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Environmental Management

Environmental Accounting

Environmental Management

Environmental Accounting

FY2020 Environmental Accounting Figures

Total environmental protection costs in FY2020 were ¥29.8 billion (investment in equipment: ¥3.8 billion; expenses: ¥26.0 billion), 101% 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)

Breakdown of Environmental Conservation Costs (% of total)

FY2019 and FY2020 Environmental Costs

(¥ million)

Cost of environmental conservation
Category Major activities FY2019 FY2020
Amount of equipment invested Expenses Amount of equipment invested Expenses
Cost in business area   2,995 7,024 2,195 6,868
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. 1,509 2,434 1,122 2,415
2. Global environmental conservation Introduction of energy efficient facilities/equipment, reduction of fluorocarbon emissions in the production process, and recovery of fluorocarbons. 1,300 1,051 916 884
3. Resource circulation Reduction or recycling of waste, subcontracting of waste disposal, and resource conservation activities. 186 3,539 158 3,570
Recycling of used products, and recovery, recycling, and destruction of fluorocarbons in used products or products still in service. 23 201 11 227
Management activities Running of company organization for environmental matters, environmental education, environmental information disclosure, and establishment/maintenance of environmental management systems. 35 964 96 1,215
Research and development Work on three major tasks for air conditioners, and development of fluorochemical products with minimized environmental impact. 2,127 15,883 1,470 17,518
Social activities Provision of personnel and monetary aid to environment-related organizations, and environmental protection activities in local communities. 1 120 0.05 137
Environmental damage Costs for purification of polluted groundwater and soil. 0 61 0 70
Total 5,181 24,253 3,772 26,036
Total of investment in facilities within the period 132,000 137,000
Total of investment in R&D activities within the period 68,000 71,700
Effects of environmental conservation
Effects FY2019
Effects corresponding to business area cost 1. Effects of the resources used for business activities Reduction in CO2 emissions caused by energy consumption 18,218
Reduction in water consumption 873,383 m3 1,470,631 m3
2. Effects against environmental impacts and waste resulting from business activities Reduction in fluorocarbon emissions 5 tons 7 tons
Reduction in waste materials 6,065
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 410,000
Amount of fluorocarbons recovered 275 tons 269 tons
Amount of packaging material recycled 98.0 tons 87.0 tons

(¥ million)

Economic benefits of environmental conservation efforts (monetary benefits)
Effects FY2019 FY2020
Profit Profit from sale of recycled items, such as waste or used products, etc. 3,634 5,378
Reduction in expenses Reduction in energy expenses resulting from energy conservation efforts 162 255
Reduction in waste disposal expenses resulting from resource conservation or recycling resources 107 20

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