June 23, 2022
Sumitomo Realty & Development Co., Ltd.
Daikin Industries, Ltd.

Comprehensive collaboration agreement signed for thedecarbonization of air conditioning systems
Phase 1: Regeneration and reuse of recovered refrigerants
Reducing refrigerant production to help lower CO2 emissions, secure a stable supply ofrefrigerants, and establish a recycling system
Sumitomo Realty & Development Co., Ltd. (hereinafter “Sumitomo Realty”) and Daikin Industries, Ltd.
(hereinafter “Daikin”) on June 23 (Thursday) concluded a comprehensive collaboration agreement in thearea of air conditioning systems for office buildings, etc. with the aim of contributing to the realization of adecarbonized and sound material-cycle society. The two companies will jointly promote initiatives toexamine and optimize the energy-saving effects of air conditioning systems and to recycle and reuse air
conditioning refrigerants.*1
Under the comprehensive collaboration agreement, we will first work with the Daikin group and otherbusiness partners to regenerate and reuse all refrigerants*2 recovered from air conditioners in officebuildings that we manage and turn them into recycled products. In this way, we will reduce CO2 emissions
from refrigerant production and help build a resource-recycling system that contributes to a stable supply ofrefrigerants. Furthermore, we will consider various other collaborative projects to further contribute to the2050 decarbonization initiative.

Comprehensive
collaborationagreement for thedecarbonization of airconditioning systems
Sumitomo Realty, which owns andmanages more than 230 officebuildings in Tokyo, promotes thedecarbonization of air conditioning,which accounts for the majority ofbuilding energy use

Recovery, regeneration, andrecycling of air conditioning
refrigerants

Daikin,Daikin, whichwhich has
has thethe largest
largestmarketmarket share
share ofof air
air conditioners
conditioners andandrefrigerants
refrigerants inin Japan,
Japan, promotes
promotes
decarbonization
decarbonization not
not only
only when
when
products are sold but also when
products are sold but also when
they are used
they are used

Examination and optimizationof the energy-saving effects of
air conditioners*1: Air conditioning refrigerant: A heat-mediating gas that flows between the indoor unit and the outdoor unit of air conditioners.
*2: Regeneration and reuse of all refrigerants: We plan to regenerate all R410A and successor refrigerants.

1. Objective of the comprehensive collaboration agreement for the decarbonization of air
conditioning systems
Nearly half of the energy consumed in office buildings is used for air conditioning systems. In promoting
decarbonization jointly with tenant companies, one of the key challenges is to improve the efficiency of air
conditioning systems and its efficient operation. Regarding greenhouse gases emitted from air conditioners,
the amount is the greatest when air conditioners are in operation. Refrigerants have the second-greatest
impact on the emission amount. Therefore, it is important to appropriately manage the use and disposal of
air conditioners in reducing greenhouse-gas emissions. The two companies will contribute to the realizationof a decarbonized and sound material-cycle society by working together in various areas, including theintroduction of high-efficiency air conditioners for office buildings, the appropriate use of air conditioners
throughout their life cycle, and the management and regeneration of refrigerants.

2. Phase 1 project: Regeneration and reuse of all recovered refrigerants
Sumitomo Realty will cooperate with its business partners to regenerate and recycle all refrigerants, inprinciple, recovered from air conditioners in the office buildings that it manages. The Daikin group will fully
support in this initiative.
CO2 is generated during the production of refrigerants (gases that are pumped in when air conditioners
are installed or replaced) because of energy consumption. Until now, it has been a common practice todestroy refrigerants once they were recovered. However, we will regenerate them for reuse to help reduce
production and lower CO2 emissions.
In addition, there are concerns that the supply of refrigerants may run short in the future. An increase in
the amount of recovered refrigerants regenerated will not only contribute to a stable supply, but also
facilitate a transition to a sound material-cycle society.

3. Future developments regarding the comprehensive collaboration agreement for thedecarbonization of air-conditioning systems
We will consider various collaborative projects in the future, starting with the regeneration and reuse of all
recovered refrigerants. Future initiatives may include the use of regenerated refrigerants for all airconditioners in Sumitomo Realty’s office buildings, and efforts to examine and optimize the energy-saving
effects of air-conditioning systems.

Refrigerant regeneration process*Regeneration and reuse of all recovered refrigerants (current initiative)
We will aim to use regenerated refrigerants for all air conditioners in
the future.

Transporting
regenerated
refrigerant incylinders

Sumitomo Realty office buildings

Recycling throughrefrigerant regeneration

Refrigerant regeneration plant

Transporting
recoveredrefrigerant incylinders

Daikin and other maintenance providers

Refrigerant
destruction facility

＜Reference＞
Progress of measures against global warming related to refrigerants
The production and use of hydrofluorocarbon (HFC) air-conditioning refrigerants are being reduced instages worldwide as part of an effort to curb global warming in accordance with the Montreal Protocol.*3 In
Japan, stringent requirements have been implemented with respect to the management of refrigerants byfacility administrators, leakage prevention, and recovery at the time of disposal, in line with the “Act onRational Use and Appropriate Management of Fluorocarbons” (hereinafter Freon Emission Control Law).

Destruction and regeneration of refrigerants“Destruction” refers to the process of neutralizing chlorofluorocarbons and other substances that have global
warming effects when leaked into the atmosphere. “Regeneration” refers to the process of removing
impurities—oil and other substances that are mixed in during use—and adjusting the composition of therefrigerants to turn them into a reusable product.
By removing impurities, refrigerants recovered at the time of replacement or maintenance of air
conditioners can be regenerated into refrigerants meeting the quality standards and reused. In many cases,
however, refrigerants are simply destroyed after recovered from discarded commercial-use refrigerators, airconditioners, etc.*4

Environmental initiatives at Sumitomo Realty and Daikin◆Sumitomo Realty & Development Co., Ltd.

(Head office: Shinjuku-ku, Tokyo, President: Kojun Nishima)
Sumitomo Realty has been working to solve social issues through its business activities under its
fundamental mission to “Create even better social assets for the next generation.”*Sustainability initiatives (Details):https://www.sumitomo-rd.co.jp/english/sustainability/◆Daikin Industries, Ltd.
(Headquarters: Osaka City, Osaka Prefecture; Representative Director, President and CEO: MasanoriTogawa)Daikin has made life on earth more comfortable by utilizing the various air-related technologies andexpertise that have been cultivated over the years. Daikin will continue to provide new values to makepeople healthier and the living space more comfortable while conserving energy.
*Sustainability initiatives (Details):https://www.daikin.com/csr

Contribution to SDGs

The initiatives related to this release contribute to the following SDGs objectives:*3: The Montreal Protocol on Substances that Deplete the Ozone Layer was adopted in 1987 to protect human health and the environment by identifying
substances that may destroy the ozone layer and by regulating their production, consumption, and trade.
In 2016, the protocol was amended (Kigali Amendment) to add HFCs, which do not directly destroy the ozone layer but have strong greenhouseeffects, to the scope of regulation.
*4: Report on the evaluation and review of the enforcement status of the revised Freon Emission Control Law of 2013 (Draft) (JP):https://www.env.go.jp/council/06earth/furon12/mat004.pdf