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Environmental Management

Environmental Accounting

Environmental Management

Environmental Accounting

FY2019 Environmental Accounting Figures

Total environmental protection costs in FY2019 were ¥29.4 billion (investment in equipment: ¥5.2 billion; expenses: ¥24.2 billion), 117% over the previous year.

For the air-conditioner business, we focused our R&D efforts on developing technologies for energy efficiency and refrigerants. Amidst the growing importance of preventing global warming, we proceeded with the development of products and technologies that reduce environmental impact. Examples are inverter technologies offering both comfort and energy efficiency, R-32 refrigerant, which reduces global warming impact to just one-third that of conventional refrigerants, and heat-pump heaters and hot water heaters and water heaters, which result in CO2 emissions less than half of those from conventional combustion-type heating.

Accounting Method

The costs and effects of Daikin's environmental efforts were calculated based on the Environmental Accounting Guideline 2005 released by Japan's Ministry of the Environment.

Costs of Environmental Conservation

Expenses include labor costs but not depreciation expenses for investment in facilities. The expenses not full allocated to environmental protection were proportionally divided and totaled according to a relevant Daikin standard.

Effects of Environmental Conservation

Please see the relevant page for details of each item.

Economic Benefits of Environmental Conservation Efforts

The environmental conservation effects and economic benefits were calculated by comparing the adjusted output to the previous fiscal year.

Breakdown of Environmental Conservation Costs (% of total)

Breakdown of Environmental Conservation Costs (% of total)

FY2018 and FY2019 Environmental Costs

(¥ million)

Cost of environmental conservation
Category Major activities FY2018 FY2019
Amount of equipment invested Expenses Amount of equipment invested Expenses
Cost in business area   2,366 6,673 2,995 7,024
1. Environmental
impact reduction
Introduction, maintenance, and management of pollution prevention facilities/equipment, expenses for measurement/analysis of air pollution control, water pollution control, vibration, and noise. 764 2,422 1,509 2,434
2. Global environmental conservation Introduction of energy efficient facilities/equipment, reduction of fluorocarbon emissions in the production process, and recovery of fluorocarbons. 1,492 748 1,300 1,051
3. Resource circulation Reduction or recycling of waste, subcontracting of waste disposal, and resource conservation activities. 109 3,504 186 3,539
Recycling of used products, and recovery, recycling, and destruction of fluorocarbons in used products or products still in service. 24 277 23 201
Management activities Running of company organization for environmental matters, environmental education, environmental information disclosure, and establishment/maintenance of environmental management systems. 81 1,179 35 964
Research and development Work on three major tasks for air conditioners, and development of fluorochemical products with minimized environmental impact. 1,991 12,265 2,127 15,883
Social activities Provision of personnel and monetary aid to environment-related organizations, and environmental protection activities in local communities. 2 193 1 120
Environmental damage Costs for purification of polluted groundwater and soil. 10 86 0 61
Total 4,474 20,673 5,181 24,253
Total of investment in facilities within the period 87,200 132,000
Total of investment in R&D activities within the period 65,200 68,000
Effects of environmental conservation
Effects FY2018
Effects corresponding with costs within business area 1. Effects of the resources used for business activities Energy consumption 58,893
Reduction in water consumption 527,530m3 873,383m3
2. Effects against environmental impacts and waste resulting from business activities Reduction in fluorocarbon emissions 79 tons 5 tons
Reduction in waste materials -6,456 tons 6,065
Effects to upstream/
downstream costs
Effects associated with benefits and services that are calculated and based on business activities Number of residential air conditioners collected 390,000
Amount of fluorocarbons recovered 251 tons 275 tons
Amount of packaging material recycled 85.0 tons 98.0 tons

(¥ million)

Economic benefits of environmental conservation efforts (monetary benefits)
Effects FY2018 FY2019
Profit Profit from sale of recycled items, such as waste or used products, etc. 3,315 3,634
Reduction in expenses Reduction in energy expenses resulting from energy conservation efforts 325 162
Reduction in waste disposal expenses resulting from resource conservation or recycling resources 105 107

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