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PERFECTING THE AIR TOP
Through Perfecting the Air, Daikin strives to make the world’s spaces happier and more comfortable.
- Air Conditioning & Refrigeration
Daikin leverages its experience and technology to deliver air conditioning solutions that meet the demands of any setting.
- Products
Environmental Management
Environmental Risks and Opportunities
In 2018, we deduced environment-related risks and opportunities pertinent to our company, including climate-related risks. The process involved taking in feedback and opinion from experts within and outside of the company, based on prediction of the society in year 2050.
The deducted environment-related risks and opportunities are evaluated, organized, and analyzed from the two viewpoints of degree of impact on business and likelihood of occurrence. Based on this, environmental issues that our group company must pay attention to for year 2030 have been drawn.
Among environment-related risks and opportunities, Daikin takes measures in accordance with TCFD recommendations and discloses information in dealing with climate change because it considers this to be the issue with the greatest impact on its management.
Related Information
Environment-related risks and opportunities and potential impact
| Category | Impact on Daikin's business | Probability of occurrence | Potential financial impact | |
|---|---|---|---|---|
| Climate related | ||||
| Risks | Transition | Stricter regulations on refrigerants If regulations on refrigerants become too strict, there is a possibility that existing air conditioners no longer compliant with these regulations will become obsolete |
High | Large |
| Tight supply and demand for electricity There is a possibility that the spread of air conditioners in emerging countries will increase electricity usage and make it difficult to increase sales of air conditioners due to electricity shortages |
High | Large | ||
| Physical | Production delays due to water shortage Production bases located in areas of high water stress face the potential risk of disruptions in production due to the shortage of water necessary for production processes |
Medium | Medium | |
| Opportunities | Transition | Stricter regulations on refrigerants Companies without technologies compliant with regulations on refrigerants will be weeded out, resulting in increased sales of air conditioners using refrigerants with lower global warming potential, which is our strength |
High | Large |
| Stricter regulations on energy efficiency Companies without technologies compliant with stricter regulations on energy efficiency will be weeded out, resulting in increased sales of air conditioners with high energy efficiency, which is our strength |
High | Large | ||
| Stricter regulations on the use of fossil fuels Regulations on the use of fossil fuels continue to become stricter, and since gas-combustion heating will be subject to them, there will be an increase in sales on growing demand for heat-pump heating, which is our strength |
High | Large | ||
| Environment-related other than climate-related | ||||
| Risks | Enhanced regulation on the use of plastics Demand (regulation) created for reducing plastics usage as the demand for sustainable use of plastics increases |
High | Medium | |
| Depletion of raw material resources Resources for raw material deplete, affecting business operation |
High | Large | ||
| Environmental pollution from production bases Chemical substance management at production bases not functioning, and harmful substances released causing regional environmental pollution |
Medium | Small | ||
| Conservation of ecosystem Response demanded as a member of the society to address the losing balance of the ecosystem |
Medium | Small | ||
| Opportunities | Increased awareness toward air quality As air pollution becomes more serious, the needs for quality air increases |
High | Large | |
Identification, evaluation and management process of environment-related risks and opportunities
We gather information on environment-related risks and opportunities, including those related to the climate, from business bases of each region around the world. Information gathered is then evaluated, organized and analyzed for their degree of impact on business and likelihood of occurrence, and used for identifying climate-related risks and opportunities of important relevant to our Group. The program policy and measure to address these risks and opportunities are then developed and deliberated by the CSR Committee, followed by proposal to the President and CEO and report to the Board of Directors.
Program policy and measures are reflected in the mid-term management plan, and carried out at each business division.
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