Daikin Industries Ltd

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Direct Lobbying Transparency

Overall Assessment	Comment	Score
Moderate	Daikin Industries provides a reasonable but uneven level of transparency on its climate-policy lobbying. It names one concrete regulation—the Brazilian air-conditioner efficiency rule “PORTARIA Nº 234, DE 29 DE JUNHO DE 2020” that it sought to overhaul—while elsewhere referring only generally to “standards and energy-labelling systems” it promotes in Latin America, the Middle East and other regions, so the list of policies engaged is incomplete. The company is far clearer about how it lobbies: it describes running demonstration tests with three Brazilian universities, collaborating with the Japan International Cooperation Agency under a Public-Private Partnership programme, and carrying out “visits, technical instruction, and workshops” with specific targets including the Government of Brazil, the Embassy of Japan in Brazil and Japan’s Ministry of Economy, Trade and Industry. It also explains the outcomes it pursued, chiefly persuading Brazil to revise its efficiency standard and introduce a new labelling scale so consumers can differentiate product performance, and more broadly accelerating the global uptake of high-efficiency inverter air-conditioners to cut energy use and greenhouse-gas emissions. Together, these disclosures give a moderately clear picture of Daikin’s objectives and tactics, though the company identifies only one specific policy instrument it has tried to influence.	2

Lobbying Governance

Overall Assessment	Comment	Score
Moderate	Daikin reports that the officer in charge of the environment is responsible for this strategy and CSR and Global Environment Center are working to implement the strategy, and it convenes an environmental product meeting (a meeting to discuss improvement of products environmental aspects by sharing regional regulations and social trends, once a year) and a regional manager meeting (a meeting of global executives and the top management in headquarters including the CEO to discuss regional challenges, etc. once a year by region) to confirm the alignment with our medium-term strategic management plan FUSION which stipulates our policy of climate change. It also states a public commitment to conduct your engagement activities in line with the goals of the Paris Agreement and collaborates with international organizations and industry associations which are positive about addressing the climate related issues. However, the company does not disclose a dedicated governance process for reviewing or approving its lobbying positions, no specific criteria for assessing its participation in trade or industry associations, or formal oversight structure for ensuring that direct and indirect lobbying activities align with its climate objectives.	2