Reducing Greenhouse Gases during Development, Production and Transportation

Reducing Greenhouse Gas Emissions During Development and Production

Target Reached: 79% Reduction Compared to Fiscal 2005, achieved Environmental Action Plan 2020

Daikin strives to reduce greenhouse gas emissions during the product development and production processes.

Daikin emits two kinds of greenhouse gases during development and production processes: CO₂ from energy use, and fluorocarbons. We have set goals for reducing greenhouse gas emissions during the product development and production processes in fiscal 2020 by 70% and in fiscal 2025 by 75% in comparison to fiscal 2005. We reached our Environmental Action Plan 2020 goal with greenhouse gas emissions in fiscal 2020 of 1.08 million tons-CO₂ (79% reduction compared to fiscal 2005). As an energy initiative, we purchased green electricity at Goodman Manufacturing Company, L.P. in the U.S. and installed a 5 MW sized solar power generation system at Daikin Tukey A.S.

In addition, regarding fluorocarbons, we have introduced couplers (joints) with less leakage when charging refrigerants in air conditioners in Japan in fiscal 2020.

Greenhouse Gas Emissions (during development and production)

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Amount of emissions assuming business growth without taking measures (fiscal 2016 as baseline)

Reducing Energy-Induced CO₂ in Development and Production

CO₂ Emissions per Production Unit Dropped by 14% Against Standard Value

The Daikin Group as a whole is taking a systematic approach to reduce energy-induced CO2 by improving energy efficiency during development and production processes.

In fiscal 2020, CO₂ emissions per production unit dropped 14% against the standard value. Following from the previous fiscal year we have continued to visualize energy usage at each location, minimize use, and improve low pressured compressed air in fiscal 2020.

In addition, we also received certification for the ISO 50001 international standard for energy management at Daikin Europe N.V. and Daikin Industries Czech Republic s.r.o.

Total Energy-Induced CO₂ Emissions, CO₂ Emissions per Unit of Production

Reducing CO₂ Emissions during Transportation

CO₂ Emissions per Sales Reduced by 4.4% Over Fiscal 2015

Daikin Industries, Ltd. set a goal of decreasing CO₂ emissions (per sales) from transportation by 5% by fiscal 2020 compared to fiscal 2015 by switching from trucks to trains and ferries. We also increased the use of direct shipping from overseas production sites to places of consumption in Japan to ensure the shortest possible transportation route.

In fiscal 2020, we also introduced transportation by railway for the return trip from Tokyo to Kansai. This initiative to utilize roundtrip travels is also recognized by the Ministry of Land, Infrastructure, Transport and Tourism's Promotion of Modal Shift-Intermodal Transportation.

The modal shift conversion rate in fiscal 2020 was 21%.

CO₂ Emissions per Sales from Transportation (Air Conditioning Divisions)

Reducing Other Environmental Impact during Transportation

• We solved the driver shortage by reducing the truck waiting times and loading times and thus the amount of work hours.
• At production bases in Japan, we are promoting the engine replacement of forklifts with electric models.
• We practice start-stop for all vehicles on the premises including vehicles of our transport partners.
• We are engaged in reducing CO₂ emissions through improved transportation efficiency and decreased packaging volume, and reducing electricity consumption through shorter working hours.
• We are working with overseas development bases on promoting material-saving packaging designs in reducing packaging volume.
• We revised the warehouse layout both in Japan and overseas to boost work efficiency
• We have introduced an IT system that visualizes the shipment status of imported items. Delivery drivers in Japan using smartphones to directly confirm their estimated arrival time reduced the number of steps in communication between multiple departments previously required for inquiries or contacts.

Using Renewable Energy

Using More Solar, Wind, and Hydro Power

Daikin is working to expand the use of renewable energy such as solar, wind, and hydro powers.

In fiscal 2015, we installed tracking solar panels at the Technology and Innovation Center (TIC), Daikin's R&D base, which helped the solar power system generate 7,230 MWh a year at development and production bases in Japan and overseas. This is equivalent to CO₂ emission reductions of approximately 4,000 tons-CO₂ (estimated by Daikin).

Moreover, in Europe, where governments using EU directives on renewable energy like solar, wind, and hydro powers, we are aiming to have renewable energy account for 20% of the energy mix by 2020. We have introduced green electricity to power factories and offices at Daikin Europe N.V., AAF (UK), Daikin Device Czech Republic s.r.o., and Daikin Applied Europe.

In Asia and Oceania, we are installing large scale solar panels at Daikin Industries (Thailand) Co., Ltd., Daikin Compressor Industries, Ltd. and Daikin Airconditioning India Pvt. Ltd.

In fiscal 2020, we purchased green energy at Goodman Manufacturing Company, L.P. in the U.S. and installed a 5 MW sized solar power generation system at Daikin Turkey A.S.

Going forward, we will continue to implement the use of renewable energy globally.