One of the key environmental targets of the fiscal 2010 Fusion 15 strategic management plan is to reduce total Group CO2 emissions to one-third of fiscal 2005 levels by fiscal 2015 (67% reduction).
As a result of efforts towards this target, overall Group greenhouse gas emissions in fiscal 2011 were 1.56 million tons-CO2, down by 62% over fiscal 2005.
Greenhouse Gas Emissions for the Entire Group (during production)
Note: Fiscal 2015 targets include emissions of the OYL Group. The calculation standard for fluorocarbons has been unified; therefore, data back to fiscal 2005 has been revised.
The Daikin Group in Japan emitted 290,000 tons-CO2 of gases designated by the Kyoto Protocol (CO2, HFC, and PFC) in fiscal 2011, a reduction of 97% compared to the 10.33 million tons-CO2 emitted in the base year of the Kyoto Protocol (FY1990 for CO2, FY1995 for HFC and PFC).
Although CFC and HCFC are not indicated by the Kyoto Protocol as targeted gases, the Daikin Group is working to reduce these emissions. In fiscal 2011, emissions of these two gases were 530,000 tons-CO2.
An international agreement under which developed countries are obligated to reduce overall greenhouse gases by at least 5% compared to 1990 between 2008 and 2012. It was passed in 1997 at the 3rd Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change in Kyoto. Greenhouse gases designated by the Kyoto Protocol are CO2, methane, N2O, and three CFC alternatives (HFC, PFC, and SF6). Major developed nations are obligated to reduce greenhouse gas emissions: Japan by 6%, the United States by 7% (although the United States has not ratified the Kyoto Protocol), and the EU by 8%. In March 2008, Japan's Cabinet approved a revised plan for targets that includes additional measures to improve the energy efficiency in the residential and construction sectors. The government is also aiming to achieve Japan's targets through revision of the Law Concerning the Promotion of the Measures to Cope with Global Warming.
The Daikin Group emits two kinds of greenhouse gases: CO2 from energy use, and fluorocarbons handled in the production processes.
Of these, there are four kinds of fluorocarbons released during Daikin's production processes: HFC and PFC, which are covered by the Kyoto Protocol, and CFC and HCFC, which are not. We have set reduction targets for each of these fluorocarbons.
In fiscal 2011, we reduced PFC emissions in fluorochemical production processes and succeeded in lowering emissions by 100,000 tons-CO2 over the previous year. As a result, fiscal 2011 emissions of the HFC and PFC covered by the Kyoto Protocol were 170 tons (960,000 tons CO2 equivalent), a 73% reduction over fiscal 2005.
Fiscal 2011 emissions of CFC and HCFC were 1 ton and 348 tons respectively, a 57% decrease over fiscal 2005.
HFC and PFC Emissions and Global Warming Impact
CFC and HCFC Emissions and Global Warming Impact
The fluorocarbons emitted in the Chemicals Division are raw materials and by-products in the production of fluorochemical products. To prevent such emissions, we have been installing recovery equipment on production lines and properly destroying the fluorocarbon gases recovered. We also take the fluorite generated during the destruction process and use it as raw material for the production of fluorochemical products.
To reduce fluorocarbon emissions, the Chemicals Division has been establishing facilities since fiscal 2001 for the proper recovery and destruction of fluorocarbons during manufacturing processes.
In fiscal 2009, we built new recovery facilities at the Yodogawa and Kashima plants, and in fiscal 2010 we upgraded destruction facilities (special incinerator) at the Yodogawa Plant to ensure stable operation.
In countries in which we operate that have no fluorocarbon emission restrictions, we voluntarily recover gas and either destroy it at our factories or outsource destruction.
In December 2008, fluorocarbon destruction facilities that we built in Daikin Thailand were certified by the government and this site can now destroy fluorocarbons recovered at other group companies in Thailand.
We are also establishing destruction facilities at manufacturing bases in China and the U.S.
During the air conditioner manufacturing process, we do everything possible to ensure no refrigerants (HFC, HCFC) leak during filling.
These measures include the following:
All this and other related work is done by certified technicians according to maintenance manual procedures. Technicians also undergo training every year based on the manual.
To prevent refrigerant gas from leaking from air conditioners, all products are inspected for air-tightness during manufacturing using inspection gas.
For this inspection gas, the Daikin Group has gradually been switching from HCFC to helium, which does not deplete the ozone layer and is not a greenhouse gas. This means that even if a product is defective and leaks gas during inspection it will not harm the environment.
In the machinery divisions of the Daikin Group, where air conditioners are made, we have switched from HCFC to helium gas for inspections at 20 manufacturing bases around the world. With the switch to helium gas at the Sakai Plant in 2009, all Daikin plants in Japan no longer use HCFC as inspection gas.
Overseas, before the end of 2010, we phased out the use of HCFC at plants in Belgium, Thailand, and Shanghai and thus completed our switch to helium for inspection gas at worldwide production bases.
Inspecting for Refrigerant Leaks in the Air Conditioner Manufacturing Process
Daikin Industries carries out three inspections for refrigerant leaks during the residential air conditioner production process. This gives customers highly reliable products and prevents refrigerant emissions due to product defects.
1. Air-tightness and pressure resistance inspection
Before we insert refrigerant, we pump air at an extremely high pressure of 4.2 MPa to check for leaks at the welded sections, pipes, and other parts refrigerant passes through.
2. Gas leak inspection
After ensuring there are no leaks, refrigerant is sealed inside and a refrigerant detector is used to inspect all brazed parts.
3. Pre-delivery inspection
When the product is completed and packed, a refrigerant detector is once again used to ensure no refrigerant has leaked.
Daikin Europe N.V. installed 1,932 solar panels
Daikin Industries (Thailand) Ltd. installed LEDs for outside lighting
Daikin manufacturing bases in Belgium, the Netherlands, Italy, and France purchase green energy
In fiscal 2011, Daikin carried out a number of measures in response to energy shortages in Japan in the summer. These included shifting more work to night-time, running cogeneration systems at full capacity, reducing peak electricity by using in-house power generation equipment, and having all employees do every little thing possible in their daily work to save electricity.
At the Sakai Plant, we installed solar panels in two locations, and we installed LEDs and other energy-efficient lighting.
Overseas as well, we installed solar panels and energy-efficient lighting wherever possible. At Daikin Europe N.V., 1,932 solar panels were installed and will generate an estimated 400,000 kWh a year. Daikin Industries (Thailand) Ltd. installed LED lighting in product and parts warehouses and for outside lighting. These will contribute to reducing total CO2 emissions by approximately 90 tons-CO2.
As a result of these efforts, fiscal 2011 energy-induced CO2 was up by just 2% over fiscal 2010 to 590,000 tons-CO2, despite a production volume increase of 8%.
Total CO2 Emissions, CO2 Emissions per Sales
CO2 emissions per sales
The amount of CO2 emitted by net sales. The lower this figure, the less CO2 a company emits per unit of production and thus the more efficiently that company can make products.
Daikin employees do every little thing possible in their daily work to contribute to energy-efficient operation. For example, they turn off unnecessary lights and shut down computers when they are away from their desks.
In fiscal 2011, we responded to calls to save energy by making use of wasted energy; for example, we used wind power driven by factory exhaust air and hydropower driven by the flow of water at wastewater processing plants, and we made small solar power generators where possible.
Daikin Industries set a goal of decreasing CO2 emissions (per sales) from transportation by 2% in fiscal 2011 compared to fiscal 2010 by switching from trucks to trains and ferries. As well, we increased the use of direct shipping from overseas production sites to Japan to ensure the shortest possible transportation route.
As a result of these efforts, the modal shift rate (percentage change in means of transport) was up 2 points to 30%, and CO2 emissions (per sales) during transport were down 2.5% over fiscal 2010, exceeding our 2% target. For fiscal 2012, our aim is to increase modal shift and direct shipping to achieve a 4% decrease in CO2 emissions over fiscal 2010.
CO2 Emissions per Sales from Transportation (air-conditioning)
Reducing Other Environmental Impact during Transportation
In November 2010, Daikin Industries and five Daikin air conditioning products were certified for the Eco-Rail Mark from the Ministry of Land, Infrastructure, Transport and Tourism. This is the first time an air conditioning product has been certified for this system, which certifies products that travel solely on land or, if not, at least 500 kilometers on land and 30 percent or more of the goods are carried on railways.
Daikin will continue shifting more products to railway shipping.
Green Heart Office promotion poster
The Daikin Group has been certifying environmentally conscious plants under its in-house Green Heart Factories initiative since fiscal 2005. As of the end of fiscal 2011, five bases had been certified as Green Heart Factories by scoring at least 85 points out of 100 on five criteria, and three bases had been certified as Super Green Heart Factories by scoring at least 95 points.
In fiscal 2011, Daikin began the "Green Heart Office" initiative to improve environmental consciousness at non-production bases. Activities began with a contest that invited employees to design a poster to promote and raise awareness of Green Heart Offices. The winning poster has been put up in Daikin offices.
Certificate of NABERS certification
In fiscal 2011, the McQuay International parts warehouse in Dayton, Ohio earned Energy Star certification for meeting strict criteria including comfort and energy performance.
In addition, Daikin Australia's head office building was one of just a handful to receive a rating of 5.5 stars in NABERS (National Australian Built Environment Rating System) ratings.
At the awards ceremony
In December 2010, the Daikin-McQuay Applied Development Center in Minnesota earned LEED® Gold certification from the U.S. Green Building Council for its energy efficiency and green design.
The facility was highly rated for a green design that includes major facilities equipped with an inverter air conditioning system, test equipment using heat recovery technology, and energy-efficient lighting. More than 90% of the center's energy is used for development testing (cooling and heating water, etc.), and 75% of this energy is recovered and reused to make the facility energy efficient.
Daikin Europe N.V. is participating in an energy-reduction project being carried out by the government of Flanders, Belgium. Between 2009 and 2013, based on an in-house energy-reduction plan, the company is striving to reduce its energy use through measures including converting equipment to inverters and recovering heat from test equipment.
Daikin Thailand, a major plant in Southeast Asia, uses renewable energy, such as hydropower that utilizes the in-house cooling water, and wind and solar power.
In fiscal 2011, the company generated 4,500 kW from hydropower and 4,248 kW from wind power to run lighting inside and outside the factory.
Wind power built by employees
Hydropower utilizing cooling water from the plant