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Eco-Efficiency icon Eco-Efficiency: Panasonic Healthcare

Improving Energy Efficiency in Production Facilities

Key Environmental Performance Area:

  • Greenhouse Gas Emissions (Facilities)

Replaced current equipment with high-efficiency equipment in Japanese facilities in 2015.

Avoided 3,600 metric tons of greenhouse gas emissions due to efficiency improvement since 2012.

Avoided approximately $1 million in costs due to efficiency improvement since 2012.

Challenge

The industrial sector accounts for approximately half of global energy use and produces approximately 1.3 billion metric tons of greenhouse gas emissions annually.i,ii Manufacturers can help manage their energy consumption and associated costs as well as environmental impacts by improving the efficiency of their facilities and production processes.

Panasonic Healthcare is a leading provider of diabetes monitoring systems, specialized laboratory equipment, and clinical healthcare IT systems in Japan and worldwide. Panasonic Healthcare is focused on improving the energy efficiency of its facilities and has been tracking the results of these efforts.

Response

In 2015, Panasonic Healthcare measured and managed energy consumption in its Japanese facilities against a 2012 performance baseline. To improve energy efficiency, the company:

  • Replaced existing vacuum pumps with pumps that have inverter control.
  • Replaced equipment such as compressors, air conditioners, and power receiving equipment with more energy efficient units.
  • Reduced power consumption by addressing air leakage.
  • Transitioned from water-cooled to air-cooled air conditioning technology.

Resultsiii

In absolute terms, greenhouse gas (GHG) emissions from facilities decreased approximately 17 percent compared to a 2012 baseline, while efficiency has improved approximately 14 percent (GHG/revenue) during the same period. This efficiency improvement has helped Panasonic Healthcare to avoid more than $1 million in costs, or almost JPY 124.1 million, and an estimated 3,600 metric tons of GHG emissions since 2012.

GHG Efficiency (2011 Baseline)
Estimated Results 2013 2014 2015 Total
Avoided GHGs (metric tons) 840 250 2,500 3,600
Avoided costs $296,000 $83,000 $674,000 $1,053,000

i U.S. Energy Information Agency. "How much energy is consumed in the world by each sector?" 7 January 2015. Web. 22 April 2016. http://www.eia.gov/tools/faqs/faq.cfm?id=447&t=1%20.

ii Brueske , S., Sabouni, R., Zach, and Andres, H. U.S. Manufacturing Energy Use and Greenhouse Gas Emissions Analysis. November 2012. Web. 21 April 2016. http://www.energy.gov/sites/prod/files/2013/11/f4/energy_use_and_loss_and_emissions.pdf.

iii Reported results are based upon data provided by the portfolio company, and have not been reviewed or independently verified by KKR or KKR Capstone. KKR may calculate the figures presented in an effort to ensure calculation methodologies are consistently applied across companies in the Eco-Efficiency category. For more information regarding KKR’s calculations, please see the methodology section. There is no guarantee that any GSP-related avoided costs or added efficiencies will positively impact the portfolio company’s valuation or performance.

Unless otherwise noted, portfolio company data represents 2015 results, published in August 2016. These case studies may contain forward looking statements including descriptions of planned projects and projected results and savings. These statements are subject to the risk that the projects will not develop as planned or at all or that projected results and savings are not realized.