Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Air Quality
• Supply Chain Management
• Human Resources
• Corporate Governance

Environmental Achievements

• Reduced net greenhouse gas emissions by 10% in FY2021 compared to BAU with FY2019 as the base year.
• Reduced greenhouse gas emissions during development and production by 36% compared to FY2015.
• Sold over 160 million R-32 air conditioners, contributing to an estimated 260 million tons-CO2 emissions reduction.
• Sales of Daikin Altherma heat pumps grew 4.5 times since FY2014.

Social Achievements

• Launched research on optimal thermal control for daytime napping to improve productivity.
• Maintained stable product supply globally despite the COVID-19 pandemic and component shortages.
• Increased CSR procurement achievement rate to 72% in 2021.

Governance Achievements

• 4 external directors, 1 female director, 1 foreign national director among the 11 directors (Daikin Industries, Ltd. only).
• 99% self-assessment implementation rate for human rights and compliance.

Climate Goals & Targets

Environmental Challenges

• Rising electricity consumption and greenhouse gas emissions from increasing air conditioner demand.
• Supply chain disruptions due to the COVID-19 pandemic, semiconductor shortages, and other factors.
• High cost of inverter air conditioners hindering their widespread adoption in emerging markets.

Mitigation Strategies

• Partnerships with other manufacturers to reduce costs and improve efficiency of inverter air conditioners.
• Advocacy for energy efficiency standards and labeling systems in various countries.
• Development and promotion of heat-pump space and water heaters as a replacement for combustion heating.
• Switching to refrigerants with lower global warming potential (R-32).
• Establishment of a variable model variable volume production system for flexible production adjustments.
• Global collaboration and information sharing to manage supply chain risks.

Supply Chain Management

Supplier Audits: 72% Class A CSR procurement achievement rate in 2021

Responsible Procurement

• Class A in-house standards for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (e.g., earthquakes, flooding)

Transition Risks

• Regulatory changes related to greenhouse gas emissions and refrigerants.
• Market shifts towards decarbonization.

Opportunities

• Growth in demand for energy-efficient air conditioners and heat pumps.
• Development of new refrigerants with lower global warming potential.
• Expansion of energy services business.

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Eco First Company (Japan)

Sustainable Products & Innovation

• Inverter air conditioners
• R-32 refrigerants
• Daikin Altherma heat pumps

Awards & Recognition

• Good Design Award (4 products)
• NIKKEI Smart Work Awards 2022 (5-star rating)
• CDP Climate Change A List
• Minister of Economy, Trade and Industry Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Refrigerant Management
• Sustainable Development Goals

Environmental Achievements

• Globally achieved a 14% reduction in net greenhouse gas emissions compared to a business-as-usual scenario in fiscal year 2022 (using 2019 as a baseline).
• Reduced greenhouse gas emissions from Daikin Europe and Daikin Applied Europe factories by approximately 40% between fiscal years 2019 and 2022, while sales turnover increased by more than 50%.
• Two factories in the EMEA region achieved bronze status in the Daikin Green Heart Factory Programme in 2022.
• AHT factory in Austria installed a 1.95 MWp solar power plant, covering 20% of total power consumption.
• Daikin Austria implemented an industrial heat pump project reducing estimated gas consumption by 5,000 MWh annually.
• Daikin Industries Czech Republic reused over 80 tonnes of iron scrap in fiscal year 2022.
• Daikin Middle East and Africa installed a solar plant meeting more than 80% of energy demand.
• Daikin Manufacturing Germany GmbH sources 100% green electricity since January 2023.

Social Achievements

• Opened its first training centre in Nigeria in collaboration with ETIWA TECH LTD/GTE.
• Planted 20,000 tree saplings in Türkiye as part of the “Daikin Forest Project”.
• Daikin UAE committed to the national goal of achieving net-zero carbon emissions by 2050.

Governance Achievements

• Daikin endorses the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
• Daikin has been A-Listed by the Carbon Disclosure Project (CDP).
• Daikin Europe N.V. obtained the SDG Champion label for three consecutive years.

Climate Goals & Targets

Environmental Challenges

• Reducing the energy impact and refrigerant emissions of sold products during their use and end-of-life phases.
• Insufficient market data for accurate calculation of end-of-life refrigerant emissions.

Mitigation Strategies

• Providing energy-efficient products and solutions using state-of-the-art technologies.
• Supporting service partners to ensure proper installation and maintenance.
• Minimising the risk of refrigerant emissions, lowering the Global Warming Potential (GWP), and stimulating proper recovery, reuse, or destruction practices.
• Collecting more market data in cooperation with the service network to update refrigerant emission calculations.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and heat pumps.

Reporting Standards

Frameworks Used: TCFD, UN Global Compact, GHG Protocol

Certifications: ISO 14001:2015, ISO 50001:2011

Third-party Assurance: Bureau Veritas Japan CO Ltd.

Sustainable Products & Innovation

• Multi + heat pump system
• Altherma 4 heat pump
• VRV R-32 heat recovery range
• Zanotti refrigeration monobloc inverter unit
• ZEAS refrigeration condensing units

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Value from Air
• ESG Governance

Environmental Achievements

• Achieved a 17% reduction in greenhouse gas emissions compared to a business-as-usual scenario in fiscal year 2023.
• Avoided production of over 400,000 kg of virgin refrigerant through the Loop by Daikin product range.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Loop by Daikin product range

Awards & Recognition

• Not disclosed