Daikin established its Green Procurement Guidelines in fiscal 2000 and requires suppliers from which it procures materials in Japan and overseas to abide by these guidelines to place a priority on the procurement of materials and parts used in manufacturing that reduce environmental burdens.
In implementing these guidelines, we evaluate suppliers on environmental protection activities using a green procurement inspection list. This inspection list also ascertains the presence or absence of environmental management systems and chemical substances management while recording CO2 emissions. It also includes criteria such as biodiversity and water resource protection.
Essential conditions for suppliers' management
Essential conditions for products
Supplier procurement rate scores of 82 points or more on the green procurement inspection list are set as the green procurement rate, which we promote globally with the aim of 100% compliance. The supplier procurement rate corresponds to suppliers inside and outside of Japan accounting for 80% of total procurement value. In fiscal 2019, the Group green procurement rate was 80%.
We attempt to increase the green procurement rate in each region through briefings and other events aimed at facilitating an understanding of the importance of green procurement among suppliers. In fiscal 2019, briefings were held at 11 bases in China and the U.S.
We launched green procurement in South America in 2016. In Thailand, China and Europe, where green procurement has been established, we ask suppliers below a certain standard to make improvements and provide guidance to assist them. Supporting improvements in supplier environmental activities enables us to continue doing business with them.
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The Daikin Group maintains a list based on the RoHS Directive*1 and the REACH Regulation*2 regarding chemicals contained in products. These are stated in our Green Procurement Guidelines, which we require our suppliers to abide by.
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