Daikin

Daikin Climate Commitments and Emissions Overview

Daikin, a Japanese-based company operating in the machinery and equipment sector, has established robust climate commitments, aiming for net-zero greenhouse gas emissions by 2050 across its value chain. The company has set ambitious near-term targets, including a commitment to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 46.2% by FY2031, using FY2020 as a baseline. Furthermore, Daikin aims to reduce Scope 3 GHG emissions by 55% per JPY value added within the same timeframe.

Emissions Data:

• 2025: Daikin reported a total of approximately 281.5 billion kg CO2e. Scope 1 emissions were approximately 513.7 million kg CO2e, and Scope 2 emissions (market-based) were approximately 365.5 million kg CO2e. Scope 3 emissions, which are significantly larger, totalled approximately 272.4 billion kg CO2e, with the largest contributions from the use of sold products (approximately 234.6 billion kg CO2e) and the end-of-life treatment of sold products (approximately 41.7 billion kg CO2e).
• 2024: Total emissions were approximately 313.1 billion kg CO2e. Scope 1 emissions were around 514 million kg CO2e, and Scope 2 (market-based) were approximately 366 million kg CO2e. Scope 3 emissions amounted to roughly 312.2 billion kg CO2e.
• 2023: Total emissions were approximately 329.6 billion kg CO2e. Scope 1 emissions were approximately 524 million kg CO2e, with Scope 2 (market-based) at about 407 million kg CO2e. Scope 3 emissions were approximately 328.6 billion kg CO2e.
• 2022: Daikin's total emissions were approximately 338 billion kg CO2e. Scope 1 emissions were around 547 million kg CO2e, and Scope 2 (market-based) were approximately 484 million kg CO2e. Scope 3 emissions were approximately 336.9 billion kg CO2e.
• 2021: Total emissions were approximately 335.4 billion kg CO2e. Scope 1 emissions were around 600 million kg CO2e, with Scope 2 (market-based) at about 557 million kg CO2e. Scope 3 emissions totalled approximately 334.2 billion kg CO2e.
• 2020: Total emissions were approximately 306.6 billion kg CO2e. Scope 1 emissions were approximately 550 million kg CO2e, and Scope 2 (market-based) were approximately 510 million kg CO2e. Scope 3 emissions were approximately 305.6 billion kg CO2e.
• 2019: Total emissions were approximately 329.3 billion kg CO2e. Scope 1 emissions were approximately 687 million kg CO2e, and Scope 2 (market-based) were approximately 636 million kg CO2e. Scope 3 emissions were approximately 328 billion kg CO2e.
• 2018: Scope 1 emissions were approximately 603.6 million kg CO2e, and Scope 2 (market-based) were approximately 615 million kg CO2e. Scope 3 emissions were approximately 296.8 billion kg CO2e.

Reduction Initiatives and Targets:

Daikin has a history of setting and achieving reduction targets. Notably, the company achieved a 70% reduction in greenhouse gas emissions by fiscal year 2020 compared to fiscal year 2005, reducing emissions to 1.08 million tonnes-CO2e.

Current and future commitments include:

• Near-Term Targets:
  • Achieve carbon neutrality by 2030 for Scope 1 and Scope 2 emissions.
  • Reduce Scope 1 emissions by 30% from 2020 levels by 2030.
  • Reduce Scope 2 emissions by 25% from 2020 levels by 2030.
  • Reduce net GHG emissions by at least 30% by 2025 and 50% by 2030, using 2019 as a base year.
  • Reduce GHG emissions by 40% compared to fiscal year 2015 by fiscal year 2025.
• Long-Term Targets:
  • Achieve net-zero greenhouse gas emissions across the value chain by 2050.
  • Reduce absolute Scope 1 and 2 GHG emissions by 90% by FY2050 from a FY2020 base year.
  • Reduce absolute Scope 3 GHG emissions by 90% by FY2050.

These targets are aligned with the Science Based Targets initiative (SBTi), indicating a commitment to emissions reductions consistent with limiting global warming to 1.5°C.