7 Product-related Environmental Activities

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2 Contents 7.1 Our Policy Environmental Statement Environmental Vision Reduction of Chemical Substances in Products Product development with maximum efforts not to use specified chemical substances Global promotion of non-use of specified chemical substances Global collection and management of chemical substance data from suppliers 7-5 i

3 7. Product-related Environmental Activities 7.1 Our Policy Environmental Statement Fully aware that humankind has a special responsibility to respect and preserve the delicate balance of nature, we at Panasonic acknowledge our obligation to maintain and nature the ecology of this planet. Accordingly, we pledge ourselves to the prudent, sustainable use of the earth's resources and the protection of the natural environment while we strive to fulfill our corporate mission of contributing to enhanced prosperity for all Environmental Vision Connecting with the earth The Panasonic Group strives to be a Green Innovation Company with a global perspective Looking ahead to the 100th anniversary of our founding in 2018, Panasonic aims to be the No.1 Green Innovation Company in the electronics industry. Making the "environment" central to all of business activities, we aim to be the No.1 Green Innovation Company in the electronics industry through "Green Life Innovation" to change people's lives and "Green Business Innovation" to bring forth innovation in our business styles. Panasonic will spread eco ideas to the next generation around the world starting with their lifestyles. 'eco ideas' Declaration 'eco ideas' for Lifestyles We will promote lifestyle with virtually zero CO2 emissions all throughout the world. 'eco ideas' for Business-styles We will create and pursue a business-style which makes the best use of resources and energy. Global execution of efforts Compliant with RoHS Directive (2002/95/EC) Compliant with China RoHS Lead, mercury, cadmium, hexavalent chromium, specified brominated flame-retardants (PBB, PBDE) Compliant with RoHS Directive (2002/95/EC) in April 1, 2005 shipment and after Conforms to content marking requirements of the "Management Methods for the Control of Pollution from Electronic Information Products" (Ministry of Information Industry, Order No. 39) from March 2007 T04007CE

4 7.2 Reduction of Chemical Substances in Products Product development with maximum efforts not to use specified chemical substances Panasonic will promote product creation according to the Basic Policy for Chemical Substances Management in which chemical substances for which there is concern regarding their effect on the environment will be used as little as possible across their lifecycle. In particular, in order to prevent the spread of chemical substances used in the product lifecycle into the natural world, in 1999 we published our Chemical Substances Management Rank Guidelines and performed thorough management of such substances throughout all group companies. Substances prohibited by laws and regulations are designated Prohibited Substances Level 1 and their use is prohibited; substances which are not prohibited by laws and regulations at the current time but for which there is concern regarding their effect on the environment are designated Managed Substances and their use/non-use is monitored; and further, substances which were determined by Panasonic as substances whose use should be restricted are designated Prohibited Substances Level 2. In the future, we will promote activities to comply with the new chemical substances regulations REACH * promulgated by the European Chemicals Agency in June The Chemical Substances Management Rank Guidelines Ver. 7.1 (For Products) are shown in Table 7.1, the List of Prohibited Substances Group is shown in Table 7.2, and the List of Managed Substances Group is shown in Table 7.3. Table 7.1 Chemical Substances Management Rank Guidelines Ver. 7.1 (For Products) Rank Prohibited Substances Level 1 Level 2 Managed Substances Substance group 16 2 Definition Note) *: Registration, Evaluation, Authorisation and Restrictions of Chemicals Substances whose inclusion in products is currently prohibited by laws and regulations Substances whose inclusion in products will be prohibited by laws and regulations within a year of the revision of these guidelines Substances whose inclusion in products is prohibited by the Panasonic Group Substances whose inclusion in products will be prohibited after a certain period by treaties, laws, or regulations Substances whose use is partially restricted by a Panasonic Group voluntary initiative Substances whose use status needs to be monitored and for which consideration needs to be given to health, safety and hygiene, appropriate treatment, etc. Substances whose use/non-use and amount of use need to be monitored T04007CE

5 Table 7.2 List of Prohibited Substances Group Level 1 Polychlorinated biphenyls (PCBs) Asbestos Specified organic tin compounds Short-chain chlorinated paraffines (C10-13) Specified brominated flame-retardants (PBBs, PBDEs) Azo dye and pigment forming specified amines Polychloronaphthalene (number of chlorine 3 or more) Cadmium and its compounds Level 2 Poly-vinyl chloride (PVC), its mixtures, its copolymers Dibutyltin compounds Dioctyltin compounds Lead and its compounds Hexavalent chromium compounds Mercury and its compounds Ozone-depleting substances (excluding HCFC) Formaldehyde Perfluorooctane sulfonate and its salts Specified benzotriazole Dimethylfumarate Table 7.3 List of Managed Substances Group JAMP Declarable Substances (Reporting to the JAMP is required) JIG (electrical & electronic industry) Applicable substances GADSL (Auto) Applicable Substances *1 Applicable "managed substances" are equivalent to the "JAMP Declarable Substances (latest version)" *2 specified by the Joint Article Management Promotion consortium, excluding the prohibited substances specified in these guidelines. *2 - JAMP List of Target Substances under Management: Instruction Manual - "JAMP Declarable Substances Reference List Ver.2" Japanese English, Chinese T04007CE

6 7.2.2 Global promotion of non-use of specified chemical substances The European Union (EU) issued the RoHS directive which specified that sales of electrical and electronic products containing specified chemical substances (lead, mercury, cadmium, hexavalent chromium, and specified brominated flame retardants) (PBBs, PBDEs) would be prohibited in the EU region from July In addition, movements toward restrictions on specified chemical substances are becoming more widespread in regions throughout the world, such as in Japan (Revised Law for the Promotion of Effective Utilities of Resources: July 2006) and in China (Administration on the Control of Pollution Caused by Electronic Information Products: March 2007). The Panasonic Group has expanded the applicable area for handling to worldwide, and completed substitution in all applicable products (approximately 31,400 products) at the end of October Since then, we have created an organization for No introduction! No usage! No emission! of the specified chemical substances in all processes in manufacturing activities from product design through shipment inspection by, for example, introducing analysis equipment to enable on-site analysis and verification that purchased materials do not contain the specified chemical substances, and have introduced that system to all our business facilities worldwide. In addition, we are conducting internal audits and introducing additional analysis equipment to further strengthen our management system. The management system for specified chemical substances is shown in Figure 7.1. Customer Panasonic Group Do not use! No usage for design specifications Development and use of substitute parts Product assessment Design Product shipment Manufacturing Acceptance of component parts Procurement Do not ship! Verify records at every stage of the product manufacturing. Do not accept! Inspection of incoming components and devices Verification of analysis data Audits of material supplier Database (GP-Web) Information Goods Parts/materials suppliers Figure 7.1 Management System for Specified Chemical Substances T04007CE

7 7.2.3 Global collection and management of chemical substance data from suppliers Panasonic Group procures parts and materials from approximately 9,000 companies throughout the world. In order to promote the creation of environmentally friendly products together with our suppliers, in March 1999 we published and disclosed Green Procurement Standards (Revised Ver. 5 issued in February 2010) and Chemical Substances Management Rank Guidelines (Revised Ver. 7.1 issued in December 2010) to begin green procurement as early as possible. In addition to making our suppliers understand our actions and thinking regarding the environment, we have also requested the establishment, maintenance, and improvement of environmental management systems and the reduction of environmental loads for purchased parts and materials in accordance with obtaining ISO certification. Furthermore, we created our own database, the GP-Web system, to centrally contral the extensive data that we gather from suppliers on the chemical content of all parts and components purchased. This database has been shared with our suppliers around the world since FY2005. In the future, we will continue to audit our suppliers, request and support higher levels of achievement, and always strive to procure safe and worry-free parts and materials. Green Procurement Standards are shown in Table 7.4, GP-Web system is shown in Figure 7.2. Table 7.4 Green Procurement Standards 4 accreditation standards for suppliers 1. Submission of guarantee of non-use of chemical substances according to the Rank Guidelines 2. Submission of chemical substance inclusion data (amounts) and input to GP-Web 3. Construction of chemical substances management system and execution of environmental quality assurance system audit 4. Construction of environmental management system (EMS) (Obtainment of ISO certification; Environmental policy/guidelines; Environmental management planning; Product assessment; Evaluation of environmental effects; Education/disclosure of information; Rationalization of logistics) 9 selection standards for materials 1. Conform to laws and regulations regarding recycled resources, energy, etc. 2. Non-use of prohibited substances 3. Identification of content amount of chemical substances 4. Nonuse of Ozone-depleting substances (excluding HCFC) in manufacturing process of materials. 5. Low environmental impact including chemical substances, atmospheric pollution, water pollution, soil pollution, etc. 6. Aim for energy conservation and resource conservation through use of recycled resources and parts or reduction in size 7. Execution of recyclable design 8. Disclosure of environmental information related to materials 9. Above requirement 1 to 8 also apply to packing materials T04007CE

8 Supplier Panasonic Group Information about chemical substances and raw materials Registration Registration request Note) Green procurement database for all companies Green procurement database Business domain Figure 7.2 GP-Web system Green procurement database Business domain 3R: Reduce, Reuse, Recycle GP-Web System Utilization Environmental laws and regulations database LCA Assessment of 3Rs Disclosure of environmental information T04007CE