Water Resource Conservation

Basic Policy

As water shortages become an increasingly serious social problem, Daikin, which develops business globally, strives to protect water resources in line with "Goal 6: Clean water and sanitation" of the Sustainable Development Goals (SDGs). At each of our production bases around the world, we have introduced and operate an environmental management system (EMS) including for water usage, following ISO 14001 requirements. Using these environmental management systems, we are also enhancing our management of water usage.

We strive to reduce the amount of water consumed, which we define as the difference between water intake and wastewater, by reducing water intake by improving manufacturing processes and purifying and recycling used water once used, as well as purifying used water and returning it to water resources. In terms of purification, we operate under voluntary standards that are stricter than what is required by law.

Risks and Opportunities Related to Water Resources

Daikin recognizes that water shortages carry the risk of affecting factory operations. We utilize tools to evaluate water stress conditions (indicated by the degree of tightness between water supply and demand) in the areas where our factories operate throughout the world to identify manufacturing bases operating in highly water-stressed regions. The results of the evaluation show that applicable bases were Daikin Device (Xian) Co., Ltd. and Daikin Air Conditioning India.

Further, we view the reduction of water used as an opportunity to reduce production costs, and by taking measures to reduce water risks, we are working to avoid water risks and reduce production costs. Chemicals business manufacturing bases that require the use of large amounts of water are located in large river basins such as the Yangtze River in China and the Tennessee River in the United States, where water resources are easily secured.

Also, in consideration of the impact of water shortages on the provision of materials from suppliers, we evaluate water stress conditions at major suppliers and establish items related to water resources within our Green Procurement Guidelines that all suppliers are requested to follow to promote water resource conservation throughout the supply chain.

Water Intake Reduction

24% Reduction in Water Intake Per Unit of Production

At Daikin, we strive to reduce water intake by ascertaining the volume of water intake at manufacturing bases and reusing wastewater to the full extent possible. In fiscal 2021, we established a new goal of reducing water consumption per unit of production by 10% in fiscal 2025 compared to a baseline comprising the average water intake between fiscal 2013–2015. In fiscal 2021, we reduced total water intake per unit of production by 24% compared to the benchmark for the entire Group. In fiscal 2021, we introduced a precision water usage monitoring system at Daikin Compressor Industries Ltd. in Thailand. In addition, we installed a large capacity rainwater tank to expand the use of rainwater at Daikin Industries (Thailand) Ltd.

In addition, for the water quality of wastewater, we have established unified worldwide voluntary standards that are stricter than what is required by law, and we implement these standards exactly as they are written.

Wastewater treatment facility at Kanaoka Factory of Sakai Plant

Water Intake per Unit of Production

Water Intake and Wastewater Trends

COD emissions

Note:

The measuring method has changed since fiscal 2020, and the numerical values from fiscal 2019 have been retroactively corrected following the same method.

Response to Water Risks and Opportunities

Operation Surveys in Water-stressed Regions

Water risk has become a pressing issue in recent years. Since fiscal 2014, Daikin has utilized the World Resources Institute (WRI) water risk map (Aqueduct) and the World Business Council for Sustainable Development (WBCSD) Global Water Tool to conduct surveys in water-stressed regions, confirming that operations are taking place in two water-stressed regions: India and China. We have implemented countermeasures including the addition of rainwater pits and formulated a business continuity plan (BCP) assuming scenarios in which operations are hindered due to water shortages.
Daikin Airconditioning India Pvt. Ltd. periodically reports the situation of its groundwater use to the public corporation that developed the industrial park where it is situated.

Amount of Water Intake and Wastewater in Water-stressed Regions (India, China)

(Thousand m³)

Lowering Costs through Water Intake Reductions

We reduced water intake volumes by reusing water used for cleaning processes after purifying it with reverse osmosis membranes and activated carbon.

For example, at Daikin Compressor Industries Ltd. in Thailand, these efforts have resulted in an approximately 80 million m³ (10% overall) reduction in the amount of water used. And at Daikin Europe N.V., changing cleaning solutions to simplify the cleaning process reduced water usage, leading to water resource conservation and lower production costs.

In fiscal 2021, a precision water usage monitoring system was introduced at Daikin Compressor Industries Ltd. in Thailand. The system sends error messages upon detection of abnormal trends and optimizes water use based on cause analysis, which led to reduced volume of water used as well as an annual cost reduction of 400,000 baht.

Engagement with Stakeholders

Daikin uses water at each of its production bases during the cleaning and painting processes for air conditioner parts. This water is released after being treated. We have established and comply with voluntary standards that are stricter than legally mandated ones. In this manner, we strive to preserve water resources in the surrounding communities where we operate.
At our plants in Japan, we hold discussions with local residents once every year where we share information about such initiatives concerning water.