Daikin Group

Climate Impact & Sustainability Data (2020-04 to 2021-03, 2023-04 to 2024-03)

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:1.08 million tons-CO2 (development and production)

Scope 1 Emissions:602,203 tCO2e

Scope 2 Emissions:527,190 tCO2e (location-based), 484,214 tCO2e (market-based)

Scope 3 Emissions:282,942,540 tCO2e

Water Consumption:4,470 thousand m3 (overseas)

Waste Generated:100 thousand tons (overseas)

ESG Focus Areas

Climate Change
Energy Efficiency
Refrigerant Management
Human Resources
Customer Satisfaction
Supply Chain Management
Stakeholder Engagement
Corporate Governance

Environmental Achievements

Reduced greenhouse gas emissions by 70 million tons-CO2 compared to a target of 60 million tons-CO2
Reduced greenhouse gas emissions from development and production by 79% compared to fiscal 2005 (to 1.08 million tons-CO2)
Increased sales volume of environmentally conscious air conditioners to 98% of residential air conditioners.
7 million tons-CO2 emission reduction through forest preservation activities

Social Achievements

Increased the ratio of excellent or advanced skilled engineers in manufacturing to 1 in 3.3 employees
Increased percentage of overseas bases where local nationals are presidents to 43%
Reduced frequency rate of work-related accidents to 1.01
Improved after-sales service customer satisfaction in various regions (e.g., Japan: 1.14, China: 1.04)

Governance Achievements

99% self-assessment implementation rate for compliance
CSR procurement rate of 99%

Climate Goals & Targets

Long-term Goals:

Achieve net-zero greenhouse gas emissions by 2050

Medium-term Goals:

Reduce greenhouse gas emissions by 50% or more by 2030 (compared to BAU with 2019 as the base year)
Achieve net-zero greenhouse gas emissions by 2050

Short-term Goals:

Reduce greenhouse gas emissions by 30% or more by 2025 (compared to BAU with 2019 as the base year)

Environmental Challenges

Tripling of worldwide electricity demand for space cooling by 2050
Stricter energy regulations for air conditioners and tighter regulations on refrigerants with high global warming potential
Tight supply and demand for electricity in emerging countries
Potential damage to production bases from extreme weather events
Growing need for safe and reliable air environments

Mitigation Strategies

Environmental Vision 2050 with a target of net-zero greenhouse gas emissions by 2050
Greenhouse gas reduction targets (30% or more by 2025 and 50% or more by 2030 compared to BAU)
Development and spread of higher energy-efficient air conditioners and refrigerants with lower global warming potential
Creation of new environmental solutions, such as efficient utilization of energy tied to buildings
Building a resilient supply chain
Promoting digitalization
Collaboration with stakeholders to promote energy efficiency and establish energy efficiency standards in emerging countries

Supply Chain Management

Supplier Audits: 99% CSR procurement rate

Responsible Procurement

Daikin’s in-house standards for environmental action, quality control, labor practices, and environmental protection

Climate-Related Risks & Opportunities

Physical Risks

Damage to production bases from flooding caused by typhoons

Transition Risks

Stricter regulations on refrigerants
Stricter regulations on energy efficiency
Stricter regulations on the use of fossil fuels

Opportunities

Increased sales of air conditioners using refrigerants with lower global warming potential
Increased sales of heat pump heaters
Increased sales of air conditioners with high energy efficiency

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, ISO 26000, UN Global Compact, TCFD

Third-party Assurance: Bureau Veritas Japan Co., Ltd.

Sustainable Products & Innovation

Inverter air conditioners
Air conditioners using refrigerants with lower global warming potential
Heat pump space and water heaters
Air purifiers with anti-viral HEPA filter
Negative pressure units and booths

Awards & Recognition

Minister of the Environment Award (Silver)
IR Grand Prix from the Japan Investor Relations Association
Three Chairman Prizes of Energy Conservation Center, Japan
Minister of Economy, Trade and Industry Award at the Intellectual Property Achievement Awards
Clarivate Top 100 Global Innovators 2021 Award
Good Design Award
Nikkei Superior Products and Services Award 2020
WELL Certification (point 0 marunouchi)
SDG Pioneer certificate from UNITAR

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:329.57 million tons-CO2e

Scope 1 Emissions:0.23 million tons-CO2e

Scope 2 Emissions:0.41 million tons-CO2e

Scope 3 Emissions:328.93 million tons-CO2e

Water Consumption:10.34 million m3

Waste Generated:7,443 tons (Japan)