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The Basic of Air Conditioners and the Environment

Environmental Impact of Refrigerants

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The Daikin Environment Symbol

Results for the Environmental Action Plan 2010

Under the five-year FUSION 10 strategic management plan, which targeted fiscal 2010, the Daikin Group strove to develop and promote the use of environmentally conscious products and services on a basic policy of actively contributing to solving global environmental problems and expanding our business. Our environmental measures were conducted under our Environmental Action Plan 2010.

1. Reducing Environmental Impact from Products

Five-Year Results

Promote and Expand the Use of Environmentally Conscious Products to Meet the Particular Needs of Each World Region

We have developed and provided air conditioner products and services that meet the environmental needs of each world region in terms of weather, culture, and economy.

Europe

Fifteen-Fold Increase in Heat-Pump*1 Hot Water and Space Heating

We have successfully promoted the use of the Daikin Altherma hot water and space heating system, in the process contributing to the reduction of 210,000 tons of CO2 emissions.

Proliferation Results

Units of Daikin Altherma sold in Europe

Heat-pump heaters as percentage of all heaters sold in Europe

*1 Heat pump: A method for performing space heating and water heating by extracting and transferring thermal energy stored in the air (or water).

China

Promoting the Use of Affordable Inverter*2 Products

The spread in use of inverter air conditioners reduced CO2 emissions by 650,000 tons when compared with the energy efficiency of non-inverter models prevalent in the volume zone market.

Proliferation Results

Units of Daikin residential air conditioners sold in China

Daikin inverter models as percentage of all air conditioners sold in China

*2 Inverter: Inverters are frequency conversion devices that enable the minute control of room temperature and thus reduce power consumption.

Japan

A New Approach to Energy Efficiency

Daikin has worked to raise the energy efficiency of equipment and spread the use of new energy-efficiency services.

Proliferation Results

Daikin residential air conditioners in use in Japan and their CO2 emissions

Development Results

No. of customers for energy-saving tuning

United States

Establishment of Applied Development Center Signals Start of Full-Scale Energy- Efficient Product Development

The Applied Development Center was established in fiscal 2009 to accelerate development of energy-efficient products.

Development Results

Energy efficiency of magnetic bearing centrifugal chillers (IPLV)

*3 IPLV: Integrated part load value. A measure of annual performance under conditions of actual use. The higher the value, the better the performance.

Future Targets

Promote the Use of Environmentally Conscious Products, Particularly in Rapidly Growing Developing Countries

Daikin will continue to provide air conditioning products and services that meet the environmental needs of each world region. Particularly in developing countries, which are growing fast but where increasing environmental impact is a problem, Daikin will provide products and technologies that contribute to economic progress yet still protect the environment.

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2. Reducing Environmental Impact during Production

(1) Management to Reduce Impact

Five-Year Results

Daikin Group's Global Integrated Management Moving Ahead

Daikin has been building and gradually implementing environmental management systems around the world. Currently 90% of all Daikin employees, including those in the OYL Group, which joined the Daikin Group in 2006, belong to facilities that have obtained ISO 14001 certification.

Ratio of Employees Belonging to Facilities That Obtained ISO 14001 Certification

Future Targets

Managing the Setting and Progress of Environmental Targets for the Entire Daikin Group Including OYL

We will implement environmental management systems based on ISO 14001 at all worldwide production sites. We will monitor Group-wide progress towards this target, sharing information worldwide and stepping up activities.

(2) Impact Reduction Results

Five-Year Results

73% Reduction Against Fiscal 2005, Exceeding Target

In the Chemicals Division, we have done everything possible to recover and destroy fluorocarbons. As a result, we exceeded our target by reducing CO2 emissions during production by 73% against fiscal 2005.

CO2 emissions during production

Breakdown of CO2 emissions during production

Future Targets

Reduce Emissions in Fiscal 2015 to One-Third of Fiscal 2005 Levels

Although Daikin business will expand in the coming five years, through energy efficiency measures and the recovery and destruction of fluorocarbons, we aim to reduce CO2 emissions in fiscal 2015 to just one-third of fiscal 2005 levels.

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3. Expansion of Green Heart Efforts

Five-Year Results

Dramatic Expansion of Environmental Protection Activities in Which Group Employees Can Participate

Photo

Future Targets

Conduct Environmental Activities Geared to Local Characteristics

Daikin will conduct activities geared to the characteristics and needs of worldwide bases and regions, in the process instilling people with a concern for nature that will carry on into future generations.

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