Climate Change Data

Daikin Group

Climate Impact & Sustainability Data (2022-04 to 2023-03)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:4.70 million tons-CO2 (Daikin Group total in fiscal 2022)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:435 TWh (Daikin Group total in fiscal 2022)
Water Consumption:9.71 million m3 (Daikin Group total in fiscal 2022)
Waste Generated:0.05 million tons (Daikin Group total in fiscal 2022)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Human Resources
  • Supply Chain Management
  • Stakeholder Engagement
  • Corporate Governance

Environmental Achievements

  • Reduced net greenhouse gas emissions by 14% compared to 2019 BAU.
  • Reduced greenhouse gas emissions from manufacturing (development and production) to 1.03 million tons-CO2 in fiscal 2022 (43% reduction compared to fiscal 2015).
  • Increased renewable energy use to 50% at Daikin Comfort Technologies North America, Inc. in fiscal 2022.
  • Reduced CO2 emissions from residential air conditioners by 19% and from commercial air conditioners by 26% compared to fiscal 2010 lifecycle emissions.
  • Reached top share in the European heat pump heating market in 2019 and recorded more than 150% year-on-year growth in the number of heat pump space heaters sold in fiscal 2022.

Social Achievements

  • Launched a hypoxic system for offices to promote employee well-being and reduce insufficient physical activity.
  • Launched Daikin Information and Communications Technology College (DICT) in 2017, training 1300 employees in DX by the end of fiscal 2022.
  • Increased the ratio of local nationals serving as president or director of an overseas subsidiary to 44% and 45%, respectively, as of March 31, 2023.
  • Increased the number of female managers to 95 (7.6%) as of April 2023.

Governance Achievements

  • Established Daikin Group Human Rights Policy.
  • Enhanced human rights risk assessments and self-assessments.
  • Implemented Supply Chain CSR Promotion Guidelines with a focus on human rights and environmental responsibility.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero greenhouse gas emissions by 2050.
Medium-term Goals:
  • Reduce net GHG emissions by 50% or more by 2030 (compared to 2019 BAU).
  • Achieve net-zero greenhouse gas emissions by 2030 at all plants except chemicals plants.
Short-term Goals:
  • Reduce net GHG emissions by 30% or more by 2025 (compared to 2019 BAU).
  • Reduce greenhouse gas emissions from manufacturing to 1.1 million tons-CO2 by 2025.
  • Increase global renewable energy usage to 10% of total energy consumption at manufacturing bases by 2025.

Environmental Challenges

  • Rising electricity consumption and greenhouse gas emissions from air conditioner use.
  • Shortage of human resources in DX.
  • Procurement risks involving quality control, labor practices, and environmental protection.
  • Human rights risks throughout the value chain.
Mitigation Strategies
  • Established Environmental Vision 2050 with a net-zero emissions target by 2050.
  • Launched DICT to develop human resources in DX.
  • Implemented Supply Chain CSR Promotion Guidelines and Green Procurement Guidelines.
  • Established Daikin Group Human Rights Policy and conducted human rights due diligence.

Supply Chain Management

Supplier Audits: CSR questionnaires conducted on suppliers accounting for 80% of total procurement value.

Responsible Procurement
  • Supply Chain CSR Promotion Guidelines
  • Green Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Production delays due to major disasters or water shortages
Transition Risks
  • Stricter regulations on refrigerants and energy efficiency
  • Tight supply and demand for electricity
Opportunities
  • Increased sales of energy-efficient and low-GWP refrigerant products
  • Increased demand for heat pump heating systems

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, TCFD, ISO 26000, Environmental Reporting Guidelines of Japan’s Ministry of the Environment

Certifications: ISO 14001, ISO 9001, ISO 45001

Third-party Assurance: Third-party verification conducted for data on 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)
  • Goal 8 (Decent work and economic growth)
  • Goal 3 (Good health and well-being)
  • Goal 11 (Sustainable cities and communities)
  • Goal 12 (Responsible consumption and production)
  • Goal 15 (Life on land)

Daikin's initiatives contribute to these SDGs through its focus on energy efficiency, renewable energy, sustainable products, responsible supply chains, employee well-being, and community engagement.

Sustainable Products & Innovation

  • Inverter air conditioners
  • Air conditioners with low-GWP refrigerants (R-32)
  • Heat pump space and water heaters
  • Energy-efficient ventilation systems

Awards & Recognition

  • LEED® Platinum certification for Technology and Innovation Center
  • Various Energy Conservation Grand Prizes