Content Performance It is important to develop and report specific and measurable KPIs for all material issues to increase comparability and provide accountability. Combining quantitative metrics with the narrative provides context to performance trends so that companies can monitor them and take corrective actions when required. Key recommendations Disclose KPIs for all material issues with a range of indicator types (input, output, process, implementation). Present data and metrics in a visual way, with at least three years of past performance data to demonstrate trends. Accompany the data with a clear narrative on performance trends, including areas of poor performance. Include a breakdown of data by region or division where appropriate. Methodology notes Scores limited for companies that do not undertake a materiality assessment or do not link KPIs to specific material issues. Of the reports we reviewed: Daikin Daikin’s Sustainability Report 2024 includes comprehensive performance information and data. The set of KPIs covers all relevant material ESG topics and includes a good mix of: Input metrics, such as material used for their products, Pollutant Release and Transfer Register (PRTR) substances emitted and transported, and employee-related metrics; Output metrics such as greenhouse gas (GHG) emissions, water and energy use, and customer satisfaction scores; Process metrics such as number of board meetings and number of major legal violations. The graphics to visualize the company’s performance show baselines and progress over at least three years or more. The KPIs reflect a good level of granularity in that they cover different operational levels and business segments. This includes regionally relevant data – divided by the group company, overseas group companies only, and companies in Japan specifically – as well as product- and customer-specific information. To ensure consistency of the data points, Daikin works with a third-party verifier to authenticate its data on GHG emissions, water use, wastewater, waste emissions and chemical substance emissions. The report and supporting graphics clearly highlight verified data points. The KPI section of the report is also available separately for access and download. % provide robust performance data that include KPIs for the most relevant material topics, with at least two years of progress data and supporting performance narrative. 0 1 2 3 4 5 6 8 0 1 2 3 4 5 6 8