(Credit: Panasonic)Panasonic will be implementing an internal carbon pricing system (ICP) which aims to advance the competitiveness of businesses dedicated to carbon neutrality and a circular economy.
The pilot ICP, scheduled to launch in fiscal 2024, will assign 20,000 yen per ton of carbon, or around $143 per ton, considering companies’ emissions reduction efforts as criteria for investment decisions.
Panasonic will begin implementation of the system in its Living Appliances and Solutions Company in order to invest in home appliance businesses that contribute to a circular economy and decarbonization. Once the effectiveness of the system is verified and necessary improvements are made, ICP system implementation will be expanded for future company-wide use.
Investment decisions will also be based on GHG Protocol, which classifies corporate greenhouse gas emissions into three categories. Scope 1 and 2 emissions include direct emissions from the company and on-site emissions which occur at the facility in which it’s generated. Scope 3 includes emissions from all consequences of company activities, such as transporting purchased materials or use of sold products.
The ICP system will consider efforts toward Scope 3 emissions reduction in assessing a company's entire value chain and its overall contributions to reducing carbon emissions in society. Once a carbon reduction effect is calculated by using the internal carbon price, strategic investment decisions can be made.
In 2022, Panasonic released its Green IMPACT plan which aims to shift company operations to using 100% renewable energy, make more energy-efficient and longer life cycle products, and accelerate electrification. The ICP system presents the company’s efforts toward more sustainable investment along with these changes.
Panasonic, on its own, is responsible for 1% of global emissions and intends to hold itself accountable for reducing this impact. The company aims to achieve net zero emissions in its business operations by 2030, which is projected to reduce global emissions by 300 million tons.
Beyond this goal, Panasonic aims to reduce its customers’ emissions in using its products and contribute to an overall reduction of society’s carbon emissions. Investing in companies devoted to lowering emissions and contributing to a circular economic model furthers these overarching goals.
