Sustainability Governance & Compliance
Corporate Governance
Committed to Sustainable Growth, We Continue to Enhance Management Transparency and Accountability
Embedding Sustainability into Executive Compensation and Evaluation
Although Panasonic Connect is not a listed company, we introduced a performance-based compensation system linked to ESG indicators in April 2023 to demonstrate our commitment to enhancing corporate value over the medium to long term. Executive compensation consists of fixed and variable components, with executive performance evaluations incorporating both financial and non-financial indicators. In addition to environmental indicators, these non-financial indicators include measures related to diversity and cultural transformation, such as increasing the ratio of women managers. Through this framework, we promote management that balances financial performance with contributions to sustainability.
Promoting Diversity in Leadership
To incorporate diverse perspectives into management decision-making, we actively promote diversity within our leadership team. As of FY2026, women accounted for 16.7% (3 of 18) of executive officers, while mid-career hires accounted for 38.9% (7 of 18). Beyond gender diversity, our leadership team includes individuals with diverse professional backgrounds and experiences, enabling a broader range of perspectives in management.
Risk Management with a Sustainability Perspective
We strengthen enterprise risk management (ERM) by incorporating sustainability considerations into risk management and assessing risks and opportunities in an integrated manner. In addition to risks associated with climate change and cybersecurity, we address geopolitical changes, supply chain disruptions, and increasingly diverse and complex risks. We are also strengthening business continuity planning (BCP) and business continuity management (BCM). By linking ERM and BCM, management can appropriately assess risks, enhance resilience, and support strategic decision-making.
Diversity Among Executive Officers
FY2026 Results
Women
16.7
％
Mid-Career Hires
38.9
％
Building a Sustainable Supply Chain Through Partnership
By balancing responsible procurement with value-creating procurement, we contribute to a sustainable future across the supply chain.
Building a Foundation for Responsible Procurement - Supply Chain Due Diligence
The Panasonic Group conducts due diligence across its supply chain based on the principle of doing business with partners that fulfill their social responsibilities. In 2022, the Procurement Division updated the Supply Chain CSR Promotion Guidelines. All partners are requested to respond to the guidelines and complete a CSR self-assessment before the start of business transactions.
CSR self-assessments are updated every three years. Where elevated risks are identified, on-site assessments are conducted and corrective actions are requested. Through these efforts, we help prevent adverse impacts on human rights and the environment while strengthening business continuity throughout the supply chain.
Co-creating Value with Partners - ECOVC Activities
Building on the foundation of responsible procurement, we promote ECOVC activities to create new value together with our partners. This Panasonic Group initiative seeks to balance environmental value (ECO) with Value Creation (VC) by combining our expertise with the capabilities of our partners to strengthen the competitiveness of the entire supply chain.
For example, in response to environmental regulations and rising material and labor costs, we work with partners to optimize product specifications, processes, and workloads, creating win-win outcomes for both partners and Panasonic.
These activities are also aligned with the Panasonic GREEN IMPACT long-term environmental vision.
Responsible Procurement Activities
FY2026 Results
Supplier CSR Assessment
Questionnaire
Completed
100
％
Assigned Supplier CSR
Assessment Questionnaire
Completed
100
％
On-Site Supplier Audits
Completed
13
Compliance and Integrity
We foster a fair and trusted organizational culture by making integrity the foundation of our business activities.
Putting Integrity into Practice
By thoroughly implementing the Panasonic Group Code of Ethics & Compliance, we encourage every employee to think and act independently based on integrity.
In addition to ongoing messages from management and employee training programs, we continue to hold “Compliance Workplace Discussions,” where employees take the lead in discussing workplace issues and identifying solutions. Through these efforts, we foster a workplace culture grounded in integrity.
Harassment Prevention and Whistleblowing System
To create a workplace where employees can work with confidence, we actively promote the elimination of harassment and the appropriate use of whistleblowing system.
Through regular ALL HANDS MEETINGS, the CEO continues to communicate the importance of addressing misconduct and harassment. Employees and external stakeholders also have access to the Panasonic Group’s global hotline, “EARS,” which enables concerns to be reported anonymously. We have also established rigorous disciplinary standards that reflect evolving societal expectations and apply them fairly and transparently.
Reports are handled by an independent Compliance Committee and investigated as necessary with support from external experts. Retaliation against individuals who raise concerns is strictly prohibited, allowing employees to speak up without fear of disadvantage.
In FY2026, the Panasonic Connect Group received 240 reports through EARS. In Japan, the reporting rate exceeded one case per 100 employees, surpassing the APAC benchmark.
Through open dialogue and effective reporting mechanisms, we work to identify compliance issues early and respond promptly.
Quality & Environmental Compliance
We provide high-quality products and solutions with consideration for the global environment.
Basic Policy
Panasonic Connect positions quality and environmental compliance as one of its most critical management priorities, aiming for a sustainable future. By establishing and operating a quality and environmental management system that conforms to international standards and ensuring full compliance with product and environmental regulations, we continuously provide customers with high-quality products and solutions. Furthermore, as a global company, we recognize global environmental issues as a key management challenge and are committed to working together to realize a sustainable society. Additionally, we promote initiatives such as reducing CO2 emissions and making effective use of resources across our entire value chain. Together with all our stakeholders, including our customers, we will pursue the realization of sustainability.
Governance Items
| Quality | Environment |
|---|---|
|
|
Enhancing Management Quality Through Learning and Continuous Improvement
By learning from past failures and fostering an Integrity Mind, we build trust with society and our customers while enhancing management quality.
Establishment of the Management Quality Learning Center
Ensuring safety, quality, and compliance is fundamental to earning the trust of customers and society. To ensure these principles are shared and practiced throughout the organization, we established the Management Quality Learning Center.
The center embodies our commitment to “never letting failures fade and never repeating the same mistakes.” It transforms lessons learned from past failures into organizational learning and helps employees apply those lessons to their daily work.
The exhibits are regularly reviewed and updated to maintain their relevance and learning value. Display areas are organized into categories such as information security, quality and compliance, construction safety, environmental compliance, workplace quality, system quality, and design quality.
As a place that promotes quality and safety as top priorities and fosters a culture of compliance, the center provides continuous learning opportunities for employees, including management, while strengthening awareness of quality improvement and the prevention of recurrence across the organization.
In FY2026, more than 6,000 Panasonic Group employees visited the center through in-person and virtual programs. Since opening the facility to external visitors in FY2020, more than 90 customer organizations have also visited.