We would like to express our deepest sympathy to all those who are suffering from the earthquake occurred on March 11, 2011 and pray for the swift recovery of the disaster area.
The following information is from the printed version of the CSR Report (Japanese version), published July 20, 2011.
Establishment of Task Force
The day after the Great East Japan Earthquake, the Daikin Group set up the Emergency Response Headquarters headed by the Noriyuki Inoue, Chairman and CEO. The Emergency Response Headquarters strove to confirm the whereabouts of employees and their families, and employees of partner companies and suppliers, and provide them with assistance.
No persons in the Daikin Group were hurt in the disaster. Although the Kashima Plant (Kamisu City, Ibaraki Prefecture) suffered some equipment damage, production started up as of April 1. The Yuki Plant of Nippon Muki Co, Ltd. (Yuki City, Ibaraki Prefecture) experienced a temporary power outage and had to stop operations, but was able to resume on March 25.
State of Supply Chain, Effect on Business
Due to the earthquake, there was a shortage of parts and in April we had to temporarily stop taking orders from customers. To minimize the effect on business activities, we made maintenance of the supply chain our top priority and conducted efforts including helping suppliers in their recovery, searching for substitute parts and developing new ones in-house, ensuring sufficient inventory, and diversifying our means of procurement. As of July 2011, full recovery was in sight.
We will strengthen emergency response abilities to prepare ourselves for future emergencies and ensure stable procurement by maintaining multiple suppliers and allocating production as we work to quickly build up a procurement network both in Japan and overseas.
Improved Business Continuity Plans and Safety Measures
The recent earthquake gave us a chance to revamp our disaster measures. We are boosting our company-wide safety measures by reviewing the earthquake resistance of company buildings, ensuring security for chemical plants, and making sure that all systems are safe.
We are also creating a business continuity plan (BCP) that will prevent damage to manufacturing facilities and strengthen the supply chain.
Using what we learned from the recent earthquake, we are improving our system for determining the whereabouts of employees and their families, and putting satellite phones in our major business sites as part of an emergency communication network. We are also revising our crisis management in areas such as ensuring we have sufficient stockpiles to use as aid in case of emergency.
For Customers Using Our Products
The Daikin website has advice on how our residential, commercial, and industrial users can safely use their products. Information includes what to do during a power outage and when comes power back on, and what to do with air conditioning equipment when taking refuge indoors due to the accident at Tokyo Electric Power Company's Fukushima Daiichi Nuclear Power Plant.
We sent about 100 service engineers to the Sendai Service Station. The engineers conducted free-of-charge primary inspections of air conditioners in the stricken area, and Daikin paid for half of the necessary repair costs for products. We also conducted free-of-charge primary inspections of oil hydraulic equipment.
Response to Energy Problems Triggered by the Earthquake
The energy supply shortage resulting from the earthquake has prompted all of Japanese society to look at its energy consumption: and not just how it can cut back on the amount of electricity used, but also how it can cut peak energy use during the daytime when energy demand is at its highest. This goes for the rest of the world as well. Daikin has an important role to play in this respect as a manufacturer of air conditioners, products that consume a large percentage of the electricity society uses.
The Daikin Group has worked to meet this year's need to save energy by proposing ways to cut air conditioner energy use and contribute to the reduction of peak energy use. In the medium-term, we will develop and release products that help the world reduce the amount of energy use. In the long-term, we will contribute to realization of energy management that incorporates demand efficiency of entire towns, and effective use of renewable energy.
Support for Recovery of Disaster-Stricken Areas
To aid and support disaster victims, on March 16, five days after the earthquake, we decided to donate a total of 300 million yen (100 million yen in monetary donations and relief supplies: 600 commercial air purifiers, and 500 far infrared heaters).
Future recovery support efforts by Daikin will include helping companies affected get back on track and rebuilding infrastructure such as hospitals and schools.
Meeting the Increasing Need for Energy Savings
With an electricity shortage expected during the summer in Japan, the government urged companies and households to cut energy use by 15% across the board. This would require energy savings for air conditioners, which use a significant portion of the power consumed by households and companies.
The Daikin Group works to offer energy-saving solutions for commercial air conditioners and provide households with information on how to save energy at home.
Ways to Save Energy with Commercial Air Conditioners
As a short-term measure, Daikin is suggesting ways that corporate customers can save energy without having to upgrade or buy new air conditioners. (For details, see Power-Saving Control Center Commercial Air Conditioner.)
Our medium-term efforts will include releasing air conditioners that incorporate energy-saving features and that offer total energy-saving solutions.
Examples of How to Save Energy
| Energy-Saving Tuning System |
The remote energy-saving control system allows energy efficiency with minimal manpower through monitoring of the local weather conditions (based on data from the Japan Meteorological Agency) and analysis of the installation and operational status of air conditioners. |
Maximum 20% energy savings |
| VRV Energy-Saving Tuning |
Our VRV Energy-Saving Tuning service helps customers who have purchased Daikin building air conditioners we have been selling since before 2006 save energy. |
Maximum 20% energy savings |
| Ene-cut |
Sprinkling water on the air conditioner outdoor unit stabilizes operation and makes cooling more efficient. |
Maximum 12% energy savings |
| Demand Control |
By setting an operation time period for each air conditioner, electricity usage is controlled on each unit. The remote controller is used to easily set each unit to operate on demand. |
Maximum 30% energy savings |
Ways to Save Electricity at Home
In April 2011, Daikin conducted a survey of 600 men and women across Japan asking if they were conscious of saving energy in the summer of 2011. The response was 'yes' for 99% of respondents in the Tohoku and Kanto areas and at least 90% in the rest of the country.
In response to a survey question asking what appliance could significantly save energy, 'air conditioner' received the most responses (90%). However, many of these people also said they were trying to save energy without knowing exactly how to do so.
Daikin therefore decided to conduct experiments in how to save energy and the results were place on the website.
How to Save Energy at Home and Results of Energy-Saving Experiments
| How to save energy |
Before energy saving |
After energy saving |
Effect |
| Increase air conditioner temperature by 2°C*1. |
0.84 kWh
(when operated for 6 hours) |
0.65 kWh
(when operated for 6 hours) |
22.6% energy savings |
Block direct sunlight with an outdoor awning. Clean the filter.
Place the outdoor unit in a breezy location*2. |
1.120 kWh
(when operated for 6 hours) |
0.876 kWh
(when operated for 6 hours) |
21.8% energy savings |
*1 Date of experiment: May 24; temperature difference between inside and outside: 4°C/2°C
Assumption: Outdoor temperature of 30°C; set temperature of 26°C/28°C
Actual: Outdoor temperature of 22°C; set temperature of 18°C/20°C
*2 Date of experiment: May 20; temperature difference between inside and outside: 7°C
Assumption: Outdoor temperature of 35°C; set temperature of 28°C
Actual: Outdoor temperature of 25°C; set temperature of 18°C
Establishment of Task Force
