Professional Documents
Culture Documents
2017
-Web version-
Sustainability Report
Third-Party Verification ………………………………………………………………………………………………………………… 353
Method of Calculating Greenhouse Gas Emissions Data ………………………………………………………………… 356
Data ………………………………………………………………………………………………………………………………………… 360
Guidelines ………………………………………………………………………………………………………………………………… 376
GRI Sustainability Reporting Standards 2016 ………………………………………………………………………………… 376
Honors for Daikin ………………………………………………………………………………………………………………………… 401
To ensure reliability of the content of this report, the Daikin Group had a third‒party verification
conducted for data on greenhouse gas emissions, water use, and wastewater.
Data Covered by Verification
Environmental Impact Data on Business Operations in FY2016
Scope 1 and Scope 2 greenhouse gas (GHG) emissions from business operations of four
production bases in Japan of Daikin Industries, Ltd., eight production subsidiaries in Japan, and
47 production subsidiaries overseas.
Category 1 (purchased goods and services), 4 (upstream transportation and distribution), 6
(business travel), and 11 (use of sold products) emissions of Scope 3 GHG emissions calculated
in line with the GHG Protocol’s ‘Corporate Value Chain (Scope3) Accounting and Reporting
Standard.’
Scope of Review
Contribution to CO2 Emission Reduction through the Use of Products
Contribution to CO2 emission reduction through the use of inverter air conditioners sold in
emerging countries in fiscal 2016.
Contribution to CO2 emission reductions through the use of air conditioners sold in
industrialized countries in fiscal 2016.
Contribution to greenhouse gas emission reductions through fiscal 2016 worldwide sales of air
conditioners that use HFC‒32 low‒global‒warming potential refrigerant.
Method of Calculating Greenhouse Gas Emissions Data (Page 356)
Pages focusing on environmental performance information and social performance indicators can
be found here.
Figures not included here should be assumed to be the actual results for the fiscal year (April to
March of the following year).
Companies covered by data:
D Daikin Industries, Ltd. JG Including group in Japan OG Overseas group companies only
OJG Including group companies in Japan and overseas
Environment
Low‒Impact Products
Environmentally Conscious Products* as Percentage of Net Sales (residential air conditioners)
OJG (%)
2016
Environmentally Conscious Products 74
Super Green Products 43
Green Products 31
Other products 26
* Environmentally conscious products: Name for Super Green Products and Green Products
Products that satisfy all of the conditions below are Super Green Products. Products that satisfy at least one of
the conditions are Green Products.
• Consume at least 30% less electricity than conventional products
Example: Air conditioners equipped with inverters
• Use refrigerants with at least two‒thirds less global warming potential than conventional refrigerants
Example: Air conditioners using HFC‒32, a refrigerant with lower global warming potential
Low‒Impact Production
Greenhouse Gas Emissions (Production)*1 OJG NOTE *2 (Thousand tons‒CO2)
2005 2010 2015 2016
Energy‒induced 660 710 830 780
CO2
HFC 1,190 390 470 360
PFC 3,400 1,130 480 430
Total 5,250 2,230 1,780 1,570
*1 The scope of calculations and the calculation method were revised in formulating the 2020 Environmental Action
Plan.
*2 Fiscal 2015‒2016 values were verified by a third party.
Energy‒induced CO2 Emissions per Unit of Production* OJG
Standard value 2016
(average for fiscal 2013‒2015)
Japan 160 160
Emissions (Thousand tons‒CO2) Overseas 500 510
Total 670 670
Japan 100 97
Unit with standard value set at Overseas 100 92
100 (%)
Total 100 93
* Because the scope of calculations and the calculation method were revised in formulating the 2020 Environmental
Action Plan, the past fiscal year values were retroactively corrected.
CO2 Emissions per Sales from Transportation (Air‒conditioning) D (%)
2012 2013 2014 2015 2016
CO2 emissions
per sales with 68 67 65 63 62
FY2001 set as
100%
Water Intake per Unit of Production* OJG
Standard value 2016
(average for fiscal 2013‒2015)
Japan 1,850 1,790
Water Intake (Thousand m )3 Overseas 4,430 4,720
Total 6,280 6,510
Japan 100 94
Unit with standard value set at Overseas 100 97
100 (%)
Total 100 96
* Because the scope of calculations and the calculation method were revised in formulating the 2020 Environmental
Action Plan, the past fiscal year values were retroactively corrected.
Emissions per Unit of Production(total of PRTR substances and VOCs)* OJG
Standard value 2016
(average for fiscal 2013‒2015)
Japan 479 510
Emissions (tons) Overseas 1,125 1,428
Total 1,603 1,938
Japan 100 91
Unit with standard value set at Overseas 100 103
100 (%)
Total 100 98
* Because the scope of calculations and the calculation method were revised in formulating the 2020 Environmental
Action Plan, the past fiscal year values were retroactively corrected.
Emissions per Unit of Production* OJG
Standard value 2016
(average for fiscal 2013‒2015)
Japan 28,700 28,300
Emissions (tons) Overseas 84,700 92,900
Total 113,400 121,200
Japan 100 91
Unit with standard value set at Overseas 100 96
100 (%)
Total 100 95
* Because the scope of calculations and the calculation method were revised in formulating the 2020 Environmental
Action Plan, the past fiscal year values were retroactively corrected.
Amount of Packaging Used Per Product (wood, cardboard, Styrofoam, etc.)* D (%)
2012 2013 2014 2015 2016
Amount of
Packaging Used
Per Product with 98 97 96 95 93
FY2010 set as
100%
* Covers residential air conditioners for the Japanese market
New Value Creation
Number of Patent Applications D
2011 2012 2013 2014 2015
Japanese 686 898 1,136 948 787
applications
Overaseas 202 378 344 344 329
applications
Customer Satisfaction with After‒Sales Service* D
2012 2013 2014 2015 2016
Overall 4.07 4.06 4.10 4.05 4.13
satisfaction
* Results from surveys sent to a random sampling of customers within two weeks after a Daikin product is fixed. A
weighted average of a five‒stage assessment.
Human Resources
Employees
Employee Composition (Data for Daikin Industries, Ltd.) (Note: Number currently employed) D
As of end of As of end of As of end of As of end of As of end of As of end of
March 2012 March 2013 March 2014 March 2015 March 2016 March 2017
Men Women Men Women Men Women Men Women Men Women Men Women
Number of 6,774 1,025 6,810 1,084 6,839 1,151 6,844 1,189 6,896 1,232 6,896 1,232
employees
Average range of 16.5 10.4 16.4 10.3 16.6 10.3 16.7 10.5 17 11 16.9 10.8
services (years)
Average age 41.7 35.1 41.6 34.6 41.5 34.5 41.3 33.8 41 34 40.9 34.1
Number of 939 21 951 22 957 29 984 36 1,013 47 1,013 47
managers
Number of board 47 1 47 1 46 1 48 1 49 1 49 1
members
Number of 38 20 38 20 47 29 52 21 48 25 48 25
foreign nationals
Note: Includes employees on loan
Note: Figures as of fiscal year‒end
Number of Women Periodically Hired; Percentage of All Employees D
2012 2013 2014 2015 2016
Men 215 170 179 174 187
Women 60 92 80 83 86
Total 275 262 259 257 273
Women as % of all 21.8% 35.1% 30.9% 32.3% 31.5%
employees
Note: Number of people joining the company on April 1
Number of Overseas Bases Where Local Nationals are President and Executives OG
2013 2014 2015 2016
Number of Bases Where Local Nationals 37 40 42 46
are Presidents and Executives
Number of Overseas Bases Where Local 27 31 31 33
Nationals are President
Number of Overseas Bases Where Local 59 63 63 71
Nationals are Executives
Percentage of Overseas Bases Where Local Nationals are President and Executives OG (%)
2013 2014 2015 2016
Percentage of Overseas Bases Where 40.9 53.4 50.8 52.4
Local Nationals are President
Percentage of Overseas Bases Where 43.4 45.7 46.7 50.0
Local Nationals are Executives
Number of Re‒employed Workers and Percentage of Re‒employed after Retiring D
2012 2013 2014 2015 2016
Men Women Men Women Men Women Men Women Men Women
Number of 170 7 136 4 105 6 123 7 97 3
retirees
Number of re‒ 150 6 120 4 96 6 103 5 88 3
employed workers
Percentage re‒
employed after 88.1% 88.6% 91.9% 83.1% 91.0%
retiring
Number of People with Disabilities Employed and Employment Rate JG
2012 2013 2014 2015 2016
Number of people
with disabilities 287 294 297 303 308
employed*1
Employment 2.34 2.07 2.19 2.15 2.19
rate*2
*1 Legally, one severely disabled person employed is counted as two people with disabilities.
*2 Employment rate = number of people with disabilities employed / number of people employed
Note: Figures as of fiscal year‒end
Work‒Life Balance
Number Taking Leave Before and After Child Birth and Employees Taking Childcare Leave D
2012 2013 2014 2015 2016
Number taking
leave before and Women 48 69 71 85 86
after child birth
Men 93 120 130 128 178
Number taking Women 68 88 101 112 136
childcare leave
Total 161 208 231 240 314
Number Taking Family Care Leave D
2012 2013 2014 2015 2016
Number taking Men 2 2 2 0 1
family care leave Women 1 1 1 0 0
Total 3 3 3 0 1
Percentage of Employees Taking All Paid Leave D (%)
2012 2013 2014 2015 2016
Percentage of
Daikin Industries, 92.9 94.4 94.8 94.8 96.7
Ltd. employees
Percentage of
Japanese workers
in the
manufacturing
industry 56.5 57.6 58.7 54.7 55.4
(according to
Ministry of Health,
Labour and
Welfare)
Periodic Health Checkup Results D (%)
2012 2013 2014 2015 2016
% of employees 97 97 98 99 99
taking checkup
% of employees
requiring 50 61 53 72 69
treatment
Compensation, Salary
Executive Compensation D
2012 2013 2014 2015 2016
Number 13 12 13 12 15
Directors Amount of
compensation 823 979 1,185 1,284 1,262
(¥ million)
Audit & Number 4 6 4 5 5
Supervisory Board Amount of
Member compensation 89 89 90 94 94
(¥ million)
Number 17 18 17 17 20
Total Amount of
compensation 913 1,069 1,275 1,378 1,356
(¥ million)
Note: About compensation amounts
For fiscal 2012, the compensation amount for the term of office of one director who retired is included.
For fiscal 2013, the compensation amount for the term of office of two auditors who retired is included.
For fiscal 2014, the compensation amount for the term of office of one director who retired is included.
For fiscal 2015, the compensation amount for the term of office of one auditor who retired is included.
For fiscal 2016, the compensation amount for the term of office of one auditor and four director who retired is
included.
Starting Salary D (yen)
2012 2013 2014 2015 2016
University grad 215,000 220,000 225,000 225,000 225,000
Masters 234,800 239,800 244,800 244,800 244,800
PhD 258,800 263,800 268,800 268,800 268,800
Note: Figures are those during April of each year.
Communities
Donations OJG (%)
2013 2014 2015 2016
Environmental protection 32 34 44 24
Educational support 11 31 17 27
Sports, art, 13 15 18 18
culture
Local
Living in harmony communities, 34 12 12 22
with communities welfare, others
International 6 5 8 5
exchange
Disaster relierf 4 2 0 5
Consolidated Sales by Region (%)
2012 2013 2014 2015 2016
Japan 38.3 28.9 26.0 24.6 25.4
China 18.2 18.1 18.5 17.1 16.1
Asia and Oceania 14.4 13.4 14.2 14.9 14.8
Europe, Middle 18.4 16.9 15.8 16.7 16.3
East, and Africa
North America, 10.7 22.7 25.5 26.7 27.4
Latin America
Net Sales (¥ billion)
2012 2013 2014 2015 2016
Consolidated 1,290.9 1,787.7 1,915.0 2,043.7 2,044.0
Non‒consolidated 462.7 503.7 477.6 500.4 505.6
Total Assets (¥ billion)
2012 2013 2014 2015 2016
Consolidated 1,735.8 2,011.9 2,264.0 2,191.1 2,356.1
Non‒consolidated 1,140.1 1,264.8 1,346.7 1,308.3 1,363.9
Ordinary Profit (¥ billion)
2012 2013 2014 2015 2016
Consolidated 94.1 155.6 194.2 209.5 231.0
Non‒consolidated 35.7 44.6 75.7 86.5 141.5
Fiscal Year End Stock Prices (yen)
2012 2013 2014 2015 2016
Fiscal year end 3,690 5,782 8,046 8,412 11,185
stock prices
Dividends (yen)
2012 2013 2014 2015 2016
Dividends 36 50 100 120 130
Breakdown of Shareholders
2012 2013 2014
Number As % of all Number As % of Number As %
of Shares held share‒ of all
of Shares held all share‒ of Shares held share‒
voters holders voters holders voters holders
Financial 137 133,897,630 45.7% 139 124,217,630 42.4% 146 128,490,830 43.8%
institutions
Securities 69 6,489,682 2.2% 84 10,276,183 3.5% 79 7,541,543 2.6%
companies
Other 580 29,567,732 10.1% 558 33,388,138 11.4% 516 33,322,051 11.4%
corporations
Foreign 478 94,612,756 32.3% 586 104,370,042 35.6% 672 105,460,144 36.0%
corporation
Individuals, 40,398 28,546,173 9.7% 33,431 20,861,980 7.1% 28,443 18,299,405 6.2%
other
Total 41,662 293,113,973 100.0% 34,798 293,113,973 100.0% 29,856 293,113,973 100.0%
2015 2016
Number of Shares held As % of all Number of Shares held As % of all
voters shareholders voters shareholders
Financial 152 140,252,048 47.9% 152 136,770,197 46.7%
institutions
Securities 73 8,047,833 2.7% 68 5,602,113 1.9%
companies
Other 513 30,800,241 10.5% 490 29,974,441 10.2%
corporations
Foreign 689 97,020,517 33.1% 828 106,279,164 36.3%
corporation
Individuals, other 27,500 16,993,334 5.8% 22,608 14,488,058 5.0%
Total 28,927 293,113,973 100.0% 24,146 293,113,973 100.0%
Dividends to Shareholders Equity (%)
2012 2013 2014 2015 2016
Dividends to
shareholders 35.6 39.9 45.3 46.3 47.2
equity
Business / Financial Data (Consolidated)
2012 2013 2014 2015 2016 2017
Years ended Years ended Years ended Years ended Years ended
March 31, 2013 March 31, 2014 March 31, 2015 March 31, 2016 March31, 2014 (Forecast)
Net Sales 1,290.9 1,787.7 1,915.0 2,043.7 2,044.0 2,190.0
(¥ billion)
Operating Income 88.6 156.5 190.6 217.9 230.8 243.0
(¥ billion)
Ordinary Income 94.1 155.6 194.2 209.5 231.0 242.0
(¥ billion)
Net Income 43.6 92.8 119.7 137.0 153.9 160.0
(¥ billion)
Earnings Per 149.73 318.33 410.19 469.23 526.81 547.24
Share (yen)
Overseas 62 71 74 75 75 ‒
Business Ratio (%)
Free Cash Flow 35.7 86.9 60.2 78.3 52.3 ‒
(¥ billion)
Return on Assets 3.5 4.9 5.6 6.3 6.8 ‒
(%)
Return on Equity 7.8 13.1 13.1 13.4 14.5 ‒
(%)
Shareholders' 35.6 39.9 45.3 46.3 47.2 ‒
Equity Ratio (%)
Plant‒and‒
Equipment 54.3 59.4 784 112.7 90.3 ‒
Investment
(¥ billion)
Reseach &
Development 33.6 40.2 52.8 46.1 53.9 ‒
Costs
(¥ billion)
Liability with 40.7 34.5 29.3 27.8 25.9 ‒
Interest Ratio (%)
GRI Sustainability Reporting Standards 2016
This page contains information on the standard disclosure items of the GRI Sustainability Reporting
Standards 2016.
Until fiscal 2015, the Daikin Group stipulated and took action on four key CSR themes —the
environment, quality and customer satisfaction, human resources, and social contribution—on which
it based its medium‒ and long‒term CSR targets and plans. The table below shows the relationship
between these CSR targets and plans and aspects of the standard disclosure items designated in
the G4 guidelines.
CSR targets and plans for fiscal 2016 onwards are currently being formulated.
For details on materiality identification in the Daikin Group, see CSR Management. (Page 36)
Relationship Between Key Daikin Group CSR Themes and Aspects of Standard Disclosure Items
of the GRI Sustainability Reporting Standards 2016
Key CSR Medium‒term CSR Goals Boundaries GRI Why the Aspect
Themes and Plans (by Fiscal 2015) (of impact) Themes is Material
Environment
Providing the World with Products That Help Customers Reduce CO2 Emissions
• Disseminating
inverter
products • Through expansion in the
• Disseminating widespread use of energy‒
saving products such as those Focusing on air conditioners, which
heat‒pump have an environmental impact through
type heating using inverters, aim to help
curtail CO2 emissions by 30 Group• Daikin GRI 305: the large amounts of electricity they
systems million* tons for emerging Emissions consume, and fluorocarbon
countries. • GRI 302: refrigerants, which have an impact on
• Offering Consumers Energy climate change, Daikin is developing
energy‒saving • Disseminate of air
conditioners using the low and releasing products and services
solutions global warming potential that reduce these impacts.
• Developing refrigerant HFC‒32.
future
refrigerants
Water
Disclosure Water withdrawal by source GC
303‒1 principle 6.5.4
7, 8
Disclosure Water sources significantly affected GC principle 6.5.4 Water Resource
303‒2 by withdrawal of water 8 Reduction
Disclosure Water recycled and reused GC
303‒3 principle 6.5.4
8
Biodiversity
Operational sites owned, leased,
Disclosure managed in, or adjacent to,
protected areas and areas of high
GC
principle 6.5.6 ‒
304‒1 biodiversity value outside protected 8
areas
Disclosure Significant impacts of activities,
products, and services on
GC
principle 6.5.6 Protecting
304‒2 biodiversity 8 Biodiversity
Disclosure Habitats protected or restored GC Protecting
304‒3 principle 6.5.6 Biodiversity
8
IUCN Red List species and national GC
Disclosure conservation list species with principle 6.5.6 ‒
304‒4 habitats in areas affected by 8
operations
Disclosure Nitrogen oxides (NOx), sulfur oxides
(SOx), and other significant air
GC
principle 6.5.3
Overview of
Environmental
305‒7 emissions 7, 8 Impact
Awards for 2016
Overall CSR (Including SRI)
Daikin Group
Chosen for inclusion in the SNAM Sustainability Chosen for inclusion in the Morningstar
Index Socially Responsible Investment Index.
Chosen for inclusion in the MSCI Global Chosen for inclusion in the MSCI Japan ESG
Sustainability Indexes. Select Leaders Index
Chosen for inclusion in the MSCI Japan
Empowering Women Index (WIN)
Product Honors
Daikin Industries, Ltd. Daikin Air‒Conditioning (Shanghai) Co., Ltd.
Awarded the Minister’s Prize, the Ministry of Won the “Shanghai Quality Award” from the
Economy, Trade and Industry in the 2016 Shanghai municipal government.
Energy Conservation Grand Prize, for the
Retrofit System maintenance service.
Awarded the Chairman Prize of Energy
Conservation Center, Japan (ECCJ) in the 2016
Energy Conservation Grand Prize, for residential
multi‒split‒type air conditioners that can connect
with floor heating.
Awarded the Chairman Prize of Energy
Conservation Center, Japan (ECCJ) in the 2016 Daikin Air‒Conditioning Technology
Energy Conservation Grand Prize, for improving (Shanghai), Ltd.
air conditioner energy efficiency using IoT in
senior citizens’ homes. Won an “Outstanding Call Center Award” in
prizes sponsored by 51Callcenter.
Awarded the highest level of certification (L‒
boshi certification) from Japan’s Ministry of
Health, Labour and Welfare for being a
company that shows excellence in promoting
the talents of women in the workplace.
Management Honors
Daikin Industries (Thailand) Ltd. Daikin Europe N.V.
Won a 2016 Thailand Prime Minister Award (in The Ostende Plant was awarded a Factory of
the energy management category), sponsored the Future Award from Agoria, Belgium’s
by the Department of Industrial Works of largest employers’ association and trade
Thailand. association.
For the 2016 Sustainability Report, won the Another Voice Award (CSR report category) in the
UCDA Award 2016, sponsored by the Universal Communication Design Association).