Daikin Industries

InfluenceMap Score
C+
Performance Band
74%
Organisation Score
55%
Relationship Score
Sector:
Industrials
Head​quarters:
Osaka, Japan
Official Web Site:
Wikipedia:

Climate Lobbying Overview: Daikin conducts active policy engagement in a range of countries globally, with broadly positive positions. The company appears supportive of climate action in its top-line messaging and has actively promoted the tightening of energy efficiency and GHG emission standards in Europe, Asia and the Americas. However, Daikin retains memberships to industry associations which have lobbied against ambitious climate policy such as Keidanren and Japan Electrical Manufacturers’ Association (JEMA).

Top-line Messaging on Climate Policy: Daikin has a positive position on climate science. Daikin dedicates several pages on its website to detailing clear and transparent positions on climate change science, such as its CSR and environment page and another on carbon neutrality accessed in July 2022. Daikin’s CEO statement in the 2022 Sustainability Report, also communicated broad support for 2050 carbon neutrality. In its 2021 Sustainability Report published in October 2021, Daikin stated support for the Paris Agreement. In a joint letter on the Build Back Better Act in the United States in October 2021, Daikin appeared to support net zero GHG emissions in broad alignment with the IPCC science and directly advocated for robust climate provisions. In the February 2022 joint letter on the Build Back Better Act, Daikin recognized the need for urgent action to combat climate change. In July 2022, Daikin signed a C2ES-organized advertisement that advocated for Congress and President Bidden to enact climate investments through reconciliation.

Engagement with Climate-Related Regulations: Daikin appears to have engaged positively on a number of climate policies globally. On its website and in its 2022 Sustainability Report, Daikin disclosed in detail how it engages with a number of climate change policies. Daikin has actively advocated for, and has been involved in the development of, energy efficiency standards around the world. On its website as of July 2022, Daikin stated support for METI's Zero Energy Building (ZEB) target of net zero energy consumption in all new buildings in Japan by 2030. In its 2022 Sustainability Report, Daikin disclosed its engagement with policymakers in Saudi Arabia and the UAE in 2021 on policies for energy efficiency in air conditioners in the Middle East and Africa; Daikin also said that ASEAN introduced an energy saving performance standard because of its advocacy. According to its 2021 Sustainability Report, Daikin worked with the Indian government to introduce an energy labeling system for improving the efficiency of air conditioners. The company disclosed that it advocated for energy efficiency standards in Brazil, in its CDP 2021 Climate Change response. In its 2020 CDP disclosure, Daikin stated its support for the tightening of the Energy Transition Law and related energy efficiency standards in Mexico. In February 2022, Daikin co-signed a C2ES joint letter advocating for the clean energy tax credits in the Build Back Better Act in the United States.

As reported by Nikkei in September 2021, Daikin appeared to support a carbon tax on fossil fuels in Germany, to accelerate the use of heat pumps.

Positioning on Energy Transition: Daikin appears to support policies to facilitate the energy transition. At the company Investor Conference in December 2021, the company stated high-level support for increasing renewables in the global energy mix, with a particular focus on solar energy. During this conference, Daikin also expressed active support for US President Biden’s policy to promote the use of heat pumps and decarbonize the building sector. In September 2021, Nikkei reported on Daikin’s active support for regulations and incentives to decarbonize the energy sector including the European Green Deal. Daikin disclosed this position in its 2022 Sustainability Report, where it stated support for the EU Green Deal policies, subsidies and rebates for accelerating and expanding the European market for heat pumps.

In an August 2022 interview to the Nikkei, Daikin Chairman supported the European regulatory measures to switch from gas boilers to heat pumps as part of its measures to reduce dependence on Russian gas.

Industry Association Governance: Daikin has a dedicated page on its corporate website for disclosing its engagement with industry associations, but the page does not provide the full list of memberships, nor details of each organization’s climate change policy positions. Daikin has not published a review of its alignment with its industry associations on climate policy.

Daikin retains direct membership of Japan Business Federation (Keidanren) and the Japan Electrical Manufacturers’ Association (JEMA), which have lobbied negatively and actively on many strands of climate change and energy regulation in Japan. It is also a member of the environmental committee of the Japan Association of Corporate Executives (Keizai Doyukai), which has called for an ambitious 2030 renewable energy target in Japan.

InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q3 2022.

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DATA SOURCES
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
70%
 
70%
 
48%
 
48%
 
60%
 
60%
 
49%
 
49%
 
44%
 
44%
 
50%
 
50%
 
62%
 
62%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.