Response to Climate Change
We have set a goal to reduce greenhouse gas emissions during the product development and production processes in fiscal 2020 by 70% compared to fiscal 2005, with the ultimate aim of reducing CO2 emissions in fiscal 2025 by 75% in comparison to fiscal 2005.
Daikin emits two kinds of greenhouse gases during development and production processes: CO2 from energy use, and fluorocarbons. In addition to CO2, we have established targets and worked to reduce emissions of fluorocarbons: HFCs and PFCs, which are regulated under the Kyoto Protocol. Starting in fiscal 2016, we revised the calculation method, which includes companies that joined the Daikin Group after 2010.
We have continued striving to control emissions in fiscal 2019. To control CO2 emissions, electricity used at Daikin Device Czech Republic s.r.o. has been completely switched over to green electricity, and a 1 MW scale solar power generating system has been newly added at Daikin Malaysia Sdn. Bhd. Moreover, while production volume in fiscal 2019 was almost flat compared to the previous year, energy-induced CO2 emissions was reduced by 1% compared to the year before. As a result of these efforts, greenhouse gas emissions in fiscal 2019 totaled 1.28 million tons-CO2 (down 76% over fiscal 2005), attaining the target level for the fiscal 2025 goal.
A major cause of global warming, greenhouse gases designated at the 1997 3rd Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change in Kyoto are CO2, methane, N2O, and three fluorocarbon alternatives (HFC, PFC, and SF-6).
The Daikin Group as a whole is taking a systematic approach to reduce energy-induced CO2 by improving energy efficiency during development and production processes.
In fiscal 2019, CO2 emissions per production unit dropped 16% against the standard value. In fiscal 2018, a system was introduced that will allow the entire Group to share emission improvement case studies at worldwide bases. Also, we have continued to visualize energy usage at each location, minimize use, and improve low pressured compressed air in fiscal 2019.
In addition, we also received certification for the ISO 50001 international standard for energy management at Daikin Europe N.V. and Daikin Industries Czech Republic s.r.o.
CO2 emissions per production output
The amount of CO2 emitted by the amount of production. The lower this figure, the less CO2 a company emits per unit of production and thus the more efficiently that company can make products.
Daikin Industries, Ltd. set a goal of decreasing CO2 emissions (per sales) from transportation by 5% by fiscal 2020 compared to fiscal 2015 by switching from trucks to trains and ferries. We also increased the use of direct shipping from overseas production sites to places of consumption in Japan to ensure the shortest possible transportation route.
In fiscal 2019, as the shortage of drivers became increasingly serious, we continued the effort from last year to reorganize the flow of distribution to make the most efficient use possible of transport vehicles. The delivery of widespread school air conditioners was streamlined by using larger transportation vehicles running on trunk lines by setting up distribution bases near places of consumption.
The modal shift conversion rate in fiscal 2019 was 19%.
Daikin is working to expand the use of renewable energy such as solar, wind, and hydro powers.
An example is in Europe, where governments using EU directives on renewable energy like solar, wind, and hydro powers, are aiming to have renewable energy account for 20% of the energy mix by 2020. Daikin Europe N.V. has since fiscal 2007 been using 100% hydro powered green electricity to power its factory and office. We have also purchased green energy at one base in the U.K. and one in the Czech Republic.
In fiscal 2015, we installed tracking solar panels at the Technology and Innovation Center (TIC), Daikin's R&D base, which helped the solar power system generate 330,000 kWh a year. This is equivalent to CO2 emission reductions of approximately 127 tons-CO2.
We are also moving forward with the installation of large-scale solar panels in Thailand and India to further promote the use of renewable energy. In fiscal 2019, a 0.9 MW solar power generating system was installed in Thailand, and a 1 MW unit was installed in Malaysia.
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