Canon 40D has a 10.0MP APS-C (22.2 x 14.8 mm ) sized CMOS sensor . On the other hand, Panasonic G95 has a 20.3MP Four Thirds (17.3 x 13 mm ) sized CMOS sensor and features Venus Engine processor.
Panasonic G95's sensor provides 10.3MP more than Canon 40D's sensor, which gives a significant advantage in real life. You can print your images larger or crop more freely.
On the other hand, please keep in mind that Max sensor resolution is not the only determinant of resolving power. Factors such as the optical elements, low pass filter, pixel size and sensor technology also affects the final resolution of the captured image.
One other difference between these two cameras that is worth mentioning is that Panasonic G95's sensor doesn't have an anti-alias (Low-Pass) filter. Removing anti-alias filter increases the sharpness and level of detail but at the same time, it increases the chance of moire occurring in certain scenes.
Below you can see the 40D and G95 sensor size comparison.
As seen above, Canon 40D has a 1.5x Larger sensor area than Panasonic G95. Larger sensors give photographer more control on the depth of field and blurry background compared to smaller sensor when shot in same focal length and aperture.