paid costs Strengthening Product Competitiveness Function Value ＝ ーーーーーーーーーー Cost Function Material Cost Rationalization Obtained effects Minimize Environmental Loads Reduce Utilize Recycled Reduce in CO2 Emissions Resource Used Total Resources Used ECO-VC Administration, Global Procurement Company, Panasonic Corporation 5 1. (3) ECO-VC Activity Coverage Area All aspects of the supply chain are involved: manufacturing, sales, distribution, and corporate activities Business Logistics Logistics Partners Panasonic Customers ・Lightweight and ・Streamlining of the ・Energy saving facilities ・Streamlining of the ・Energy saving products Downsizing shipping process ・High-efficiency air- shipping process ・Outstanding eco friendly ・Energy saving ・Modal shift conditioning system ・Modal shift products Improved packaging ・Optimized packaging ・Improved packaging ・Zero waste ・ ・Energy-saving / energy ・Standardizations ・Efficiently of utilizing ・ Efficiently of utilizing storage / energy- warehouse ・Reduce number of parts warehouse creating products ・Cross-industrial joint Substitution of Materials ・Ecology solutions for ・ shipping ・Utilize recycled materials the entire house ・Material inventory ・Promote eco-navi reductions products ECO-VC Administration, Global Procurement Company, Panasonic Corporation 6 1. (4) Key Points of ECO-VC Activity Key Words Examples of Initiatives and Achievements Energy saving of products - Developed a power supply unit whose switching supply efficiency is 15% higher than the previous model. - Reduced power consumption of the product during standby mode to less than 0.1 W by developing a special microcomputer. Energy saving in the manufacturing (factory) - Reduced the power consumption by 20 % in the process for producing the register of micro chips with the energy saving activities to implementing an insulation in hearing furnace, and etc. Implementation of renewable energy - Exchange from the current power generation to solar power (renewable energy) in the manufacturing process of motor Development of smaller size - Reduce and shrink LSI package and lighter weight products - Shrink chip size. Part standardization and common use - Reduce to create new die (mold tool) by commoditized existing cover and case Resource conservation - Reduction in Total Resources Used. Utilize 100% recycled materials. - Reduce packing materials by utilizing reusable and returnable container. Recycled materials - Utilize recycled resins (plastics) Alternative materials and single material - Significantly reduced product prices achieved cost rationalization by changing the copper tube to iron tube Use new materials - Adopted a new material with outstanding thermal conductivity for the radiator plate and reduced the internal temperature by 15°celsius. As a result, made cost rationalization by eliminated cooling fan, and enabled to replace heat-resistant capacitor with a standard capacitor. Less parts - Enabled the integration of components by improving die (mold tool) and pressing processes. As a result, significantly reduced the number of parts. - Reduced 25% of circuit components per unit. Transportation efficiency - Improvement in a loading rate, joint transportation and consolidated service Direct transportation - Implementing direct transportation to the warehouse and utilize return track / round transportation Improve packaging - Optimized size for transportation and storage, downsizing by minimum packaging, review type of materials Modal shift - Change type of transportation such as from truck to rail lord, or vessel Use Eco-friendly (low emission) vehicle - Introducing and utilize eco-track, and promote eco-conscious drive Biofuel - Use biofuel proactively Effective use of warehouse space - Improve storage efficiency, consolidate warehouse locations, and eliminate defect inventory Development of new transportation route - Reduce air freight transportation, contribute to reduce lead time Others - Reduced VOC and CO2 emissions by eliminating the housing coating through the development of a weldless molding method. ECO-VC Administration, Global Procurement Company, Panasonic Corporation 7 1. (5) Achievements of ECO-VC Activity - 1 (Effects / Application Results) Accumulated total Cost Rationalization amount 199.6 billion JPY Number of Proposal Received 9,389 Number of Proposals Reductions Unit： Unit: Billion JPY 1445 Number of Applications Cost CO2 Unit: K tons Rationalization Reduction 51 250255 48 48 235 41 213 176 178 32 154 153 25 28 1077 122 92 116 11 52 6 6 933 3 3 890 866 820 09年 10年 11年 12年 13年 14年 15年 16年 17年 18年 19年 20年 772 09年 11年 13年 15年 17年 19年 668 622 Unit: K tons Reduction in Unit: K tons 512 Recycled Total Resource Resource Use Used 430 2.1 32.3 354 1.9 1.7 1.7 1.9 1.8 1.2 0.0005 0.6 0.3 0.01 1.99 0.01 0.1 1.2 1.6 1.82.1 2.4 2.1 2 0.1 0.3 09年 10年 11年 12年 13年 14年 15年 16年 17年 18年 19年 20年 09年 10年 11年 12年 13年 14年 15年 16年 17年 18年 19年 20年 09年 10年 11年 12年 13年 14年 15年 16年 17年 18年 19年 20年 To improve efforts and quality ⇒ Use ever more effective VE techniques for efficient and proactive proposals ECO-VC Administration, Global Procurement Company, Panasonic Corporation 8 1. (5) Achievements of ECO-VC Activity - 2 (Application Results) *Before FY 2017 onward, actual figures are recorded for Company cases Company 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Central Contract Center - - - - - ※ ※ ※ ※ 180 69 60 Energy Procurement Center （Former Raw Material TC + IS 18 0 17 17 0 0 - - - - 8 45 Company + US Company) AP 58 192 241 294 706 1,142 703 447 217 428 341 198 LC 5 14 12 PES 28 2 15 33 64 50 46 26 26 27 55 LS 49 PEW 13 4 50 PH 9 63 28 15 22 14 26 30 31 45 46 AVC 223 174 178 189 83 PMC 7 14 9 93 30 30 17 12 20 32 CNS 8 7 PSN 15 12 10 PSFS 13 35 27 30 32 53 62 48 31 50 53 30 INFO 5 13 18 22 20 13 9 18 11 11 19 AM 2 Energy 29 22 23 39 30 18 19 5 6 18 79 23 46 39 8 6 IS 62 50 18 15 29 62 14 13 14 47 21 13 PHC 3 4 4 3 1 - - - - - - - SANYO 0 16 67 0 0 0 - - - - - - MRO 0 3 0 0 - - - - 10 20 20 0 PRC Material 39 19 56 34 - - - - - - - - Global Logistics Division 11 21 60 57 - - - - - - - - Overseas Manufacturing - - - 63 62 33 19 - - 10 - - Company Total 512 668 901 866 1,077 1,445 933 622 354 820 772 430 ECO-VC Administration, Global Procurement Company, Panasonic Corporation 9 2. Schedule ECO-VC Administration, Global Procurement Company, Panasonic Corporation 10 2. Annual Schedule (Planned for FY2021) Year 2020 2021 Type Month 10 11 12 1 ２ ３ ４ ５ ６ ７ ８ ９ 10 11 12 ●October ●October ECO VC Release FY2021 Activity ★End of March Release FY2022 Activity ･ Overview / Application Deadline Overview / Application Guidelines Guidelines Processed Parts Application Period General Screening at each Company Final Processed Primary Screening Parts and Screening General to be Planned screened on for End Planned the same day of May for July Technology Exhibition Technology Olympic Hospitality Program (End of July – Early August) PEPM ★End of June Company Deadline Contribution Technology & Development Cost Improvement Application Period Quality Performance Supply Chain Screening Management Planned for July ECO-VC Administration, Global Procurement Company, Panasonic Corporation 11 4. Screening Meeting ECO-VC Administration, Global Procurement Company, Panasonic Corporation 12 4. (1) Screening Overview Item Content Remarks Primary screening: Panasonic Shoshin Hall, late May (plan) * Details will be advised separately. Schedule Final screening: Panasonic Shoshin Hall, early Jul. (plan) * Refer to Access Maps * Subject to change depending on the Screening groups number of themes screened and Screening will be conducted in several groups operations on the day. Each group will contain 4-5 people (3 judges per group) Presentation Presentation format: presentation-style method Allotted time Screening • Presentation time: 10 minutes method • Q&A session: 10 minutes (total of 20 minutes) Screening method Scored out of 100 / Total of judges x number of people (in groups) ECO-VC Administration, Global Procurement Company, Panasonic Corporation 13 4.