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"Sustainability Report 2016" for the Daikin Group

Reporting the Commitment and Activities for Contribution to a Sustainable Society

20 July 2016

"Sustainability Report 2016"

Daikin Industries, Ltd., has issued its Japanese edition of "Sustainability Report 2016," a summary of the commitment and activities of the Daikin Group for contribution to a sustainable society.
In recent years, awareness has greatly increased in corporate social responsibility (CSR) for the role companies play in the development of a sustainable society through business that fully considers the environment and needs of society. With its strategic management plan Fusion 20 announced in June 2016, the Daikin Group has set forth its commitment to resolving, through its business activities, the issues affecting customers and society as it aims for further growth while actively contributing to society.
Having revamped the CSR Report of the past in favor of this year's Sustainability Report, we hope to readily convey to stakeholders the commitment and activities unique to Daikin that contribute to a sustainable society. At the same time, we also present the results of the Environmental Action Plan 2015 spanning five years until 2015 and the targeted amounts for reduction of greenhouse gas emissions for year 2020.
In September, we plan to publish more detailed information of this report on the Daikin Industries company website (http://www.daikin.co.jp/csr). A printed edition in English is planned for publication during the same period.

Overview of "Sustainability Report 2016"

1.Feature on Efforts to Offer Value to Society through Business

Environment: "Creating a New Market Environment to Mitigate Global Warming"

As the only manufacturer that develops both air conditioners and refrigerants, Daikin promotes the use of low GWP refrigerants and energy-saving technology as part of its contribution to the mitigation of climate change. After comprehensively evaluating refrigerants, not only from the aspect of the environment but also from the aspect of safety and economic feasibility, Daikin incorporated the results of investigations debated in international forums, determined HFC-32 to currently be the optimal refrigerant for residential- and commercial-use air conditioners, and is globally promoting its widespread use. In collaboration with the Japanese government and international organizations, the company is continuing to make steady efforts that include expansion of technical assistance in Thailand and Malaysia for conversion to HFC-32. As of the end of fiscal year 2015, 6.5 million air conditioners using HFC-32 have been sold in 48 countries.

New Value Creation: "Promoting Collaborative Innovation with Outside Organizations to Create New Value for Society"

In November 2015, Daikin established its "Technology and Innovation Center (TIC)," a technology development base. In addition to its own core technologies in the fields of air conditioning and chemicals, Daikin is promoting "collaborative innovation" with companies, universities, and research organizations of different industries and fields. The aim is to create value for new lifestyles by broadening the target of research themes from residential spaces to communities, cities, and large infrastructures and moving forward with research based on the relationship of air environments and the human body in physiology and psychology. For example, we are working to realize "IAQ/Air Environment Engineering" and link it to the resolution of various social issues such as the aging of society, an increasingly serious issue.

2. Report on the Results of "Environmental Action Plan 2015" Concluding at End of Fiscal Year 2015

We made a significant contribution to the reduction of CO2 emissions in our five-year environmental action plan spanning years from 2011 to 2015.

Main action item targets and results

  • 1) [Target] Reduction of CO2 emissions in emerging countries by 30 million tons by widespread use of inverter-type air conditioners and other measures
    [Result] Reduction by 34.8 million tons by widespread use of air conditioners using HFC-32, low GWP refrigerant, in addition to inverter air conditioners
  • 2) [Target] Reduction of greenhouse gas emissions during production to one-third in comparison with emissions for FY2005 (67% reduction)
    [Result] 70% reduction

In 2020, Daikin will strive for even higher results by aiming for the reduction by 60 million tons of greenhouse gases worldwide.

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