The world is getting warmer and, for billions of people, more dangerous. For the No. 1 air-conditioning maker, Japan’s Daikin Industries Ltd., that’s a huge opportunity.
Global demand for air conditioning is on track to triple through 2050, according to the International Energy Agency. And with household incomes climbing in developing economies, it’s a good time to be in the business of cool air.
At the same time, air conditioners gobble up electricity and run on atmosphere-harming refrigerants, making them part of the problem — for now. Daikin has pledged to achieving carbon neutrality by 2050, a goal shared by the Japanese government. To make that happen, Daikin Chief Executive Officer Masanori Togawa is pouring billions of dollars into research and development, looking to build on technological breakthroughs that could make its machines more efficient.