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CSR Management

Key Themes of CSR and Management Strategy

Daikin has reflected the changes in external environment and the key themes of CSR identified by the CSR Committee with an eye toward 2030 in the key strategy themes of the Fusion 25 Strategic Management Plan (materiality of management) ending in 2025.

Understanding Stakeholder Concerns and Impacts

One important judgment criterion in analyzing materiality is stakeholder concerns and impacts. To fully understand this, Daikin follows international frameworks toward solving society's challenges (global risks), and it takes into account stakeholder assessments of Daikin and the wishes and opinions that stakeholders have expressed in dialogue with Daikin.

Society's challenges
(Global risks)
  • Extreme weather events and temperatures
  • Natural disasters
  • Failures of climate change mitigation and adaptation
  • Loss of biodiversity
  • Pandemics
  • Natural resource crises
Note:
World Economic Forum Global Risks Perception Survey 2020
International frameworks
  • Sustainable Development Goals (SDGs)
  • Paris Agreement to the UN Framework Convention on Climate Change
  • Kigali Amendment* to the Montreal Protocol
  • UN Global Compact (UNGC)
*
International agreement to phase down the global warming impact (CO2 equivalent) of HFCs.
Assessments of Daikin, stakeholder dialogue

ESG assessment Dialogue with stakeholders

  • Briefings for shareholders and investors
  • Air Conditioner Forums
  • Dialogue with international organizations, NPOs, NGOs, etc.

Important Elements Affecting Daikin
  • Worldwide electricity demand for space cooling will triple by 2050
  • Acceleration in the decarbonization movement
  • Growing physical risks such as extreme weather events and risk of resource depletion
  • Growing need for safe and reliable air environments

Assessing the Impact of Our Business on Society throughout the Entire Value Chain

  • Environmental
  • Social
  • Governance

Procurement

Impacts of our business and expectations of Daikin

Throughout our worldwide supply chain:

  • Respond to various procurement risks involving quality control, labor practices, and environmental protection

Efforts of significant materiality

  • Response to climate change
  • Supply chain management
  • Respect for human rights

Development, Design

Impacts of our business and expectations of Daikin

At our R&D bases around the world:

  • Engage in R&D that strikes a balance between growing air conditioning demand and decarbonization of society
  • Contribute to solutions to social issues such as water shortages, air pollution, and infectious diseases

Efforts of significant materiality

  • Response to climate change
  • Prevent air and water pollution
  • Provide safe and reliable air environments
  • Increase the valued-added nature of air
  • Create innovation through co-creation

Manufacturing

Impacts of our business and expectations of Daikin

At our production bases around the world:

  • Increase production efficiency while increasing manufacturing quality
  • Mitigate environmental impacts, such as reduce energy and resource usage or prevent pollution

Efforts of significant materiality

  • Response to climate change
  • Prevent air and water pollution
  • Provide safe and reliable air environments
  • Increase the valued-added nature of air
  • Create innovation through co-creation

Sales, Transportation, Installation

Impacts of our business and expectations of Daikin

At our distributors around the world:

  • Market products with a lower environmental impact
  • Provide training on installation and maintenance techniques

Efforts of significant materiality

  • Response to climate change
  • Quality and customer satisfaction
  • Anti-corruption

Usage

Impacts of our business and expectations of Daikin

At our customers around the world:

  • Reduce CO2 emissions from electricity consumption
  • Prevent heatstroke and increase productivity with air conditioning
  • Provide a safe and reliable air environment using ventilation, air purification, and filtration

Efforts of significant materiality

  • Response to climate change
  • Prevent air and water pollution
  • Quality and customer satisfaction
  • Information security

After-Sales Service, Recovery, Recycling

Impacts of our business and expectations of Daikin

At maintenance providers around the world:

  • Provide high quality after-sales services
  • Recycle air conditioners
  • Establish a circular ecosystem of refrigerants through recovery and reclamation

Efforts of significant materiality

  • Response to climate change
  • Response to resource recycling
  • Quality and customer satisfaction

Business Activity Foundation

Impacts of our business and expectations of Daikin

For sustainable growth:

  • Develop human resources to lead our business activities
  • Promote compliance
  • Strengthen governance and risk management

Efforts of significant materiality

  • Human resource development
  • Corporate governance
  • Risk management
  • Respect for human rights

Relationship with Society

Impacts of our business and expectations of Daikin

For growing together with society:

  • Collaborate with various stakeholders, including governments, international organizations, industry and academia, NPOs and NGOs, experts, and local communities

Efforts of significant materiality

  • Response to climate change
  • Create innovation through co-creation
  • Stakeholder engagement
  • Communities

Identifying Key Themes of CSR for Daikin and Society

Prior to formulating the Fusion 25 Strategic Management Plan, we reviewed our key themes of CSR.
We incorporated highly important initiatives for evaluating the impacts our business has on society across the entire value chain. On top of this, we evaluated the materiality for Daikin in terms of stakeholder's concerns and impacts by soliciting the views of investors, experts, and external directors and then conducting interviews with employees and senior management. This culminated in the CSR Committee finalizing the key themes of CSR.

Materiality Analysis

Materiality Analysis

Reflection in Fusion 25 Strategic Management Plan

Under the Fusion 25 Strategic Management Plan, Daikin established nine key strategy themes including "Challenge to achieve carbon neutrality" based on the key themes of CSR, our strengths, and changes in the external environment around Daikin. By implementing this plan, we will aim to contribute to society and grow the Group.

Fusion 25 Strategic Management Plan
Sustainability

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