Daikin Selected For "SX Brands 2025"

Daikin Industries, Ltd. announces its selection to the "SX (Sustainability Transformation) Brands 2025," which is jointly awarded by the Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange (TSE). SX Brands denote those outstanding companies listed on the TSE that are selected for enhancing their ability to create a source of funds for growth in a sustainable manner through SX to realize the improvement of corporate value. The award was established for the purpose of introducing brands that appeal to investors who emphasize improvements in corporate value over the medium to long term, and this is the second year for the award to be bestowed. Daikin was among 13 other companies selected this time, marking the second consecutive year for the company to receive the honor.

Ideal value creation in the long term for Daikin is providing new value that makes people and spaces healthy and comfortable while reducing environmental impact. In its strategic management plan "Fusion 25" targeting the year 2025, the company has focused on three growth strategy themes: "Challenge to Achieve Carbon Neutrality," "Promotion of Solutions Business Connected with Customers," and "Creating Value with Air." Daikin has already established key Group themes to realize these aims and has begun efforts toward implementation.

The main points evaluated in the selection this time are as follows:

1. Daikin prioritizes its climate change measures, which closely relate to its business, and explains in an easy-to-understand narrative its aim to achieve both business growth and the resolution of environmental and social issues to further improve its corporate value in the medium to long term.
2. In formulating its strategic management plan "Fusion 25," Daikin devised a long-term strategy with an integrated approach by backcasting global changes and ideal state of the company from 10 to 20 years in the future and then setting key strategic themes for the five-year management plan. The key strategic themes set forth in "Fusion 25" are consistent and flexible enough to respond to changes in the external environment.
3. As a distinctive initiative of an implementation strategy, the company is actively involved in the formulation of rules in all global regions, including emerging countries, to ensure that energy-saving performance can be properly evaluated, and this has led to the widespread adoption of highly efficient inverter air conditioners. Both inside and outside the company, Daikin is focused on generating new intellectual property, including building and strengthening its own intellectual property portfolio, and is developing a system that provides incentives for both parties in a collaborative creation initiative to create inventions.