Environmental Management

Environmental Accounting

FY2021 Environmental Accounting Figures

Total environmental protection costs in FY2021 were ¥38.6 billion (investment in equipment: ¥10.5 billion; expenses: ¥28.1 billion), 130% over the previous year.

For the air-conditioner business, we focused our R&D efforts on developing technologies for energy efficiency and refrigerants. Amidst the growing importance of preventing global warming, we proceeded with the development of products and technologies that reduce environmental impact. Examples are inverter technologies offering both comfort and energy efficiency, R-32 refrigerant, which reduces global warming impact to just one-third that of conventional refrigerants, and heat-pump space and water heaters and water heaters, which result in CO₂ emissions less than half of those from conventional combustion-type heating.

Accounting Method

The costs and effects of Daikin's environmental efforts were calculated based on the Environmental Accounting Guidelines 2005 released by Japan's Ministry of the Environment.

Costs of Environmental Conservation

Expenses include labor costs but not depreciation expenses for investment in facilities. The expenses not fully allocated to environmental protection were proportionally divided and totaled according to a relevant Daikin standard.

Effects of Environmental Conservation

Please see the relevant page for details of each item.

Economic Benefits of Environmental Conservation Efforts

The environmental conservation effects and economic benefits were calculated by comparing the adjusted output to the previous fiscal year.

Breakdown of Environmental Conservation Costs (% of total)

FY2020 and FY2021 Environmental Costs

(¥ million)

Cost of environmental conservation
Category	Major activities	FY2020		FY2021
Category	Major activities	Amount of equipment invested	Expenses	Amount of equipment invested	Expenses
Cost in business area		2,195	6,868	6,081	7,970
1. Environmental impact reduction	Introduction, maintenance, and management of pollution prevention facilities/equipment, expenses for measurement/analysis of air pollution control, water pollution control, vibration, and noise.	1,122	2,415	2,235	2,766
2. Global environmental conservation	Introduction of energy efficient facilities/equipment, reduction of fluorocarbon emissions in the production process, and recovery of fluorocarbons.	916	884	1,758	1,157
3. Resource circulation	Reduction or recycling of waste, subcontracting of waste disposal, and resource conservation activities.	158	3,570	2,089	4,048
Upstream/ downstream	Recycling of used products, and recovery, recycling, and destruction of fluorocarbons in used products or products still in service.	11	227	22	476
Management activities	Running of company organization for environmental matters, environmental education, environmental information disclosure, and establishment/maintenance of environmental management systems.	96	1,215	36	1,245
Research and development	Work on three major tasks for air conditioners, and development of fluorochemical products with minimized environmental impact.	1,470	17,518	4,328	18,102
Social activities	Provision of personnel and monetary aid to environment-related organizations, and environmental protection activities in local communities.	0.05	137	0.03	117
Environmental damage	Costs for purification of polluted groundwater and soil.	0	70	21	154
Total		3,772	26,036	10,488	28,064
Total of investment in facilities within the period		137,000		156,300
Total of investment in R&D activities within the period		71,700		81,500

Effects of environmental conservation
Effects			FY2020 figures	FY2021 figures
Effects corresponding to business area cost	1. Effects of the resources used for business activities	Reduction in CO₂ emissions caused by energy consumption	94,569 tons-CO₂	79,486 tons-CO₂
	1. Effects of the resources used for business activities	Reduction in water consumption	1,470,631 m³	2,152,117 m³
	2. Effects against environmental impacts and waste resulting from business activities	Reduction in fluorocarbon emissions	7 tons	43 tons
		Reduction in waste materials	3,286 tons	-592 tons
Effects corresponding to upstream/downstream cost	Effects associated with benefits and services that are calculated and based on business activities	Number of residential air conditioners collected	460,000 units	460,000 units
		Amount of fluorocarbons recovered	269 tons	303 tons
		Amount of packaging material recycled	87.0 tons	87.0 tons

(¥ million)

Economic benefits of environmental conservation efforts (monetary benefits)
Effects		FY2020	FY2021
Profit	Profit from sale of recycled items, such as waste or used products, etc.	5,378	7,048
Reduction in expenses	Reduction in energy expenses resulting from energy conservation efforts	255	6
Reduction in expenses	Reduction in waste disposal expenses resulting from resource conservation or recycling resources	20	-667

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