Climate Change Data

Daikin Group

Climate Impact & Sustainability Data (2022-04-01 to 2023-03-31)

Reporting Period: 2022-04-01 to 2023-03-31

Environmental Metrics

Total Carbon Emissions:1.03 million tons-CO2 (43% reduction compared to fiscal 2015)
Renewable Energy Share:10% target for 2025
Total Energy Consumption:15,400 MWh (equivalent to CO2 emission reductions of 7,400 tons-CO2)
Water Consumption:9.71 million m3
Waste Generated:0.18 million tons

ESG Focus Areas

  • Climate Change
  • Supply Chain Management
  • Human Resource Development
  • Diversity Management
  • Corporate Governance

Environmental Achievements

  • Reduced net greenhouse gas emissions by 14% compared to BAU with 2019 as the base year.
  • Reduced greenhouse gas emissions from residential air conditioners by 19% and from commercial air conditioners by 26% compared to fiscal 2010.
  • Increased renewable energy use to 50% at Daikin Comfort Technologies North America, Inc.
  • Reduced CO2 emissions in logistics processes to 899 tons-CO2

Social Achievements

  • Launched a hypoxic system for offices to promote employee well-being and increase exercise.
  • Increased the number of female managers to 95 (7.6%)
  • Achieved a 44% ratio of local nationals serving as president or director of an overseas subsidiary.
  • Increased the employment rate of persons with disabilities to 2.69%.

Governance Achievements

  • Established a CSR Committee to oversee ESG initiatives.
  • Implemented a self-assessment system to verify compliance with the Group Conduct Guidelines (99% implementation rate).
  • No cases of product recall in fiscal 2022.

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.
  • Increase renewable energy usage to 10% at manufacturing bases by 2025.

Environmental Challenges

  • Rising electricity consumption and greenhouse gas emissions from air conditioner use.
  • Supply chain disruptions due to extreme weather events.
  • Shortage of human resources in DX.
  • Tight supply and demand for electricity in emerging countries.
Mitigation Strategies
  • Promoting the use of energy-efficient products (inverter technology, low GWP refrigerants).
  • Developing alternative sourcing strategies.
  • Establishing the Daikin Information and Communications Technology College (DICT) to foster human resources in DX.
  • Implementing water conservation measures at manufacturing bases in water-stressed regions.

Supply Chain Management

Supplier Audits: 75% of suppliers reached Class A ranking in CSR Procurement in fiscal 2022.

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
  • Extreme weather events
Transition Risks
  • Stricter regulations on refrigerants and energy efficiency
  • Market shifts towards heat pump heating
Opportunities
  • Increased sales of energy-efficient products
  • Expansion of heat pump heating business

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 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 17 (Partnerships for the goals)

Daikin's initiatives contribute to these SDGs through various environmental, social, and governance programs.

Sustainable Products & Innovation

  • Inverter air conditioners
  • Air conditioners using R-32 refrigerant
  • Heat pump space and water heaters
  • Energy-efficient ventilation systems

Awards & Recognition

  • LEED® Platinum certification for Technology and Innovation Center
  • CASBEE certification for Technology and Innovation Center
  • ASHRAE Honors and Awards
  • Energy Conservation Grand Prize awards for various products and initiatives