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Third-Party Verification

Method of Calculating Greenhouse Gas Emissions Data

Greenhouse gas emissions data are calculated as follows.

(1) Use of fuel at sites (Energy-induced CO2)Scope 1

  • The scope of calculation covers four manufacturing bases of Daikin Industries, Ltd., eight manufacturing subsidiaries in Japan, and 46 manufacturing subsidiaries overseas.
  • However, the following may not be included in calculation: newly consolidated bases, sites that are newly established and that don't yet have a data collection system in place, and sites whose emissions are negligible. For sites where data procurement is difficult, calculation is based on estimates of past data, for example.
  • Heat generation per unit, CO2 emissions coefficient: Based on Environmental Activity Evaluation Program (Eco-Action 21) (1998, Ministry of the Environment); for natural gas in Japan, the coefficient used is based on the Act on the Promotion of Global Warming Countermeasures.

(2) Emissions of HFCs and PFCs in production processes at sitesScope 1

  • The scope of calculation covers four manufacturing bases of Daikin Industries, Ltd., eight manufacturing subsidiaries in Japan, and 46 manufacturing subsidiaries overseas.
  • For estimates of emissions of HFCs and PFCs, material balances and emissions coefficients are set and calculated based on methods stipulated in the Act on the Promotion of Global Warming Countermeasures.
  • Global warming potentials of HFCs and PFCs are from the IPCC Fourth Assessment Report.

(3) Non-energy-induced CO2, CH4, N2O, SF6 NF3 emissions in production processes at sitesScope 1

  • The scope of calculation is the four manufacturing bases of Daikin Industries.
  • Calculations are based on emissions coefficients stipulated in the Act on the Promotion of Global Warming Countermeasures.
  • Global warming potentials are from the IPCC Fourth Assessment Report.

(4) Use of electricity and heat at sites (Energy-induced CO2)Scope 2

  • The scope of calculation covers four manufacturing bases of Daikin Industries, Ltd., eight manufacturing subsidiaries in Japan, and 46 manufacturing subsidiaries overseas.
  • CO2 emissions coefficients are as follows.
    Purchased electricity: 
    In Japan: 
    0.384kg-CO2/kWh
    Based on Environmental Activity Evaluation Program (Eco-Action 21) (1998, Ministry of the Environment)
    Overseas: 
    Coefficients provided by electricity distribution companies
    Based on Report on Survey of Estimates of CO2 Unit Emissions in Power Generation Fields in Countries of the World (Japan Electrical Manufacturers' Association), and on CO2 Emissions from fuel combustion 2015 edition (IEA)
    Purchased heat: 
    0.068kg-CO2/MJ
    Based on Environmental Activity Evaluation Program (Eco-Action 21) (1998, Ministry of the Environment)
    For Kashima Plant, 0.05 kg-CO2/MJ (surveyed value by site)

(5) Purchased products and services (Energy-induced CO2)Scope 3

  • Scope of calculation covers components and materials purchased for air conditioners, water heaters, oil hydraulic products, filters, and fluorochemical products produced in Japan, China, Thailand, Malaysia, India, Belgium, the Czech Republic, the Netherlands, France, Italy, Germany, Turkey, and the U.S.
  • For each, purchased amount is multiplied by CO2 emission coefficient.
  • CO2 emission coefficient is based on CFP Program Basic Database Ver. 1.01 (data in Japan), by the Japan Environmental Management Association for Industry, and the Inventory Database for Environment Analysis, by the National Institute of Advanced Industrial Science and Technology, and the Japan Environmental Management Association for Industry
  • For chemicals, approximately 80% of the highest volume ones were selected, and a 100% value estimate calculation was done.

(6) CO2 emissions from the use of products sold (Energy-induced CO2)Scope 3

  • Scope of calculation covers the use of products sold globally which includes residential air conditioners, air conditioners for shops, offices and buildings, air conditioners for factories, central air conditioning units and equipment for hot water supply and heating.
  • Calculation method: 
    Annual energy consumption × Product lifecycle × Electricity CO2 emission coefficient (or Gas* CO2 emission coefficient) × Sales volume
    *used as fuel in combustion heating equipment
  • Data for the calculation method are as follows.
    Annual energy consumption: 
    Catalogue value, standard value or value calculated assuming actual usage conditions
    Product lifecycle: 
    10 years for residential equipment and 13 years for others
    Electricity CO2 emission coefficient: 
    value reported in "IEA Emissions Factors"

(7) CO2 emissions from the use of products sold (Fluorocarbons)Scope 3

  • Scope of calculation is same as part (6).
  • Calculation method: 
    Refrigerant charge amount × Annual leakage rate × Product lifecycle × Global warming potential × Sales volume
  • Data for the calculation method are as follows.
    Refrigerant charge amount: 
    Catalogue value
    Annual leakage rate: 
    Value reported in "Revisions of Emission Coefficient, Etc. During Use of Refrigeration and Air Conditioning Equipment" by Manufacturing Industries Bureau, Ministry of Economy, Trade and Industry, March 17, 2009
    Product lifecycle: 
    10 years for residential equipment and 13 years for others
    Global warming potential: 
    Value reported in IPCC Assessment Report

(8) CO2 emissions from the disposal of products soldScope 3

  • Scope of calculation is same as part (6).
  • For calculation method, impact by refrigerant release is calculated by refrigerant charge amount × global warming potential × (1- recovery rate). Emissions associated with the transport, disassembly etc. of waste products is calculated by multiplying the emission per unit by sales volume.
  • Data for the calculation method are as follows.
    Refrigerant charge amount: 
    Catalogue value
    Global warming potential: 
    Value reported in IPCC Assessment Report
    Recovery rate: 
    Set to 0% conservatively
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