Occupational Safety and Health

Basic Policy

Daikin Group Conduct Guidelines state that we are constantly aware of and taking action on the safe operation of our workplaces. To achieve this, we constantly strive to create a "zero accident" workplace where Daikin employees and subcontract employees work safely, both for their own sake and to instill a feeling of safety in the minds of residents around our factories.

Group Conduct Guidelines

Occupational Safety and Health Management Structure

Officer in Charge of Safety Leads Safety and Accident-Prevention Efforts

Daikin aims to maintain "zero accident" workplaces at all production bases. An officer in charge of safety is appointed to drive these efforts and comprehensively promote the safe operation of production facilities throughout the Group.

Global safety and security meetings led by the officer in charge of safety are held twice a year. These meetings report on the occurrence of accidents in Japan and overseas, details of safety and security meetings held in each region, status of support provided to overseas bases with a high frequency of accidents, and the status of countermeasures against common issues globally. Discussions are also held on ways of further improving the level of safety.
Major safety issues or concerns are reported promptly to the officer in charge of safety when discovered, who then orders the department responsible for safety of the applicable base to rectify the situation and implement countermeasures. In turn, solutions are rolled out to the entire Group.

In Japan, Occupational Safety and Health Committees are established at each plant jointly involving labor and management to devise annual safety policies, formulate occupational safety and health plans and implement the PDCA cycle. The committees, which meet monthly, are comprised of the health and safety officer (head of each plant), safety manager, health manager, industrial physician, and representatives from the company and labor union, in accordance with laws and regulations.

Overseas, employees responsible for safety are appointed at each production base. Annual safety meetings are held in each region in an attempt to improve the level of safety measures.

Occupational Safety and Health Promotion Structure

Fostering Safe Workplaces

To prevent the occurrence of occupational injuries, Daikin carries out safety countermeasures after each base conducts risk assessments and identifies facilities that pose a high risk of injury. When an injury occurs at a base either inside or outside of Japan, matters concerning the monthly occurrence, causes, and countermeasures are reported to the officer in charge of safety via the department responsible for safety at Daikin Industries, Ltd., pursuant to the Group's injury reporting guidelines. In turn, this information is reported to and shared with the global safety and security meeting two times per year. For example, regarding accidents involving forklifts and onsite vehicles, which had seen a rising number of accidents globally over the past several years, details of these accidents and countermeasures were shared by each base at the global safety and security meeting, and now we are striving to prevent future accidents by installing safety equipment on forklifts at each base and increasing workers' safety awareness through training. In addition, we are making efforts to prevent occupational injuries by providing protective equipment, translating procedures into local languages, conducting regular equipment maintenance and by making helmets mandatory at overseas bases and taking other measures irrespective of legal requirements in each country.

Additionally, to foster greater safety awareness, every year in July (in conjunction with Nationwide Safety Week in Japan) the CEO shares a message with the entire Group about the key initiatives for that particular fiscal year. Also, every year, senior management, the officer in charge of safety and the department responsible for safety visit bases in Japan and abroad to provide guidance for ensuring safety. We are also working to improve awareness of safety by having the department responsible for safety collect information on the occurrence of accidents in the Group monthly which is then shared with safety managers at each base.

Targets and Achievements

Aiming for "Zero Accident" Workplaces at All Production Facilities

Aiming for "zero accident" workplaces, Daikin utilizes a rate showing the frequency of occupational accidents resulting in lost work time as an indicator of operational safety. The frequency rate of occupational accidents for the entire Daikin Group in fiscal 2021 was 1.19. In fiscal 2021, there were zero fatal accidents for the entire Daikin Group.

Frequency Rate of Lost-Time Occupational Accidents^*1 (Including group companies in Japan and overseas)

*1

This shows the frequency of occupational accidents resulting in lost work time, expressed in number of casualties for every 1,000,000 working hours.
Frequency rate = Number of fatalities/injuries caused by occupational accidents resulting in lost work time / Total actual working hours × 1,000,000

*2

Calculated based on information from U.S. Bureau of Labor Statistics (November 2021).
No data was released for the U.S. in fiscal 2021. (As of the end of JUN 2022)

Severity Rate^* (Including Group companies in Japan and overseas)

*

This shows the severity of the calamity, expressed in man-days lost per 1,000 hours worked.
Severity rate = Total number of working days lost / Total actual working hours × 1,000

Occupational Safety and Health Management System

61 Bases Certified for ISO 45001 and Other Standards

Daikin has production bases around the world and we ensure safe plant operation and worker safety through the creation of occupational safety and health management systems at each base, as well as certification for international standards such as ISO 45001 at 61 bases.

Under this system, we use risk assessment to reduce and manage the risk of health and safety problems, and we ensure that we are continuously in compliance with laws and regulations. In addition, every year, we conduct internal and external audits, along with education and safety patrols with the aim of achieving "zero accident" workplaces.

As of the end of fiscal 2021, 52 air conditioning manufacturing bases and nine chemical manufacturing bases (approximately 60% of all manufacturing bases) had acquired certification related to ISO 45001 and other occupational safety and health management systems.

Number of Bases with Occupational Safety and Health Management System Certifications

*

Acquired by approximately 60% of all manufacturing bases

Employee Education and Training

Hands-On Training Raises Safety Awareness at Daikin Worldwide

Daikin conducts a variety of education and training on occupational safety and health. This applies to everyone who works at Daikin, including employees (part-time employees and dispatched employees included), business partners, partner companies, and contractors.

Daikin Industries Ltd. places an important focus on hands-on training that simulates situations where certain actions or situations could invite danger. Using specially made devices and machines, employees take part in hands-on mock training in which they experience what it is like to be caught in or trapped by machinery in the equipment manufacturing industry, where such accidents are common; and where they see firsthand the danger of fire and pressure caused by chemical reactions common in the chemicals manufacturing industry. We continue to hold training based on effective programs that combine with theoretical learning in the classroom.

In addition, at our overseas bases, we will improve technical proficiency levels through participation in training held in Japan and aim for zero occupational accidents by providing safety training and conducting safety patrols, among other initiatives.

Stakeholder Engagement

Dialogue with Communities for Safer Plants

We have established venues for regular dialogue with local community members for safety plants in order to provide added peace of mind to the people living around our plants.

Employee Health Management and Mental Health Care

Supporting Employee Health through Checkups and Counseling

Daikin Industries, Ltd. strives to maintain employees' health by providing all employees with semi-annual health checkups, as well as semi-annual special checkups for those engaged in specialized work, as required by health and safety laws. In fiscal 2021, 99% of employees underwent checkups, with issues found in 63% of these checkups.
Employees who are found to have problems are put under the direct guidance of the company health clinic and are given thorough guidance in necessary measures to take. At such secondary checkups, employees are given personalized health guidance and advice on improving their habits that matches their individual lifestyles. Employees who require detailed examinations and treatment are sent monthly follow-up emails as part of our efforts to decrease the number of people not getting the care they need.
Employees working excessive hours are checked by an industrial physician, and if the employee needs special attention, he or she and his or her superior will receive guidance from the physician. At interviews with industrial physicians, employees are given not just health advice but also consultation regarding family life and other personal matters.

Infection control for employees

Daikin makes efforts in infection control that prioritizes the health and safety of employees and management of infection risks.
Daikin conducted regular disinfection and ensured thorough ventilation in offices in ensuring the health and safety of its employees and their families in response to the spread of COVID-19. At the same time, it strictly required employees to undergo temperature checks prior to entering the workplace, wear masks, avoid closed spaces, and practice hand-washing and hand sanitization with alcohol. In addition, Daikin encouraged working from home, time-shifted commute and time-shifted work, and takes the utmost care when visiting clients for purposes of air conditioner repairs.
In June 2021, we provided COVID-19 vaccinations at our five bases in Japan. These workplace vaccinations covered our employees, their families, retired and former employees, and suppliers, with a total of around 23,000 vaccinations administered. In March 2022 at our third round of workplace vaccinations, we provided vaccinations to around 18,500 people at our five bases in Japan. Eligible persons included employees, their families, retired and former employees, and suppliers, similar to the first and second rounds.

At overseas bases, Daikin took measures in line with the infection status and policies of each country and region with the preservation of health and safety of its employees as the top priority.

Awareness of Individuals and Organizations Dealing with Mental Health Issues and Provision of Specialist Care

Daikin Industries, Ltd. strives to maintain the physical and mental health of employees. Based on guidelines from the Ministry of Health, Labour and Welfare, four types of mental healthcare measures, such as self-care and care by dedicated outside staff, are planned and implemented at all bases depending on the needs of each base.

For example, industrial physicians provide mental health checkups to employees who are transferred and to newly hired employees after three months, as well as to employees whose questionnaires have showed they are facing problems. There are also mental health lectures. We conduct stress checkups at all Daikin bases in Japan. Persons judged to have a high risk of stress met with industrial physicians so that their problems could be discovered early and solved through numerous approaches such as self-care and work environment improvement.

Shortening Working Hours

Eliminating Long Working Hours by Obligating Employees to Leave at Closing Time and Boosting Work Efficiency

Daikin strives to comply with labor related laws and regulations in the countries and regions where it operates and to eliminate prolonged working hours of employees, under the Group Conduct Guidelines that state, "Respect for Human Rights and Diversity and Observance of Labor Laws."

Respect for Human Rights and Diversity and Observance of Labor Laws

For example, Daikin Industries, Ltd. strives to eliminate long working hours through measures such as obligating employees to leave the office at closing time once a week and prohibiting employees from coming to work on their days off (unless absolutely necessary and approved by the department head).

In this way, we are making a concerted effort to improve both work rule compliance and work efficiency. Yearly plans are made for each employee's duties and working hours, and to ensure that work and personnel management are in line with the plans, checklists are filled out to manage daily work.

Furthermore, by implementing a planned 5-day paid work leave system and establishing 3 days of general paid leave, we aim to promote respect for work-life balance and a more vibrant work environment.

Percentage of Employees Taking All Paid Leave (Daikin Industries, Ltd. only)

Average Hours of Overtime per Employee (Daikin Industries, Ltd. only)

Measures to reduce working hours