DAIKIN

Corporate social responsibilities

Fec assignment
About DAIKIN

 World leading air conditioning company

 One of the top refrigeration companies
 Chemicals
 Filters
 Corporate governance policies

•Basic Policy of Corporate Governance: The role of corporate governance in the Daikin
Group is to raise corporate value. This is achieved by continued vigilance on increasing the
speed, transparency, and soundness of decision making and implementation

•Management and Operational Execution Systems: Daikin has already implemented all
the principles contained in the revisions of June 1, 2018, including “enhancing information
disclosure,” “maintaining the effectiveness of the Board of Directors and the Audit and
Supervisory Board,” “defining roles and responsibilities of independent external directors,” and
“the policy of having constructive dialogue with shareholders.” Going forward, Daikin will
continue to enhance these initiatives.

•The Group has introduced an “executive officer system” to accelerate the speed of execution
based on autonomous judgments and directions in units handling each region, division, and
function.
 Corporate governance policies

•Agile Management Support System: In addition, to respect and protect the interests of
diverse stakeholders other than stockholders, Daikin has, based on the Board of Directors,
established its Internal Control Committee, Corporate Ethics and Risk Management
Committee, Information Disclosure Committee, and CSR Committee.

•Evaluation of the effectiveness of the Board of Directors: Daikin analyzes and

evaluates the effectiveness and appropriateness of the Board of Directors and the corporate
governance system through interviews with the Directors and Corporate Auditors and
deliberations by the Board of Directors.

•Corporate Officer Renumeration: To ensure the transparent management of its corporate

officer personnel and remuneration processes, Daikin has established the HRM Advisory
Committee and the Compensation Advisory Committee.
 Corporate governance policies

•Group-Wide Governance : To meet governance needs on a Group-wide basis, including

M&A-related companies, Daikin holds meetings of the Group Steering Meeting to ensure the
thorough sharing of important management policies and basic strategies.

•Daikin’s three main management bodies are the Board of Directors, the Group Steering
Meeting, and the Executive Officers Meeting and they secure expeditious decision making
based on substantial discussion and keeping the number of directors at a minimum.
Corporate Governance structure
Value creation for the planet

Reduce environmental impact through all business activities and contribute to alleviating
climate change
 Further raise the environmental performance of products
 Make effective use of resources
 Protect forests and help sustain their inherent functions
Establishing key CSR themes

 Understanding stakeholders concerns and impacts

 Accessing the impact of our business on society throughout the entire value chain
DAIKIN’S CSR themes
Fundamentals in Governance
Overview of environmental impact
of business studies
 Environmentally conscious 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
 Goals to solve environment issues

 Achieving Growth by Contributing to

Solving Social Issues
 Endorsement of the TCFD
Recommendations
 Business Creation Using Open Innovation
 Acting as a Good Member of Society
Promoting Energy efficiency
standards
Air Conditioning Solutions Using IoT
and AI

 Testing a Balance between Increased Intellectual Productivity and Comfort with

Effective Temperature Stimulus
 Address Various Regional Needs

 Supplying Localized Products at the

Right Prices Using Base Models and
Localized Development
 With operations in over 150 countries
around the world, Daikin not only
establishes plants close to markets,
but also hires and fosters engineers
locally in each region, thereby
enhancing product development
capabilities.
Environmental vision of 2050