Stricter Environmental Regulations and Environmental Compliance Costs
First written in FY2016. 4 of 5 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Panasonic Holdings moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2026: 5 of 9 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「If climate-related laws and regulations, including the US IRA (Inflation Reduction Act), are repealed or scaled back, demand for products including automotive batteries and tax incentives under the IRA may fall below the Group’s expectations.」
Environmental regulatory and policy risk became more specific, including the risk of lower automotive battery demand and tax incentives due to the scaling back of programs such as the IRA and slower EV adoption. - FY2024WorsenedAnnual report
「In connection particularly with Panasonic Energy Co., Ltd.’s automotive battery business, if policies such as the easing of US regulations on automotive CO₂ emissions cause the pace of EV adoption and customer demand in the North American automotive market to fall below the Group’s expectations, capital investment plans may be delayed and the Group’s business and results may be adversely affected by lower production of automotive batteries and other factors.」
Environmental regulatory and policy risk became more specific, including the risk of delayed capital investment and lower automotive battery production due to reduced incentives under programs such as the US IRA and lower EV adoption and customer demand. - FY2023WorsenedAnnual report
「The enactment, particularly in Europe and the United States, of laws and regulations concerning recycling of electrical and electronic equipment and the “right to repair” has made the urgent transformation to business models that respond to longer product lives based on repair and the recycling of raw materials a key issue.」
Environmental regulatory risk expanded beyond carbon pricing and material conversion to include recycling, the right to repair, and higher prices or shortages of recycled resources. - FY2022WorsenedAnnual report
「Among the risks given particular priority is the introduction and expansion of environmental regulations and policies internationally, driven by growing awareness of environmental issues. While this is expected to create greater opportunities to develop technologies and businesses that respond to environmentally focused policies and regulations, the introduction of carbon pricing, including carbon taxes and emissions trading schemes, may increase energy procurement costs or require the purchase of emissions allowances. In addition, switching to materials with lower environmental impact may increase manufacturing costs, and the commoditization of low-carbon products may adversely affect the Group’s business and results.」
Environmental regulatory risk was classified as a particularly important risk, with specific consideration given to carbon pricing, material conversion costs, and the price and supply risks of recycled resources. - FY2016First statedAnnual report
「The Group is subject to various environmental laws and regulations concerning climate change, resources, water, biodiversity, chemical substances, waste, product recycling, and soil, groundwater, and air pollution, and may incur environmental costs and liabilities.」
Costs and liabilities arising from tighter regulations and progress in CSR initiatives were identified as risks.