Responsible Supply Chain

Panasonic Group does business with approximately 13,000 suppliers
worldwide. Panasonic Group strives to do business with suppliers
that not only provide superior technology and quality but also fulfill
their social responsibilities including human rights and environmental

Policyconsiderations, worker-friendly labor conditions, and fair trade practices.

Responsible Executive andFramework

electrical/electronic components and processed parts. Our suppliers are

The parts and materials we purchase range from raw materials to
located in various regions and countries, meaning that some parts andmaterials come from regions an d countries with many migrant workers.

Supply Chain Due Diligence
Initiatives for a Harmonious
Relationship with theEnvironment
Responsible Minerals
Procurement

Breakdown of Transactions by Region (%)

China

Europe3

28%%
ASEAN &
India

Japan

37%

North
America3%

Latin
America1%

28%Internal Training andExternal Awareness-Raising
Systems for Whistleblowing
and Seeking Consultation

Breakdown of Transactions by Product (%)

Other
Outsourcing

Electronic
components /Semiconductors

8% 5% 22%

Raw Materials

18%
47%

Machined Parts

Sustainability Data Book 2023 102

Responsible
Supply Chain

Policystakeholders’ increasing expectations, and of trends inAugust 2023). Panasonic Group launched its Supply Chain

legislation, we will revise, as necessary, to continuously

Compliance Project to promote responsible procurement

improve our efforts.

across the entire Group and establish a Groupwide

procurement in a 3-item set of Procurement Policy. The▪Clean Procurement

Companies and regional procurement divisions. Each offundamental basis of this policy is the concept that, “based

Because Panasonic Group believes that “a company is a

our Operating Companies, their business divisions, or otheron relationships of mutual trust, and through diligent study

public entity of society”, we engage in fair and equitablerelevant Group companies are responsible for applying theand cooperation, our suppliers are invaluable partners intransactions with our global suppliers. With a need for a more

PDCA cycle to their practice of responsible procurement,

creating the value our customers demand”.

stringent sense of moderation and ethics and to maintainfollowing the Group’s internal rules, standards, and• Implementation of Global Procurement Activities

healthy relationships with suppliers, in 2004, we released

manuals. The Global Procurement Division of Panasonic

The Company globally establishes partnerships with

our Clean Procurement Declaration and have followed thisOperational Excellence Co., Ltd. (PEX) fills the role ofsuppliers to respond to production activities on a global

declaration in our procurement activities since.

providing Groupwide measures and support to all Operating

scale, and works to create the functions and values our

In Japan, we promote understanding and awareness of “cleancustomers demand based on relationships of mutual trust

procurement” among our procurement staff by providing

and through diligent studies and cooperation.

annual e-Learning and training materials.

▪Procurement Policy
Panasonic Group has summarized its core thinking on

PolicyResponsible Executive andFramework
Supply Chain Due Diligence
Initiatives for a Harmonious
Relationship with theEnvironment
Responsible Minerals
Procurement
Internal Training and External
Awareness-Raising
Systems for Whistleblowing
and Seeking Consultation• Implementation of CSR Procurement

framework to foster cooperation among all Operating

Companies. The heads of procurement at the Operating
Companies and business divisions discuss and devise
appropriate solutions to address any related issues throughregular Groupwide meetings.

Company promotes procurement activities, together with

Prohibition of receiving money and valuablesfrom suppliers and prohibition of accepting any
form of hospitality, entertainment or meals

suppliers, that fulfill their social responsibilities, such as

The Group established “Rules on Gift and Hospitality for▪Enforcement of the Panasonic Supply
Chain CSR Promotion Guidelines

human rights, labor, safety and health, environmental

Anti-Bribery / Corruption” in its internal regulations, appliedWe, the Panasonic Group, adhere to international norms andconservation, and information security.

at the global level. These strict rules apply to the acceptanceprinciples, such as the United Nations “Guiding Principles on• Procurement Activities Working Closely with Suppliersof gifts, meals, entertainment and travel invitations from ourBusiness and Human Rights”, and require suppliers to affirm

In order to achieve product values expected by customers,

business partners, including suppliers. They stipulate generalthem. To show our approach to CSR procurement and clearly

the Company serves as the contact point of suppliers

rules regarding the rationality and balance in light of theconvey the requirements to suppliers, we have establishedwith respect to information, such as the market trends of

purpose, value and frequency of gifts, meals, entertainment

the Panasonic Supply Chain CSR Promotion Guidelinesmaterials and goods, new technologies, new materials,

and travel invitations, and local customs, and the absence(the “CSR Guidelines”), and we share them at the start ofand new processes, and works to ensure and maintain theof improper influence on business judgement. More detailedtransactions. The contract obligates suppliers to comply withquality of purchased goods, realize competitive prices, andstandards and stricter rules are also set for each region.

the guidelines. The CSR Guidelines stipulate the following

respond to market changes.

WEB Clean Procurement Declaration

provisions, while taking into account laws, regulations, andComplying with laws and regulations, international
standards, social norms, and corporate ethics, theIn April 2022, we established the “Rules on Supply Chain
Compliance” to strengthen our efforts to promote CSR
in the supply chain. This rule stipulates the basic policy
regarding supply chain compliance and internal rules for its
implementation. In addition to a thorough implementation of
procurement operations, management reviews are conducted
on a regular basis. Furthermore, in light of society’s andhttps://holdings.panasonic/global/corporate/about/procurement/
declaration.html

Responsible Executive andFramework
The Panasonic Holdings Corporation (PHD) Procurement
Officer is the chief procurement officer for the Group (as ofSupply Chain Due Diligence

principles of international norms:
1. Labor rights: Prohibition of forced labor or child labor,
appropriate working hours, decent wages, humane
treatment, elimination of discrimination, freedom of
association
2. Occupational health and safety: Training to ensure
workplace safety and emergency preparedness, safety

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Responsible
Supply Chain

measures for machinery and equipment, and occupational
health and safety rules for facilities
3. Environment: Compliance with the “Panasonic Group’s
Green Procurement Standards”

human rights initiatives and the implementation of prevention

Operating Company focuses on those prioritized suppliers/ mitigation / corrective measures, a request for complianceto be audited and carries out supplier audits by itself or with

with tier 2 suppliers, and a request for cooperation withthe third-party institutions according to its own supplier audit

the Panasonic Group’s Human Rights Due Diligence. The

implementation plan.

template of our Master Global Purchasing Agreement obliges

Policy4. Ethics: Prohibition of corruption and bribery, and promotionof fair business and responsible mineral procurement

suppliers to comply with the CSR Guidelines. In addition, to

Responsible Executive andFramework

5. Information security: Prevention of information leaks andobtain commitments from all our suppliers, we have beenprotection against computer and network threats
6. Product quality and safety: Creation of a product quality

Supply Chain Due Diligence

management system, provision of accurate product andInitiatives for a Harmonious
Relationship with theEnvironment

7. Contributions to society: Contributions to society and local

Responsible Minerals
Procurement
Internal Training and External
Awareness-Raising
Systems for Whistleblowing
and Seeking Consultation

service data, and maintenance of product safety
communities
8. Management systems
The CSR Guidelines are prepared in Japanese, English, andChinese and we both keep them on our home page andendeavor to distribute to our suppliers and notify them of
any revisions. We also ensure that we share these guidelines
with our suppliers at workshops as necessary. We ask our
suppliers to communicate the requirements of the guidelines
to their suppliers and subsequent suppliers, and to checktheir compliance status. For further details, please visit thefollowing website.
WEB For Suppliers

https://holdings.panasonic/global/corporate/about/procurement/forsuppliers.html▪Obtaining commitment from the suppliers

asking our suppliers to submit written consent to comply with
the CSR Guidelines since revising them last December.

▪Conducting CSR Self-Assessments andAudit
To promote human rights due diligence and other aspectsof CSR throughout the supply chain, the Group requires its

Initiatives for a Harmonious
Relationship with the Environment
We strive to reduce the burden we place on the environment
through cooperation with our suppliers and logistics partners.
Please see the Environment section.
WEB Environment: Collaboration across the Supply Chain

https://holdings.panasonic/global/corporate/sustainability/
environment/supply-chain.html

suppliers to conduct CSR Self-Assessments. The CSR Self-

Responsible Minerals Procurement

Assessments are structured based on the CSR Guidelines,▪Our Basic Stanceand we require that all new suppliers conduct one before
we start transactions with them. We also require our existing
suppliers to conduct them regularly. We collect theseassessments using a web-based questionnaire, reducing theburden on suppliers and our Group and improving collection
efficiency and accuracy. We restarted the assessments andtheir collection at the end of 2021. By March 2023, we hadcollected the questionnaires from more than 12,000 suppliers(94%). After discovering issues, particularly those identified
as priority management items in the CSR Self-Assessments,
such as labor conditions for migrant workers, we will visit

Panasonic Group recognizes that the procurement of certain
minerals (notably tin, tantalum, tungsten, gold and cobalt)
carries a risk of funding organizations in states in conflict
affected areas and risks that are involved in human rights
abuses such as child labor, harsh working conditions,environmental destruction and corruption in high-risk areas.
This is a matter of grave social concern, and to fulfill our
corporate social responsibility, Panasonic Group is engaged
in the responsible procurement of minerals in its global
supply chain.

suppliers, check on-site conditions, hold interviews, andOf course, there are companies and individuals in thoseWe, the Panasonic Group, require that suppliers affirm

investigate issues whenever necessary and work to correct

same areas who conduct their business legally at the samethe Panasonic Group’s Code of Ethics & Compliance andthem.

time. Therefore, while we remain mindful of our obligation

the Panasonic Group’s Human Rights and Labor Policy,
and we make it mandatory, at the start of transactions
for materials and components for the manufacturing ofPanasonic products, to conclude a Master Global Purchasing
Agreement that stipulates compliance with the CSR
Guidelines. In addition, we stipulate in the CSR Guidelines
a respect for human rights as expressed in United Nations
norms and principles, an evaluation of the status of suppliers’

Since fiscal 2023, the Group has begun work on initiatives
to build a structure for human rights due diligence. While
incorporating guidance from outside experts, the Group hascompiled a table to assess human rights risks at our suppliers
by using risk indicators and indices provided by internationalorganizations in order to identify suppliers for which action
should be taken on a priority basis. From this fiscal year,
using the risk-based approach mentioned above, eachto avoid using minerals associated with illegal or unethicalpractices, we strive to ensure that this does not hinder thebusiness activities and livelihoods of legitimate companies
and individuals. To this end, it is necessary for us to workin partnership with a wide range of stakeholders including
national governments, companies, and NPOs that are
working toward creating sound minerals supply chains in thetarget areas.

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Responsible
Supply Chain
PolicyResponsible Executive andFramework
Supply Chain Due Diligence
Initiatives for a Harmonious
Relationship with theEnvironment
Responsible Minerals
Procurement
Internal Training and External
Awareness-Raising
Systems for Whistleblowing
and Seeking Consultation

We will keep conducting its activities based on the “Duethat have either passed RMI audit or is currently undergoing

Diligence Guidance” of the OECD (Organization for Economicone). We are also working on industry efforts that will pushand continue to encourage smelters to participate in the

Co-operation and Development) and build management

the remaining 20% of those refiners and smelters toward

Responsible Mineral Assurance Process (RMAP) with otherprocesses in line with global standards.

participation in the Responsible Minerals Assurance Process

member companies. Furthermore, we joined the Responsible(RMAP). In the rare event that we find minerals that areMinerals Initiative (RMI) in July 2017, with the aim of learningcomplicit in conflicts or human rights violations in our supply

about the latest industry trends and promoting best practices

chain, we also ask suppliers to take steps toward no longer

for procurement activities. Panasonic Group will continue

The promotion of responsible minerals procurement requires
conducting due diligence throughout the entire supply chain,from upstream mining companies to smelters, refineries, anddownstream enterprises. We require that all related suppliers
provide information on smelters/refineries throughout the
supply chain, and we aim to procure from suppliers who don’t
present any issues. We also participate in the Responsible
Minerals Initiative (RMI) and its Cobalt Workgroup to promoteindustrywide efforts.

▪Responsible Minerals Procurement System
With the PHD Executive Officer in charge of procurement
assuming ultimate responsibility, we are working to build aGroupwide management system for responsible minerals
procurement in collaboration with each Operating Company.

using them, including changing their source.

Cobalt Surveys
There are concerns about cobalt, which is used in lithiumion batteries and other products, due to human rights issues
such as child labor at mining sites. As part of its efforts topromote responsible minerals procurement, even with cobalt,
Panasonic Group pursues initiatives in line with the OECD’s“Due Diligence Guidance” to build management processes
that meet global standards. Specifically, we continuallyconduct initiatives such as cobalt supply chain surveys andidentification and investigation of refineries and smelters.

scrutiny. We have been working in JEITA’s Working Groupto conduct responsible minerals surveys while monitoring
industry trends.

Internal Training and External
Awareness-Raising
Our procurement departments at Panasonic Group conduct
CSR procurement training for our procurement staff
members, who will be able to fulfill our social responsibilities
when it comes to procurement activities, by teachingthem about the company’s approach to CSR, and theycreate opportunities to gain knowledge about procurement
compliance. We also provide training to our procurement

In fiscal 2023, we conducted cobalt and mica surveys for

personnel outside of Japan (the U.S., China, Asia and part ofabout 2,000 suppliers. We received responses from 85% ofEurope) and through that training we give them a foundation

Responsible mineral survey requires cooperation from all

those surveyed. The results showed that roughly 80 percent

of basic knowledge about CSR, including compliance related

our suppliers going back to the refineries and smelters. Theof the designated refiner and smelters had been approved

to the environment or preventing corruption, issues relatedGroup conducts this survey using industry standard survey

as a Conformant/Active Smelter (as of end of March 2023).

to human rights, labor and health and safety in our supply

forms including the Conflict Minerals Reporting Template

We also asked our suppliers to conduct further surveys

chain, and clean procurement, as well as the importance(CMRT) issued by RMI as survey tools.

in response to risks identified through risk analysis andof compliance, checking their understanding along theassessment based on the survey forms collected from ourway. In addition to all this, we also build in basics on CSR

suppliers.

procurement in our training curricula for new employees andminerals on the suppliers of each Operating Company and▪Industry Collaboration Initiatives

those transferring from other divisions.

business site. In fiscal 2023, we received responses for

Panasonic Group is participating in JEITA’s Responsible

roughly 90% of the surveys we sent out to around 2,400

Minerals Procurement Working Group to raise supply

suppliers (as of March 31, 2023). Based on the data collected

chain awareness and improve the efficiency of surveys

from the survey forms, we conducted a risk analysis andthrough industry collaboration. More specifically, we haveassessment and requested further investigations frombeen working with industry groups both inside and outside

suppliers, according to the risks that we identified. In fiscal

Japan and holding seminars and surveys briefing sessions

2023, roughly 80% of the designated refiners and smelters

to promote best practices regarding responsible minerals.

had Conformant/Active Smelter status (refiners and smelters

We have also worked on smelters/refiners information▪Due Diligence Efforts

Conflict Minerals Surveys
The Panasonic Group conducts surveys regarding conflict

Our web portal for procurement employees contains theinformation necessary for responsible procurement—
including the procedures employees should follow for CSR
procurement, the CSR Self-Assessments we ask suppliers
to conduct, and guidelines for conducting audits—sothat employees always have the latest information when
performing their duties.

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Responsible
Supply Chain

To raise awareness in the supply chain, in fiscal 2022, we

WEB For Suppliers

audited more than 130 suppliers in Malaysia, a region withhttps://holdings.panasonic/global/corporate/about/procurement/forsuppliers.html

high human rights risk. We used the opportunity to provide
training on the importance of CSR initiatives and respecting

Policyhuman rights. In fiscal 2023, we continued to hold workshops

Responsible Executive andFrameworkin Malaysia. We also conducted CSR audits at around 50

Supply Chain Due Diligencewith high risk and looking to more regions.

Initiatives for a Harmonious
Relationship with theEnvironment
Responsible Minerals
Procurement
Internal Training and External
Awareness-Raising
Systems for Whistleblowing
and Seeking Consultationand supplier meetings with about 100 suppliers, mainly

WEB Global Hotline

https://secure.ethicspoint.eu/domain/media/en/gui/104773/index.html
WEB Grievance mechanism of Japan Center for Engagement andRemedy on Business and Human Rights (JaCER)
https://jacer-bhr.org/en/index.html

suppliers in Asia. We plan to further expand the scope of our
supplier education by prioritizing those regions and suppliers

Systems for Whistleblowing and
Seeking Consultation
The Panasonic Group has established a Global Hotlinethat anyone, including Panasonic Group employees andsuppliers, can use to anonymously report any violation orsuspected violation of laws and regulations, agreementswith our suppliers, the Panasonic Group Code of Ethics &Compliance or the like in the Group’s supply chain. Whenever
there is a report, the Group follows all internal rules andguidelines as well as the laws of the relevant countries withregard to the protection of the individual making the report,
and from there it undertakes appropriate investigations andcountermeasures. In addition to our Global Hotline, we offer
access to JaCER, a new industrywide grievance platform
established by the CSR Committee of the Japan Electronics
and Information Technology Industries Association (JEITA).
JaCER is a contact point for suppliers and their employees
to report any adverse human rights impacts in the Group’s
supply chain. By accepting grievances through a thirdparty contact, we aim to make grievance handling fairer
and more transparent, promote dialogue and redress morethan ever before, and work to resolve essential human rights
issues. In all reporting systems, we ensure whistleblower
anonymity and report confidentiality and publicize the contact
information for reporting systems on our supplier web portal
and our website, “For Suppliers.”

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