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CSR and Strategy

Value Chain

Acting with Consideration for Our Impact on Society

The Daikin Group’s business activities impact society in various stages of the value chain, and the scope of this impact is expanding with globalization. We therefore identify the importance (materiality) of our actions with consideration of these impacts and incorporate this into our strategic management plan.

Values from Scope 1,2,3 third-party verification

  • Scope 1: Direct greenhouse gas emissions
  • Scope 2: Energy-induced indirect greenhouse gas emissions
  • Scope 3: Other indirect greenhouse gas emissions

Procurement

Demands and Expectations of Society

Throughout the globally expanding supply chain, Daikin is expected to respond to various procurement risks involving, for example, human rights, labor practices, compliance, and environmental protection.

Daikin Group Environmental Impact

CO2 Emissions from Procurement and Materials
1.53 million ton-CO2 Scope 3
(Japan, China, Asia, Oceania, Europe)

Actions Considering Daikin’s Impact on Society

Supply chain management [Fundamental CSR]

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Development, Design

Demands and Expectations of Society

As air conditioner demand grows in emerging markets and other countries, Daikin must develop products that satisfy customer needs by offering, for example, comfort, superb environmental performance, and quality that meets regional climate.

Actions Considering Daikin’s Impact on Society

Development and design of products with superb environmental performance [Environment]

The Technology and Innovation Center will lead efforts to create technologies and products that differentiate Daikin. [New Value Creation]

R&D Expenditure 4.61 billion yen
Compared to previous fiscal year 107% (Global Group)

Number of Patent Applications (FY2014)
1,292 (Daikin Industries, Ltd. only)

Develop human resources with the goal of boosting R&D prowess [Human Resorces]

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Manufacturing

Demands and Expectations of Society

It is crucial that Daikin increase productivity while at the same time improving manufacturing quality and reducing environmental impact at all worldwide production sites.

Daikin Group Environmental Impact

Energy-induced CO2 Emissions
710,000 tons-CO2 Scope 1,2
Compared to previous fiscal year 104% (Global Group)

Greenhouse Gas Emissions Other than CO2
550,000 tons-CO2 Scope 1
Compared to previous fiscal year70% (Global Group)

Actions Considering Daikin’s Impact on Society

Increase manufacturing efficiency and boost product quality [Customer Satisfaction]

Build global system for skills transfer [Human Resorces]

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Sales, Transportation, Installation

Demands and Expectations of Society

Faulty air conditioner installation not only causes quality problems but also leads to environmental problems such as refrigerant leakage. It is crucial that Daikin raises the level of installation skills of employees and retailers worldwide.

Daikin Group Environmental Impact

CO2 Emissions from Transportation
22,000 tons-CO2 (Japan) Scope 3
Compared to previous fiscal year 85%

Actions Considering Daikin’s Impact on Society

Contribute to mitigation of global warming by preventing refrigerant leakage
Train Installation Technicians in Order to Prevent Fluorocarbon Leakage
[environment]
19,360 (Japan, Asia)

Support retailers and dealers through, for example, information provision
[Customer Satisfaction]

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Usage

Demands and Expectations of Society

A look at the lifecycle of air conditioners reveals that CO2 emissions during their usage have the largest impact on climate change.

Daikin Group Environmental Impact

CO2 Emissions from Daikin Air Conditioners on the Market
101.5 million tons-CO2 Scope 3
(Japan, China, Asia, Oceania, Europe)

Actions Considering Daikin’s Impact on Society

Contribute to mitigation of global warming through state-of-the-art technologies
Contribution to CO2 Emission Reductions Worldwide
* [environment]
34.8 million tons-CO2 Third-Party Review

*Total of CO2 reductions as a result of using inverter products and conversion to HFC-32 refrigerant.

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After-sales Service, Recovery, Recycling

Demands and Expectations of Society

To achieve a recycling-based society, it is crucial that we are thorough in recycling air conditioners and recovering/recycling refrigerants.

Actions Considering Daikin’s Impact on Society

Thoroughly recycle in order to achieve a recycling-based society [environment]

Air conditioner recycling volume
9,419 tons (Japan) Compared to previous fiscal year 98%

Fluorocarbon recovered during repair and final disposal
930,000 tons-CO2 (Japan) Compared to previous fiscal year 96%

Improve ability to respond to customers After-sales service customer satisfaction rate [Customer Satisfaction]
4.05 (weighted average of five-stage assessment) (Japan)

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