Message from the Chairman
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In April 2006, the Daikin Group formulated and embarked upon the strategic management plan FUSION 10 to maximize corporate value in becoming a Truly Global and Excellent Company. In FY2006, business results saw Daikin achieve its 13th consecutive period of increased profit and its 7th consecutive period of record profit. FY2007 was a year that put Daikin front and center on the world stage as the company purchased O.Y.L. Industries Bhd., the parent company of major US air-conditioner company McQuay International.
From a CSR perspective, the rapid rise of climate change is making its prevention one of the world's most important and pressing tasks. It was a central issue at this year's G8 Summit in Germany, as members agreed on the Heiligendamm Process to pave the way for a post-Kyoto Protocol agreement. As the only company in the world to manufacture both air-conditioners and their fluorocarbon refrigerants, Daikin believes business opportunities exist alongside rigorous fulfillment of its social responsibilities and is currently taking the initiative with the crucial issue of global warming in a desire to meet the expectations of society. |
Creating Technological Innovations for Prevention of Climate Change
The latest report from the IPCC (Intergovernmental Panel on Climate Change) details the wide-ranging effects of climate change: the melting of Greenland's glaciers in the past 10 years at more than twice their normal pace and the doubling in the number of major hurricanes in the past 30 years. The IPCC warns that at this rate sea levels will have risen between 26 and 59 centimeters by 2100, posing a threat to both humans and the animal and plant worlds.
Climate Change relates to Daikin's air-conditioning business in the enormous amount of energy consumed in the US and Europe for heating and hot water originating primarily from the burning of fossil fuels. Daikin's proprietary heaters and hot water heaters utilize heat pumps and are far more efficient than conventional heating systems using fossil fuels, meaning they can dramatically reduce CO2 emissions.
Through bold measures that include achieving the widespread use of heat pump water heaters and room heaters, saving energy through air-conditioners that use inverter technology, developing air-conditioners free of fluorocarbons, and selling more sunlight-reflecting paints, we hope to make a major contribution to the prevention of climate change.
People-oriented Management
One of the greatest responsibilities for a company leader is to create an environment in which employees can share a common dream and a sense of belonging to the company, have unlimited opportunities, enjoy rewarding work, and take on ever greater challenges in their work as their capabilities blossom and grow.
It goes without saying that we must create a workplace that celebrates diversity, where every man and women of every generation and of every physical capability can excel in their respective jobs. I hope we can continue to advance our people-oriented management comprising the benefits of fast and flat management, equal opportunity, fairness of reward, the ability to convince and sympathize with people, the concentration of wide-ranging, valuable knowledge, and the creation of new value by reaching across borders.
Thorough Compliance and Transparency
In FY2003, Daikin published the Handbook for Corporate Ethics, which was distributed publicly to make people aware of the company's systems for corporate ethics and legal compliance. We strive to raise awareness of the importance of compliance through activities including the encouragement of self-initiated inspections and daily checks led by compliance leaders assigned to each workplace.
We are also thorough in our efforts to prevent safety-related product problems. If by chance a problem does occur, we quickly get this information to company management for prompt announcement to the general public.
This year will see us step up internal control related to financial reporting, begin full-scale operation of cross-organizational risk management, and boost the compliance systems of the O.Y.L. Group and other overseas group companies.
The Daikin Group will continue to fulfill its responsibility to all stakeholders in the economic, environmental, and social realms, and achieve further growth for the corporate group while at the same time contributing to the sustainable growth of society.
This report details Daikin's FY2006 CSR and environmentally related efforts and results along with what must be done in future. We ask you, the reader, for your frank opinions on this report.
June 2007
Message from the Chairman
