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C o r p o r a t e S o c i a l R e s p o n s i b i l i t y R e p o r t

2 014C o r p o r a t e S o c i a l

R e s p o n s i b i l i t y R e p o r t

- -Web version

Every year the Daikin Group reports on its CSR (corporate social responsibility) activities. On the Sus-tainability section of the Daikin Web site, we have past years’ data and related information so that you can read the details of all activities we are involved in.

This PDF file contains all the fiscal 2013 information from the Sustainability section of our Web site. You may download and print it out.

Note: The printed version of the CSR Report 2014 focuses on our main activities and efforts. It can also be down-loaded as a PDF file.

Editorial Policy 2

CSR and Strategy 7 CSR and Strategy 8 Top Message 13 CSR Philosophy 15 Daikin Group Business Overview 20 CSR Targets and Achievements 23 Participation in the Global Compact 28 Honors for Daikin 29 Independent Opinions 32

CSR Management 34 CSR Promotion Activities 38 Corporate Governance 40 Compliance and Risk Management 42 Free Competition and Fair Business Dealings 46 Prohibiting Bribes 46 Information Security 47 Respect for Intellectual Property Rights 48 Respect for Human Rights 50

Key Activities 51 List of Fiscal 2013 Key Activities 52 Dissemination of Next-Generation Refrigerants 54 Creating a Market for Heat-Pump Heating Systems 59 Accelerating Product Development Globally 63 Diversity Management 67 Reforestation in Indonesia 71

Environment 75 Overview of Environmental Impact 76 Environmental Action Targets and Achievements 78 Low-Impact Products 81 Environmentally Conscious Design 84

Low-Impact Refrigerants 91 Promoting the Use of Inverter Products 94

Promoting the Use of Heat-Pump Type Space and Hot Water Heaters 96

Products That Help Customers Save Energy 98

Environmentally Conscious Fluorochemical Products 104 3R & Repair 106 Low-Impact Production 112 Preventing Global Warming — Production, Transportation 115

Recovering and Destroying Fluorocarbons from Customers' Air Conditioners 123

Green Procurement 127 Compliance with J-Moss 130 Management of Chemical Substances 132 Reducing Waste and Water 134

Environmental Management 138 Environmental Management System 140 Environmental Audits 145 Environmental Risk Management 146 Environmental Accounting 149 Environmental Education 152 Environmental Communication 154 Environmental Forums and Exhibits 155

Environmental Education and Awareness Activities 158 Protecting Biodiversity 160 Protecting Biodiversity 161 Biodiversity Awareness 168

History of Environmental Activities 170

Responsibility to Stakeholders 173 Responsibility to Stakeholders 174 Customers 177 Product Quality and Safety 179 Customer Satisfaction 186 Protecting Customer Information 192 Employees 193 Employee Evaluation and Treatment 197 Workplace Diversity, Equal Opportunity 198 Work-Life Balance 203 Labor Management Relations 207 Occupational Safety and Health 208 Fostering Human Resources 214 Business Partners 219 Philosophy on Suppliers 220 Working Closely with Suppliers 223 Green Procurement Guidelines 227 Shareholders and Investors 228 For Shareholders 229 Information Disclosure Policy 231 Communities 232 Promoting Art and Culture 234 Promoting Sports 236 Contributing to Education 238 Environmental Contributions to Society 242

A Good Corporate Citizen —Activities in Each Community 244

List of Daikin's Social Contribution Activities 264

Data 273

Third-Party Verification 286 Third-Party Verification 287

 Method of Calculating Greenhouse Gas Emissions Data 290

Overview of GRI Guidelines 293 GRI Sustainability Reporting Guidelines Version 3.1 (G3.1) 294

Contents

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Corporate Social Responsibility Report

-Web version-

Editorial Policy

2014

- 2 -Editorial Policy

- 3 -Editorial Policy

- 4 -Editorial Policy

- 5 -Editorial Policy

- 6 -Editorial Policy

Corporate Social Responsibility Report

-Web version-

CSR and Strategy

2014

CSR and Strategy 8 Top Message 13 CSR Philosophy 15 Daikin Group Business Overview 20 CSR Targets and Achievements 23 Participation in the Global Compact 28 Honors for Daikin 29 Independent Opinions 32

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- 33 -CSR and Strategy

Corporate Social Responsibility Report

-Web version-

CSR Management

2014

CSR Promotion Activities 38 Corporate Governance 40 Compliance and Risk Management 42 Free Competition and Fair Business Dealings 46 Prohibiting Bribes 46 Information Security 47 Respect for Intellectual Property Rights 48 Respect for Human Rights 50

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Corporate Social Responsibility Report

-Web version-

Key Activities

2014

List of Fiscal 2013 Key Activities 52 Dissemination of Next-Generation Refrigerants 54 Creating a Market for Heat-Pump Heating Systems 59 Accelerating Product Development Globally 63 Diversity Management 67 Reforestation in Indonesia 71

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Corporate Social Responsibility Report

-Web version-

Environment

2014

Overview of Environmental Impact 76 Environmental Action Targets and Achievements 78 Low-Impact Products 81 Environmentally Conscious Design 84 Low-Impact Refrigerants 91 Promoting the Use of Inverter Products 94 Promoting the Use of Heat-Pump Type Space and Hot Water Heaters 96 Products That Help Customers Save Energy 98 Environmentally Conscious Fluorochemical Products 104 3R & Repair 106 Low-Impact Production 112 Preventing Global Warming — Production, Transportation 115 Recovering and Destroying Fluorocarbons from Customers' Air Conditioners 123 Green Procurement 127 Compliance with J-Moss 130 Management of Chemical Substances 132 Reducing Waste and Water 134

Environmental Management 138 Environmental Management System 140 Environmental Audits 145 Environmental Risk Management 146 Environmental Accounting 149 Environmental Education 152 Environmental Communication 154 Environmental Forums and Exhibits 155 Environmental Education and Awareness Activities 158 Protecting Biodiversity 160 Protecting Biodiversity 161 Biodiversity Awareness 168 History of Environmental Activities 170

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Corporate Social Responsibility Report

-Web version-

Responsibility to Stakeholders

2014

Responsibility to Stakeholders 174 Customers 177 Product Quality and Safety 179 Customer Satisfaction 186 Protecting Customer Information 192 Employees 193 Employee Evaluation and Treatment 197 Workplace Diversity, Equal Opportunity 198 Work-Life Balance 203 Labor Management Relations 207 Occupational Safety and Health 208 Fostering Human Resources 214

Business Partners 219 Philosophy on Suppliers 220 Working Closely with Suppliers 223 Green Procurement Guidelines 227 Shareholders and Investors 228 For Shareholders 229 Information Disclosure Policy 231 Communities 232 Promoting Art and Culture 234 Promoting Sports 236 Contributing to Education 238 Environmental Contributions to Society 242 A Good Corporate Citizen —Activities in Each Community 244 List of Daikin's Social Contribution Activities 264

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Corporate Social Responsibility Report

-Web version-

Data

2014

- 273 -Data

- 274 -Data

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- 277 -Data

- 278 -Data

- 279 -Data

- 280 -Data

- 281 -Data

- 282 -Data

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- 284 -Data

- 285 -Data

Corporate Social Responsibility Report

-Web version-

Third-Party Verification

2014

Third-Party Verification 287Method of Calculating Greenhouse Gas Emissions Data 290

- 286 -Third-Party Verification

- 287 -Third-Party Verification

- 288 -Third-Party Verification

- 289 -Third-Party Verification

- 290 -Third-Party Verification

- 291 -Third-Party Verification

- 292 -Third-Party Verification

Corporate Social Responsibility Report

-Web version-

Overview of GRI Guidelines

2014

GRI Sustainability Reporting Guidelines Version 3.1 (G3.1) 294

- 293 -Overview of GRI Guidelines

- 294 -Overview of GRI Guidelines

- 295 -Overview of GRI Guidelines

- 296 -Overview of GRI Guidelines

- 297 -Overview of GRI Guidelines

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