Daikin Singapore has demonstrated its commitment to sustainability by redeeming Renewable Energy Certificates (RECs). The redemption of RECs represents Daikin Singapore's support for renewable energy generation and its contribution to the decarbonization of the energy sector. Each REC represents one megawatt-hour of renewable energy generation, which could come from sources such as solar, wind, or hydroelectric power. By purchasing and redeeming these certificates, Daikin Singapore is effectively funding the development and expansion of renewable energy projects, which in turn helps to reduce greenhouse gas emissions and combat climate change.

This decision represents a major milestone in Daikin Singapore's pursuit of sustainability objectives, exemplifying their proactive approach to minimizing carbon emissions. Through the utilization of RECs, Daikin Singapore effectively showcases their dedication to sustainability, extending this commitment to key stakeholders such as customers, employees, and investors. Daikin Singapore aims to achieve a 25% renewable energy target by 2025.

By leveraging on RECs, Daikin Singapore can effectively mitigate Greenhouse Gas (GHG) (Scope 2*) emissions. In addition, we design and produce energy-efficient products and management solutions that help lower our customers' energy consumption profiles.

Daikin's use of RECs is just one example of how organizations can leverage market-based instruments to support renewable energy generation and decarbonization. As more companies and governments set ambitious climate targets, the demand for RECs and other renewable energy certificates is likely to increase, driving further investment in clean energy technologies and accelerating the transition to a low-carbon economy.

*Scope 2 emissions encompass emissions resulting from the consumption of purchased or acquired electricity, steam, heating, or cooling by a company. These emissions occur at the facility where the electricity is generated, rather than at the company's own facilities.