Daikin’s Net Zero Target Gains Approval from SBTi, Strengthening Climate Commitments
Daikin Industries, Ltd., a global leader in air conditioning systems and refrigerants, has achieved a major sustainability milestone with the certification of its greenhouse gas (GHG) emissions reduction targets as “Net Zero Targets” by the Science-based Targets initiative (SBTi). This recognition underscores Daikin’s long-term dedication to climate action and its pursuit of a decarbonized business model by 2050.
The SBTi is one of the most influential global climate initiatives, created in 2015 through a partnership of four major organizations: the Carbon Disclosure Project (CDP), the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). Its mission is to guide and validate corporate climate goals, ensuring that emissions reduction strategies align with the Paris Agreement, which seeks to limit global temperature rise to no more than 1.5°C above pre-industrial levels.
Since its inception, the SBTi has certified the climate goals of nearly 2,000 companies worldwide, including around 80 leading Japanese corporations. This growing global network highlights the expanding recognition among businesses of the need for science-based, credible climate action strategies. Daikin’s inclusion in this group reinforces its position as an industry leader in both technology and sustainability.
From Near-Term Goals to Long-Term Net Zero Commitment
Daikin had already taken significant steps before this latest recognition. In February 2024, the company obtained SBTi certification for its near-term emissions reduction targets. These included commitments to reduce direct and indirect emissions (Scopes 1 and 2) as well as value chain emissions (Scope 3). However, the certification in 2025 for net zero by FY2050 represents a deeper, longer-term pledge.
The company’s approved targets are:
- Near-Term (by FY2031):
- Reduce Scope 1 emissions (direct emissions from Daikin’s own operations) and Scope 2 emissions (indirect emissions from purchased energy) by 46.2% compared to FY2020 levels.
- Cut Scope 3 emissions (emissions from Daikin’s value chain, including suppliers and product use) by 55% per JPY value added compared to FY2020.
- Long-Term Net Zero (by FY2050):
- Achieve net zero GHG emissions across the entire value chain, covering Scopes 1, 2, and 3.
This two-stage approach demonstrates how Daikin is combining short-term action with long-term vision, ensuring accountability at every step.
Environment Vision 2050: Daikin’s Roadmap
Daikin’s climate goals are framed under its broader “Environment Vision 2050”, which outlines how the company plans to balance growth with sustainability. As both an air conditioning manufacturer and a refrigerant developer, Daikin occupies a unique position in global climate discussions. Air conditioning systems play a vital role in modern living and economic activity, but they also contribute significantly to emissions, both through electricity use and refrigerant leakage.
Recognizing this dual responsibility, Daikin is working on:
- Energy-efficient technologies that lower electricity consumption in air conditioning systems.
- Next-generation refrigerants with lower global warming potential (GWP).
- Recycling and recovery initiatives for refrigerants at end-of-life stages.
- Global deployment of sustainable products, ensuring comfort for consumers while reducing environmental impact.
By addressing emissions throughout the product life cycle—from design and manufacturing to product use and disposal—Daikin is aligning its business strategy with global sustainability imperatives.
Contribution to a Decarbonized Society
The approval of Daikin’s Net Zero Targets not only validates the company’s internal sustainability efforts but also enhances its credibility with stakeholders, including investors, customers, and policymakers. Many governments and industries are seeking partners that can contribute to national and global decarbonization goals, and Daikin’s recognition by the SBTi positions it as a trusted leader in this movement.
Moreover, the company’s climate strategy reflects a larger trend among Japanese corporations, which are increasingly committing to ambitious emissions reduction targets in line with global standards. With around 80 Japanese firms already certified under SBTi, Daikin’s achievement adds momentum to Japan’s national drive toward carbon neutrality.
As climate change intensifies, the role of corporations in mitigating emissions has never been more critical. For Daikin, the path forward involves constant innovation, collaboration with stakeholders across its supply chain, and the continued rollout of environmentally friendly technologies worldwide.
The company has emphasized that its ultimate goal is not just regulatory compliance or competitive advantage, but the creation of sustainable value for society. By promoting comfortable and healthy indoor air environments while minimizing environmental impact, Daikin aims to balance human well-being with planetary health.
The SBTi approval serves as a validation of this balance, ensuring that Daikin’s targets are not only ambitious but also achievable under the best available climate science. As the company progresses toward 2031 and 2050 milestones, its performance will be closely watched as a benchmark for the broader HVAC (Heating, Ventilation, and Air Conditioning) industry.
