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Sustainability > Environment > Response to Climate Change > Reducing Greenhouse Gases during Production and Transportation

Response to Climate Change

Reducing Greenhouse Gases during
Production and Transportation

Reducing Overall Group Greenhouse Gas Emissions

Target Reached: 70% Reduction Compared to Fiscal 2005

The Daikin Group emits two kinds of greenhouse gases during production processes: CO2 from energy use, and fluorocarbons. 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

The Daikin Group set a target of a 67% reduction in greenhouse gases by fiscal 2015.

Daikin America, Inc. reached this target by striving to recover fluorocarbons and replace them with substitutes, resulting in fiscal 2015 greenhouse gas emissions of 1.26 million tons-CO2, a reduction of 70% over fiscal 2005.

We are currently working toward a target of reducing fiscal 2020 emissions by 75% over fiscal 2005.

Groupwide Greenhouse Gas Emissions (during production)

Groupwide Greenhouse Gas Emissions (during production)

Note: BAU (Business as usual). Estimated value in the case measures are not taken.

Terminology

Greenhouse Gases

A major cause of global warming, greenhouse gases designated at the 1997 3rd Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change in Kyoto are CO2, methane, N2O, and three fluorocarbon alternatives (HFC, PFC, and SF-6).

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Reducing Energy-Induced CO2

CO2 Emissions per Production Unit Dropped by 15% Against Fiscal 2005

Fiscal 2015 energy-induced CO2 was 710,000 tons-CO2, and CO2 emissions per production output were down 15% over fiscal 2005. Main efforts in fiscal 2015 included the introduction at the Air Conditioning Manufacturing Division of the Sakai Plant of a mobile app for viewing energy usage in the factory. An environmental practice hall was also set up to help raise employee’s awareness. Another major event on the theme of energy efficiency was the 2nd Global Environmental Meeting, which was held in Thailand.

We received certification for the ISO 50001 international standard for energy management at Daikin Europe N.V. and Daikin Industries Czech Republic s.r.o. in January 2015, and at the Sakai Plant in March 2015.

As a new target for reducing CO2 emissions, we are working toward decreasing emissions per production output in fiscal 2020 by 5% against fiscal 2015 (average value from 2013 to 2015) and to this end we are seeking further energy efficiency.

Total CO2 Emissions, CO2 Emissions per Unit of Production Output

Total CO2 Emissions, CO2 Emissions per Unit of Production Output

Terminology

CO2 emissions per production output

The amount of CO2 emitted by the amount of production. The lower this figure, the less CO2 a company emits per unit of production and thus the more efficiently that company can make products.

TOPICS

40% Reduction in Energy Usage of Shiga Plant Drying Furnace

At the Shiga Production Division, rather than seeking improvements in individual workplaces, based on visual data obtained from surveys, we have identified the most important ways to achieve energy efficiency. As a result, it was determined that there was poor thermal efficiency in the drying furnace, a facility that uses significant amounts of energy, and that there was room for improvement of this furnace. We therefore removed one of the two air heaters and changed the position of the one remaining air heater. By circulating the hot air with a blower and switching to a method that makes the best use of the wind volume, we successfully shortened the drying time. We also put dividers to narrow the space inside the furnace and thus reduce the heat loss and improve the thermal efficiency.

Thanks to these improvements, the drying furnace used 69.143 kWh of electricity and achieved electricity cost reductions of 968,000 yen, a significant improvement in efficiency.

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Reducing CO2 Emissions during Transportation

CO2 Emissions Reduced by 10.7% Over Fiscal 2010

Daikin Industries, Ltd. set a goal of decreasing CO2 emissions (per sales) from transportation by 10% in fiscal 2015 compared to fiscal 2010 by switching from trucks to trains and ferries. We also increased the use of direct shipping from overseas production sites to Japan to ensure the shortest possible transportation route.

In fiscal 2015, we improved the efficiency of transportation of concurrent production items at overseas plants and the Shiga Plant. For example, we decided to locate products made at the Shiga Plant in the Kansai region, and locate items manufactured at overseas plants in other regions in Japan. As a result, we reduced the amount transported between Shiga and Tokyo by the equivalent of the volume carried by 200 ten-ton trucks. Along with other facilities, we reduced emissions by 315 tons-CO2. This represents a per-unit reduction of 10.7% over fiscal 2010, which achieved our target of a 10% reduction. Our modal shift ratio in fiscal 2015 was 27%, the same as in fiscal 2014.

Our target for fiscal 2020 is a 5% decrease (per sales) over fiscal 2015.

CO2 Emissions per Sales from Transportation (Japan)

CO2 Emissions per Sales from Transportation (Japan)

Reducing Other Environmental Impact during Transportation

  • At manufacturing bases in Japan, we have replaced gasoline-powered forklifts for logistics with electric models.
  • We are changing the layout of warehouses so that forklifts will drive shorter distances; changing the workplace layout has improved efficiency and contributed to a two-hour decrease in work time.
  • All vehicles driving at manufacturing bases turn off their engines when not moving to reduce exhaust fumes. We are also having our transport partners turn off their engines.
  • We are reducing CO2 emissions through improved transportation efficiency and decreased packaging volume, and reducing electricity consumption through shorter working hours.
  • To improve work effectiveness both in Japan and overseas, we continuously revise the warehouse layout to boost work efficiency and thus shorten the time on each task.
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Using Renewable Energy

Using More Solar, Wind, and Hydro Power

Solar power generation system has panels that move to track the sun’s positionSolar power generation system has panels that move to track the sun’s position

The Daikin Group is working to expand the use of renewable energy such as solar, wind, and hydro power.

An example is in Europe, where governments using EU regulations on renewable energy like solar, wind, and hydro, are aiming to have renewable energy account for 20% of the energy mix by 2020. Daikin Europe N.V. has since fiscal 2007 been switching its factory and office power to hydro, and today 100% of the approximately 13 million kWh is covered by hydropower. This has eliminated the CO2 previously emitted from purchased electricity, and so the company has reduced the previous 5,000 tons-CO2 per year, or a total of approximately 1,660 tons-CO2.

In fiscal 2015, we used proprietary technology in installing a solar power generation system that uses tracking solar panels on the Technology and Innovation Center.

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Green Building Certification

Overseas Bases Certified for Energy-Efficient Buildings

CASBEE building assessment certification (for the Technology and Innovation Center of Daikin Industries, Ltd.) CASBEE building assessment certification (for the Technology and Innovation Center of Daikin Industries, Ltd.)

Certificate of NABERS certification (Daikin Australia Pty. Ltd.)Certificate of NABERS certification (Daikin Australia Pty. Ltd.)

Daikin Group companies around the world are working aggressively to achieve green building certification for having building that are designed, built, and operated with concern for the environment and the local community.

In December 2010, the Applied Development Center of Daikin Applied Americas Inc. in Minnesota earned LEED® Gold certification from the U.S. Green Building Council for its energy efficiency and green design.

In July 2016, the Technology and Innovation Center earned LEED® Platinum certification. It has also earned the highest certification (S class) in CASBEE (Comprehensive Assessment System for Built Environment Efficiency) a highly recognized system in Japan for the comprehensive assessment of the environmental performance of buildings, districts, and cities. CASBEE was created by the Institute for Building Environment and Energy Conservation (IBEC).

In fiscal 2011, the parts warehouse of Daikin Applied Americas Inc. in Dayton, Ohio earned Energy Star certification for meeting strict criteria including comfort and energy performance.

In addition, in fiscal 2013 Daikin Australia's head office building was again one of just a handful to receive a rating of 5.5 stars in NABERS (National Australian Built Environment Rating System) ratings.

The Applied Development Center of Daikin Applied Americas Inc. in Minnesota earned LEED® Gold certification The Applied Development Center of Daikin Applied Americas Inc.
in Minnesota earned LEED® Gold certification

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