Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• New Value Creation
• Customer Satisfaction
• Human Resources
• Governance
• Risk Management
• Climate Change

Environmental Achievements

• Reduced greenhouse gas emissions by 68 million tons of CO2 (promoting adoption of environmentally-conscious products)
• Reduced greenhouse gases during development and production by 76% over fiscal 2005 (reduced to 1.28 million tons of CO2)
• Reduced the amount of new refrigerant charged to commercial-use, multi-split air conditioners sold in Europe by approximately 40% compared with the past through refrigerant reclamation and the launch of VRV L∞P.

Social Achievements

• Developed the first air conditioner subscription business in Tanzania in collaboration with WASSHA Inc., overcoming challenges of high electricity bills and high air conditioner prices.

Governance Achievements

• Disclosed the status of its initiatives for “governance,” “risk management,” “strategy” and “metrics and targets” relating to climate change in accordance with TCFD recommendations.

Climate Goals & Targets

Environmental Challenges

• Soaring prices of a tight refrigerant market and a stagnant rate in refrigerant recovery.
• High electrical bills and high price of purchasing air conditioners in developing countries.

Mitigation Strategies

• Established a refrigerant reclamation facility in Germany.
• Launched VRV L∞P, a commercial-use multi-split air conditioner that uses recovered refrigerant.
• Developed an air conditioner subscription business model in collaboration with WASSHA Inc. to address high electricity bills and air conditioner costs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• VRV L∞P

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, TCFD, ISO 26000

Environmental Metrics

ESG Focus Areas

• Social
• Governance
• Environment

Environmental Achievements

• Not disclosed

Social Achievements

• Launched Air as a Service (AaaS), a subscription-based air conditioning service, resulting in a two-fold increase in contracts over the previous two years.
• Sold and installed approximately 2,000 subscription-based air conditioners in Tanzania.
• Formulated a reference guideline on infectious disease control for schools through industry-academia collaboration.
• Developed and launched four UV Streamer air purifiers with high antiviral and antibacterial effects.
• Improved customer satisfaction index (CSI) to a record high in 2023.

Governance Achievements

• Raised mandatory retirement age from 60 to 65.
• Established a global human resources database, DAIKIN People.
• Increased the percentage of female employees to 19% and female managers to 8%.
• Maintained a statutory employment rate of persons with disabilities of 2.81%.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Regular quality audits and CSR questionnaires (80% of total procurement value)

Responsible Procurement

• Supply Chain CSR Promotion Guidelines, Green Procurement Guidelines, conflict mineral surveys

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001 (major manufacturing bases), ISO 45001 (62 bases)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• UV Streamer air purifiers, energy-efficient ventilation systems, subscription-based air conditioners

Awards & Recognition

• Global Cooling Prize Grand Prize (2021), Osaka Governor’s Award (2022), 2023 ISCN Excellence Award, Minister of Internal Affairs and Communication Award (2022), Good Design Award (2023)