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Effective Use of Resources

Water Resource Reduction

Effective Use of Resources


Basic Policy

As water shortages become an increasingly serious social problem, Daikin, which develops business globally, strives to protect water resources through the enhanced management of water used at our manufacturing bases throughout the world.

We strive to reduce the amount of water consumed, which we define as the difference between water intake and wastewater, by reducing water intake by improving manufacturing processes and purifying and recycling used water once used, as well as purifying used water and returning it to water resources. In terms of purification, we operate under voluntary standards that are stricter than what is required by law.

Risks and Opportunities Related to Water Resources

Daikin recognizes that water shortages carry the risk of affecting factory operations. We utilize tools to evaluate water stress conditions (indicated by the degree of tightness between water supply and demand) in the areas where our factories operate throughout the world to identify manufacturing bases operating in highly water-stressed regions. Further, we view the reduction of water used as an opportunity to reduce production costs, and by taking measures to reduce water risks, we are working to avoid water risks and reduce production costs. Chemicals business manufacturing bases that require the use of large amounts of water are located in large river basins such as the Yangtze River in China and the Tennessee River in the United States, where water resources are easily secured.

Also, in consideration of the impact of water shortages on the provision of materials from suppliers, we evaluate water stress conditions at major suppliers and establish items related to water resources within our Green Procurement Guidelines that all suppliers are requested to follow to promote water resource conservation throughout the supply chain.

Water Intake Reduction

8% Reduction in Water Intake Per Unit of Production

At Daikin, we strive to reduce water intake by ascertaining the volume of water intake at manufacturing bases and reusing wastewater to the full extent possible. We established the goal of reducing water consumption per unit of production by 5% in fiscal 2020 compared to a baseline comprising the average water intake between fiscal 2013–2015. In fiscal 2017, we reduced total water intake per unit of production throughout the Group by 8% compared to baseline through the use of wastewater recycling equipment, rainwater utilization and improved cleaning processes.

In addition, we established and strictly managed voluntary standards for wastewater quality that are stricter than what is required by law.

Water Intake per Unit of Production

Water Intake per Unit of Production

Water Intake and Wastewater Trends

Water Intake and Wastewater Trends

Response to Water Risks and Opportunities

Operation Surveys in Water-stressed Regions

Water risk has become a pressing issue in recent years. Since fiscal 2014, Daikin has utilized the World Resources Institute (WRI) water risk map (Aqueduct) and the World Business Council for Sustainable Development (WBCSD) Global Water Tool to conduct surveys in water-stressed regions, confirming that operations are taking place in two water-stressed regions: India and China. We have implemented countermeasures including the addition of rainwater pits and formulated a business continuity plan (BCP) assuming scenarios in which operations are hindered due to water shortages.

Lowering Costs through Water Intake Reductions

We reduced water intake volumes by reusing water used for cleaning processes after purifying it with reverse osmosis membranes and activated carbon.

For example, at Daikin Compressor Industries, Ltd. in Thailand, these efforts have resulted in an approximately 80 million m3 (10% overall) reduction in the amount of water used. And at Daikin Europe N.V., changing cleaning solutions to simplify the cleaning process reduced water usage, leading to water resource conservation and lower production costs.

Sustainability

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