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Environment

Basic Environmental Policy and
Environmental Action Plan

Basic Environmental Policy of the Daikin Group

Environmental Philosophy

Be a Company that Leads in Applying Environmentally Friendly Practices

As we continue developing our business operations in various fields, it is our mission to proactively develop initiatives to respond to environmental issues. Incorporating environmental initiatives throughout our management must be a priority for us.

In all aspects of our business operations, including product development, manufacturing and sales, we need to formulate initiatives that sustain and improve the environment. Meanwhile, we need to promote the development of new products and the innovation of technologies that will lead to a more environmentally healthy world.

Under the precept "environmental response is an important management resource," we must integrate environmental initiatives into our corporate management since they can lead to business expansion, improved business performance, and further enhancement of our credibility with outside parties. We intend to continue being a leading company in the practice of "environmental management," thus contributing to a healthier global environment as a good citizen of the earth.

Action Guidelines

  1. Ensure that all members of the Group deepen our understanding of environmental issues and take responsibility for the impact our actions have on society in general.
  2. Establish, promote, and continuously improve an Environmental Management System to actively and effectively implement Environmental Management as a Group.
  3. Develop and implement environmental initiatives in all aspects of our business operations, including product development, production, sales, distribution, services, and recycling.
    In particular, be a leader in society by developing products, technologies, and business opportunities that contribute to sustaining and improving our environment.
  4. Implement environmental initiatives that are globally consistent as well as promote initiatives that respond to the particular circumstances of each country and region.
    Furthermore, actively promote cooperation and alliances with related companies, external organizations, and institutions.
  5. Disclose environmentally related information in a truthful and fair manner. Listen to the views of people both inside and outside the company to continuously improve our environmental preservation efforts.

The Daikin Environment Symbol

In all of us, a green heart

In February 2002, we created an environmental symbol for the Daikin Group. In environmental protection activities, the little efforts that individuals make add up to big things. The symbol, the Earth in the shape of a green heart, represents a determination on the part of each and every employee of Daikin to think green (think of the Earth and take care of the environment).

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Environmental Action Plan 2020

The Daikin Group positions environmental protection as one of its most important management tasks. Based on our Fusion 20 strategic management plan, we formulated Environmental Action Plan 2020, under which we aim to decrease environmental impact throughout the value chain so that we can achieve sustainable business growth and protect the environment.

Under our Environmental Action Plan 2020, which targets fiscal 2020, we are taking actions based on three pillars: 1 provide environmentally conscious products and services, 2 minimize environmental impact through manufacturing and other activities, and 3 expand the Green Heart circle worldwide.

Because air conditioners, our flagship product category, emit a particularly large amount of CO2 during their lifecycle, we are focusing on disseminating worldwide the use of energy-efficient air conditioners and air conditioners that use low-global-warming-potential refrigerants. We set a target of reducing worldwide greenhouse gas emissions in fiscal 2020 by 60 million tons-CO2. Calculations show that in fiscal 2016 we achieved the reductions of 45 million tons-CO2.

In efforts to reduce environmental impact during the production stage, we set a target of reducing total Group greenhouse gas emissions in fiscal 2020 to 1.58 million tons-CO2 (70% reduction over fiscal 2005). In fiscal 2016, we succeeded in lowering these emissions to 1.57 million tons-CO2 .

In fiscal 2016, we strove to connect with stakeholders and protect the environment through our overall business activities. We were able to expand the Green Heart circle through, for example, achieving Green Heart Factory certification for 41 production bases.

Environmental Action Plan 2020

Action targets Fiscal 2020
target values
Fiscal 2016
target values
Fiscal 2016
results
Self-
assessment
1 Provide Environmentally Conscious Products and Services Worldwide

Contribute to reducing greenhouse gas emissions by spreading the use of following products

  • Energy-efficient air conditioners and services including inverter products
  • Air conditioners using refrigerants with low global warming potential
  • Heat-pump-type heating systems and hot water heaters
  • Energy-efficient solutions business
Contribution to Greenhouse Gas Emission Reductions*1 60-million tons-CO2 Contribution to Emission Reductions 39 million tons-CO2 Contribution to Emission Reductions 45 million tons-CO2 ★★★
Increase in Ratio of Environmentally Conscious Products*2 Sales of Environmentally Conscious Products as Percentage of Residential Air Conditioners 74% ★★★
2 Minimize Environmental Impact in Production Activities
Greenhouse Gas Emission Reductions 70% reduction over fiscal 2005 (reduction to 1.58 million tons-CO2) 67% reduction 70% reduction (reduction to 1.57 million tons-CO2) ★★★
Reduction of Energy-Induced CO2 Emissions Unit reduction in energy-induced CO2 emissions of 5% against Standard value*3 Japan 1% reduction 3% reduction ★★★
Overseas 1% reduction 8% reduction ★★★
Emissions Unit Reduction in Emissions of 5% against Standard value*3 Japan 1% reduction 4% reduction ★★★
Overseas 1% reduction 6% reduction ★★★
Water Unit Reduction in Water Intake of 5% against Standard value*3 Japan 1% reduction 6% reduction ★★★
Overseas 1% reduction 3% reduction ★★★
Chemicals Unit Reduction in Chemical Emissions of 5% against Standard value*3 Japan 1% reduction 9% reduction ★★★
Overseas 1% reduction 1% increase
Green procurement Increase in Green Procurement Rate 74% ★★★
3 Expand the Green Heart Circle of Love for the Earth
Carry out and expand environmental activities in collaboration with stakeholders Encourage employees to take part in environmental activities inside and outside work Make all production bases Green Heart Factories*4 41 bases certified (8 in Japan, 33 overseas) ★★★
Promote environmental and social contribution activities

Carry out forest protection activities with NGOs

Educate the younger generation about the environment

Protect 11 million hectares of forest Provide free learning materials to 2,000 students ★★★

*1 Difference between emissions from all Daikin environmentally conscious products sold and emissions from non-inverter products, air conditioners using conventional refrigerants, and gas-combustion space heaters and hot water heaters.

*2 Products that satisfy either or both of the following conditions: consume at least 30% less electricity than conventional products, or use refrigerants with at least two-thirds less global warming potential than conventional refrigerants.

*3 Average for fiscal 2013-2015.

*4 A Daikin standard for assessing and certifying how well each production base is doing in achieving environmental criteria related to energy efficiency, waste reduction, and biodiversity protection.

Self assessment: Shows level of achievement of targets in three designations:

★★★ : Succeeded   ★★ : Will soon succeed   ★ : Doing all we can

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