Climate Change Data

Daikin Industries, Ltd.

Climate Impact & Sustainability Data (2021-04 to 2022-03)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:1.16 million tons-CO2 (development and production)
Total Energy Consumption:415 TWh (energy consumption from Daikin products)
Water Consumption:9.85 million m3
Waste Generated:0.17 million tons

ESG Focus Areas

  • Climate Change
  • Air Quality
  • Supply Chain Resilience
  • 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 35 million R-32 air conditioners, contributing to an estimated 260 million tons-CO2 emissions reduction.

Social Achievements

  • Launched research on optimal thermal control for daytime napping, aiming to improve worker productivity.
  • Maintained stable product supply globally despite the COVID-19 pandemic and semiconductor shortage.
  • Increased CSR procurement implementation rate to 72%.

Governance Achievements

  • Daikin Industries, Ltd. had 4 external directors, 1 female director, and 1 foreign national director among its 11 directors.
  • Self-assessment implementation rate of 99%.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero greenhouse gas emissions by 2050.
Medium-term Goals:
  • Reduce net greenhouse gas emissions by 50% or more in 2030 compared to BAU (2019 baseline).
  • Achieve net sales of 290 billion yen for IAQ/Ventilation business in fiscal 2023.
  • Achieve net sales of 560 billion yen for Air Conditioning Solutions business in fiscal 2023.
Short-term Goals:
  • Reduce net greenhouse gas emissions by 30% or more in 2025 compared to BAU (2019 baseline).

Environmental Challenges

  • Rising electricity consumption and greenhouse gas emissions from air conditioner usage.
  • 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
  • Partnering with other manufacturers to produce lower-cost inverter air conditioners.
  • Advocating for energy efficiency standards in emerging countries.
  • Establishing a variable model variable volume production system and a robust Business Continuity Plan (BCP).
  • Centralizing supply chain information using digital technology and localizing procurement.

Supply Chain Management

Supplier Audits: 72% CSR procurement implementation rate in 2021

Responsible Procurement
  • Class A CSR procurement standards

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters (e.g., Great East Japan Earthquake, Thailand flooding)
Transition Risks
  • Regulatory changes (e.g., European Green Deal)
  • Market shifts (e.g., transition to heat pumps)
Opportunities
  • Growing demand for energy-efficient air conditioners and heat pumps.
  • Development of new refrigerants with lower global warming potential.

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Eco-First Company (Japan)

Third-party Assurance: Third-party verification for greenhouse gas emissions, water use, wastewater, waste emissions, and chemical substances emissions.

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 13 (Climate Action)

Sustainable Products & Innovation

  • Inverter air conditioners
  • Heat-pump space and water heaters
  • R-32 refrigerant air conditioners
  • Daikin Altherma 3H HT heat pump

Awards & Recognition

  • NIKKEI Smart Work Awards 2022
  • Minister of Economy, Trade and Industry Award
  • Good Design Award