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Environmental Management

Environmental Accounting

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Environmental Accounting

FY2016 Environmental Accounting Figures

Total environmental protection costs in FY2016 were ¥24.1 billion (investment in equipment: ¥3.5 billion; expenses: ¥20.6 billion), 93% over the previous year.

For the air-conditioner business, we focused our R&D efforts on developing technologies for energy efficiency and refrigerants. Amidst the growing importance of preventing global warming, we proceeded with the development of products and technologies that reduce environmental impact. Examples are HFC-32, a refrigerant that reduces global warming impact to just one-third that of conventional refrigerants, heat pump-type heating systems, which result in CO2 emissions less than half of those from conventional combustion-type heating, and inverter technology, which offers both comfort and energy efficiency.

Accounting Method

The costs and effects of Daikin's environmental efforts were calculated based on the Environmental Accounting Guideline 2005 released by Japan's Ministry of the Environment.

Costs of Environmental Conservation

Expenses include labor costs but not depreciation expenses for investment in facilities. The expenses not full allocated to environmental protection were proportionally divided and totaled according to a relevant Daikin standard.

Effects of Environmental Conservation

Please see the relevant page for details of each item.

Economic Benefits of Environmental Conservation Efforts

The environmental conservation effects and economic benefits were calculated by comparing the adjusted output to the previous fiscal year.

Breakdown of Environmental Conservation Costs (% of total)

Breakdown of Environmental Conservation Costs (% of total)

FY2016 Environmental Costs

(¥ million)

Cost of environmental conservation
Category Major activities FY2015 FY2016
Amount of equipment invested Expenses Amount of equipment invested Expenses
Cost in business area   1,590 5,695 1,682 5,816
1. Pollution prevention Introduction, maintenance, and management of pollution prevention facilities/equipment, expenses for measurement/analysis of air pollution control, water pollution control, vibration, and noise. 665 1,818 857 1,765
2. Global environmental conservation Introduction of energy efficient facilities/equipment, reduction of fluorocarbon emissions in the production process, and recovery of fluorocarbons. 850 772 760 756
3. Resource circulation Reduction or recycling of waste, subcontracting of waste disposal, and resource conservation activities. 75 3,105 66 3,255
Upstream/downstream Recycling of used products, and recovery, recycling, and destruction of fluorocarbons in used products or products still in service. 8 234 9 231
Management activities Running of company organization for environmental matters, environmental education, environmental information disclosure, and establishment/maintenance of environmental management systems. 19 1,159 21 1,080
Research and development Work on three major tasks for air conditioners, and development of fluorochemical products with minimized environmental impact. 1,580 11,930 1,747 12,591
Social activities Provision of personnel and monetary aid to environment-related organizations, and environmental protection activities in local communities. 3 188 2 256
Environmental damage Costs for purification of polluted groundwater and soil. 0 67 0 64
Total 3,200 19,272 3,461 20,613
Total of investment in facilities within the period 11,2700 90,300
Total of investment in R&D activities within the period 46,100 53,900
Effects of environmental conservation
Effects FY2015
Effects corresponding with costs within business area 1. Effects of the resources used for business activities Energy consumption 231 tons-CO2 53,489 tons-CO2
Reduction in water consumption 374,313 m3 -2,710,768 m3
2. Effects against environmental impacts and waste resulting from business activities Reduction in fluorocarbon emissions 40 tons -27 tons
Reduction in waste materials -2,960 tons -1,422 tons
Effects to upstream/
downstream costs
Effects associated with benefits and services that are calculated and based on business activities Number of residential air conditioners collected
Amount of fluorocarbons recovered
Amount of packaging material recycled
250,000 units
160 tons
132.6 tons
280,000 units
175 tons
133.0 tons

(¥ million)

Economic benefits of environmental conservation efforts (monetary benefits)
Effects FY2015 FY2016
Profit Profit from sale of recycled waste 2,118 2,105
Reduction in expenses Reduction in energy expenses resulting from energy conservation efforts 844 901
Reduction in waste disposal expenses resulting from resource conservation or recycling resources 1,174 971

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