LIXIL Group Corporation
CSR Management 2015

Reporting period:
FY2014 (April 1, 2014 to March 31, 2015)

Applicable organizations:
Activities of affiliated companies, including LIXIL Group Corporation and LIXIL Corporation.
When the scope of application is limited for a particular item, this is pointed out in the notes, etc.
(Publication content from September 30, 2015)*The cover image is the Sanitation In Schools Improved! 2018 Project that provides proper knowledge and acomfortable toilet environment (left: India, right: Kenya).

LIXIL Group Corporation CSR Management 2015
【INDEX】
CSR Policy

Environmental Activities

CSR Policy ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・03
CSR Promotion Structure ・・・・・・・・・・・・・・・・・・・・04
CSR Targets by Category and Results ・・・・・・・・・・・05

Environmental Principles ・・・・・・・・・・・・・・・・・・・・68
Environmental Vision ・・・・・・・・・・・・・・・・・・・・・・・69
Environmental Strategy ・・・・・・・・・・・・・・・・・・・・・70
Environmental Management ・・・・・・・・・・・・・・・・・74

Stakeholder Dialogue

Medium-term environmental Targets ・・・・・・・・・・77

Stakeholder Dialogue ・・・・・・・・・・・・・・・・・・・・10Top Dialogue ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・10
Dialogue by Task ・・・・・・・・・・・・・・・・・・・・・・・・・・・10
Outline of Dialogue sessions
with Local Communities・・・・・・11Material Balance ・・・・・・・・・・・・・・・・・・・・・・・・・・・81
Products and services
Eco-friendly design ・・・・・・・・・・・・・・・・・・・・・・・・85
Eco-product database ・・・・・・・・・・・・・・・・・・・・・88
Proposals to Our customers ・・・・・・・・・・・・・・・・・91
Business Activities

For Our Customers

Reducing Global Warming ・・・・・・・・・・・・・・・・・・92

Increasing Customer Satisfaction ・・・・・・・・・・・・・・14

Recycling Resources ・・・・・・・・・・・・・・・・・・・・・・・93

Showroom Initiatives ・・・・・・・・・・・・・・・・・・・18

Preventing Pollution ・・・・・・・・・・・・・・・・・・・・・・・96

Product Safety Initiatives ・・・・・・・・・・・・・・・・・・・・20

Compliance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・99

In Partnership with Our Suppliers
Procurement Policy ・・・・・・・・・・・・・・・・・・・・・・・・26

Intellectual Property Activities ・・・・・・・・・・・・・・100

CSR Procurement ・・・・・・・・・・・・・・・・・・・・・・・・・・28
Communicating with Our Suppliers ・・・・・・・・・・・・29

Risk Management ・・・・・・・・・・・・・・・・・・・・・・・・101

In Partnership with

Information Security ・・・・・・・・・・・・・・・・・・・・・・102

Society and Local Communities

Editorial Policy ・・・・・・・・・・・・・・・・・・・・・・・・・・・103

Water Resources Conservation Activities ・・・・・・・・31
Forest Ecosystem Conservation Activities ・・・・・・・38

Corporate GovernanceParticipation in local Communities ・・・・・・・・・・・・40

See the Corporate Governance section on the LIXIL
Corporation website

In Partnership with Our Employees(http://www.lixil-group.co.jp/e/about/governance/system.htm)

Basic Approach to Human Resources ・・・・・・・・・・44

for information on the Corporate Governance Framework,

Internal Communication ・・・・・・・・・・・・・・・・・・・・47

the Group Management Philosophy, Group Charter ofPromoting Diversity ・・・・・・・・・・・・・・・・・・・・・・・49

Corporate Behavior and Internal Control Systems.

Occupational Safety and Health・・・・・・・・・・・・・・・53
Creating a Better Workplace ・・・・・・・・・・・・・・・・・・56
Fostering Human Resources ・・・・・・・・・・・・・・・・・・61
Labor-management relations ・・・・・・・・・・・・・・・・64

1

CSR Policy
LIXIL has establisheda CSR Policy and a CSR promotion system
to ensure it makes greater contributions to therealization of a sustainable society.

2

CSR Policy
The LIXIL Group’s corporate social responsibility (CSR) initiatives are part of a process focused on realizing theGroup’s corporate philosophy, which aims to have “the Group’s superior products and services contribute toimproving people’s comfort and lifestyles.” Based on this corporate philosophy, we have set out CSR policies
under three priority themes: innovation, sustainable, and integrity. We signed the United Nations Global
Compact in July 2013. Aiming to respect the compact’s 10 principles in four areas, we have established“Exercising due diligence for human rights” and “Promoting procurement based on CSR” as themes for CSR
initiatives that we are currently addressing.

CSR policy
Link to Good Living—The LIXIL Group is committed to building and expanding worldwide “bonds” that lead to agood living and good life. Aiming to improve people’s comfort and lifestyles, we endeavor to pursue innovation todevelop better products and services, thereby contributing to the sustainable development of society.
In addition to our ongoing dialogue with stakeholders, we stand firmly committed to business activities rooted in
the concept of integrity.

Priority themes

Planned activities

1. To address the challenge of global climate change
and declining water resources, we will pursue
innovation in developing products and services thatwill help achieve a net zero energy balance in houses
and buildings as well as facilitate efficient use ofwater resources.

Innovation
1. Work to increase efficiency in the use of energy
and water resources
2. Work to build a senior-friendly, cooperation-basedsociety, focusing on healthy, safe and secure living
conditions

2. To address concerns over healthy, safety and secureliving conditions around the world, we will pursue
innovation in developing products and services thatwill improve sanitary conditions, mainly related toplumbing systems, as well as help build a society thatis senior-friendly and supportive of mutual assistance.

Sustainability
3. Contribute to conservation of the global
environment and development of local communities

3. To contribute to conservation of the global
environment and biodiversity as well as thedevelopment of local society, we will work to facilitatecommunication and cooperation with local
communities, NGOs and other organizations.

4. Ensure an appropriate work environment andresource allocation in supply chain operation

4. To ensure proper and fair operations of our supply
chain, we will work to facilitate communication andcooperation with our suppliers, with a focus on
creating an appropriate work environment andproper resource allocation as well as human rights
protection.

Integrity
5. Maximize customer satisfaction in cooperation withbusiness partners
6. Develop a corporate culture characterized bysuperb leadership and diversity

5. To ensure the safety and hygiene of our products
and services and maximize satisfaction of end users,
we will promote communication with customers andcooperation with business partners.

7. Promote speedy and transparent disclosure andshare social contribution visions with our
stakeholders

6. To help accommodate various social challenges, wewill develop a corporate culture that can foster strong
leadership, respect diversity in terms of nationality,
gender, race, age, values and others, and leverage ourstrengths linked to personnel diversity.
7. To win and maintain the trust of our shareholders
and investors and achieve sustainable growth insociety, we will promote speedy and transparent
disclosure of information and share our visions andplans for social contributions with our stakeholders tofacilitate mutual understanding on this issue.
3

CSR Promotion Structure
Establishing promotional systems
In the fiscal year ended March 31, 2014, under the management of the CSR Promotion Committee, four groups
responsible for four stakeholder groups—customers, suppliers, employees, and the environment—set targets
and advanced initiatives accordingly. In April 2014, to coincide with the launch of the Global Management
Committee (GMC), at which all members of the senior management team convene, we reorganized systems forpromoting CSR initiatives. For each of the regions and operating companies (each region of, and each operatingcompany in, Japan, China, Asia, North America and Europe), a person in charge of facilitating the four groups wasappointed, on the basis of which LIXIL Group’s global management system was created. The GMC determines
priority tasks of the Group, and the senior management team exercises its leadership in relation to such tasks.
We signed the United Nations Global Compact in July 2013. Aiming to respect the compact’s 10 principles in fourareas, we have established “Exercising due diligence for human rights” and “Promoting procurement based on
CSR” as themes for CSR initiatives that we will begin advancing proactively in the fiscal year ending March 31,
2015.
* See the following link for information on LIXIL’s membership of the United Nations Global Compact

Identifying materiality
As of July 2014, taking into account business areas and sizes and value chains, we are identifying priority tasks
that reflect the opinions of external experts and preparing action plans. From here on, LIXIL Group willappropriately disclose, on its website, information regarding identified priority tasks and developments andaccomplishments of activities based on midterm action plans. The identification of materiality (priority tasks) isthe process of putting into practice important themes of the CSR Policy and specific activities. This process has
been examined with reference to the item of Material Aspects in the GRI G4 Guidelines.

4

CSR Targets by Category and Results
Reduce global environmental burden build recycling societyPart of a company’s responsibilities to society entails efforts to combat environmental issues, which also
represents a key proposition for humankind. Our integrated group-wide management system has served toincorporate the challenges facing the LIXIL Group, including our efforts to reduce environmental impacts throughreduced energy usage and strict compliance with environmental laws and regulations.
* Click here to learn more “Environmental Activities”* Click here for the scope of data collection

Enhance environmental performance (LIXIL Group’s medium-term environmental goal)
Task

KPI

FY2014 Targets

FY2014 Results

Improveenvironmental
management
system*1

Number of baseswith newly acquired
ISO 14001
certification

Increaseacquisition of ISO
14001
certification
among logistics
divisions in Japan

Expansion
completed to 16
logistics
divisions inJapan

Unify evaluation
methods forenergy-saving
products*2

Check accuracy ofevaluation methods

Acquirethird-party
warranty for the
calculation
method andresults for thecontribution to
reduction of GHG
emissions fromenergy-saving
products
1.5 times versus
FY2010 level(5,160,000 GJ)

Third-party
warranty for thecontribution to
reduction of
GHG emissions
in Japanacquired

Reduce 9.3%
versus FY2010
level (56,600,000
GJ)

Reduce 10.3%
versus FY2010
level(55,800,000 GJ)

Reduce 50%
versus FY1990
level (403,000
tons)
Reduce 1% versus
FY2013 level3(12,356,000 m )Reduce 52%
versus FY1990
level (384,000
tons)
Reduce 21%
versus FY2013
level (9,947,000
3m)

Contribute to
reduction of energy
use in civilian sector
in Japan by advancing
performance of
products andpopularizing them*2
Reduce total energy
consumption in
procurement,
manufacturing, sales,
and waste disposal*1
Reduce CO2 emissions
at operating bases inJapan*2

Energy reduction
contribution(reduction ofenergy use for
products versus
1990 level × sales
volume)Total energy
consumption

Reduce water use in
manufacturing
activities*1

Water use

CO2emissions at
operating bases in
Japan

5

1.29 times
versus FY2010
level (4,840,000
GJ)

Our
Evaluation○○

FY2015 Targets
・Preparations for
migration to FY2015
standards: migrationin 2016・Expand applicablesites at groupcompanies in Japan
Assess and set new
targets for thecontribution to
reduction of GHG
emissions fromenergy-saving
products on a global
level

2 times versus
FY2010 level

×○

Maintain 10%
reduction comparedto FY 2010○

Maintain 50%
reduction comparedto FY 1990○

Assess and set new
targets for the stateof water use on a
global level

Supply chain management *2
Quality, cost, delivery plus the environment have served as important criteria for evaluating our supplier partners.
Starting in the year ended March 2013, we commenced efforts to ascertain and improve labor issues, humanrights and other social issue across our entire supply chain.
* Click here to learn more “In Partnership with Our Suppliers”

Build supply chain taking into consideration labor conditions and resource allocation
Task

FY2014
Targets

FY2014
Results

Japan

85%(Percentage ofcompanies: 15%)85%
(Percentage ofcompanies: 15%)

Overseas80%(Percentage ofcompanies: 40%)82%
(Percentage ofcompanies: 43%)

Japan

85%,
46 priority
surveyed items

92.6%,
46 priority
surveyed items

Overseas85%,
66 priority
surveyed items

91.4%,
66 priority
surveyed items

KPI

Establish
commonprocurement policies
andguidelines

Percentageoftransaction
amountConduct
questionna
ire survey
andfollow-up
activities

Percentage
of priority
surveyed
items
compliedwith

Our
Evaluation○○

FY2015
Targets
88.9%(Percentage ofcompanies: 21.9%)
Being calculated

Maintain at least 90%
46 priority surveyed
items
Maintain at least 90%
66 priority surveyed
items＊Japan: Procurement by operating bases＊Overseas: Procurement by operating bases

Product safety *2
We strive to be a leader in product safety activities because of our position as a manufacturer that carries
products supporting the comfortable and safe living of consumers. We have established a product safety
promotion system and created a culture and frameworks for supplying safe products. At the same time, weconvey appropriate information to consumers and strive to gain their understanding. We have established aculture of product safety as a corporation, which includes responding appropriately whenever any incident may
occur.
* Click here to learn more “For Our Customers”

Establish system for development of safe products and build product safety culture
Task

KPI

To prevent
occurrence orrecurrence, reflect
accident
information andquality informationin designs andconduct
educational
activities
Hold discussions
with experts andcontinue productsafety initiatives
and reform ofsystems

Application
percentage of
product safety
relatedregulations(accidents inwhich products
are cause orsuspected
cause)
Hold
discussions
about productsafetyFY2014
Targets

FY2014
Results
0 (the number of new major productaccidents is counted once the cause
has been determined)

0 accidents

2 times

4 times ((1) entry in the Best
Contributors to Product Safety Awards
and explanation of status of activities
to judges, (2) received third-party
evaluation in sustainability consumer
meeting, (3) participated in Product6

Our
Evaluation

FY2015
Targets○0
accidents○

4 timesStrengthen
dissemination of
information aboutmaintenance,
product safety, andaccident prevention

Number of
times
information
disseminatedto customers

4 times,participatedin productsafetyseminars,
distributed
maintenanceinformation,
etc.

Safety Working Group sponsored by
the Ministry of Economy, Trade andIndustry, (4) held 4th LIXIL Product
Safety Dialogues, in which dialogues
were conducted between experts and
LIXIL quality officers)
6 times (product safety seminars: 2
times (Shimane/Miyazaki), consumer
group seminars: 1 time (Saitama
Living University), participation in
consumer education festival andpresentation of the essence of LIXIL
consumer education and tools: 3times (Osaka, Shizuoka, Kanagawa))○

6 times

Fostering an improved corporate culture (Human resource utilization) *2
Employees represent a key stakeholder supporting corporate activities. We have positioned diversity as one of
our top priorities in order to foster a corporate culture where employee can thrive as well as exhibit theircreativity and energy. Based on a careful analysis of our current workforce composition and human resource
utilization, we are focusing on developing the leaders of tomorrow and emphasizing support for women in theworkplace in Japan, in particular.
* Click here to learn more “In Partnership with Our Employees”

Encourage performance of diverse personnel and develop platform to enable employees toperform to their full potential and advance
Task

KPI

Identify, train,
and promote
diverse talented
personnel

Percentage ofwomen inmanagerial posts
Percentage ofwomen among
regularly recruited
new hires
Percentage ofwomen participatinginleadership training
Holding of meetings

Promoteunderstanding ofdiversity andcreateeducational
opportunities

Expand andimprove support
systems toadvanceWork-Life-Flexibility

Activities of LIXIL
Women’s Network

Development ofsystems and rules

FY2014
Targets

FY2014
Results

Our
Evaluation

FY2015
Targets

4%

5.2%

○

At least 30% of
hires

At least 30%

32.7%(entered company in April
2014)

○

At least 30%

At least 15%

21%○

At least 20%

At least 12 time a
year
Hold events andexpand network

48 times (actively held
throughout the country)
Held nationwide
conference, forums, andworkshops, andexpanded network tomajor locations
nationwide
Assess state of systems
use and promote use of
systems○

At least 12 timea yearHold events andfurther expand
network

Entrench systems
introduced andpromote their use

○

○

7

Entrenchsystems
introduced andpromote theiruse, andconsider othersupportmeasuresIn partnership with society and local communities *1
The LIXIL Group hosts dialogue sessions at its factories, showrooms, and storefronts on the themes ofcommunity contributions and community interaction with local governments, neighborhood associations, andstakeholders working and living in the local community.
* Click here to learn more “In Partnership with Society and Local Communities”

Promote communication with local communities
Task

KPI

Hold
dialogues
with local
communities

Number of
dialogues
held

FY2014
Targets
Hold at 13
plants, 18
sales bases,
and 5 stores

FY2014
Results
Hold at 13 plants, 17 sales bases, and 5
stores(Implemented from FY2012 for a cumulative
39 plants that constitute all plants)

Our
Evaluation△

FY2015
Targets
22 salesbases,
and 5
stores

Initiatives to solve world health issues *2
In fiscal 2013 we officially approved of the U.N.’s Millennium Development Goals and began efforts to help
improve living spaces of people in poverty around the world and assisting with the construction of health andsafety facilities and institutions.
* Click here to learn more about the SISI 2018 Project

SISI 2018 project
Task

KPI

Provide children withhygienic environments
Collaborate with
UNICEF’s Global WASH
Program,which contributes toUnited Nations
Millennium
Development Goal (7)Number ofschool toilets
improved
and children
providedwitheducational
support

FY2014
Targets
164,000
children2018 target
cumulative
total:
2,018,000
children

FY2014
Results
Approximately 154,600
children in China, Kenya,
the Philippines, Vietnam
and India (approximately
136 schools)
Cumulative total of
approximately 216,400
children (approximately
259 schools)[Scope of Activities]*1: Excluding companies that have been integrated for less than three years*2: LIXIL Corporation only

8

Our
Evaluation-

FY2015
Targets
Plans to expand
activities tofacilities, etc.
other thanschools. The
numerical
targets are
currently being
formulated.

Stakeholder Dialogue
The LIXIL Group emphasizes ongoing engagementwith a broad range of stakeholders
through stakeholder dialogue sessions
to promote two-way communication.

9

Stakeholder Dialogue
Engagement policy
LIXIL Group emphasizes the importance of engagement with a variety of stakeholders and holds two-way
dialogue sessions. By answering the demands and expectations of society learned through these sessions, we
aim to contribute to the development of a sustainable society.

Top Dialogue
In order to promote general CSR management at the
LIXIL Group, we host dialogue sessions between
senior management and relevant stakeholders.

Expectations for the LIXIL Group as it Seeks to
Become a Global Leader in Living and Housing
Solutions and the Purpose of Promoting CSR (heldon June 20, 2012)
The LIXIL Group’s social mission is to build and expand
worldwide “bonds” that lead to good living and goodlife. Three experts were invited to hold an opinion
exchange discussing the question of what society’s
demands are in relation to the promotion of CSR
management and what challenges LIXIL needs to takeon.

Dialogue by Task
Dialogue sessions were held on each of the tasks LIXILGroup needs to tackle. These sessions were held
under the guidance of each CSR Promotion
Committee group.

4th Product Safety Dialogue
Adopting Active Communication with Consumers
and Working to Improve a Product Safety Culture(held on March 27, 2015)
LIXIL works to incorporate third-party evaluations on
its product safety activities so that customers canalways safely use its products. The fourth productsafety dialogue invited experts including advisory
specialists for consumers' affairs, consumer education
supporters, and science and technology journalists toshare their views on product safety activities that
LIXIL should be carrying out【List of dialogue sessions to date】* 3rd Product Safety Dialogue — Building Collaborative Relationships that Transcend Barriers and Establishing a
Product Safety Culture that Contributes to the Future (held on March 25, 2014)* 2nd Product Safety Dialogue — Product Safety Education that Delivers Peace of Mind to Customers and Leads
to Action (held on September 18, 2013)* 1st Product Safety Dialogue - LIXIL Initiatives and Consumer Education (held on January 9, 2013)10

Outline of Dialogue Sessions with Local Communities
Dialogue sessions with representatives of local government, community
associations and stakeholders who work and live locally were held at a LIXIL Groupfactory, showroom and store, based on themes such as community engagement
and community contributions.

List of LIXIL Corporation production plants where sessions were held [Total to 39 locations]
FY 2012
Shimotsuma Plant(Shimotsuma City, Ibaraki Prefecture)
FY 2013Ishige Plant (Joso City, Ibaraki Prefecture)
Otani Plant (Tokoname City, Aichi Prefecture)
Ariake Plant (Nagasu Town, Tamana County, Kumamoto Prefecture)
Ichinoseki Plant (Ichinoseki City, Iwate Prefecture)
Iwai Plant (Bando City, Ibaraki Prefecture)
Yokohama Plant (Midori Ward, Yokohama City, Kanagawa Prefecture)
Handa Plant (Handa City, Aichi Prefecture)
Yamato Plant (Sakuragawa City, Ibaraki Prefecture)
Ibuki Plant (Tarui Town, Fuwa County, Gifu Prefecture)
Hisai Plant (Tsu City, Mie Prefecture)
Nabari Plant(Nabari City, Mie Prefecture)
Aoyama Plant(Iga City, Mie Prefecture)
Tsuchiura Plant (Tsuchiura City, Ibaraki Prefecture)
Chita Plant (Chita City, Aichi Prefecture)
Tsukuba Plant (Tsukuba City, Ibaraki Prefecture)
Kashima Plant (Kashima City, Saga Prefecture)
Enokido Plant (Tokoname City, Aichi Prefecture)
Saga Plant (Taku City, Saga Prefecture)
Oyama Plant (Oyama City, Tochigi Prefecture)
Onomichi Plant (Onomichi City, Hiroshima Prefecture)
Kumayama Plant (Akaiwa City, Okayama Prefecture)
Kiryu Plant (Kiryu City, Gunma Prefecture)
Oyabe Plant (Oyabe City, Toyama Prefecture)
Tono Plant (Ena City, Gifu Prefecture)
FY 2014
Ueno Midori Plant (Iga City, Mie Prefecture)
Kurisawa Plant (Iwamizawa City, Hokkaido)
Hikone Plant (Hikone City, Shiga Prefecture)
Okinawa Plant (Ginowan City, Okinawa Prefecture)
Fukaya Plant (Fukaya City, Saitama Prefecture)
Tokoname Higashi Plant (Higashiura Town, Chita Ward, Aichi Prefecture)
Sukagawa Plant (Sukagawa City, Fukushima Prefecture)
Tatsuno Plant (Takaoka City, Toyama Prefecture)
Yashiro Plant (Kato City, Hyogo Prefecture)
Maebashi Plant (Maebashi City, Gunma Prefecture)
Kani Plant (Kani City, Gifu Prefecture)
Please see the detail of sales base in FY2014 for the detail of Okinawa plant.
Production subsidiaries are also listed as LIXIL plants.

11

List of LIXIL Corporation sales offices where dialogue sessions were held [Total to 25 locations]
FY 2012
Yokohama Kouhoku (Tsuzuki Ward, Yokohama City, Kanagawa Prefecture)
FY 2013
Takamatsu Branch, Shikoko Branch Office (Takamatsu City, Kagawa Prefecture)
Kumagaya Branch, Saitama Branch Office (Kumagaya City, Saitama Prefecture)
Sapporo Branch, Hokkaido Branch Office (Higashi Ward, Sapporo City, Hokkaido)
Tachikawa Branch, Tokyo Branch Office (Tachikawa City, Tokyo)
Yamaguchi Branch, Chugoku Branch Office (Yamaguchi City, Yamaguchi Prefecture)
Aomori Branch, Aomori Branch Office (Aomori City, Aomori Prefecture)
Funabashi Branch, Chiba Branch Office (Funabashi City, Chiba Prefecture)
FY 2014
Okinawa Branch, Kyushu Branch Office (Ginowan City, Okinawa Prefecture)
Ishikawa Branch, Hokuriku Branch Office (Kanazawa City, Ishikawa Prefecture)
Nagoya Branch, Chubu Branch Office (Tenpaku Ward, Nagoya City, Aichi Prefecture)
Gunma Branch, Kitakanto Branch Office (Takasaki City, Gunma Prefecture)
Tokushima Branch, Shikoku Branch Office (Tokushima City, Tokushima Prefecture)
Doutou Branch, Hokkaido Branch Office (Obihiro City, Hokkaido)
Shiga Branch, Kansai Branch Office (Kusatsu City, Shiga Prefecture)
Himeji Branch, Kansai Branch Office (Himeji City, Hyogo Prefecture)
Kawagoe Branch, Saitama Branch Office (Kawagoe City, Saitama Prefecture)
Yamanashi Branch, Kitakanto Branch Office (Kofu City, Yamanashi Prefecture)
Sanin Chuo Branch, Chugoku Branch Office (Yonago City, Tottori Prefecture)
Matsuyama Branch, Shikoku Branch Office (Matsuyama City, Ehime Prefecture)
Fukui Branch, Hokuriku Branch Office (Fukui City, Fukui Prefecture)
Fukushima Branch, Tohoku Branch Office (Koriyama City, Fukushima Prefecture)
Kumamoto Branch, Kyushu Branch Office (Kumamoto City, Kumamoto Prefecture)
Minami Chiba Branch, Chiba Branch Office (Kisarazu City, Chiba Prefecture)
Tokyo Minami Branch, Tokyo Branch Office (Setagaya Ward, Tokyo)

List of LIXIL Corporation Viva stores where dialogue sessions were held [Total to 9 locations]
FY 2012Super Viva Home Iwatsuki Store (Iwaki City, Saitama Prefecture)
FY 2013Super Viva Home Itami Store (Itami City, Hyogo Prefecture)
Super Viva Home Teine Tomioka Store (Teine Ward, Sapporo City, Hokkaido)
Super Viva Home Kiyota Hitsujigaoka St. Store (Kiyota Ward, Sapporo City, Hokkaido)
FY 2014Super Viva Home Neyagawa Store (Neyagawa City, Osaka)
Super Viva Home Kazo Store (Kazo City, Saitama Prefecture)
Super Viva Home Shinnatori Store (Natori City, Miyagi Prefecture)
Super Viva Home Gifu Yanaizu Store (Gifu City, Gifu Prefecture)
Super Viva Home Chiharadai Store (Ichihara City, Chiba Prefecture)

12

For Our Customers
LIXIL is committed to delivering products andservices with the customer close in mind.

13

Increasing Customer Satisfaction
CS* activities
LIXIL Group seeks to provide products and services designed from the customer’s perspective, and to improvecustomer satisfaction through communication based on LIXIL’s corporate philosophy – “LIXIL CORE” – and sharedGroup values – “LIXIL Values.”* CS・・・Customer Satisfaction<Valuing Customers’ Opinions>
We will value the opinions received from our customers, and provide products and services that our customers
are happy with.

<All Employees are CS Specialists>
Each and every employee shall always act with the customers in mind, and shall earnestly continue to pursue
customer satisfaction.
* See here for more information about “LIXIL CORE” and “LIXIL Values”

System for using customers’ views to help make improvements
We have collected data using the approximately 290,000 inquiries a month made by customers to our service
centers, including the Customer Service Center, Repair Center, and General Product Information Support Center;
this information is shared with relevant departments with the aim of implementing improvements and providing
better products and services.

14

Number of inquiries, and customer satisfaction survey
In FY2014, we received a monthly average of more than 290,000 inquiries, including questions and requests from
customers who were using (or thinking about using) our products, requests for repairs, and inquiries from our
suppliers. In addition, the Customer Service Center carries out a Customer Satisfaction Survey every six months
to check whether or not we are dealing with customers properly, and to verify the results achieved from ourday-to-day efforts to improve our level of service.

Six sigma adoption
LIXIL regards improving customer satisfaction as being a key priority for its business activities, and works topromote better manufacturing and services while always remembering to listen to the voice of customers (VOC).
We adopted and developed the Six Sigma system with the aims of promoting ongoing activities in this field andputting in place appropriate systems and corporate culture.

Six Sigma starts by listening to customers’ opinions and identifying areas for improvement. The next step is touse facts backed up by numerical analysis, instead of making judgments based on instinct or experience, to limit
variation in the quality of work or services, and to use this to improve quality. When carrying out these
improvement activities, we build cross-functional teams across companies and departments and implement
improvement projects aimed at tackling each challenge.

15

Through Six Sigma, in addition to visualizing the areas of our work that, from the customer’s perspective, require
improvements, and improving the quality of our products, we will also be implementing innovations in all of ouractivities, from service provision through to everyday administration.

Improvements in customer service win LIXIL a “best technology sector contact
center” award in the 2014 contact center awards
LIXIL’s Customer Service Center, along with its partnercompanies, was the recipient of a “Best Technology
Sector Contact Center” award at the 2014 Contact
Center Awards, which showcase improvements in callcenter operations.
LIXIL was praised for its activities aimed at boosting
the quality of the replies given to customers, whilestill maintaining high call center productivity, and forthe “development of cutting-edge, operator-friendly
tools” involving the adoption of voice recognition
technology, improvements in the operator manual,and development of a customer-focused automatedresponse appraisal system.

16

Examples of improvements achieved through listening to our customers
Here we present some examples of improvements implemented after listing to the “voice of customers”
collected at our service centers.
* More examples can be seen on our Customer Support web-page, here（Japanese Only）●Voice of customer – I can’t seem to get throughI called the Customer Service Center several times over the course of the day, starting in the morning, but I
couldn’t get through.Not being able to get through when you are in a hurry is extremely annoying. Can’t you dosomething about this?

●Improvements implemented
We reviewed the product team composition at the Customer Service Center and allocated staff in accordancewith the number of inquiries received. In addition, improving the specialist capabilities and skills of the Center’s
staff has helped to make it easier for customers to get through. (Implemented from February 2013 onwards)
Before improvement／Percentage of inquiries successfully dealt with in September 2012：69%
After improvement／Percentage of inquiries successfully dealt with in February 2013：86%⇒An increase of 17 percentage points

Initiatives aimed at improving the skills of service center staff
Regular training sessions are held to strengthen operational knowledge and product knowledge so that service
staff are able to solve customers’ problems more smoothly.Prizes are awarded based on the skills levels ofservice staff, in order to increase motivation.

[Product training]
Using a toilet product in training to boost product knowledge[Award system]
Winners of the customer service contest, which is held on aregular basis[Installation training]
Fitting a sash window as part of installation training

17

Showroom Initiatives
The showroom is one of the few places where we have the opportunity to communicate directly with ourcustomers. LIXIL Corporation has showrooms in 95 locations throughout Japan (as of August 2015). At the
showrooms, besides making it possible for customers to view physical products, we also host special events suchas the Exhibition for Lifestyles new product exhibitions, to encourage a wider range of customers to visit the
showrooms.

Putting the LIXIL Showroom Credo into practiceAt our LIXIL Showroom, we have created a credo (pledge) that serves as a guidepost for behavior aimed atservice and proposals that satisfy customers, and this credo is put in practice by all showroom staff on a daily
basis. The LIXIL Showroom Credo consists of promised to customers by LIXIL Showrooms. The credo stipulates
the criteria for the attitude that should be had and the behavior that should be put into practice by LIXIL
Showroom coordinators that coordinators are aware of on a daily basis in order to fulfill our promises tocustomers in four categories ((1) showroom space, (2) environmental improvements, (3) information
management, and (4) the vision for coordinators). So that customers can spend a pleasant time in showrooms, all
LIXIL Showroom staff members are working to fulfill promises to customers and establish deep trust
relationships.

Developing our showroom coordinators
LIXIL Showrooms are visited by a wide variety of different people, including building owners, other business users,
and people from the local community. For this reasons, we work hard to train our showroom coordinators sothat they are capable of identifying the best way of helping each and every visitor to our showrooms and guidingthem in the way that best suits their needs. In our product training, we start off from basic training for newcoordinators, and then move on to more advanced training, tailored to the individual coordinator’s existingknowledge and experience, to ensure that coordinators are able to suggest proposals that meet customers’
needs. Coordinators are also tested regularly to verify that they possess the know-how required in order tosatisfy customers’ needs. A training curriculum has been established to enhance know-how, technique andmotivation in cases where there is room for improvement. In addition, managers have been appointed tooversee the maintenance of quality standards in showroom operation. These managers identify key issues ineach region, and implement improvement activities and training programs to ensure that customers receive evenbetter service.

▲Training for Coordinators18

Visitor surveys
Customers who visit our showrooms are asked to fillout a customer service survey, with the aim of
improving our approach to showroom customer
service and our ability to explain products clearly. The
content of customer service survey responses iscommunicated to showroom coordinators, andeffective use is made of this information in showroom
operation. The survey results are also used as thebasis for implementing training aimed at enhancing
coordinators’ ability to present proposals that meetthe needs of each individual customer.

Results of FY2014 Customer Survey
The Survey was implemented at all 13 branches and 97
showrooms. Total number of valid responses: 162,172

Changing our showrooms to make it easier for customers to find and understandthe information they needWe have been improving the arrangement of products within our showrooms and the content of our POP
materials to meet the needs of those customers who just want to look round the showroom on their own. We
have also installed large, touch-screen displays that customers can use to search for examples of LIXIL products inuse, or to get hints on achieving their own ideal home. Tools are also provided to help customers discuss theiroptions with family members after returning home.

▲ Large, touch-screen display▼ POP materials

19

Product Safety Initiatives
LIXIL Corporation recognizes that the source of its profits and of the trust of customers and the society is “quality.”On the basis of “LIXIL Corporation Quality Policy,” we constantly pursue the best quality with confidence in our
manufacturing and services, and any type of work we undertake. In particular, with awareness that a serious
quality defect stirs up customers’ anxiety leading to decline in reliability, we are working on solving issues in across-departmental manner, in accordance with “LIXIL Product Safety Principles.”<LIXIL Corporation Quality Policy>•LIXIL strive for high quality in all processes, pursuing customer satisfaction, and contribute to improving people's
comfort and lifestyles.
•We generate the world’s best quality, listening sincerely to the voice of the customer and striving for excellence
through KAIZEN activities, specifically going and seeing for ourselves and thoroughly understanding the situation.
•We develop the management system that continuously improves the quality of our employees, products andprocesses, and aim for business expansion.

<LIXIL Product Safety Principles>
Innovation

Build a global top level system in the field of product safety
Work to develop innovative safety technology in the pursuit of total safety

Sustainability

Collect state-of-the-art product safety information, and always strive to improve product safety activities
Build a network of business partners and customers in order to secure safety across the entire product life-cycle

Integrity

Work honestly and sincerely on product safety activities in order to obtain the trust of each and every customer
Promptly disclose clear product safety information, with customers’ safety and peace of mind as our top priority

Quality management system
LIXIL Corporation has established a directly-supervised Quality Headquarters that deploys a company-wide
quality management system and resolves company-wide quality issues. A CQO (Chief Quality Officer) has been
assigned to LIXIL Japan Company that is responsible for the four technology businesses and sales services inJapan in order to resolve specific individual quality issues and conduct quality assurance.

*The subsidiaries of LIXIL Corporation are also included under each company.
20Enhancing quality across the entire product lifecycle
LIXIL Corporation implements measures to enhance quality at every stage from initial product concept
development through design, manufacturing and distribution to after-sales support provision, so as to ensure
the delivery of high-quality products and services and to provide our customers with safety and peace of mind.

LIXIL Stage Gate System
Five gates are established for the development stages. Development that can be sure to assure quality is pursued
through evaluation by a gate keeper (internal personnel) based on the judgment criteria that are established foreach gate. In addition, by continuously reviewing the judgment criteria for each gate, we work to develop
products with even more superior quality.

21

Handling serious product-related accidents, and measures to prevent recurrence
At LIXIL Corporation, within 24 hours of information being received about the occurrence of a product-related
accident, information is collected by the Quality Department, and an emergency notice is sent to the relevant
departments; a system is in place to implement an on-site response by quality representatives in close
collaboration with the relevant departments, and to carry out accident investigations, etc. Moreover, in
accordance with the statutory requirements relating to the implementation of the serious product accident
reporting and disclosure system pursuant to the Consumer Product Safety Act, a report is made to the relevant
authorities within 10 days of receiving accident information. In FY2013, there were no new serious
product-related accidents. To prevent any recurrence, we ensure that accident information is taken into
consideration at the design stage, and we also undertake the development of new safety technology to stop
accidents from occurring.
* Important information for customers using LIXIL products（Japanese Only）

Providing information for safe lifestyle ～ Safe Lifestyle Gallery ～LIXIL Corporations has opened a “Safe Lifestyle Gallery” with the aim of helping people to enjoy enhanced safety
and peace of mind by showing the proper way to use LIXIL products, and educating people about the importanceof regular inspections.
In the “Product Safety Corner,” there is a display recreating a fire accident involving a shower-toilet, and in the“NITE Corner” a video is played showing how the National Institute of Technology and Evaluation (NITE)
implements replication testing after product-related accidents have occurred. The “DIY Maintenance Corner”
presents some key ideas for helping consumers to continue to enjoy peace of mind while using LIXIL products
over the long term, and introduces a number of useful books relating to product safety and consumer education.
The “Special Exhibitions Corner” showcases the latest product safety and consumer education information andproducts, along with the prize-winning entries from the 2013 Kids Design Award, which are examples ofoutstanding child-friendly product design. As of February 2015, the Safe Lifestyle Gallery had been visited byaround 2,000 representatives of consumer organizations, industry organizations and LIXL business partners, etc.
There have been many positive comments from external visitors, who felt that the Gallery embodies LIXIL’s
commitment to product safety.

22

▲ View of entire gallery▲ A gallery visit*Click here for details on the Safe Lifestyle Gallery（Japanese Only）*Precautions on product use（Japanese Only）

Product safety education at elementary schools
LIXIL Corporation has developed the Safety Education Support Program: Thinking About Safety at Home forelementary school students in grade 5 and 6 as part of product safety activities together with the NPO the
Association of Corporation and Education (ACE) that is provided free of charge for personnel at schools andeducational institutions. These materials aim to development consumer citizens that take the initiative to think
and act by teaching children about the latent dangers at their home and making them think about how toprevent such risks.
Note that these materials received an award for excellence at the Commendation on Instructional Materials for
Consumer Education 2014 sponsored by the National Institute on Consumer Education. The structure consistingof videos to raise issues, solutions considered by children, and explanation using videos was highly praised, as
well as the fact that the materials consisting of an instruction guide, video materials, Power Point slides, andworksheets were compact and could be immediately used by schools.

*Click here for details and how to apply.（Japanese Only）*National Institute on Consumer Education*Association of Corporation and Education (ACE)（Japanese Only）

23

Consumer communication activities
LIXIL Corporation participates in workshops, product safetyseminars, etc. sponsored by consumer-related organizations, andconducts lectures on product safety centered around the theme ofsafety at home. LIXIL uses these opportunities to introduce its
product safety initiatives while providing information to local
consumers on examples of product accidents that occur in homes
and how to prevent such accidents.

Holding product safety dialogues▲Lecture at product safety seminarsponsored by consumer
organizationTraining for Coordinators

In order to verify that the direction for the product safety activities
conducted by LIXIL Corporation are in line with the demands ofsociety and to make improvements as necessary, LIXIL holds
dialogues with experts on product safety every year. The fourth
product safety dialogue invited experts including advisory
specialists for consumers' affairs, consumer educators, and scienceand technology journalists to share their views on product safety
activities that LIXIL should be carrying out.

Best contributors to product safety awards
In 2014, LIXIL was awarded an Excellence Award in the Large Manufacturer and Importer Category in the Ministryof Economy, Trade and Industry (METI) 8th Best Contributors to Product Safety Awards. In this year’s Awards,
LIXIL received particularly high praise for: (1) The measures that LIXIL has taken to prevent accidents caused bydeterioration due to aging, including the introduction of an industry-leading 10-year long-term warranty service
and inspection/traceability protection based on an inspection notification function; (2) Measures taken to clarify
the causes of past problems, and to take these causes into account when making improvements to products; (3)Measures taken to implement awareness-raising activities, making available information about product safety
both within the company and externally, for example through the establishment of the Safe Lifestyle Gallery.
* For more details (including an overview of the Awards, etc.), click here (PDF: 220KB)（Japanese Only）

24

In Partnershipwith Our Suppliers
LIXIL promotes CSR procurement as part of its fair
operating practices with suppliers.

25

Procurement Policy
LIXIL Corporation's factories use a great amount of water in aluminum product surface finishing and otherprocesses. In order to reduce overall usage, we promote efficient use of water by carrying out detailed water
usage surveys at each factory (water intake, usage per process and water circulation system deployment),
installing water circulation systems, and implementing various other water conservation measures. We also
strictly manage wastewater, and are implementing various measures to minimize the impact of wastewater on
the natural environment.

<Fair and Impartial Trade Practices>
We will provide suppliers with equal and open opportunities, and solicit suppliers broadly.
When selecting suppliers, we will evaluate them fairly and impartially, paying due consideration to CSR aspects
such as environmental management, human rights, and workplace safety in addition to quality, cost, anddelivery.

<Adherence to Social Norms>
We will observe laws, regulations and rules related to procurement activities, and act in a way that gains thetrust of society.

<Respect for Human Rights and Consideration for Working Environment>
We will respect for the internationally declared standards of human rights, and pay due attention on ensuring
an appropriate working environment.

<Care for the Environment>
We will preferentially procure raw materials that have low environmental impact.

<Promotion of Mutual Prosperity with Our Suppliers>
We will conduct transactions in a way that promotes mutual growth as partners.

Supply chain management
Since the five-company merger of April 2011, LIXIL Group has developed the scope of its supply chain
management. In order to achieve sustainable development alongside our suppliers, we have promoted thedevelopment of a system to include CSR Procurement through our domestic and overseas procurement groups.
In order to promote thorough understanding by our suppliers, we have established standard LIXIL Procurement
Policy Guidelines for suppliers in agreement with our policy. As the next step, we have used a CSR Procurement
Survey to identify the current situation and implement follow-up improvement activities.
In FY2014, we achieved activities aimed at continuing to share the “Procurement Policy Guidelines” withJapanese suppliers accounting for 85% of the entire transaction amount and with overseas suppliers accountingfor 60% thereof, and 85% as the percentage of surveyed items complied with in the “CSR Procurement Survey.”
In the same manner as last year, we conducted follow up by visiting approximately 150 domestic suppliers inJapan with poor survey results. We are conducting the same surveys as in Japan for overseas suppliers, and weare deploying CSR activities to affiliates that have newly entered the Group.

26

Progress made in FY2014 (LIXIL Group as a whole)
FY2014 Targets

FY2014 Results

FY2015 Targets

Japan

Overseas

Japan

Overseas

Japan

Overseas

Percentage oftransactions

85%

60%

85%

62%

85%

Being
calculatedPercentage ofsurveyed items
complied with

100%

100%

100%

100%

100%

100%

-

-

79%

84%

85%

85%

Targets

Task

KPI

Build asupply chain
taking into
consideration laborconditions
andresource
allocation

1、Establishmentof Procurement
Policy Guidelines
2、Conduct
questionnaire
survey andfollow-up
activities(change in compliance
percentage fromprioritizing all items
from FY2014)[Scope of application]
Suppliers to all consolidated companies within the LIXIL Group, with the exception of LIXIL Corporation and groupcompanies merged within the past two years.
*Percentage of transaction amount・Japan: Procurement by operating bases
・Overseas: Procurement by operating bases

Priority themes of the Procurement Group with the goal of achieving further improvements from
FY2014 onwards (LIXIL Group as a whole)
1. Procurement within Japan(suppliers: Japanese and overseas
companies)

Selection of tasks and activities that promote further
development of measures at suppliers

2. Procurement at overseas bases (suppliers: overseas andJapanese companies)

Develop activities to the ASEAN region, including
China, South Korea, Thailand and Vietnam.

Selection of business partners
LIXIL Group provides equitable and fair business opportunities to its large number of business partners. The
selection process for business partners includes not only quality, cost and delivery, or QCD, but also a company’senvironmental conservation efforts, human rights, labor safety initiatives, in order to ensure that CSR activities
and other aspects are incorporated into all assessments and decisions.

Collection of compliance information from suppliers (suppliers of materials and subcontractors)
LIXIL Group aims to carry out corporate activities with the aim of being a useful company that is trusted widely
by society. For this reason, we have established an external legal office to receive information related tocompliance violations within the LIXIL Group.
* See here for more details（Japanese Only）

27

CSR Procurement
Promoting CSR procurement

LIXIL Corporation has established "supplier assessment standards" for our suppliers and carried out overall
assessments of the reliability of companies, not only from the perspective of QCD (Quality, Cost and Delivery),technological capability and steady supply capabilities, but also in consideration of compliance and theenvironment. Furthermore, since FY2012 we have made regular checks on our suppliers' environmental
measures and legal compliance by developing more specific environment conservation questions and adding
new CSR-related questions from the perspective of promoting CSR procurement. In the future, we will continue
to strengthen our supply chain management by adding further targets to our supplier assessment standards inrelation to human rights and occupational safety, so that we are able to implement CSR procurement activities
on a global level.

Approach to CSR Procurement

Management of Chemical Substances for Business Partners
LIXIL has stipulated certain chemical substances for which the use in products and production processes in Japan isprohibited or controlled. A list of these controlled chemical substances can be downloaded below.
* LIXIL List of Controlled Substances (updated October 1, 2015)

CSR questionnaire survey

CSR Procurement Survey Questions (FY2014)

We believe it is essential to obtain sufficient
Overseas
In Japanunderstanding and cooperation from our suppliers in(Numbers)(Numbers)
order to “build a supply chain taking into
1. CSR Operations
10
6
consideration labor conditions and resource
2. Fair Business88
allocation”, which is one of the priority challenges of
the Procurement Group. We use a CSR Procurement
3. Human Rights
7
6
Survey based on our Procurement Policy to
4. Labor
13
9
investigate matters such as environmental
5. Health & Safety
97conservation, human rights, occupational safetymeasures and consideration for the local community.
6. Environmental
14
8
We carry out fair assessments of each question, andConservation of the Planet
when a supplier scores poorly in the survey we
7. Regional Contribution
52
strengthen support measures in order to promote
Total
66
48
improvements and use the results to decide on which
suppliers to use. For the survey in fiscal 2013 onward,
we have added to the “CSR Procurement Survey” new questions in relation to such fields as “CSR management,”“human rights,” “labor conditions,” “safety and health” and “regional contribution” (66 questions in total), as weare in the process of identifying real situations of suppliers in the pursuit of substantial measures for CSR
procurement. Among the question items of the CSR Procurement Survey, we use 46 selective items for aquestionnaire targeting Japanese suppliers, excluding low-risk items.

CSR Procurement survey sheets (FY2014)* To suppliers overseas (116KB)* To suppliers in Japan (102KB)
28

Communicating with Our Suppliers
Promoting quality improvement activities
In order to contribute to society through the supply of highly reliable products, it is essential that we build strong
partnerships with our suppliers. At LIXIL Corporation, we work hard to improve quality control in collaboration
with our suppliers. We carry out quality maintenance audits of existing suppliers as a way of maintaining andimproving a system that allows us always to provide a steady supply of high-quality products. During the audits,
we ask questions on topics such as process management and facilities management, the development ofcheck-sheets and testing. We implement improvements in collaboration with our suppliers when corrective
measures are necessary. Other initiatives include quality improvement seminars, the provision of support forlaunching new parts business, and the promotion of quality assurance activities for items procured overseas.
Thanks to these measures, in FY2012 we succeeded in achieving a major reduction of 30% against the previous
year in cases of malfunctions or trouble attributable to our suppliers.

Policy briefings
We hold policy briefings for our suppliers and partners with the goal of increasing their understanding of LIXIL
Corporation's Policies. The 3rd LIXIL Corporation Supplier Policy Briefing was held in Tokyo on June 18, 2014, and475 representatives attended from 270 companies in the fields of supply and logistics. At the policy briefing, we
explained our overall policy, Procurement Policy and quality improvement measures and presented prizes andletters of thanks to the suppliers who made significant contributions in reducing costs and improving quality
during FY2013 (suppliers - two companies; logistics – two companies).

29

In Partnership withSociety and Local Communities
Through continual dialogue with stakeholders LIXIL
is takes part in various activities together withsociety and local communities.

30

Water Resources Conservation Activities
Educational activities of water
As an enterprise dealing in home plumbing products, we endeavor tocommunicate the importance of water to children both in Japan andoverseas, and carry out activities aimed at raising awareness of local
water issues.

Activities in Vietnam
Although numerous plumbing products are manufactured in Vietnam, many parts of the country still lack proper
sanitation and environmental awareness is also at a low level. LIXIL maintains a leading share of Vietnam’s
sanitary ware products market and as a company that has built up a strong position in the market together withthe growth of the country, we hope to give back to Vietnamese society as well. Accordingly, we are working withlocal governments and international NPOs Bridge Asia Japan (“BAJ”) and Seed to Table (“STT”) to educate
Vietnamese children about water environment issues to allow them to think and act for themselves. In FY2014,
the 8th year of the program, we carried out environmental educations and exchange activities in locations suchas Hòa Bình Province in the north of Vietnam, Huế in central Vietnam, in summer and winter, and also factory
tour at the Danang Factory.

Activities in Japan
Employees from our regional sales departments make visits toelementary schools to give lessons over two periods. They use original
educational materials to raise children’s awareness that water is alimited resource, using the examples of the earth’s water circulation andwater problems. The lessons give the children the opportunity toreconsider their own lifestyles. Over the five-year period between 2010
and 2014, 81 lessons were given by 34 branches, and approximately
4,500 students took part. The participating children offered numerous
honest thoughts and opinions, including surprise at just how much water each of us uses without realizing, shockat the water situation in other countries, and a desire to be more careful about how they use water in the future.
The employees who gave the lessons enjoyed the children’s enthusiastic responses and the serious approachthey took to the lessons. The experience gave our employees a great deal of satisfaction and helped theirdevelopment.

31

Environmental education in Vietnam
Stance towards environmental education in Vietnam
In 2006 when LIXIL (at the time INAX Co., Ltd.) had the top
share of the sanitary ware market in Vietnam, LIXIL decided
that it wanted to do something for Vietnamese society as acompany that was establishing its own position along withthe development of Vietnam. Rather than simply providing
funds and materials, LIXIL searched for a partner thatwould support the future of Vietnam, and commenced
concrete activities in 2007 with an NPO with a strong trackrecord. This year marks the eighth year since LIXIL has been
involved in these activities. Using the knowledge we haveaccumulated as a company handling water-related
products, we aim to support education that is reallynecessary for the children that will support the future of Vietnam involving the theme of the water environment.
This education consists not of telling children not to throw garbage in the river because it makes the water dirty,
but of providing children an understanding of what makes rivers dirty and enabling them to think for themselvesin terms of what should be done in response. In accordance with this stance, LIXIL has prepared educational
materials based on local conditions, and it currently conducts activities twice a year in summer and winter aspractical environmental education for the local conditions with the international NPOs Bridge Asia Japan (BAJ)and Seed to Table (STT) and local employees in Vietnam.

Introduction of LIXIL’s partner
Bridge Asia Japan (BAJ)
BAJ was established in 1993 for the purpose of conducting international cooperation
projects that serve as bridge between Asia and Japan, just like its namesake. BAJ focuses
its support in Vietnam on poor children. It commenced preparations for environmental
education around 2002 and fully launched these activities from 2004 in Hue in central
Vietnam. Thanks to the practical support of BAJ including the collection of valuable
resources such as plastic and the installation of septic tanks so that domestic wastewater
does not directly flow into rivers, activities in which local children think and act forthemselves have spread. LIXIL was conducted environmental education activities together with BAJ since 2007.
* Official website of Bridge Asia Japan (BAJ)

Seed to Table (STT)STT is a Japanese NPO that was established inJuly 2009 with the aim to protect local seeds,
nature, and culture together with the people of Vietnam and develop the economic base for improving
self-sufficiency and earning so that people can enjoy living together with family and friends. STT has created
opportunities for people to meet and talk, including the recording and communication of local knowledge suchas farming methods as it fosters leaders for the next generation while making efforts in food, farming, andcommunity building. These activities are focused on Hoa Binh Province in northwest Vietnam. Joint activities by
LIXIL and STT were started with environmental classes in Nam Sơn Commune in Hoa Binh Province in 2010, andactivities were subsequently expanded to Phu Vinh Commune and Dich Giao Commune.
*Seed to Table (STT)’s official Facebook page（Japanese Only）*Seed to Table (STT)’s official website

32Latest activities March 1 to 5, 2015
This marked the 16th time that activities were conducted, which consisted of classes and practical study on
toilets and water environments in Hòa Binh Province in Northern Vietnam and Thua Thien–Hue Province incentral Vietnam by STT and BAJ staff members who worked with five employees from the local subsidiary LIXIL
INAX VIETNAM Corporation (hereinafter “LIXIL VIETNAM”) and one employee from LIXIL in an aim to deepen
exchanges with around 280 children through these activities.

[Details of the activities]■ Together with STT
STT works together with LIXIL in Tan Lac District, Hoa Binh Province to encourage the use of indigenous plantvarieties and farming methods that take the local ecosystem into consideration while conducting initiatives
including surveys on living creature and making sanitation improvements in cooperation with the local people. In
addition, we provide assistance for toilet construction in response to requests from villagers. By providing
assistance for half of construction costs, and having each household pay the remaining amount and conduct theconstruction work, we aim to both improve the awareness of villages and achieve sustainable initiatives as
independent activities.

Environmental activities at Nam Sơn Commune (March 1)
Nam Sơn Commune is a rural community of about 1,500 people that cultivate crops including rice and corn in a
mountainous area of northern Vietnam approximately three hours by car from Hanoi. The commune consists ofseven scattered settlements where people live while using cropland located on the sides of steep slopes. This
year’s visit was the fourth visit, and during this visit three employees from the LIXIL VIETNAM Hanoi
headquarters, one employee from LIXIL, and three STT staff members conducted a class and workshop on toilets
for 80 children and youth group members that could not participate during previous visits. First, an original
textbook called “Let’s Think About Toilets” was used for a class taught by an employee of LIXIL VIETNAM, who
explained the history of toilets, the importance of washing hands, the characteristics of toilets, and how to use
toilets correctly while responding to questions. Employees responsible for in-house education use their
day-today skills to conduct class while drawing out the interest of children and providing them with opportunities
to think for themselves.

Nam Sơn Commune wheretraditional raised-floor homes
still remai

Employees conducting the class

Deepening understanding while
consulting with people nearby

After that, a workshop was held in which the results of a survey on settlement toilets conducted in advance weresummarized. The youth group members led a presentation while using the photos and illustrations covering the33

types of toilets, the role of toilets, and issues with toilets in each settlement. It was pointed out that at one
settlement while soil saturation toilets (consisting of only a hole that is dug and a blind) could be made simply,
they could not be used for a long period of time, and in this manner the importance of thinking with a long-term
perspective was also learned. Feedback after the completion of the lesson included: “I learned that I was notusing my toilet in a sanitary manner. I will try to use my toilet in a sanitary manner going forward.” and “I would
like to suggest that the people in my settlement change from soil saturation toilets to compost toilets in the
future.”Workshop on toilets

Report on the current
state of toilets

Toilet built with support
from LIXIL■ Together with BAJ
In cooperation with BAJ, LIXIL provides environmental education throughout the year for all classes of students ingrades three and four at Thuy Xuan Elementary School and students in grades one and two at Lam Mong Quang
Junior High School (equivalent to the grade six of elementary school and grade one of junior high school inJapan) that elect to take the course. In addition to classroom learning, fieldwork is also conducted in the region,
along with experiments using tools. Children share with each other what they have learned through means suchas pictures in order to spread knowledge and deepen understanding. These activities were conducted over a
period of three days by one employee from the LIXIL VIETNAM Hanoi headquarters, two employees from the
LIXIL VIETNAM Danang Factory, one LIXIL employee, and six BAJ staff members.

Environmental activities at Thuy Xuan Elementary School (March 3)
Thuy Xuan Elementary School is an elementary school in the suburbs of Hue City. On March 3, an environmental
class was conducted that incorporated hands-on study for students in grade three of elementary school. In themorning, employees made self-introductions and conducted a class using the original textbook “Let’s Think andResearch About Water.” Following that, the children made presentations on what they had learned. Students
drew pictures summarizing what they had learned about topics including the pollution of the water, air, and soil;
what causes this pollution; and wastewater treatment methods.After that, experiments were conducted on afilter device that used a pet bottle in each class. This device was a simplified reproduction of the mechanism forfiltering pollution in process of rainwater, etc. seeping in the ground that is found in the natural world. Types ofwater that people are familiar with in daily life including water that has been used to wash rice, broth fromboiled foods, and water containing ash was filtered, and the color and odor of these liquids after filtration wascompared. Furthermore, the pollution level was measured using a pack test. Children who don’t often
participate in classes with hands-on experiments watched with great interest as the dirty water was made clean
by the filter device. Representatives from each team announced the results of the experiments, stating “There
was no more smell” and “Some figures did not change even after filtering.” The lecturers provided an even34

deeper understanding by adding an explanation on the limitations of filtering the natural world and the necessityof wastewater treatment.

Children creating a filter
deviceDeepening exchanges throughWatching the filtration withgroup work

great interest

Environmental activities at Thuy Xuan Elementary School (March 4)
On March 4, children in grade four made presentations on what they had learned, similar to the previous day.
The children that had also participated in the BAJ program during the previous fiscal year presented with a senseof experience, which suggests that they had grown. After that, experiments were conducted on soap making ineach class. This class was held after it was discovered that most toilets were not equipped with soap in thesurvey on toilets in the city that was conducted as part of environmental activities last summer. Students learned
how to re-use soap by finely cutting soap that had gotten small, dissolving this soap, and then putting it into amold to harden. The materials for this soap were collected from the soap used at the homes of the children andreceived from many hotels in Hue City that is a tourist destination. Employees and BAJ staff members wereassigned to each group to watch over and ensure that there were no injuries. The children proudly presented thesoap that they recycled by themselves, and they appeared to be very satisfied. For children who couldn’t takesoap home, BAJ promised that it would send them recycled soap from Japan.

Children listening to a study
reportCarefully cutting the soap

Children pleased to see thecompleted soap

Environmental activities at Lam Mong Quang Junior High School (March 5)
Lam Mong Quang Junior High School is located in a town found in a sandy area sandwiched between the sea anda lagoon approximately one hour from Hue by car. As low quality well water is used for living, there is a high levelof interest in water issues and the environment in this region. Principle Nhon recommends that children think forthemselves and learn by actually moving their hands. He identified with BAJ’s activities and launched joint
activities with an environmental club. While only students from grade one of junior high school participatedduring the previous fiscal year, this year 21 students that entered grade two of junior high school and 17 newstudents in grade one of junior high school conducted environmental activities together.
35

On March 5, after introductions were made by employees, the children presented their results. An interview
survey was conducted in the town, at the market, and in homes on methods for disposing of waste oil fromcooking and the relationship between electrical appliances and electricity conservation, and the results were
subsequently announced. The students applied what they learned about recycling and energy savings in
textbooks to their own community and homes. After that, the students made soap. In addition to the soap thatwas made by finely cutting and dissolving old soap in the same manner as the previous day, an experiment wasalso conducted in which soap was made by adding sodium orthosilicate to waste oil. These experiments wereconducted smoothly by the enthusiastic children.

Junior high school steps
decorated with environmental
slogans

Children enjoying experiments

Commemorative photographwith all participantsThrough environmental education the children are steadily developing an attitude of learning about theenvironment themselves. The insights and discoveries that are gained by employees in Vietnam from activities
that are a contrast from the norm also provide opportunities for them to reconsider their day-to-day work.
Furthermore, it makes us very proud to think that these activities may contribute even in some small way to thegrowth of the region, and above all, the warm welcome provided by the children serves as a strong form of
encouragement for our employees.
By conducting grass-roots environmental education, LIXIL aims to not only contribute to the children who willlead the future, but also contribute to the sustainable development of Vietnam by continuing learning andgrowth together with employees on social issues.

Environmental activities participants
Hoa Binh Province

80 children and youth group members from Nam Sơn Commune, Tan Lac District

Thua Thien–Hue
Province

161 elementary school children in Thuy Xuan Elementary School, Hue
38 students from Lam Mong Quang Junior High School, Vinh My Commune, Phu Loc District

STT

Representative
Vietnam Office

Mayu Inou
Nguyen Thi Thanh Loan, Do Thi Hoa

BAJ

Vietnam Office

Emiko Katayama, Ly Ba Khuong, Pham Vu Tien,
Nguyen Minh Khoa, Ho Thi Anh
Yuriko Oshimura
Huynh Thi Thuy Tien

Tokyo OfficeTranslator
LIXIL

Khuat Duy Son, General Affairs Department Manager, Hanoi Headquarters, LIXIL VIETNAM
Le Thi Tuyet Mai, General Affairs Department, Hanoi Headquarters, LIXIL VIETNAM
Nguyen Hong Hanh, Human Resources Department, Hanoi Headquarters, LIXIL VIETNAM
Phan Thi Hong, Production Division, Danang Factory, LIXIL VIETNAM
Nguyen Thi Mai, SC Division, Danang Factory, LIXIL VIETNAM
Yumiko Itou, GL, CSR and Environmental Affairs Promotion Department, LIXIL

36

Developments up until now
Active period

Main activities

2007

-

Start of activities with BAJ and Save the Children (three-year contract)（Japanese Only）

April

Creation of original textbooks

June to August

Environmental education conducted in Yen Bai (north of Hanoi) and Hue

March

Invited children from Yen Bai and Hue to the Eco-Products exhibition in Hanoi and gave atour of INAX VIETNAM Co., Ltd. *1

June

Environmental education conducted in Yen Bai and Hue（Japanese Only）

December

Environmental education conducted in Yen Bai, Hue, and Qui Nhon

2009

June

Environmental education conducted in Yen Bai（Japanese Only）
Environmental education conducted in Hue, and Ho Chi Minh（Japanese Only）

2010

-

Launched activities with BAJ and STT

January

Environmental education conducted in Hue and Qui Nhon. Gave factory tour of VIETNAM
TILE Co., Ltd. *2

July

Environmental education conducted in Nam Sơn Commune, Hoa Binh Province, Hue, and
Ho Chi Minh

January

Environmental education conducted in Nam Sơn Commune, Hoa Binh Province, Hue, and
Ho Chi Minh

July to August

Environmental education conducted in Phu Vinh Commune, Hoa Binh Province, Hue, and
Ho Chi Minh
Activities report by residents of Nam Sơn Commune, Hoa Binh Province and factory tour at
INAX VIETNAM Co., Ltd. *1（Japanese Only）

February

Environmental education conducted in Phu Vinh Commune, Hoa Binh Province and Hue（Japanese Only）

July

Environmental education conducted in Dich Giao Commune, Hoa Binh Province and Hue
Activities report by residents of Phu Vinh Commune, Hoa Binh Province and factory tour at
LIXIL INAX VIETNAM Corporation（Japanese Only）

March

Environmental education conducted in Dich Giao Commune, Hoa Binh Province and Hue
Activities report by students from Ngoi Sao and factory tour at LIXIL INAX Saigon
Manufacturing Co., Ltd. （Japanese Only）

AugustEnvironmental education conducted in Dich Giao Commune, Hoa Binh Province and Hue
Activities report by residents of Dich Giao Commune, Hoa Binh Province and factory tourat LIXIL INAX VIETNAM Corporation（Japanese Only）

February

Environmental education conducted in Dich Giao Commune, Hoa Binh Province and Hue（Japanese Only）

July

Environmental education conducted in Nam Sơn Commune, Hoa Binh Province and Hue
Activities report by children from the suburbs of Hue and factory tour at LIXIL INAXDANANG Manufacturing Co., Ltd. （Japanese Only）

March

Environmental education conducted in Hoa Binh Province of Hoa Binh Province and Hue

2008

2011

2012

2013

2014

2015

*1. Currently Hanoi Headquater, LIXIL Vietnam Corporation,*2. Currently LIXIL INAX SAIGON Manufacturing Co., Ltd.
*3. LIXIL INAX DANANG Manufacturing Co., Ltd.

37

Forest Ecosystem Conservation Activities
Forest preservation activities in Japan
We work with government, NGOs and NPOs to
conduct volunteer activities such as thinning forests
a nd w o odl a n d s, pl a nt ing tre e s a n d ot h e renvironmental improvements. We are currently
working with local communities in Mie, Nagano and
Ibaraki prefectures, where we carry out activities
twice each year, in the spring and autumn.

Activities in Mie Prefecture
In support of the corporate forest-building activities
promoted by Mie Prefecture, in 2008 we entered into
a forest preservation agreement with Iga City, andbegan activities in the Kamiawa area. From spring of
2015, we partnered with the NPO Morinokaze, andwe have plans to plant 2.76ha of forest, install
protective netting, and conduct environmental
education by 2020 while receiving planning andtechnical guidance. Activities were conducted a totalof eleven times from 2008 to May 2015. In May 2015,
61 people participated in protective netting
maintenance, walkway maintenance, and forest
education activities.

Activities in Nagano Prefecture
In 2009, we launched activities in Achi Village,
Shimoina District as part of Nagano Prefecture’s“Adopt a Forest” forest promotion project. By 2014,
we had thinned and cleared approximately 16ha offorests in West Ward, Achi Village, and we now plan
to clear a 1,400 m work path. Between 2009 and May
2015, we held a total of twelve activities sessions.
During FY2015, 68 people took part in clearing work
paths, and using chain-saws to thin the forest.

Activities in Ibaraki Prefecture
In 2009, we launched conservation activities tosupport mountain villages in Shishitsuka, TsuchiuraCity, Ibaraki in partnership with the Certified NPO for
Nature preservation and History Transmission of
Shishitsuka Satoyama. We carried out natureobservation in mountain village areas, maintainedwater resources and carried out maintenance onwater channels for wetland areas known as yato, andremoved foreign plants known to be harmful tonative species. Between 2009 and the end of June
2015, we held a total thirteen times of activities
sessions. In May 2015, 60 people participated inforest weeding education activities.
38

Number of participants since FY2011 (as of June 6, 2015)
Number of participants
Base

Mie
Prefecture

NaganoPrefecture

IbarakiPrefecture

Total

Employees’
families

Date of activities

Local community
andLocal government

October 29, 2011

23

93

35

151

November 3, 2012

28

92

19

139

April 20, 2013

47

60

17

124

May 23, 2015

16

40

5

61

June 11, 2011

35

28

12

75

November 3, 2011

13

23

17

53

July 2, 2012

9

29

15

53

November 3, 2012

5

22

17

44

June 1, 2013

10

34

10

54

June 7, 2014

12

27

23

62

October 27, 2014

12

28

33

73

May 30, 2015

9

28

29

66

June 18, 2011

13

66

7

86

November 5, 2011

10

58

7

75

July 7, 2012

7

53

3

63

November 10,2012

12

45

0

57

July 20, 2013

13

45

5

63

June 14, 2014

13

55

6

74

October 11, 2014

31

56

2

89

June 6, 2015

10

45

5

60

328

927

267

1,522

39

Employees’
families

Employees

Participation in local communities
Holding dialogs in local communities
Since FY 2012, LIXIL’s offices have held dialogs on themes including local
exchanges with stakeholders in living in the community, local community
contributions, and the activities of local government, residents’ associations,and local communities. Dialogs where held at a total of three businesslocations during FY 2012, namely one factory, one showroom, and one store.
During a three year period from FY2012, dialogs were held at 39 factories,
25 sales offices, and 9 LIXIL Corporation Viva stores in order to conductvarious discussions in each local community. We will expand activities to deepen ties between offices and local
communities going forward.
* See here for details such as an overview of dialogs being held

Other community contribution activities
Social contribution spending (donations)Category

FY 2013

Ratio

Charitable contributions

245,367,578 yen

18.80 ％

170,880765 yen

12.10%

Community investment

530,329,087 yen

40.70 ％

613,395,842 yen

43.40%

Commercial initiatives

528,000,000 yen

40.50 ％

629,900,000 yen

44.50%

1,303,696,665 yen―

1,414,176,607 yen

―

Total

FY 2014

Ratio*Scope of data collection: LIXIL Group (non-consolidated) and LIXIL Corporation (non-consolidated)

LIXIL makes donations to local governments, various associations, regional organizations, educational institutions,and other groups that conduct local community activities in Japan and overseas. The contributions are used for
purposes such as community revitalization, crime prevention and security maintenance in local communities,
and activities aimed at supporting disabled and elderly people.

Holding Noda rice field wildlife school
Our Noda Office and Nanakodai Office in Chiba Prefecture have conducted
the Noda Rice Field Wildlife School in City’s citizens’ rice field allotments at
Egawa, Noda City, Chiba Prefecture that aims to teach the importance of
biodiversity by growing rice. In December 2012, Noda City received a pair oforiental storks free of charge from Tama Zoological Park with the aim ofhelping the species (designated as a species of animal designated for special
protection in Japan) to recover in the wild, and Noda City began breeding
the birds at facilities located within the city. In July 2015, three chicks bornto the pair were experimentally released as efforts were commenced atsettling and reproduction in the wild. Noda Office and Nanakodai Officesupport the objectives of Noda City’s project, aimed at learning theimportance of protecting environments where various organisms live by
growing rice in fields using limited agrichemicals which provide habitats for the diverse range of creatures (suchas sludge worms, frogs, snakes, pond loaches and Japanese common catfish) needed for the oriental stork tosurvive as a creature at the top of the food chain. Activities were held six times during FY 2015, starting with rice
planting in April, and followed by grass cutting, natural observation, firefly observation, and rice harvesting. At
the final activity of the year held on September 27 (Sunday), 7 employees and their family members held aharvest festival.

40

Sponsorship of an international triathlon event
Every year LIXIL serves as the main sponsor for the IRONMAN 70.3 Centrair
Chita Tokoname Japan race with the aim of supporting local communities
through sport. The sixth triathlon held on June 7, 2015 was a high-level race inwhich athletes from Japan and overseas gathered to compete for a spot in the
Ironman 70.3 World Championship. The event was a big success this year, as
over 200 employees took part as competitors and as race operation andsupport volunteers.
* See here for the official website of IRONMAN 70.3
* See the news release IRONMAN 70.3 Centrair Chita Tokoname Japan for more details（Japanese Only）

Disaster recovery support activities
The LIXIL Group provides support using various resources including support for the activities of the IPPO IPPONIPPON Project that aims for the reconstruction of the area damaged by the Great East Japan Earthquake inMarch 2011, the donation of products to the “Minna No Ie” Toyo Ito Project, and the dispatch of employee
volunteers for the Housing Repairs Project in cooperation with NGOs.
In addition, emergency assistance and a contribution of approximately 6 million yen was provided for a landslidethat occurred in Hiroshima in August 2014, and assistance funds of 5 million yen were provided for anearthquake in Central Nepal that occurred in April 2015.

Main activities in Japan
Japan/Great East Japan Earthquake reconstruction assistanceCharity event
sponsorship
through
employeeparticipation

SMILE AGAIN ～YELL from KASHIMA (2011)
2nd IRONMAN 70.3 Centrair Chita Tokoname Japan (2011)
Kids Workshop Carnival (2012, 2013)
LIXIL Takamatsu Showroom Charity Concert (2013, 2014), etc.
Michinoku Photo Project (2011)

Charity event
sponsorship

Tohoku Rokkonsai (2012, 2013)
VOICES meets Romantic Beat -Pray for Moon-(2012)
Fukushima Sakura Project (2014), etc.

Human
resources
dispatching

Human resources dispatching
Housing Repairs Project volunteers (2014)
Shirahama Reconstruction House Project in Kitakami Town, Ishinomaki City, Kogakuin University (2011)
Home for all Toyo Ito Project (2012, 2013)
Higashi Matsushima City Yamoto Higashi Day Care Center, Save the Children Japan (2012)

Product
donation

Ishinomaki Kazuma Community Center, Fondation SAKURA du Chateau de Fere (2012)
Tsukahara District Assembly Hall, Odaka Town, Minamisoma City, Fukushima Prefecture (2014)
Children’s Village Touhoku, SOS Children’s Villages Japan (2014), etc.
Onagawa Onsen Yupoppo Tile Art Project (2014)
Minna No Asobiba Project (2014), etc.

Donations andsponsorship

IPPO IPPO NIPPON Project (2011 to present)
NGO Habitat For Humanity Japan (2014)

Hiroshima landslide disasterDonations

Emergency assistance including shovels, rubber boots, and drinking water donated by the LIXILGroup through the authorized NPO Japan Platform (2014)
Donations of approximately 6 million yen from LIXIL Group employees contributed through theJapanese Red Cross Society and Hiroshima City (2014)41

Volunteer dispatching

Disaster recovery activities (2014)* See the news release Fukushima Sakura Project (2014) for more details（Japanese Only）* Tohoku Future Creation Initiative* Home for all* Children’s Village Touhoku（Japanese Only）* Onagawa Onsen Yupoppo Tile Art Project（Japanese Only）* Minna No Asobiba Project（Japanese Only）* See the news release Assistance for Damage from Typhoon Haiyan in the Philippines for more details（Japanese Only）

Main activities overseas
Damage from Typhoon Haiyan (Typhoon No.30) in the Philippines
Approximately 10 million yen in assistance funds donated by the LIXIL Group through the authorized NPO
Japan Platform (2013)
LIXIL Philippines donated over USD 2,000 to the Philippine Red Cross (2013)
Donations

Donations from LIXIL Group employees contributed to recipients at the beginning of December (2013)
LIXIL donated 10,000 bowls, plates, spoons, and children toothbrushes to UNICEF Philippines (2013)
LIXIL and American Standard Brands jointly donated 10,000 simple pan-type toilets to the UNICEF Philippines
office (2014)

Earthquake in Central Nepal
Approximately 5 million yen in assistance funds donated by the LIXIL Group through the authorized NPO
Japan Platform (2015)* Damage from Typhoon Haiyan (Typhoon No.30) in the Philippines（Japanese Only）* Earthquake in Central Nepal
Donations

IPPO IPPO NIPPON project
We have cosponsored the IPPO IPPO NIPPON Project, which is being
promoted by 456 companies (as of May 2015) throughout Japan,
with the cooperation of the Japan Association of Corporate
Executives since 2011. The project supports children indisaster-affected areas through the donation of practical teachingequipment to specialist schools and provides fine-tuned support ofactivities aimed at training people and revitalizing industry according
to the needs of disaster-affected areas. The 7th application period
ended on January 31, 2015, and the total assistance provided
through this project exceeded 1.8 billion yen. LIXIL will continue
supporting this project so that community-based activities andsupport for the young generation can continue in the future.
* IPPO IPPO NIPPON Project（Japanese Only）

Practical lessons at a specialist school
using teaching materials
donated by LIXIL

Great East Japan Earthquake Reconstruction Support - Housing Repairs Project Volunteers
One of the major issues and needs in the disaster areas nearly four
years since the earthquake occurred was housing repairs, which ispart of LIXIL’s business domains. While much attention has focusedon the tsunami damage in coastal areas caused by the earthquake,there was also a great deal of damage in inland areas. We learned
that no public assistance was received in these cases and that there
were many households that could not conduct housing repairs due
to economic reasons.
During 2014, LIXIL dispatched 20 employee volunteers to conduct
housing repairs in the inland areas of Miyagi Prefecture based on a partnership with the NGO Habit For Humanity
Japan that is seriously addressing this issue.

42

In Partnership with Our
Employees
LIXIL is committed to offering great workplaceenvironments where the individuality of all
employees is deeply respected.

43Basic Approach to Human Resources
In order to achieve our Management Vision of “becoming a global leader in the living and housing solutionsindustry”, LIXIL Group believes it is necessary to create a corporate culture that is superior to our global
competitors and to build a human resources platform that increases the vitality of our employees.
For this reason, we have defined the corporate culture pursued by the LIXIL Group as “Implement Meritocracy”,“Respect Diversity” and “Provide Equal Opportunity”, and promoted the development of human resource
platforms and operational improvements with the aim of establishing an advantage over our competitors in thefield of human resources.

Approach towards recruitment
LIXIL Group pays close attention to respect for human rights when employing and recruiting employees, andworks hard to establish fair selection, employment of diverse human resources irrespective of social group, and alabor platform that allows diverse human resources to display their full potential.
In our recruiting activities, we look to hire people who agree with the values defined in our “LIXIL VALUES” andwho are capable of showing this through their behavior. Specifically this means “people who deliver on theircommitments”, “people with the passion to improve and take on new challenges”, “people capable of open andhonest communication” and “people who are capable of thinking from the customer’s perspective and actingwith integrity and fairness”.
We also actively pursue the recruitment of external human resources to increase the global competitiveness ofour business, utilize human resources affiliated to our overseas subsidiaries when carrying out our global
operations, and recruit and utilize diverse talents, including foreign employees and women, in order to promote
diversity.
* See here for more details on LIXIL VALUES

44

Employee Composition
Employee makeup by type of employment and by gender★
In Japan

Directly
employed

Persons%Male

17,98825.4

Female

5,484

7.7

Total

23,472

33.1

Male

2,876

4.1

Female

7,661

10.8

Total

10,537

14.9

Male Total

20,864

29.5

Female Total

13,145

18.5

Subtotal

34,009

48

2,345

3.3

36,35451.3

27,703

39.1

1,157

1.7

5,598
34,4587.9
48.7

70,812

100

Regular staff
1*
Non-Regular2
staff *

3

Indirectly employed *Total
Outside Japan

1

Regular staff *2

Non-Regular staff *3

Indirectly employed *Subtotal
Total*1 Regular staff: Employees under a labor contract without the period of employment*2 Non-Regular staff: Employees under a labor contract with the period of employment*3 Indirectly employed: Temporary and subcontracted staff

Number of employees by country: only directly employed★
Country

Persons

Country

PersonsJapan

34,063 India

536

China

6,388 Hong Kong

490

Thailand

6,293 Netherlands

345

Vietnam

4,390 Canada

283

Mexico3,939 United Arab Emirates

274

U.S.A

2,491 Singapore

201

Germany

879 Others of Asia

661

Italy

839 Others of Western

235

Indonesia
562
Total
62,869Notes：1. Data collected according to location of employment or base region.
2. Others of Asia cover Australia.
3. Others of Western cover Russia.

45

Changes in the number of employees (Japan only)
Number of new hires
FY 2012FY 2013

FY 2014

Regular staff(of which, new graduates)

564
(336)

Of which,
LIXIL Corp.
243
(207)

Of which,
LIXIL Corp.
950
(376)

373
(237)

820
(495)

Of which,
LIXIL Corp.
418
(326)

Non-Regular staff

2,767

914

2,758

571

2,215

420

Total

3,331

1,157

3,708

944

3,035

838

*Only in Japan

Number of resigning staff
FY 2012FY 2013

Of which,
LIXIL Corp.
Regular staff
Turnover rate *Non-Regular staff

FY 2014

Of which,
LIXIL Corp.

Of which,
LIXIL Corp.

2,206

1,611

697

274

814

427

8.90%

8.90%

3.00%

1.60%

3.41%

2.52%

2,463

521

2,372

687

2,473

542

Total
4,669
2,132
3,069
961
3,287
969
*Only in Japan*The turnover rate uses the personnel chart for April 1 of the fiscal year as a basis for comparison with the number ofresigning staff until March 31 of the same fiscal year

Third-Party Audit on Employee Related Data

The LIXIL Group Corporation has received third-party assurance from the Deloitte Tohmatsu Evaluation andCertification Organization in order to ensure the reliability of CSR-related non-financial data contained on this website.
*The scope of assurance on this website is marked by the ★ symbol.
“Independent Third Party Assurance Report” (PDF: 556KB)[Scope of Data Collection]

The organization being reported includes a total of groups / companies of the LIXIL Group: LIXIL Group Corporation and5*1of its subsidiaries and LIXIL Corporation’s major subsidiaries (12*2 companies in Japan and 25*3 groups /companies outside Japan). The number of groups and companies is 43 in total. The scope of the current report covers
the majority of the LIXIL Group Corporation’s consolidated subsidiaries as of March 31, 2015, but this is not equivalent
to the scope of consolidation.
■ Operating companies of the LIXIL Group Corporation*1
LIXIL Corporation, LIXIL VIVA CORPORATION, LIXIL Housing Research Institute, Ltd., LIXIL REALTY, Corp., JIO Corporation■ Major subsidiaries of LIXIL Corporation
・Consolidated subsidiaries in Japan *2: Kawashima Selkon Textiles Co., Ltd., HIVIC CO., LTD., LIXIL Total Hanbai
Corporation, Asahi Tostem Exterior Building Materials Co., Ltd., G TERIOR Corporation,
LIXIL SUZUKI SHUTTER CORPORATION, JAPAN HOME SHIELD CORPORATION, LIXIL Toyo Sash Shoji Co., Ltd., Dinaone
Corporation, TM.S Corporation,LIXIL RENEWAL Corporation, LIXIL Total Service Corporation Japan・Overseas consolidated subsidiaries *3: 14 consolidated subsidiaries including Permasteelisa Group, ASD Americas
Holding Corp., TOSTEM THAI Co., Ltd., A-S CHINA PLUMBING PRODUCTS Ltd., LIXIL Vietnam Corporation,
LIXIL GLOBAL MANUFACTURING VIETNAM Co., Ltd., LIXIL (Thailand) Public Co., Ltd.、LIXIL-Haier Housing Products(Qingdao) Co., Ltd., PT AMERICAN STANDARD INDONESIA., AMERICAN STANDARD VIETNAM Co., Ltd.
*Is outside the scope of GROHE Group S.à r.l.
[Data Collection Method and Period]
Data collection on numbers of employees is done on an original registration basis for each company, mainly as ofMarch 31, 2015. The number of participants in various systems, etc.. is counted based on their usage during the fiscal
year from April 1 to March 31.Lost time injuries frequency rate and severity rate use data is totaled for companies
receiving seconded employees (not on an original registration basis).

46

Internal Communication
The LIXIL Group is actively engaged in internal communication so that employees can openly share their opinionswith a critical mind, based on the belief that it is important to continually change and take on challenges on yourown.

Implementation of an employee opinion survey
Continuing from FY 2012, an employee opinion survey called the LIXIL Sunrise Survey was conducted in
December 2014. For FY 2014, all 46 companies of the LIXIL Group were covered by the survey. Responses wereobtained from 29,960 employees (out of 32,562 target employees, response rate of 92.0%) for a total of 60
questions aimed at assessing matters including the degree of penetration of management strategy and employee
satisfaction. The purpose of this survey was to confirm the degree of penetration of the management top vision,
the degree of penetration of the corporate culture aimed for by LIXIL (respect for diversity, provision of equal
opportunities, and the implementation of meritocracy), the degree of practice of LIXIL VALUES (shared values),
and the state of engagement (connections between employees and the company) so that this information may
serve as a reference point for future personnel policies and systems.
The survey results suggested that the company-wide policies and departmental actions taken in response to thesurvey results have been effective and that there was a trend of overall improvement. As a result of various
efforts including the promotion of active participation of women based on the WeDo Action plan, leadershiptraining conducted for all generations, and revisions to personnel systems to make them more merit based, there
were particularly large improvements in the areas of the penetration of diversity, the provision of opportunities
for human resource development and education, and putting merit-based systems into practice. In addition,strong results have continuously been received for areas related to newly reborn LIXIL VALUES.
The survey results have been summarized in the LIXIL Sunrise Survey Report booklet for distribution to all
employees covered by the survey. In addition, we have compiled a chart allowing for comparison ofcompany-wide averages and averages of each department for each question, based on which feedback is being
provided to every department. Based on these results, workshops are held for each department and action plans
are established through discussions regarding the results and issues within departments. This use of survey
results to lead to certain action is one of our frameworks for utilizing the voices of employees in management.
* See here for more details on LIXIL VALUES

Holding internal events
Led by President Fujimori, in November 2013 submissions were acceptedwithin the Company for proposals on the topic of becoming global leaders.
The impetus for this was the Creating the Future Leader of Japan Project of
the Nihon Keizai Shimbun. LIXIL also participated in the Miraimen serial
newspaper column contained in the Nihon Keizai Shimbun, a leading
economic newspaper in Japan, every month from November 2012 toMarch 2014 in which managers of various companies would present topics
to students and ask for ideas in response. There were many responses fromstudents to the theme that was presented by President Fujimori. Internal submissions were accepted for themes
LIXIL employees should rightfully address in an aim for globalization, and 380 proposals were received from
employees ranging from young employees to executives, out of which three outstanding contributors were
decided on. At the awards ceremonies held at the end of the LIXPO 2014 new product exhibition for customers
at two locations (Tokyo and Chubu), over a total of 300 employees gathered with contributors as the centerpiece.
Talk sessions were also presented by members of top management, and the venue was filled with an atmosphereof enthusiasm.

47

Mutually sharing and exchanging information with employees
In order to give employees opportunities to learn more about the LIXIL Group, email magazines and booklet aredelivered within the Group on Group-related activities, news, and topics. In terms of email magazines, LIXIL LINK
was opened from FY2014 so that employees around the world could view the latest news for the entire Groupanytime and anywhere. In addition, the LIXIL TODAY is updated every day, the LIXIL MONTHLY updated every
month, and the LIXIL TIMES allows each department to freely post news for each individual department. They
communicate in a timely manner news on other workplaces and projects, such as the opening of showrooms,
factory groundbreaking ceremonies and club activities, and disseminate information to promote anunderstanding of topics such as the LIXIL brand, culture, and organizational structure. In addition, the quarterlyinternal newsletter Link is distributed as a booklet. It is distributed so that information on Group trends andmessages from the president can be delivered to employees such as those on factory production lines that don’t
normally have many opportunities to use the intranet. We also ask that employees take this internal newsletter
home for use as a tool for sharing LIXIL’s activities and the state of workplaces with family members. In addition,
office signage (for providing internal information in internal lunch spaces and meeting spaces) is distributed fromthe headquarters to factories.
The April edition included features on internal brand penetration for FY 2014 and the results of internal
submissions on the theme of becoming global leaders. In addition, a dedicated intra-site was launched topromote reconstruction support for the Great East Japan Earthquake and diversity initiatives being implemented
by the Group, and efforts were made to share information internally on topics such as the voluntary activities of
the LIXIL Women’s Network.
In addition, the President & CEO held round-table discussions in Japan and overseas to accept candid suggestions
and opinions from employees. We actively establish opportunities for meeting with employees at factory visitsand events and when visiting branches and sales offices.

▲ Internal newsletter: Link

▲ Email magazine: LIXIL MONTHLY

48

Promoting Diversity
LIXIL Group has made a “LIXIL Diversity Declaration” and promised to promote diversity among all employees. As
we seek to achieve true globalization and increase the strength of the Group, it is essential that we build a
corporate culture that possesses creativity and energy. At LIXIL Group, we promote diversity across the entire
Group with the aim of achieving “Respect Diversity”, “Provide Equal Opportunities” and an “Implement
Meritocracy.”

LIXIL Diversity Declaration
The corporate culture of LIXIL drives to become a company that utilizes energy and innovation generated bydiversity for the business. We also aim to create an environment where everyone should not be content with thepresent and will achieve better results by continuously clearing self-imposed hurdles.

1. Respect Diversity
We will welcome differences among genders, ages, races cultures,
nationalities, beliefs, and backgrounds.
Energy and creativity generated by the open and passionate
discussion can be used as a source of a competitive edge.

2. Provide Equal Opportunity
We will provide equal opportunities and occasions to anyone thattries to demonstrate positive and proactive attitude regardless ofbackground.

3. Implement Meritocracy
We will fairly evaluate how much one put LIXIL VALUE in practiceand how much one performs.
In order to achieve this corporate culture, we will make our Diversity Declaration here and execute the following
activities.

1. Human Resources Measures
As our stretch goal, we will aim to reach 30% of diversity talents including female employees among the
newly promoted managers in FY2015. (The total numbers of internally promoted and externally hired
managers) *1 30% of new graduate hires in April 2014 will be made up of diversity talents including female
employees. We will establish teams and taskforces with diversity including female employees in order tocreate the opportunity to develop their talents.

2. Human Resources Development
The leadership development programs should include over 15% that are diversity talents including female
employees.

3. Improve the Environment

To promote WLF*2 (Work-Life-Flexibility) and performance by diversity talents including female employees,
we will establish programs such as child-care and Japanese language training.
4. Promote Our Corporate Culture
LIXIL Women's Network will be established to provide forums to help diversity talents and programs todevelop themselves while learning from each other. We will work together to promote advancement of
future opportunities of diversity talents including female employees. The President and his management will
give us a "Diversity Talk" to discuss diversity issues on a monthly basis.
＊1: Total of newly promoted managers and mid-career worker＊2: Aimed at achieving flexible ways of working so that high performance can continue to be realized throughchanging life stages

49

Promoting the active participation of womenAt LIXIL, we believe that the active use of female employees is essential for promoting
diversity, and we have established the Diversity Promotion Office in order to promote theactive use of women. In addition, we formulated the WeDo Action plan in August 2014 asa member of the Group of Male Leaders Who Will Create a Society in which Women
Shine supported by the Cabinet Office, and we are conducting activities in line with thisplan.
*News release on the WeDo Action plan (Japanese Only)
In recognition of these efforts and for promptly achieving results in the promotion of
women executives and managers based on the strong leadership of top managements,
the LIXIL Group received the “Special Cabinet Minister Award” in the “1st Awards for Companies Promoting
Women Who Shine” sponsored by the Cabinet Office. In addition, LIXIL was selected as a Nadeshiko Stock for thesecond consecutive year and as part of the Diversity Management Selection 100 in a joint selection by the
Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange. LIXIL will continue actively addressing
diversity trends going forward in order to achieve management goals.
Click to expand the image. (PDF: 698KB)*News release on the 1st Awards for Companies Promoting Women Who Shine (Japanese Only)*News release on Nadeshiko Stocks and the Diversity Management Selection 100 (Japanese Only)
Have women account for at least 30% ofPercentage of women managers
FY 2014: 37.1%
management promoted employees
Have women account for at least 30% of new April 2015 new hires: 31.6%
Regularly recruited new hires
graduate employees
Have women account for 20% of leadership
Human resource development
FY 2014: 21%
development program participants
On a non-consolidated basis, while there were 22 female managers (0.9%) at LIXIL Corporation in March 2012,
this was increased by approximately 7.4 times to 121 female managers in March 2015 and 162 female managers(6.7%) in October 2015. These 162 employees can be broken down into 13 department managers or equivalent
and above (2.6%), and 149 section managers or equivalent and above (7.8%). In addition, while there was 1
female executive (including the LIXIL Group, 1.0%) in March 2013, as of October 2015 there are 9 female
executives (7.4%), which can be broken down into 2 director, 2 senior managing executive officers, and 5
managing executive officers. We plan to further increase opportunities for women to be active going forward.
*(): The percentages are the ratios of the number of women in all management position*In female executives, directors and senior managing executive officers include one non-Japanese employee each(total of two non-Japanese employees)

Number and percentage of women managers*Only in Japan*Data collected based on the qualification system of individual*For employees at March 31 of the fiscal year

50

operating companies

Promoting Work-Life-Flexibility
LIXIL aims at achieving flexible ways of working so that high performance can continue to be realized throughchanging life stages as a policy for establishing a work-life balance. An expert committee including members of
the LIXIL Labor Union called the WLF (Work-Life Flexibility) Advisory Committee has been launched, and as aresult of repeated discussions between labor and management, the following systems were introduced andexpanded as of April 2015.
* See here for overall work-life balance support policies
Aim

Contents of system revision

Promoting use of paid leave

Introduction of memorial leave, Promoting acquisition of relaxed leave

Reemployment of employees thathave resigned due to childbirth,childcare, or nursing careChildcare support

Introduction of career return system

Nursing care support

Extend the childcare leave period from a maximum of one and a half year to a
maximum to three years
Extend the reduced work hours for child care period for a maximum of until
completion of third year of elementary school
Introduction of the adjusted working time system (change work starting andending time) for employees providing childcare, expand application to pregnant
women as well
Formal introduction of extended daycare fee assistance
Provision of intranet and email environment during leave (will be introduced assoon as ready)
Assistance for amount equivalent to social insurance contribution during leave
Accumulated paid leave (lapsed paid leave) applied to absence for bonus
calculations※Conducted by LIXIL Corporation and some operating companies and subsidiaries

Promoting the employment of people with disabilities
LIXIL employs 818 people with disabilities (427 at LIXIL Corporation), and its employment rate of people withdisabilities is 2.59% (2.22% at LIXIL Corporation). In addition to the creation of employment opportunities, we
also work to create workplace environments that allows for the lively participation of everyone, and we provide
ways of working in line with the characteristics of disabilities in a wide range of workplaces such as R&D,
production, and various administrative fields.
Furthermore, in July 2014 we opened the WING NIJI in LIXIL Corporation’s office in Koto Ward, Tokyo, an
employment center for people with disabilities that takes into consideration the characteristics of disabilities as
we take on the challenge of further expansion of employment for people with disabilities.

51

Number and rate of disabled employees (persons)Notes:
1. Only in Japan
2. For employees at March 31 of the fiscal year
* Calculated based on the Employment Rate System for Persons with Disabilities under guidance of the Ministry of
Health, Labour and Welfare

Promoting reemployment after retirement age
LIXIL corporation had adopted a reemployment after retirement age system up until FY2014 so that employees
who were 60 years old could continue working using their wealth of experience and skills and pass ontechnologies to the next generation. A transition was made to a 65 years old retirement system from FY2015 tosecure further employment.

Reemployment ratio after retirement

Notes: Only in Japan* See here for the scope of data collection*The LIXIL Group Corporation has received third-party assurance from the Deloitte Tohmatsu Evaluation andCertification Organization for the data from FY2013 and FY2014.

52

Occupational Safety and Health
The LIXIL Group states in its Group Charter of Corporate Behavior, “The Group promotes the mental and physicalwell-being of all workers by prioritizing safety to realize an ideal working environment without any work-related
accidents.” Accordingly, the group has implemented approaches to protect the safety and health of its
employees.

Occupational safety and health management system
Its active approaches to prevent accidents at work include the introduction of an occupational health and safety
management system. Furthermore, a “Health and Safety Committee” has been set up in each businessestablishment for the purposes of sharing issues relating to the health and safety at work, considering actions toimprove and implementing management based on the PDCA cycle.

Lost time injuries frequency rate and severity rate (Only in Japan)[Scope of data collection] LIXIL Corporation, 10 subsidiaries, and 7 Group operating companies*Only in Japan*Only directly employed* Calculated based on the method used in the Survey on Industrial Accidents of the Ministry of Health, Labour andWelfare** LTIFR: Lost time injuries frequency rate is the number of deaths and injuries due to industrial accidents divided by
the cumulative hours worked multiplied by one million (lost time is defined as any period of one day or more)53

Production division initiatives
While the production division had been divided into a
metals and construction materials company and a
housing and construction materials company following
the LIXIL integration in April 2011, LIXIL’s seven domestic
regions and 40 domestic plants were reorganized in April
2014. Although differing occupational safety and healthmanagement systems (independent systems based on
OSHMS and OHSAS) for each company had been
established up until then, it was decided to integratethese management systems. In addition, safety
self-inspection seminars are regularly held for each plantin Japan in an effort to confirm and inspect actual
production sites while conducting independent activities
aimed at thoroughly eliminating risk factors formachinery and equipment. Safety management officers
have been appointed to all plants to lead theunderstanding of the cause and the taking of an
appropriate response in the event of an accident, and toshare the relevant information with all plants within two
business days. Based on the shared information, allplants conduct checks to confirm that there are no risksof similar disasters or accidents at each plant as efforts
are made to prevent recurrence at all plants.

Accident ratio by type of work:
LIXIL Corporation’s domestic production
division*Only the Production Department and production
subsidiaries of LIXIL Corporation(Including direct and indirect employment, leave, andnot on leave)*Short stop: A situation in which facilities had to be
stopped for a temporary problem although amalfunction did not occur, or the occurrence of aspinning phenomenon (idling without production) for
which restoration to the original state was possible
through simple processing.

(Example) Safety and health management system diagram

Health management
LIXIL actively supports the health promotion of employees in cooperation with the LIXIL Health Insurance Society.
LIXIL WELLNESS has been promoted since 2015 as cooperative activities leveraging the mutual resources andstrengths of the company and the health insurance system. With a basic policy promoting activities for healthmaintenance and improvement, the following efforts are made together with the Health Insurance Society.
・Increase the health awareness of every employee and improve awareness of health self-management
・Provide opportunities for disease prevention and health promotion for many people
・Develop comfortable working environments that take into consideration the health of every employee
As a concrete initiative, activities were commenced from FY 2012 to prevent the increased severity of diseases byconducting regular health checks for all employees every year and actively recommending examination by
medical institutions in coordination with the human resources department and Health Insurance Society for
employees identified to be at high risk for diabetes or hypertension based on these results. During FY 2014,
recommendations through interviews with a medical professional were provided to 597 employees, whichfaithfully led to examination by medical institutions.
In addition, interviews by industrial physicians are faithfully conducted with employees with long working hours
as part of preventive health efforts so that no health damage is caused.

54

Furthermore, the Health Insurance Society encourages not only the insured employees but also dependents toreceive clinical surveys, uterine cancer and breast cancer screening, dental checkups, etc., and provides
assistance for the medical fees. In addition, specific health guidance for employees age 40 or above was provided
for 655 employees during FY 2014.
FY 2012FY 2013

FY 2014

Clinical survey consultation

6,426

7,184

7,394

Uterine cancer and breast cancer screening consultation

1,082

1,219

1,305

Dental checkup consultation

285

179

180

Specific health guidance personnel Implementation

883

960

655

* Only LIXIL Corporation
We are implementing the Health Promotion Campaign so that employees can actively work on improving theirhealth. The system allows participants to acquire points for activities such as walking, dieting, and quitting
smoking that can be exchanged for a selection of prizes. During FY 2014, 5,830 employees and family members
participated in the campaign.
FY 2012
Health promotion campaign

FY 2013

5,504

5,634

FY 20145,830* Only LIXIL Corporation
At LIXIL, we believe that mental health initiatives are also important for health promotion. At each businesslocation, we implement mental health seminars and stress checks as part of efforts to ensure that every
employee has a correct understanding of mental health and their own condition in order to encourage them totake preventive measures if needed. A Physical and Mental Health consultation Contact Point to provide support
by telephone and email was established in 2015. Specialized support is provided in response to individual
consultations from employees on concerns related to mental or physical health by an internal physician.
Reinstatement support is provided for employees on leave due to illness through the Workplace Reinstatement
Program. This program is structure so that support can be provided based on the individual mental and physicalconditions of employees on leave, from care during leave to support and follow-up after reinstatement.
Furthermore, we have assigned industrial physicians specializing in mental health at major business location
nationwide to establish a system that can provide specialized support for mental health management
nationwide.
Mental health seminar(implemented eight times)
Stress check participants
Mental health management education for managers

FY 2012FY 2013

FY 2014204(eight times)
3,731

230
(ten times)
84

311(twelve times)
466

129

125

96

* Only LIXIL Corporation

Establishment of the KENKO Company Council
The KENKO Company Council was formed by the LIXIL Group together with 13 other companies and with thebacking of the Ministry of Economy, Trade and Industry for the purpose of improving the effectiveness andusability of health promotion activities for member companies overall through the sharing and use of healthmanagement know-how. Centered around the concept of extending the life expectancy of citizens in line with
the Japan Revitalization Strategy, the council conducts activities aimed at being the leading company
organization for health promotion in order to contribute to not only the health of employees of member
companies, but also the extension of life expectancy throughout Japan.
Furthermore in the Healthy Management Survey questionnaire (a survey on initiatives related to the health of
employees) that was conducted by the Ministry of Economy, Trade and Industry during the previous fiscal year,
we managed to receive the top rating in the industry (metal products).

55

Creating a Better Workplace

In order to establish working environments where every employee uses their full capabilities and continuallywork energetically, the LIXIL Group strives to develop environments that allow for a balance of both work andlife.

Work-life balance support
LIXIL Corporation has established systems that support a work-life balance in all of the various life events of
employees. LIXIL has acquired Kurumin certification from the Tokyo Labour Bureau of the Ministry of Health,Labour and Welfare in recognition of the implementation and attainment of the action plan for working and childraising that was formulated based on the Act on Advancement of Measures to Support Raising Next-Generation
Children (October 8, 2015).

Main work-life balance support systems
Name of system
Working
structure
Leave

Details
Flextime system
Relaxed leave
Memorial leave
Long service leave

ChildbirthChildbirth leave

Childcare

Spouse childbirthleaveChildcare leave
Reduced working
hours
Adjusted working
time system
Extended daycare
fee assistanceNursing careChildcareand nursing
careChild nursing careleave
Nursing care
leave
Reduced working
hours
Monthly salary
supplementationBonussupplementation
Nursing care
leave
Career returnsystemMembers of applicable departments can start and finish work within the flexible
hours on a voluntary or planned basis
Three days a year (can be connected with weekends, national holidays, andconsecutive holidays)
Two days a year
Leave and memorial goods presented to employees for long service (10 years, 20
years, and 30 years)
Six weeks before childbirth, eight weeks after childbirth (maternity allowance
provided from health insurance)
Three days a year (split acquisition possible)
Up to the child reaches a maximum of three years old (childcare leave benefit
provided from employment insurance until child reaches a maximum of one anda half years old)
Working hours can be reduced up to two hours per day for employees caring fora child until they reach the third year of elementary school (units of 30 minutes)
The work start time or work finish time can be adjusted by 30 minutes or one
hour for employees that are pregnant or caring for a child until they reach thethird year of elementary school
Extended daycare fee assistance provided for employees caring for a child until
they begin elementary school if extended daycare is required for businessreasons
Five days per year for each child until they begin elementary school requiring
nursing care (maximum of ten days for up two or more people)
Once for every state requiring care for each person requiring nursing care, up toa total of 93 days (split acquisition possible)
Working hours can be reduced up to two hours per day (units of 30 minutes)
Assistance for amount equivalent to social insurance contribution during leave
Lapsed days of accumulated paid leave (lapsed paid leave) handled as workattendance for bonus calculations
Five days per year for each person requiring nursing care (maximum of ten daysfor up two or more people)
System for the reemployment of employees that resigned due to childbirth,childcare, or nursing care

Note：Conducted by LIXIL Corporation and some operating companies and subsidiaries

56

Usage of various systems
Usage of maternity leave system (persons)*Only in Japan

Usage of childcare leave system (persons)

Number of men and women who started using the plan
FY 2012FY 2013

FY 2014

Number of male employees who started using the system at LIXIL Corporastion

1

2

5

Number of female employees who started using the system in the LIXIL Group

254

286

266

Number of female employees who started using the plan at LIXIL Corporastion
197
219
196
*Only in Japan*LIXIL Corporation: The acquisition rate of childcare leave by male employees (the rate of childcare leave acquirer
accounted for by male employees with spouse that gave birth) was 0.2% in FY2012 (average number of days acquired:85), 0.4% in FY2013 (average number of days acquired: 108.5), and 1.2% in FY2014 (average number of days acquired:75.8).
*Return rate = (Number of employees returning from care leave) / (Number of employees planning to return from careleave) (%); Number of employees planning to return from care leave: The number of employees who use the careleave system and who plan to return in the fiscal year. However, this is provided that when a change in the planned
date of return pushes the date into the previous or following fiscal year, the employee planning to return from careleave is accounted for in the number of employees planning to return from care leave (denominator of return ratio) of
the previous or following fiscal year.

57

Usage of care leave system (persons)Usage of care leave system (breakdown by male and female employees)
FY 2012FY 2013
FY 2014
Number of male employees who started using the system in the LIXIL Group2
3
4
Number of male employees who started using the system at LIXIL Corporation
1
3
1
Number of female employees who started using the system in the LIXIL Group77
8Number of female employees who started using the system at LIXIL Corporation
5
5
6
Only in Japan* Number of employees planning to return from care leave: The number of employees who use the care leave system
and who plan to return in the fiscal year. Return rate = (Number of employees returning from care leave) / (Number of
employees planning to return from care leave) (%); provided that when a change in the planned date of return pushes
the date into the previous or following fiscal year, the employee planning to return from care leave is accounted for in
the number of employees planning to return from care leave (denominator of return ratio) of the previous or following
fiscal year.

58

Prevention of overwork
LIXIL Corporation promotes highly efficient and productive ways of working to achieve an optimal number ofworking hours. Initiatives aimed at reducing overtime include the designation of Wednesday as a no-overtime
day and the stipulation that employees should leave the office at the designate time as a general rule, as well as
the introduction of an overtime advance notice system as a means for encouraging employees to consciously
reduce overtime. In addition, follow-up on employees with long working hours is conducted jointly by the
Human Resources & General Affairs Department and the departments the employees belong to.
Meanwhile, we aim for a paid leave acquisition rate of 50%. As a measure for promoting this, we have introduced
the relaxed leave and memorial leave systems for each anniversary that allow for the acquisition of paid leave forthree consecutive operation days once a year.

Monthly average overtime work hours*Only in Japan*Number of employees under time control: The 12-month average number of regular staff (including managers) andcommissioned and part-time staff. However, LIXIL VIVA CORPORATION contains only regular staff.
** Overtime hours of regular staff (including those of managers) according to the systems of individual operatingcompanies

Number of days of annual paid leaves taken per person **Only in Japan*1 The number of regular staff (including managers) and commissioned and part-time staff (registered at March 31 of
the fiscal year)*2 Total number of days taken by qualified staff (excluding special holidays)*The LIXIL Group Corporation has received third-party assurance from the Deloitte Tohmatsu Evaluation andCertification Organization for the data from FY2013 and FY2014.

59

Social welfare
So that employees and families can live abundant and stable lives, LIXIL cooperates with the Labor Union, Health
Insurance Society, and LIXIL Smile Club* as it works to enhance social welfare centered around initiatives
including lifestyle improvements, life stage support, and mutual aid. Specifically, in addition to various systems
including group insurance, asset formation savings, employee stock ownership plan, and pensions, LIXIL also
operates a long service leave system in which leave and bonuses are provided after consecutive service hasreached 10 years, 20 years, and 30 years; a congratulation and condolence money system in which bonuses arepaid at the timing of life events including marriage, childbirth, and children entering schools; and various
consultation contact points for employees.
*LIXIL Smile Club: Welfare association for promoting the lifelong welfare of union members and their families

Main consultation contact points (including social welfare and consultations on other issues)
Details of consultations

Contact point

Sexual harassment power harassment
consultation contact point
Consultations on workplace concerns

Human Resources & General Affairs Headquarters, Human
Resources Department
LIXIL Workers Union

Legal consultation

LIXIL Workers Union

Consumer finance consultation

LIXIL Workers Union

Legal, tax, and health consultation

LIXIL Smile Club/general affairs section of each office

Loan and savings consultation

LIXIL Smile Club

Insurance consultation

LIXIL Smile Club

Concerns such as nursing care, health,manners, traditions, and human relationships

LIXIL Smile Club/general affairs section of each office* See here for the scope of data collection

60

Fostering Human Resources
Basic stance
LIXIL Corporation’s basic policy is to develop professional and leader human resources capable of performing
anywhere in the world. Specifically, LIXIL Corporation is engaged in the following themes.

Theme 1. Development of next-generation leaders
Selection and development of leader candidate at all levels

Theme 2. Professional development

Planning and promotion of department dedicated education

Theme 3. Learning basic business skills

Business skill education on the basics for professionals and leaders

Assessment framework (human resources performance rating system)
Assessments covering all employees are conducted on the two elements of performance and values based on
merit-based practice. An open system is managed in which the employee involved participates in goal-setting
and self-assessment and thorough feedback is provided on the assessment results through interviews withsuperiors.

The purpose of feedback

1. By reliably providing feedback, improve the level of satisfaction towards assessments and ensure fairness.
2. Aim to develop employees by looking back over past activities and sharing future expectations.

Human resources performance rating flow

Education systems
LIXIL Corporation works to develop next-generation management leaders and professionals through an
educational system called the LIXIL Academy (Internal). LIXIL Academy (Internal) is composed of the following
three educational institutions that provide education in cooperation with each other.
1. Global Leadership Institute
Concentrated development and visualization of next-generation management leaders
2. Professional College
Improvement in overall ability and specialization of each business department and functional department

3. Basic School
Learn basic skills in line with the will of employees to learn

61

Development of next-generation management leaders
LIXIL Corporation has put its energy into the cultivation of next-generation executive leaders who will show theirleadership in future-generation management. In 2012, LIXIL began its “Executive Leadership Training (hereinafter
called “ELT”)” for managerial-level staff to enhance the leadership of executive candidates. This training is a
one-year program to inspire participants from various perspectives, which includes residential workshops at
special training facilities and overseas, and a half-year of personal coaching. This enables participants to learn
about leadership, corporate strategy and global business. Participants gain stimulus and insights by receiving
rigorous critiques from the senior managerial members including the president and CEO.
Since fiscal 2013, LIXIL has gradually deployed “Senior Leadership Training (hereinafter called “SLT”)” forpersonnel in mid-level positions to provide them with an opportunity to consider their own leadership at an
early stage, “Junior Leadership Training (hereinafter called “JLT”)” for mid-career personnel, and “Fresh
Leadership Training (hereinafter called “FLT”)” started for young personnel in their twenties. In this manner,leadership development has been provided for all age levels from young personnel to the executive level.
Two session of “Global-Executive Leadership Training (G-ELT)” were also conducted, gathering selected ELT
graduates and leader candidates of overseas group companies. Going forwards, LIXIL will also work to develop
leaders capable of conducting business on a more global level, through means such as training developed jointlywith overseas top business schools, the holding of workshops in Europe, North America, and Asia, anddispatching employees to business schools.

▲Executive Leadership Training▲Junior Leadership Training

Categories and usage of various training and education support systems during FY2014 (including
overseas business locations)
Item

Training summary

Number of participants

New employee training

Basic training for employees newly entering the company

528

Hierarchical training

952

Executive Leadership
Training (ELT)*

Training for each job position or level for developing the skills
and capacities respectively required
Scope: Department head class (executive candidates)
Purpose: Seeking global leadership

Senior Leadership
Training (SLT)*Scope: Section head class
Purpose: Cultivating values and learning management skills

47

Junior Leadership
Training (JLT)*

Scope: chief class (middle-level employees)
Purpose: determining to become a leader and training basic skills

84

Fresh Leadership
Training (FLT)*Management training

88

Scope: Young personnel
24
Purpose: Young leader development
Training for employees being promoted to management409
positions
Division training
Training for each division for developing the skills and capacities
16,870respectively required for development, production, sales, andother divisions
Other Skill acquisition
Special independent training for industries and job categories,
9,239
training, etc.
including the acquisition of official qualifications*Leadership training is only conducted at LIXIL Corporation and Kawashima Selkon Textiles Co., Ltd.
In addition, domestic companies have introduced systems for correspondence course recommendations and thepartial provision of participation costs to employees that have completed courses.

62

Employee career development support
As part of career development support measures, LIXIL has introduced an MBA acquisition system for young
employees. This system aims to provide employees with the opportunity for learning leadership, management
skills, and an international way of thinking in order to develop passionate young employees committed toconstant self-improvement and contribution to the expansion of LIXIL’s business. In response to internal
application, ten, eight, five, and seven employees were selected in FY 2011, FY 2012, FY 2013, and FY 2014,
respectively, and the sending of these employees to universities in Japan and overseas to study for an MBA has
been commenced.

Significant career development systems and voluntary self-development systems at major
companies use status during FY2014
Item

System introducing organization

Internal application system

LIXIL Corporation
PT American Standard Indonesia
LIXIL Manufacturing (Dalian) Corporation
LIXIL-Haier Housing Products (Qingdao) Co., Ltd.
LIXIL SENIOR LIFE
Kawashima Selkon Textiles Co., Ltd.
LIXIL VIVA CORPORATION
LIXIL Total Service Corporation Japan
LIXIL SUZUKI SHUTTER CORPORATION
Asahi Tostem Exterior Building Materials Co., Ltd.
LIXIL Manufacturing (Dalian) Corporation

Qualification acquisition
recommendation system

MBA system

LIXIL Corporation

Number of users

8

407

18

Self-report system*(Career building report)

LIXIL Corporation
3,768
Kawashima Selkon Textiles Co., Ltd.
Asahi Tostem Exterior Building Materials Co., Ltd.
JAPAN HOME SHIELD CORPORATIONG TERIOR Corporation
HIVIC CO., LTD.
*Because the qualification acquisition recommendation system and self-report system are conducted for all employees
at LIXIL Corporation, totaling has not been conducted.

63

Labor-management relations
The LIXIL Group believes that it is important to aim for business development and the stability and improvementof the lives of employees and to create an equal and responsible trust relationship between labor andmanagement.

Labor-management relations
At LIXIL, the LIXIL Labor Union(*) has a union shop system composed of regular staff on an original registrationbasis, and 82.1 % of the total number of regular staff in Japan, or 14,038 employees, are union members as ofMarch 31, 2015.
Labor-management negotiation meetings and group negotiations are regularly held for labor-management
discussions in an aim to share information on issues such as working conditions and the working environment sothat issues can be resolved together by labor and management.
In addition, the Labor-Management Advisory Committee has been formed for important themes such as therevision of major working conditions so that decisions are made after sufficient study and discussion. In
particular, the WLF Advisory Discussion held repeated discussions on revisions to systems for supporting abalance between work and family life, such as the system for shorter working hours during childcare andextended daycare fee assistance. Management and labor work together to communicate the working conditionsand various systems introduced and revised through this process through means such as dissemination efforts
that include system introduction through the internal intranet and employee follow-up provided by thesupervising general affairs departments and the distribution of the Union Guide that is independently compiledby the union to all employees that contains information on the main points of systems.
In an aim to further deepen the trust relationship that has been established between labor and management,
improve the corporate performance with labor and management in harmony, and to create rewarding andmotivating workplaces, we will strive to make further improvements to achieve working conditions befitting of aleading company in the living and housing industry.
*See here for details on work-life balance support*LIXIL Labor Union: Along with the integration of five companies at LIXIL in April 2011 (Tostem, INAX, Shin Nikkei,
Sun Wave Corporation, Toyo Exterior), the labor unions of each of the former companies were united to form the
LIXIL Labor Union from FY2012.

Basic Labor-Management Agreement (excerpt)
Chapter 1. General provisions

Article 5. Rights of the company and the union
The company and the union shall mutual respect labor rights and management rights, and not interfere withthe legitimate exercise of these rights.

Chapter 4. Collective bargaining

Article 34. Principles of collective bargaining
Collective bargaining shall seek the peaceful and smooth conclusion of the matters being negotiated in a
spirit of sincerity and good faith with the company and the union on equal footing.

Chapter 5. Dispute resolution

Article 48. Peace obligation
The company and the union shall achieve peaceful and smooth resolution of issues by discussing all laborand management issues based on a spirit of mutual trust.
Article 49. Labor dispute adjustments
Both the company and the union shall work to smoothly resolve issues through discussions or groupnegotiations with a spirit of sincerity, and for disputes for which no compromise can be reached, the labor
relations committee shall be applied to for mediation or arbitration, and the company and the union shallwork to achieve a peaceful resolution to the dispute through that mediation or arbitration.

64

Main labor-management discussion and labor union meeting bodies

1. Year-End Bonus Negotiations: group negotiation agenda consists of bonuses only; total of 4 times
2. Spring Labor Offensive: group negotiation agenda consists of wages, bonuses, and working conditions; total of
4 times
3. Central Labor Relations Committee: 9 times per year sharing information on company policies, sharing
information on union policies;
4. Central Executive Committee: confirmation of progress of union activities, considering policy, sharing
information on company policies; 10 times per year
5. Central Committee: approval of union activities, sharing information on company policies; 9 times per year
6. Safety and Health Committee: sharing information and considering policy for each business location; 12 times
per year

LIXIL Labor Union activities
The LIXIL Labor Union that was established in 2012 has implemented activities based on the slogan “ALL LIXIL:
Creating rewarding and motivating workplaces.”
As LIXIL has undergone rapid transformations, the significance of the labor union was considered once again in
the Central Executive Committee and Central Committee, and it was decided to set forth a new mission, vision,and value to serve as the basis for all union activities. The union activity policy for will be formulated in a mannerthat reflects this mission, vision, and values.

Mission (significance of the labor union that will be achieved through its mission)
The union will strive to create, protect, and develop smiles for everyone.

Vision (what the union should be in order to achieve the mission)
Item
Company

Vision
A company that is loved aroundthe world,
where people can work with pride

Workplace

Workplaces full of motivation,
vigor, and a spirit of gratitude

Individuals

People who take the initiative to
grow,
and who are thankful and worthyof thanks

Main action items during FY2015 (August 2014 to July 2015)
・Promote engagement
・Implement work-life flexibility
・Enhance remuneration systems
・Contribution to society
・Foster a sense of unity
・Establish workplaces where people can work stably
・Promotion of self-development
・Foster a culture of mutual thankfulness
・Maintaining a healthy mind and body

Value (the action principles for labor union officers to achieve the mission and vision)
We value bonds for the benefit of everyone.
We value learning.
We value actions that take the initiative.

Issuance of a labor union newsletter
The labor union newsletter TUNE is distributed to all union members for the purpose of
fostering a sense of unity between union members and deepening the understanding ofunion activities.
The newsletter contains not only introduction of exchange events and functions forunion members and explanations on LIXIL’s new personnel system, but also enhanced
content including articles focusing on branch office activities and new feature articles inorder to enhance the sense of unity among members of the LIXIL Labor Union.

65

LIXIL Smile ClubThe LIXIL Smile Club was established independently from the labor union in October 2001 as a specializedorganization for handling welfare systems for the purpose of working to promote the lifelong overall welfare ofunion members and their families. By becoming an independent organization, the club has been able to expand
membership beyond the union framework and stably provide a high-quality social welfare system utilizing thesescale advantages. Currently (as of the end of March 2014), the LIXIL Smile Club has approximately 15,000
members consisting of members of the LIXIL Labor Union and six labor unions of companies within the Group.
The membership fees collected from these members and business revenues will be used as resources forworking to further enhance social welfare systems while supporting the stable and fulfilling living of members.

Introduction of main systems
Congratulation andcondolence money:
Mutual aid and insurance

Wedding bonus, childbirth bonus, entering school bonus, condolence money, recovery
bonus, housing disaster relief money, etc.
Group mutual aid (National Federation of Workers and Consumers Insurance Cooperative
Insurance), endowment insurance (Japan Post Life), Group Long Term Disability Income
Indemnity Insurance (Tokio Marine & Nichido Fire Insurance Co., Ltd.,), etc.
Savings and financing:Workers’ credit union (mortgages, car life loans, etc.)
Other forms of life
Various discount systems for ceremonial occasions, leisure, shopping, cash backs, etc.
support(Benefit One, Zwei, funeral services nationwide, JS Resort, Akebono Brake Industry Co.,
Ltd., etc.)*Maebashi LIXIL Labor Union, Matsudo LIXIL Labor Union, Yokohama LIXIL Labor Union, Ibuki LIXIL Labor Union,
Fukuoka LIXIL Labor Union, Sun Wave Labor Union

66

Environmental Activities
The LIXIL Group continually engages in proactive
efforts toward the environment in all processes
related to homebuilding with the hope of achieving
harmony between people’s lives and our naturalenvironment.

67

Environmental Principles

Our Vision and Promise
We the LIXIL Group believe in achieving harmony between how humankind lives and the earth that we live
on. We will conscientiously apply our environmental awareness across the entirety of what we do: what,
how, and for whom we create a better living setting.

The Principles We Apply
We the LIXIL Group are committed to achieving this vision. We will continuously improve our environmental
management systems, we will employ ecologically responsible practices throughout our operations, and wewill embrace vigorous communication with all of our direct and potential stakeholders.
Each of us, for our customers, undertakes to provide products and services that reflect and optimize thefull bounty of nature. We will fully evaluate and explore, along with our customers, what should be theappropriate living setting for the times ahead.
Each of us, in the regular course of business, accepts a duty to uphold environmental regulations andprevent pollution. We will pursue actions to reduce carbon emission, enhance recycling of resources, andpromote harmonious coexistence with nature.
Each of us, as part of a given area or society, seeks a deeper mutual understanding with the individual,
civic, nongovernmental and nonprofit entities that are among us. We will, by emphasizing cooperationand dialogue, advance together our own unique activities for preserving the environment.
68Environmental Vision

We the LIXIL Group seek by 2050 the net zero balance between a full, bountiful way of living and an
acceptable burden on the earth's environment, leading the world in the housing and living amenities
industry.

We will introduce technical innovations that will achieve
net zero balance energy use in residences and buildings
as a total provider of housing and living requirements,
and contribute to global energy conservation and CO2 reduction.
As a global leader in our industry, for the products that we offer to all peoples of the world, we must be
relentless in reducing the direct or indirect environmental burden of all our business activities. And we will
also implement activities for the preservation and recovery of water resources and forestry ecosystems
throughout the world. Environmental Management

69Environmental Strategy

Based on our Environmental Principles, we have prioritized three themes in our Environmental Strategy, and willachieve these without fail through execution of concrete actions.

Theme 1
As we offer products and services that reflect and optimize the full bounty of nature, we will also consider
future ways and standards of living, together with our customers.
Theme 2
We will conduct our regular business activities in a manner that will reduce carbon emission, enhance
recycling of resources, and promote harmonious coexistence with nature.
Theme 3
We will work to further mutual understanding with our stakeholders, and collaborate with them to takeactions in our own, original way.
In direct LIXIL business activities, we will focus on raising production efficiency and launching renewable forms ofenergy, to reduce CO2 emissions below 2010 levels (prior to corporate integration). Moreover, in areas that we
impact indirectly, such as the procurement of raw materials and the use and disposal of products, we will workon technical innovations for reducing, extending and conserving resources, and for the conservation and creationof energy, insulation and passive technologies. By doing so we will help to reduce energy consumption
throughout the entire product lifecycle to below 2010 levels (prior to corporate integration).

70

Environmental Strategy: Theme 1
As we offer products and services that reflect and optimize the full bounty of nature, we will also
consider future ways and standards of living, together with our customers.

We will make widespread a product line that reduces energy consumption per residence or building to azero-sum balance, through control technologies that enable a comfortable living environment.
Residences and buildings in the future will demand high-performanceinsulating window sashes and doors, in tandem with other productswith enhanced energy-saving functionality, we can significantly reduceenergy consumed in housing, including air conditioning and heatingenergy. And by combining this with solar power generation systems,
we are offering a product line-up that reduces overall energy
consumed per residence or building to a net of zero.

Our product line, incorporating control technologies for water needed in daily living, greatly reduces theamount of water used per residence or building.
Residences and buildings use vast amounts of water daily in baths,
toilets, kitchens and the like. We have a wealth of proven experience indeveloping and selling toilets, baths, showers and other items withadvanced water-saving functionalities. Building even further on thisbase, we are committed to a product line with even more advanced
water control technologies, to protect our precious water resources.

We will also introduce proprietary technologies related to renewable energy, and launch newenvironmental projects.
To achieve a low-carbon society, we must reduce the dependency on
fossil energy sources, and work proactively on the introduction ofrenewable energies, including that generated by wind and solar power,
as well as solar and geothermal heat. Furthermore, we will introduce
proprietary, state-of-the-art technologies for next-generation residential
solar power generation and wind power generation – technologies that
go beyond current technical boundaries. We will broadly popularize
these among the general public as new environmental projects.

71Environmental Strategy: Theme 2
We will conduct our regular business activities in a manner that will reduce carbon emission,
enhance recycling of resources, and promote harmonious coexistence with nature.

We will increase the number of self-sufficient plants that adopt environmentally-friendly ‘green’ power byintroducing renewable energy into the manufacturing process.
A great deal of the energy used at manufacturing sites to date has been
supported by fossil energy. By proactively introducing renewable energy into
our production activities, we aim to reduce to zero the amount of fossil
energy consumed. When introducing such energies, we will consider the
possibility of wind power generation, solar power generation andgeothermic power generation, taking account of regional characteristics. By
establishing power storage systems concurrently, we will also realize stableself-sufficiency for power generation.
We will reduce the amount of virgin raw materials used in procurement
through advanced recycling systems for the disposal of products.
Using our experience in the regeneration and reuse of waste materials
produced when renovating residences and other buildings, we will
accelerate closed recycling processes, in which products made mainly frommetals such as aluminium and copper are disposed by returning them as isto the original production process. This will reduce the energy required forthe procurement of raw materials.
We will reduce the amount of water resources used in manufacturing
processes by establishing a recycling system for water used in factories.
Large amounts of water of varying levels of purity are used at manufacturing
sites. At the same time, there are global concerns that water resources will
be depleted. We are working on the construction of water recycling systems
and more efficient use of water in manufacturing processes to reduce theamount of water used.
We will optimize our utilization of forestry resources, preserving
forestry ecosystems by creating guidelines and developing technologies
for procurement.
We use large amounts of timber resources as materials for kitchens, interiors
and other products, thus we will develop guidelines for their procurement
and use, and ensure that we use timber from forestry resources that arerecycled in a sustainable manner. We will also develop technologies formaterial modification and substitution.

72

Environmental Strategy: Theme 3
We will work to further mutual understanding with our stakeholders, and collaborate with themto take actions in our own, original way.

We will raise the environmental literacy level of all employees through an environment awarenesstraining program for employees.
With the set of common values based on our Environmental Principles andEnvironmental Vision, we are building a corporate culture where each
employee transcends job boundaries and takes personal action for the benefit
of society. Employees will also be proactive in regional communities in Japanand overseas. The mark for our training program shown here symbolizes thisspirit.

We promote environmental contribution activities that lead to cleaner water through on-site employee
classes and workshops.
LIXIL conducts educational activities for children in Japan and Asian
nations to communicate the importance of water in our daily life. In
Japan, employees will visit elementary schools to communicate directlywith children in on-site classes using original teaching materials.
Overseas, we collaborate with local NPOs to provide educational
support to children so that they can understand, think and take action
themselves.

We implement activities that will lead to the creation of beautiful forests through preservation of local
mountainous regions and tree-planting by employees.
At LIXIL, we understand the importance of preserving our ecosystems
and the multi-faceted functions of forests including water conservation.
We work together with local NPOs and municipalities through avolunteer program that promotes forestry awareness and conservation
activities. And at our manufacturing sites in Japan and overseas, wehave a tree-planting program where our employees and their families
work together with neighboring communities, authorities and others.

73Environmental Management
The LIXIL Group established the LIXIL Group Environmental Management Rules during FY 2012, and it has
implemented an environmental management system aimed at achieving the medium-term environmental
targets established in 2015 based on the LIXIL Environmental Vision. ISO14001 certification that was individuallyacquired by factories in Japan was consolidated, and ISO14001 certification has successively been acquired foroverseas factories that had not acquired ISO14001 yet.

Environmental promotion system
In July 2012, the LIXIL Group Environmental Strategy Committee (chaired by the President and CEO andcomposed of all executive officers) was reorganized into the CSR Promotion Committee. Environmental
management has been promoted at all group companies, including associated companies, under the new system.
From FY2015, a promotion framework has been established in line with the new technology company system.
* Please see here for CSR Promotion StructureInternal Auditing
Internal audits based on ISO14001 are conducted on the effectiveness and legal compliance of theenvironmental management system at the production facilities of LIXIL Corporation. At departments andoperating companies other than production facilities, internal audits are conducted base on the LIXIL Group’s
unique environmental management system, the scope of which is gradually being expanded to include
subsidiaries. In addition, legal compliance education and legal compliance audits were commenced by the Head
Office Environmental Department. While there were no major violations found in the audits, follow-up is
conducted in response to audit suggestions and improvements are confirmed.

Awards and recognitions
Recipient of a Prize at the Eco Products Awards
LIXIL was honored with the Chairperson's Award, Eco-Products Awards
Steering Committee, in the Eco-Products Category at the 11th Eco
Products Awards sponsored by the Eco-Products Awards Steering
Committee. LIXIL’s prize-winning products included the EcoAir 90, a highefficiency heating and ventilating unit that uses the heat of indoor air
being exhausted outdoors to keep the temperature of outside air as close
to room temperature as possible, and Koko Eco, a novel method that can
improve a home’s heat insulation performance from a single room in as
little as one day by installing inner windows or insulation panels on thewindows, walls, and floors.
LIXIL has also been honored with the Minister's Prize, the Ministry ofEnvironment, in the Eco-Services Category at the 9th Eco ProductsAwards for its Tsufu-Sofu Design Support Service.
▲left: EcoAir 90, Right:Koko Eco* Click here to learn more about the high efficiency heating and ventilating unit EcoAir 90（Japanese Only）* Click here to learn more about the Koko Eco eco-friendly renovation method（Japanese Only）* Click here for the news release about our prize at the 11th Eco Products Awards（Japanese Only）* Click here for the news release about our prize at the 9th Eco Products Awards（Japanese Only）

Highest Financing Rating Obtained, Resulting from Environmental
Ratings System

In January 2012, in recognition of our efforts to reduce CO2 emissions,generate renewable energy through mega-solar plants and other initiatives,
recover resources from housing renovation waste materials and actively
promote biodiversity, the Development Bank of Japan (DBJ) granted LIXILGroup the highest environmental rating for our “particularly progressive
environmental initiatives” and provides financing based on this rating.
* See the following news release on the Environmental Ratings System for more details.（Japanese Only）
74

LIXIL Corporation’s Eco-First Commitment.
Under the Eco-First program, companies make a commitment to the Minister of the Environment to promoteindependent environmental conservation initiatives in relation to global warming, waste and recycling etc., withthe aim of promoting initiatives by industry-leading companies in the field of environmental conservation.
* See the Eco-First System section on the Ministry of the Environment website for more details（Japanese Only）

LIXIL Corporation has committed itself to actively promoting detailed initiatives and activities with clear targets
based on the priority themes for our environmental strategy set out in the LIXIL Environmental Vision, andaccordingly been accredited by the Ministry of the Environment as an “Eco-First Company”.

Minister of the Environment, Hiroyuki Nagahama (left) with Representative Executive Officer & Vice
President of Lixil Corporation and Lixil Japan Company President, Toshio Ohtake at the Eco-First Accreditation
Ceremony held on October 29, 2012

LIXIL Corporation’s Eco-First commitment
LIXIL Corporation and its subsidiaries shall implement the following activities with the goals of minimizing theconsumption of energy through our business activities, aspiring to net zero balance energy use in the residential
and commercial sector, and contributing to future improvements in people’s comfort and lifestyles.

1. As we offer products and service that reflect and optimize the full bounty of nature, we will
also consider future ways and standards of living, together with our customers.

・By developing and selling highly effective heat-proof sashes and doors and products with enhanced powersaving and hot water saving functions, we will contribute to reductions in CO2 emissions in the residential andcommercial sector, including homes and office buildings, etc. In addition to maximizing energy use reductions inJapan through LIXIL products, we shall promote reductions in CO2 emissions and reduce emissions by 50% by
FY2015 compared with FY2010.

2. We will conduct regular business activities in a manner that will reduce carbon emissions,enhance recycling of resources, and promote harmonious coexistence with nature.

・In order to promote a low-carbon society, we will work to minimize energy consumption in all business activities
from procurement through to production and disposal and by FY2020 we will reduce CO2 emissions at ourJapanese offices by 60% in comparison to FY1990.
・In order to promote the recycling of resources, we will promote the commercialization of advanced sorting
technology for metal resources, such as aluminum found in disposed products, through participation inindustry-academic-government joint developments and promote technological innovations in the productmanufacturing process. We will increase the ratio of recycled raw materials used in our raw materials overall, an
area where we are already an industry leader. As part of our responsibility as a large-scale manufacturer, in
FY2012 we launched an Eco-Center in the Tohoku Region for collecting housing renovation waste to recover
resources to complement the centers already opened in the Chubu and Kanto regions, and by FY2015 we willhandle an annual 5,000m3 of waste materials in the Tohoku Region.
・In order to promote harmonious coexistence with nature, by FY2015 we will increase to 80% the ratio of
procured wood materials accounted for by processed materials made using raw wood materials accredited by75

Japanese and overseas third party accreditation organizations, materials produced through afforestation,
Japanese wood materials and wood offcuts and waste. We have contributed to reductions in forest clearing bypromoting the effective use of wood resources through the commercialization of advanced technologies forwood materials, including “bagasse board” (made using the fibrous remains of sugarcane after it has beencrushed), which we have made compatible with stringent quality specifications and spread from Japan to otherparts of Asia, “reinforced wood”, which is made through the combined molding of wood flour with resin, andwood material modifications with aim of promoting use of underutilized materials and fast-growing trees, etc.

3. As a member of local communities and society, we will work to further mutual understanding
with our stakeholders and collaborate with them to take actions in our own, original way.

・We will promote “Learning from Water” activities with the aim of teaching children both in Japan and overseas
the import role of water in our lives. In Japan, our employees will travel to elementary schools to give lessons
using original teaching materials in various regions, and overseas we will work in partnership with local NPOs tosupport education while communicating with local children. By 2015, we will add one new overseas bases toexpand the scope of these activities.
・In order to conserve biodiversity and forests in the regions where our production bases are located, we will
promote “Caring for Forests” and “Bringing Forests to Factories” projects in which we carry out environmental
projects and the thinning and planting of forests in partnership with our employees, their family members, local
residents, local government and NPOs. By FY2015 we will add one new base to expand the scope of these
activities.
LIXIL Corporation will check the progress of the above initiatives and make regular public announcements of theresults, in addition to reporting to the Ministry of the Environment.

The Eco-first Promotion Council was established as an organization on December 9, 2009
with the aim of encouraging “Eco-First Companies” (officially accredited by the Ministry of
the Environment as leaders in the field of environmental conservation) to make steadyprogress in the implementation of individual Eco-First Commitments made to the Ministerof the Environment and to work in strong partnerships with other Eco-First Companies inorder to develop and strengthen leading and unique environmental conservation activities.
The organization was established a little over a year after the creation of the “Eco-First System” with the aim ofpromoting the development of the system by encouraging ongoing environmental initiatives by Eco-First
Companies and strong partnerships both with the environmental authorities and between Eco-First Companies.
* See The Eco-first Promotion Council website（Japanese Only）

76

Medium-term environmental Targets
To achieve the mission that we set forth in our Environmental Vision, we switched from reducing carbon dioxide
emissions to reducing our energy consumption itself, setting ourselves the goal of reducing energy consumption
across the entire life cycle of our products. In other words, we will strive to reduce not only the energy consumed
directly by our business activities, but also the energy consumed indirectly across the entire spectrum of
influence of our products, from procurement of raw materials for manufacturing to the use and eventual
disposal of our products by our customers. Leading up to 2015, we have set ourselves the following three
medium-term environmental targets.

Product and Service Life Cycle

77

Target 1
To achieve zero energy balance in the residential and commercial sector, we have set
ourselves the target of boosting our contribution to energy consumption reduction in
Japan’s homes, offices and commercial buildings for fiscal 2015 to double the level offiscal 2010.

Energy consumption in the residential and commercial sector in Japan has risen steadily, reaching 4.837 billion GJ
in 2009. Poorly insulated houses with older fittings and equipment make up the majority of Japan’s estimated 58
million existing houses, and are thought to account for most of the energy consumed by the residential sector.
Based on our assumption that the average energy efficiency of such houses stands at the 1990 level, we havedefined the amount of energy that could be saved by replacing the products fitted in 1990 with the latest of our
products as “energy reduction contribution,” and use this as a measure of our efforts to reduce energy in thehousehold sector. We aim to boost our energy reduction contribution for fiscal 2015 to double the fiscal 2010
level through further raising product performance and broader use of those products in the market. Our energy
reduction contribution in fiscal 2014 was 4.84 million GJ, a 129% increase against fiscal 2010.
Moreover, since energy generation/saving products and water-conserving products continue to reduce energy
consumption until they are replaced or decommissioned, we estimate that our cumulative energy reduction
contribution for the years from fiscal 2010 to fiscal 2015 will eventually reach 30 million GJ. By applying ourtechnologies to our growing overseas products business, we will also help to reduce energy consumption on a
global scale.

Energy Consumption and Our Energy Reduction Contribution
in Japan’s Resudential and Commercial Sector[The LIXIL Group’s Energy Reduction Contribution Calculation Method]

Energy reduction contribution = (annual electricity/gas/water consumption reduction derived from all energy
generation/saving products and water saving products*1 sold in Japan each year compared with 1990 products) ×(energy conversion coefficient*2) × (number of each product type sold)〈For Windows〉

Window product energy reduction contribution = (reduction in annual HVAC electricity consumption throughimproved window insulation compared with 1990 windows*3) × (energy conversion coefficient) × (number of windows
sold annually (per home))*1 Applicable products: Detached home sashes, entrance doors (excluding those for prefabs),
apartment/condominium sashes, house insulation panels, solar power systems, kitchen units, bathroom units,
washstands, toilets, plumbing fixtures, humidity control building materials*2 Electricity, gas: heat value per unit per energy source as specified in Law Concerning the Rational Use of Energy
Water: conversion coefficient calculated from Japan Environmental Management Association for Industry (JEMAI)
Carbon Footprint Database Ver.1*3 Annual heating and cooling load for a standard home converted into electricity using a home heat load calculation
program, called SMASH (Simplified Analysis System for Housing Air Conditioning Energy) for Windows, developed by
Institute for Building Environment and Energy Conservation(IBEC)

78

Target 2
We will reduce our total domestic and overseas energy consumption related to
procurement, manufacture/sales, and disposal by 10% from the fiscal 2010 level by fiscal
2015.

We will implement policies to manage the energy consumed at each product life cycle stage, including improving
the ratio of recycled raw materials at the procurement stage, improving production efficiency and making greateruse of renewable energy at the production and sales stages, improving the efficiency of the transportation stage
through the use of returnable packaging and compact packaging and improving product recycling at the disposal
stage. We aim to reduce our total energy consumption by 10% from the fiscal 2010 level by fiscal 2015. Our totalenergy consumption for fiscal 2014 was 55.8 million GJ, a 10.3% reduction from fiscal 2010.

Total Domestic and Overseas Electricity Consumption[Total Energy Consumption Calculation Method]
・Energy consumption (procurement)*1 = (amount of purchased raw materials) × (energy conversion coefficient*2)+(cost of purchasing parts/materials) × (energy conversion coefficient*3)
・Energy consumption (manufacture/sales)*4 = (electricity/fuel consumption, water intake) × (energy conversion
coefficient*5)
・Energy consumption (disposal) = (landfilled/incinerated quantity when products are disposed) × (energy conversion
coefficient*2)
・ Energy consumption (transport) = (transported weight) × (transportation distance) × (energy conversion
coefficient*6)*1 .Energy consumption in procuring raw materials includes energy consumed in mining, sorting, blending, refining
and other raw material processing including transport to Japan. Energy consumption in manufacturing parts/materials
includes energy consumed in mining, refining and other raw material processing including transport to Japan andassembly/processing in Japan*2 .Conversion coefficient calculated from Japan Environmental Management Association for Industry (JEMAI) Carbon
Footprint Database Ver.1*3 .Architectural Institute of Japan (AIJ) LCA Database (1995 Input-Output Table)*4. Manufacture/sales energy consumption includes energy calculated by multiplying quantity of waste products
processed during manufacture/sales by energy conversion coefficient*2*5. Electricity, fuel: heat value per unit per energy source as specified in Law Concerning the Rational Use of Energy
Water: conversion coefficient calculated from Japan Environmental Management Association for Industry (JEMAI)
Carbon Footprint Database Ver.1*6 .Conversion coefficient calculated from unit fuel consumption and unit calorific value using improved tons x
distance method as specified in the Law Concerning the Rational Use of Energy (Measures Pertaining to Consigners)[Scope of Data Coverage]

LIXIL Group operating companies in Japan and overseas, together with their consolidated subsidiaries andnon-consolidated subsidiaries under the management of operating companies, as of April 201379

Target 3
We will reduce the CO 2 emissions of our Japanese sites to 50% of their fiscal 1990 levelby the end of fiscal 2015.

Reducing our energy consumption to achieve Target 2 will also help to reduce the direct CO2 emissions from ourbusiness activities in Japan. Our total CO2 emissions from Japanese sites in fiscal 2014 amounted to 384,000
t-CO2, a reduction of 52% from fiscal 1990 emissions.

Total CO 2 Emissions from the LIXIL Group’s Japanese Sites

Note:Cogeneration credit compensation amounts have been excluded
since FY2014. As a result, past data has been adjusted.

[CO2 Conversion Coefficients Used to Convert CO2 Emissions］
・Purchased electricity: Japan 0.378, China 0.764, Korea 0.489, Thailand 0.567, Vietnam 0.427, and Indonesia
0.653(kg-CO2/kWh),3・Natural gas: 2.108 (kg-CO2/m ),・LPG: 3.002 (kg-CO2/kg),
・Kerosene: 2.492 (kg-CO2/L) ,・Fuel oil: 2.71 (kg-CO2/L),
・Diesel：2.624 (kg-CO2/L),
・Gasoline: 2.322 (kg-CO2/L),
・Purchased steam: 0.06 (kg-CO2/MJ)
Sources ：Guidelines for Calculating Greenhouse Gas Emissions for Businesses (Ministry of the Environment), 2005,
GHG-emissions-from-purchased-electricity (Version-4_4_Aug-2012)*The LIXIL Group Corporation has received third-party assurance from the Deloitte Tohmatsu Evaluation andCertification Organization for the data from FY2013 and FY2014.

80

Material Balance
Scope of data collection
In principle, with the exclusion of some consolidated subsidiaries in consideration of their business size andcontent, the scope of the organization for which environmental impact data is reported comprises all operatingcompanies and their consolidated subsidiaries as of April 2014. Among non-consolidated companies, only a few
of the manufacturing and logistics companies have been included in the scope of reporting (LIXIL Logistics
Corporation and LIXIL BUILDING MATERIALS MANUFACTURING (SHANGHAI) CORPORATION and Wuxi Moritec
Special Door Co., Ltd.); when their buildings are either owned or managed by operating companies of the LIXILGroup, non-consolidated subsidiaries are considered to be under management by the LIXIL Group. Please notethat the scope differs from the group of companies that are consolidated for financial reporting purposes. The
calculation method used for energy-savings contribution by product is given on page 12. Items outside the scopestated above are reported on in separate notes on an individual basis.

■Affiliates of the LIXIL Group
LIXIL Corporation, LIXIL VIVA CORPORATION, LIXIL Housing Research Institute, Ltd., LIXIL REALTY, Corp.,
CLASSIS Corporation, JIO Corporation, LIXIL Group Finance Corporation■LIXIL Corporation's Major subsidiaries
・Major subsidiaries and affiliates in Japan
Kawashima Selkon Textiles Co., Ltd., HIVIC CO., LTD., SUN WAVE CORPORATION, LIXIL Total Hanbai Corporation,
Asahi Tostem Exterior Building Materials Co., Ltd., G TERIOR Corporation, LIXIL SUZUKI SHUTTER CORPORATION,
JAPAN HOME SHIELD CORPORATION, LIXIL Toyo Sash Shoji Co., Ltd., Dinaone Corporation, TM.S Corporation,
Kuwata Co., Ltd., Oita Tostem Co., Ltd., Nishi Kyushu Tostem Co., Ltd., Tostem Management Systems Co., Ltd.,LIXIL Total Service Corporation, LIXIL ENERGY Co., Ltd., LIXIL RENEWAL Corporation,
LIXIL INFORMATION SYSTEMS CORPORATION
・Non-consolidated subsidiaries in Japan：LIXIL Logistics Corporation
・Major subsidiaries and affiliates outside JapanTOSTEM THAI Co., Ltd., LIXIL Manufacturing (Dalian) Corporation,
LIXIL AS Sanitary Manufacturing (Shanghai) Co., Ltd, LIXIL AS Sanitary Manufacturing (Tianjin) Co., Ltd.,
Jiangmen LIXIL AS Sanitary Fitting Manufacturing Co., Ltd, HUA MEI SANITARY WARE Co., Ltd.,LIXIL Vietnam Corporation, LIXIL-Haier Housing Products (Qingdao) Co., Ltd.,LIXIL BUILDING MATERIALS MANUFACTURING (SUZHOU) CORPORATION,
LIXIL Sanitary Fitting Manufacturing (Suzhou) Corporation,
Four consolidated companies and two non-consolidated company outside Japan
Note: The data for Permasteelisa Group, American Standard Brands and GROHE Group S.à r.l. are not included in
the data for fiscal 2014.

【Procurement and Logistics Data】■Procurement:
The scope of data calculation includes all bases and companies manufacturing products under theenvironmental management systems of the LIXIL Group. All raw materials, parts, and packaging materials used in
the products are included in the calculations. However, manufacturing facilities and office consumables are
excluded. The data covers 43 bases in Japan and 16 companies overseas.
■Logistics
The scope of data calculation covers 17 bases in Japan of LIXIL Logistics Corporation designated by the Law
Concerning the Rational Use of Energy (Specified Shipper).

81

Material balance (INPUT)■Procurement
The amount used

Aluminum raw materials
Other metals
Plastics raw materials
Rawmaterials Wood raw materials
Ceramics raw materials
Others
Metal parts
Plastic parts
Wood parts
Parts/
materials Ceramic parts
Packaging materials
OthersTotal

FY 2013
148,882 t
86,567 t
39,620 t
268,735 t
531,006 t
153 t
117,407 t
127,658 t
99,999 t
262,207 t
17,892 t
253,272 t
1,953,398

Energy consumption

38,046

FY 2014
164,461 t
80,417 t
37,090 t
238,259 t
379,384 t
168 t
104,018 t
134,744 t
86,936 t
249,026 t
17,298 t
147,395 tt

1,639,198

thousand GJ

38,108t
thousand GJ

Quantity of
reduction－62
thousand GJ

Compared withprevious year
0.2 ％increase

Quantity of
reduction
1,159
thousand GJ

Compared withprevious year
6.9 %decrease

Notes : 1. The weight of parts / materials is calculated based on purchase costs.
2. Data covers the manufacturing bases of LIXIL Corporation and its subsidiaries overseas, Kawashima Selkon Textiles Co., Ltd., andHIVIC CO., LTD.
3. We have corrected some of the number of 2013.

■Manufacture/sales
The amount used

Electricity
City gas
LNG
LPG
Kerosene
Fuel oil
DieselGasoline
Steam
Photovoltaic power generation *FY 2013969,360 thousand kWh
100,084 thousand ㎥
16,645 t
14,758 t
3,766 kL
11,928 kL
2,528 kL
9,655 kL
167,590 GJ
26 thousand kWh

925,966
93,38814,931
13,364
3,232
6,548
2,925
8,773
142,67324

FY 2014thousand kWhthousand ㎥
t
t
kL
kL
kL
kL
GJ
thousand kWh

Energy consumption

16,80815,649thousand GJ

thousand GJ* Data only covers facilities within the premises of our factories (in-house use only).

Water intake
Potable waterIndustrial water
Ground water

FY 2013
1,552 thousand ㎥
6,484 thousand ㎥
5,040 thousand ㎥
13,076 thousand ㎥

FY 2014
1,547 thousand ㎥
4,808 thousand ㎥
4,233 thousand ㎥
10,588 thousand ㎥

Quantity ofCompared with
reduction
previous year
2.9
15.3 %
Energy consumption
19.0 thousand GJ
16.1 thousand GJ
thousand GJ
decrease
Note : Data excludes a portion of LIXIL Corporation’s head office, branches, and sales-related consolidated companies,
LIXIL Housing Institute, Ltd., HIVIC CO., LTD., JIO Corporation, and CLASSIS Corporation.
Quantity ofCompared with
Volume handled
FY 2013
FY 2014
reduction
previous year742
11.2 %
Chemicals
6,650 t5,908 ttdecrease
Notes : 1. Data covers LIXIL Corporation, Asahi Tostem Exterior Building Materials Co., Ltd.,LIXIL SUZUKI SHUTTER CORPORATION, and LIXIL VIVA CORPORATION.
2. We have corrected the number of 2013.
Total■Logistics
The amount used
Fuel (Crude oil equivalent)

FY 201352,631 kL

FY 201446,886 kL

Quantity of
reduction

Compared withprevious year

Energy consumption

2,040

1,817

223
thousand GJ

10.9 %
Decreasethousand GJ

Note : Data covers LIXIL Logistics Corporation.

82

thousand GJ

Material balance (OUTPUT)■Procurement (Scope 3)CO2 emissions
Rawmaterials

Parts/
materials

FY 2013

FY 2014

Aluminum raw materials
Other metals
Plastics raw materials
Wood raw materials
Ceramics raw materials
Others
Metal parts
Plastic parts
Wood parts
Ceramic parts
Packaging materials
Others

788
162
85
215
97
1.5
501
302
82
47
40
329

thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2

951
153
84
195
76
1.7
495
303
72
48
37
243

thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2

Total

2,649

thousand t-CO2

2,657

thousand t-CO2

Quantity of
reduction

Compared withprevious year

－8
thousand t-CO2

0.3 %increase

Quantity of
reduction
61
thousand t-CO2

Compared withprevious year
7.5 %decrease

Quantity of
reduction
3,048
tCompared withprevious year
1.9 %decrease

Quantity of
reduction
1,122
Wastewater
10,851
thousand ㎥
9,729 thousand ㎥
thousand ㎥
Note : Data excludes a portion of LIXIL Corporation’s head office, branches, and sales-related consolidated companies,
LIXIL Housing Institute, Ltd., HIVIC CO., LTD., JIO Corporation, and CLASSIS Corporation.
Quantity ofAmount of chemicals moved
FY 2013
FY 2014
reduction

Compared withprevious year
10.3 %
decrease

Notes : 1. Data covers the manufacturing bases of LIXIL Corporation and its subsidiaries overseas,
Kawashima Selkon Textiles Co.,Ltd., and HIVIC CO., LTD.
2. We have corrected some of the number of 2013.

■Manufacture/sales (Scope 1 and 2)
CO2 emissions

FY 2013

FY 2014

Electricity
City gas
LNG
LPG
Kerosene
Fuel oil
DieselGasoline

439
211
45
44
9
32
7
22

thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2

420
197
40
40
8
18
8
20

thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2

Steam

10

thousand t-CO2

9thousand t-CO2

820

thousand t-CO2

759

thousand t-CO2

Total

Waste products emissions
Recycled
Land filled

FY 2013
111,566
49,981

FY 2014tt

Total
161,548 t
Notes : 1. Data excludes JIO Corporation, and CLASSIS Corporation.
2. We have corrected the number of 2013.

Wastewater volume

103,946
54,553tt

158,499t

FY 2013

FY 2014

Chemicals
340 t
321 t
Notes : 1. Data covers LIXIL Corporation, Asahi Tostem Exterior Building Materials Co., Ltd.,LIXIL SUZUKI SHUTTER CORPORATION, and LIXIL VIVA CORPORATION.
2. We have corrected the number of 2013.

19t

Compared withprevious year
5.6 %decrease■Logistics (Scope 3)CO2 emissions
Fuel (Crude oil equivalent)

FY 2013140

FY 2014thousand t-CO2

Note : Data covers LIXIL Logistics Corporation.

83

125

thousand t-CO2

Quantity of
reduction
15
thousand t-CO2

Compared withprevious year
10.9 %
decrease［Total Energy Consumption Calculation Method］
Energy consumption (procurement)*1 = (Amount of purchased raw materials)×(Energy conversion coefficient*2)+(Costof purchasing parts/materials)×(Energy conversion coefficient*3)
Energy consumption (manufacture/sales)*4 = (Electricity/Fuel consumption, water intake)×(Energy conversion
coefficient*5)
Energy consumption (disposal)=(Land filled/incinerated quantity when products are disposed)×(Energy conversion
coefficient*2)
Energy consumption (transport)=(Transported weight)×(Transportation distance)×(Energy conversion coefficient*6)*1: Energy consumption in procuring raw materials includes energy consumed in mining, sorting, blending, refining
and other raw material processing including transport to Japan. Energy consumption in manufacturing parts/materials
includes energy consumed in mining, refining and other raw material processing including transport to Japan andassembly/processing in Japan.
*2: Conversion coefficient calculated from Japan Environmental Management Association for Industry (JEMAI) Carbon
Footprint Database Ver.1*3: Architectural Institute of Japan (AIJ) LCA Database (2005 Input-Output Table)*4: Manufacture/sales energy consumption includes energy calculated by multiplying quantity of waste products
processed during manufacture/sales by energy conversion coefficient*2*5: Electricity, fuel: heat value per unit per energy source as specified in the Law Concerning the Rational Use ofEnergy, 2010
Water: conversion coefficient calculated from Japan Environmental Management Association for Industry (JEMAI)
Carbon Footprint Database Version 1*6: Conversion coefficient calculated from unit fuel consumption and unit calorific value using improved tons ×
distance method as specified in the Law Concerning the Rational Use of Energy (Measures Pertaining to Consigners)［CO2 Conversion Coefficients Used to Convert CO2 Emissions］

Purchased electricity: Japan 0.378, China 0.764, Korea 0.489, Thailand 0.567, Vietnam 0.427, and Indonesia
0.653(kg-CO2/kWh)3
Natural gas: 2.108 (kg-CO2/m ), LPG: 3.002 (kg-CO2/kg), Kerosene: 2.492 (kg-CO2/L) , Fuel oil: 2.71 (kg-CO2/L), Diesel：
2.624 (kg-CO2/L)
Gasoline: 2.322 (kg-CO2/L), Purchased steam: 0.06 (kg-CO2/MJ)
Sources: Guidelines for Calculating Greenhouse Gas Emissions for Businesses (Ministry of the Environment), 2005,
GHG-emissions-from-purchased-electricity (Version-4_4_Aug-2012)84

Products and services
Eco-friendly design
Design for environment initiatives

Design for environment (DfE) refers to design that has been conducted while giving consideration to theenvironment. This form of manufacturing aims to reduce the environmental impact as much as possible while
giving consideration to the life of the product.
By conducting unique assessments from the product planning phase, LIXIL complies with environmental laws andregulation as it works to develop eco-friendly products with even better environmental performance.

In product development, LIXIL conducts unique design for environment (DfE) assessments based on the stance ofDfE. In addition to compliance with environmentally-related laws and regulations, LIXIL assesses products at thethree stages of make, use, and return and aims to minimize the impact of products on the environment. Productswith high environmental performance are designated as LIXIL eco-products, and their characteristics areemphasized to customers through the Eco Mark that is displayed in the catalog and on the official homepage.
In product planning, LIXIL sets environmental targets for products being developed, and in design andprototyping, the level of target achievement is assessed. In final confirmation, LIXIL conducts final confirmationof the environmental information being emphasized.
The assessment details are periodically reviewed in an aim for even higher level design for environment.
* Please see here for LIXIL eco-products

85

Eco MarkThe Eco Mark is displayed on products that meet the public standards and LIXIL standards in design forenvironment assessments.

Public standards conformity marks
These marks are displayed on products that meet legal standards, the standards of business organizations, or
third-party certification.

Major public standard marks
Products that meet the designated procurement item standards designated by the Act on
Promoting Green Purchasing.
Indicates the energy-saving performance based on the top runner standards of the Energy
Saving Act. A green mark indicates products that have attained at least 100% of energy-saving
standards, while an orange mark is displayed for products with less than 100% attainment
together with the energy-saving standard achievement rate and annual power consumption.
Products that meet the highest standards for formaldehyde dissipation rate designated in the
Building Standards Act (countermeasures to the sick-house syndrome).
Products that meet the dissipation rate standards from the 4 VOC (toluene, xylene,
ethylbenzene, and styrene) designated by the Committee for Standardization of Emission Rateof VOC From Building Products.
Products that meet the Housing Component VOC Display Guidelines formulated in compliancewith the dissipation rate standards from the 4 VOC (toluene, xylene, ethylbenzene, and styrene)
designated by the Committee for Standardization of Emission Rate of VOC From Building
Products.
Products that meet the humidity control building materials standards designated by the Japan
Construction Material & Housing Equipment Industries Federation.
Products for which quality control information was published in the guidelines of the Society ofInternational Sustaining Growth for Antimicrobial Articles based on results assessed inaccordance with ISO22196 defined by the International Standards Organization.
Products that meet standards that contribute to environmental conservation through means
such as reducing the impact of everyday life on the environmental as designated by the Japan
Environment Association.
Products that meet the definition of hot water-saving taps as defined in the housing andbuilding energy-saving standards of the Energy Saving Act.
Products that meet the definition of hot water-saving taps as defined in the housing andbusiness builder judgment standards of the Energy Saving Act.

LIXIL standards conformity markThis mark is displayed on products that meet assessment standards for the reduction of environmental impact at
the three stages of make, use, and return through the life of products designated by LIXIL.

Make
Products that meet usage amount standards for recycled raw materials designated by LIXIL.
Products that meet usage amount standards for environmentally-friendly wood such as certified woodand plantation forest wood designated by LIXIL.

86

Products that meet standards for raw material reductions through means such as revised
manufacturing methods and raw materials, and weight reduction as designated by LIXIL.
Products that meet usage amount standards for energy saving in construction through means such asrevised construction methods and reductions in construction materials as designated by LIXIL.
Products that meet waste lumber reduction standards through means such as revised construction
methods and improvements in packaging as designated by LIXIL.

Use
Products that meet the concentration standards for dissipation of harmful VOC (volatile organic
chemicals) such as formaldehyde as designated by LIXIL.
Products that meet the energy-saving standards at the time of use as designated by LIXIL.
Products that meet the water-saving standards at the time of use as designated by LIXIL.
Products that meet the heat-resistance standards designated by LIXIL through means such as improving
the thermal insulation of housing and contributing to a reduction in energy used for heating or cooling.
Products that meet thermal barrier standards including heat ray absorption and heat ray barriers as
designated by LIXIL.
Products that meet solar shading standards including reducing the indoor solar penetration rate
through sunlight avoidance as designated by LIXIL.
Products that meet lighting standards including being able to adjust lighting in the winter and shade in
the summer as designated by LIXIL.
Products that meet ventilation standards including enabling efficient ventilation while giving
consideration to trespassing and privacy.
Products that meet zero energy standards for features and materials that improve comfort andconvenience without using energy as designated by LIXIL.
Products that meet energy creation standards for features and materials that create energy every timethey are used as designated by LIXIL.
Products that meet antifouling standards including the enabling of long-term use in clean conditions
while reducing the amount of cleaning water and cleanser used as designated by LIXIL.

ReturnProducts that meet recycling standards such as facilitating disassembly and separation in order torecycle resources as designated by LIXIL.
Products that meet reusable standards for reusing parts and materials to eliminate resource waste as
designated by LIXIL.

Laws and systems
Refer to the link below for laws and systems concerning products and the environment.
* Please see here for information on public incentives（Japanese Only）* Please see here for data related to laws and systems (LIXIL business information)（Japanese Only）

87

Eco-product database
List of supported products

Lists information regarding compliance to public standards and LIXIL standards for eco-products that meet designfor environment standards.
* Please see here for information on the Eco Mark*The following Eco-product databases and information are all only Japanese.

Windows and shutters Thermos X

Entrance doors, sliding doors Grandel

Thermal insulation performance equivalent toconventional resin has been achieved with a hybrid
structure of conventional resin.

The flow of heat from doors is controlled withexcellent thermal insulation performance (1.5specifications) that supports even cold areas.

[Eco-standards compliance information]･Windows and shutters･Building, store design, curtain walls[Eco-standards compliance information]･Entrance doors, sliding doors

Interiors

Exteriors Carport Archifield

Woody line

Timber materials in compliance with F☆☆☆☆ and4VOC standards are used.

Possible to select the roofing material depending on
the purpose, such as heat ray absorption or blocking or
dirt resistance.

[Eco-standards compliance information]･Interior construction materials[Eco-standards compliance information]･Exteriors

Tiles Ecocarat Granas Visto

KitchenBreathes in and out the air in the house to keep a
comfortable humidity level whatever the season andreduces unpleasant odors and harmful substances.

This tap that features available water stopping,small-flow water discharge, and priority water
discharge enables water consumption reduction
without you even being aware of it.

[Eco-standards compliance information][Eco-effect]

・Tiles・TilesKitchen Richelle SI[Eco-standards compliance information]･System kitchen[Eco-effect]･System kitchen

88

Bathroom Unit Bathroom Spage

This eco-shower with a hand switch achieves
significant water savings through comfortable low
water flow.
[Eco-standards compliance information]
・Unit bathroom[Eco-effect] ・Unit bathroom

Wash and dressing room

Wash and Dressing Room Lumisis

The mirror cabinet is equipped with an anti-fogging
coat that eliminated fogging without using any energy.

Toilet Shower-toilet single unit toilet Satis G Type

[Eco-standards compliance information]
・Wash and dressing room
[Eco-effect] ・Wash and dressing room
Water tap hardware Sink Water Tap Cubia

This toilet achieves significant water-saving, using 4 L
of water for large flushes and 3.3 L of water for small
flushes, and is compliant with the Act on Promoting
Green Purchasing.

Hot water and standard water savings are achieved
through an eco-handle that prevents wasteful hot
water supply and water-saving foam for comfortablewashing.

[Eco-standards compliance information]･Residential toilets ･Public toilets･Toilet hand washing ･Accessories[Eco-effect] ･Residential toilets ･Public toilets[Eco-standards compliance information]･Water tap hardware[Eco-effect] ･Water tap hardware

High-performance residential construction
methods

Specified facility equipment Ostomate Pack

Thermal Insulation Modification Method Coco Eco

Makes it possible to improve insulation for somerooms by simply attaching internal windows andinsulation panels without having to destroy existing
windows, walls, or floors.
[Eco-standards compliance information]･High-performance residential construction methods

The sink is SIAA bacteria-resistant in compliance withinternational standards. Bacteria growth is controlledwith the power of silver ion.
[Eco-standards compliance information]･Specified facility equipment

89Eco-effect calculation basis
Trial calculation conditions* Trial calculation conditions for the eco-effect of products(PDF)

Water, electricity, and gas charges
Calculated based on representative information for Japan according to research from July 2014.
Could differ depending on factors such as region, time differences, and conditions.
Water
supply andsewagechargeElectricity
charges

Item
For homes

Town gaschargeFor public use
For homes
For public use
For homes
For public use

LP gas charge
Kerosene charge

Charge unit
265 yen per m3(including tax)
700 yen per m3(including tax)
27 yen per kWh(including tax)
13 yen per kWh(including tax)
181 yen per m3(including tax)
121 yen per m3(including tax)
665 yen per m3(including tax)
112 per L(including tax)

Source (data)
Bureau of Waterworks Tokyo
Metropolitan Government
Bureau of Waterworks Tokyo
Metropolitan Government
New power charge guideline
unit priceAgency for Natural
Resources and Energy(special high voltage)
Tokyo Gas

Remarks
Pipe diameter of 20mm, 30 m3
used per month
Pipe diameter of 50mm, 300
m3 used per monthHome Electric Appliances Fair
Trade Conference
Average for January to March
2011

Tokyo Gas

Commercial seasonal contract
charges
Retailer ⇒ retail price for final
consumerNational average kerosene(delivery) retail priceJapan LP Gas Association
Oil Information Center

32 m3 used per month*Consumption tax rate of 8%

CO2 emission factors
Item
Electricity

EmissionUnit
factors0.43 kgCO2/kWh

Town gas
LP gas2.23 kgCO2/m3
5.98 kgCO2/m3

Lamp oil
Water

2.49 kgCO2/L
0.23 kgCO2/m3

SourceMinistry of Economy, Trade and Industry, average emission
factor for all power sources
Act on Promotion of Global Warming Countermeasures
Act on Promotion of Global Warming Countermeasures, JapanLP Gas Association
Act on Promotion of Global Warming Countermeasures
Estimates based on industry related tables (tap water only)

Product CO2 reduction effect (Example of mark display)
Displays the annual CO2 reductions for the latest LIXIL products that achieve reductions in
CO2 during use due to functions that reduce the environmental footprint through means
such as energy-saving and water-saving in comparison to products that were standard
around 1990.

90

Proposals to our customers
Launch of New “Living Solutions” Service
We have launched a new service (Tsufu-Sofu Design Support Service*2) through which we use comfort index
PMV*1 to make optimum window size, type and layout proposals to builders across Japan based on the design
blueprints and locations of the planned buildings with the aim of making summertime more energy-efficient andcomfortable. We regard wind as part of nature’s bounty and make proposals for more comfortable living in a waythat makes full use of wind in order to achieve energy savings. The energy-saving effects and innovative
initiatives offered by this service have been recognized outside the company, and at the 9th Eco Products Awards(hosted by the Eco-Products Awards Steering Committee) we were awarded the Minister's Prize, which is one of
the top prizes (Eco-Services Category).
* See “Tsufu-Sofu Design Support Service” for more details（Japanese only）*1 PMV (Predicted Mean Vote): a well-known index for measuring cool temperature sensation in order to assess
comfort in spaces. The level of comfort (PMV value) can be identified through a combination of six elements
related to the temperature environment (air temperature, mean radiation temperature, wind speed, relative
humidity, volume of clothing worn and metabolicrate).
*2 Sofu stands for “wind generation”; temperature differences in the air are utilized to generate the natural
movement of air even when there is no air current.

Development of Energy Savings and Water Savings
Simulation Tool
We have released a web application containing an energy-saving andwater-saving simulator which allows people to make simple
simulations of the savings in heating and lighting costs and CO2
reductions they can achieve by upgrading their windows, doors andplumbing to the latest models. By making this available on our website,
we have made the facility available to all customers. We make use of
the application on tablet computers in our showrooms during sales
discussions and proposals with our customers.
* See here for more details on our energy-saving and water-saving simulator（Japanese only）

We propose the stance of “passive first” as a way to get ahead in energy-efficient housing.
We have issued two types of eco-housing proposal pamphlets, namely “Wisely Using Nature, Passive First” forprofessional users including builders and “Getting Ahead Living Proposal Achievable With No Waste” for general
constructors. These two pamphlets are based on the new eco-housing concept of passive first proposed by LIXIL
that encourages people to achieve comfortable living by wisely using nature, and support the housing andbuilding energy-saving standards established in October 2013.

▲PASSIVE FIRST▲Getting Ahead Living Proposal* Please see here for the Passive First news release（Japanese only）
91

Business Activities
Reducing global warming
We strive to carry out our daily business activities in a way that reduces carbon emissions, recycles resources,
and protects the environment. The entire company works hard to make improvements, including reductions in
CO2 emissions, in every process from procurement through to manufacturing and disposal.
*See here for CO2 reduction targets

Generating Solar Power at Our Factories
We have teamed up with local authorities (Nagasu Town in Kumamoto
Prefecture and Bando City in Ibaraki Prefecture) to build solar power
generation facilities on idle land at our Ariake and Iwai factories. Eachsite is equipped with 500 kW power conditioners that can generate
3.75 MW. Generated electricity has been sold to the local power utility
since March 2013. In addition, our Sukagawa Factory (located in
Sukagawa City in Fukushima Prefecture) has constructed the Tohoku
region’s first ever solar power generation facility called LIXIL Sukagawa SOLAR POWER next to the factory and in
May 2014 the facility began full-scale operations. The facility has a maximum generating capacity of 6.35MW andestimates suggest the facility will generate upwards of 7.8MW of electricity every year (enough to power about
1,400 homes for one year). All of the power generated by this facility will be sold to Tohoku Electric Power Co.,Inc.
* Please see here for the news release about our solar power generation facilities（Japanese only）

Utilizing Energy More Effectively
LIXIL’s Dalian Factory is working to utilize surplus energy more effectively. Its initiatives include using waste woodfrom the factory to burn as fuels in its boilers, with excess steam used to heat water that is used not only within
the factory but also sold to local vendors for use in production processes, swimming pools and showers.
Additionally, powdered wood waste is made into granulated fuel, which reduces the amount of waste the factory
generates. The results of similar environmental activities carried out in Japan and LIXIL’s factories overseas(energy conservation and waste reduction) are reported to senior management of the Production Division during
the Eco Factory Results Presentation held internally. Results are also used to improve the quality of futureenvironmental activities and rolled out at other sites within the company.

Eco-friendly Stores and Showrooms
We are fitting new showrooms, including our Kanazawa showroom that opened in November 2011, withinsulated glazing in all windows, the latest water-conserving toilets, high-efficiency HVAC systems, solar panels(outdoor, rooftop) LED base and spotlights (c), motion sensor-controlled lighting in toilets, and other eco-friendly
equipment. Our Super Viva Home chain of home centers are also being similarly equipped with mist-coolingsystems, waterless urinals, water-saving toilets, gas air conditioners that do not consume electricity, electricity
demand monitors, solar panels, wind turbines (d), LED lighting, and other equipment to create even more
eco-friendly stores.

▲LED lighting in showroom▲Solar panels and wind turbines at Super Viva Home

92

LIXIL Green Curtain Project
We encourage workplaces throughout Japan to participate in our LIXIL Green Curtain Project by growing green
curtains around May of every year. There were 45 participating sites during FY2014. We also hold an in-housecompetition as the LIXIL Group that is voted on by employees every year. Green Curtain Awards, Idea Awards,
and Communication Awards are given for two divisions consisting of the factory, construction, and logistics
division and the sales and office division in an effort to sustain and enliven activities through competition within
the Group.

▲Green curtains at our Hukaya Factory (left) and “MONODUKURI Kobo(Manufacturing farm)” (right) (winners of the
FY2014 in-house competition)

Recycling resources
At LIXIL Corporation, we collect and sort all industrial waste products generated in our production processes
according to the 3R principle. Our development departments lead efforts to promote the recovery of resourcesfrom waste, and reduce waste product generation at the manufacturing stage. In the future, we plan to pursue
resource recycling on a global scale from the procurement of raw materials through to disposal of the product.

Waste materials and ratio of waste materials recycled ★

*2 companies, 10 companies, and 1 company added to the scope of aggregation for FY2012, FY2013, and FY2014,
respectively.
*The recycling rate is the ratio of waste material volume turned back into resources, including valuable materials.
* See here for the targets and scope of the below data

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Use of Recycled Aluminum Materials
The manufacturing process for aluminum parts and materials used in products such as sash windows is what
uses most energy in LIXIL Group business. We are implementing thorough initiatives aimed at reducing energy
consumption and we work hard to recycle resources so as to reduce energy consumption from the procurementof raw materials. LIXIL actively seeks to use as raw materials the recycled aluminum materials collected fromitems such as sash windows disposed of when dismantling housing, etc.

LIXIL Eco Centers
Following on from the launch of housing renovation waste collection with the goal of recovering resources at our
Eco-Center Tokoname in 2007 and Eco-Center Ibaraki in 2011, we recently launched a new business in Sendai City,
Miyagi Prefecture. We have received the cooperation of housing renovation businesses in the areas surrounding
Aichi Prefecture, Mie Prefecture, Gifu Prefecture, Ibaraki Prefecture, Tokyo, Chiba Prefecture, Saitama Prefecture,
Kanagawa Prefecture, Tochigi Prefecture, Gunma Prefecture, Miyagi Prefecture, Iwate Prefecture, Fukushima
Prefecture, and Yamagata Prefecture, and promoted the recycling of household equipment such as bidet toilets
and water faucets, in addition to window sashes, doors and carpets, etc.

Background to the Launch of LIXIL Eco Centers
In recent years, there has been an increase in efforts to recycle waste materials arising from the new
construction of housing or renovation work. However, scrapped household equipment often combines glass,waste plastic and wood waste, making it difficult to dismantle and sort. For this reason, it has often been sent tolandfill or thermal recycling (through which heat energy is collected) and initiatives in material recycling (throughwhich waste materials are recycled as resources) have been slow to develop. In an attempt to find a solution tothis challenge, we were the first housing equipment manufacturer to obtain a business permit for paying tocollect waste materials from housing renovations and using this to recycle materials.
In May 2007, we launched an industrial waste materials processing business in Aichi Prefecture at our INAX
Eco-Center Tokoname (now LIXIL Eco-Center Tokoname). In January 2011, we opened LIXIL Eco-Center Ibaraki
and in December 2012 we opened LIXIL Eco-Center Sendai, with the goal of accelerating measures aimed atbuilding a recycling society.

Role of LIXIL Eco Centers
We pay to collect used products from new construction or renovation work, and transport these to our LIXIL
Eco-Centers. At the Eco-Centers we utilize the know-how we have accumulated as manufacturers of housing
equipment and building materials, such as plumbing products and sash windows. Our experienced employees
work by hand to dismantle and sort used products we collect. The manual work carried out at LIXIL Eco Centers
prevents materials from being sent to thermal recycling or landfill sites and we have achieved a materials
recycling rate of more than 90%.

The flow of used products at LIXIL Eco-Center

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History of Our Eco-Centers
April 2005
June 2006

Launched initiatives aimed at construction and commercialization of recycling systems for wastematerials from renovations
Started demonstration tests recycling renovation waste materials at a pilot facility

April 2007

Relocated from the pilot facility to a single plot at the former Tokoname factoryMay 2007Opened INAX Eco-Center Tokoname (now LIXIL Eco-Center Tokoname). Started full-scale collectionof renovation waste materials from outside the company.
Selected by Aichi Prefecture as a “business that promotes the formation of a recycling society” (astatus awarded to leading recycling operators)
Introduced volume reduction facilities for waste plastics

September
2007
February 2008
March 2008
July 2008

Our housing renovation waste materials recycling business received “Ecotown Business”
accreditation
Acquired a waste disposal business permit from Aichi Prefecture

January 2011

Opened LIXIL Eco-Center Ibaraki

June 2011

Acquired a waste disposal business permit from Ibaraki Prefecture. Started business as INAX
Eco-Center Ibaraki.
Intermediate processing (selection) added to waste disposal business at the INAX Eco-Center
Tokoname.
Changed name from INAX Eco-Center to LIXIL Eco-Center

December 2011
April 2012
December 2012
January 2013

Opened LIXIL Eco-Center Sendai. Acquired a waste disposal business permit from Sendai City,
Miyagi Prefecture. Acquired a waste transportation business permit from Sendai City, Miyagi
Prefecture.
Opened LIXIL Eco-Center Sendai.

August 2013

Acquired a waste transportation business permit from Gifu Prefecture.

December 2013

Intermediate processing (compression) added to waste disposal business at the INAX Eco-Center
Tokoname.
Acquired a waste transportation business permit from Ibaraki Prefecture, Gunma Prefecture, Chiba
Prefecture, and Tochige Prefecture.
Acquired a waste transportation business permit from Tokyo, Saitama Prefecture, and Kanagawa
Prefecture.
Acquired a waste transportation business permit from Iwate Prefecture.

October 2013
November 2013
February 2014
February 2015

Acquired a waste transportation business permit from Fukushima Prefecture and Yamagata
Prefecture.

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Preventing pollution
At LIXIL Corporation, we manage and monitor our factories in strict compliance with the Soil Contamination
Countermeasures Law and other environmental laws and regulations to ensure that soil and waterways in thevicinity of our factories are not affected by our operations. No infringements of laws and regulations occurred infiscal 2013.

Preventing Soil Contamination
We continue to manage our sites autonomously in strict compliance with the Soil Contamination
Countermeasures Law as our constituent businesses did before merging to create LIXIL Corporation. In
conjunction with the revision of the Soil Contamination Countermeasures Law, we have ensured legal complianceat sites entailing preparation of over 3000m2 of land for the purposes of reconstruction and new construction.
No cases of soil contamination which would result in fine or sanction were found in FY2014.

Reducing Water Usage and Maintaining Water Quality
LIXIL Corporation's factories use a great amount of water in aluminum product surface finishing and otherprocesses. In order to reduce overall usage, we promote efficient use of water by carrying out detailed water
usage surveys at each factory (water intake, usage per process and water circulation system deployment),
installing water circulation systems, and implementing various other water conservation measures. We also
strictly manage wastewater, and are implementing various measures to minimize the impact of wastewater on
the natural environment.

Water usage in our production activities*Stores in Japan were added to the scope of calculation from FY2013, and logistics in Japan was added to the scope of
calculation from FY2014 (construction divisions and some sales divisions excluded)*There was a significant reduction in FY2013 and FY2014 due to the closing of a plant that was major water user
during FY2013* See here for the target and scope of data collection*The LIXIL Group Corporation has received third-party assurance from the Deloitte Tohmatsu Evaluation andCertification Organization for the data from FY2013 and FY2014.

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List of Major Water Systems
Japan

Overseas

China

RegionMajor Water System

Hokkaido

Ishikari River

TohokuMogami River / Abukuma River

Kanto

Tone River / Tsurumi River / Ara River

Chubu

Kiso River / Yahagi River Oyabe River / ShŌ River

Kinki

Yodo River / Yamato River / Kumozu River

Chugoku

Yoshii River

KyushuEchigo River

Northern China

Biliuhe River / Hai River

Central China

Yangtze River Lake Tai Huai River

Southern China

Pearl River

Vietnam

Red River Hàn River Mekong River

Thailand

Chao Phraya River97

Compliance98Compliance
Basic approach and promotion system
In April 2015, the “LIXIL Group Action Principles” that should be complied with and shared by all employees andexecutives in the LIXIL Group around the world were standardized for the purpose of conducting appropriate
business activities based on common values and ethics throughout the Group, and the LIXIL Group is currently
working to raise awareness of and instill these values.
We have established a Compliance Committee at the Group level with the aim of raising awareness andstrengthening implementation of compliance. We give advice on the construction and operation of compliancesystems by Group companies, and implement measures such as the monitoring of legal compliance.

Compliance education
So that each and every employee increases his or her understanding ofcompliance, the LIXIL Group posts the LIXIL Group Action Principles on theintranet in an effort raise awareness of and instill these principles. In addition,
they have been translated into multiple languages for distribution in a
pocket-sized booklet to all employees. In addition, regular training is conducted
to deepen the understanding of action principles, and every year all employees
are asked to submit a pledge that they will uphold the action principles.
Other initiatives include compiling training materials such as case studies
showing correct behavior in the many situations employees are faced with intheir day-to-day work, and making these case studies available on the company’s
intranet.
*See here for the LIXIL Group Action Principles (full text) (PDF: 8,706KB)

Internal reporting system
LIXIL Group has established an internal reporting system with the aims of collecting information on complianceviolations and acting promptly to prevent improper or illegal behavior.
In addition to building systems that allow direct reporting to managers via the intranet, a reporting system is also
operated using external lawyers as a consultation service. Both routes protect the privacy of the reporter, andare managed so as to prevent reporters from receiving adverse treatment.

Receiving compliance reports from suppliers (materials suppliers andsubcontractors)
Through our corporate activities, LIXIL Group aims to be a socially useful company that is trusted by society atlarge. For this reason, we collect information from our suppliers (materials suppliers and subcontractors) aboutcompliance violations committed by LIXIL Group. We have established a consultation service at an external legal
office, and we try to prevent any additional violations by collecting information and acting appropriately.
* See here for more information（Japanese only）

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Intellectual Property Activities
Basic approach to intellectual property activities
LIXIL’s Group Charter of Corporate Behavior, which acts as a code of conduct for LIXIL Group companies, statesthat “The Group protects and makes appropriate use of its intellectual property as well as respecting theintellectual property rights of others” and LIXIL Corporation has set out its Intellectual Property Management
Rules based on this goal. The aim of the rules is to “Contribute to the development of the business and to
improvements in results at the same time as encouraging creative work at the company and preventing
infringements of the intellectual property rights of third parties,” and these rules form the basis for all
intellectual property activities at LIXIL Corporation.

Intellectual property activities system
LIXIL Corporation has established an Intellectual Property Division at its Head Office corporate divisions and has
established specialist units (or appointed specialist personnel) responsible for matters relating to the protectionof intellectual property rights at each technology businesses and research facility. We hold a twice-yearly regularmeeting, and work to promote company-wide intellectual property activities in our day-to-day work in
partnership with the Intellectual Property Division.

Promoting the acquisition of Intellectual property rights
LIXIL Corporation investigates whether there is prior art in the inventions created at its development
departments, and then makes a judgment on whether there is value, from a business point of view, in submitting
a patent application. This process has been set out under the Internal Rules on Patent Applications. We aim tocreate high-quality intellectual property rights through the thorough operation of these rules.

Preventing the infringement of our intellectual property rights by third parties
If the intellectual property rights of third parties are infringed during the process of carrying out our business,there is a risk of lawsuits from third parties resulting in the suspension of sales or claims for compensation fordamages. In order to prevent this risk, LIXIL Corporation has set out internal rules for carrying out surveys andinvestigating third party intellectual property rights when starting out a new business, and we implement theserules thoroughly.

Education regarding the protection of intellectual property
In addition to the thorough implementation of rules, as part of the intellectual property activities described in
the above sections (“Promoting the Acquisition of Intellectual Property Rights” and “Preventing the Infringementof Our Intellectual Property Rights by Third Parties”), LIXIL Corporation actively pursues education that improves
the intellectual property knowledge and skills of employees whose work involves intellectual property. The
curriculum focuses on patents and design in the case of developers and researchers, and on trademarks in thecase of product planning staff. Training is also given to newly-hired employees.

100Risk Management
LIXIL Group promotion system
LIXIL Group regards all uncertain factors with the potential to hinder the achievement of our management goals
as risks. For this reason, we have built a risk management system at each Group company. In order to promote
this system we have established the LIXIL Group Risk Management Committee chaired by the LIXIL Group
President as the highest decision-making body. Each Group company is managed under the same system. We
have established a controlling department at LIXIL Group Head Office with the aim of carrying out centralized
management of risk across the Group, and we have established risk management offices at each company. Whenmajor risks arise, the LIXIL Group Risk Management Council handles the situation and provides instructions.

LIXIL Corporation promotion system
Besides establishing a controlling department at Head Office, LIXIL also manages risk horizontally through 20 risk
management groups. As part of our risk management promotion activities, risks are selected on a yearly basis
and assessments are carried out (assessments of impact, frequency and any weaknesses in prevention andfollow-up measures), targets are set, measures are proposed and an implementation schedule is formulated.
PDCA management is carried out on a quarterly basis with the aim of implementing measures, making
assessment and giving feedback.

Business continuity plans
In the light of the Great East Japan Earthquake, the flooding in Thailand, and the increased risk of future natural
disasters, we will continue to promote the formulation and development of business continuity plans across all
Group companies.

Outline of risk management promotion system* reference：Latest Annual Report “Compliance/ IR Activities/ Risk Management ”

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Information Security
LIXIL Group places particular importance on the protection of information assets as part of our risk management,
and with this goal in mind we have prescribed the Information Security Management Rules and promoted proper
information management. We have centralized our information systems administration and management
functions at the Information System Division.

Management system
LIXIL Group includes a diverse range of businesses and companies. We carry out self-assessments on theinformation security challenges that we are likely to face as part of our information management using
check-sheets based on the Information Security Management System (ISMS), and we use this as the basis for
implementing improvement activities. We have built a management system that includes monitoring by the
Information System Division. In the unlikely event that a problem arises, the Information System Division, LIS, theRisk Management Promotion Division, and the general affairs departments at each business and company work
together to minimize the damage, carry out a company-wide inspection to identify the cause of the problem, andpromote improvements to ensure the same problem does not happen again.

Information security initiatives
In order to protect information assets, we have implemented technological measures, such as security measureson our networks and automatic updates for anti-virus software. In order to prevent leaks of information from theiPads distributed to our sales representatives for use outside the company, we have developed a system for the
remote deletion of data contained in iPads in order to forestall potential leaks.
Furthermore, in order to ensure full compliance by our employees with information management rules, allemployees are obliged to undergo annual training through an e-learning program and to sign a “Pledge to
Uphold Information Security Management Rules”. In FY2013, these measures were successfully implemented for
100% of eligible employees.

Protection of personal information
LIXIL Group believes that the protection of personal information is an important responsibility, and we havedisclosed our philosophy and policies in relation to the protection of personal information under the Privacy
Policy on our website. By adhering to this policy and our internal rules, we seek to ensure that all our employees
handle personal information safely and appropriately.

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Editorial Policy
LIXIL Group has set out a CSR Policy that incorporates “Priority Themes” and “Planned Activities” in the field of
CSR, and we promote activities that contribute to the development of a sustainable society. We have establishedthe following priority theme -“Promote speedy and transparent disclosure and share social contribution visions
with our stakeholders”, and planned activities -“To win and maintain the trust of our shareholders and investors
and achieve sustainable growth in society, we will promote speedy and transparent disclosure of information andshare our visions and plans for social contributions with our stakeholders to facilitate mutual understanding on
this issue.”
The entire Group will provide appropriate and proper disclosures and reports, both within and outside thecompany, and build up a track record of dialog in order to construct ongoing relationships with our stakeholders
and use this as a way of achieving progress in our CSR activities.
We have decided to release information online only, and we will not be publishing a booklet. To replace thebooklet we have set up a CSR activities report page as part of the annual report provided to institutional
investors and we have merged our financial report with our non-financial report. Disclosures of information
made on this website will be used as the main tool for disclosing information so that we are able to communicate
information to a broad range of stakeholders. In addition to annual updates we will publish up-to-date
information as necessary. Significant information and activities related to the corporate governance of LIXILGroup as a whole are reported on the LIXIL Group Corporation website.
* See here for the sustainability activities of LIXIL Corporation Group* See here for the FY2015 annual report

Organizations Covered in This Report
Activities of affiliated companies, including LIXIL Group Corporation and LIXIL Corporation.
When the scope of application is limited for a particular item, this is pointed out in the notes, etc.
The data for Permasteelisa Group, American Standard Brands and GROHE Group S.à r.l. are not included in thedata for fiscal 2014.

Period Covered by This Report
Information relating to the period from April 1, 2014 to March 31, 2015 has been updated and announced as of
September 30, 2015. The report for the next fiscal year is scheduled for August 2016.

Inquiries on the Content of CSR Reports
LIXIL Corporation, Public Affairs Corporate Responsibility Group,* See here for the LIXIL Group inquiries form（https://www.lixil-group.co.jp/e/contact.htm）
Please enter “CSR Reporting Inquiry” in the question field.
A questionnaire survey is carried out in related to the content disclosed on this website.
Please feel free to provide any opinions or impressions you have in relation to the CSR management and CSR
activities of the LIXIL Group. We will refer to your opinions in our future corporate activities and when disclosing
information.
* Click here（Japanese only）
The LIXIL Group Corporation has received independent assurance from Deloitte Tohmatsu Evaluation andCertification Organization in order to ensure the reliability of “Annual Report 2015, Supplementary Data Book:
CSR-Related Non-Financial Data.”
・“Independent Third Party Assurance Report” on p. 13 of “Annual Report 2015, Supplementary Data Book:
CSR-Related Non-Financial Data” (2,549KB)：
http://www.lixil-group.co.jp/e/sustainability/pdf/ar_e_csrdata_2015.pdf

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