Response to Climate Change
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.
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.
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%.
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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