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_ 01 Take action with the future of the earth in mind Environmental Report 2010 DAIKIN EUROPE N.V.

DAIKIN ENVIRONMENTAL REPORT 2010

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Page 1: DAIKIN ENVIRONMENTAL REPORT 2010

_ 01

Take action with the future of the earth in mind

Environmental Report 2010

DAIKIN EUROPE N.V.

Page 2: DAIKIN ENVIRONMENTAL REPORT 2010

Editorial policy Reporting period FY 2009:

Fiscal year 2009 (1 April 2009 till 31 March 2010)

Activities covered:

Manufacturing: Daikin Europe N.V., Daikin Industries Czech Republic s.r.o.

Sales: Daikin Europe N.V. and its affiliates

This report is also available on: http://www.daikin.eu/environment

If you are interested in learning more about Daikin’s worldwide environmental initiatives,

please consult the Daikin Industries Ltd. Corporate Social Responsibility (CSR) report and website.

This report can be downloaded at http://www.daikin.com/csr/report/index.html

Page 3: DAIKIN ENVIRONMENTAL REPORT 2010

Overview of Daikin Europe N.V. 04

Message from senior management 06

Environmental policy and objectives 07

ISO 14001 - A global environmental standard

for a global player 09

Environment Research Center:

turning challenge into opportunity 10

Environmental initiatives throughout

the product life cycle: 12

1. Manufacturing 14

2. Sales & supply 20

3. Use 26

4. End of life 36

Legislation 38

Contact list 39

Responsibly dealing

with waste 36

Residential applications 30

Commercial applications 32

Large commercial & industrial applications 35

Research & development 14

Procurement 16

Assembly 18

Sales activities 20

Supply 24

Page 4: DAIKIN ENVIRONMENTAL REPORT 2010

About Daikin Europe N.V.

Daikin Europe N.V. is the sales and manufacturing headquarters

for Europe, Africa and Middle East. As a 100% subsidiary of

Japan-listed Daikin Industries Ltd., its mission is to respond to

the evolving requirements of its clients for indoor comfort and

industrial process applications.

Daikin Europe N.V. sales area

Production facilities

Daikin Europe N.V. has wholly owned affiliates in the UK, Spain, Germany, Italy, France, Belgium, Greece, Portugal, Poland, Central Europe, South Africa, The Netherlands, Sweden, Turkey and UAE. It also includes a network of independent distributors throughout Europe, Africa and the Middle East and offices in Moscow, Dublin, Hamburg, Rotterdam and Dubai.

Overview of Daikin Europe N.V.

Page 5: DAIKIN ENVIRONMENTAL REPORT 2010

_ 05

5000

4500

4000

3500

3000

2500

2000

1500

1000

500

0

FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

Product range

For residential, commercial …

Daikin’s broad range of indoor comfort applications fully meets the needs of its residential and commercial customers. Daikin products

integrate unique technology, providing advanced solutions in the area of heating, cooling, refrigeration, ventilation, air purification,

humidification and dehumidification.

… and industrial applications

Daikin’s process applications (‘applied systems’) provide chilled or hot water with temperature tolerances to one tenth of a degree. Ideal

for critical industrial applications such as wineries, breweries, chocolate factories, plastic industries and greeneries, where the need for

precise temperature control is essential.

➥ At the end of March 2010, Daikin Europe N.V. achieved a consolidated turnover of 1,615 million Euro across more than 40 countries. ➥ In Europe, over 4,200 people are employed at Daikin Europe N.V., Daikin Industries Czech Republic and Daikin affiliates.

442 62

8

622 72

4

Turnover (million euro)

Manpower

849

2068

1404

2945

1258

3368

1526

3614

1925

4134

1752

1615

4341

4265

1330

1674 18

13

1790

2000

1500

1000

500

0 Turn

over

(mill

ion

euro

)

Man

pow

er

Page 6: DAIKIN ENVIRONMENTAL REPORT 2010

Message from senior management

Daikin Europe N.V. continued to prioritise its concern for the environment in all of its activities

during 2009. At Daikin, we fully realise that we must continue our efforts as corporate citizen to

develop innovative, energy-reducing technologies to help preserve our planet.

Focus on energy reduction prompted by new legislation

The last decade has seen the emergence of stringent regulations to combat global warming

and reduce energy consumption. So year after year, we continue to look for improvements

and opportunities to develop heating and cooling products that can lead to a further decrease

in energy consumption and CO2 emissions. That is why we continue to focus on R&D and the

opportunities this can present to the environment.

A specific example of the focus on energy reduction can be found in the recast version of

the Energy Performance of Buildings Directive. This new Directive states that all new buildings

should be nearly zero energy buildings by 2020. Daikin did not wait for this legislation to take

action. Together with a number of renowned European research institutes, we are setting up a

test project in Germany to equip a newly-built office building with renewable energy solutions

that include our heat pump technology and solar cells. This project is of paramount importance

in our continued efforts to take the lead in initiating green technology.

Environmental efforts: in all of us a green heart

Our care for the environment is not only reflected in the design of more energy efficient products.

We have also multiplied our efforts and actions to make our factories more energy-efficient.

We raise the awareness among our employees concerning energy use and the environmental

impact of their daily activities in the company and their role in relieving the burden on the

environment. All these efforts help to improve our ISO 14001 environmental management

system. It is a major effort to educate our stakeholders – affiliates, dealers, customers, etc. – on

the role they play in protecting our environment, but it is a task we are happy to assume.

Awards: quality indicators

Daikin products have won numerous awards again this year, proving that our systems are

among the best in the industry. In the UK, Daikin Altherma won two prestigious honours at

the Rushlight Awards 2009 in recognition of its contribution to renewable energy technology,

while VRV® III Heat Recovery and Biddle Air Curtains were elected Product of the Year by the

UK journal H&V News. Still in the UK, a major refurbishment project using Daikin Altherma air

source heat pumps and solar thermal renewable technologies won the National Energy Action

(NEA) award.

All of these topics and many more are covered in detail in this 2010 Environmental Report, which

we hope will encourage you to share our enthusiasm and eagerness for a more sustainable

environment.

Enjoy your reading!

Frans Hoorelbeke

Chairman

Daikin Europe N.V.

Masatsugu Minaka

President

Daikin Europe N.V.

Dear Reader,

Page 7: DAIKIN ENVIRONMENTAL REPORT 2010

Daikin Europe N.V. environmental policy

Preservation of the environment is a key priority for Daikin. The management of Daikin Europe N.V. commits itself to implementing the following principles:

1. Taking into account the total product life cycle, we will

design our products and processes to limit to a minimum

the use of energy and resources. This includes reducing

waste to a minimum, recycling waste and scrap where

possible, and limiting packaging waste.

2. Measures will be taken to efficiently manage refrigerant

and to stimulate the design and manufacture of refrigerant-

based products with a reduced environmental impact.

3. The necessary information and training will be given to

employees in order to continually realise these policy

objectives.

4. Our environmental management initiatives will be

communicated in such a way that all levels of the

organisation are well informed concerning its objectives

and application, and these efforts will be adapted when

necessary.

5. These environmental management initiatives will be

periodically evaluated via checks and audits in order to

continuously improve our environmental performance.

6. All Daikin products, processes and service will meet at least

the applicable legislation.

Environmental policy and objectives

_ 07

Page 8: DAIKIN ENVIRONMENTAL REPORT 2010

Daikin Europe N.V. environmental objectives

1. Use energy sustainably

Daikin Europe N.V. is constantly seeking ways to decrease the energy consumption

of its production facilities and to make use of sustainable energy sources.

2. Reduce environmental impact from refrigerants and improve the energy

efficiency of our products

Daikin Europe N.V. is committed to reducing the greenhouse gas emissions of its

products by reducing the impact of refrigerants and improving energy efficiency.

3. Increase product recycling and waste reduction

Daikin designs in recyclable materials at the product development phase making

use of the principles of Lansink’s ladder 1. This concern for recycling and waste

reduction continues through all phases of the product (production, transport and

logistics, installation, maintenance… ), up to and including responsibly dealing

with the product at the end of its useable life.

4. Manage chemical substances and preparations

Daikin Europe N.V. strives for optimum safety with respect to the handling and

storage of chemicals. This includes the search for newer and safer products to

replace existing technologies.

5. Develop products with reduced environmental impact

Daikin is committed to complying with all environmental legislation. In addition,

its green procurement guidelines further ensure that its products are state of the

art with respect to reduced environmental impact.

6. Continue efforts at European level

Daikin Europe N.V. continually adapts its environmental policy to the changing

global, European and local legislative frameworks. It stimulates and promotes the

strict application of all relevant legislation and formulates recommendations to

facilitate implementation.

7. Be a model of environmental responsibility

Daikin intends to be a model company by providing training and information on

the environmental impact of its activities. It supports and dialogues with external

organisations, its neighbours and the community at large, and is represented in

working groups within the relevant industries.

➥ 1 Lansink’s ladder: principles or methods of waste management established by a Dutch Member of Parliament – Ad Lansink – represented in a ladder with a number of rungs. The rungs represent a hierarchy of increasingly better ways to deal with waste in an environmentally responsible manner.

Environmental policy and objectives

➥ 1Lansink’s ladder: principles or methods of waste management established by a Dutch Member of Parliament - Ad Lansink - represented in a ladder with a number of rungs. The rungs represent a hierarchy of increasingly better ways to deal with waste in an environmentally responsible manner.

Page 9: DAIKIN ENVIRONMENTAL REPORT 2010

_ 9

ISO 14001: The standard within Daikin worldwide

ISO 14001, the widely recognised international standard for an Environmental

Management System (EMS), specifies requirements for drawing up and implementing

a policy to reduce the environmental impact of manufacturing processes, products

and services. An important aspect of ISO 14001 is continuous improvement in

environmental performance.

The global recognition of ISO 14001 made it the logical choice for Daikin Europe

N.V. We have been ISO 14001 certified since 1998 and our affiliated companies are

following.

“West-Vlaams Charter Duurzaam Ondernemen”: Setting an example

Daikin Europe N.V. is also a fully-fledged participant in the

“West-Flemish Charter for Sustainable Entrepreneurship”.

The programme includes environmental targets as

well as targets related to personnel management and

development. Participation is voluntary, but Daikin Europe N.V. remains committed to

the programme after 11 successive years of participation.

Patrick Snauwaert of General Affairs at Daikin Europe N.V. explains

our unique role in the Charter:

“Daikin has been a pioneer in environmental

improvement and sustainable entrepreneurship, and

wishes to set an example and share its expertise with

other companies via its participation in the Charter.

Daikin Europe N.V. is an important part of the West

Flanders business community and takes its exemplary

function seriously.”

ISO 14001 - A global environmental standard for a global player

February 2010 status

ISO 14001 certified year

Daikin Industries Ltd (Japan)

1996

Daikin Europe N.V. 1998Daikin France 2004Daikin Poland 2004Daikin Germany 2004Daikin Spain 2004Daikin UK 2004Daikin Belgium 2005Daikin Italy 2005Daikin Central Europe 2005Daikin Czech Republic 2006Daikin Portugal 2008Daikin Greece 2009Daikin South Africa 2009Rotex 2009Daikin Turkey 2009Daikin Netherlands 2010Daikin Sweden 2010

➥ ISO 14001 certification continuously improves Daikin’s environmental performance

Implementation & Operation

Management review

Environmental Policy

Planning

Checking

Continual improvement

: Planned

DUURZAAM ONDERNEMENWest-Vlaams CHARTER

Mens&

Milieu

Page 10: DAIKIN ENVIRONMENTAL REPORT 2010

The Environment Research Center (ERC) is home to the Environment Readiness Section (ERS) and Environment Application Research

Section (EARS). The coordination of these two activities allows Daikin Europe N.V. to stay on top of quickly evolving environmental

legislation, and market the right products to meet the environmental challenges of today and tomorrow. This way, Daikin can stay one

step ahead.

➥ Source: Daikin Europe N.V.’s estimation based on data such as Eurostat (reference year 2004)

Industry

Buildings

Transport

28%

31%41%

3% cooling

10-25%Hot water

20%Others

50-60% Heating

Energy-intensive buildings market

Buildings account for over 40% of EU energy consumption.

Especially space heating and hot water make up the lion’s share of

this energy usage. The pie chart shows there is a huge opportunity

for Daikin to decrease this consumption with its energy efficient

heating and cooling solutions.

European Union energy consumption

(primary energy)

Growing international concern for the environment has resulted in a steady increase in regulations and standards tackling environmental issues. These can mean risks to a business, but they mostly create opportunities. Daikin Europe N.V.’s Environment Research Center was established to make full use of these opportunities. A good example of this is the net Zero Energy Building project, a project that anticipates the 2008 recast of the Energy Performance of Buildings Directive.

Environment Research Center: turning challenge into opportunity

Review of the Energy Performance of Buildings Directive (EPBD)

Since buildings account for an important share of energy consumption (see above), it is no surprise that the EPBD has been recast to

further help achieve these savings. Originally conceived to establish minimum performance standards for buildings, the revised EPBD

goes further and stipulates that all commercial and residential buildings built after 2020 must produce at least the amount of energy

they consume on site. This concept is called ‘nearly Zero Energy Building’ (nZEB).

Page 11: DAIKIN ENVIRONMENTAL REPORT 2010

_ 11

Nearly zero energy building (‘nZEB’): optimising energy management

According to the EU definition, to qualify as a nearly zero energy building, a significant

amount of the building’s energy requirements must come from renewable sources,

produced on site or nearby. In addition, the nZEB building itself must be as energy

efficient as possible. Roughly speaking, there are two actions for reaching the nZEB

goals: greater energy efficiency in the form of improved insulation, air tightness and

ventilation; and the use of renewable energy such as solar, wind, aerothermal energy,

etc. To proactively contribute to meeting the above targets, Daikin Europe N.V. has

initiated a collaborative research project to construct a typical office building that

will have a net zero energy use, utilising heat pumps and solar cells to tap renewable

energy sources. The fact Daikin Europe N.V. has initiated a project on a net zero energy

building – which is more stringent than a nearly zero energy building - shows again

its eagerness to be one step ahead.

The project will be launched in Germany in the autumn of 2010. Daikin’s state-of-the-

art heat pump technology (see p. 27-28 for more details) will substantially reduce CO2

emissions compared to fossil fuel based heating concepts and will also significantly

reduce the amount of primary energy needed. In this, collaboration was sought with

major research and educational institutions in Europe to further optimise energy

reducing technologies. While a new building is being used for the project, Daikin also

intends to expand this type of project to include existing buildings.

“Daikin is taking its responsibility

seriously in the light of Europe’s

ambitious 20-20-20 targets2.

Our heat pump technology

can contribute significantly to

reducing energy consumption

in buildings and increasing the

use of renewable energy. Our

collaboration in setting up test

projects like the nZEB project in

Germany is only a first step. We

intend to set up test projects

in other countries as well,

combining new technologies

and further reducing energy

consumption.” 2 Europe’s 20 -20 -20 –targets: reduction of 20 % energy use, 20 % less CO2 emissions and 20% share of renewable energy by 2020

Ansgar Thiemann of Daikin Europe N.V.’s

Environment Application Research

Section on Daikin’s contribution to

decreasing energy consumption:

Page 12: DAIKIN ENVIRONMENTAL REPORT 2010

Environmental initiatives throughout the product life cycle

Daikin’s efforts to reduce its environmental impact start as early as the manufacturing stage, comprising of:

Research & development

Procurement

Assembly

While expanding its sales and supply activities, Daikin is working hard to raise awareness among its affiliates and their customers to help protect and conserve the environment:

Sales activities

Logistics

21 Manufacturing Sales & supply

Page 13: DAIKIN ENVIRONMENTAL REPORT 2010

_ 13

Environmental efforts don’t stop once Daikin Europe N.V. has sold its products. Throughout its entire product range, Daikin Europe N.V. shows the same pioneering concern for reducing the global warming impact caused by energy use and potential refrigerant emissions:

Residential

Commercial

Industrial

Proving its concern for the environment, Daikin Europe N.V. is among the first manufacturers in the industry to set up voluntary take-back schemes across Europe:

Recycling schemes

3 4Use End of life

Page 14: DAIKIN ENVIRONMENTAL REPORT 2010

Manufacturing1Daikin’s efforts to reduce its environmental impact start as early as the manufacturing stage, comprising of:

Research & development

Procurement

Assembly

Research & development

Daikin’s environmental efforts start with R&D. These include the optimal selection

of components with regard to energy efficiency, specific use of materials, their

longevity and recyclability. Testing whether the design specifications correspond to

the actual performance of the finished products is also essential. Thorough quality

checks are carried out in laboratory conditions as well as in real life conditions.

Ostend has become the heating R&D centre par excellence for Daikin. It is also the

location of several Daikin Altherma test sites, including the ‘Daikin Apartment’ and the

‘Daikin Energy Saving House’.

In addition, the integration of German heating systems producer and distributor

Rotex strengthened Daikin Europe N.V.’s presence in the heating market. Rotex

offerings include hybrid and solar technology and under floor heating systems, thus

complementing Daikin’s range and making possible a total Daikin energy efficient

heating package.

Daikin ultra-efficient heat pump convector

Daikin’s heat pump convector addresses a common heating efficiency problem. In well-

insulated new residences, a combination of under floor heating and low temperature

radiators is one of the most efficient heating solutions on the market. This solution,

however, is not perfect. The low leaving water temperatures important for efficiency

are adequate for under floor heating, but the room radiators (e.g. in the bedroom)

need higher temperatures (45°C). Because the Daikin heat pump convector only

requires a low water feed temperature of 35 °C, impressive energy savings of 25 – 40%

can be obtained. This makes the Daikin heat pump convector ideal for combination

with under floor heating, compared to low temperature radiators.

➥ The Daikin Apartment in Ostend, Belgium

Page 15: DAIKIN ENVIRONMENTAL REPORT 2010

Manufacturing _ 15

Daikin Altherma for apartments and collective housing: world-first low-energy heating and cooling solution for newly-built apartments and collective housing

In 2009, Daikin Europe N.V. equipped two demo apartments in a newly built 8-floor building complex with its latest heat pump series

for apartments and collective housing, a world-first. The demo apartments, located in the heart of Ostend, have one outdoor unit on

the roof top, and one indoor unit per apartment consisting of a hydrobox for heating and cooling and a domestic hot water tank for hot

water. Heating is provided via heat pump convectors and radiators.

The striking results3 of this project include a 32% reduction in

primary energy use and 59% less CO2 emissions compared to

a gas combi boiler. There are two main reasons behind such

outstanding environmental results:

• The air to water heat pump system extracts

renewable energy from the ambient air

• Its heat recovery mode recovers heat from cooling rather

than blowing it into the ambient air. The recovered

energy is then used for heating or domestic hot water

3 These are the results from calculations based on specific parameters, such as a Belgian climate, a primary energy factor of 2.3 and CO2 emission factors of 0.185 kg CO2/ kWh gas and 0.246 kg CO2 / kWh electricity.

“Our long-standing goal is to integrate renewable energy based solutions in our product range. Oil-fired condensing boilers able to operate on bio-oil were launched already back in 2007 and our GasSolarUnit integrates solar thermal energy into gas condensing boiler technology. In 2009, we started the development of our compact HeatPumpSolarUnit that combines heat pump technology with direct solar thermal input. This new and unique product is launched in the summer of 2010 and will maximize the use of renewable energy for heating and hot water production.”

Franz Grammling, General Manager of Rotex GmbH

Page 16: DAIKIN ENVIRONMENTAL REPORT 2010

To this end, Daikin has issued Green Procurement Guidelines

for its suppliers. These guidelines include:

› Striving for ISO 14001 certification

› Legal compliance

(E.g. Suppliers must not have a record of violations in the

past 2 years.)

› Chemical substance management

Restrictions on the use of certain chemical substances

(Daikin prohibits the use of 15 substances such as

cadmium, lead, asbestos, etc). Cooperation in the

investigation of chemical substances (e.g. REACH).

› Packaging guidelines, Eco-consideration design, …

➥ Daikin’s commitment to manufacture greener products extends to its suppliers via the issuance of Green Procurement Guidelines.

Procurement

A complete supply chain is involved in Daikin’s operations, both

upstream and downstream of the actual manufacturing. All actors

in this supply chain share the same burden of responsibility: to

contribute to a more sustainable society. Daikin cannot do it

alone; its suppliers must also contribute.

Page 17: DAIKIN ENVIRONMENTAL REPORT 2010

Manufacturing _ 17

Current status good

but under continuous review

Collaboration will continue,

but improvements are needed

No new projects awarded

Further collaboration not possible

➥ The results of FY 2009 clearly indicate that the majority of Daikin industries Czech Republic and Daikin Europe N.V. core suppliers take the environmental requirements very seriously, even if there is still room for improvement.

A

C

B

D

A CB D

Daikin Europe N.V. and Daikin Industries Czech Republic achieve good results for green procurement evaluation 2009

The yearly assessment of green procurement at Daikin Europe N.V.

and Daikin Industries Czech Republic shows that over 90% of the

core suppliers of both factories achieve an A or B classification.

70,3%4,7%Daikin Industries Czech Republic

Daikin Europe N.V.

61%

33%

6%

25%

Page 18: DAIKIN ENVIRONMENTAL REPORT 2010

Assembly

Each year, Daikin Europe N.V. increases its efforts to minimise its environmental impact in manufacturing and beyond. Daikin Europe N.V.’s efforts aim to further reduce energy and water consumption in production and office areas, contain the refrigerants used and reduce the waste generated from production by effective treatment, reuse and recycling. Excerpts of this successful policy are illustrated on the next page with figures from the Daikin Europe N.V. Ostend plant.

Helium replaces R-22 for leak detection at Ostend factory

In 2008, Daikin Europe N.V. began looking for a

replacement for the ozone depleting test gas R-22 to

perform leak detection at its Ostend factory. For quality

and environmental reasons, it is very important to

deliver products that are leak tight. That is why products

are tested several times for leaks during the production

process using a test gas. Previously, this test gas was a

mixture of 80% nitrogen and 20% R-22.

Daikin Europe N.V. has switched in 2009 to a nitrogen-

helium mixture. This is in line with EC Regulation

No 2037/2000 on substances that deplete the ozone

layer, which bans the use of R-22. Helium was chosen

since it is a non-ozone depleting, inert gas. A new

recovery installation was built and the leak test cabins

were modified so the test gases could be recovered after

the tests. This modification is just one more example

of Daikin’s determination to reduce its environmental

footprint to a minimum.18 _ Manufacturing

Page 19: DAIKIN ENVIRONMENTAL REPORT 2010

Was

te g

ener

atio

n (to

n)

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

➥ By having opted in the past for 100% renewable energy – from hydraulic power plants in the French Alps – Daikin Europe N.V. took a further step in reducing its CO2 emission levels and lessening its impact on the environment.

CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09

Waste generation (ton)

Waste - relative (kg/unit)

Water consumption (m3)

Water - relative (m3/unit)

➥ Despite yearly fluctuations, the waste/unit ratio shows a downward trend. The increase in relative waste per unit is due to a lower production amount.

Reduced waste generation per unit

➥ Thanks to a series of rationalisation measures Daikin Europe N.V. succeeded in further decreasing its water consumption in CY 2009. The slight increase for relative waste consumption per unit is due to a lower production amount.

Reduced water consumption per unit

6000

5000

4000

3000

2000

1000

0

8

7

6

5

4

3

2

1

0

Was

te -

rela

tive

(kg/

unit)

Wat

er c

onsu

mpt

ion

(m3 )

Fiscal Year FYCalendar Year CY

Wat

er -

rela

tive

(m3 /u

nit)

0.045

0.040

0.035

0.030

0.025

0.020

0.015

0.010

0.0050.000

Water consumption from production

25000

20000

15000

10000

5000

0

FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

➥ Once again Daikin Europe N.V. succeeded in drastically reducing its CO2 emission levels. The slight increase for relative CO2 emissions per unit is due to a lower production amount. The total abolition of CO2 emissions caused by electricity use is due to the Green Electricity procurement.

Reduced CO2 emissions

CO2 emission gas (tons)

CO2 emission electricity (tons)CO2 - relative (kg/unit)

Reduced hydrofluorocarbon emissions

➥ Daikin Europe N.V.’s refrigerant emission ratio has reached the 0,2 % target set for 2010.

HFC

em

issio

n ra

te (%

)

4.50

4.00

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00

Fiscal Year FY

HFC - relative (% releases/handled volume)

6000

5000

4000

3000

2000

1000

0

12.00

10.00

8.00

6.00

4.00

2.00

0.00FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09

CO2 emissions from production & offices

Fiscal Year FY

CO2 e

miss

ions

(ton

s)

CO2 -

rela

tive

(kg/

unit)

Hydrofluorocarbon emission rate

Waste delivered out of site from production & offices

Page 20: DAIKIN ENVIRONMENTAL REPORT 2010

Daikin UK and Daikin Ireland: green energy

Daikin UK and Daikin Ireland are one step further in reducing their

CO2 emission levels, by respectively opting for 100% renewable

electricity and an electricity supplier who sources most of its

supply from renewable sources (mainly wind). Daikin UK also

added both hybrid and low carbon vehicles to its fleet, and is a part

of the ‘Carbon Trust’, an association to help cut carbon emissions.

Finally, power saving features were installed on all Daikin UK ICT

equipment including printers and copiers.

Sales & supplyWhile expanding its sales & supply activities, Daikin continues to raise awareness among its affiliates and their customers to help protect and conserve the environment. The following areas are covered in the sales & supply phase:

Sales activities

Supply

Sales activities

Ongoing efforts in affiliated companies’ offices

Daikin Europe N.V.’s affiliated companies have or are in the process of obtaining ISO 14001 certification (see page 9). This requires

continuous efforts to improve their environmental performance. Some examples are given below:

2

Daikin France: hybrid cars and paper recycling

Daikin France is putting significant effort into reducing its team’s emissions. More than 80% of its vehicle fleet

currently consists of hybrid cars (emitting less than 140 g CO2/km). The French affiliate also voluntarily contributed

to a nationwide paper recycling programme called ‘Eco Folio’ (www.ecofolio.fr). This sponsored programme aims

at improving paper recycling and decreasing the amount of wasted paper.

Page 21: DAIKIN ENVIRONMENTAL REPORT 2010

Ongoing efforts towards customers

Focus on energy-efficient inverter technology

Daikin’s affiliates also continue to progress in ensuring that the most efficient systems

are marketed and sold by focussing on Daikin’s efficient inverter technology, which

varies compressor speed to use only the amount of energy needed.

A key element in reducing environmental burden is consuming less energy. Daikin’s

inverter control is a proven technology that can result in energy savings up to 30% over

non-inverter systems (based on seasonal efficiency ratios), while increasing comfort at

the same time. Hence, the sales activities of Daikin Europe N.V. ’s affiliates focus on

increasing the percentage of our units sold that include this energy-friendly technology.

For residential applications, the positive trend of the past years remained, with Daikin

Europe N.V. again having a share of inverter units above 90%. Commercial applications

(Sky Air®) indicate a significant increase over past years, as shown in the graph below.

Mainly EU areaSplit (residential products)

Sky Air® (commercial products)

VRV® (large commercial products)

Split Sky Air® VRV®

➥ Inverter ratio for Split products stays well above 90%, while Sky Air® products see a small increase the last year. All VRV® products are inverter based.

➥ With inverter technology the set temperature is reached faster and room temperatures remain more stable. On top of this, it is energy saving.

FY06 FY07 FY08 FY09 FY06 FY07 FY08 FY09 FY06 FY07 FY08 FY09

100

90

80

70

60

50

40

30

20

10

0

%

Benefits of inverter technology:

Quick start

Temperature remains stableTemperature / Power input

Time

Set temp. Heat pump or air conditioner with

Inverter

Heat pump or air conditioner without

Inverter

Sales & supply _ 21

Page 22: DAIKIN ENVIRONMENTAL REPORT 2010

Green initiatives involving the end user

‘L’économètre’ by Daikin France

To raise awareness among potential customers about the power consumption of the heating products installed in their home, Daikin

France developed calculation software called ‘L’économètre’ (www.pompeachaleurdaikin.fr) in 2009. L’économètre uses the following

parameters: type of project (renovation or new construction), type of home (detached, semi-detached,…), region, energy source for

space heating and domestic hot water, number of inhabitants, surface area to be heated, desired temperature,… Thanks to this tool, end

users can compare their current heating costs, consumption and environmental impact with those of a heat pump solution, and choose

a heating and cooling solution that is better for the environment and from a financial point of view.

➥ L’économètre: a simple tool to compare end users’ current heating costs, consumption and emissions with those of a heat pump solution

Page 23: DAIKIN ENVIRONMENTAL REPORT 2010

Daikin Europe’s N.V. EcoCalculator

Daikin Europe N.V. also introduced a tool similar to that of Daikin France that can be customised for a number of European countries.

The EcoCalculator (http://energycalc.daikinaltherma.eu) includes country-specific criteria and compares the cost and CO2 emissions of

a Daikin Altherma heat pump system with the consumer’s current installation (in the case of renovation) or possible alternatives to heat

pump based systems (in the case of new construction).

➥ Entering specific heating system data (type of furnace, year of installation, heat emitters,…) helps to make the calculation more accurate.

➥ Daikin’s EcoCalculator gives potential heat pump buyers across Europe a good overview of the cost savings and CO2 reductions that can be achieved with a Daikin Altherma air to water heat pump system.

Sales & supply _ 23

Page 24: DAIKIN ENVIRONMENTAL REPORT 2010

Supply

Logistics are an important link in a company’s supply chain. That is no different at Daikin Europe N.V., where specialists are constantly

looking for ways to decrease Daikin’s environmental impact at the logistics stage. Because transportation accounts for the bulk of

logistics’ impact on our environment – with CO2 emissions as a direct consequence – one of Daikin Europe N.V.’s main challenges is to

reduce its transport-related emissions, and thus achieve considerable CO2 savings.

Daikin Europe N.V. welcomes Velvet Revolution

With its Velvet project that officially began in FY2008, Daikin Europe N.V. intends to restructure and optimise its entire supply chain. This

restructuring has financial as well as environmental benefits.

The Velvet project has 3 main targets:

1. Keeping the logistics cost ratio (logistic costs vs. turnover) at the same level as in 2006

2. Reducing the total inventory across European warehouses

3. Increasing service to customers

An action plan has been set up, resulting in the following initiatives, of which the first effects where clearly visible in FY 2009:

› Reduction in the number of warehouses and integration of stock. Daikin Europe N.V. owns and controls the stock in these warehouses,

based on forecasts and sales orders from its affiliates.

› Transporting products from factory to end-customer in the most efficient way. The principal aim of this approach, called ‘direct

supply’, is to have no more than 1 warehouse between the factory and the end-customer.

In recent years, Daikin Europe N.V. has developed 3 kinds of ‘direct supply’ flows:

(1) Direct containers: goods produced in Asian factories are shipped directly to the warehouses of the main affiliates (Italy, Spain, France and UK).

(2) Direct trucks: similar, but for the units produced by Daikin Czech Republic.

(3) Direct deliveries: goods are delivered from a Daikin Europe N.V. warehouse directly to the affiliates’ customer. This is the case for

Belgium, the Netherlands and also partially for France and Germany.

Page 25: DAIKIN ENVIRONMENTAL REPORT 2010

➥ Daikin Europe N.V. examined alternative logistics flows during FY2008, on the road to achieving 10% transport-related CO2 savings by FY2010.

➥ Geert Snoeck, Department Manager Logistics at Daikin Europe N.V.

Overseas

Distribution Affiliates

Czech

Results for the environment

Geert Snoeck, Department Manager Logistics at Daikin Europe N.V., is one of the

members of the Velvet steering committee. He sees ample progress in terms of the

logistic environmental footprint since the introduction of Velvet: ‘Although Velvet was

primarily designed to reorganise our logistics flows, the impact of direct supply on the

environment is considerable: 11% less CO2 emissions to date, and we will continue

to reduce the burden on our environment with, for example, the introduction of

multimodal transportation wherever possible.’

12

11

10

9

8

7

6

5

FY06 FY07 FY08 FY09

Sales & supply _ 25

CO2 emissions (ton) per Sales volume (m3)

Target Result

-2 % -2 % -2 %-4 % -9 % -11 %

REPLENISHMENT

Page 26: DAIKIN ENVIRONMENTAL REPORT 2010

Environmental efforts don’t stop once Daikin Europe N.V. has sold its products. Throughout its entire range of products, Daikin shows the same pioneering concern for reducing the impact caused by energy use and potential refrigerant emissions, both of which contribute to global warming.

➥ In 2008, Daikin launched the industry’s first VRV® system using CO2 as refrigerant.

What is Daikin doing to decrease global warming impact during product use?

1. Raising the energy efficiency of our products is a safe and immediate way to

reduce their global warming impact. The following pages contain examples of

energy efficient, award winning, Daikin cooling and heating products.

2. At the same time, refrigerant emissions must be avoided, since refrigerants only

contribute to global warming if released into the atmosphere. The European

F-gas regulation will contribute to this goal, as it requires regular inspection of air

conditioning and heat pump systems, as well as the certification of installers and

service technicians.

3. And of course, we are also pursuing research efforts into the use and potential

applications of low GWP refrigerants or natural refrigerants such as ammonia

and carbon dioxide (CO2). Although alternative refrigerants may have a lower

GWP compared to the HFC refrigerants used today, there still are a number of

obstacles to be overcome, such as safety. Therefore, it will not be easy to use

these refrigerants on a wide scale in the near future.4GWP: Global Warming Potential of 1kg of fluorinated greenhouse gas relative to 1kg of carbon dioxide over a period of 100 years. R-410A, R-134a and R-407C are fluorinated greenhouse gases with a GWP of respectively 1975, 1300 and 1652.5 (values used by the European F gas regulation).

Residential

Commercial

Industrial

AWARD

Daikin Altherma high temperature honoured for renewable energy source technology

The Daikin Altherma high temperature system was honoured twice at the Rushlight Awards 2009. The Rushlight Awards encourage

the development of clean technology and improving environmental standards, by recognising leading organisations throughout

the UK and Ireland that have furthered environmental awareness, technology and innovation. Daikin was presented with the

overall Rushlight Natural Energy Award – for the most significant overall contribution to renewable energy technology – as well as

the Ground & Air Source Power Award. The latter category recognises the Daikin Altherma high temperature system as the most

important single contribution to renewable energy technology in 2009.

Use3

Page 27: DAIKIN ENVIRONMENTAL REPORT 2010

1. Heat pumps consume less energy

Because heat pumps can generate more heating or cooling energy

compared to the energy they consume, their efficiency is excellent.

This yields considerable energy savings compared to traditional

fossil fuel based heating systems. The comparison below (based

on measurements of the Daikin Altherma heat pump at the Daikin

Energy Saving House) shows that the primary energy use can be

substantially lower compared to a fuel oil or gas boiler system.

Why are heat pumps better for the environment than traditional heating systems?

Heat pumps are an excellent answer to the so-called 20/20/20 objectives

of the European Union: 20% less energy consumption, 20% reduction

of CO2 equivalent emissions and achieving a share of 20% renewable

energy sources in the European energy mix, all by 2020.

2. Heat pumps reduce CO2 emissions

Since heat pumps consume less energy than traditional heating

systems, they also generate less CO2 emissions. Thus, heat pumps

can contribute to reducing the impact of global warming. The

comparison below shows that a Daikin heat pump can generate 65%

less CO2 emissions than a fuel oil boiler (based on measurements at

the Daikin Energy Saving House).

3. Heat pumps use renewable energy sources

Heat pumps use energy from renewable sources: from the ground,

from water or from the ambient air. These energy sources are renewable

and inexhaustible. Of course, heat pumps also need energy to function

(mostly electricity), but increasingly this electricity can also be generated

from renewable energy sources (solar energy, wind energy, hydropower,

biomass). The Directive on the promotion of energy from renewable

sources – published in June 2009 – intends for final energy consumption

in the European Union to include a 20% share of renewable sources.

A noteworthy aspect of the Directive is its recognition of air and water as

renewable energy source, and heat pumps as a technology for exploiting

it. As a result, the way is open for local governments to stimulate heat

pump technologies via awareness campaigns and various incentive

schemes.

➥ By making use of renewable energy sources, heat pumps can deliver 4 to 5 times more heat energy than the electrical energy they consume.

3 ~ 4 kW renewable thermal energy

1 kW electricity

4 ~ 5 kW heat output

+

Prim

ary

ener

gy u

se

(%)

120

100

80

60

40

200

Std boiler (non condensing) (efficiency 70%)

Condensing boiler (efficiency 92%)

Daikin Altherma low temperature in

average climate (sCOP = 3.5)

(efficiency 140%)

CO2 em

issi

ons

(Ton

/ CO

2 / ye

ar)

6

5

4

3

2

10

Fuel oil boiler Gas boilerDaikin Altherma low temperature

➥ Calculation data: Country: Belgium, Power generation emission: 276g of CO2 / kWh, Gas emission: 202g of CO2 / kWh, Gas boiler efficiency: 90%,Fuel oil boiler emission: 268g of CO2 / kWh, Efficiency fuel oil boiler: 90%

➥ Comparison of primary energy use between conventional boilers and Daikin Altherma low temperature. Result is for Daikin Altherma low temperature in average climate (Strasbourg). Application: underfloor heating - floating setpoint: 35°C.

100%

131%

100%

35%

77%

50%

Use _ 27

Page 28: DAIKIN ENVIRONMENTAL REPORT 2010

Heat pumps: the right energy saving, low carbon choice

What are heat pumps and how do they function?

Heat pumps are highly energy-efficient, all-in-one heating and/

or cooling devices. In heating mode, they extract thermal energy

from the ambient air (so-called aerothermal heat pumps), from

water sources (hydrothermal heat pumps) or from the ground

(geothermal heat pumps), and ‘pump’ it into buildings. In cooling

mode, they do the opposite. Some heat pumps are also equipped

with a function to provide domestic hot water.

Inside the building, the generated heat or cold can be distributed

directly to the indoor air, or indirectly via a water circuit (floor

heating systems, fan coils, radiators). Thus, all kinds of heat pump

types are offered on the market: water to air, air to water, ground

to water, water to water, air to air etc. Daikin has ample experience

with all of these heat pump types.

The energy transfer in heat pumps occurs via a substance called

‘refrigerant’ that circulates through a closed circuit of pipes and

heat exchangers in an evaporation and condensation cycle.

During this cycle, heat is transferred from one area to another:

in evaporation mode, the refrigerant absorbs heat, whereas in

condensation mode, the refrigerant releases heat. By doing so,

heat pumps can transfer heat from the ground, water or outdoor

air, lift the temperature to a higher level and bring it inside

a building (or vice versa in the case of cooling). With the units,

commercially available today, it can be done even at outdoor

temperatures down to –25°C.

OUTDOOR UNIT

< Compressor Expander >

EVAPORATOR

CONDENSOR

RENEWABLE ENERGY

FROM AIR, GROUND & WATER

ELECTRICITY

HEATING ENERGY

Input 3~4kW

Input 1kW

Output 4~5kW

INDOOR UNIT

Aerothermal heat pump Hydrothermal heat pump Geothermal heat pump

Page 29: DAIKIN ENVIRONMENTAL REPORT 2010

Use _ 29

Raising consumer awareness of energy-saving measures in heating and cooling

Daikin leaves no stone unturned to make consumers aware

that everyone can contribute to a cleaner world. Thus in its

brochures, manuals, and other sales literature, Daikin gives

ample recommendations how to optimise the use of its

units in both heating and cooling mode. An example of that

pioneering care are the “We care icons” that have now become

a recognisable item in all Daikin sales catalogues.

NIGHT SET MODE

Saves energy, by preventing overcooling or

overheating during night time.

TWO AREA INTELLIGENT EYE

The air flow is sent to a zone other than where the

person is located at that moment. If two people

are detected in the room, the movement sensor,

together with the comfort mode (cooling directed

at the ceiling, heating directed at the floor), will see

to it that the air flow is projected away from the

occupants. If no people are detected, the unit will

automatically switch over to the energy-efficient

setting.

ENERGY SAVING DURING STANDBY MODE

If the room is empty for 20 minutes, the system shifts

the set temperature by ±2 degrees to reduce the

consumption.

We care icons

Daikin units incorporate many different features, including

energy saving ones. Consumers are informed on these features

via icons in product catalogues. These “We care icons” indicate

those product features that have an impact on reducing energy

consumption. Many of our units integrate some of these features.

ENERGY EFFICIENCY

Daikin units are energy efficient and economical.

ECONO MODE

This function decreases the power consumption

so that other appliances that need large power

consumption can be used. This function is also

energy saving.

MOVEMENT SENSOR

The sensor detects whether someone is in the

room. When the room is empty, the unit switches to

economy mode after 20 minutes and restarts when

a person enters the room.

FAN ONLY

The air conditioner can be used as fan, blowing air

without cooling or heating.

INVERTER TECHOLOGY

Inverter compressors continuously adjust compres-

sor speed to actual demand. Fewer power-con-

suming starts and stops result in decreased energy

consumption (up to 30%) and more stable tem-

peratures.

INVERTER

Page 30: DAIKIN ENVIRONMENTAL REPORT 2010

Daikin Emura:

Top design and extreme efficiency go hand in hand

Launched in 2009, the Daikin Emura all-in-one room comfort system combines superior design, comfort and energy efficiency in a stylish

wall mounted unit. Beneath the subtle yet sleek design, is advanced Daikin technology: a residential split heat pump system that heats,

cools, ventilates and dehumidifies. Daikin Emura is equipped with Daikin’s energy-saving inverter technology. Moreover, an intelligent

eye switches the system to stand-by when the room is empty for more than 20 minutes, thereby saving on energy consumption. The

result: extreme energy efficiency and absolute room comfort in a package that adds refinement and top design to any interior.

Residential applications

The following pages showcase Daikin Europe N.V.’s award

winning products for residential, commercial or industrial use.

Daikin Europe N.V. won a number of awards for products that

limit the impact on the environment.

1. Air to air heat pumps

Page 31: DAIKIN ENVIRONMENTAL REPORT 2010

_ 31 Use

UK refurbishment project using Daikin heat pumps wins award

A major refurbishment project involving the installation of Daikin Altherma air to

water heat pumps and solar thermal renewable technologies in 60 South Tyneside

Housing properties (North East England) won the National Energy Action (NEA) award.

The use of the latest renewable technology combined with improved insulation of walls

and roofs means that tenants of these 60 homes can expect to see their fuel bills drop by

up to 30%, in turn contributing to massive reductions in CO2 emissions.

As a first step, a showcase home was opened where both Daikin Altherma heat pumps for

heating and hot water, and solar thermal collectors for hot water production were installed.

Built in the 1960s and previously heated by a gas-powered boiler, this showcase home has

been transformed into environmentally sustainable housing.

Daikin Altherma range wins MCS accreditation

During FY2009, the entire Daikin Altherma product range was accredited by the Microgeneration Certification Scheme (MCS) in the UK.

This means that all Daikin Altherma systems are eligible for grant funding under the Low Carbon Buildings Programme (LCBP), offering

financial support to homeowners who install a fully integrated Daikin Altherma system.

2. Air to water heat pumps

Eco-label

The European Eco-label − also known as “the Flower” due to its flower logo −

denotes products and services representing the top of their class concerning

environmental performance. Products bearing the voluntary eco-label scheme are

certified to meet EU-wide environmental criteria, and compliance is verified by an

independent test body. The eco-label is available for 28 product groups, including

heat pumps. Daikin Europe N.V. was the first in its sector to obtain the Eco-label

for Daikin Altherma, emphasizing its ongoing commitment to the environment.

BE/0031/1

➥ For certified models, please refer to www.daikinaltherma.eu

Energa partners up with Daikin Poland

In early 2010, Daikin Poland began a cooperative venture with Energa – one of Poland’s main energy

providers – on a private housing project called ‘Energy Saving House’. The project focuses on various

energy-saving solutions. Daikin Altherma has been selected as the only air to water heat pump for the project. Daikin will equip the

600 mostly new residential housing units with Daikin Altherma heat pumps by 2014. This project again illustrates Daikin’s commitment

to finding solutions that combat global warming and contribute to an environmentally sustainable future.

AWARD

Page 32: DAIKIN ENVIRONMENTAL REPORT 2010

Commercial applications

Daikin Sky Air® and VRV® represent Daikin’s ultimate

technology in climate comfort and energy efficiency for

small to large offices, hotels and other commercial facilities,

providing year-round heating and cooling.

VRV®: Commercial heat pumps for versatile, high level comfort

Daikin’s VRV® systems are available as air source, water source as well as ground source heat pumps. They circulate just the required

amount of refrigerant volume to the various circuits in a building, allowing different rooms to simultaneously enjoy different

temperatures. Daikin’s inverter technology allows the system to adjust the power needed to actual requirements, ensuring maximum

comfort (temperature fluctuations are minimised) and maximum efficiency (no unnecessary energy-consuming starts and stops).

VRV® heat recovery systems also allow diverting exhaust heat from indoor units in cooling mode (which would otherwise be lost) to

areas requiring heating, resulting in additional savings.

Perseo and Auros management centres, Milan, Italy

The Italian Galotti real estate group chose Daikin Italy to provide support in designing climate control systems for its new Milan-based

Perseo and Auros class A4 buildings. Both buildings were designed and built with priority being given to the environment: class A

environmental efficiency, integration with renewable energy sources, respect for the environment, reduced winter heating and summer

cooling energy losses in order to achieve energy savings, and rational energy use. The installed solutions included Daikin VRV® heat

recovery systems that deliver 5.9 kWh/m³ per year for heating. This represents a saving of 50.9% 5 in total operating costs and drastically

reduced CO2 emissions (less than 4.2 kg/m3 per year).

5 ‘A class’: the top class in terms of building energy consumption, as defined by Italian law related to EPB (energy performance of buildings).

6 Calculated versus the maximum consumption allowed, as stated by the regional law related to EPB.

Page 33: DAIKIN ENVIRONMENTAL REPORT 2010

“The first results of this

pilot project will serve as

an example for the rest of

the retail industry, and will

certainly open new avenues

for Daikin’s energy-saving

products”.

Alex Maan, National Accounts Manager,

Daikin Netherlands

UK authoritative professional journal

H&V News grants the Air Movement

Product of the Year Award to Daikin

UK for its VRV®III Heat Recovery and

Biddle air curtains. Product of the year

awards are given to those products

that excel in innovation and efficiency.

A Dutch retailer’s corporate social responsibility matches Daikin’s solution

As part of its CSR policy, a Dutch retailer wished to investigate the purchase of an

integrated energy-efficient cooling and heating system in its shops. Through its

contacts with Daikin Netherlands, the retailer discovered Daikin’s VRV® heat recovery

system. A pilot project including two of its shops was set up in late 2009, with a

first evaluation early 2010. The pilot project involved the installation of a VRV® heat

recovery system, including Biddle air curtains. In order to assess the possible benefits

of the above-mentioned installation, the pilot project set-up was compared to a

conventional system including separate air conditioning units for heating and cooling,

as well as fossil fuel fired air curtains.

Taking into account the fact that the winter of 2009 was one of the harshest in 20 years,

the first measured results looked impressive: net savings of 75% for both shops on an

annual basis6 and a reduction in CO2 emissions7 of more than 70%, compared to the

conventional set-up.

7 Monitoring during the first quarter of 2010 supports the projected money savings of 75%

8 CO2 emissions based on Dutch CO2 values (based on values SenterNovem 2007)

Use _ 33

➥ Picture taken by Sjef Frijns-Geleen

AWARD

Page 34: DAIKIN ENVIRONMENTAL REPORT 2010

RIVERGATE office center, Vienna, Austria

This new 50,000-m² office center, is located in one of Vienna’s most attractive locations: the Danube waterfront north of the city

center, close to Danube Island. The office center consist of 2 gates, the first gate contains 12 storeys, the second gate 8 storeys. Daikin

Airconditioning Central Europe HandelsgmbH delivered over 3 MW of high efficiency water-cooled chillers for this project. For cooling,

Daikin suggested two high efficiency water-cooled chillers. Both water circuits operate in series with low delta T and with high efficiency

variable flow pumps, further increasing the system’s efficiency and control possibilities. For heating, two high efficiency water-source

heat pumps extract heat from two sources: the building foundations (geothermal) and Danube river water (hydrothermal). Daikin was

proud to contribute to the RIVERGATE project obtaining LEED (Leadership in Energy and Environmental Design) Gold status in the

precertification process.

Large commercial and industrial applications:

Daikin chillers: ‘air to water’ heat pumps in all sizes

Daikin chillers are available in sizes from 5kW to 9MW and are used in many industries: from fish farming, wine processing and

agriculture, through pharmaceuticals and food production, to comfort heating and cooling in large buildings. Unique in their

precision, power, low operating noise, easy maintenance and low running costs, Daikin chillers represent the sure and safe route

to an indoor environment or process application that is comfortable and consistent.

LEED

LEED is an internationally recognised green building certification system to improve building performance related to energy

savings, water efficiency, CO2 emissions reduction, improved indoor environmental quality and stewardship of resources.

RIVERGATE is the first building in Austria to be granted this coveted award. Key to RIVERGATE winning the award was the site’s

excellent transport links, perfect infrastructure, innovative controlled natural light exposure, as well as the extremely efficient

cooling and heating solutions provided by Daikin.

Page 35: DAIKIN ENVIRONMENTAL REPORT 2010

Conveni-pack and ZEAS: condensing units, refrigeration, freezing and heat pump technology offer a total solution

Daikin developed Conveni-pack – an all-in-one freezing, refrigeration and heat pump system – especially for convenience

stores. It reduces energy consumption by integrating freezing, refrigeration, heating and air conditioning functions into one

system. Conveni-pack reduces annual energy consumption up to 60% compared to conventional systems by utilising the

heat exhausted from freezers and refrigerators to heat the shop in winter. The compact solution also allows for maximum

installation flexibility, and is ideally suited to be combined with Daikin’s ZEAS range of refrigeration condensing units for

low and medium temperature applications.

Conveni-pack and ZEAS: complementary money savers for German retailer

A German retailer with a 570-m² large beverage department and a 730-m² food

department wanted to upgrade its cooling, refrigeration and heating installation.

An analysis comparing the performance of a conventional cascade system of cooling

and refrigeration units to a Conveni-pack/ZEAS combination delivered stunning results:

projected energy savings of 37% on an annual basis, resulting in 30% less running

costs for the Conveni-pack/ZEAS combination. Thanks to heat and condensation

recovery, the installation is projected to generate 41% less CO2 emissions, a very

impressive result for such a compact system. The retailer was also impressed with the

‘plug-and-play’ aspect of the Conveni-pack/ZEAS combination, an important aspect in

renovation projects.

Use _ 35

Awards won by Daikin’s

Conveni-pack:

› Environmental Product

of the Year (UK, 2006)

› Incentive Award

by the German

Environment Ministry

(Germany,2009)

BMU-Förderpreis

“Kälte und Wärme”

AWARD

Page 36: DAIKIN ENVIRONMENTAL REPORT 2010

End of lifeDaikin Europe N.V. is among the first manufacturers in the industry to set up voluntary take-back schemes across Europe to responsibly deal with its products’ waste at the end of their useful life.

4

Daikin UK’s end of life take-back scheme

The recycling scheme for air conditioners that Daikin UK successfully

launched two years ago is steadily progressing. This award-winning

scheme was devised as a service to customers and encourages the

recovery and recycling of equipment that is not currently covered by the

WEEE Directive. This year’s results are again promising: over 50 tonnes

of equipment were recovered at a recycling efficiency of over 90%, all

in compliance with environmental regulations. Adhering to this scheme

underscores Daikin UK’s commitment to continuing its efforts with

regard to WEEE compliance in the UK, for those products covered by the

legislation and beyond.

Daikin Greece: RASA recycling scheme reaches cruising speed

RASA membership subscriptions reached 966 in 2009, including 112 HVAC

related companies, including Daikin Greece. No less than 7,819 tonnes of

air conditioning equipment were collected in 2009, a significant increase

compared to 388 tonnes in 2008. This was due to the incentive scheme

for HVAC replacement introduced by Greek authorities in the summer

of 2009, by which they wanted to encourage people to replace their old

energy devouring units with new efficient inverter ones.

RASA comprises 501 participating municipalities, representing roughly

8 million citizens. The scheme achieved an average recycle ratio of 85.98%,

well above the required levels of between 50% and 80% (depending

on which WEEE category your product belongs to). In addition to the

9 existing recycling plants, another plant started operation in 2010.

Page 37: DAIKIN ENVIRONMENTAL REPORT 2010

Daikin Belgium take-back scheme goes beyond WEEE compliance

After introducing its individual scheme for collecting and recycling air conditioners

in 2008, Daikin Belgium continues to pave the way for safe and appropriate disposal

of all air conditioners at the end of their lives (both Daikin branded units and others).

This scheme was approved by the Flemish, Walloon and Brussels authorities in 2008.

➥ In Greece, RASA collected 7,819 ton of air conditioning equipment in 2009, a significant increase compared to 388 ton in 2008.

Mark Oosterlynck,

Managing Director of Daikin Belgium, is optimistic about the results to date:

“Although it’s a long and winding road, we notice

that installers are increasingly adhering to our scheme.

The fact that they can deliver the end-user a certificate of

environmentally sound recycling upon dismantling also

enhances their image. In the meantime, Daikin Belgium

has extended the scope of its recycling scheme. In addition

to small air conditioners, it included

chillers in 2009. This is yet another

step towards decreasing our impact

throughout the product lifecycle.”

End of life _ 37

with

ww

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in.b

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recycleLOGO.indd 1 24/11/2008 15:21:38

Page 38: DAIKIN ENVIRONMENTAL REPORT 2010

Main EU environmental legislation related to Daikin Europe N.V.’s activities

Regulation on certain fluorinated greenhouse gases ((EC) No 842/2006)The aim of the F-gas regulation is to contain and prevent F-gases (HFCs, PFCs, SF6) used in air conditioners, heat pumps, refrigeration systems etc. from escaping into the atmosphere, where they contribute to global warming. It foresees a number of measures directed at awareness raising, leak prevention and certification of installers and personnel. The F-gas regulation entered into force on 4 July 2006 and a number of measures applied from 4 July 2007.

Directive on waste electrical and electronic equipment (2002/96/EC)This Directive regulates the prevention, reuse, recycling and other forms of recovery of WEEE (Waste Electrical and Electronic Equipment) at end of life. It came into force on 13 August 2005.

Directive on the restriction of the use of certain hazardous substances in electrical and electronic equipment (2002/95/EC)The Restriction of Hazardous Substances in electrical and electronic equipment (RoHS) is designed to reduce the impact of certain hazardous materials when manufacturing specific electrical equipment including household air conditioners. It came into force on 1 July 2006.

Directive on the energy performance of buildings (2010/31/EU)The Energy Performance of Buildings Directive requires all EU member states to establish minimum energy performance standards for buildings. As of 31 December 2020 new buildings in the EU will have to consume ‘nearly zero’ energy and the energy will have to be ‘to a very large extent’ from renewable sources. The Directive entered into force 8 July 2010.

Directive on the promotion of the use of energy from renewable sources (2009/28/EC)This Directive sets targets for the Member States for the overall share of energy from renewable sources in the final consumption of energy and in transport. Besides geothermal energy, for the first time aerothermal and hydrothermal energy are recognized as renewable energy sources. Member States are required to promote heat pump technologies using these renewable energy technologies. The Directive was published June 2009 and entered into force the same month.

Directive establishing a framework for the setting of ecodesign requirements for energy related products (2009/125/EC)This Directive on the eco-design of energy related products (ErP) defines conditions and criteria for setting requirements regarding environmentally relevant product characteristics, and allows them to be improved quickly and efficiently, from the design onwards. This Directive will improve the environmental performance of

ErPs (such as heat pumps), with a focus on energy efficiency. The general framework directive was adopted on 21 October 2009. Legal obligations for specific products will be determined by separate implementing measures.

Regulation concerning the Registration, evaluation, authorisation and restriction of chemicals ((EC) No 1907/2006)REACH (Registration, Evaluation, Authorisation and Restriction of Chemical Substances) requires industrial actors to register chemical substances used in their products and production processes with the European Chemical Agency. This risk-managing regulation aims at protecting the environment and human health through the safe use, and better and earlier detection of intrinsic properties of chemical substances. It was approved on 13 December 2006 and entered into force on 1 June 2007.

Commission directive implementing council directive 2010/30/EU with regard to energy labelling of household air-conditioners (2002/30/EC)EU legislation requires the Energy Label to be clearly displayed on a range of energy consuming products. The label allows consumers to make direct product comparisons concerning energy use as well as concerning features specific to the appliance in question. Air conditioners under 12 kW are included in the scope of the legislation and the relevant comparative data on the label includes an energy efficiency rating from A (best) to G (worst).

Directive on energy end-use efficiency and energy services (2006/32/EC) This Directive aims at enhancing the cost-effective improvement of energy end-use efficiency in the EU Member States. Member States are required to achieve cumulative annual energy savings of 9% by 2016. Furthermore the Member States must provide mechanisms, incentives and legal and financial framework to reach the energy savings target. All these elements need to be described in so called National Energy Efficiency Action Plans. The Directive provides an indicative list of examples of energy efficiency improvement measures, heat pumps are considered as such an improvement measure for heating and cooling in the residential and tertiary sector.

Commission decision establishing the ecological criteria for the award of the ecolabel for heat pumps (2007/742/EC)The European Eco-label denotes products and services with high environmental performance. Products bearing the label are certified to meet EU-wide environmental criteria, and compliance is verified by an independent test body. The Eco-label scheme is voluntary and represents products in the top of their class concerning environmental performance. It is available for 28 product groups, including heat pumps.

Legislation

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Contact list

Affiliated companies Daikin Europe N.V.representation offices

Daikin Europe N.VZandvoordestraat 3008400 Oostende BelgiumT +32 59 55 81 11F +32 59 55 88 [email protected]

Daikin Europe N.V. Brussels office‘The Bridge’Chaussée de Mons/Bergensesteenweg 1424 1070 Brussels Belgium T +32 25 29 61 11 F +32 25 29 61 99www.daikin.eu

Daikin AirconditioningBelgium N.V.Avenue Franklin 1BB-1300 WavreBelgiumT +32 10 23 72 23F +32 10 24 49 [email protected]

Daikin AirconditioningCentral Europe HandelsGmbHCampus 21, Europaring F12/4022345 Brunn am GebirgeAustriaT +43 2236 325 57F +43 2236 325 [email protected]

Daikin AirconditioningFrance S.A.S.Z.A. du Petit Nanterre31, rue des Hautes PâturesLe Narval - Bâtiment B92737 Nanterre cedexFranceT +33 1 46 69 95 69F +33 1 47 21 41 [email protected]

Daikin AirconditioningGermany GmbHInselkammerstrasse 2D-82008 Unterhaching (München)GermanyT +49 89 74427 0F +49 89 74427 [email protected]

Daikin AirconditioningGreece S.A.50 Ag. Konstantinou str,GR - 151 24, Maroussi - AthensGreeceT +30 210 876 13 00F +30 210 876 14 [email protected]

Daikin AirconditioningItaly S.p.A.Via Milano, 620097 San Donato Milanese (MI)ItalyT +39 02 51 619 1F +39 02 51 619 [email protected]

DaikinMcQuayMiddle East FZEP.O. Box 18674Jebel Ali FreezoneDubai, United Arab EmiratesT +971 4 811 0300F +971 4 811 [email protected]

Daikin AirconditioningNetherlands B.V.Fascinatio Boulevard 562NL-2909 VA Capelle aan den IjsselThe NetherlandsT +31 88 32 45 460F +31 88 32 45 [email protected]

Daikin AirconditioningPoland Sp. z o.o.UI Tásmowa 702-677 WarszawaPolandT +48 22 319 90 21F +48 22 433 51 [email protected]

Daikin AirconditioningPortugal S.A.SedeEdificio Dona Maria IQuinta da Fonte Office ParkPaço de Acros, 2770-071 OeirasPortugalT +351 21 426 87 00F +351 21 426 22 94

Delegação NorteParque Industrial da VarzielaRuas A/G Lote 1,Ãrvore 4480-619,Vila do CondePortugalT +351 252 240 850F +351 252 637 [email protected]

Daikin Air ConditioningSouth Africa (Pty) Ltd.Unit 1 & 2 EdISOn WayCentury Gate Business ParkCentury CityCape Town7441Republic of South AfricaT +27 21 528 3500F +27 21 551 [email protected]

Daikin Airconditioning SpainCalle Labastida 228034 MadridSpainT +349 1 334 56 00F +349 1 334 56 [email protected]

Daikin Sweden A.B.Björnstigen 87Box 3076SE - 169 03 SolnaSwedenT +46 8 564 855 40F +46 8 564 855 [email protected]

Daikin Airconditioning UK LtdThe HeightsBrooklandsWeybridgeSurreyKT13 ONYUnited KingdomT +44 (0)845 641 9000F +44 (0)845 641 [email protected]

Daikin Klima PazarlamaLimited ŞirketiMaslak Mah.Beybi Giz Plaza NO:1 Kat:834396 Maslak - IstanbulTurkeyT +90212 290 30 30F +90212 290 30 [email protected]

ROTEX HeatingSystems GmbHLangwiesenstraße 10D-74363 GüglingenGermanyT +49 7135 103 0F +49 7135 103 [email protected]

Daikin EuropeHamburg Marine OfficeStresemannstrasse 342D-22 761 HamburgGermanyT +49 40 890 60 9 11F +49 40 890 60 9 [email protected]

Daikin Europe N.V.Ireland Representation OfficeUnit 1Orchard Business CentreOrchard AvenueCity West, Dublin 24IrelandT +353 16 42 34 30F +353 16 42 34 [email protected]

Daikin Europe N.V.Middle East OfficeP.O. Box 18674Jebel Ali Free ZoneDubai, United Arab EmiratesT +971 4 811 0300F +971 4 811 [email protected]

Daikin Europe N.V.Moscow Representative OfficeAlekseevskaya TowerRaketny bld 16129164 MoscowRussiaT +7 495 787 2782F +7 495 787 [email protected]

Daikin Europe N.V.Daikin Refrigeration OfficeFascinatio Boulevard 5622909 VA Capelle aan den IjsselPO 8585, 3009 AN RotterdamThe NetherlandsT +31 88 32 45 460F +31 88 32 45 [email protected]

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Naamloze Vennootschap - Zandvoordestraat 300, B-8400 Oostende - Belgium - www.daikin.eu - BE 0412 120 336 - RPR Oostende

Daikin products are distributed by:

The present leaflet is drawn up by way of information only and does not constitute an offer binding upon Daikin Europe N.V.. Daikin Europe N.V. has compiled the content of this leaflet to the best of its knowledge. No express or implied warranty is given for the completeness, accuracy, reliability or fitness for particular purpose of its content and the products and services presented therein. Specifications are subject to change without prior notice. Daikin Europe N.V. explicitly rejects any liability for any direct or indirect damage, in the broadest sense, arising from or related to the use and/or interpretation of this leaflet. All content is copyrighted by Daikin Europe N.V.

Daikin Europe N.V. participates in the Eurovent Certification Programme for Air Conditioners (AC), Liquid Chilling Packages (LCP) and Fan Coil Units (FC); the certified data of certified models are listed in the Eurovent Directory. Multi units are Eurovent certified for combinations up to 2 indoor units.

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Daikin’s unique position as a manufacturer of air conditioning equipment, compressors and refrigerants has led to its close involvement in environmental issues. For several years Daikin has had the intention to become a leader in the provision of products that have limited impact on the environment. This challenge demands the eco design and development of a wide range of products and an energy management system, resulting in energy conservation and a reduction of waste.