Daikin

Daikin’s core business is in manufacturing energy-efficient air conditioning and refrigeration equipment including air conditioners, heat pumps, air purifiers and water boilers for both commercial and residential use. The company also produces chemical products including refrigerants used in air conditioning systems, as well as a small business selling hydraulic equipment for industrial machinery. Its chemical business supplies products used in the renewable energy, battery and healthcare sectors. Daikin is headquartered in Japan with a large footprint across North America, Asia, Oceania, the Middle East and Africa.

Objective

Progress on net zero carbon targets and strategy.

Background/issue

WHEB has been engaging Daikin on the topic of carbon via the CA100+ for several years now. Through this initiative, we have seen success with the company setting a net zero carbon emissions target of 2050.¹

Actions

In 2022 we continued work done the year before that focused on strengthening the quality of the company’s strategy for achieving this target. Specifically, within this workstream, WHEB was involved in discussions with CA100+ on engagement tactics, requesting disclosure of targets by scope and requesting a report on lobbying activities and product development. We also suggested how to refine and improve the strategy.

Outcomes

Partially successful/Milestone 2: This ongoing dialogue with Daikin has been effective in achieving progress and enriched our understanding of the challenges the company faces. For example, Daikin is limited in its ability to influence Scope 3, but is working to promote inverter-enabled AC systems which allows great energy efficiency. The company has also co-established the GX public/private collaborative working group for accelerating action on climate, which we hope to learn more about in further conversations, particularly where activity is policy-related.