Reducing Greenhouse Gases during Development, Production and Transportation

Reducing Greenhouse Gas Emissions During Development and Production

A New Target for Total Emissions Set For Fiscal 2025

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 a new goal in fiscal 2021 for reducing greenhouse gas emissions during the product development and production processes in fiscal 2025 by 1.2 million tons-CO₂ (34% reduction in comparison to fiscal 2015). In fiscal 2021 our greenhouse gas emissions totaled 1.16 million tons-CO₂ (36% reduction compared to fiscal 2015). As for our energy initiatives in fiscal 2021, we purchased green electricity at Daikin Applied Americas, Inc. in the U.S. and expanded solar power generation system in Thailand and Malaysia with plans to introduce it in China.

In addition, regarding fluorocarbons, we have seen results with the HFC measures launched by the air conditioning divisions and improvement of PFCs recovery rate at Daikin America, Inc. in fiscal 2021.

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CO₂, CH4, N2O, and four fluorinated gases (HFCs, PFCs, SF6, and NF3), which are considered the main causes of global warming, are subject to regulation based on the United Nations Framework Convention on Climate Change.

Greenhouse Gas Emissions (during development and production)

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Predicted values for fiscal 2021 and onward assuming no measures are taken

Reducing Energy-Induced CO₂ in Development and Production

CO₂ Emissions in Fiscal 2021 Totaled 790,000 tons-CO₂

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 2021, CO₂ emissions was 790,000 tons-CO₂. 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 proceeded with our measures including expanding the use of green energy in the United States. Nonetheless, the total emissions increased from the previous fiscal year as a result of increased energy consumption following increased production due to the economic recovery.

Reducing CO₂ Emissions during Transportation

CO₂ Emissions per Sales Reduced by 4.4% Over Fiscal 2020

We have set a goal of using logistics processes to help reduce CO₂ emissions equivalent to 5% of the actual CO₂ emissions in transportation in fiscal 2020 by fiscal 2025. We are doing so by expanding modal shift which involves switching from trucks to trains and ferries as well as pursuing logistics that is environmentally conscious, including use of energy-saving trucks.

In fiscal 2021, we started the operations of the Chubu Central Distribution Center in response to increased sales in the Chubu region. This centralized the multiple distribution bases located in Chubu and enhanced transportation efficiency by eliminating unnecessary transfers between bases.

The modal shift conversion rate in fiscal 2021 was 22%.

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 with the target of increasing the global renewable energy usage rate to 10% in 2025.

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, factories and offices at Daikin Europe N.V., AAF (UK), Daikin Device Czech Republic s.r.o., and Daikin Applied Europe have started using green electricity.

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 2021, we expanded the use of green electricity in the U.S. Following the green power purchase by Goodman Manufacturing Company, L.P.^* the previous fiscal year, Daikin Applied Americas, Inc. also started to purchase green power. Moreover, we started to expand solar power generation in Thailand and Malaysia, as well as moved forward with plans to introduce solar power generation in China.

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Renamed Daikin Comfort Technologies North America, Inc. as of April 1, 2022.