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"CSR Report 2012" for the Daikin Group

27 June 2012

"CSR Report 2012"

Daikin Industries, Ltd. has issued its "CSR Report 2012" summarizing CSR (Corporate Social Responsibility) activities in the Daikin Group from April 2011 to March 2012.

This report serves to inform various stakeholders regarding CSR within the Daikin Group and deepen their understanding of activities undertaken by Daikin to achieve it. The report centers on the themes of "Environment," "Quality and Customer Satisfaction," "Human Resources," and "Social Contribution," which are all deemed essential to Daikin.

Regarding environmental protection as a top priority management theme, the Daikin Group aims to balance expansion of business with contribution to global environmental issues and formulates a mid-term environmental action plan that is issued every five years.

Based on the strategic management plan Fusion 15 that targets fiscal year 2015, we have started mid-term environment protection activities to aim to balance expansion of business with environment. Activities have already begun to reach goals, including to help curtail CO2 emissions by numerical targets 30 million tons in rapidly growing emerging countries through expansion in the widespread use of environmentally conscious products, such as energy-saving air conditioners, and numerical targets to reduce greenhouse gas emissions from the Daikin production processes to one-third the level of that for fiscal year 2005.

The CSR Report contains features on important CSR themes that include the following themes: initiatives for environmental solutions utilizing the technology, products, and services that the Daikin Group, centered on the "Environment," has for energy savings and electricity conservation; revitalization of communication with customers; human resources fostering within global localization; and social contribution activities for the nucleus of employees embedded in the local regions. In particular, concerning the CSR practiced in the Chinese market where growth is significant, we have written a main feature article focusing on local employees.

The Chinese edition is to be published in September, whereas a booklet in English will be created at the same time from extracted feature articles.

Features of "CSR Report 2012"

1. Start of mid-term Environmental Protection Activities based on the strategic management plan Fusion 15

For the fiscal year targets of fiscal year 2015, we have started environmental protection activities by making the three items of "Providing Environmentally Conscious Products," "Eco-conscious Factories & Offices," and "Environmental Cooperation with Stakeholders" the pillars.

"Providing Environmentally Conscious Products"

Through expansion in the widespread use of energy-saving products such as those using inverters, we aim to help curtail CO2 emissions to 30 million tons for developing countries in fiscal year 2015.
Fiscal year 2011 results: 17 million ton curtailment

"Eco-conscious Factories & Offices"

Greenhouse gas emissions are to be reduced in fiscal year 2015 to 1/3 (67%) of the level compared with fiscal year 2005.
Fiscal year 2011 results: 62% reduction

"Environmental Cooperation with Stakeholders"

Activities for environmental and social contributions are linked to regions, local governments, NPOs, and similar organizations and are implemented at each global base according to regional characteristics (reforestation, tree-planting, environmental education, biodiversity conservation at bases).
Fiscal year 2011 results: start of support for environmental protection in the Shiretoko Peninsula of Hokkaido, a World Natural Heritage site

2. Main Feature Presenting CSR Practices in China Aiming for Company Contributions to the Environment

In China, the world's principal location for manufacture and consumption of air conditioners and the place where demand is expected to continue expanding in the future, CSR is also expanding, as it should, together with the expansion of business. Even within this, we believe that our primary responsibility is to provide products and technology that contribute to curtailing the continually increasing amount of energy being consumed, and we are presenting the CSR initiatives that are practiced based on "human resource development" and "localization of management," such as environmental awareness in the promotion of widespread use of inverter models that are high in energy-savings and the newly established Suzhou Factory.

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