Daikin
Lacks transparency. Publishes some details, but doesn't show its workers are paid and treated fairly.
Last researched 3 November 2026 · 7 sources
Japanese maker of air conditioners and heat pumps.
There's no proof Daikin pays more than the legal minimum, which in Thailand and China is below a living wage, and it has no full independent audit.
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Why it's graded Lacks transparency
- Not met: Meets 3 of 6 Good requirements.
- Holds the grade back: It doesn't show that workers are paid a living wage, and isn't certified as working towards one. On Track needs at least one of these.
- It isn't Harm on record: the most serious problem on its record (forced labour, last recorded in 2024) has been put right.
- Lacks transparency is still a poor grade: in supply chains like this, workers who can't be seen to be treated fairly are usually underpaid or unprotected.
Good requirements 3 of 6
- Not met: Pays a living wage, or holds a strong fair-pay certificationLiving wage: no evidence
- Not met: Respects worker rightsSome of its products are made in countries such as Thailand and China, where unions are heavily restricted, and it has no full supply chain audit.
- Not met: Supply chain independently audited or certified, or at least 80% made in countries with strong labour standards
- Met: No child or forced labour findings, other than one it has put rightForced labour was found in its supply chain in 2024, which it has since put right. That's listed below and no longer counts against the grade.
- Met: Names the factories or farms that make its products, or is fully certified by a scheme that holds and audits that listMakes its products in its own factories
- Met: High-risk raw materials (such as timber and cotton) traced or certified, or not a major part of its rangeNone recorded in a major share of its range
Red flags 2
- Red flag: No evidence it pays a living wage
- Red flag: Made partly in countries with poor worker rights, without a full independent audit of its supply chain
Stars it would earn as Good
None yet. Stars only show on Good companies. About stars
Where it's made
From Daikin's own disclosure: it makes its products in its own factories.
| Country | Worker rights | Legal minimum wage | Forced labour risk |
|---|---|---|---|
| Japan | Strong protections | Close to a living wage | Low |
| Thailand | No guarantee of rights | Below a living wage | Moderate |
| China | No guarantee of rights | Below a living wage | Moderate |
| Malaysia | No guarantee of rights | Below a living wage | Moderate |
| India | No guarantee of rights | Well below a living wage | High |
| United States | Systematic violations | Below a living wage | Low |
| Belgium | Regular violations | About a living wage | Low |
| Czechia | Strong protections | Close to a living wage | Moderate |
| Türkiye | No guarantee of rights | Below a living wage | Very high |
| Brazil | Systematic violations | Below a living wage | Moderate |
| Mexico | Regular violations | Below a living wage | Moderate |
Evidence
What we found
- No high-risk raw materials (such as timber and cotton) are recorded in a major share of its range, so the raw-material check doesn't hold it back for Good.
- Modern slavery statement
- Owns or runs its own production
Research notes Daikin makes air conditioners in its own plants in Japan, Thailand, China, Malaysia, India, the US, Belgium, the Czech Republic, Turkey, Brazil and Mexico, but does not say which plants supply Australia or give production shares. Daikin Australia files modern slavery statements, and the group asks suppliers to complete CSR questionnaires. In 2024 it confirmed forced labour indicators at a Malaysian plastics supplier and in January 2025 reached a settlement under which most workers received remediation. It publishes no living wage commitment.
What independent sources say
| Source | Result | Details |
|---|---|---|
| Australian Modern Slavery Register | Listed | Daikin Australia Pty Ltd lodges joint modern slavery statements with Airmaster Corporation, most recently for July 2025 to June 2026. View |
| Business & Human Rights Resource Centre | Problem found | BHRRC published Daikin's responses on abuses of Bangladeshi workers at its Malaysian supplier Kawaguchi Manufacturing (2024). View |
| Baptist World Aid Ethical Fashion Report | Not covered | Baptist World Aid's Electronics Industry Report (last edition 2016) did not cover air conditioner makers. View |
Confirmed issues 1
Only confirmed problems are listed, and old ones drop off after 10 to 15 years. A problem the company has fully put right no longer counts against it, and nor does one it finds and is fixing itself. How problems are counted
| Last recorded | What happened | Made amends? |
|---|---|---|
| 2024 | Daikin confirmed in 2024 that Bangladeshi workers at Kawaguchi Manufacturing, a Malaysian plastics supplier to Daikin Malaysia, faced unpaid wages, recruitment fees and passport retention, indicators of forced labour (BHRRC, 2024). Source · search the archivePut right The company has put this right for the people affected, so it no longer counts against the grade. | YesJanuary 2025 settlement gave most workers remediation; Daikin covered food and medical costs and, with Sony, Panasonic and RBA, repaid recruitment fees. |
Unconfirmed reports
Credible reports that haven't been confirmed by a regulator, completed investigation or the company. They're shown for your information and don't affect the grade.
- A January 2019 fact-finding report by Indian rights groups described police violence and arrests of striking workers, union non-recognition and dismissals at Daikin's air conditioner plant in Neemrana, Rajasthan (Sabrang India, 2019). Source
Sources and actions
Sources 7
Show all 7 sources
- 2nd Daikin response re concerns of contract cutting (BHRRC) · search the archive · Dec 2024: suspension may be unavoidable; exploring relief and worker-driven remedy with ASSC, Sony, Panasonic
- Update re situation for Kawaguchi Manufacturing workers (BHRRC, Feb 2025) · search the archive · Separate January 2025 settlement with Daikin led to most workers receiving remediation; Daikin covered food and medical costs
- Who owns Daikin and where are the air conditioners made? (SlashGear) · search the archive · Daikin factories in Japan, US, Belgium, Thailand, China, Czech Republic, Malaysia, India, Mexico, Turkey and Brazil
- Daikin, Panasonic and Sony respond to forced labor violations by supplier (International Trade Today) · search the archive · Daikin confirmed Kawaguchi abuses: wage theft, recruitment fees, passport confiscation (2024)
Published by Daikin or its owner
- Where can I purchase a Daikin air conditioner? (Daikin Australia) · search the archive · Sold in Australia through 450+ Daikin Specialist Dealers
- Daikin Australia / Airmaster joint modern slavery statement 2025-26 · search the archive · Daikin Australia Pty Ltd lodges annual modern slavery statements
- Daikin Integrated Report 2025 · search the archive · Group has more than 100,000 employees (FY to March 2025); new plants in India
Company details
- Owned by
- Daikin Industries, Ltd.
- Headquarters
- Japan
- Employees
- About 100,000
- Last researched
- 3 November 2026
- Cite this page
- Labour Lens, "Is Daikin ethical? Labour rating", https://www.labourlens.net/brand/daikin, last researched 3 November 2026, accessed [date].
- Method
- Researched with AI assistance against published rules. How we check · What Lacks transparency means
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