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  5. Reducing Greenhouse Gases during Production and Transportation

Response to Climate Change

Reducing Greenhouse Gases during Production and Transportation

Response to Climate Change


Reducing Greenhouse Gas Emissions

Target Reached: 70% Reduction Compared to Fiscal 2005

The Daikin Group emits two kinds of greenhouse gases during production processes: CO2 from energy use, and fluorocarbons. Of these, there are four kinds of fluorocarbons released during Daikin's production processes: HFC and PFC, which are covered by the Kyoto Protocol, and CFC and HCFC, which are not. We have set reduction targets for each of these fluorocarbons. At Daikin America, Inc., to reduce PFC emissions, we are attempting to improve the accuracy of emissions measurements, find leaks and promote countermeasures.

Starting in fiscal 2016, we revised the calculation method, which includes companies that joined the Daikin Group after 2010. With an eye to reducing fiscal 2025 CO2 emissions by 75% against fiscal 2005, we have set a target of reducing fiscal 2020 CO2 emissions by 70% against fiscal 2005.

Daikin America Inc. is moving ahead with replacing and recovering fluorocarbons and in fiscal 2017 it had greenhouse gas emissions of 1.35 million t-CO2 (down 70% over fiscal 2005).

Greenhouse Gas Emissions (during production)

Greenhouse Gas Emissions (during production)
Note:
The scope of calculations and the calculation method were revised in formulating the Environmental Action Plan 2020.

The results for the past five years of the old scope of calculations and the calculation method are here.

Terminology

Greenhouse Gases

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).

Reducing Energy-Induced CO2

CO2 Emissions per Production Unit Dropped by 8% Against Fiscal 2005

Since fiscal 2016, we have been stepping up energy-efficiency efforts with the target of achieving a fiscal 2020 reduction in CO2 emissions per production unit of 5% against the standard value (average for fiscal 2013 to 2015).

In fiscal 2017, CO2 emissions per production unit dropped 8% against the standard value. In fiscal 2017, the Air Conditioning Manufacturing Division of the Sakai Plant continued the introduction of a mobile app for viewing energy usage in the factory. A Global Environmental Meeting was held at Daikin Industries Czech Republic s.r.o. and data measurement exercises were held to visualize energy usage in an attempt to increase employee's awareness at Daikin sites around the world.

We also received certification for the ISO 50001 international standard for energy management at our Shiga Plant in Japan, and at Daikin Europe N.V. and Daikin Industries Czech Republic s.r.o.

Total Energy-Induced CO2 Emissions, CO2 Emissions per Unit of Production

Total Energy-Induced CO2 Emissions, CO2 Emissions per Unit of Production
Note:
The scope of calculations and the calculation method were revised in formulating the Environmental Action Plan 2020.

The results for the past five years of the old scope of calculations and the calculation method are here.

Terminology

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.

Reducing CO2 Emissions during Transportation

CO2 Emissions Reduced by 2% Over Fiscal 2016

Daikin Industries, Ltd. set a goal of decreasing CO2 emissions (per sales) from transportation by 5% in fiscal 2020 compared to fiscal 2016 by switching from trucks to trains and ferries. We also increased the use of direct shipping from overseas production sites to Japan to ensure the shortest possible transportation route.

In fiscal 2017, amid an ongoing shortage of drivers, shipment volumes fluctuated dramatically making it difficult to secure vehicles leading to a revision in the flow of distribution to home electronics retailers. Advanced supplies to mass retailers based on production, sales and other inventory information enabled us to eliminate transportation and respond quickly to customer demands. During the peak shipping season, we supported batch shipments and substantially reduced burdens on drivers, enabling us to achieve fiscal 2017 targets three months ahead of schedule. Also, the modal shift conversion rate in fiscal 2017 was 26%, the same as in the previous year.

CO2 Emissions per Sales from Transportation (Japan)

CO2 Emissions per Sales from Transportation (Japan)

Reducing Other Environmental Impact during Transportation

  • In fiscal 2017 we resolved the problems of a shortage of drivers by reducing the truck waiting times and loading times and thus the amount of work hours.
  • At manufacturing bases in Japan, we have replaced gasoline-powered forklifts for logistics with electric models.
  • All vehicles driving at distribution bases turn off their engines when not moving to reduce exhaust fumes. We are also having our transport partners turn off their engines.
  • We are engaged in reducing CO2 emissions through improved transportation efficiency and decreased packaging volume, and reducing electricity consumption through shorter working hours.
  • To improve work effectiveness both in Japan and overseas, we continuously revise the warehouse layout to boost work efficiency and thus shorten the time on each task.

Using Renewable Energy

Using More Solar, Wind, and Hydro Power

The Daikin Group is working to expand the use of renewable energy such as solar, wind, and hydro power.

An example is in Europe, where governments using EU regulations on renewable energy like solar, wind, and hydro, are aiming to have renewable energy account for 20% of the energy mix by 2020. Daikin Europe N.V. has since fiscal 2007 been switching its factory and office power to hydro, and today 100% of the approximately 13 million kWh is covered by hydropower. This has eliminated the CO2 previously emitted from purchased electricity, and so the company has reduced the previous 5,000 tons-CO2 per year, or a total of approximately 1,660 tons-CO2.

In fiscal 2015, we installed tracking solar panels at the TIC, which helped the solar power system generate 330,000kwh a year, which translates to CO2 emission reductions of approximately 127 t-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.

Solar power generation system has panels that move to track the sun's position

Solar power generation system has panels that move to track the sun's position

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