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Environmental Management

Environmental Accounting

Environmental Management

Environmental Accounting

FY2017 Environmental Accounting Figures

Total environmental protection costs in FY2017 were ¥26.7 billion (investment in equipment: ¥4.4 billion; expenses: ¥22.3 billion), 93% 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-type heating systems 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)

FY2016 and FY2017 Environmental Costs

(¥ million)

Cost of environmental conservation
Category Major activities FY2016 FY2017
Amount of equipment invested Expenses Amount of equipment invested Expenses
Cost in business area   1,682 5,816 2,076 5,538
1. Pollution prevention Introduction, maintenance, and management of pollution prevention facilities/equipment, expenses for measurement/analysis of air pollution control, water pollution control, vibration, and noise. 857 1,765 776 1,743
2. Global environmental conservation Introduction of energy efficient facilities/equipment, reduction of fluorocarbon emissions in the production process, and recovery of fluorocarbons. 760 756 1,070 774
3. Resource circulation Reduction or recycling of waste, subcontracting of waste disposal, and resource conservation activities. 66 3,255 231 3,021
Recycling of used products, and recovery, recycling, and destruction of fluorocarbons in used products or products still in service. 9 231 43 278
Management activities Running of company organization for environmental matters, environmental education, environmental information disclosure, and establishment/maintenance of environmental management systems. 21 1,080 19 1,065
Research and development Work on three major tasks for air conditioners, and development of fluorochemical products with minimized environmental impact. 1,747 12,591 2,218 15,074
Social activities Provision of personnel and monetary aid to environment-related organizations, and environmental protection activities in local communities. 2 256 1 261
Environmental damage Costs for purification of polluted groundwater and soil. 0 638 0 72
Total 3,461 20,613 4,357 22,288
Total of investment in facilities within the period 90,300 96,600
Total of investment in R&D activities within the period 53,900 62,100
Effects of environmental conservation
Effects FY2016 figures FY2017 figures
Effects corresponding with costs within business area 1. Effects of the resources used for business activities Energy consumption 53,489 tons-CO2 14,088 tons-CO2
Reduction in water consumption -2,710,768m3 -131,643m3
2. Effects against environmental impacts and waste resulting from business activities Reduction in fluorocarbon emissions -27 tons 575 tons
Reduction in waste materials -1,422 tons -2,067 tons
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
Amount of fluorocarbons recovered
Amount of packaging material recycled
280,000 units
175 tons
133.0 tons
320,000 units
205 tons
78.0 tons

(¥ million)

Economic benefits of environmental conservation efforts (monetary benefits)
Effects FY2016 FY2017
Profit Profit from sale of recycled waste 2,105 3,303
Reduction in expenses Reduction in energy expenses resulting from energy conservation efforts 901 -151
Reduction in waste disposal expenses resulting from resource conservation or recycling resources 971 366

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