LIXIL GROUPCORPORATE RESPONSIBILITYREPORT 2019Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

INDEX
CONTENTS

Index

Commitment3

Our People

28

Society70-- Message from the CEO

4-- Diversity & Equal Opportunity

30-- Human Rights

72-- Message from CR Committee Chairperson

5-- Rewarding Workplaces

35-- Stakeholder Engagement

74-- Supporting International Initiatives

6-- Talent Development

38-- Community78-- LIXIL CORE and Behaviors8-- Occupational Health & Safety

41

CR Management Structure andMaterial Issues Selection9-- CR Management Structure10-- Material Issues11-- CR Strategy

12Three Strategic Pillars

13-- Global Sanitation & Hygiene

14-- Water Conservation & Environmental Sustainability 20-- Diversity & Inclusion

23

ESG Data, Scope of Reporting and GRI

83

Environment45-- External Evaluations & Awards

84-- Environmental Management

47-- Action Plan & KPIs

86-- Climate Change Mitigation and Adaptation

50-- Human Resource Performance

94-- Sustainable Water Use53-- Environmental Performance

98-- Sustainable Use of Resources

56-- Scope of Reporting105-- GRI Index

107-- TCFD Index

121

Customers & Supply Chain

58-- Responsible Supply Chain Management

60-- Product Safety & Quality

63-- Customer Satisfaction

67● Corporate Governance

Reporting Period

Applicable Organizations

See the Corporate Governance section on the LIXIL Group Corporation

FYE2019 (April 1, 2018 to March 31, 2019)

CR activities of LIXIL Group Corporation, as well as LIXIL

website (http://www.lixil.com/) for information on the Corporate

Corporation and other consolidated subsidiaries are covered

Governance Framework, the Group Management Philosophy, Groupin the report. The scope is provided in footnotes for matters

Charter of Corporate Behavior and Internal Control Systems.

that have narrower coverage.

LIXIL Group Corporate Responsibility Report 20192

Commitment

01

COMMITMENTManagement and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

COMMITMENT
We express our commitment to corporate responsibility through messages from
Kinya Seto, Director, Representative Executive Officer, President and CEO of
LIXIL Group Corporation, and Jin Song Montesano, Chair of the CR Committee.

Commitment
Message from the CEO
Message fromCR Committee Chairperson
Supporting International Initiatives
LIXIL CORE and Behaviors

LIXIL Group Corporate Responsibility Report 20193

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Commitment > Message from the CEO

01

MESSAGE FROM THE CEO

Kinya Seto
Director, Representative Executive Officer,
President & Chief Executive Officer (CEO),LIXIL Group Corporation

COMMITMENT

Commitment
Message from the CEO
Message fromCR Committee Chairperson

Society’s expectations of corporations are higher than everdevelopment of local production/sales structures to ensure

to achieve sustainable growth. By supporting diversity as

before. With the increased interest in ESG (Environment,

they become locally rooted businesses. In FYE2019, we also

well as a culture of inclusion that enables all employees toSocial, and Governance) based investing, it is criticalsigned a global partnership, “Make a Splash! Toilets for All,”

actively contribute as themselves, we will create new value

for corporations to actively engage in solving the world’s

with the United Nations Children’s Fund (UNICEF), which

for our stakeholders, which will lead to strengthening longer-

environmental and social issues, both as global citizens andaims to help establish a sanitation economy in developing

term competitiveness.

to ensure corporate sustainability.

countries by leveraging each other’s areas of expertise.

At LIXIL, we believe Corporate Responsibility (CR) is core

As part of our D&I initiatives, we are also focusing

Expansion of our social business in partnership with UNICEF

our efforts to improve the lives of all individuals throughto our long-term success and that our CR and businessis a significant achievement and has also played a part in

Universal Design (UD). To accelerate our UD strategy,

Supporting International Initiatives

strategies should align. We believe that taking part in solving

developing a sense of pride among our employees.

we created advanced UD concepts and established a

LIXIL CORE and Behaviorssociety’s challenges through our everyday business activities

LIXIL has also recognized environmental issues related

framework for future progress in FYE2018. Going forward,

inspires and motivates our employees to go beyond theirto SDG 13, which calls for urgent action to combat climate

we hope to assist people in various states of physicaleveryday goals, which, in turn, will contribute to LIXIL’s long-change and its impacts, as one of our key management

ability around the world by sharing the technology we haveterm competitiveness.

challenges. Having identified the opportunities and risks

developed in Japan, where the population is aging, helping

To improve the quality of people’s lives, LIXIL focuses on

associated with social concerns such as climate change,

them to lead comfortable lives.

three strategic pillars that help solve global social issues that

we are executing on an environmental strategy consistentrequire urgent action, as well as make a positive impact inwith our business strategy. With the adoption of the Paris

continues to tackle material CR issues, including employee

the communities that we operate in.

Agreement in 2015, which set a clear direction towards

health and safety, procurement, and compliance, for which

global de-carbonization, LIXIL is pursuing innovation in low-

we have gained high external recognition.

Three Strategic Pillars
Even today, approximately two billion people around theworld live without access to basic sanitation. Therefore, LIXIL

In addition to the three strategic pillars, LIXIL alsocarbon and water-efficient technologies. Furthermore, we are

At LIXIL, we remain committed to contributing to theworking on updating our environmental vision to contribute

various challenges affecting our world. We will continue toto a sustainable global environment on a longer-term basis.

enrich the quality of people’s lives and homes by leveraging

Relating to SDG 5, which aims to achieve gender equality,

our global network and accumulated expertise in living solutions.

is addressing the global sanitation and hygiene challenge,

we announced the LIXIL Diversity & Inclusion (D&I)

an area related to Goal 6 of United Nations’ Sustainable

Declaration in FYE2018 in order to help foster a corporate

Development Goals (SDG), which aims to ensure access toculture that recognizes and values diversity at a more global

water and sanitation for all by 2030. We continue to create

and extensive scale. In a market where customer needs

a range of solutions, including our commercialized SATO

continue to expand, it is vital that we support a diverse

Toilet Systems for developing countries, while facilitating theworkforce and maximize their individuality and potential

LIXIL Group Corporate Responsibility Report 20194

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Commitment > Message from CR Committee Chairperson

01

Jin Song Montesano

MESSAGE FROM CR COMMITTEE CHAIRPERSONCOMMITMENT

Commitment
Message from the CEO
Message fromCR Committee Chairperson

Executive Officer and Senior Managing
Director, Public Affairs,
Investor Relations, External Affairs,
Corporate Responsibility, andHuman Resources, Chief Public Affairs
Officer, and Chief People Officer

LIXIL’s higher purpose as a company is to make better

Japan called Well Life, designed for people in wheelchairs

employees signing up for the “Team Splash!” initiative,

homes a reality for everyone, everywhere, and Corporate

and those who prefer to sit when cooking. LIXIL’s Universal

which invites employees to make donations to the “Make

Responsibility (CR) is at the core of this endeavor. We are

Design concept is a core part of our diversity agenda, anda Splash! Toilets for All” partnership. Also accelerating

delighted to report that we have continued to reach new

we continue to focus on making things that matter to thein momentum is LIXIL Community Day, inaugurated inheights through our CR activities in FYE2019, making

people who use our products, while promoting it through our

FYE2018, which doubled participation in FYE2019 to 6,900

progress in all three strategic pillars as well as enhancing

advocacy initiatives.

employees across 23 countries. This underscores the strong

global recognition of our initiatives.
With regard to improving Global Sanitation & Hygiene, we

I am pleased to report that the consistent progress
we have made over the last three years to deliver on

purpose-driven culture we are building at LIXIL.
Looking ahead, LIXIL has declared its support for the Task

Supporting International Initiatives

were excited to see that our SATO social business turned

our new CR strategy is gaining global recognition. LIXIL

Force on Climate-related Financial Disclosures. We are also

LIXIL CORE and Behaviors

profitable in Bangladesh, providing us with the confidence

won “Innovation of the Year” at the Ethical Corporation’sin the process of updating LIXIL’s environmental vision tothat social enterprises can be viable and self-sustaining.

Responsible Business Awards for our innovative SATO line

contribute to a sustainable global environment in the long

We also entered into a new partnership with UNICEF calledof products and sanitation initiatives. Similarly, our work toterm. We look forward to sharing in the coming months how“Make a Splash! Toilets for All,” aiming to transform the lives

provide innovative, safe, and affordable access to sanitation

we plan to further our commitments to help protect ourof children around the world by providing them with accessto communities around the world was recognized at theplanet and contribute to society, including strengthening ourto basic sanitation services. On top of this, we launched asecond Japan SDGs Awards, where LIXIL was awarded thedisclosure of climate-related financial information as well as

new partnership with the Bill & Melinda Gates Foundation to

Deputy-Chief’s Award from the Minister of Foreign Affairs.

our broader efforts to deliver on our CR commitments.

pilot a new technology in two markets that could become the

Furthermore, we earned a place in CDP’s prestigious Water

world’s first “reinvented toilet” for household use.

Security A List, reflecting our leadership in sustainable water

As for Water Conservation & Environmental Sustainability,

management. We are also proud to be included for the first

we made progress in our contribution to the environment

time in the Dow Jones Sustainability Indices (DJSI) Worldby switching to 100% renewable energy in our showroom in

Index, and for three consecutive years in the DJSI Asia-

Kyoto and at INAX MUSEUMS, the first step in our journey toPacific Index and FTSE4Good Index. We are also listed onachieve zero CO2 emissions from the use of electricity. In our

the MSCI Japan Empowering Women (WIN) Select Index.

TOSTEM plant in Thailand, we also succeeded in eliminating

Alongside this recognition, how LIXIL makes a difference

landfill waste by collaborating with local industrial waste

to people around the world continues to be a source ofdisposal operators.

growing pride among our employees. We are pleased to

On the topic of Diversity & Inclusion, FYE2019 marked

see this pride propel our colleagues’ desire to participate

the launch of a fully remodeled universal kitchen system in

however they can, demonstrated by close to one thousand

LIXIL Group Corporate Responsibility Report 20195

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Commitment > Supporting International Initiatives

01

COMMITMENTSUPPORTING INTERNATIONAL INITIATIVESThe LIXIL Group’s corporate philosophy is to contribute to

The UNGC 10 Principles

improving the comfort and lifestyles of people around theworld. To bring our philosophy to life through our operational
activities, we are driving a range of R&D and other initiatives

Commitment

HUMAN
RIGHTS

Message fromCR Committee Chairperson

Principle 2: m ake sure that they are not complicit in human rights abuses.

to help resolve global sanitation and hygiene problems aswell as other social and environmental issues.

Message from the CEO

Principle 1: B usinesses should support and respect the protection of internationally proclaimed human rights; andPrinciple 3: Businessesshould uphold the freedom of association and the effective recognition of the right

To meet and exceed society’s expectations for the LIXILGroup, we must take active leadership as a comprehensive

to collective bargaining;

LABOUR

Principle 4: the elimination of all forms of forced and compulsory labour;living and housing solutions company. We will continue toPrinciple 5: the effective abolition of child labour; andsupport the Ten Principles of the United Nations Global

Principle 6: the elimination of discrimination in respect of employment and occupation.

Supporting International Initiatives

Compact, and provide our expertise in areas of sanitation

LIXIL CORE and Behaviors

to help create safe and healthy living spaces for all, as
envisioned in the Sustainable Development Goals.

Principle 7: B usinesses should support a precautionary approach to environmental challenges;

ENVIRONMENT

Principle 8: u
 ndertake initiatives to promote greater environmental responsibility; andPrinciple 9: e ncourage the development and diffusion of environmentally friendly technologies.

Commitment to the UN Global Compact
The LIXIL Group signed the United Nations Global Compact

ANTICORRUPTION

Principle 10: B usinesses should work against corruption in all its forms, including extortion and bribery.

(UNGC) in July 2013 in full support of the principles set
out in the framework. The LIXIL Group will continue to
implement the Ten Principles in the four fields of human

The UNGC was proposed in 1999 by then Secretary-General Kofi Annan torights, labor, environment, and anti-corruption.

encourage companies and other organizations to pursue voluntary actions
to promote sustainable growth as good social citizens.

WEB

United Nations Global Compact

LIXIL Group Corporate Responsibility Report 20196

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Commitment > Supporting International Initiatives

01

COMMITMENT

Sustainable Development Goals

The LIXIL Group’s Three Strategic Pillars andTheir Relevance to the SDGs

The LIXIL Group reflects the Sustainable Development Goals(SDGs) approach in its corporate responsibility strategy

Commitment
Message from the CEO
Message fromCR Committee Chairperson

Global Sanitation & Hygiene

Endorsing the Task Force on ClimateRelated Financial Disclosures
In March 2019, the LIXIL Group announced its support for

and uses the goals as a major guideline when forming

the Task force on Climate-related Financial Disclosures (TCFD).

management decisions. The SDGs are a set of concrete

In response to calls from the G20, the Financial Stability Board

action plans outlined in the Transforming our world: theestablished the TCFD to determine and publish a framework2030 Agenda for Sustainable Development outcome-for the disclosure of climate-related information. The LIXIL

oriented document adopted by the United Nations General

Group will continue to conduct proactive scenario analyses andAssembly in September 2015, consisting of 17 global goals

promote wider and deeper disclosure.

and 169 targets to be achieved for sustainable development.

Supporting International Initiatives

The LIXIL Group will continue to contribute to achieving the

LIXIL CORE and Behaviors

SDGs through its business operations.
CR

Three Strategic Pillars (P13)

PDF

Details about our winning at the 2nd Japan SDGs Awards

WEB

United Nations Sustainable Development Goals

Water Conservation &Environmental Sustainability

CR

Environmental Disclosures (P49)

Diversity & Inclusion

LIXIL Group Corporate Responsibility Report 20197

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Commitment > LIXIL CORE and Behaviors

01

COMMITMENT

LIXIL CORE AND BEHAVIORS
LIXIL Group employees are guided by the LIXIL Core Philosophy and three LIXIL Behaviors.

LIXIL CORE PHILOSOPHY
Commitment
Message from the CEO

The Group’s superior products and services contribute toimproving people’s comfort and lifestyles.

Message fromCR Committee Chairperson
Supporting International Initiatives

LIXIL Behaviors

LIXIL CORE and Behaviors
The three LIXIL Behaviors provide a unified way of working for all LIXIL employees, helping to make LIXIL a purpose-driven
entrepreneurial company fit for sustainable growth.

CR

Improving Understanding of LIXIL Behaviors (P36)

LIXIL Group Corporate Responsibility Report 20198

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CR MANAGEMENTSTRUCTURE AND
MATERIAL ISSUESSELECTIONManagement and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

CR MANAGEMENT STRUCTURE AND
MATERIAL ISSUES SELECTION
We have put in place a robust management structure for driving sustainability initiatives,and have identified key issues that matter the most to our stakeholders, and to us.

CR Management Structure andMaterial Issues Selection
CR Management Structure
Material Issues
CR Strategy

LIXIL Group Corporate Responsibility Report 20199Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

CR Management Structure and Material Issues Selection > CR Management Structure

02

CR MANAGEMENTSTRUCTURE AND
MATERIAL ISSUESSELECTION
CR Management Structure andMaterial Issues Selection
CR Management Structure

CR MANAGEMENT STRUCTURE
LIXIL Group’s Corporate Responsibility (CR) Committee

Management leadership and coordination with the

The Executive Officers responsible for CR swiftly report

was established to align with the technology businesstechnology businesses is critical to achieve prompt andthe results of CR Committee discussions and deliberations tooperating model that was established in April 2015. The

appropriate actions. Accordingly, Executive Officers in

the LIXL Group’s Board of Directors and Executive Officers

CR Committee meets quarterly and works to ensure swifter

charge of the corporate functions, namely HR, Legal, Public

Committee, enabling necessary decisions to be made. The

action in response to economic, environmental and social

Affairs, Finance, Quality, Environment, Technology Research

Executive Officers immediately indicate and communicate

sustainability issues. In FYE2019, the Committee discussed

and Marketing, as well as representatives from each of thedecisions made in the CR Committee to their respective

and decided on participation in international initiatives suchtechnology businesses, have been appointed as members offunctional divisions to facilitate speedy, concrete action.

as the signing of the Task Force on Climate-related Financial

the CR Committee.

Disclosures (TCFD).

Material Issues
Decision-making bodies· LIXIL Group Board· LIXIL Group Executive Officers Committee

CR Strategy

CR Committee(Chairman: Chief Public Affairs Officer)(Quarterly meetings)

Human
Resources

Legal

PublicAffairs

FinanceTechnology, Quality,
Manufacture

Each Chief Officer(Chief Technology, Quality, Manufacture Officer takes responsibility for EHS)

Technology
ResearchMarketingTechnology Businesses

LIXIL Water Technology Representative
LIXIL Housing Technology Representative
LIXIL Building Technology Representative
LIXIL Japan Company Representative* As of March 31, 2019

LIXIL Group Corporate Responsibility Report 201910

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

CR Management Structure and Material Issues Selection > Material Issues

02

CR MANAGEMENTSTRUCTURE AND
MATERIAL ISSUESSELECTION

MATERIAL ISSUESIn FYE2016, the LIXIL Group identified the issues that

LIXIL Group’s Material Issues

matter the most to its stakeholders and the Group following
a rigorous materiality selection process, as described below.

Category

Material Issues*

Background and Reason

Corporate governanceCompliance
Risk management
Information security
Taxation strategy
Intellectual property strategy

As a global company, maintaining strong corporate governance practices is of criticalimportance to LIXIL. It is also an issue that has become of increased interest to ourshareholders with the adoption of Japan’s Corporate Governance Code in 2015. While
expanding our global reach, our corporate governance was put to the test in 2015, when
we discovered accounting irregularities at an overseas subsidiary. To prevent recurrence ofsuch incident and solidify our operating foundation, we must further advance our efforts tostrengthen our corporate governance, compliance and risk management systems.

Anti-corruption
Transparent political relations
Fair business

Corruption is detrimental to the development of a sustainable society. Global scrutiny towards
bribery and fraud is intensifying, and extraterritorial application of penalties is increasing rapidly.

Human rights due diligence

With the UN’s adoption of the Guiding Principles on Business and Human Rights, whichclarify the responsibility of companies to uphold human rights, protecting and respecting
human rights both within the LIXIL Group and across its entire sphere of business influence
have become a greater priority.

Labor PracticeDiversity and equal opportunity
Occupational health and safety
Employee recruitment and retention
Labor-management relationshipWorking environment
Talent development
Local job creation

With global expansion, our business and organizational structure have become more
complex and diverse. We therefore need to grasp and manage appropriately risks related tooccupational health and safety across the Group.
Diversity is vital to innovation. Companies worldwide are increasingly focused on attracting
and retaining high-caliber employees. We are actively promoting diversity in line with the LIXIL
Diversity & Inclusion Declaration, but we need to push ahead further in pursuing this cause.

Quality andSatisfaction

Product safety
Customer satisfaction

Product safety is a top priority for the LIXIL Group as a manufacturer. Serious product defects
can cause customer anxiety and greatly affect the reliability and reputation of our products.

Environment

Greenhouse gas reduction
Sustainable water use
Sustainable use of resources
Environmental management

The adoption of the Paris Agreement to combat climate change by 196 parties has shaped aclear direction towards future decarbonization. Global water shortage is intensifying, and weneed to do more to protect water, energy and other natural resources throughout the LIXILGroup value chain, from procurement to production, distribution, product use and disposal.

Supply chain management

Stakeholder interest in responsible supplier management has grown in line with thedevelopment of international standards on sustainable procurement. The LIXIL Group’s
manufacturing footprint extends across Japan, Asia, Europe, North and South America andthe Middle East, and we need to do more to promote responsible supplier management.

Stakeholder engagement andcollaboration
R&D for solving social problems
Contribution to global sanitation &hygiene

The UN Sustainable Development Goals (SDGs) have galvanized companies into helping
solve social problems. As a pioneering maker of water and housing products, we need tocooperate with stakeholders and focus more on R&D designed to help solve social issues,
such as a graying society and the importance of hygiene and the environment.

We have set a medium-term action plan for each of thesematerial issues, and disclose the progress and results of our

CR Management Structure andMaterial Issues Selection

activities on our website. Going forward, we will continuously

Governancereview these issues to reflect changes in the environment
surrounding the LIXIL Group.
Fair Business
Practices

CR Management Structure
Material Issues* Compiled FYE2016* Highlights issues that require focused priority action

Material Issues Selection Process

CR Strategy

Human Rights

Issues were selected considering:
1) Global trends2) Relevance to the industries to which the LIXILGroup belongs3) Expectations of our stakeholders (customers,
shareholders, business partners such as
suppliers, NGOs, etc.)

Selection

Assessment

Validation
and Approval

The level of impact of each selected issue wasassessed considering:1) The Group’s mid-to-long-term business opportunities
2) The viewpoints of our stakeholders

Material issues were selected by relevant business
functions, and the CR Committee approved the final
list of material issues.

LIXIL Group’s Material Issues

Supply Chain

Stakeholder
Engagement

LIXIL Group Corporate Responsibility Report 201911

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

CR Management Structure and Material Issues Selection > Corporate Responsibility Strategy

02

CR MANAGEMENTSTRUCTURE AND
MATERIAL ISSUESSELECTION

CORPORATE RESPONSIBILITY STRATEGYAt LIXIL Group, we believe that our living spaces — the

comfortable products and services through responsible andAbout LIXIL Vision for Sustainable Living

environment where we live, work and play — are critical tosustainable innovations. We leverage our scale and expertiseWEB

Video (3 mins)

our daily lives and well-being. As a result, we are committed

to pursue initiatives focused on our three strategic pillars

PDF

Details (137KB)

to ensuring that any growth in our businesses contributes tothat cover global issues requiring urgent action and are

improving the quality of people’s lives by delivering safe andclosely linked to our field of business.

CR Management Structure andMaterial Issues Selection

Our Corporate Responsibility Mission
To be the most trusted company by enhancing living spaces through innovative, responsible engagements and initiatives around the world

CR Management Structure
Material Issues
CR Strategy

Global Sanitation & Hygiene
Promote and enable access to safe andhygienic sanitation practices, especially for womenand girls, while preventing the harmful transmission of
diseases for children.

Water Conservation &Environmental Sustainability

Diversity & Inclusion

Conserve water, energy, and other natural resources
utilized in and by LIXIL products and services, includingin the supply chain, production, distribution and during
end use.

Leverage the knowledge and perspectives of
a diverse workforce as a key driver of growth andinnovation, and improve quality of life for all people
through our products and services, irrespective of theirage, gender, and level of ability or disability.

100 Million People

Net Zero

Inclusive for All

By 2020, improve the livelihood of 100 million people
through sanitation and hygiene solutions.

By 2030, achieve a net zero balance between LIXIL’s
environmental footprint and the positive environmental
contributions created through our products and services.

By 2020, establish the culture of diversity and inclusion
within our organization and with all employees.
By 2030, ensure all products and services* are based on
LIXIL’s Universal Design concept.
* Scope: products and services in Japan (as of August 2019)

Our strategy stands upon a foundational commitment to ethical business practices
GovernanceFair Business Practices

Human Rights

Labor Practices

Quality and Satisfaction

Supply Chain

Enhance LIXIL’s
governance to maximize
our corporate values

Engage all employees andofficers in our business
operations with a highstandard of corporate ethics

Advance human rights acrossthe business to operate as a
responsible corporate citizen

Build a strong corporation
and workplace where all
employees can achieve theirfullest potential

Strengthen relationships
with customers through our
products and services

Through responsible managementof the overall supply chain, delivera stable portfolio of products andfulfill stakeholder accountability

Stakeholder
Engagement
Proactively engage with
LIXIL’s key stakeholders

LIXIL Group Corporate Responsibility Report 201912

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03
THREE
STRATEGIC PILLARSManagement and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

THREE STRATEGIC PILLARSThe LIXIL Group leverages its specialist expertise and business scale topursue initiatives focused on three strategic pillars, selected from among
the most urgent issues relating to the regions in which we operate.

Three Strategic Pillars● Global Sanitation & Hygiene● Water Conservation &Environmental Sustainability● Diversity & Inclusion

LIXIL Group Corporate Responsibility Report 201913

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Three Strategic Pillars > Global Sanitation & Hygiene

03
THREE
STRATEGIC PILLARS
Three Strategic Pillars● Global Sanitation & Hygiene● Water Conservation &Environmental Sustainability

GLOBAL SANITATION & HYGIENE
Promote and enable access to safe and hygienic sanitation practices, especially for women and girls,
while preventing the harmful transmission of diseases for children.

Highlight

Social Issues
People living
without a toilet

Target2 billion people(1 in 4)670

● Diversity & Inclusion

By 2020, improve the livelihood of 100 million people
through sanitation and hygiene solutions.

Those regularly
defecate outdoors
millionpeopleProgress (FYE2019)12.5 million people
Our Journey
Launched Make a Splash! Toilets for All global
partnership with UNICEF

Set up the Social Sanitation Initiatives organization(now the SATO Business Division), which focuseson sanitation solutions

2016

2017

2018

Analyzed socioeconomic
losses from poor sanitation

2019

2020
Bangladesh SATO operation
moved into the black

Launched the Toilets for All project

LIXIL Group Corporate Responsibility Report 201914

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Three Strategic Pillars > Global Sanitation & Hygiene

03
THREE
STRATEGIC PILLARS
Three Strategic Pillars● Global Sanitation & Hygiene● Water Conservation &Environmental Sustainability● Diversity & Inclusion

Background

The impact of the sanitation crisis is felt throughout
entire nations and regions, crippling opportunities for

Our Approach & Strategy

An estimated two billion people – about one-quarter of thegrowth and development. In 2015, global economic losses

Utilizing our technology and capabilities as an organization,

global population – live without access to safe, sanitaryfrom poor sanitation were estimated at US$223 billion.

as well as partnerships with various stakeholders, the LIXIL

toilets. Among them, approximately 670 million people still

Among the UN’s Sustainable Development Goals (SDGs)

Group is striving to improve sanitation and quality of life forregularly defecate in the open. These figures come with afor 2030, Target 6.2 seeks to “achieve access to adequate

100 million people by 2020.

devastating human cost: each day, over 800 children underand equitable sanitation and hygiene for all and end open

Sanitation problems vary by region, depending on thefive die from diarrheal diseases caused by unsanitary living

defecation, paying special attention to the needs of womenavailability of water resources, the level of urbanization,

conditions.

and girls and those in vulnerable situations”. This highlights

and access to toilet facilities. The LIXIL Group’s Sato

A lack of safe, clean toilets poses particular dangers forthe need for collaboration between governments, NGOs,

Business Division is the primary driver of R&D and businesswomen and children. There are countless cases of women

private companies, and various other sectors in tackling

operations tailored to the characteristics and needs ofor children being sexually assaulted while trying to findsanitation issues.

individual markets, including infrastructure, income levels,

somewhere private to relieve themselves. Sanitation issues
also contribute to the gender gap in education – the lack ofsanitary school toilets has been identified as a reason why* According to “The True Cost of Poor Sanitation”, a 2016 survey
conducted by Oxford Economics, the international NGO WaterAid, andthe LIXIL Groupand environmental restrictions.

girls who have started menstruating feel they are no longer
able to attend classes.

WEB

The True Cost of Poor Sanitation

Regional Issues and Solutions
RegionIssue

Solution

Features

Many households and schools
lack toilet facilities

SATO toilet system

Rural areas• Low price• Simple installation• Water-efficient flushing

Inadequate water supply andfacilities

Micro Flush Toilet System(under development)• Reuse wastewater for flushing• Water-efficient flushing

Difficulty of sewerage
infrastructure or pit toilet
installation

Portable Toilet System(under development)• A combination of easily installed
portable toilets and stations
for collecting toilet waste fromindividual households

Urban areas

Rural areas with scatteredcommunities and slums
Slum in Mumbai

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Three Strategic Pillars > Global Sanitation & Hygiene

03
THREE
STRATEGIC PILLARS
Three Strategic Pillars

SATO Toilet System
The SATO toilet system is a simple, affordable solution

The SATO toilet system is currently manufactured andintended for use in developing countries. Flushing requires

sold in six countries in Asia and Africa. Including donations,only 0.2-1 liter of water, using a counterweight trapdoor

some 2.5 million units have been distributed to at least 25

that otherwise remains closed to reduce odors and prevent

countries. Based on an average of five users per unit, SATO

insects from spreading bacteria. The original SATO

is estimated to have contributed to better sanitation formodel, developed through dialogue with communities inaround 12.5 million people.

● Global Sanitation & Hygiene

Bangladesh, received a grant from the Bill & Melinda Gates● Water Conservation &Environmental Sustainability

Foundation. Production and sale began in the country in 2013.

● Diversity & Inclusion

Countries Where SATO Toilet System Is Used

SATO Toilet System

User relieves themselves

User pours water into
the pan, which opens
the trap and flushes
the waste

The counter-weight trap
door closes to keepodors and flies away

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Environment

Customers & Supply Chain

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Three Strategic Pillars > Global Sanitation & Hygiene

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THREE
STRATEGIC PILLARS

Developing Products Suited to Local Conditions
Adapting product development to local challenges andneeds is a vital element of sustainable social business.
The SATO toilet system is currently available in 22 models

Three Strategic Pillars

tailored to local sewage treatment methods and market
needs. In India, for example, we developed the SATO V-Trap
toilet to address local problems of clogging and time-● Global Sanitation & Hygiene

consuming installation.

● Water Conservation &Environmental Sustainabilityof 2019. The Indian government promoted a twin-pit system,● Diversity & Inclusion

India is aiming to eradicate outdoor defecation by the end
but it was burdensome to switch from one pit to another,

内部ユニットoften causing blockages in the mechanism. By replacing thestandard Y-shaped piping with a V-shaped one, SATO V-Trap
reduces the risk of clogging and requires approximately 80%

Installing SATO-V-Trap

Twin-pit systemless water per flush than conventional toilets.

How SATO V-Trap Works
Tank AA
タンク

Tank BBタンク

Tank AA
タンク

Tank BB
タンク

タンク
A
Tank
A

When collected waste
タンク A がreaches the capacity
一杯になったら
limit of the tank A

Internal
内部ユニット
components
Tank
B

タンク A

タンク B

タンク A

内部ユニットInternal
components

棒で内部ユニットを回転させ、
Rotate the internal
使用するタンクを
components withAaから
bar B に切り替えて使用する
to switch tank from A to B

タンク B

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Three Strategic Pillars > Global Sanitation & Hygiene

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Three Strategic Pillars

Tackling Sanitation Issues
throughout the Value Chain

Partnerships

Toilet Board Coalition

Solving sanitation issues is not something that the LIXIL

The LIXIL Group is a member of the Toilet Board Coalition,

SATO works alongside partner companies and NGOs toGroup alone can achieve. Our initiatives rely on collaborativea global alliance of public and private sector partners that

establish regional production and sales systems based

partnerships that utilize the strengths of various specialist

aims to develop sustainable solutions to the sanitation crisis.

on its underlying philosophy of social business with localorganizations, NGOs and business partners.

We assist with the running of the organization, mentor

roots. By driving the make-sell-use cycle, SATO generates
regional employment and enables autonomous, continuous

entrepreneurs who tackle sanitation problems, and engage

UNICEFin advocacy through the Toilet Board Coalition.

LIXIL Corporation and the United Nations Children’s FundWEB

● Global Sanitation & Hygiene

improvements in sanitation conditions.

● Water Conservation &Environmental Sustainability

who install SATO units and build toilet cubicles. Through(UNICEF) formed the Make a Splash! Toilets for All global

training programs offered in collaboration with NGOs, SATO

partnership to improve sanitation for children around the world.

supports skill acquisition primarily among women and young

We launched the initiative in Ethiopia, Kenya and Tanzania to

people. Reports in India showed a 200% increase in theestablish markets for hygiene-related goods and ensure the

LIXIL Corporation launched the Toilets for All Project inearnings of women who received our training.

availability of affordable products for people lacking toilets.

2017 to spread awareness of global hygiene issues in JapanWe are working to expand this market-driven program.

and improve sanitation in developing countries. Under the● Diversity & Inclusion

One such job-creation initiative is the training of workers

At the same time, we are working to educate communities

Toilet Board Coalition

Together with Japanese Customers

about the importance of sanitary toilet use. Unless they are

project, for each LIXIL shower toilet sold in Japan, LIXIL

used, installed toilets do not contribute to solving sanitation

donates one of its simple and innovative SATO products to aissues. That is why we work with UNICEF and NGOs todeveloping country in Asia and Africa. Through international

promote understanding of the importance of sanitation andorganizations and NGOs, our toilets were donated to priority

toilet use.

regions and people in India, Tanzania and Rwanda, as

BRAC, PSI and Other NGOs

well as Rohingya refugee camps in Bangladesh. Donations
totaled 208,805 units in 2017 and 203,454 in 2018. In

To succeed as a social business, we depend on

2019, we began donating a portion of sales through ourcollaborations with NGOs already established in theMake a Splash! Toilets for All partnership with UNICEF.

community and engaged in local sanitation issues. LIXIL
works with experienced NGOs such as BRAC (Bangladesh
Rural Advancement Committee) in Bangladesh and PSI(Population Services International) in Kenya to build
the value chains that enable SATO installation, lobby
Training program

governments to promote sanitation measures, and receive
feedback on product development.

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External Recognition

Designing Toilets for the Future

In December 2018, LIXIL Corporation received the Deputy-

In 2018, LIXIL Corporation announced a partnership

Chief’s Award, given by the Minister of Foreign Affairs, at thewith the Bill & Melinda Gates Foundation to develop and2nd Japan SDGs Award. The LIXIL Group’s efforts to tackle

commercialize the world’s first household reinvented toilet,

sanitation issues, including the development of SATO products,

an off-grid system able to treat human waste without water

the solving of challenges throughout the value chain, as well asor sewerage facilities. Many regions around the world

advocacy in collaboration with NGOs and international bodies,lack easy access to water, or face prohibitively expensive● Global Sanitation & Hygiene

have been recognized through various awards.

sewerage installation and repair due to rapid urbanization. In● Water Conservation &Environmental Sustainability• Deputy-Chiefs’ Award given by the Minister of Foreign

Three Strategic Pillars● Diversity & Inclusion

How Micro Flush Toilet System Works

Drain

Pump

such areas, installing conventional flush toilets that require
Affairs, 2nd Japan SDGs Award• Grand Award, 2017 International Association for Universal
Design (IAUD) Awards (Toilets for All Project)• Innovation of the Year Award, Responsible BusinessAwards (SATO)

water and sewerage infrastructure is difficult. With a team of
specialists in technology, design and product development,

Sanitary sewage
storage tankRe-use sewage water to carry waste

LIXIL is leading the creation of experimental new toilet systems.
We are also working to develop Micro Flush Toilet System
and Portable Toilet System, which aim to help solve issues in

How Portable Toilet System Works

cities and slums.

• Selection Committee Special Award, 7th Technology,
Management and Innovation Awards (SATO)• 2018 Good Design Award (SATO)• Red Dot Award 2018 (SATO V-Trap)

Collection
StationTreatment
Site

2nd Japan SDGs Award Ceremony

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Society

ESG Performance

Three Strategic Pillars > Water Conservation & Environmental Sustainability

03
THREE
STRATEGIC PILLARSWATER CONSERVATION & ENVIRONMENTAL SUSTAINABILITY
Conserve water, energy, and other natural resources utilized in and by LIXIL products and services, including in the supply chain,production, distribution and during end use.

Highlight
Social Issues

TargetThree Strategic Pillars● Global Sanitation & Hygiene

World energy consumption

32%● Water Conservation &Environmental Sustainability● Diversity & Inclusion

By 2030, achieve

Those likely to experiencewater stress by 2050

4

is consumed in buildings

NET ZERO

a net zero balancebillion people(2 in 5)

(residential 24%, commercial 8%)

between LIXIL’ s environmental footprint andthe positive environmental contributions
created through our products and services.

0

Compared to FYE2016

FYE2021 Targets

CO2 emissions reduction attributable
to Group products and services

1.36 times 1.21 times
+3.2%
-8%

CO2 emissions from places of business

FYE2019 Progress(-4.5% of emission intensity
per unit of output)

Our Journey
Developed Group-wide EHS management
and promotion system and held a global
meeting of the EHS Committee

2016

2017

Formulated Environmental
Sustainability Principles andEnvironmental Vision 2030

Set the 2020 mid-termtargets, promoted environmental initiatives at eachbusiness base

GHG reduction target was approved by
the Science Based Target initiative
Endorsed the Task Force on Climate-Related
Financial Disclosures (TCFD)

2018
Launched My Bottle Promotion
and THINK HEAT campaigns

2019

2030

Earned the CDP Water 2018 A List which
recognizes companies exhibiting superior water
resource management

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Three Strategic Pillars

BackgroundOur Approach & Strategy

Increasingly frequent occurrences of extreme weather events

As a living technology company, the LIXIL Group formulated

and changing regional climates caused by global warming

its Environmental Vision in 2016 with the aim of helping

are disrupting the way we live today. In 2015, the UN

solve social and environmental problems with its products

introduced its Sustainable Development Goals (SDGs), whichand services that incorporate both environmental

include calls to combat climate change and its impacts.

considerations and comfort.

Environmental Vision 2030

In the same year, the international Paris Agreement was● Global Sanitation & Hygiene

adopted, seeking to achieve carbon neutrality by the end● Water Conservation &Environmental Sustainabilityof the century. These movements, which aim to establish● Diversity & Inclusion

Environmental Vision 2030

a decarbonized society by addressing anthropogenic

By 2030, the positive environmental contribution from ourcontributions to climate change, are now spreading globally

products and services will surpass the environmental footprintin hope of achieving a more sustainable world.

from our entire business process, thus, achieving a net

In addition, with the depletion of the world’s waterzero environmental footprint. We will achieve this throughresources becoming increasingly severe, approximately

innovative technologies, such as low-carbon and water-efficient

four billion people, or 40% of the world’s population, aretechnology, as well as by reducing the environmental impact of

expected to be facing water stress in areas without stableevery one of our processes, including procurement, production,water supply in 2050. Furthermore, the sustainable use of

product use and disposal.

natural resources such as metals, timber, resins and ceramicmaterials is also a significant issue.

Within the LIXIL Group, over 90% of a product’s

Product & Service Lifecycle
LIXIL products are usedover a long period of time

CO2
emissionsenvironmental impact occurs when the product is in use.

LIXIL’s business is strongly linked to buildings, which

For this reason, the LIXIL Group will continue to develop

consume energy in various forms such as air conditioning

energy and water-saving products that can help reduce theand hot water supply. Energy used in buildings accounts

environmental impact of homes, offices and other living

for approximately one third, or 32% (24% residential andspaces with the aim of helping solve climate change.

Over 90 %8% commercial), of global energy consumption, and as aresult, CO2 emissions from buildings have increased by 2.4
times over the past 40 years. Without action, energy use
by buildings is estimated to more than double by 2050,

Procurement

Manufacture,retailHome, office use

Disposalrequiring urgent action in order to reduce anthropogenic
greenhouse gas emissions.

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Management and Material Issues

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Three Strategic Pillars > Water Conservation & Environmental Sustainability

03
THREE
STRATEGIC PILLARSCore Environmental Strategy Themes
We are focused on three core areas in order to achieve ourEnvironmental Vision.

1

Three Strategic Pillars● Global Sanitation & Hygiene

Opportunities and Risks for the LIXIL Group

Climate change
mitigation andadaptation2
Sustainable
water use

Climate change mitigation
and adaptation- Increased demand for improvements in the energy saving
performance of homes and other buildings, and forthe widespread adoption of Net Zero Energy Houses (ZEH)- Heightened risk of natural disasters and increasingly
stringent regulation, and increased energy costs

2

Sustainable water use- Rising demand for water-saving products in the global
market as a whole- Strong likelihood that areas affected by water stress will
increase, resulting in higher operational risk in these regions

3

Sustainable resource use- Technology innovation that makes effective use of recycledmaterials and new forms of energy, etc.

- Rising cost of raw materials, and heightened risk of more
stringent regulation affecting the supply chain, witha consequent increase in reputational risk

Increase positive contribution to the environment
through our products and services

Reduce the environmental footprint ofour business activities● Water Conservation &Environmental Sustainability● Diversity & Inclusion

CR

Climate Change Mitigation and Adaptation (P50)CR

Sustainable Water Use (P53)CR

Sustainable Use of Resources (P56)

FYE2021 Targets

Minimizing Risks

1

3
Sustainable useof resources

Maximizing Opportunities

FYE2021 Targets
Environmental Issues
Improvement inenvironmental value ofour products and services

Climate change
mitigation andadaptation

The LIXIL Group has set FYE2021 targets and action plans
Climate change
mitigation andadaptation

to help realize its Environmental Vision 2030. The Group
has also built a global environmental management system,
and is working as a unified team to ensure a clear grasp of
the environmental impact across its entire value chain andpromote measures to alleviate that impact.

Environmental footprint
reduction from our entire
business process

Sustainable
water use

Sustainable useof resources

Environmental management

KPI

2020 Mid-Term Targets (FYE2021)

2030 targets*3

CO2 emissions reduction attributable toGroup products and services

Increase by 1.36 times (compared to
FYE2016)-

CO2 emissions from places of business*1

Reduce by 8% (compared to FYE2016)

30% reduction

CO2 emissions form product use

Formulate KPI/target and implement
measures based on business plan

15% reduction

CO2 emissions in the distribution process

Reduce by 5% (compared to FYE2016)-

Improving water usage efficiency at major
places of business that have high water
risk• Complete the water risk analysis ofglobal production sites• Select high-risk sites, formulate KPI/-

target and implement measures

Recycling ratio of waste and othermaterials collected from places ofbusiness• Japan & Europe : 95%• Asia : 66%• North America : 40%-

Coverage of EHS management system

100%

-

Number of environmental law violations*2

0

-

*1 C
 O2 conversion factors are published by each electricity company with which our sites have a contract (factors that include emissions from renewable energy sources, etc.)*2 N umber of significant violations with penalty of operational suspension or fines*3 Medium to long-term targets approved by the international Science Based Target initiative

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Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Three Strategic Pillars > Diversity & Inclusion

03
THREE
STRATEGIC PILLARSDIVERSITY & INCLUSION
Embrace the diversity of people inside and outside the Group. This includes helping improve quality of life for elderly people and people with disabilities throughour products and services, and leveraging the knowledge and perspectives of a diverse workforce within the Group as a key driver of growth and innovation.

Highlight

Social Issues

TargetThree Strategic Pillars● Global Sanitation & Hygiene● Water Conservation &Environmental Sustainability

1 in 5 people
aged

By 2030, ensure all products and services are
based on LIXIL’ s Universal Design concept.

Many of those will
be living in elderlyonly households

60 + by 2050

See P30 for internal diversity promotion.

● Diversity & Inclusion

Our Journey2012
Determined LIXIL Universal Design Policy

Established Group-wide UD
Strategy Task Force to promote
development of UD products
and services

2017

Introduced a fully updated versionof Well Life kitchen range adapted
for easy use from a seated position
in a wheelchair

2018

Released Resilience
Toilets for use evenin times of disasters

2019
Toilets for All project won International
Association for Universal Design (IAUD)
award

2030
Set 2030 Universal Design targets

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STRATEGIC PILLARS
Three Strategic Pillars

Background

Universal Design ProjectIn FYE2018, the LIXIL Group established an exploratory

population. By 2050, more than one in five people arecommittee led by senior managers to promote UD-related

projected to be over the age of 60, with most of them living

activities. The committee invited a diverse range of members

either alone or with their spouse only. Approximately 15%

from different functions (design, marketing, technologyof the world’s population today also live with some degree ofdevelopment and public relations) to attend workshops toEasy to use

Safe & secure

disability, and this rate is increasing every year.

formulate advanced UD concepts: easy to understand, easy

Easy to executeand operate
Flexible

Considerate of
all peopleChild-friendly● Global Sanitation & Hygiene

In light of these trends, it is vital that companies help

to use, safe and secure, and easy to love. Based on these● Water Conservation &Environmental Sustainability

improve quality of life for elderly people and people withconcepts, LIXIL intends to develop and offer products anddisabilities through their products and services. It is also

services that incorporate ideas from multiple perspectives toessential that they help build a sustainable society thatenable all individuals of all ages to live full and comfortableprovides everyone with the opportunity to participate andlives in the home.

● Diversity & Inclusion

Easy tounderstand

Many regions in the world are faced with an aging

Intuitive
Clear purpose

Easy to love
Can be used fora long time
Encourages smiles

grow, including by empowering women, as promoted in thefifth SDG on gender equality.
LIXIL Universal Design Policy

The LIXIL Group focuses its efforts on universal design(UD), a design philosophy that seeks to ensure everyone canWEB

Universal Design (Japanese only)

live comfortably, no matter who they are. UD allows as many
people as possible to use a product, irrespective of age,

Easy to understandIntuitive

Clear purpose

nationality, ability, disability or capability. We believe that the• Detectable by anyone• Can be properly recognizedmulti-faceted knowledge and perspectives of our diverse• Uncomplicated• Multi-sensory information, such as sight, hearing and touch

Easy to execute and operate

Flexible• Simple to operate• Uses shapes and dimensions that support body movement and posture• Able to adapt along with changing physical capabilities andgrowing or aging families• Uses layouts that follow the natural flow of movement• Able to select or add necessary functions

range of employees serves as a key driver of growth andEasy to use

innovation that enables us develop and offer UD products.

Our Approach & Strategy
The LIXIL Group aims to encourage all employees to• Ensures space needed to operate

Safe and secure

embrace a diversity- and inclusion-driven culture by 2020.
In addition, we aim to ensure all our products are based on
UD concepts by 2030.

Considerate of all peopleChild-friendly• No physical or financial loss from incorrect use• Designs that consider children’s needs• Minimal damage from accidents

Easy to love

Can be used for a long time

Encourages smiles• High quality to support long-term use• Beautiful, pleasant designs• Easy to look after and keep clean over a long time

• Demonstrates its functional beauty with every use• Designed to adapt to individual ways of living

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Three Strategic Pillars > Diversity & Inclusion

03
THREE
STRATEGIC PILLARS

Examples of LIXIL’s Universal Design
Products and Services
Well Life Kitchen: Easy to Use While Sitting

Developing Guiding Blocks That Are Well-Designedand Easy to Visually Recognize

In October 2018, LIXIL Corporation introduced a fully

The LIXIL Group offers well-designed barrier-free products

updated version of its wheelchair-adapted Well Life kitchen

for public spaces. This includes the guiding blocks forrange. This includes sink and countertop dimensions thatpeople with visual disabilities. Barrier-free experts encourage● Global Sanitation & Hygiene

are easier to use from a seated position. Our Well Life

the placement of dark-yellow guiding blocks on all pathways,● Water Conservation &Environmental Sustainability

kitchen also incorporates user feedback to facilitate steadier

but ambiance-sensitive designers tend to avoid using themside-to-side movement in a wheelchair. This approach is

because the yellow shade stands out too much. This has

not only popular with wheelchair users, but also with many

made it challenging to fulfill both parties’ needs. Therefore,

elderly and other people who prefer to do their housework

LIXIL Corporation developed new blocks to guide people

from a less-tiring seated position.

with visual disabilities using a new cool-yellow color that isThree Strategic Pillars● Diversity & Inclusion

equally visible but blends better with its surroundings. The
new blocks went on sale in FYE2018.

New cool-yellow color blocks

Other Examples of LIXIL’s Universal Design Products and Services
ToiletBathroom

Honoka-Light

Push faucet

WEB

Details (Japanese only)

Bathroom
vanityWheelchair
accessible vanity

WEB

Public toilet

Stairs, corridors,
entrances

Entrance,
exterior

Stairs withslip prevention

Slide system

Large remotecontrol

Kitchen

Living room

In town

Hands-free faucet

Non-rail sash

Support rail UD

Well Life (Japanese only)

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STRATEGIC PILLARS
Three Strategic Pillars

Promoting Broader Understanding of Diversity
Aiming to create a universally accessible society that enables

LIXIL Corporation visits schools to conduct its Universal

people to live invigorating lives while respecting those around

Design: Good for One, Good for All program, which teaches

them, LIXIL offers education programs for elementary school

children the significance of universal design concepts.

students.

LIXIL employees create their own teaching materials andAs part of these educational programs, we hold Universal

International Association for Universal
Design (IAUD) Award*

conduct lessons for elementary school children. The

LIXIL’s Toilets for All initiative won a Grand Award

Run: Sports Prosthesis Experience Class at elementary

program is designed to highlight examples of universal

in the International Association for Universal Design● Global Sanitation & Hygiene

schools in Japan. We want as many people as possible todesign in nearby streets and individual homes to deepen(IAUD) Awards 2017. The project was highly praised● Water Conservation &Environmental Sustainability

consider and personally feel what universal access means

students’ understanding of diversity in terms of gender, age,for its scope, scale, passion and implementation.

by talking with people who wear artificial limbs and attending

nationality, ability and disability, and encourage them to think

The judges described the initiative as “a life-saving

this program. In FYE2019, the program attracted 5,184

what they can do and how they can act on it. In FYE2019,

innovation for the poorest regions of developing

people from 78 schools.

the program attracted 1,810 children from 21 schools.

countries that adds a new dimension to universal design.”● Diversity & Inclusion* An initiative directed by the IAUD general incorporated
foundation that awards groups and individuals who conduct or
propose activities designed to help develop a society in which
the greatest number of people can live comfortably

Diversity of LIXIL Group Employee
The LIXIL Group aims to encourage all employees to embrace adiversity- and inclusion-driven culture by 2020, and to build
a corporate environment that encourages the involvementof a diverse range of personnel. Read on to find out more.
WEB

Universal Run: Sports Prosthesis Experience Class(Japanese only)

WEB

Universal Design: Good for One, Good for All (Japanese only)CR

Diversity & Equal Opportunity (P30)

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Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Three Strategic Pillars > Diversity & Inclusion

03
THREE
STRATEGIC PILLARS

A Toilet That Can Be Used as Always
Even in Times of Natural Disasters

Many people flood into emergency shelters when a

The world is facing more natural disasters caused bydisaster hits, so the toilet facilities should be sufficient inclimate-change related extreme weather events. In

number and quality. However, we can’t satisfy these needs

Japan specifically, experts anticipate there will be awith our Resilience Toilets alone, so LIXIL Corporation ishuge earthquake in the future. The need for disasterworking together with other manufacturers that provide

preparedness is becoming increasingly pressing. Sewage

emergency toilets to help strengthen Japan’s emergency● Global Sanitation & Hygiene

disposal in times of natural disasters is just as vital toresponse capability.

● Water Conservation &Environmental Sustainability

health as securing food and water. Conscious of this, LIXIL

Three Strategic Pillars● Diversity & Inclusion

Received the Grand Awardat the Japan Resilience Awards 2019
(corporate & industrial category)

Corporation has developed the innovative Resilience Toilet,
which can be used in the same way as always even in timesof natural disasters.
The Resilience Toilet can be used like a regular toilet
in everyday life. It has been designed to be comfortable,
easy to clean, and safe to use, and uses five liters of water
for a regular flush. During times of natural disasters, when

Refilled with waterIn everyday life
Can be used like a regular toilet.
Compatiable with a bidet seat.
Uses five liters per flush.

USES

5L

5L

/ flushon regular setting

Simply turnthe flush leverafter usewater and other lifeline services have been disrupted, thevolume of water required to flush can be switched to one
liter without compromising its functionality. This toilet can beused by people of all ages and genders, including those who
might require particular care.
Currently, we are marketing this toilet mainly to schools

When water supply is disrupted
The volume of water required to flush can beswitched from five liters to one liter.

and gymnasiums that serve as emergency shelters when

A toilet you use in everyday life ensures comfortablea disaster strikes, as well as public buildings that serve

use even when water supply is disrupted.

as disaster response centers. Rather than focus solely on

Easy to clean and safe to use.

USES

1L

/ flush*1L

when water supply
is disrupted

providing the Resilience Toilet itself, we are generally helping
solve problems at emergency shelters by providing practicalsupport regarding broad toilet-related issues that may arise* Uses one liter if you hold the lever for about one second.
The volume of water used can vary depending on how you
operate it

Can easily switch into 1L flush modein times of disasters, such as how many toilets are requiredand how to operate them. We also hold disaster-response
lectures in schools.

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Commitment

04
OUR PEOPLE

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

OUR PEOPLE
We strive to respect the individuality of all employees
and create a rewarding working environment.

Our People
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

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Strategic Pillars

Environment

Customers & Supply Chain

Society

ESG Performance
Our People > Highlight04
OUR PEOPLE

Our People

Highlight
TargetBuild a strong corporation and workplace where all employees can achieve their fullest potential.

Diversity & Equal Opportunity

Talent Development

Ratio of women among regularly recruited new hires

Number of employees participating in the Talent Acceleration Program (TAP)
for next-generation leaders

50 ( % )Diversity & Equal Opportunity

40

TargetRewarding Workplaces1500 (people)

30%

Talent DevelopmentoverOccupational Health & Safety(LIXIL Corporation, Japan only)

30

33.2

31.5

30.8

over 30.0

20
10

1250

Target1300

1000

peopleFYE2019

FYE202190 %FYE2017(Target)FYE2018

FYE2019

FYE2021

100

100(Target)Occupational Health & Safety

88

90

90

Group-wide coverage of EHS management system
(%)
100

75

Target50(LIXIL Corporation, Japan only)

500

0

FYE2018

Rewarding Workplaces

Progress

963

250(LIXIL Corporation, Japan only)

FYE2017

(%)
100

1195

750

0

Group-wide coverage of global
employee awareness survey

1300
1078

25
0

FYE2014

FYE2016

FYE2018* Conducted every two years, no survey in FYE2019

98

98

FYE2017

FYE2018

75

100 %

50
25

Acquisition of EHS performance data(based on number of employees)* Excludes sites in newly entered markets

0

FYE2019 FYE2021

LIXIL Group Corporate Responsibility Report 2019

(Target)29

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Our People > Diversity & Equal Opportunity

04
OUR PEOPLE

DIVERSITY & EQUAL OPPORTUNITY
The LIXIL Group is committed to respecting diversity and recruiting and developing high caliber talent across the Group.
We believe that harnessing the intelligence and perspectives of our diverse workforce is critical to driving growth and innovation.

Our Approach
United under the LIXIL Diversity & Inclusion

Our People

Declaration, the LIXIL Group embraces diversity ingender, age, race, nationality, values, background,etc., and turns the energy and creativity generated

Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

by diversity into a source of strength. We aim

LIXIL Diversity & Inclusion Declaration
The LIXIL Group formed the LIXIL Diversity & Inclusion Declaration in FYE2018, aiming to leverage its differences
and create new energy and engagement generated through open and honest dialogue across its organization. These
efforts will enable our employees to build entrepreneurial mindsets that will drive innovation and sustainable growth.

to furnish a comfortable and friendly working
environment for all, enabling employees toapproach challenges with an entrepreneurial

Four Focus Areas

spirit, and be appropriately evaluated for theirperformance.

Our System
Based on the LIXIL Diversity & Inclusion
Declaration, the LIXIL Group is taking a regional
approach to ensuring diversity by setting targets

Gender & Age

Family & LifeWe will drive business performance byembracing diversity and ensuring that all
employees have equal opportunities to be
recruited, developed, advanced, and retained
globally, regardless of gender or age.

We will support employees throughvarious life stages and events, thereby
allowing them to contribute to businesssuccess while also fulfilling personaland family priorities and obligations.

that reflect the situations of individual countries.

Disability
We will raise awareness, provide
education and resources, and proactively
create a culture that embraces, enables,
values, and maximizes the contributionsof persons with disabilities.
PDF

LIXIL Diversity& Inclusion
four focus areas
The LIXIL Group has set four focus
areas to uphold its Diversity & Inclusion
Declaration, and each region will
promote initiatives to address andimprove the focus areas that are
the most relevant for eachcountry and region.

Culture & Identity
We will foster mutual understanding,respect, and communications in orderto fully embrace the diversity in race,
religion, culture, gender identity andsexual orientation of everyone at LIXIL.

LIXIL Diversity & Inclusion Declaration -Japan 2.0- (272KB)

LIXIL Group Corporate Responsibility Report 201930

Commitment

Management and Material Issues

Our People

Strategic Pillars

Environment

Customers & Supply Chain

Society

ESG Performance

Our People > Diversity & Equal Opportunity

04
OUR PEOPLE

Our People

Gender & Age
Empowering Women in the Workplace
The LIXIL Group strives to create an environment in which

Rewarding Workplaces

At the LIXIL Group, the executive management team actively

Female employees intending to take childcare leave can

employees can demonstrate their own individual strengths

use the career mapping tool and interview form to bettersupervises the creation of a rewarding working environment

through their work. We believe the active participation ofcommunicate with their managers to design a career pathin which each and every employee can perform to their full

female employees is a vital part of this effort. In March 2012,and support system, and ensure continued active andpotential.

we had one female senior executive (1.0%) in LIXIL Group

rewarding work after their maternity leave.

Corporation and LIXIL Corporation. In March 2019, theDiversity & Equal Opportunity

Family & Life
Supporting a Healthy Work-Life Balance

Holding active Work-Life Flexibility (WLF) Advisory

We have also set relevant regional targets for increasing

Discussions between the union and the company, LIXIL

number increased to six, including two directors, two senior

the number of women working in LWT Americas, LIXIL Asia, andCorporation is committed to enhancing the necessary

managing executive officers, and two executive officers.

other global locations, and are making efforts to achieve thesystems and cultivating the right atmosphere to support a

LIXIL Corporation set up the Diversity Promotion Officetargets. These include, for example, the number of women

good work-life balance, enabling employees to maintainin each professional class or of different ethnicities.

a high level of performance throughout different life stages.

Number and Composition Ratio of Female Managers ★

Number of Maternity Leave Users ★

(Persons)
900

(%)
15

(Persons)
400

10

300

5

200

0

100

Talent Development

and, in August 2014, became a member of the Male Leaders

Occupational Health & Safety

General Meeting, an initiative backed by Japan’s Cabinet Office
to promote the active participation of women. As a result of
our efforts in facilitating the appointment of female directors,
officers, and managers, LIXIL Corporation had 168 female
managers (5.7% of all managers) at the end of March 2019, 7.6
times more than in March 2012 (22 female managers, 0.9%
of all managers).

12.8

13.9

780
600

14.1

819

683

In addition, we are working to create an environment
where female employees can consistently develop theircareers even if they take time off for life events such as

6.4
300

childbirth. As part of this effort, we have developed theMamap career-building tool for working mothers.

0

100.5

103.5

95.5

93.0
300

290

(%)
100

99.4
96.0

75

249
6.0

5.6

217

220

213

FYE2017

FYE2018

FYE2019

Composition ratio of women among managers (LIXIL Group total)
Composition ratio of women among managers (LIXIL Group in Japan)
Number of female managers (LIXIL Group total)
Number of female managers (LIXIL Group in Japan)
Scope: The entire Group* Directly hired employees only, data collected based on the qualification system used ateach operating company, as of March 31 of each fiscal year

50

197

198

169

FYE2017

FYE2018

FYE201925

0

0Return to work ratio (LIXIL Group total)
Return to work ratio (LIXIL Corporation)
Number of users (LIXIL Group total)
Number of users (LIXIL Corporation)* Directly hired employees in Japan only

LIXIL Group Corporate Responsibility Report 201931Commitment

Management and Material Issues

Our People

Strategic Pillars

Environment

Customers & Supply Chain

Society

ESG Performance

Our People > Diversity & Equal Opportunity

04
OUR PEOPLE

We have introduced a variety of new systems, including

Number of Child-Care Leave Users ★

Number of Nursing-Care Leave Users ★

hourly based paid holidays, career return systems thatfacilitate the reemployment of employees who gave up work

Our People

due to various reasons such as childbirth, childcare, orRewarding Workplaces
Talent Development
Occupational Health & Safety(Persons)
20

75

15

50

10

100

25

5

0

0

0

300

and provide subsidies equivalent to social security premiums
to employees on temporary nursing care leave. More male
employees whose partners have just had a baby are using
our Papa Childcare Leave system thanks to the newly
available extended leave and flexible scheduling options,and more users are further extending their childcare leave
after taking leave for the number of days available under the
Papa Childcare Leave system.
LWT & LHT Asia (GROHE Sanitary Products Shanghai)
forbids employees from doing more than 36 hours of

100.0
97.9
95.4

nursing care commitments, or relocation because of theirpartner’s transfer. We also subsidize extended daycare fees

Diversity & Equal Opportunity

100(Persons)

400

286

100.0
97.9 95.7311
76FYE2017304

FYE2018

100.0

100.0

15
13

50

10

25

4

6

FYE2018

FYE2019

2
FYE2017

Return to work ratio (Male, LIXIL Group total)

Return to work ratio (LIXIL Group total)

Return to work ratio (Female, LIXIL Group total)

Number of users (Female, LIXIL Group total)

Number of users (Male, LIXIL Group total)

(%)
100

106.3

75

12

252

FYE2019

21

17

11

200

280

(%)

97.9
92.4

263

Return to work ratio (Female, LIXIL Corporation)

overtime a month to promote a strong work-life balance.

100.0

0

Number of users (Male, LIXIL Group total)* Directly hired employees in Japan only

Number of users (Female, LIXIL Group total)

Percentage of Staff Still Working 1 Year After Childcare Leave
FYE2017

FYE2018* Directly hired employees in Japan only

FYE2019Male

100.0%

100.0%

100.0%

Female

93.1%

93.1%

96.8%

Total

93.3%

93.3%

96.9%

*Current employment of LIXIL Corporation’s permanent employees inJapan at the end of the business period one year after their return to work

LIXIL Group Corporate Responsibility Report 201932

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Our People > Diversity & Equal Opportunity

04
OUR PEOPLE

 ulture & Identity
C
Fostering a Friendly Corporate Culture
towards Sexual Minorities
Since April 2017, the LIXIL Group has been working to

Our People(if factories that allocate uniforms have the appropriate toilet
and changing facilities).

create a friendly working environment and atmospherefor LGBT and other sexual minority employees. LIXIL

Promoting Multi-Cultural Understanding

Corporation holds study sessions for employees andDiversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

provides badges, stickers and handbooks to employees who

LIXIL Corporation factories accept foreign-national

identify themselves as an LGBT Ally as a way to show theirapprentices. To enable these apprentices to work

willingness to support and understand sexual minorities. We

enthusiastically in Japan, we believe it is important to build

have been promoting internal understanding and support

better communication, so we hold events to help promoteof sexual minorities by encouraging ally employees acrossunderstanding of Japanese culture and Japanese language

Japan to share various information through the LIXIL Ally

study sessions.

network. We also held a social gathering in September 2018

As a global company, it is essential to understand different

LIXIL Women’s Sales Group

Frameworks Encouraging Employee Activities

where employees could interact with sexual minorities. In

cultures in order to foster strong communication. In that

March 2019, we achieved our target of creating two or more

spirit, LWT Americas conducted a program to improve

The LIXIL Group has established frameworks to support

allies in each of our 86 bases with 50 or more employees.

employees’ understanding of values and work procedures inindependent employee activities so that each and every employee

Also in March 2019, we made some improvements to ourJapan, where the LIXIL Group Headquarter is located.

can work enthusiastically and respect each other’s differences.

Encouraging the Promotion to Management
Positionsin 2017. In addition to the Women’s Network launched inhuman resources system and working environments. For
instance, we have started treating same-sex partners as
dependents and applying the relevant congratulation or

LIXIL Corporation launched the LIXIL Diversity Network

condolence leave and financial payments, arranging times

January 2013, we have created networks where employees
involved in childcare and nursing care life stages, employees

and locations for undergoing health checks, and recognizing

LWT South Africa selects staff who have potential leadershipwith disabilities, sexual minority employees, and employees

employees’ preferences for either male or female uniforms

qualities from among its factory workers and from particularinterested in other issues can participate in joint discussions

ethnic groups who have traditionally found themselves

and activities. We actively encourage people to get together

in a disadvantageous position and are underrepresented involuntarily to share and solve their problems on a broad

current management positions. These employees are sent on

range of issues and to improve individual skills and overalla Future Leadership Program designed to develop the necessary

corporate value. For instance, LIXIL runs a Women’s Sales

skills to advance to management positions in the future.

Group to help increase the active participation of saleswomenLGBT-friendly logo

in the traditionally male-dominated construction industry andto provide a venue for proactively sharing and solving any

LIXIL Group Corporate Responsibility Report 201933

Commitment

Management and Material Issues

Our People

Strategic Pillars

Environment

Customers & Supply Chain

Society

ESG Performance

Our People > Diversity & Equal Opportunity

04
OUR PEOPLE

issues or problems that women in particular might have. In
November 2018, we held a video conference event linking
saleswomen across Japan and explained our systems forfacilitating more flexible working styles, and introduced
women who could serve as good role models. The event

Our People

successfully boosted motivation among the participating
saleswomen.

Number and Percentage of Disabled Employees ★

and considerations to improve working environments to suit

(Persons)

1,250

(%)

2.34

2.39

2.43

2.50

1,000

2.26

2.29

2.26

2.00

750

759

762

784

1.50

500

1.00

In FYE2018, LWT Americas also set up employee networks
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

for women, multi-cultural employees, or employees currently
involved in childcare or nursing care, so that employees
from diverse backgrounds can always find a mentor andthe capabilities and characteristics of individual employees.
For instance, we ask people who are prone to anxiety to dotasks at their own pace, or leave an empty desk in front ofan employee who gets distracted by other people aroundthem or allow them to work in a free space.
In May 2016, LIXIL Corporation was certified by theJapanese Ministry of Health, Labour and Welfare as a

250

437

427

438

0.50

0

0
FYE2017

FYE2018

FYE2019

leading company in the active employment of persons withmental and other disabilities. We aim to help create a social
structure in which people with disabilities can participate

never feel alone or isolated. In terms of concrete activities,

Employment rate* (LIXIL Group total)

actively by sharing these initiatives with other companies

we broadcasted a panel discussion held to coincide with

Employment rate (LIXIL Corporation)and government institutions.

International Women’s Day to all our places of business,
and we also held discussions with our product development
and marketing departments on topics such as developing
products for mothers looking after children, and designing

Number of disabled employees (LIXIL Group total)
Number of disabled employees (LIXIL Corporation)* Directly hired employees in Japan only, as of March 31 of each fiscal year
* LIXIL Corporation includes LIXIL Senior Life Company* Calculated based on the Employment Rate System for Persons with Disabilities by
the Ministry of Health, Labour and Welfare* Calculated based on the Employment Rate System for Persons with
Disabilities by the Ministry of Health, Labour and Welfare
FYE2019 human resource performance data indicated with ★ havereceived an independent practitioner’s assurance.

communication for people from Asian backgrounds.
In addition to the proper evaluation of work assignments

Disability
Employing People with Disabilities

CR

Scope and details (P105)

and job development opportunities, WING NIJI has
been undertaking many initiatives to explore the type ofenvironments and conditions that would enable people with

Many employees with disabilities work alongside those

and without disabilities to work together most effectively.

without disabilities in the LIXIL Group because we have

For instance, the office introduced large-font characters fordeveloped inclusive environments in different workplaces,

people with impaired eyesight and adjustable-height desks

from R&D to production, sales administration, and planningfor people in wheelchairs.

management, to suit each individual’s specific disability.

LIXIL Corporation is also strengthening company-wide

As of June 1st, 2018, 784 people with disabilities wereefforts, including introducing sign language interpretation in

employed across the LIXIL Group, representing 2.43% of the

training sessions and other meetings and putting subtitles on

workforce (438 people and 2.26%* in LIXIL Corporation).

intranet videos for employees with hearing impediments.

In 2014, LIXIL Corporation launched its WING NIJI

Since 2012, we have been proactively employing people

office to provide support for people with disabilities.

with mental disorders and seeking to make various efforts

Job instruction at WING NIJI

LIXIL Group Corporate Responsibility Report 201934

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance
Our People > Rewarding Workplaces

04
OUR PEOPLEREWARDING WORKPLACESThe LIXIL Group seeks to create a fair and rewarding workplace,develop a strong and cohesive corporate culture, and foster an open atmosphere between the unions and the company.

Our Approach
The LIXIL Group strives to create an environment that

Our People

encourages employee diversity, inspires pride in thecompany, and enables each individual employee tomaximize their productivity and potential. As part ofDiversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

this, we have been focusing on improving our workstyles
and revising our human resources systems to foster

Workstyle Transformation Campaign
LIXIL Corporation has embarked on a Change Our Working Style! campaign to help create a company
environment that encourages every employee to have an entrepreneurial spirit, and that every employee canenjoy and take pride in. This campaign encourages flat and open communication and facilitates efficient
ways of working to suit individual circumstances.

employee enthusiasm and motivation. This includes
encouraging employees to take paid holidays, offering morecomprehensive childcare and nursing care support, andpromoting personal career development.

Our System
The LIXIL Group is evolving rapidly. In order to further
integrate employees and become One LIXIL, it is important

Building Awareness through the Change
Our Working Style! Handbook
Achieving this level of workstyle transformation requires increased awareness among
both senior and junior staff. We have created and distributed a handbook to all
employees to help convey the aims of our workstyle transformation andthe systems currently available to facilitate it, and to address any doubts or concerns.
We have also set up an inhouse program where managers and employees can cometogether to discuss ideas.

for us to understand the circumstances of each organization
and actively incorporate employees’ views when seeking to
improve working environments and building both top-down
and bottom-up systems.

Expanding the Range of People
Who Can Work from Home
While previously only staff involved in child or nursing
care were cleared to work from home, we have extended
this option to all of our employees. We encourage all of
our staff to consider the best place to work based on thecontent of their work, their circumstances at home, weather
conditions, and any other pertinent factors. We believe thiswill enable them to work efficiently and establish their own
self-styled working patterns. So far, over 1,000 employees
have started using this system.

An Employee-Centric Flexi-Time System
Under our new flexi-time system, we have reduced the numberof core-time hours that employees have to work withina prescribed time of the day to just two hours, leaving them free
to decide how to split up the day’s remaining working hours.
Our ultimate aim is to see staff responsibly managing their own
working hours according to the ebb and flow of their specifictasks. We are encouraging more employees to utilize this systemby sharing materials from discussion groups held by current
users through our in-house media channels.

LIXIL Group Corporate Responsibility Report 201935

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance
Our People > Rewarding Workplaces

04
OUR PEOPLE

Our People

Improving Understanding of
LIXIL Behaviors

Rewarding Workplaces
Talent Development
Occupational Health & Safety

LIXIL Corporation holds study groups on time
management for all employees to help increase awarenessWe conduct opinion surveys of all employees worldwideof the need to work efficiently. Clarifying the definition

We work to ensure

under direct employment contracts every two years. The surveys

of working hours is helping improve the quality of timethat employees

had been previously conducted separately within each Groupmanagement. Employees who consistently work long hours

understand the threecompany, but we combined them into one common survey

are interviewed by an industrial physician to prevent any

LIXIL Behaviors,

in FYE2016. We will conduct the next survey in FYE2020.

consequent issues with their mental or physical health. After

which serve as a
Diversity & Equal Opportunity

Employee Opinion Surveys

In the second survey conducted in FYE2018, we

we started encouraging staff to take five consecutive days

guideline on how

collected opinions from 90.3% of employees in 21 differentof annual leave at a time, and to take leave to celebrate special

individual LIXIL Group

languages. That’s a total of 56,364 responses. The results

personal anniversaries, the usage of paid leave has been

employees think andcollected from major global organizations were then reported

increasing since FYE2015, exceeding 50% in FYE2018.

act in their daily work.

and made accessible to managers and employees. We

LIXIL Corporation

have also introduced an online system that enables each

Paid Leave Days Taken per Employee ★

offered a special

employee to freely view and analyze their own organization’s(Days)

menu associatedresults, so that they can gain a solid understanding of theirwith each of the three behaviors in its canteens to prompt

organization’s strengths and weaknesses and develop action

employees to review the LIXIL Behaviors during their meals, andplans. We have since made progress on over 90% of thethink about their daily working habits. We also set up

451 stipulated actions. We intend to continuously improve

an internal online Group Behaviors Lounge in which we conduct

grassroots initiatives and create an easy, comfortable

relay interviews with our CEO and other chief officers.

working environment by taking various actions, both big

CR

LIXIL CORE and Behaviors (P8)and small, from holding assemblies to encourage inter-

15
9.4

10.5

9.1

8.1

FYE2017

FYE20181059.5
FYE2019

LIXIL Group total
LIXIL Corporation* Directly hired employees in Japan only

organization communication to holding debates centeredaround senior management messages to deepen understandingof our management policies.

Average Monthly Overtime Hours per Employee ★
(Hours)25

Preventing Overwork
The LIXIL Group emphasizes working styles that help
employees achieve high performing and efficient output. To
that aim, top managers are proactively seeking to improve
productivity by eradicating long working hours and ensuring
Relay interview with our chief officers

10.4

a healthy work-life balance.

23.6

21.2

21.8

16.9

17.1

18.3

FYE2017

FYE2018

FYE201920
15
10

LIXIL Group total
LIXIL Corporation* Directly hired employees in Japan only

LIXIL Group Corporate Responsibility Report 201936

Commitment

Management and Material Issues

Our People

Strategic Pillars

Environment

Customers & Supply Chain

Society

ESG Performance
Our People > Rewarding Workplaces

04
OUR PEOPLE

Our People
Diversity & Equal Opportunity
Rewarding Workplaces

Labor-Management Relationship

Creating Local Employment Opportunities

The LIXIL Group believes that building mutual trust between

LIXIL Corporation supports the expansion of employment

the union and the company based on an equal andopportunities in regions in Japan where it operates by

responsible relationship helps create a fair and rewarding

employing technical college and high-school graduates asworkplace and leads to improved business performance.

local permanent employees at its plants.

The LIXIL Labor Union, which adopts a union shop systemfor permanent employees of LIXIL Corporation, had 13,596

Local Employees Hired at LIXIL Plants

registered members as of March 31, 2019, achieving a(Persons)

membership rate of 100%.

250

The fundamental labor-management agreement includes

Talent Development

items relating to health and safety and working conditions.

Occupational Health & Safety

Labor-management consultations are conducted in theform of regular discussions and information-sharing on
business status, working conditions, health and safety

220
200

200

200

150

issues, etc., and the union and the company work together
to resolve issues. When working conditions and/or other

200

100
100

100

systems are newly introduced or revised as a result of labormanagement consultations, the union and the company
cooperate to ensure employees are aware of the changes.
This is facilitated by posting the information on the company

50

FYE2017

FYE2018

FYE2019

TargetResult* LIXIL Corporation plants in Japan only

intranet, passing the information down through relevant
general administration departments, and distributing copiesof the Union Guide compiled by the union to all union members.

FYE2019 human resource performance data indicated with ★ havereceived an independent practitioner’s assurance.

CR

Scope and details (P105)

LIXIL Group Corporate Responsibility Report 201937

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance
Our People > Talent Development

04
OUR PEOPLETALENT DEVELOPMENT
The LIXIL Group supports a systematic and structured talent development program, and encourages all employees to proactively advance their own careers.

Our Approach
The LIXIL Group pursues talent development from a

Our People

who can support the LIXIL brand well into the future.
As part of that process, we focus on training next-

Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

Global Challenge Program: Nurturing Future Global Human Resources

long-term perspective in order to nurture personnel

generation leaders and employees after evaluating global

We launched our Global Challenge Program with the aim of finding and nurturing globally minded, active
talent and supporting self-motivated career-building. The program gives employees of LIXIL Corporation achance to work in an office outside Japan for a year.

LIXIL personnel based on future business needs. To
create a working environment in which all employees
can work and contribute enthusiastically, we support
career development from two angles: company-driven,strategic career development, and self-motivated careerdevelopment managed by individual employees.

Our System
The LIXIL Group holds People and Organization
Development (POD) conferences with its CEOs in all major
global organizations, and creates an annual next-generation
training plan to cover vital positions and help achieve
our Medium-term Plan. In FYE2019, we created a list of
approximately 600 potential successors for 160 major Grouppositions worldwide. This enables us to ensure business
continuity even in times of emergency and to build a futurelooking system for strategically selecting successors. We
devise training plans for each of the listed successors thatare designed to build their individual strengths and address
weaknesses by providing business assignments and job

Training Future Human Resources
We offer opportunities for international work experience tohelp nurture our people to develop the knowledge, experience,career independence, capability, and adaptability required for
our future global business.

Selecting Primarily Young Employees
through Open Recruitment
Each year, we offer open recruitment opportunities to all employees(excluding managers) via our internal intranet. Over 40 employees,
primarily in their twenties, apply each year. They undergo
selection procedures including an interview conducted in English
with an office outside Japan, and selected applicants are thendispatched overseas. We sent 14 employees to six countries(Thailand, Vietnam, China, the United States, Germany, andFrance) in FYE2018, and 14 employees to five countries(Thailand, the Philippines, China, the United States, and Germany)in FYE2019. Each dispatched employee creates their own careerplan prior to departure, and receives regular advice and support
through interviews with the Japan office and mentors, enablingthem to grow through their international on-the-job training.

Building Bridges between Japan andOther Global Offices
As the LIXIL Group continues its global expansion,
the employees dispatched to overseas offices to work together
with local staff play an extremely important role in helping
build a closer relationship with the head office and promotemutual understanding and cooperation across the Group.
The original set of dispatched employees are currently returning
to Japan, where they share their experiences and what theylearned with Japanese colleagues, so their personal insights
can be more broadly incorporated into daily business routines.

transfer opportunities, offering mentor and leadershiptraining, and other measures.

LIXIL Group Corporate Responsibility Report 201938

Commitment

Management and Material Issues

Our People

Strategic Pillars

Environment

Customers & Supply Chain

Society

ESG Performance
Our People > Talent Development

04
OUR PEOPLE

Overview of Talent Development
LIXIL Corporation’s talent development consists of seamless

LIXIL Training System
Company-wide: improving fundamental skills

Company / division-specific: improving expertise

Next-generation education

❶

❷

❸

Career-support training

Company / function-specific trainings

Education for selected employees

education and training programs when an employee
is promoted. The programs are designed to improve

Our People

employees’ basic skills, develop stronger expertise, andnurture next generation managers. We have three types ofEssential
skillstrainings

educational institutions, which are all intrinsically linked.
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety1

Basic School for Improving Fundamental Skills

This training system is designed to help employees at each level
improve fundamental skills and offers learning opportunities

each year group, in particular, focuses on developing the skills
required to foster flat communications and an open corporate culture.
2

S2 grade employee training

LHTJ

Young employee training
for year 1, 2 and 3 employees

LBTJ

New employee orientation training

LJC

LWTJ

Commontraining
for sales reps

Finance
Optional
trainings

to match their enthusiasm for learning so they can acquire thenecessary competencies. Our communication skills training for

New manager training

Englishlanguage
trainings

Distance learningIT

Online courses

HROpen training…

TAP-1*2

TAP-2
TAP-3
Sponsoring EMBA candidates
Temporary training indifferent business sectors

Intensive English-language training
English communication training
English language(English conversation, TOEIC)
Aimed at supporting talent development

Professional College for Improving Specialist Skills

Basic School

Each division offers its own training opportunities to improve*1 Planned and organized by individual companies/functions*2 Talent Acceleration Program

Professional College * 1

Next-Generation Seminars

specialist knowledge, with the aim of improving the comprehensive
strength and specialist expertise of our business units andfunctional divisions.

3

Next-Generation Seminars to Nurture Future
Company Leaders

Our Talent Acceleration Program (TAP) consists of three
sub-programs, and is designed to help employees foster
management skills, a managerial mindset, and an entrepreneurial
mindset, all from an early stage. We also offer an overseas MBA
study program to help employees with managerial experienceacquire management skills and develop an international outlook.

Training and Education Support Programs Conducted in FYE2019
Item

Training Summary

Participants

New employee training

Basic training for employees newly entering the company

Corporate position-specific training

Training to develop skills and capabilities required at each position level

Talent Acceleration Program (TAP)

Training to nurture next-generation management personnel

120Management training

Training for employees being promoted to management positions

283

Division training

Training in each division to develop skills and capabilities respectively required for productdevelopment, production, sales, and other lines of work

440
2,242

10,944*LIXIL Corporation only. Talent Acceleration Program (TAP) covers LIXIL Corporation and its subsidiaries

LIXIL Group Corporate Responsibility Report 201939

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance
Our People > Talent Development

04
OUR PEOPLE

Our People
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

Offering Diverse Educational Programs

Career Development Support

LIXIL Corporation prepares a variety of education programs to

LIXIL Corporation’s career-support training programs,

help support employee self-motivated learning. This year, westarted in FYE2017, are developed for all managers based

have refreshed our internal education website to ensure allon the understanding that the best supporters for realizing

information on education and training opportunities is displayed

employees’ career ambitions are their managers. The

in one place, so that individual employees can more easily grasp

programs provide managers the right mindset and skills

what education and training opportunities are available to them.

for helping staff develop their careers, as well as for solving

LWT Americas offers a comprehensive LWTA University

daily management concerns. In addition, we support bothtraining program to satisfy a diverse range of employee needs.

individual and organizational growth through our open-

In addition to group lectures, the program uses multiple

recruitment job posting system for specific positions. This seeks

resources such as webinars, videos, and electronic books

to improve the movement of company-wide personnel and toto prepare a wide selection of courses, ranging from generalensure the optimum placement of employees in order to matchcourses on fundamental business skills such as leadershipthe needs of specific departments with employee ambitions.

and management, through to specialized courses in specificfields such as compliance, environment, occupational healthand safety, and product knowledge. LWT EMENA is focused

Evaluation Frameworkon expanding its e-learning programs so that employees across

To ensure growth and positive results are fairly rewarded,

a wide geographical area can take lectures. Employees canemployees of all major LIXIL Group companies review theirchoose from online learning programs on various topics fromperformance against their goals with their direct manager,

product-related knowledge, leadership, to compliance.

and are evaluated by at least two managers at the end of

Performance Evaluation Flow

Conducted at
the start of eachhalf-year period

Name of Company

LIXIL Corporation
LIXIL Group

Training Hours

23.1 hours ★
(Includes online)

11.2 hours(Includes online)* Scope: Directly hired employees only

Training
Costs

80,218 Yen ★
156,556 Yen

At LIXIL Corporation, all employees assess their own
achievements against objectives set at the beginning of the fiscal

Agreement on theme and objectives

Self-assessment

Conducted after
the conclusionof each half-year
periodInitial

Initial performance review interview
Initial performance review meeting
Initial performance review

SecondSecond performance review meeting
Second performance review

Third

Third performance review meeting
Third performance review

Determination of final review rating

Assessment feedback

each fiscal year.

Annual Training Hours and Costs per Employee (FYE2019)

Draft theme and objectives

FYE2019 human resource performance data indicated with ★ havereceived an independent practitioner’s assurance.

year, and receive feedback from their managers in interviews
based on their final performance evaluation results. We seek

CR

Scope and details (P105)

to nurture our employees by reviewing their performance andcommunicating what we expect from them every half year. To
secure fair evaluations, we provide managers with key points
to consider and guidance on what approach to take inthe evaluation process through the Personnel Evaluation
System Manual and position-specific training programs.

LIXIL Group Corporate Responsibility Report 201940

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Our People > Occupational Health & Safety

04
OUR PEOPLE

Our People
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development

OCCUPATIONAL HEALTH & SAFETY
The LIXIL Group has built a Group-wide occupational health and safety management system to protect all employees, and is working to expand its scope.

Our Approach

Efforts to Eradicate Work-Related Accidents

The LIXIL Group, in our Group Charter of Corporate

The LIXIL Group seeks to actively prevent work-related

Behavior, commits to “promoting the mental and physicalaccidents by ensuring all employees follow establishedwell-being of all workers by prioritizing safety to realize

safety rules and anticipate dangers at work. That means

an ideal working environment without any work-related

pinpointing and eradicating any dangerous elements

accidents.” To this aim, we have introduced an occupational

relating to machinery, facilities, or unsafe action by workers,

health and safety management system and implemented aand sharing best-practice examples to avoid work-related

PDCA approach to help prevent accidents at work. We areaccidents. To prevent reoccurrence, we compare andalso promoting health management.

analyze any similarities between accidents that do occur,and instigate improvements. LIXIL Corporation also provides

Occupational Health & Safety

Our System

practical training sessions (Anzen Dojo) in which staff from Japanand overseas can experience simulations of past accidents.

The Group EHS Committee, chaired by the Group’s
executive officer, sets common employee health and safety

A forklift safety competition

policies and core EHS rules and promotes EHS-related
activities across the Group. Based on the determined

LIXIL Water Technology (LWT) shares and extends bestpolicies and rules, Group-wide EHS management systems

practices from each region to help promote further progress.

are built, and their applicable scope is extended.

For instance, LWT EMENA and LWT Americas attached

We also have a Health and Safety Committee in each

spotlights to the back of their forklifts to help prevent

business segment, which shares information on andcollisions and extend this to other regions for company-wide

discusses health and safety issues to help generate

improvement.

continuous improvements.

Training session Anzen Dojo

LIXIL Housing Technology (LHT) Japan holds conferencesthat bring together safety managers from all of its 27

PDF

LIXIL

Group Occupational Healthand Safety Principles (41KB)

LIXIL’s logistics departments held a forklift safety

facilities in order to share safety policy targets and importantcompetition to raise safety awareness and promote safe

directives. In 2019, this has involved workshops to instill

operation of the vehicles in workplaces where they are used.

commitment to the “Stop, Call, Wait” approach to theTwenty employees from around Japan vied to outdo eachhandling of irregular events, which is one of our priority

other in written tests, pre-operation checks, and driving

issues, as well as efforts to share best practices from otherperformance through the forklift course.

factories.

LIXIL Group Corporate Responsibility Report 201941

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Our People > Occupational Health & Safety

04
OUR PEOPLE

The Occurrence of Work-Related Accidents
Severity Rate and Lost Time Injuries Frequency Rate ★
（LTIFR）(Severity Rate)

0.60

0.12
0.52

0.50

Our People

0.46

0.40

Rewarding Workplaces
Talent Development
Occupational Health & Safety

0.06

0.33

0.04

0.15
0.021

0.10

0.019

0.014

0.002

0.012

0.013

FYE2016

FYE2017

FYE2018

To implement these initiatives, we have established an
employee health support framework through which company

The LIXIL Group promotes sound health management

nurses facilitate collaboration between occupational

because we believe it is important to ensure every one ofphysicians and relevant departments.

our employees is physically and mentally healthy if we are tobuild an enthusiastic, vigorous workplace.
We set up the LIXIL WELLNESS project in 2015 incooperation with the LIXIL Health Insurance Society in order touse joint corporate and health union resources to promote and

0.26

0.20

0

0.08

0.31

0.30

Diversity & Equal Opportunity

0.10

0.54

Driving Health Management

support steady employee health. The project focuses are to:

0.02

0.007

0

• Improve awareness of health issues and the importance ofself-management among all employees.

FYE2019

LTIFR*1 (Directly and indirectly employed staff [left])
LTIFR (Contractors [left])
Severity Rate*2 (Directly and indirectly employed staff [right])
Severity Rate (Contractors [right])• Provide many employees with opportunities to prevent
illness and promote good health.
• Establish health-conscious, comfortable working environments.

OIFR*3 ★
FYE2016

FYE2017

FYE2018

FYE2019

-

0

0

0

*1 Lost Time Injuries Frequency Rate: Number of lost-day occupational injury cases /Directlyand indirectly
Total working
hours × 1,000,0000000employedstaffTotal days lost due to occupational accidents / Total working hours ×*2
Severity Rate:
1,000 (Total days lost due to occupational accidents = actual days absent from work)

Contractors

Scope: FYE2016 covers directly employed staff at production and non-production basesin Japan.
FYE2017 and FYE2018 cover directly and indirectly employed staff andcontractors at production and non-production bases in Japan and a majority of
FYE2016 FYE2017 FYE2018 FYE2019
overseas production bases.

「LIXIL WELLNESS（ウェルネス）」とは、LIXIL（会社）と LIXIL 健

Number of Work-Related Fatalities ★
0

0

0

1

Contractors

-

0

0

0

Scope: F YE2016 covers directly employed staff at production and non-production
bases in Japan. FYE2017, FYE2018 and FYE2019 cover directly and indirectly
employed staff and contractors at production and non-production bases inJapan and production bases outside Japan (excluding some bases)* Excludes Permasteelisa Group and LIXIL VIVA Corporation*1 L ost Time Injuries Frequency Rate (LTIFR): Number of lost-day occupational injury
cases / Total working hours × 1,000,000*2 S everity rate: Total days lost due to occupational accidents / Total working hours ×
1,000 (Total days lost due to occupational accidents = actual days absent from work)*3 O ccupational Illness Frequency Rate (OIFR): Number of lost-day occupational
illness cases / Total working hours × 1,000,000● Employees

Workplace

康保険組合がみなさんの健康の為に連携を強化し、相互に資源や強みを活用する LIXIL 流の“コラボヘルス”を指します。
「LIXIL WELLNESS」を推進することにより、みなさん一人ひとりが保健師

Directly and indirectly
employed staff● Supervisors

これまで以上にいきいきと健やかに毎日を過ごせることを目指します。
このパンフレットでは、「LIXIL WELLNESS」について、皆さんに“知ってもらいたいこと”、“協力して欲しいこと”をお伝えします。

Brochure of LIXIL WELLNESS● Occupational

physicians● Relevent

departments● Company

nurses● Health

Insurance
Society

LIXIL WELLNESS health support framework

LIXIL Group Corporate Responsibility Report 201942

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Our People > Occupational Health & Safety

04
OUR PEOPLE

Our People
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

Illness-Prevention Initiatives

Health Education Program

Annual Medical Checkups

We create programs tailored to specific audiences (newdevelop their own exercise routines, drawing some 2,000

hires, supervisors, etc.), through which company nurses

participants each time.

encourage exercise. Since 2016, we have held our biannual
LIXIL Walking Rally as a way to encourage employees to

All employees undergo annual medical checkups, andprovide information on topics such as mental health, diseaseoccupational physicians determine whether individual

prevention, and improvement of health-related lifestyle

yearly health promotion campaign, which is designed to

employees require arrangements specific to their jobs. In

factors. In FYE2019, we held a total of 58 sessions with 1,540

encourage healthy living through six separate courses

addition, employees who exhibit health risks are encouraged

participants. In particular, we ensure all newly appointed

including no smoking, regular exercise routines, and dieting.

to visit a medical institution in order to ensure early detection

managers receive training on mental health management, asand treatment of any diagnosed illness. We are especiallypart of efforts to create work environments that facilitate therigorous in encouraging employees with high health risks toearly detection and treatment of mental health issues.

visit medical specialists, so we can enable them to continue

We also work together with the LIXIL Health Insurance

We also run the LIXIL Health Insurance Society’s twice-

Supporting Return to WorkWe support employees’ return to work following sickness

working in a healthy and safe manner without exacerbatingSociety to arrange health seminars given by externalabsence based on our Return to Work Program. From caretheir symptoms. The LIXIL Health Insurance Society covers

lecturers on topics selected to suit the needs of individual

during absence to follow-up support after return, relevant

basic medical examination fees for both employees and theirworkplaces or job types. In FYE2019, we held 35 seminars

departments, supervisors, occupational physicians anddependents.

on six chosen topics relating to the building of sound mental

company nurses align with each other to provide support

and physical health.

suited for individual mental and physical conditions.

Mental Health Measures

New Helplines
We conduct annual stress checks as part of our mental
health support, with a participation rate of 94.5% in

LIXIL Corporation has established a helpline offering mental

FYE2019. Employees suffering from high stress levels are

and physical health advice through which employees canreferred to occupational physicians for private consultation.

receive specific individual advice and specialist support from

Any workplace with ten or more respondents that has been

company nurses via email or telephone.

identified as being high-stress is required to create an action

The LIXIL Health Insurance Society has set up its own

plan sheet to resolve the underlying causes.
We are also strengthening our mental health support

mental and physical health support line where employees
Health seminar given by an external lecturer

system by allocating occupational psychiatrists in multiple
Japanese bases to facilitate a more targeted specialist

can seek advice via telephone, web or face-to-face interview
from external doctors and public health nurses not only

Health Promotion Events

approach.

about health and medical treatment, but also about childraising and nursing care.

Given the importance of daily efforts to maintain health,
we work with the LIXIL Health Insurance Society to actively

LIXIL Group Corporate Responsibility Report 201943

Commitment

Management and Material Issues

Our People

Strategic Pillars

Environment

Customers & Supply Chain

Society

ESG Performance

Our People > Occupational Health & Safety

04
OUR PEOPLE

Our People
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development

METI Health and Productivity Certification

Overseas Cases

For three consecutive years since 2017, the LIXIL GroupTo introduce a few of our international well-being promotion

has received White 500 (large enterprise) Health andactivities, LWT & LHT Asia (LIXIL Thailand) created exercise

Productivity certification from Japan’s Ministry of Economy,clubs designed to relieve stress and improve health

Trade and Industry. This certification recognizes LIXIL’s

awareness that all employees can attend after work. The

health maintenance and improvement measures, including

multiple clubs, ranging from badminton to futsal, attract overmental health education, exercise promotion, and initiatives

1,200 participants in total. LWT & LHT Asia (LWT China) also

to prevent exacerbation of lifestyle diseases and otherholds a biweekly health promotion club to help relieve work-

illnesses. In 2019, LIXIL VIVA CORPORATION was also

related pressure.

certified under the same program.

LWT & LHT Asia (LIXIL Thailand) exercise club in action

FYE2019 human resource performance data indicated with ★ havereceived an independent practitioner’s assurance.

Occupational Health & Safety
CR

Scope and details (P105)

KENKO Kigyo Kai Participation
Maintaining and improving health is a challenge for all

LWT & LHT Asia (LIXIL China) health club puts on a show

workers, extending beyond the activities of any individualcompany. The LIXIL Group is part of KENKO Kigyo Kai,an organization that seeks to improve the effectiveness ofhealth promotion activities by sharing and utilizing healthmanagement expertise. We hope this association willdevelop into a group of leading companies in the healthpromotion sphere, and, by extension, set a strong example
for broadening health management in our society at large.

LIXIL Group Corporate Responsibility Report 201944

Commitment

05
ENVIRONMENTManagement and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ENVIRONMENT
We proactively pursue environmentally conscious initiatives across allof our processes based on our earnest desire to help people coexist inharmony with our planet.

Environment
Environmental Management
Climate Change Mitigation
and Adaptation
Sustainable Water Use
Sustainable Use of Resources

LIXIL Group Corporate Responsibility Report 201945

Commitment

Management and Material Issues

Strategic Pillars

Environment

Our People

Customers & Supply Chain

Society

ESG Performance
Environment > Highlight05

Highlight
TargetHelp realize a sustainable society through innovative products and services and environmental considerations across all operational processes.

ENVIRONMENT
CO2 emissions reduction attributable toGroup products and services

1.36

TargetEnvironmenttimes

CO2 emissions
from places ofbusiness (Scope 1 and 2)(Thousand t-CO2)
2,000

Emission intensity
per unit of output
Target-8%(v. FYE2016)

-0.1
-4.5

(v. FYE2016)

Climate Change Mitigation
and Adaptation
Sustainable Water Use
Sustainable Use of Resources(Times)
1.5

1.0

1.00

1.36

1.21

1.16

1,200
800

0.5

1,146

1,185

618

600

616

1,055

581

569

552

502

FYE2019

FYE2016

FYE2021(Target)FYE2018■ Scope 1 ■ Scope 2

Scope 3 emissions

Water usage(Million t-CO2)
140(Million m3)
20

121
105

5

117
5

70

94

95

95

63

61

62

66

75

25

19

0

FYE2021(Target)FYE2017

Emission intensity per unit of output

FYE2018

Japan and Europe

112

109

35

16.8

18.1

16.9

15

16.7

FYE2017

FYE2018

FYE2019■ Category 11 (Use of sold products) ■ Other
Scope of coverage: Data covers a majority of the entire GroupFYE2021(Target)Asia (excluding Japan)

423
13.9

North America

147

10

250

5

125

0

0

FYE2017

FYE2018

FYE2019■ Intake ■ Discharge
Scope of coverage: Data covers a majority of the entire Group* Excludes tenanted properties, etc. that we can’t access to assess the water intake

FYE2017

405

406

375

140
0

FYE2019

Waste and other emissions

136
116

40

34
25

(Thousand t)
500

18.0

114
5

FYE2019

94

50

-50

0

FYE2018

(％)
100

-20

-40

546

FYE2016

(%)
0

-30

400

0

(In Japan and Europe)

-10

1,199

95%

Target

-8.0

1,600

Environmental Management

Waste recycling ratio

139

142

125

FYE2018

118

161

126

FYE2019■ Sold as valuables ■ Recycled outside the Group■ Landfilled and incinerated
Scope of coverage: Data covers a majority of the entire Group

LIXIL Group Corporate Responsibility Report 201946

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Environment > Environmental Management05
ENVIRONMENT

Environment
Environmental Management
Climate Change Mitigation
and Adaptation
Sustainable Water Use
Sustainable Use of Resources

ENVIRONMENTAL MANAGEMENT
In order to achieve our Environmental Vision 2030, the LIXIL Group is developing and operatinga Group-wide Environment, Occupational Health and Safety (EHS) management system.

Our Approach

Our System

In 2016, the LIXIL Group announced its Environmental

In order to promote Group-wide EHS activities, the Group

Vision 2030 medium to long-term targets, and established

EHS Committee was established under senior managing

the LIXIL Group Environmental Sustainability Principles to

executive officers. The Quality and EHS departments fordefine our environmental philosophy and code of conduct.

the LIXIL Group and LIXIL Corporation serve as Committee

By 2030, we aim to achieve an overall net zero balancesecretariats, overseeing all our business organizations,

between the environmental footprint of our business andhead office departments, and consolidated subsidiaries.

the positive environmental contribution we make through

The Group EHS Committee enlists the cooperation of thetechnological innovations and the development of low-

LIXIL Group Executive Officers Committee, LIXIL Corporation

carbon, water-saving products and services. We are now also

Board of Directors, the Internal Audit Committee, the Risk

developing a long-term vision that envisages how by 2050

Management Committee, and the CR Committee for its

LIXIL Group will contribute to solving the increasingly serious

activities. These activities focus primarily on establishing aenvironmental issues that we have witnessed in recent years.

Group-wide EHS management system, including promoting

We aim to announce this strategy in FYE2020.

environmental strategies, organizing effective management

To achieve our Environmental Vision, it is vital that we
operate an effective environment management system
and work to reduce the environmental impact of our entire

Group EHS Committee

structures and reporting lines, and sharing and expandingorganizational and regional measures.
The Group EHS Committee holds a regular meeting

supply chain, from raw materials procurement throughonce a year, which is attended by Group senior managing

product disposal. In 2016, we started operating under our

executive officers supervising EHS activities, and employees

newly established EHS Performance Reporting Guidelines

responsible for EHS from individual business organizations.

to help strengthen Group-wide target management andAt the meeting, participants confirm the Group’s EHS policy,

monitoring systems. We are looking to actively reduce

strategy, and emergency response process, which they thenour environmental impact across the Group by extending

share and implement in each of their individual jurisdictions

activities implemented primarily in Japan to all global

as a means of strengthening corporate governance andoperations.

improving performance.

Internal TCFD study session during the second part of the EHS Committee meeting

At the end of each business year, Committee members meetfor a management review session where they look back on thepast year’s activities, formulate plans for the coming business year,
and revise the company’s overall vision and medium-term targets.

LIXIL Group Corporate Responsibility Report 201947

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Environment > Environmental Management05
ENVIRONMENT

Environmental Sustainability Principles

External and Internal Audit

Environmental Education and Internal Evaluation

Philosophy

The LIXIL Group operates an internal audit system

We strive to inform and educate employees at different

covering the entire Group. Its manufacturing factories

levels of the company about environmental initiatives. The

Striving to help people live in harmony with the earth, LIXIL

conduct internal audits in strict accordance with ISO14001

company conducts environmental training for new recruits,Group is committed to continuing its environmentally soundstandards and check the effectiveness and compliance ofprovides Environmental Management System (EMS) training

Environmental Management

efforts in every aspect of our businesses activities.

environmental management systems. With regard to non-for EMS promotion managers and operators in each office,Climate Change Mitigation
and Adaptation

manufacturing divisions and Group operating companies,

and distributes monthly reports on environmental trends

Code of Conducts

we perform internal audits based on the standards set in our

to top management, including directors, auditors, and theown environmental management system and are graduallyCEOs of technology businesses.

Environment

Sustainable Water Use
Sustainable Use of Resources• Continually improve environmental management systems

expanding the scope to include Group subsidiaries. We

In addition, we evaluate and award environmental activities

work to ensure the effective operation of our management

at each business site. We also encourage managers to promote• Adhere to rigorous compliancesystem by following up on all audit points and confirming

environmental activities through a new system introduced in• Develop and provide environmentally sound products andthe implementation of improvements. From FYE2018,2018 as part of our executive compensation system review.

LIXIL Group’s EHS Management Division started auditing

Under this system, we evaluate how senior managers seek to

employees responsible for EHS in all business organizations.

help raise medium to long-term corporate value.

and performanceservices• Reduce environmental impact in every process of thebusiness operation• Proactively communicate with all stakeholders

Furthermore, our 13 manufacturing sites in North
America (eight sites in the US, one site in Canada, andfour sites in Mexico) are progressing with plans to formally

PDF

LIXIL Group Environmental Sustainability Principles (50KB)

acquire ISO14001 certification by FYE2020 with the aim ofstrengthening Group-wide environmental governance.

Environmental education for new hires

LIXIL Group Corporate Responsibility Report 201948

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Environment > Environmental Management05
ENVIRONMENT

Environmentally Conscious Design
LIXIL Corporation conducts an environmental assessment

Environmental Disclosures
Product-Related Environmental Assessment Stepsat each stage of the product development process to help
reduce the environmental impact of products in all three

Environment

We are establishing systems to assist environmental
management decision-making by appropriately evaluating

Product planninglifecycle stages: produce, use, dispose.

Set environmental targets for new
products to be developedrisks and opportunities and clearly understanding thefinancial impact of the effects of climate change on our
future business operations. Our head office environment

Designing and testing

Environmental Management

Compare each evaluation criteria
against standards and existing products

department provides information to senior managers derived
from various analyses regarding the calculated financial
impact of CO2 emissions on the Group, which are based

Climate Change Mitigation
and Adaptation

Final confirmation

Final check of strong selling points

on national carbon taxes, carbon prices in the emissions
trading market, forecasts of energy prices, the potential cost-

Sustainable Water Use
Sustainable Use of Resources

Eco product marketing

Showcase selling points in catalogs
and other marketing materials using
eco labels and graphssaving benefits to be derived from capital investment andenvironmental measures, etc. In order to further promote
environmental investment, calculating the CO2 reductionof equipment investments is required for processing any

Evaluation Criteria for Product-Related Environmental Assesment

request for approval (RFA) of investment.
Stage

Items to be considered

Eco product features

In March 2019, the LIXIL Group announced its support
for the Task Force on Climate-related Financial Disclosures

Reducing major component materials and parts

Resource-saving

Additional reductions from using recycled materials

Recycled material use

Efficient assembly and construction

Construction-saving

will continue to help solve social issues through our business

Using lawful, sustainable wooden materials

Lawfully logged wood

activities, and work to further enhance our information

Reducing energy and water usage in everyday living

Energy- and water-saving

Improving performance using natural energy and zero energy use

Energy-creating / zero energy

Ease of maintenance and cleaning

Dirt-proofing, easy cleaninginternational non-profit CDP. We were recognized as an A List

Responding to sick-house countermeasures

F ☆☆☆☆ , etc.*

company in the CDP Water Security 2018 for our outstanding

Material recyclability of main component materials and parts

Recyclable design

Reusability of main component materials and parts

Reusable

Produce

Use(TCFD), and reorganized its existing information underrecommended TCFD disclosure items. Going forward, we

disclosure that will enable us to build a stronger relationshipof trust with our stakeholders.
We also participate in the survey conducted by anwater resource management initiatives.

Dispose* F☆☆☆☆ (four-star) is the highest rating in the formaldehyde emissions level rating scheme

CR

TCFD Index (P121)WEB

Details about the CDP

LIXIL Group Corporate Responsibility Report 201949

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Environment > Climate Change Mitigation and Adaptation

05
ENVIRONMENT

Environment
Environmental Management
Climate Change Mitigation
and Adaptation
Sustainable Water Use
Sustainable Use of Resources

CLIMATE CHANGE MITIGATION AND ADAPTATIONThe LIXIL Group provides products and services that can help achieve a carbon-neutral future, while actively reducing carbon footprint in its operational processes.

Products & Services: Conserving Energy
and Reducing Greenhouse Gas Emissions
LW (TOSTEM)

The LIXIL Group develops and retails products and services that help reduce energy consumption through thermal insulation,energy conservation, energy creation, and other measures. We intend to help mitigate and adapt to climate change by improving
performance and expanding the reach of these products and services.

RE-PLUS (TOSTEM)

Ecoful Shower (INAX)

Introduced in 2018, LW is an innovative window product

While the level of thermal insulation of windows in newly

Heating water constitutes 24% of household CO2 emissions.

consisting of a large glass door that slides open sideways

built houses meets Japan’s 2020 energy-saving standards

Reducing the amount of hot water used, therefore, is an

and a built-in frame that is almost invisible from inside

thanks to ZEH (net zero energy house) promotion activities

effective way to reduce emissions. The impeller built into thethe house. This product offers high thermal insulation

driven by the Japanese government, this is not necessarily

Ecoful Shower’s showerhead is designed to close off half of(heat transmission coefficient 1.00W/(m2K))* through its

the case for windows in existing houses. RE-PLUS is a window

the showerhead’s holes whilealuminum and resin hybrid frame, which helps reduce CO2

product that enables existing windows to be replaced withspinning at a high speed.

emissions and energy consumption from heating and airan aluminum-resin hybrid model in as little as 60 minutes*

As a result, the increased

conditioning. The built-in frame provides a clear, wide viewusing existing window frames. Since introducing this product,

internal pressure createsand is designed to perfectly fit the lines of the window frame.

we have expanded the range of windows that can be upgradeda powerful shower spray

LW won the Nikkei

by complementing the sliding-door window frame launcheddespite using considerably

Sangyo Shimbun

in 2017 with a new frame for decorative windows in 2018. We

less water. In fact, thisAward of Excellence

are now also trying to improve the level of thermal insulation of

showerhead can reduce theat the 2018 Nikkei

windows in current housing by extending the scope of windows

amount of water used bySuperior Productsthat can be upgraded, from sliding doors most commonly found

48% compared to traditionaland Services Awards,

in living rooms and bedrooms to a wider range of windows.

shower heads (10 liters/minute),

along with the* Regular-sized pane
replacement takes
at least 60 minutes,
and terrace
window-sized pane
replacement takes
at least 90 minutes

thereby saving energy.

2019 Construction
Materials andFacilities Grand Prize.
LW installed room

Built-in frame design

WEB

About the product (Japanese only)* Calculated internally using JIS A 2102-1 and JIS A 2102-2 standards formeasuring the two-way thermal transmittance of Low-E green (5-10-1.311-5) model of sliding 16522 triple-pane glass (with krypton gas)
Replacement image

WEB

About the product (Japanese only)WEB

Cross-section
image

About the product (Japanese only)

LIXIL Group Corporate Responsibility Report 201950

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Environment > Climate Change Mitigation and Adaptation

05
ENVIRONMENT

Environment
Environmental Management
Climate Change Mitigation
and Adaptation
Sustainable Water Use
Sustainable Use of Resources

Automatic Heating Faucet (INAX)

IoT-Enabled Smart Post Delivery Box (LIXIL)

Promoting the Construction of
Net Zero Energy House (LTSP)

INAX’s Automatic Heating Faucet for public restrooms will

The growth of online shopping in recent years has increased

instantly heat water to 26°C when the temperature of thethe number of home deliveries. However, due to the growing

To help reduce household energy consumption, the Japanesewater dips below the 21 to 26°C range, which is considered

number of redeliveries as well, this is cited as reducing labor

government has set a target requiring over 50% of new

comfortable for washing hands. This faucet also incorporates

productivity and increasing CO2 emissions. LIXIL launchedhouses built by 2020 to qualify as net zero energy houses

our Ecoful feature, releasing the minimum amount of waterits IoT-enabled Smart Post Delivery Box in 2018, which(ZEH)*. ZEH are not expanding at the desired pace, though.

required for users to feel that they have cleaned theirenables two-way communication between the box and a

To help address this situation, LIXIL Corporation and TEPCO

hands properly. This new method of ensuring the optimum

smartphone, sending notification of deliveries and enabling

Energy Partner established a joint venture company, LIXIL

temperature and volume of water for washing hands has

users to accept multiple separate deliveries. We are currently

TEPCO Smart Partners, in September 2017. The company

successfully reduced energy use by 92% compared to

conducting a demonstration experiment on how much thisleases solar-power generation systems to customers who

traditional electric water heaters. As a result of its simple

product can reduce CO2 emissions in the Tokyo districts ofpurchase LIXIL’s ZEH materials, and receives income fromdesign and eco-friendly approach, the faucet won the top

Koto and Edogawa.

any surplus energy sold. In return, the actual cost customers

award for excellence at the Environment and Equipment

pay each month for their solar power generation systems

Design Awards hosted by the Association of Building

is zero yen. LIXIL’s new Tatetoku Value service, which wasEngineering and Equipment.

launched in 2018 to help reduce customers’ monthly
electricity bills, won the Agency for Natural Resources andEnergy Director-General’s Award at the FYE 2019 Energy
Conservation Awards. LIXIL intends to use these services topromote the spread of ZEH, help customers live comfortably
and healthily, and help mitigate global warming.
Solar power generation system

Effective
cost:

Customer

0yen
Income from surplus energy sales

WEB

About the product (Japanese only)WEB

About the product (Japanese only)WEB* ZEH is an abbreviation for
Net Zero Energy House. The
term refers to housing thatoffers both a comfortableinterior environment and asubstantial reduction in energy
consumption, thanks to its highdegree of insulation and highefficiency facilities. Moreover,it produces energy throughsolar power generation systems
and other equipment, and theyearly net amount of energy
consumption is basically zeroor lower as a result

About the product (Japanese only)

LIXIL Group Corporate Responsibility Report 201951

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Environment > Climate Change Mitigation and Adaptation

05
ENVIRONMENT

Promoting Energy Creation and Saving
Each business sets targets and action plans in line with our
medium-term goals. Based on these, we are implementing
various initiatives to help mitigate climate change by

Environment

reducing the net amount of energy consumed in our entire
supply chain. These include activities aimed at saving or
creating energy.

Environmental Management
Climate Change Mitigation
and Adaptation
Sustainable Water Use
Sustainable Use of Resources

Increasing Energy Efficiency
The new GROHE Klaeng factory in Thailand was constructed
to be environmentally friendly. This building integrates highly
efficient equipment within its production processes and uses asolar power generation system installed on the roof to reduce
factory CO2 emissions by approximately 700 tons per year.

LIXIL Chita plant in JapanGROHE Lahr plant in Germany

Using Renewable Energy

two electroplating lines and can supply up to 30% of the

Despite a 20% year-on-year increase in production volume
in FYE2018, LIXIL Corporation’s Ariake factory in Kyushu,
Japan managed to equalize daytime and nighttime electric

plant’s demand for electricity. In addition to improving overall

power usage by reviewing the operational framework of its

LIXIL Corporation is contributing to the creation andenergy efficiency, it also enables the plant to reduce CO2materials department. This initiative successfully reduced

spread of renewable energy by operating large-scale

emissions by 2,550 tons per year.

the factory’s CO2 emission intensity by 6%. Subsequently

solar power generation facilities in unused spaces andin FYE2019, all functional departments worked together toon roofs of buildings at seven bases in Japan. The seven2015 has reduced the plant’s electricity consumption byincrease the frequency of inspections, which enabled thembases generate approximately 32,600 MWh of energy

15% by using recovered heat, reducing CO2 emissions by

to analyze power consumption patterns and implement

per year, equivalent to the annual energy consumption of

2,200 tons per year.

measures to adjust energy usage at the initial production

approximately 6,500 standard households in Japan.

planning stage. These new measures helped reduce theAt the GROHE Hemer Plant, a CHP unit introduced in

All GROHE plants and distribution centers around theworld were successfully certified according to ISO50001

Energy Savings at Manufacturing Sites

Energy Management Systems by the end of 2016.

factories and logistics centers with LED lighting. We developed

In July 2016, the GROHE Lahr Plant in Germany introduced* A power generation system that uses a heat recovery unit to capture
waste heat and turn it into thermal energy

a plan to make a full transition to LED at all factories in Japana new combined heat and power (CHP) unit* to replaceby 2020, and have already achieved nearly 90% of the plan.

two inefficient boilers. The new CHP unit provides heat forfactory’s CO2 emission intensity by a further 3%.
We are also replacing existing lighting at LIXIL Corporation’s

LIXIL Group Corporate Responsibility Report 201952

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Environment > Sustainable Water Use

05
ENVIRONMENTSUSTAINABLE WATER USE
The LIXIL Group aims to develop and offer products and services that help reduce water consumption and solve kitchen and bathroom-related problems, as well as promote
the conservation and sustainable use of water resources in its own business processes.

Enhancing the Water-Saving Features in
Products and Services

We aim to contribute to the conservation of water resources by developing and offering products and services that can reducewater consumption, such as water-efficient toilets and faucets. We are also committed to adding extra value to water resources bydeveloping innovative technologies in various areas including water purification and circulation.

Environment
SATIS (INAX)

Water Saving Toilets (American Standard)

GROHE SENSE GUARD (GROHE)

Environmental Management
Climate Change Mitigation
and Adaptation
Sustainable Water Use
Sustainable Use of Resources

The SATIS toilet, with its strong cleaning performance andAmerican Standard offers a wide range of toilets that meet

According to a survey of European households conducted bywater-saving functionality, can save up to 73% of water usedstrict criteria for water savings established by the U.S.

GROHE in 2017, 54% of households have experienced somecompared to conventional toilets that use 13 liters of water

Environmental Protection Agency’s WaterSense program,form of water damage such as those caused by water leakage.

for each long flush. It is also possible to reduce the amountand save nearly 20% more water than the standard criteria

In response, GROHE developed the remote-controllable GROHE

of water used for cleaning the toilet thanks to the AQUA

set by the governmental organization. We seek to enhance

SENSE GUARD. Used together with a smartphone app, it

CERAMIC sanitary ware material that enables dirt to be easily

the variety of products to match consumers’ tastes,

notifies users in the event of a burst pipe and automaticallywashed away with just water and will stay shiny for 100 years.

including Cadet PRO, a quality toilet at an affordable

shuts off the water supply to minimize damage.

price, VorMax
UHET, an Ultra High
Efficiency Toilet, andLyndon, a popular
contemporary-style
toilet. The bowl
height of these toilets
also conforms to theaccessibility height
guidelines as outlinedby the Americans with
SATIS

WEB

AQUA CERAMIC

About the product (Japanese only)

Disability Act of 1990.
WEB

About the product

VorMax UHET Elongated Toilet

WEB

About the product

LIXIL Group Corporate Responsibility Report 201953

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Environment > Sustainable Water Use

05
ENVIRONMENT

Environment
Environmental Management
Climate Change Mitigation
and Adaptation

Navish Hands-Free Faucet
Equipped with the Eco Sensor (INAX)

Beale MeasureFill Touch Pull-Down Kitchen
Faucet (American Standard)

GROHE Blue (GROHE)

LIXIL’s Navish hands-free faucet uses the automatic

American Standard’s Beale MeasureFill Touch Pull-Down

Using a specialized filter cartridge, the GROHE Blue

Eco Sensor to detect the presence of hands and other

Kitchen Faucet features an in-built measuring function

household water system dispenses chilled or carbonatedobjects, enabling water to be dispensed and stopped

capable of dispensing exact volumes of water up to 1.2

water from the kitchen faucet. It can also chill room-

without touching the faucet. The faucet equipped with theliters. Setting the dial to the quantity required for cooking,temperature water to a desired temperature. Given that as

Eco Sensor function also separates hot and cold water,

users can save water by ensuring not a drop is wasted. This

much as seven liters are required to produce a single liter of

preventing unintended use of hot water and energy. Users

product won the 2018 Red Dot Award for Product Design.

bottled drinking water, GROHE Blue also contributes to thecan save approximately 52% energy and 31% water

conservation of water resources. The system also helps tocompared to conventional faucets.

cut CO2 emissions by 61% compared to bottled water andreduce plastic waste.

Sustainable Water Use
Sustainable Use of Resources

WEB

About the product (Japanese only)WEB

About the product

WEB

About the product

LIXIL Group Corporate Responsibility Report 201954

Commitment

Management and Material Issues

Strategic Pillars

Environment

Our People

Customers & Supply Chain

Society

ESG Performance

Environment > Sustainable Water Use

05
ENVIRONMENT

EnvironmentReducing
Water Usage and Conserving
Water in Business Activities
To help conserve water resources, the LIXIL Group is

Percentage of Production Sites by Water Risk Level

working to further improve the efficient use of water in(FYE2019)

LIXIL Sanitary Fitting Manufacturing (Suzhou) Corporation isits business processes by developing tailored measures for09each production base.The LIXIL Group uses large amounts

1
7

Climate Change Mitigation
and Adaptation
Sustainable Water Use
Sustainable Use of Resourcesa factory in China affiliated with LIXIL Water Technology, which
has made a notable reduction in its water use. In 2015, theof water for aluminum product surface finishing and otherEnvironmental Management

Introducing Wastewater Recycling Systems

processes at its production sites. In order to promote the efficient

11

Total

use of water, we investigate the level of water usage at eachosmosis (RO) membrane filtration system* to filter wastewater

69 sitesfactory, including water intake and water usage in eachprocess, and confirming that water recycling systems are in

generated in production processes such as machining andplating. The filtered water is reused in production processes and41

place. Meanwhile, we are introducing water recycling systems

factory installed wastewater recycling systems with a reverse

water savers in the factory. For example, water consumption perunit weight of products was reduced by approximately 45% in

and other water-saving measures. We also conduct strict
wastewater management to protect water environment in eachregion and maintain water quality.

Identifying Water Risks in Our Production Facilities
In order to better understand local conditions and introduce

37%

appropriate measures to address the problem of increasingly

Water risk Low
1% High
Water Risk Survey Results and Water UsageFYE2017 compared to FYE2015, when the system was not in(FYE2019)

36,927m 3 and US$15,000, respectively.

18%
1%

Total

4%

15,476,000
m

3 37%

scarce global water resources, the LIXIL Group started
conducting surveys in FYE2017 to identify water risks atplace. In FYE2017, fresh water usage and cost were reduced by

Total

Based on its success, similar projects are being rolled
out in other LIXIL faucet factories in Asia. Through engaging

18%

proactively in wastewater recycling and other water-saving

4%

projects, we are expecting to see even more benefits from15,476,000

reductions in freshwater use and related costs.

m3

production sites that use water in their manufacturing

40%

processes. We used international evaluation tools such as* A type of filtration
membrane thatenables water to flow
through while blocking
impurities such as ionsand other molecules

40%

the WWF Water Risk Filter and the WRI Aqueduct to quantify
local characteristics and actual water usage. We are currently
taking measures to improve water usage at the six priority

Water risk

focus sites identified as high risk in FYE2017. Thanks to
improvements made at each site and the increased accuracy

Water risk

Low

Low

High

High

* Targets those production sites that use water in their production
processes (excluding the newly added sites in India and Dominica)

of evaluation tool databases, only one high-risk site remainedout of a total of 69 production sites in FYE2019.

INAX Suzhou factory in China

LIXIL Group Corporate Responsibility Report 201955

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Environment > Sustainable Use of Resources

05
ENVIRONMENTSUSTAINABLE USE OF RESOURCES
The LIXIL Group promotes the sustainable use of raw materials across the entire lifecycle of its products, from procurement through disposal.

Saving and Recycling Resourcesin Products and Services

We develop and offer recyclable products that use less resources by incorporating an eco-friendly approach into planning anddesigning phases of our products and services. We also seek to promote the sustainable use of resources by utilizing underused
resources, recycled materials, and environmentally-friendly materials.

Environment
Products Made with up to 85% Recycled Materials

Wooden Decks Made from 100% Recycled Materials

Committed to Using Recycled Aluminum

GROHE manufacturing plants in Germany, Portugal and

KIRARA STAGE Mokucho is an artificial timber deck with

LIXIL Corporation factories in Japan have been using

Thailand refine alloys in their own melting furnaces, turning

the natural character of wood, made from 100% recycled

recycled aluminum materials for over 25 years. Aluminum,

internally and externally sourced recycled materials into 70-

materials. This range of decks uses medium-density

an exceptional metal that is light, strong and rust-resistant,

85% of the brass used to make faucet fittings.

fiberboard (MDF) wood dust, which is generated from LIXIL’s

requires large amounts of electricity and water in the refining

wood-cutting processes and usually reprocessed as fuel,process. Reusing existing aluminum can therefore lead tomixed with plastic collected and recycled by local authorities.

drastic energy use reductions in manufacturing. However,Environmental Management
Climate Change Mitigation
and Adaptation
Sustainable Water Use
Sustainable Use of Resources

given the low purity of recycled aluminum materials,
maintaining quality and productivity was a challenge.
Through cross-functional efforts, LIXIL Corporation
established supply routes that achieve the industry’s highest
aluminum recycling rates, helping to reduce CO2 emissions
by around 350,000 tons annually.

GROHE Klaeng factory in Thailand

Completed deck image

Cross-section showing the material’s
asymmetric grooves(patented technology)WEB

KIRARA STAGE Mokucho (Japanese only)

Feeding raw materials into the aluminum smelter

LIXIL Group Corporate Responsibility Report 201956

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Environment > Sustainable Use of Resources

05
ENVIRONMENT

Recycling Resourcesin Operational Activities
The LIXIL Group ensures sustainable use of resources

FYE2019, these efforts cut waste at LWT production plants
in Japan by around 18% (4,470 tons).

through various initiatives, including the recycling of waste

Environment

materials produced in its operations. Based on the 3R
principles (Reduce, Reuse, Recycle), LIXIL is committed

Working with Stakeholders to Eliminate
Industrial Landfill Waste

to reducing industrial waste generated from manufacturing
Environmental Management
Climate Change Mitigation
and Adaptation
Sustainable Water Use

processes, collecting and sorting waste, and recycling.

TOSTEM THAI, a LIXIL Corporation subsidiary, has been

Furthermore, during product development, we promote

working with stakeholders to recycle its industrial waste.

initiatives to reduce resource use and simplify construction,

In Thailand, most industrial waste is generally landfilled,design products that can be easily disassembled for

causing environmental problems. With the cooperation ofrecycling, and reuse parts and materials.

the Thai government, we reduced the amount of landfill

Sustainable Use of Resources

by around 90% over four years through initiatives such

Reducing Wood Material Waste

as recycling industrial sludge to produce cement. Alongwith other community activities, including tree planting

Our factory in Dalian, China reduces wood material waste

and garbage collection, this earned TOSTEM THAI a Level

through improved cutting processes and increased yield.

4 rating in the Thai Ministry of Industry’s Green Industry

We also utilize surplus materials generated in the productioncommendation system*. However, with few local companies

process, which were previously disposed of by sale to third

able to comply with new laws and regulations issued eachparties, to manufacture parts. Thanks to these efforts, theyear, finding recycling contractors proved challenging. In

factory managed to reduce the volume of waste wood by

FYE2019, we re-established a viable recycling framework by

1,600 tons year on year in FYE2018.

inspecting such potential contractors, along with guidanceAward ceremony for green industry promoted by Ministry of Industry of Thailand* The green industry commendation system operated by the Thai Ministryof Industry has five achievement levels, and gives a level-specific Green
Industry mark to each company that fulfills the required environmental
activities

and support to incorporate corrective measures, which

Recycling Wood Pallets

allowed us to eliminate our industrial landfill waste in
Thailand from March 2019. These efforts were rewarded

Presented with the challenge of recycling and utilizing woodwith the Thai Ministry of Industry’s 3Rs Award and the Zerooffcuts, our Oyama factory has succeeded in selling its waste

Waste to Landfill Award. We are now working towards our goals

pallets as biomass fuel. Expanding the initiative to otherof maintaining zero landfill waste in FYE2020 and achieving

factories in the region and coordinating transport among

Level 5 in the Green Industry commendation system.

multiple bases has contributed to reducing both wood offcut
waste and the environmental impact of distribution. In

LIXIL Group Corporate Responsibility Report 201957

Commitment

06

CUSTOMERS &SUPPLY CHAINManagement and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

CUSTOMERS & SUPPLY CHAIN
We are committed to delivering customer-focused products andservices and promoting responsible supply chain management.

Customers & Supply Chain
Responsible Supply Chain
Management
Product Safety & Quality
Customer Satisfaction

LIXIL Group Corporate Responsibility Report 201958

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Customers & Supply Chain > Highlight

06

CUSTOMERS &SUPPLY CHAIN
Customers & Supply Chain

Highlight

Quality and Satisfaction
TargetStrengthen relationships with customers
through our products and services.

Supply Chain
TargetThrough responsible management of the overall supply chain, deliver a stable portfolio of products
and fulfill stakeholder accountability.

Responsible Procurement Survey
Customersatisfaction

TargetResponsible Supply Chain
Management
Product Safety & Quality

100 (%)

Customer Satisfaction

75

70%

71.9

70.5

70.6

70.0

FYE2017

FYE2018

FYE2019

FYE2021

Coverage ratio(based on purchased amount)Target90%

100 (%)
75

85

90

90

90

FYE2017

FYE2018

FYE2019

FYE2021

94

95

94

FYE2017

FYE2018

FYE2019

FYE2021

100

100

FYE2019

FYE202150(Japan)250(Target)5025
0100 (%)

Conformity rate

9075

(Target)Target90%

50(Japan)25
0

Improvement rate of low-rated suppliers

100 (%)

100(Target)91
75

Target100 %50(Japan)25
0

FYE2017

FYE2018

LIXIL Group Corporate Responsibility Report 2019

(Target)59

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Customers & Supply Chain > Responsible Supply Chain Management

06

CUSTOMERS &SUPPLY CHAINRESPONSIBLE SUPPLY CHAIN MANAGEMENT
The LIXIL Group seeks to ensure stable product supply and responsible procurement by identifying related risks and working closely with business partners.

Our Approach & System

Promoting Responsible Procurement That
Upholds the Environment and Labor Safety

The LIXIL Group’s procurement is based on strong

Customers & Supply Chain

partnerships with global suppliers in accordance with our
Procurement Principles and the concrete guidelines of our
Procurement Compliance Policy. Our LIXIL Group Code of

Responsible Supply Chain
Management

Conduct also specifies the ethical behavior that is expected

Product Safety & Quality

Meanwhile, our Supplier Code of Conduct compiled

Customer Satisfaction

The LIXIL Group is committed to responsible procurement.

We also conduct regular inspections of our existing partners.
The LIXIL Group employs the process outlined below todesignate important suppliers, which will be prioritized when

Selecting New Business Partners

sharing procurement policies, conducting questionnaire
surveys, and checking progress towards improvement.

The Supplier Assessment Standards used to select businessof all our staff, including prohibition of bribery.

Monitoring Existing Business Parthers

Based on transaction value, approximately 90% of LIXIL

partners include criteria on: quality, cost and delivery,

Corporation suppliers are located in Japan, followed by

in FYE2018 requires that suppliers prohibit corruption

technical capabilities, and ability to deliver stable supply;

China, Austria, and Thailand. For major suppliers in Japan,

and observe legal working hours and minimum wage

environmental consciousness, such as sustainable use of

we hold annual meetings to explain responsible procurement

requirements. At the same time, we request that they

resources and proper control of chemical substances, and;policies and request cooperation with questionnaire surveys.

demand equivalent standards from their own suppliers.

human rights and labor safety. We require new business
partners to understand and accept our Supplier Code ofPDF

Procurement Principles (92.9KB)

Conduct. Once suppliers are selected, we also conduct

PDF

LIXIL Group Code of Conduct (2.6MB)

assessments of their products.

PDF

Supplier Code of Conduct (156KB)

Procurement Transaction Amount Breakdown by Country

LIXIL Corporation ascertains the compliance of new

2.2%

0.5%

2.2%

2.1%

5.3%

business partners by checking written responses to surveysof labor management, health and safety, anti-corruption, andJapanother practices.

China

87.7%

Austria

Flowchart for Important Suppliers Identification

Primary supplier

Providing criticalcomponent/product

YES

Thailand
Malaysia

Difficultto substitute

YES

Large-scale supplier(Monetary terms)

Other countries

YES
Important Supplier

Scope of application: Suppliers to LIXIL Corporation and its subsidiaries* Excluding GROHE Group S.à r.l., American Standard Brands, andPERMASTEELISA GROUPNO
YES
Meets criteria set in
our Supplier Principles

LIXIL Group Corporate Responsibility Report 201960

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Customers & Supply Chain > Responsible Supply Chain Management

06

CUSTOMERS &SUPPLY CHAIN
Customers & Supply Chain

Conducting and Following Up on
Responsible Procurement Surveys
LIXIL Corporation reviewed its responsible procurement

responsible procurement surveys and checking subsequent

survey in FYE2019. The new 47-question survey is easierprogress. Survey results form part of the basis for selecting

to understand because it dovetails more closely with our

suppliers or determining whether to continue business with

Supplier Code of Conduct, revised in FYE2018, and enables

an existing partner.

online responses. This has lightened the survey load for both

Customer Satisfaction

CSR management

5

Fair business12

suppliers and LIXIL’s procurement department, allowing

Human rights

8

efforts to be focused on improving any problems that are

Labour6

Occupational health and safety

7

Conduct responsible procurement surveys for chosen

Conservation of the global environment

7

suppliers, covering CSR management, fair business,

Contribution to the community2

human rights, labour, occupational health and safety,

Total

47

Details of the process are outlined below.

Responsible Supply Chain
Management
Product Safety & Quality

Number of Responsible Procurement Survey
Questionnaire Items

The LIXIL Group identifies supply chain risks by conducting

1

2

Select suppliers to be surveyed based on previous year’s

uncovered. We plan to expand this responsible procurementtransaction value, etc.

survey system to other parts of the LIXIL Group.

conservation of the global environment, and contribution
to the community.
3

Compile survey results, classifying suppliers with sub-

PDF

Survey Forms (447KB)

Responsible Procurement Survey Results

standard conformance rates as high-risk.
4Manage high-risk suppliers individually to encourage
improvement.

Activities

For suppliers classified as high-risk through this process,we provide site visits and other forms of individual guidance
that help promote sustainable partnerships and strengthen
our supplier base, the primary goals of our supply chain
management strategy.

Distribute Procurement
Principles; follow up
on survey results andrelated activities

FYE2017

KPI

Coverage ratio(based on purchasedamount)FYE2019

FYE2021

Targets

Results

Targets

Results

Targets

Results

Targets

Japan

80%

85%

90%

90%

90%

90%

90%

Overseas*1

60%

80%

90%

90%

90%

90%

90%

Japan

90%

94%

90%

95%

90%

94%

90%

Overseas*1

90%

88%

80%

85%

80%

88%

-*2

Japan

100%

100%

100%

91%

100%

100%

100%

Total conformity rate
Improvement rate

FYE2018

Scope of application: Suppliers to LIXIL Corporation and its subsidiaries
Japan: Procurement by operating sites in Japan, Overseas: Procurement by operating sites overseas*1 Excluding GROHE Group S.à r.l., American Standard Brands, and PERMASTEELISA GROUP*2 Not decided yet as the scope is now under reconsideration

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Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

Customers & Supply Chain > Responsible Supply Chain Management

06

CUSTOMERS &SUPPLY CHAIN
Customers & Supply Chain

Strengthening Support for International
Business Partners through Training

Management of Chemical Substances

LIXIL Corporation provides training for procurement staff at

LIXIL Corporation specifies chemical substances whose

overseas factories as part of efforts to deepen understanding ofuse in products or production processes in Japan is either

responsible procurement and improve business partner support.

prohibited or requires strict control. In April 2019, we
published our approach to chemical substances in products.

Understanding Social Needs

substances and update our list of controlled substances.

Responsible Supply Chain
Management

In FYE2019, we conducted training for procurement

Product Safety & Quality

departments at our factories in China. Lectures led by

Customer Satisfaction

We also plan to set procurement standards for chemical

members of the head office procurement department

PDF

List of the Environment-Related Substances to becontrolled by LIXIL Corporation (506KB)

provided information on the importance of responsible
procurement and related social trends, deepening theunderstanding of the company’s challenges under our
Procurement Principles.

Visiting Business Partners for On-the-Job Training
Personnel from local and head office procurement
departments jointly visited business partner factories
to assist with aspects requiring improvement. Local
staff commented on how the experience reinforced theunderstanding of the importance of CSR, and inspired themto utilize insights gained through the on-the-job training tohelp business partners with their activities.

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Environment

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Customers & Supply Chain > Product Safety & Quality

06

CUSTOMERS &SUPPLY CHAIN

PRODUCT SAFETY & QUALITY
The LIXIL Group is committed to maintaining and strengthening ties with its customers by ensuring superior quality in manufacturing and services,and consistently improving its product quality management system with the aim of eradicating serious product-related accidents.

Our Approach
The LIXIL Group firmly believes that product quality is the key to earning the trust of its

Customers & Supply Chainis shared among all employees, we have published the LIXIL Group Quality Principles
in 14 languages and are continuously pursuing excellence in product manufacturing

Responsible Supply Chain
Management

and services around the world. Significant product-related problems make customers

Product Safety & Quality

quality management initiatives such as confirming legislative compliance based on the

Customer Satisfaction

Nurturing a Culture That Strives for Superior Quality Product Manufacturing

customers and society, and a source of corporate profitability. To ensure that this belief

The LIXIL Group is proactively pursuing activities to improve quality by turning its
annual month-long efforts to nurture a quality-improvement focused environment
into an all-year drive, and extending activities at each office worldwide.

anxious and adversely affect our reputation for reliability. That is why we pursue product
LIXIL Product Safety Principles.
Going forward, we intend to make consistent improvements to our product quality
management system, and work to ensure consumers know how to use products safely.
PDF LIXIL Group Quality Principles (106KB)

PDF

LIXIL Product Safety Principles (40KB)Management Structure

Stimulating Regular Learning
via Internal Social Media Network
In FYE2019, we launched new product-quality promotion activities
via our internal social media. We actively share our quality-related
strategy, related CEO messages and examples of initiatives on eachorganization’s message boards to help improve quality. To date, the
LIXIL Group has promoted quality-focused training during its annual
LIXIL Quality Month in November, but, more recently, we have started
using internal social media channels to encourage year-round activities.

LIXIL Corporation has established quality and EHS headquarters under the directcontrol of the company president, and is continuously working to develop a strong
company-wide product quality management system to resolve quality issues. We havealso established quality and EHS departments for the LIXIL Group to help unify quality
management across Group companies.
We have unified the major functions of development, manufacturing and sales at our
three technology companies, and strive to achieve ultimate quality in each business’
operation. We have appointed a chief quality officer (CQO) in each company, who oversees
product quality department efforts to guarantee superior-quality products and services andresolve quality-related issues. In addition, LIXIL Japan Company, which has jurisdiction
over the retail service functions in Japan, strives to offer superior quality customer service.
CQOs and other relevant members gather together on a quarterly basis for the LIXIL

Sharing Global Improvement Initiatives
at Our Product Quality Forum
We hold a group-wide Product Quality Forum in
November each year. In FYE2019, approximately
800 people participated in the forum, which wastransmitted live to 43 offices around the world. Over3,000 employees have taken part in the forum over theseven years since it was first launched in 2012. The
forum seeks to strengthen product-quality initiatives
at each office by sharing a selection of outstanding
examples of improvements made at offices worldwide.

Group quality management conference, and conduct regular management reviews.

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Environment

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Society

ESG Performance

Customers & Supply Chain > Product Safety & Quality

06

CUSTOMERS &SUPPLY CHAIN

Enhancing Quality acrossEntire Product Lifecycle
To ensure customer safety, LIXIL Corporation is focused onenhancing quality across the full lifecycle of all products,

Customers & Supply Chain
Responsible Supply Chain
Management
Product Safety & Quality
Customer Satisfaction

from development to design, procurement, manufacture,
distribution, and after-sales support.

Design & Development
During the development stage, we have introduced techniquessuch as Fault Tree Analysis (FTA), Failure Mode and EffectAnalysis (FMEA), and Design Review Based on Failure Mode
(DRBFM), which are used globally as a means of assessing
potential risks that may arise when using products. Throughthese, we aim to improve our ability to pinpoint values that ourcustomers seek.
Furthermore, in recognition of our duty to help protect
the environment, we are currently striving to expand sales ofenvironmentally conscious products and develop a vision for our
future environmental strategy. We are also working to develop
frameworks to ensure accurate recognition and compliancewith global legislation and regulations as we continue to pursue
collaborative development projects around the world.Material &Material & Parts Procurement
We set quality-related standards to which our business partners
must adhere. If necessary, we will design joint activity themes tohelp resolve quality-related issues.

Commercialization, Production & Sales
We only commercialize products that have undergone andpassed vigorous stress tests and quality checks for durability,
weather resistance, etc. Products that require specific labelingto indicate conformance with safety and quality standards areclearly marked in our catalogues and other sales materials as

meeting required criteria. We also strive to provide better, readily
understandable product explanations, including experiencebased showroom displays and online videos, in order to ensurethat customers select appropriate products. We also have acustomer service team in place to respond to queries.

Responding to Product Defects & Issues
We have a system in place for incorporating customer opinionswith regard to product-related accidents and defects. We
thoroughly investigate the cause of any problem via the system
and implement improvements, not only in product design, butacross all processes from manufacturing to retail distribution. The
improvement process also covers steps to help prevent productdefects and problems, from pursuing organizational management
to ensure improvements are fully integrated, to developing better
governance frameworks to support them.

Design & development• Reflecting customer opinions• Verification based on LIXIL safety standards
using the Stage Gate System

Parts procurement• Quality terms-based procurement from our
suppliers• Joint improvement initiatives

Stage Gate System
In its product development, LIXIL Group categorizes thevarious processes from research and development tocommercialization and merchandising into “Stages” andsets up “Gates” between transitions to subsequent stages,
with high importance placed on evaluation reviews andmanagement decisions. To raise the level of completion indesign, quality and production, the Development, Productionand Sales Divisions collaborate with each other at eachstage of the development process. The criteria for evaluation
are also reexamined on an ongoing basis to promote thedevelopment of even higher-quality products.

Concept of Stage Gate System
Customer opinion

Safety design

Commercialization,
production & sales• Tests confirming fulfillment of quality
standards• Conformance indicators for sales materials

Responding to productdefects & issues• Reflecting customer opinions byinvestigating problems and implementing
improvement frameworks

GATE 1

Project start approval

GATE 2Business plan approval

GATE 3

Final business plan approval

GATE 4Market launch &mass production approval

GATE 5

Review

Safety checks

Monitoring quality
information* The above is a concept, arranged in each division or each area

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Customers & Supply Chain

Environment

Society

ESG Performance

Customers & Supply Chain > Product Safety & Quality

06

CUSTOMERS &SUPPLY CHAIN

Responding toSerious Product-Related Accidents

FYE2017

FYE2018

FYE 2019

Number of legal infringements

0

1

1

Number of significant product-related accidents

4

3

8

At LIXIL Corporation in Japan, whenever a product-related
accident occurs, information is gathered in the Quality

Customers & Supply Chain

Number of Legal Infringements
and Significant Product-Related
Accidents& Six Sigma Division within 24 hours from the receipt of
notification, and an emergency notice is sent out to relevant

Emergency Procedure for Responding to Accidents
Accident occurs

Customer
Informdepartments. The division in charge of customer services
reports such high-risk product-related accidents directly to

Product Safety & Quality

also coordinates with other departments to implement

senior management to ensure a swift response. The divisionon-site response and investigation of an accident. A report

Report major accidents
within 10 days

Customer Satisfaction

Division receiving the initial information

LIXIL

is submitted to the relevant authorities within ten days as
stipulated by the Japanese government’s reporting anddisclosure procedures on product accidents under theConsumer Product Safety Act. To prevent a recurrence, we

Reportwithin24 hours

Responsible Supply Chain
Management

Personnel handling initial information
Serious Product Accident Committee
Regulatory reporting personnel

Consumer Affairs Agency

Cooperate

Relevant divisions

Quality & Six Sigma Division

ReportAuthorities

Customer Services Division
Initial guidanceFirst reportreflect lessons learned from accidents in design schematics,
and proactively improve preventative safety technology.

RespondInformRequestmeeting

Investigate & compile aneffective response

RequestreportReportNational Institute of Technology & Evaluation (NITE)

Regarding suspected illegal occurrences, the technology orother relevant departments will ascertain if an infringement

training sessions for different job types on Japan’s Electricalhas occurred, and submit a report to the competent

Appliance and Material Safety Act for approximately 450

authorities. We follow a similar process for suspected legal

employees across ten offices.

Today, houses are designed to last much longer than in

infringements as for product-related accidents; namely, we
conduct a thorough investigation of the cause and decideConveying How to Use Products Safely

LIXIL Corporation provides product quality education throughthe past. In recognition of these changing trends, LIXIL
Corporation offers a maximum ten-year LIXIL Long-term

appropriate countermeasures to prevent a recurrence.

Product Safety Education

Long-Term Guarantee to Facilitate Long,
Safe Customer Use

The LIXIL Group publishes product-specific instructions

Guarantee Service that enables customers to use products

for all of its major products on the website to ensure safe

safely over a longer period of time.

product use, along with videos illustrating how to care forand clean products to ensure appropriate use.

Praised as a pioneering development in the industry, thisservice enabled LIXIL to win the Excellence Award in thelarge manufacturer and importer category at the 8th Besta training framework tailored to individual job types andlevels. In FYE2019, LIXIL Corporation conducted productWEB

Product & installation manuals (Japanese only)

safety training for new technical-stream employees, andWEB

How-to videos (Japanese only)

Contributors to Product Safety Awards in 2014.

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Environment

Customers & Supply Chain

Society

ESG Performance

Customers & Supply Chain > Product Safety & Quality

06

CUSTOMERS &SUPPLY CHAIN

External Activities
Safety Education Program:Think about Safety in the Home

Consumer Education

As part of its product safety-related activities, LIXIL

LIXIL Corporation creates opportunities for consumers to

Corporation has developed a safety training program with theconsider how to ensure safety and prevent accidents in

not-for-profit Association of Corporation and Education (ACE)the home, by conducting themed lectures on safety in the

Responsible Supply Chain
Management

for fifth and sixth year elementary students, and provided

home at product safety seminars hosted by the National

this program for free to school teachers and educators. In

Federation of Regional Women’s Organizations and other

Product Safety & Quality

FYE2019, LIXIL employees also used this program to give 14

consumer-related organizations. In FYE2019, the seminars

lessons in seven schools to approximately 500 children. The

were conducted at ten different halls for approximately

program also won the Outstanding Performance Award at

1,000 participants.

Customers & Supply Chain

Customer Satisfaction

the Instructional Materials for Consumer Education Awards
2014 conducted by the National Institute on Consumer
Education (NICE).

Product safety seminarWEB

Details about the activity (Japanese only)

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Environment

Customers & Supply Chain

Society

ESG Performance

Customers & Supply Chain > Customer Satisfaction

06

CUSTOMERS &SUPPLY CHAIN

CUSTOMER SATISFACTION
The LIXIL Group is constantly enhancing its products and services and promoting communication across the Group to ensure continued and improved customer satisfaction.

Our Approach & System
To ensure that our customers enjoy all aspects

Customers & Supply Chainof their living spaces, the LIXIL Group seeks tomaximize customer satisfaction among bothconstruction-related commercial customers andResponsible Supply Chain
Management

end consumers. Developing and providing products

Product Safety & Quality

and communicating effectively with relevant

Customer Satisfaction

Improving Customer Safety in Times of Disasters
LIXIL Corporation started to provide disaster-response information in recognition of the more frequent
occurrence of natural disasters and the rising number of related customer enquiries. We have also been working
to strengthen our support systems so that we can respond to customer enquiries even during a disaster.

and services that fulfill customer expectations
stakeholders are vital to improving customer
satisfaction. LIXIL Corporation’s Marketing
Division and quality and EHS headquarters work
consistently together to improve our products andservices based on customer feedback.

Communicating Disaster-Response andDisaster-Recovery Key Points
The damage to personal homes in times of disasters greatly
impacts the everyday lives of our customers. Our website offers
relevant information for each type of natural disaster, including
how to repair LIXIL products, in order to help customers get backon their feet as soon as possible and regain a sense of normality.
We try hard to ensure this information is widely available byposting it on our website and regularly providing disaster-related
information through our LIXIL Owners Club, as well as by posting
it on our official social media accounts when a disaster strikes.

Providing Reassuring Customer Support
by Moving Telephone-Based Services
onto the Cloud
During a disaster, we receive a higher number of emergency
inquiries from affected customers. However, it is difficult for ourcall centers to respond if they have also suffered damage. To
ensure we can continue to support our customers even in times ofdisasters, we have moved our contact facility onto the cloud andincreased our number of satellite bases. This has enabled us tocreate a more decentralized call center network in order to makeour infrastructure more resilient, and establish a system that ismore responsive to customer concerns in times of disasters.
Product-specific disaster-response examples:• How to flush a toilet in times of suspended or restrictedwater supply• How to cope with a collapsed carport or terrace roof
• How to deal with broken window panes• How to prevent freezing in bathrooms and bathtubs
Types of disasters: earthquake, flood, power outage,
typhoon, water outage, heavy snowfall/freezingWEB ey points for responding to specific disasters
K(Japanese only)

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Environment

Customers & Supply Chain

Society

ESG Performance

Customers & Supply Chain > Customer Satisfaction

06

CUSTOMERS &SUPPLY CHAIN

Implementing the Six Sigma Quality
Management Method
LIXIL Corporation considers customer satisfaction
a significant element of its business activities. In order

Customers & Supply Chain（%）
90

to listen attentively to the voices of our customers (VOC)80

and channel those opinions into creating better products

70and services, we have introduced the Six Sigma system.
Responsible Supply Chain
Management

This system involves listening to customer opinions andProduct Safety & Quality

judgements based on instinct and experience, we focus on

Customer Satisfaction

Professional User Satisfaction of Products andSupport Services

pinpointing issues for improvement. Then, instead of making
facts derived from numerical analyses to help control any
variation in our work and services, ultimately helping lead toquality improvements. We have established an interdivisionalteam across Group companies to promote the improvement
initiatives.

60

Customer Inquiries(Thousand)

(%)

500

100

400

80

300

60

200

40

100

20

0

0
FYE201750

FYE2017

FYE2018

FYE2019

Response rates
Inquiries (monthly average)

Satisfaction level on product quality

FYE2019

Inquiries: By phone, email or fax
Response rates:
Number of responses / Total number of inquiries

Satisfaction level on showroom services
Satisfaction level on services by sales reps
Satisfaction level on after-sales maintenance
Satisfaction level on call center support

Collecting VOC* information(ensuring customers’
opinions are recorded)

We also collect approximately 300,000 comments from
customers each month through our customer service center,

Reflecting Commercial Customer Opinions
in Our Products and Services

FYE2018

repair center, and product information support center. Thisdata is stored in our database and shared with relevant

End userdepartments to encourage measures to improve and

LIXIL Corporation conducts satisfaction surveys ofultimately boost the quality of our products and services. In

its commercial customers. In FYE2019, we achieved

addition, our customer service center sends a questionnaire

an average satisfaction rate of 70.6% in terms of theto customers who have recently contacted the center toquality of our products and customer support, including

rate the quality of service received, and also conducts

showrooms, call centers, aftersales maintenance, and sales

mystery shopping surveys. We use the results to improve ourrepresentatives.

communication and enhance customer satisfaction.

Contractor

OutletCustomer
Service Center
100,000
inquiries per
month

Analysis(visualization)

VOC*
database

CS improvement
activities (making
effective use ofcustomers’
opinions)

Products

Repair Center
150,000
inquiries /mth
GeneralProduct
Information
Support Center
40,000inquiries /mth

Service
290,000 cases/mth

Showrooms

Improvement activities* VOC: Voice of CustomersWEB xamples of service improvement through the VOC
E(Japanese only)

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Environment

Customers & Supply Chain

Society

ESG Performance

Customers & Supply Chain > Customer Satisfaction

06

CUSTOMERS &SUPPLY CHAIN
Customers & Supply Chain

Training: How to Improve Customer
Satisfaction

LIXIL Owners ClubWe hold practical construction-related training workshops forWith the launch of its membership-based LIXIL Owners

commercial customers on window sashes, doors, exteriors,

Club, LIXIL Corporation is seeking to improve customer

kitchens, and bathrooms with the aim of improving end

satisfaction by providing information and services that willconsumer satisfaction. We also conduct regular training

enable customers to use purchased items comfortably andfor employees to improve their level of knowledge about oursafely over a long period of time.

Responsible Supply Chain
Management

overall work and products so that they can resolve any problems
customers face. Furthermore, we seek to boost motivation by

Examples of available services:

Product Safety & Quality

offering rewards for excellent customer service skills.

• Ability to extend guarantee period free of charge• Long-term guarantee service (additional payment required

Customer Satisfaction

for a five or ten year guarantee)

Product training• Maintenance package (additional payment required)Hands-on product knowledge
training using actual toilets

Construction trainingWEB

LIXIL Owners Club (Japanese only)

Carport foundation construction
training

Recognition system
Award recipients of a regularlyheld customer service contest

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07
SOCIETY

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

SOCIETY
We uphold the human rights of all our stakeholders inour determined drive to promote business activities andcontribute to society.

Society
Human Rights
Stakeholder Engagement
Community

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Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance
Society > Highlight07
SOCIETY

SocietyHighlight

Stakeholder Engagement
TargetProactively engage with LIXIL’s key stakeholders.

Meeting with investors

LIXIL Community Day participants

Human Rights
Stakeholder Engagement
Community

359 times

6,938 employees(FYE2019)(FYE2019)

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Strategic Pillars

Our People

Environment

Society

Customers & Supply Chain

ESG Performance
Society > Human Rights

07
SOCIETY

Society
Human Rights
Stakeholder Engagement
Community

HUMAN RIGHTS
We aim to operate as a sustainable, responsible corporate citizen that respects human rights.

Our Approach & System

Human Rights Principles

Based on the LIXIL Group Human Rights Principles, we

LIXIL Group business activities are built on a fundamental

strive to uphold the human rights of all stakeholders,

respect for human rights. The LIXIL Group Human Rights

including end-users, suppliers and other business partners,

Principles, established in March 2016, align with international

residents living near our factories and offices, and ourstandards, International Bill of Human Rights, the International

employees. LIXIL Group also established the Human

Labour Organization (ILO) Declaration on Fundamental

Rights Due Diligence Task Force in FYE2018, comprising

Principles and Rights at Work, and the UN Guiding Principles

managers from Corporate Responsibility, Human Resources,

on Business and Human Rights, and we seek to instill aCompliance, Global Auditing and Purchasing departments,

solid understanding of the principles among all officers

with the aim of strengthening and ensuring strict adherence

and employees. If there are any discrepancies between

to human rights due diligence processes* as a global

the internationally recognized human rights standards andcompany. Going forward, we will extend the scope of these

the laws and regulations of individual countries or regions,human rights due diligence processes to the entire Group

we adhere to the higher commitment. If any contradictions

and provide transparent reports on our performance.

exist, we seek a way of respecting internationally recognized

The LIXIL Group has signed the United Nations Global
Compact, and is a member of the Human Rights Due Diligence

Our commitment
Our approach• Respect the human rights of customers• Respect the human rights in the workplace• Respect the human rights of business partners• Due diligence• Remedy• Education/instillinghuman rights standards while complying with local laws andregulations.

Working Group of the Global Compact Network Japan.
*Due diligence on human rights: To put in place measures that identify,
prevent, reduce, or respond to any negative impact on human rights
caused by the activities of a company or its related companies, and to
regularly monitor their effectiveness

LIXIL Group
Human Rights Principles

Instilling Human Rights Principles
within the Group
The LIXIL Group completed the training on its Human Rights

Our engagement• Cooperation with stakeholders• Reporting

PDF

LIXIL Group Human Rights Principles (76KB)

Principles for all employees and officers by FYE2019. In Japan,
we sought to deepen employee understanding by encouraging
staff to debate business-related human rights issues inmeetings held by individual departments. In FYE2019, we
worked to instill a broad understanding of the importance of
upholding human rights by holding training sessions for all
employees and officers outside Japan, covering our policies
relating to the banning of discrimination and harassment.

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Environment

Customers & Supply Chain

Society

ESG Performance
Society > Human Rights

07
SOCIETY

Strengthening Human Rights Due Diligenceviolations and ensure improvements are made. We will also
conduct regular reviews of our human rights due diligence

The LIXIL Group is working to strengthen its human rights

framework, and ensure highly transparent disclosure ofdue diligence. Having determined our principles in FYE2016,

relevant content and processes.

the following year we conducted risk mapping in the CRSociety

Committee, which is made up of executive officers from eachfunctional division in the head office and representatives

Requiring Our Business Partners to Uphold
Human Rightsfrom each of the technology businesses. We invited the BSR
Human Rights
Stakeholder Engagement
Community

human rights NGO to give lectures on social trends relating to

LIXIL Corporation has implemented a Supplier Code ofbusiness and human rights, and pinpointed human rights risks

Conduct which requires its business partners to take action

across the lifecycle of LIXIL products. In FYE2018, our newly

against human rights risks. We use supplier questionnaires

established Human Rights Due Diligence Task Force createdto maintain a clear understanding of how those efforts area survey sheet of 76 items, and conducted a test run in all

progressing.

head office departments.
Based on results of the test run, the LIXIL Group will

CR

Responsible Supply Chain Management (P60)

implement human rights due diligence across all global
operations by FYE2021 to help define and reduce LIXIL
business-related human rights risks for customers,

Concern-Raising System

employees, business partners and other stakeholders,

The LIXIL Group operates an internal concern-raising systemand to respond swiftly and sincerely to any human rights

called Speak Up! for reporting human rights and otherconcerns relating to the entire Group, including subsidiaries
outside Japan. We welcome information from our business
partners such as suppliers and service providers on any
potential compliance violations by the LIXIL Group.

SPEAK
UP!
Risk mapping in the CR Committee

WEB

Concern-raising system Speak Up!

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Environment

Customers & Supply Chain

Society

ESG Performance
Society > Stakeholder Engagement

07
SOCIETYSTAKEHOLDER ENGAGEMENT
The LIXIL Group proactively engages with stakeholders to help improve the quality of people’s daily lives and resolve social issues.

Our Approach
Our success depends on the support of a broadSocietyrange of stakeholders. We are committed toproactively engaging with our stakeholders

Customers(including customers, business partners, members
Human Rights
Stakeholder Engagement
Community

Employeesof the communities where our operational facilities
are located, shareholders, our employees andtheir families) to collect and reflect their opinions
in our business operations and corporate social

Business
partners

NPOs & NGOs

responsibility activities.

Relationship with Stakeholders
The LIXIL Group invites external experts to holdsustainability workshops for the CR Committee,

Local
communities

which consists of officers from each functional

Educational
andresearch
institutions

LIXIL
Group

division in the head office and representatives
from each technology business. In FYE2018, we
held a second top-level meeting exploring how
international companies are expected to contributeto the Sustainable Development Goals (SDGs).

Shareholders& investors

Government
authorities

The meeting started with a lecture from expertson recent sustainability trends, followed by an
engaging discussion on how and in what capacity
LIXIL could effectively contribute to the SDGs now

Internationalorganizations

Industrial
associations

and in the future. Ideas proposed in the discussion
will be reflected in our future CR activities.

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Environment

Customers & Supply Chain

Society

ESG Performance
Society > Stakeholder Engagement

07
SOCIETY

Key Stakeholder Engagement
Customers

Society
Human Rights

CR

Details (P67)

We incorporate customer opinions, and provide timely
and appropriate disclosure on our products andservices. We offer customer support via telephone,email, and 135 showrooms worldwide.

Stakeholder Engagement
Community

SuppliersCR

Details (P60)

We build and maintain strong relationships with our
suppliers by facilitating two-way communication.
In response to the results of our Responsible Procurement
Surveys, we share our procurement policies, recognize
current circumstances, and follow through on promised
improvements. We also hold regular meetings with
suppliers to share information on regulatory trends andnew corporate purchasing strategies.

Local Communities

CR

Shareholders and Investors

WEB

Details

We held 359 discussions this year with investors
around the world to help promote sustainable growthand enhance corporate value. We disclose timely andtransparent information in English and Japanese throughour Annual Report (Integrated Report from FYE2016),
our Investor Relations web pages, and the Tokyo Stock
Exchange website.

Employees

CR

Details (P28)

The LIXIL Group boasts approximately 75,000
employees. We strive to create an inspiring working
environment that encourages diversity and incorporates
employee opinions expressed through systematic global
employee satisfaction surveys or discussions between
the union and the company.

Government Authorities andIndustrial Associations
Engaging in vigorous but transparent dialogue withgovernment authorities is necessary to shaping asustainable society. As part of this process, we are
involved in several industrial and business associations
whose missions include engaging with public authorities
on behalf of their respective industries, including
window sashes, plumbing, and metals. Participatingin these associations helps keep us up-to-date withcurrent and pending changes in laws and international
agreements that may affect our business.
(Total political contributions: Less than JPY 1 million in FYE2017; lessthan JPY 1.1 million in FYE2018; Less than JPY 0.8 million in FYE2019)(Total fees relating to industrial associations and others*: JPY 55 million
in FYE2017; JPY 97.6 million in FYE2018; JPY 86.2 million in FYE2019)* Total fees from FYE2015, FYE2017 and FYE2019 start to include ASD
Americas Holding Corp. (American Standard), GROHE Group S.à r.l.
(GROHE), and Permasteelisa S.p.A., respectively

Details (P78)

The LIXIL Group operates 103 factories worldwide. As a
responsible corporate citizen, in addition to respecting
local culture and customs and creating responsible
products and jobs, we also contribute to the developmentof the surrounding community in which we operate. We
hold community dialogues at factories and sales offices inJapan to encourage communication with local residents.

NPOs, NGOs, and
Educational and Research Institutions
We partner with NPOs, NGOs, and educational andresearch institutions for research and development
related to global sanitation, and support environmental
education for next-generation leaders.

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance
Society > Stakeholder Engagement

07
SOCIETY

Society

Stakeholder Cooperation in Our Three Strategic Pillars
LIXIL Corporation is pursuing cooperative initiatives together● Water Conservation and Environmental Sustainability

with stakeholders to help promote its Three Strategic Pillars.

My Bottle Promotion Campaign● Global Sanitation and Hygiene

We are taking determined action on water conservation

Toilets for All Projectand environmental protection together with customers
through the My Bottle Promotion campaign. The campaign,

Human Rights
Stakeholder Engagement
Community

End-user customers, professional building contractor

launched in 2017, gives LIXIL branded bottles to customers

customers and LIXIL employees are currently participating in

who ask for a price quotation on water filter taps at ourour Toilets for All project, which was launched in 2017 withshowrooms. LIXIL water filter taps help reduce water

the aim of deepening understanding of sanitation problems

consumption and CO2 emissions through their eco-handles

in developing countries and encouraging improvements.

and other functions. People can reduce plastic bottle waste

In 2017 and 2018, for each LIXIL shower toilet sold, LIXIL

by filling the LIXIL bottle with filtered tap water and bringing

Corporation donated one of its innovative SATO toilet systems

it to school or the office.

to a developing country in Asia and Africa. Those donations

In 2017 we have also distributed LIXIL bottles to all LIXIL

totaled 208,805 toilets in 2017 and 203,454 toilets in 2018.

Group employees in Japan, and replaced the taps in all

We started off by donating SATO toilets through international

Japanese offices with LIXIL filter taps to encourage ourorganizations and NGOs to Rohingya refugee camps in

employees to conserve water.

Bangladesh and to regions and people in urgent need inIndia, Tanzania and Rwanda. We will continue to donate toindividual countries and regions that require access to basic
toilet facilities. In 2019, we are also donating a portion ofsales through the LIXIL and UNICEF initiative named Make a
Splash! Toilets for All.
WEB

Toilets for All Project (Japanese only)Children with the donated SATO toilets

WEB

My Bottle Promotion Campaign (Japanese only)

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance
Society > Stakeholder Engagement

07
SOCIETY

Society
Human Rights
Stakeholder Engagement
Community● Water Conservation and Environmental Sustainability● Diversity and Inclusion

THINK HEAT:
Let’s THINK about Eco-Friendly Temperatures

Universal Run:
Sports Prosthesis Experience Class

We launched the THINK HEAT project in 2018 to consider

Our Universal Run: Sports Prosthesis Experience Classes,with our customers the importance of indoor temperature,launched in 2017, provide a chance to deepen children’s

which can cause heatstroke or heat shock, and the efficientunderstanding of diversity. Thanks to the cooperation ofuse of heaters and air-conditioners, which account for

Paralympic and other athletes who use artificial limbs inapproximately 25% of household energy consumption. At

sports, this experience-based class and discussion provides

our showrooms, we distributed LIXIL branded thermometers

an opportunity to change the way children perceive people

to customers who asked for a quotation on products thatwith disabilities. The classes are organized together withimprove residential insulation and thermal efficiency inorder to promote their interest in indoor temperature andDonated Style Shade sun blinds to public housing of Kumamoto Prefecture
for disaster victims

schools and local authorities, and our local staff join in theclasses, too.

the efficient use of heater and air-conditioners. We also
distributed LIXIL thermometers to all Group employees
in Japan to help change their daily behavior and raiseawareness of indoor temperature.
We are also working with local governments to spreadknowledge among local communities on how to preventindoor heatstroke through our Cool Peace Project. For example,
we held seminars on indoor heatstroke in Kumagaya city,
Saitama and donated Style Shade sun blinds to public
housing units for disaster victims in Nishihara village,
Kumamoto. Through these initiatives, we help create
comfortable indoor living environments during the peak ofsummer.
WEB

Held a briefing session for the residents

THINK HEAT: Let’s THINK about Eco-Friendly
Temperatures (Japanese only)

WEB

Universal Run: Sports Prosthesis Experience Class(Japanese only)

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance
Society > Community

07
SOCIETY

COMMUNITY
As a corporate citizen, we are working on various activities to help solve community-specific problems.

Our Approach & System

LIXIL Community Day

The LIXIL Group focuses on making a positive

Societysocial impact in priority areas such as global
sanitation and hygiene, water conservation andenvironmental sustainability, and diversity and

Human Rights
Stakeholder Engagement
Community

inclusion, as well as in areas where our expertisecan make the biggest difference. Our CEO isa member of our Endowments and Consulting
Review Committee, which meets regularly to

In 2017, we started LIXIL Community Day, a day when executives and employees
from all workplaces and regions around the world take part in corporate citizenshipactivities during working hours. Staff participation roughly doubled for our second LIXIL
Community Day, held in FYE2019, with some 6,900 employees in 23 countries working
on 115 projects for a total of 18,050 hours. Outstanding initiatives were recognizedthrough the LIXIL Community Day Awards.

screen, assess and prioritize significant donations
and sponsorships in order to ensure our profits
contribute to society appropriately and effectively.

Social Contribution Expenditures(Million Yen)

FYE
2017

FYE
2018

FYE
2019

Charitable
donations

122.8

45.5

81.2

Community
investments

880.8

658.2

1,147.8

Commercial
initiatives

660.6

510.0

510.0

*Exclude Permasteelisa S.p.A. for FYE2017 and FYE2018 data
*Monetary and other contributions have been collected andcategorized in accordance to the London Benchmarking
Group Guidance Manual

LIXIL Interior Products Division staff
selling sweets to colleagues● Global Sanitation & Hygiene Category
PT American Standard Indonesia and PT LIXIL
Trading Indonesia (Indonesia)

Provided classes on toilet repair and educated kids about handwashing at PKBM AlFalah, a school on the outskirts of Jakarta for children whose parents earn a living by
picking up recyclable garbage.

● Water Conservation & Environmental Sustainability Category
LIXIL Corporation ZEH Promotion Division (Japan)

Staff initiative aimed at reducing electricity and gas consumption in the home.

AS Maquilla Mexico, S. de R.L. de C.V. (Mexico)

Visit to a local elementary school that involved teaching about water conservation,
planting 30 trees, and repairing toilet tanks.

GROHE (Baltic States, Northern Europe)

Created a picture book about the impact of plastic waste on our oceans.

● Diversity & Inclusion Category
LIXIL Corporation Interior Products Division (Japan)

Worked with three organizations that support the employment of people withdisabilities in confectionary production, and sold the sweets to LIXIL colleagues.

Decorative Panels International (USA)Assisted with lunch preparation and cleaning at homeless shelters. Worked with NPOs
to provide meals and household goods to underprivileged children.

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Environment

Customers & Supply Chain

Society

ESG Performance
Society > Community

07
SOCIETY

Society

Initiative Examples
Youth Empowerment:
Plumbing Skills for a More Secure Future
Underprivileged young people in emerging countries often

Stakeholder Engagement
Community

to people living in disaster-affected areas so that they cansecure access to reliable personnel for installing GROHE

feel safer. In 2016, several thousand SATO products were

products, but also helps advance the overall industry. A similardelivered to Bangladesh with the help of the BRAC, anprogram will be introduced in Nairobi, Kenya in 2019.

international NGO working to support people suffering withpoverty worldwide.

lack the skills to secure stable employment, while at thesame time the local society suffers a chronic shortage

Human Rights

Training highly skilled plumbers not only helps GROHE

Providing Safe Sanitation for Communities in Need2018 saw the launch of our Make a Splash! Toilets for All
partnership with UNICEF. Focusing on countries in Asia andof skilled workers. GROHE addresses this issue through
GROHE Dual Tech, conducted in conjunction with Don

SATO products are innovative, life-saving, low-cost solutions

Africa, we will continue working with UNICEF and other UN

Bosco Mondo e.V., a non-profit organization committed tothat provide safe and hygienic sanitation for people inbodies, along with international NGOs such as WaterAid andhelping disadvantaged young people obtain a job.

developing countries. In addition to expanding the SATO

Habitat for Humanity, to increase public awareness of the

The German-modeled, dual-track training program, whichbusiness to reach more people in Asia and Africa, the LIXIL

importance of safe, hygienic toilets.

provides students with technical knowledge and professional

Group has been working on donation activities with NGOs

skills on plumbing as well as IT and English-language

to support communities in urgent need, including disasterCR

Global Sanitation & Hygiene (P14)skills, has been in place in Mumbai, India since 2009. The

areas. We are committed to helping ensure a safe andCR

Toilets for All Project (P76)

program was then expanded to New Delhi, the Tondo district

sanitary environment as part of our disaster relief efforts.

in Manila, and the Philippines. To date, over 1,200 young

Inadequate or damaged facilities and insufficient humanpeople have taken part in the program, and near 100% of

resources in disaster areas exacerbate already poor sanitarystudents have been placed in jobs upon their graduation.

conditions and the spread of disease. The Caribbean islandof Haiti, the poorest nation in the western hemisphere,
witnessed a further deterioration in its already insufficient
sanitary environment following the 2010 earthquake.
American Standard engineers worked with Plumbers without
Borders (PWB) to teach students at Haiti Tec plumbing
skills and how to improve hygiene. In addition, the company
donated 7,900 SATO products to towns and villages in Haiti
and surrounding countries with the help of NGOs like PWB
and Food for the Poor. SATO products were also delivered
to survivors of the 2015 devastating earthquakes in Nepal
with the help of NGO WaterAid. Through these activities, we

GROHE Dual Tech students at the training facility in Mumbai

are working to help provide access to adequate sanitation

Teaching plumbing skills and how to improve hygiene to students in Haiti

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance
Society > Community

07
SOCIETY

Society
Human Rights
Stakeholder Engagement
Community

Turn Water into Food Program: Contribution to
Communities by Supporting Water Conservation

where schools are among the highest public spaces forSince 2012, GROHE has been participating in the Water

Solving Sanitation Problems in Nearby Communities

water consumption.

for Life project, which seeks to reduce water usage throughthe introduction of advanced technology and promotional

LIXIL Americas is engaged in tackling sanitation problems

campaigns in the Middle East and Africa, where water iswithin the United States. In the Navajo Nation, our skilledextremely scarce.

staff joined forces with the International Association ofPart of the initiative revolves around the Turn Water into

Plumbing and Mechanical Officials (IAPMO) to bring running

Food program, conducted together with local food banks

water to ten households. Teaming up with universities andsince 2015. In this program, GROHE purchases foodpublic agencies, we also worked to raise public awarenesspackages to donate to local families requiring support,of sanitation problems among residents of Lowndes County,equivalent in monetary terms to the amount of money saved

Alabama, where 80% of homes are not connected to theby introducing GROHE water efficient products. To date, thepublic sewage system. Going forward, we plan to explore theprogram has been conducted in Saudi Arabia, Egypt andpossibility of establishing local sewage treatment, and use

Turkey and then extended to Jordan in 2018, and provided

LIXIL products to improve the facilities of 100 households

food support to a total of over 2,710 families. Water efficienteach year.

taps were introduced in an all-girls high school in Jordan,

Gifts given to children through the Christmas Tree Activity

Delivering Christmas Gifts to Children
Through the Christmas Tree Activity, GROHE staff helped

Local Community Engagement: Community
Dialogue in Factories and Sales and Retail Bases

children whose families struggle with poverty or alcoholism
in Dusseldorf and Hemer, Germany, where the company

LIXIL Corporation regularly holds community dialogues

headquarters is located. At Christmas, we fulfilled the wish

with local stakeholders (such as local government officials,

lists of these children by giving a total of 85 presents.

business owners, and residents) on how we can give backto the community. These dialogues are held at factories andsales and retail bases around Japan. In FYE2018, LIXIL
Corporation held community dialogues at 11 locations inJapan, attracting over 90 participants. Over the past six

Receiving food through the Turn Water into Food program

years, we have held over 110 community dialogues in total.

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance
Society > Community

07
SOCIETY

LIXIL Omotenashi Toilet Cleaning at Tourist Site

Disaster Aid and Recovery Support in Japan

received through community dialogues and ensuring consistent

In 2014, Shikoku area staff started the LIXIL Omotenashi

LIXIL Corporation has supported various recovery efforts

communication and follow up in order to gain trust from

Toilet Cleaning at Tourist Site initiative to express thefollowing the March 2011 earthquake and tsunami

the local community. For example, our Handa Factory inJapanese spirit of hospitality by ensuring that visitors werein Northeast Japan and the April 2016 earthquake in

Aichi started to help local day-care centers with emergency

greeted with clean toilets. As a toilet manufacturer andKumamoto. These activities include donations of basic daily

evacuation procedures after a principal voiced concern

retailer, LIXIL expanded this unique initiative to 39 areas innecessities such as toilets and hand-washing facilities,

that the predominately female staff might not be physically

17 prefectures throughout Hokkaido, North Kanto, Chubu,

monetary donations, employee-driven charity events, andcapable of evacuating all the children safely on their own.

Chugoku, and Shikoku, with employees and local residents

sponsoring of recovery projects.

LIXIL VIVA Corporation began community dialogues inworking together to clean public toilet facilities. In FYE2019,

We cultivate meaningful relations with local residents andauthorities by implementing initiatives based on opinions

Society
Human Rights
Stakeholder Engagement
Community

In FYE2018, our Tohoku branch office launched a project

FYE2013. In FYE2019, meetings at six stores brought

1,196 employees cleaned toilets in 334 public facilities

to repay the generous support received from around Japan

together participants from community councils, schools, andtogether with local residents.

in the wake of the 2011 earthquake and tsunami. Using

centers providing employment and support for people withThis initiative has been certified by the Tokyo 2020

proceeds from the sale of select refurbishment products,

disabilities, facilitating an exchange of views on issues such as

Official Program (urban development category) for fostering

the Tohoku branch donated 500,000 yen to each of five

regional disaster prevention, employment for people witha commitment to heartfelt omotenashi hospitality throughdisaster-affected prefectures as a gesture of gratitude.

disabilities, and work experience for junior high-school students.

cleaning activities towards realization of universal society.

Community dialogue (LIXIL VIVA)WEB

Details about Community Dialogue (Japanese only)

Toilet cleaning initiativeWEB

LIXIL Omotenashi Toilet Cleaning at Tourist Site initiative(Japanese only)

Donated windows and toilets to the Minamisoma Playgroundfor All recovery support projectWEBDetails about Disaster Aid and Recovery Support(Japanese only)

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance
Society > Community

07
SOCIETY

Society
Human Rights

Cooperating with Various Partner Organizations(examples)

UNICEF

Working together to promote safe sanitaryfacilities in Africa.

JICA

Promoting field trials of the water-saving
Micro Flush Toilet System in Kenya.

WaterAid

Cooperating to improve the lives of people
living in areas without hygienic toilets,and compiled together a white paperthat analyzes the socioeconomic losses
associated with underdeveloped sanitaryenvironments.

Stakeholder Engagement
Community

Toilet Board
Coalition

Helping develop sustainable, large-scalepotential sanitation solutions as a founding
member of this multi-industry group.

NIJIIRO
DIVERSITY

Conducting awareness surveys with this
NPO to identify issues LGBT and othersexual minorities encounter when using
public toilets, with the aim of providing a
comfortable toilet space for all.

WEB

Partnership with UNICEF

PDF

Special Report: The True Cost of Poor Sanitation (10.2MB)

WEB

Toilet Board Coalition

WEB

Activities with NIJIIRO DIVERSITY (Japanese only)

Environmental, Cultural and Social Activities

Environmental
preservation
activities

Encouraging our employees and theirfamilies to participate in voluntary activities
to protect forest and mountain environments
in cooperation with government, NPOs andforestry cooperatives.

Cultural activities

Promoting cultural activities in areas related
to our history, such as management ofceramic and textile museums and galleries,
and publishing.

Sanitation,
environment anduniversal design
educational
activities

Offering educational classes at primaryschools on the global sanitation challenge,
environment and universal design.

WEB

Environmental preservation activities (Japanese only)

WEB

Cultural activities

WEB

Sanitation, environment and universal design educational
activities (Japanese only)WEB

Other Japan-based activities (Japanese only)

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08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRIManagement and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG DATA, SCOPE OF REPORTING
AND GRI
We publish our 2020 action plans, employee and environment-related data,
scope of reporting, and GRI sustainability reporting guidelines comparison charts.

External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

LIXIL Group Corporate Responsibility Report 201983Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > External Evaluations & Awards

08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI

EXTERNAL EVALUATIONS & AWARDS
Evaluations of the Group and Subsidiaries
Award

Year

Award

Year

Won the Deputy Chiefs’ Award given
by Japan’s Minister of Foreign Affairs
at the 2nd Japan SDGs Awards

December 2018

June 2019

Won the Innovation of the Year Awardat Ethical Corporation Responsible Business Awards(for the LIXIL Group's sanitation activities)

October 2018

Empowering Women (WIN) Select Index
for three consecutive years

June 2019

Received the Gold, the highest award level,in the Pride Index 2018
for two consecutive years

October 2018

Included in the S&P Japan 500 ESG Index

June 2019

Included in the S&P/JPX Carbon Efficient Index

September 2018

March 2019

Recognized by Japan Ministry of Economy, Trade andIndustry and Tokyo Stock Exchange as a Certified Healthand Productivity Management Organization
for three consecutive years

February 2018

January 2019

Received the Eruboshi (L Star) certificationfrom Minister of Health, Labor and Welfare based onJapan's Act on Promotion of Women’s Participation
and Advancement in the Workplace

January 2017

Included for the first time in the DJSI World Index,
and for three consecutive years
in the DJSI Asia-Pacific Index

September 2019

External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performance

Included in the FTSE4Good Index Series
and the FTSE Blossom Japan Index
for three consecutive years

Scope of Reporting
GRI Index
TCFD Index

Included in the MSCI Japan

Selected as a Nadeshiko Brand for two consecutive years

Named as a CDP Water 2018 A List company

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Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > External Evaluations & Awards

08
ESG DATA,SCOPE OF REPORTING
AND GRI

Evaluations of Our ProductsAward

Product or brandbeing awarded

Product or brandbeing awardedAward

ESG Data, Scope of Reportingand GRI
External Evaluations & Awards

iF DESIGN AWARD 2019

INAX, GROHE,
American Standard, TOSTEM,
LIXIL, DXV, NITTO CERA

LIXIL ALLER-PURE (allergenmitigating decorative tiles)
and Style Shade (window shades)

Red Dot Award: Product Design 2019

INAX, GROHE,
American Standard, TOSTEM,
LIXIL, DXV, NITTO CERA

2018 Good Design Awards

Resilience Award Grand Prize(Corporate & Industry section),2019 Japan Resilience Awards

Resilience Toilet

Nikkei Sangyo Shimbun Award of Excellence,
2018 Nikkei Superior Products
and Services Awards

Judge Committee Special Award,
7th Technology Management and Innovation Awards

SATO simple toilet systemfor developing countries

12th Kids Design Awards

Action Plan & KPIs
Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index

A total of 11 products of
LIXIL Group brands* American Standard won
the Good Design Best 100 award
for its bathroom products

TCFD Index

Agency for Natural Resources andEnergy Director General Prize,
FY2018 Energy Conservation Awards

TOSTEM LW window

Tatetoku Value(zero energy House)* Awarded to LIXIL TEPCO Smart Partners Incorporated
平成30年度LIXIL Group Corporate Responsibility Report 201985

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Action Plan & KPIs

08

ACTION PLAN & KPIS
KPIs

ESG DATA,SCOPE OF REPORTING
AND GRI

GOVERNANCE

ESG Data, Scope of Reportingand GRI
External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

Compliance
On track

Needs attention

Reorganize Group-wide compliance system and clarify compliance rules
FYE2021 Targets

FYE2019 Progress Details• Establish a system for conducting compliance reviews of appropriately defined business units at afrequency determined using a risk-based approach (annual or biennial)• Establish an effectively functioning system by creating a framework to operate and improve our Groupwide compliance system and allocating appropriate resources (budget and human resources)• Establish a system for holding compliance committee meetings or alternative meetings for eachappropriately defined business unit at least twice a year, and reporting the results in a timely mannerto the Group compliance committee• Conducted the specified number of compliance reviews, completed reporting by the end of March,and reflected in upcoming fiscal year measures (Japan-based companies with a compliancecommittee and companies with accountable managers)• Established compliance committees or alternative meeting structures in all business units worldwide.
Distributed compliance guidelines, including fundamental rules• Held each committee meeting between two to four times a year. Built a framework for timely reportingof meeting results to the Group compliance committee• LIXIL Group compliance committee met four times a year

Progress Level

Strengthening compliance education and training across the GroupFYE2021 Targets• Maintain and improve Group Code of Conduct basic training and acknowledgement mechanism• Create a central framework for planning and tracking history of compliance education and training• Basic training completion and acknowledgement rate: 100%
• Training completion rate by region and employee level: 100%

FYE2019 Progress Details

Progress Level• Basic training completion and acknowledgement rate: 96.1%
96% in Japan and 96.3% outside Japan (LWT EMENA: 90.8%, Americas: 94%, APAC: 100%, LIXIL
Africa: 88%, LBT: 94.5%, four LHT companies (G2J*): 99.8%)*G2J is the abbreviation for Global to Japan. G2J factories are manufacturing facilities located outside Japan that manufacture
products for the Japanese market• Not achieved due to variation in training completion rates by region and employee level. Continue to
implement in FYE2020

Unify Group-wide concern-raising system and ensure familiarity
FYE2021 Targets• Ensure Speak Up! is well known and used as a common system across the Group to track andmanage concerns raised• Use Speak Up! as a point of contact for customers and business partners to raise compliance-related
concerns• Disclose important compliance indicators, including number and summary of concerns raised

FYE2019 Progress Details

Progress Level• Familiarity with the internal concern-raising system in Japan: 63.3%. Number of concerns raised: 187
in Japan and 191 outside Japan (Total: 378)
• Conducted compliance events in each region in October and November to promote education andbuild awareness• Currently preparing an internal system to summarize internal concerns raised. Therefore, external
disclosure is still pending

LIXIL Group Corporate Responsibility Report 201986Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Action Plan & KPIs

08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI
External Evaluations & Awards
Action Plan & KPIs

Risk Management
Establish a risk management framework that seeks to reduce the frequency and minimize the damage of critical events
FYE2021 Targets

FYE2019 Progress Details

Progress Level

Foster a culture in which risks are owned by respective executives (risk owners) in all globalorganizations. Encourage risk owners, the risk management department, and the audit department tocooperate in the promotion of risk countermeasures to control enterprise risks on a daily basis• Risk management systems developed in all Group companies• Group Internal Audit Committee performed quarterly monitoring of response of risk owners tosignificant Group-wide risks• Intend to review a list of Group risks in the upcoming fiscal year, and conduct risk assessmentsof major businesses and regional operations worldwide. Based on the results, we plan to identify
significant management risks and conduct regular monitoring in the appropriate committee

Cultivate a risk management culture across all global organizations to ensure timely escalation ofincidents, and formulate timeline-driven action plans to ensure appropriate initial countermeasures• Crisis management systems developed in all Group companies• Based on the crisis management system established in the previous fiscal year, crisis events that
occurred in Japan and overseas were escalated in a timely manner to Group headquarters• Created a handbook for local companies to ensure thorough initial response and Group-wide
acknowledgement of the escalation rules. Distributed this to local managers via the risk manager
stationed in each region worldwide○

FYE2021 Targets

FYE2019 Progress Details

Progress Level• Ensure the ability to manage and measure activities formulated under the Group Information Security
Policy• Ensure the security incident response framework is functioning across the Group• Ensure prompt responses to changes in security-related environments• Ensure an up-to-date and fully acknowledged policy that complies with all local laws and suits
individual company circumstances• Update the content of security training for employees to reflect changes in the surrounding
environment• Implement an auditing and improvement PDCA cycle as a means of assessing security• Revised our information security regulations and reworked a number of detailed rules• Conducted assessments of eight Group companies in Japan• Detailed information security rules were implemented at LJSS, LIXIL Housing Research Institute, and
LIXIL REALTY, and are now being compiled at LIXIL VIVA
• Conducted two training sessions for 30,000 people on how to respond to targeted mail attacks• Implemented an information security pledge• Information security incidents: 2 malware infections (VINAX and TTC) and 8 ID impersonations• Formed a system to help strengthen security on a global scale, and decided security strengthening
initiatives and implementation schedule for FYE2020

Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

Information Security
Formulate and instill Group Information Security Policy

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Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Action Plan & KPIs

08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI

Intellectual Property Strategy
Introduce a Group Intellectual Property Management Guideline and an IP sharing system, and strengthen the global reach and function of the IP Committee
FYE2021 Targets• Maximize the value of the Group’s intellectual property by conducting PDCA for the global IP
governance structure and processes• Hold IP Committee meetings quarterly

FYE2019 Progress Details• Drew up a draft Group IP Management Guideline. Specified the establishment of the IP Committee• Selected a global IP platform in discussion with all regional operations• Held three global IP Committee meetings with IP Department managers from each region

Launch and explore an IP strategy pilot project and form a Group IP strategy
FYE2021 Targets

External Evaluations & Awards
Action Plan & KPIs

Progress Level• Determine global IP strategy based on the growth strategies of each technology business• Prepare a system for implementing global IP strategy

FYE2019 Progress Details

Progress Level• Launched a new pilot project• Started planning the forming of a global IP operation platform

Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

FAIR BUSINESS PRACTICES
Anti-corruption, Transparent Political Relations and Fair Business
Determine a Group-wide compliance policy and conduct compliance reviews and compliance education and training
FYE2021 Targets• Scope of compliance policy coverage (%)• Completion rate of compliance education and training (%)• Number of compliance violations (incidents)• Adoption rate of global policy and guidelines (%)• Establish a standard program for minimizing corruption risks of our supply chain and agents etc.

FYE2019 Progress Details

Progress Level• Achieved 100% coverage of global compliance policy and guidelines (adoption rate by company
unconfirmed)• Not achieved due to variation in training completion rates by region/specific compliance policy• Number of compliance violations: 0• Determined global guidelines for implementing business partner due diligence. Plan to conduct
training in the FYE2020 and beyond

LIXIL Group Corporate Responsibility Report 201988Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Action Plan & KPIs

08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRIOUR PEOPLE
Diversity and Equal Opportunity
Promote the active participation of women in the workplace
FYE2021 Targets
Achieve at least 30% ratio of women among regularly recruited new hires(LIXIL Corporation, Japan only)

Ratio of female new graduates employed (incl. those who completed graduate studies): 33.2％

Achieve at least 8% ratio of women among managers(LIXIL Corporation, Japan only)• Ratio of women among managers: 5.72%• Implemented policy to register at least 30% of highly qualified regular employees for planned
successor training in order to increase the number of potential female manager candidates

Achieve participation rate in leadership training programs of at least 20%(LIXIL Corporation, Japan only)

Participation in talent acceleration program stage 3 (selective training for young employees): 29.2%

External Evaluations & Awards
Action Plan & KPIs

FYE2019 Progress Details

Progress Level

Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

Rewarding Workplaces
Conduct regular employee opinion surveys across the Group targeting approximately 65,000 employees
FYE2021 Targets
Achieve engagement index of 39% (10% higher than in previous survey)
Achieve work-life balance score of 46% (10% higher than in previous survey)

FYE2019 Progress Details

Progress Level• With the exception of a few organizations (LWT EMENA and H&S), no opinion surveys were conductedin FYE2019• Next survey scheduled for FYE2020

N/A

FYE2019 Progress Details

Progress Level

N/A

Hold regular discussions between the union and the company
FYE2021 Targets
Hold nine meetings of the Central Labor Relations Committee annually (LIXIL Corporation, Japan only)

Held nine meetings of the Central Labor Relations Committee over the year

Create a staffing plan that encourages local employment and talent development
FYE2021 Targets
Achieve 100% fulfillment of our recruitment plan that aims to increase the number of local factory
employees (LIXIL manufacturing subsidiaries)

FYE2019 Progress Details

Progress Level• Achieved 100% fulfillment of the plan (200 people recruited, incl. 1 university graduate, 23 specialist highschool graduates, 16 junior college (two-year college)/technical college graduates, 160 high school graduates)• Regularly visited schools in each area and took part in job fairs to help achieve the target

LIXIL Group Corporate Responsibility Report 201989

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Action Plan & KPIs

08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI
External Evaluations & Awards

Talent Development
Continue talent acceleration program for next-generation leaders and optimize training programs
FYE2021 Targets
Achieve 1,300 participants in the talent acceleration program (TAP) for next-generation leaders(Japan only)

Number of participants to date: 1,195

Achieve 100% uptake of initial 3-year basic education(Japan only)

Percentage uptake of first to third year employees: 100%
first year follow-up training: 218, second year communication training: 183,
third year communication training: 139

Formulate next-generation leader training plans for the Group’s 200 major positions

Achieved 100% coverage of the 160 major positions across the Group (reduced from 200 afterreconfirming the actual necessary number of positions), for which lists of potential emergency interim
managers and potential next and future successor candidates were created, training plans formulated,and discussions held with management on the plans

Provide common learning opportunities for the Group’s 800 next-generation leader personnel

Provided leadership e-learning opportunities using common Group contents for 1,200 employees acrossthe Group. Target achieved in FYE2019, so no training to be conducted in FYE2020

Action Plan & KPIs
Human Resource Performance

FYE2019 Progress Details

Progress Level

Environmental Performance
Scope of Reporting

Occupational Health and Safety

GRI Index
TCFD Index

Build a common Group EHS management system
FYE2021 Targets
Achieve 100% Group-wide coverage of EHS management system

FYE2019 Progress Details

Progress Level• Achieved 100% acquisition of EHS performance data (based on number of employees)• Conducted regular internal audits of EHS management frameworks and their operation at eachbusiness unit

LIXIL Group Corporate Responsibility Report 201990

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Action Plan & KPIs

08

ENVIRONMENT
Environmental Management

ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI

Build a common Group EHS management system
FYE2021 Targets

CO2

100% coverage of Group-wide EHS management system

FYE2019 Progress Details

Progress Level• Achieved 100% acquisition of environmental performance data (offices covered)• Conducted regular internal audits of each business’s environmental management system and its
operation• Application for ISO14001 certification of environmental management systems for all LWT Americas
production facilities is proceeding as planned○

External Evaluations & Awards
Action Plan & KPIs
CO2

Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

Climate Change Mitigation and Adaptation, Sustainable Water Use and Sustainable Use of Resources

Improve environmental values our products and services can offer and reduce environmental impacts across the entire process of our business
FYE2021 Targets

FYE2019 Progress Details

Progress Level• Expand CO2 emissions reduction attributable to Group products and services by 1.36 times v.
FYE2016• Pursue environmentally-conscious designs that consider the entire product lifecycle• Promote the sales expansion of environmentally-conscious products and services• CO2 emission reduction attributable to products and services: improved by 1.21 times (Amount of CO2
emissions reduced: 61,577 thousand t-CO2)• Strengthened sales activities for SAMOS X hybrid insulating window, and PR for PRESEA-H hybrid
thermal windows for communal residential buildings○• Reduce total CO2 emissions from operational processes across the Group by 8% v. FYE2016• Reduce CO2 emission intensity from transportation carried out in Japan by LIXIL as the consigner by 5%• Improve water usage efficiency at high-water risk bases• Raise waste recycling ratio from places of business to at least 95% in Japan and Europe, 66% in Asiaand 40% in North America• CO2 emissions from places of business: increased by 3.2% (Reduced by 4.5% on basis of emission
intensity per unit of output)• CO2 emissions from transportation: reduced by 1.1%
• Set targets for reducing water used and discharged and extending use cases of recycled water at six
high-water risk bases, and promoted related activities• Waste recycling rates: 95% (Japan and Europe), 62% (Asia), and 34% (North America)○

LIXIL Group Corporate Responsibility Report 201991

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Action Plan & KPIs

08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI

SOCIETY
Human Rights
Create LIXIL Group Human Rights Policy and promote awareness among all LIXIL Group employees
FYE2021 Targets
Implement human rights due diligence globally, and define and reduce LIXIL Group business-related
human rights risks for customers, employees, business partners and other stakeholders

FYE2019 Progress Details

Progress Level

Redrafted the existing global expansion plan and formulated a new plan, which will be graduallyextended from Japan to other regions worldwide in the upcoming fiscal year

Create a framework for human rights due diligence
External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance

FYE2021 Targets
Respond swiftly and sincerely to any human rights violations and instigate improvements, regularly
review human rights due diligence frameworks, and ensure highly transparent disclosure of due
diligence activities and processes

Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

FYE2019 Progress Details

Progress Level• Employed existing compliance hotline• Maintained the existing framework for deciding human rights survey contents and processes, which isdriven by the Human Rights Due Diligence Task Force composed of managers from compliance, risk
management, human resources and purchasing departments

Stakeholder Engagement
Help solve sanitation issues
FYE2021 Targets
Offer the benefit of our solutions to a total of 100 million people

FYE2019 Progress Details

Progress Level• Shipped over 2.5 million units of our products (over 12.5 million beneficiaries in total)• Shipped to more than 25 countries so far, including ten new destinations added this year

Research and develop products that can help solve social issues
FYE2021 Targets

Conduct ten research activities using digital and other technologies

FYE2019 Progress Details

Progress Level• Conducted five research activities using digital and other technologies• Made a conference presentation on bathroom accidents among seniors (Presented at the JapaneseSociety of Biometeorology, etc. in cooperation with universities)• Conducted verification testing of night-time monitoring at nursing homes (Conducted using dedicatedsensors since January 2019 in cooperation with Z-Works under our accelerator program), etc.

○

LIXIL Group Corporate Responsibility Report 201992Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Action Plan & KPIs

08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI
External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performance

CUSTOMERS & SUPPLY CHAIN
Responsible Supply Chain Management
Extend our CR procurement process from Japan to the entire GroupFYE2021 Targets
CR survey of Group-wide suppliers• Achieve 90% global coverage ratio (based on purchased amount)• Achieve 90% conformity rate
• Achieve 100% improvement rate

• Coverage ratio: top 90% of suppliers in terms of purchased amount (483 companies in Japan)• Average conformity rate: 93.5% (Japan)• Visited low-rated suppliers and achieved 100% improvement rate

Progress Level○

Product Safety and Quality
Make continuous improvements to the product quality management system
FYE2021 Targets

Scope of Reporting
GRI Index
TCFD Index

FYE2019 Progress Details

Maintain zero cases of serious product accidents across the GroupFYE2019 Progress Details

Progress Level• Critical product-related accidents: 8（Single gas stove: 2, warm-water electronic toilet seat: 2, oilfueled water heater: 1, small electric water heater: 2, bathroom ventilator/dryer/heater: 1）• Conducted product-related crisis management meetings to make reports and discuss corrective
actions• Filed information on accidents in the database and reviewed them one by one to determine if any
corrective actions were necessary. Carried out product improvements and awareness-raising on safe
use as necessary

Monitor customer satisfaction levels and re-evaluate collected data for further improvements
FYE2021 Targets

Conduct customer satisfaction surveys on products and services across the Group, and continuously
monitor and disclose results

FYE2019 Progress Details• Continued to conduct the survey and expanded the scope to:1) product quality
2) showrooms3) call centers4) after-sales maintenance5) sales representatives• Customer satisfaction level: 70.6%

LIXIL Group Corporate Responsibility Report 2019

Progress Level○

93

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Human Resource Performance08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRIHUMAN RESOURCE PERFORMANCEIn recruiting and hiring employees, the LIXIL Group respects
human rights and is committed to ensuring a fair selection
process, recruiting diverse talent irrespective of socialgroup, and building a platform which allows diverse set of
employees to contribute to their full potential.
Includes the following information/data:

External Evaluations & Awards

1. Number of Employees by Type of Employment

Action Plan & KPIs

2. Number of Employees by Country

Human Resource Performance

3. Number of New Hires
4. Number of Retirees and Turnover Rate

Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

FYE2019 Human Resource Performance Data indicatedwith ★ have received the independent practitioner’s
assurance. Past data were revised based on the scopechange in FYE2019. See the Coverage on page 105.

LIXIL Group Corporate Responsibility Report 201994

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Human Resource Performance08
ESG DATA,SCOPE OF REPORTING
AND GRI

LIXIL Group Human Resource Performance Data
1. Number of Employees by Type of Employment ★
Number of
employees (Persons)

ESG Data, Scope of Reportingand GRI

18,187

23.5%

Female

5,879

7.6%

Total

24,066

31.1%

Male

3,340

4.3%

Female

8,141

10.5%

Total

11,481

14.8%

Male total

21,527

27.8%

Female total

14,020

18.1%

Directly
employed total

35,547

45.9%

3,371

4.3%

Permament
staff*1

Action Plan & KPIs
Japan

Directly
employed

Environmental Performance
Scope of Reporting
GRI Index

Nonpermanent
staff*2

Indirectly
employed*3

TCFD Index

Japan total
OutsideJapan

Directly
employed

Employees

Japan

35,590Thailand

8,197

China

5,485

Mexico4,857

Vietnam

5,093

Germany

3,809

USA

2,955

South Africa

1,320

Italy

836

Portugal

532

Indonesia

695

Hong Kong

297

38,918

50.2%

India

Male total

28,18936.4%

Netherlands

407

Female total

10,393

13.4%

Singapore

195

38,58249.8%

Other European region

77,500100%

Other Middle Eastern & African region

453

Other Asian region

844

Outside Japan total
LIXIL Group Grand total

Country

Ratio (%)

Male

External Evaluations & Awards

Human Resource Performance

2. Number of Employees by Country ★

*1 Permanent staff: Employees under a labor contract without a fixed period of employment*2 Non-permanent staff: Employees under a labor contract with a fixed period of employment*3 Indirectly employed: Temporary sub-contract staff* Since each amount in “Ratio” is rounded off, total may not become 100%

1,042

1,002

Other American region

520
74,129* Covers directly hired employees only., Data collected according to location of employment or base region* Other Asian region covers Australia. Other European region covers Russia

LIXIL Group Corporate Responsibility Report 201995

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Human Resource Performance08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI
External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance

Scope of Data Collection
3. Number of New Hires ★

The LIXIL Group employee-related data covers: LIXIL Group Corporation, its four operatingcompanies*1, LIXIL Corporation’s 72 major consolidated subsidiaries (35 companies in

FYE2016

FYE2017

LIXIL
Corp.
Permanent staff

898(new graduates)
Non-permanent staff
Total

472

FYE2018

LIXIL
Corp.
638

261

FYE2019

LIXIL
Corp.
879

Japan*2 and 37 groups/companies outside Japan*3), LIXIL Living Solution Corporation’s three

LIXIL
Corp.

subsidiaries*4. LIXIL Group Finance Corporation’s one subsidiaries*5 and the number of groups
and companies covered is 76 in total. While the majority of LIXIL Group Corporation’s major

349

966

476

consolidated subsidiaries as of March 31, 2019 are covered, please note that the scope of（517） （323） （329） （155） （374） （245）

499

359

human resource performance data differs from the scope of subsidiaries for the consolidated

561

360

1,911

286

1,887

385

2,899

444

1,459

832

2,549

547

2,766

734

3,865

920

financial report.
1

Operating Companies of LIXIL Group Corporation** Directly hired employees in Japan only

Environmental Performance

LIXIL Corporation, LIXIL VIVA CORPORATION,

Scope of Reporting

LIXIL Group Finance Corporation, and LIXIL Living Solution Corporation

GRI Index

4. Number of Retirees and Turnover Rate ★

TCFD Index

FYE2016

FYE2017

LIXIL
Corp.
Permanent staff

Major Consolidated Subsidiaries of LIXIL Corporation
FYE2018

LIXIL
Corp.

FYE2019

LIXIL
Corp.

Consolidated subsidiaries in Japan*2:

LIXIL
Corp.

LIXIL Total Service Corporation, Kawashima Selkon Textiles Co., Ltd., Kawashima Selkon Sewing

624

290

679

250

687

259

694

281

Ltd., Kawashima Bunka Jigyodan Ltd., Benikoya Ltd., LIXIL Logistics Corporation, Maruki Unyu

2.60%

1.71%

2.80%

1.50%

2.86%

1.55%

2.87%

1.66%

Corporation, LIXIL Window Products Inc., Handy Techno Co., Ltd., NITTO CERA Corporation,

Non-permanent staff

1,818

330

1,854

248

1,730

270

1,536

159

Total

2,442

620

2,533

498

2,417

529

2,230

440

Turnover rate*

1*1 Directly hired employees in Japan only* Turnover rate calculation method: The turnover rate uses the number of employees as of April 1 of the fiscal year asa basis for comparison with the number of retirees through March 31 of the same fiscal year

Omi Chemical Pottery Corporation, LIXIL Sales Okinawa Co., Ltd., Fukunaga Glass And Building
Materials Sales Corporation, Sobue Industry Corporation, Safety Partners Corporation, LIXIL
OKINAWA SUZUKI SHUTTER CORPORATION, Sonitech Corporation, LIXIL Travel Corporation,
LIXIL Insurance Service Corporation, LIXIL Total Hanbai Corporation, LIXIL SUZUKI SHUTTERCORPORATION, G TERIOR Corporation, Asahi Tostem Exterior Building Materials Co., Ltd.,LIXIL Toyo Sash Shoji Co., Ltd., LIXIL RENEWAL Corporation, TM.S Corporation Ltd., Kuwata
Co., Ltd., Dinaone Corporation, Oita Tostem Co., Ltd., Nishi Kyushu Tostem Co., Ltd., LIXILTEPCO Smart Partners Inc., blisspa japan Inc., Tokoto Corporation, Grohe Japan KK, andK-engine Inc.

LIXIL Group Corporate Responsibility Report 201996

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Human Resource Performance08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI

Data Collection Method and Period

Consolidated subsidiaries outside Japan*3:
Grohe Group, TOSTEM THAI Co., Ltd., LIXIL Manufacturing (Dalian) Corporation, LIXIL Vietnam
Corporation, LIXIL GLOBAL MANUFACTURING VIETNAM Co., Ltd., LIXIL Thailand Public

The number of employees is calculated on an original registration basis for each company,

Co., Ltd., PT AMERICAN STANDARD INDONESIA, LIXIL Sanitary Fitting Manufacturing

mainly as of March 31, 2019.

(Suzhou) Corporation, LIXIL Building Materials Manufacturing (Suzhou) Corporation, LIXIL
Korea Inc., PT LIXIL ALUMINIUM INDONESIA, Taiwan INAX Corporation, LIXIL PhilippinesLtd., Co., LIXIL India Private Limited,, A-S (China) Co., Ltd., HUAMEI Sanitary Ware Co., Ltd.,

External Evaluations & Awards

Jiangmen LIXIL AS Sanitary Fitting Manufacturing Co., Ltd., LIXIL AS Sanitary Manufacturing

Action Plan & KPIs

(Tianjin) Co., Ltd., LIXIL AS Sanitary Manufacturing (Shanghai) Co., Ltd., LIXIL Australia Pty

Human Resource PerformanceLtd., AS America Inc., LIXIL Canada Inc., LIXIL Housing Products Manufacturing (Shanghai)
Corporation, LIXIL Taiwan Corporation, AS Maquilla Mexico, S. de R.L. de C.V,Decorative

Environmental Performance

Panels International Inc., ASB Ceramica Dominicana S.A.S, LIXIL Myanmar Ltd., LIXIL Trading

Scope of Reporting(Shanghai) Corporation, LIXIL WINDOW SYSTEMS PRIVATE LIMITED,LIXIL International Pte.,GRI Index
TCFD Index

Ltd., LIXIL (China) Investment Co., Ltd, PT LIXIL TRADING INDONESIA,LIXIL India Sanitaryware Private Limited, LIXIL Africa (Pty) Ltd, LIXIL Group (Shanghai) Management Corporation,
and Permasteelisa Group4

Subsidiaries of LIXIL Living Solution Corporation*
Consolidated subsidiaries in Japan:

LIXIL REALTY Corp, JAPAN HOME SHIELD CORPORATION, and LIXIL Housing Research Institute Ltd.
5

Subsidiary of LIXIL Group Finance Corporation*
Consolidated subsidiary in Japan:
LIXIL Home Finance Corporation

LIXIL Group Corporate Responsibility Report 201997

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Environmental Performance08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRIENVIRONMENTAL PERFORMANCEThe LIXIL Group is committed to conserving water, energy,
and other natural resources utilized in our products andservices, across the supply chain from procurement throughproduction, distribution, end use and product disposal. To
that aim, we work hard to gain a clear understanding of total
raw materials and energy inputs as well as CO2, air pollutants
and other emissions, and implement measures to reduce them.

External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

Includes the following information/data:
1. Procurement (Amount of materials purchased, CO2
emissions from procurement)
2. Manufacture / Sales (Energy usage, CO2 emissions
from production and sales activities, water intake, water
discharge, waste emissions, air pollutant emissions)
3. Logistics (Amount of energy used, CO2 emissions fromtransportation)
4. Use of Products (CO2 emissions from product use)
5. CO2 emissions by scope
6. Preventing Pollution through strict control of chemical
substances
FYE2019 Environmental Performance Data indicated with★ have received the independent practitioner’s assurance.
Past data were revised based on the scope change in
FYE2019. See the Coverage on page 105.

LIXIL Group Corporate Responsibility Report 201998

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

ESG Performance

Society

ESG Data, Scope of Reporting and GRI > Environmental Performance08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI

LIXIL Group Environmental Performance Data
1. Procurement ★
Amount purchased

FYE2016

Materials

266,003ｔ

289,108ｔ

297,826ｔ

Plastics raw materials

54,165ｔ57,608ｔ62,344ｔ62,180ｔ

Wood raw materials

146,779ｔ

146,478ｔ

150,413ｔ

153,563ｔ

Ceramics raw materials

462,300ｔ

520,679ｔ446,750ｔ442,088ｔ

921,828ｔ

990,768ｔ

948,616

ｔ955,658ｔ

Total
CO 2 emissions from procurement

Human Resource Performance

Scope 3 Category 1

Environmental Performance

2. Manufacture / Sales ★
Energy usage

Generation ofelectricity*

FYE2016

FYE2017thousand t - CO2

3,326

FYE2016

GRI Index
Purchased electricity

Renewable energy

3,344

FYE2018

thousand t - CO2

FYE2017

3,505

FYE2019thousand t - CO2

FYE2018

thousand t - CO2

3,479

FYE2019

1,187,683 thousand kWh

1,109,943 thousand kWh

1,128,157 thousand kWh

1,127,012 thousand kWh

0 thousand kWh

0 thousand kWh

332 thousand kWh

1,362 thousand kWh

94,541 thousand kWh

106,281 thousand kWh

102,885 thousand kWh

94,157 thousand kWh

24.0 thousand kWh

23.9 thousand kWh

24.0 thousand kWh

23.3 thousand kWh

144 thousand GJ

161 thousand GJ

168 thousand GJ

163 thousand GJ

3

3

3

197,807 thousand m3

Renewable energy

Steam

FYE2019ｔ

Action Plan & KPIs

TCFD Index

FYE2018

258,584

External Evaluations & Awards

Scope of Reporting

FYE2017

Metals raw materials

City gas

175,476 thousand m

201,022 thousand m

Fuel oil

7,140 thousand L

5,924 thousand L

5,240 thousand L

4,974 thousand L

LPG

14,246 thousand kg

16,215 thousand kg

18,835 thousand kg

19,544 thousand kg

LNG

13,257 thousand kg

13,435 thousand kg

14,263 thousand kg

14,463 thousand kg

Kerosene

2,800 thousand L

2,228 thousand L

2,222 thousand L

2,069 thousand L

Gasoline

8,441 thousand L

8,111 thousand L

7,814 thousand L

7,627 thousand L

Diesel3,195 thousand L

3,138 thousand L

3,053 thousand L

2,868 thousand L

Coal

15 thousand t

0 thousand t

0 thousand t

0 thousand t

Energy consumption total

20,654 thousand GJ

21,968 thousand GJ

204,334 thousand m

22,465 thousand GJ

22,182 thousand GJ* Data only covers facilities within the premises of our factories (in-house use only)

LIXIL Group Corporate Responsibility Report 201999

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

ESG Performance

Society

ESG Data, Scope of Reporting and GRI > Environmental Performance08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI

CO2 emissions from production and sales activities

FYE2016

FYE2017

FYE2018

FYE2019591.8 thousand t - CO2

600.0 thousand t - CO2

607.8 thousand t - CO2

606.2 thousand t - CO2

8.6 thousand t - CO2

9.7 thousand t - CO2

10.1 thousand t - CO2

9.8 thousand t - CO2

Scope2 total

600.4 thousand t - CO2

609.7 thousand t - CO2

617.8 thousand t - CO2

616.0 thousand t - CO2

City gas379.0 thousand t - CO2

433.5 thousand t - CO2

440.1 thousand t - CO2

427.9 thousand t - CO2

Purchased electricity
Steam

Fuel oil19.3 thousand t - CO2

16.1 thousand t - CO2

14.2 thousand t - CO2

13.5 thousand t - CO2

External Evaluations & Awards

LPG

42.7 thousand t - CO2

48.6 thousand t - CO2

56.5 thousand t - CO2

58.6 thousand t - CO2

Action Plan & KPIs

LNG

35.8 thousand t - CO2

36.3 thousand t - CO2

38.5 thousand t - CO2

39.0 thousand t - CO2

Kerosene

7.0 thousand t - CO2

5.5 thousand t - CO2

5.5 thousand t - CO2

5.2 thousand t - CO2

Gasoline

19.6 thousand t - CO2

18.8 thousand t - CO2

18.1 thousand t - CO2

17.7 thousand t - CO2

Human Resource Performance
Environmental Performance

Diesel8.2 thousand t - CO2

8.1 thousand t - CO2

7.9 thousand t - CO2

7.4 thousand t - CO2

Scope of ReportingCoal

34.2 thousand t - CO2

0 thousand t - CO2

0 thousand t - CO2

0 thousand t - CO2

GRI Index

Scope 1 total

545.8 thousand t - CO2

566.9 thousand t - CO2

580.9 thousand t - CO2

569.3 thousand t - CO2

Scope 1,2 total

1,146.2 thousand t - CO2

1,176.6 thousand t - CO2

1,198.7 thousand t - CO2

1,185.3 thousand t - CO2

TCFD Index

Water intake

FYE2016

FYE2017

FYE2018

FYE2019(Includes water intake
from other companies)

2,174 thousand m3

2,386 thousand m3

2,423 thousand m3

2,453 thousand m3

Industrial water

3,966 thousand m3

3,621 thousand m3

3,322 thousand m3

3,635 thousand m3

Ground water

3

5,593 thousand m

3

5,307 thousand m

3

6,387 thousand m

35,753 thousand m

Hazardous waste*

River water

6,050 thousand m3

6,713 thousand m3

5,932 thousand m3

4,835 thousand m3* Recycled or landfilled waste that is defined as hazardous by national legislations

777 thousand m3

864 thousand m3

923 thousand m3

936 thousand m3

Potable water

Recycled water
Water intake total

17,783 thousand m3

Water discharge

FYE2016

Water discharge

16,715 thousand m3

18,027 thousand m3 18,064 thousand m3 16,676 thousand m3
FYE2017

FYE2018

FYE2019

16,788 thousand m3 16,859 thousand m3 13,910 thousand m3* Excludes tenanted properties, etc. that we can’t access to assess the water discharge. In FYE2016, LIXIL Total Service
Corporation is excluded

Waste emissions

FYE2016

FYE2017

FYE2018

FYE2019

Sold as valuables

103,330 t

140,041 t

125,373 t

126,473 t

Recycled

123,504 t

136,348 t

141,695 t

161,478 t

Landfilled

140,346 t

147,288 t

139,475 t

118,395 t- t

16,896 t

18,048 t

15,414 t

Air pollutant emissions

FYE2017

FYE2018

FYE2019

NOx

405

t

455

t

529

t

SOx

37

t

54

t

59

t

Soot and dust

523

t

592 t

285 t

* Data covers production sites subject to regulatory monitoring for NOx, SOx, soot and dust emissions* Data for FYE2017 and FYE2018 were revised based on the calculation method change

LIXIL Group Corporate Responsibility Report 2019100

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Environmental Performance08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI
External Evaluations & Awards
Action Plan & KPIs

3. Logistics ★
Amount ofenergy used

FYE2016

FYE2017

FYE2018

FYE2019

Crude oilequivalent basis

44.9

thousandkL

43.8

thousandkL

45.9

thousandkL

45.9

thousandkL

Energy consumption

1,740

thousandGJ

1,698

thousandGJ

1,778

thousandGJ

1,778

thousandGJ

CO2 emissions fromtransportation

FYE2016
119

thousandt - CO2FYE2017thousandt - CO2FYE2018

Human Resource Performance

Scope 3 Category 4

Environmental Performance* Data covers the services which LIXIL Corporation was identified as the consigner

Scope of Reporting

4. Use of Products ★

117

122

thousandt - CO2FYE2019122

thousandt - CO2

CO2 emissions fromproduct use• CO2 emissions (procurement) = (Amount of purchased raw materials) × (CO2 conversion
coefficient)*5+ (Cost of purchasing parts & materials) × (CO2 conversion coefficient)*6• CO2 emissions (manufacture & sales) = (Electricity & Fuel consumption) × (CO2 conversion
coefficient)*7• CO2 emissions (logistics) = (Transported weight) × (Transportation distance) × (CO2 conversion• CO2 emissions (product usage) = (Electricity, Fuel & Water consumption per each product) ×(Amount of sales) × (CO2 conversion coefficient)*9

FYE2016

Scope 3 Category 11 105,526[ CO2 Conversion Coefficients Used to Convert CO2 Emissions ]coefficient)*8

GRI Index
TCFD Index*3 Electricity, fuel: Heat value per unit per energy source as specified in the Act on Rational Use of Energy
Water: Conversion coefficient calculated from CFP (Carbon Footprint of Products) Communication Program, Basic
Database Version 1.01
*4 Unit fuel consumption and unit calorific value using improved tons × distance method as specified in the Act ofRational Use of Energy (Measures Pertaining to Consigners)

FYE2017

FYE2018

FYE2019thousandthousandthousandthousand
115,650
111,627
109,109
t - CO2
t - CO2
t - CO2
t - CO2[ Total Energy Consumption Calculation Method ]• Energy consumption (procurement) = (Amount of purchased raw materials) × (Energy conversion
coefficient)*1 = (Cost of purchasing parts & materials) × (Energy conversion coefficient)*2• Energy consumption (manufacture & sales) = (Electricity, fuel & water consumption) ×*5 Emissions intensity from CFP (Carbon Footprint of Products) Communication Program, Basic Database Version 1.01
*6 E
 missions intensity from Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply
Chain Version 2.4*7 P urchased electricity: Emissions intensity of each country from CO2 EMISSIONS FROM FUEL COMBUSTION 2015
EDITION (IEA)
Fuel: Coefficient of fuel usage as specified in the Act of Rational Use of Energy*8 E missions intensity from unit fuel consumption and unit calorific value using improved tons × distance method as
specified in the Act of Rational Use of Energy (Measures Pertaining to Consigners)*9 Coefficients
for LIXIL brand’s products are as below.
Electricity: 0.447 kg CO2 /kWh (The Japan Electrical Manufacturers’ Association)
City gas: 2.23 kg CO2 /m³ (Japan Valve Manufacturers’ Association)
Water: 0.23 kg CO2 /m³ (Japan Sanitary Equipment Industry Association)
Coefficients for other brands’ products are set by each brand or region of sales(Energy conversion coefficient)*3• Energy consumption (logistics) = (Transported weight) × (Transportation distance) × (Energy
conversion coefficient)*4*1 Conversion coefficient calculated from CFP (Carbon Footprint of Products) Communication Programme, Basic
secondary database Version 1.01
*2 Conversion coefficient calculated from Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout
the Supply Chain Version 2.4[ Value Chain CO2 Emissions Calculation Method ]• Calculated based on Corporate Value Chain (Scope 3) Accounting and Reporting Standard(The Greenhouse Gas Protocol) and Basic Guidelines on Accounting for Greenhouse Gas
Emissions Throughout the Supply Chain Version 2.2 (Ministry of the Environment andMinistry of Economy, Trade and Industry)

LIXIL Group Corporate Responsibility Report 2019101

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Environmental Performance08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI
External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performance

5. CO2 Emissions by Scope
FYE2016

FYE2017

FYE2018

FYE2019

Scope 1 ★

546 thousand t - CO2

567 thousand t - CO2

581 thousand t - CO2

569 thousand t - CO2

Scope 2 ★

600 thousand t - CO2

610 thousand t - CO2

618 thousand t - CO2

616 thousand t - CO2

Scope 3

FYE2016

FYE2017

FYE2018

FYE2019

3,326 thousand t - CO2

3,344 thousand t - CO2

3,505 thousand t - CO2

3,479 thousand t - CO2

Capital goods

298 thousand t - CO2

196 thousand t - CO2

216 thousand t - CO2

201 thousand t - CO2

3

Fuel-and energy-related activities(not included in Scope 1 or 2)

150 thousand t - CO2

161 thousand t - CO2

165 thousand t - CO2

165 thousand t - CO2

4

Upstream transportation & distribution ★

119 thousand t - CO2

117 thousand t - CO2

122 thousand t - CO2

122 thousand t - CO2

387 thousand t - CO2

407 thousand t - CO2

386 thousand t - CO2

308 thousand t - CO2

1

Purchased goods & services ★

2

5

Waste generated operations

Scope of Reporting

6

Business travel

8 thousand t - CO2

7 thousand t - CO2

7 thousand t - CO2

8 thousand t - CO2

GRI Index

7

Employee commuting

28 thousand t - CO2

23 thousand t - CO2

26 thousand t - CO2

29 thousand t - CO2

8

Upstream leased assets*1- 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

105,526 thousand t - CO2

115,650 thousand t - CO2

111,627 thousand t - CO2

109,109 thousand t - CO2

485 thousand t - CO2

496 thousand t - CO2

470 thousand t - CO2

522 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- thousand t - CO2

Scope 3 Total

110,327 thousand t - CO2

120,400 thousand t - CO2

116,525 thousand t - CO2

113,943 thousand t - CO2

Scope 1, 2, 3 Total

111,475 thousand t - CO2

121,578 thousand t - CO2

117,726 thousand t - CO2

115,128 thousand t - CO2

TCFD Index

9

Downstream transportation & distribution*

10

Processing of sold products*2

11

Use of sold products ★

12

End of life treatment of sold products

13

Downstream leased assets*2

2

2

14

Franchises*

15

Investments*2*1 Excluded from the calculation since they are already included in Scope 1 or Scope 2*2 Excluded from the calculation since they are not or less relevant to our main businesses

LIXIL Group Corporate Responsibility Report 2019102

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Environmental Performance08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI

Scope of Data Collection
6. Preventing Pollution through Strict Control of Chemical Substances

In principle, environmental performance data covers all operating companies and theirconsolidated subsidiaries as of March 31 2019, with the exclusion of some consolidated

LIXIL Corporation has set rules on substances that are forbidden or require strict control for

subsidiaries considering their business size and content (Excluding Permasteelisa Group anduse in products and/or during production processes. We manage and monitor our factories in

LIXIL VIVA CORPORATION).

compliance with the Soil Contamination Countermeasures Act and other environmental laws

With regard to non-consolidated subsidiaries, subsidiaries operating in buildings owned

and regulations to ensure the soil and waterways around our manufacturing facilities are notand managed by an operating company of the LIXIL Group are treated as being part of theaffected by our operations.

LIXIL Group. Major production plants of non-consolidated companies are also included in theExternal Evaluations & Awards

scope. Please note that the scope of environmental performance data differs from the scope

Action Plan & KPIs

FYE2016

FYE2017

FYE2018of subsidiaries for the consolidated financial report. Where scope of data is different to thoseFYE2019

No. of environmental law
violations

0

0

0

0

Total amount of fines/
penalties from the above

0

0

0

0

GRI Index

Environmental liability

0

0

0

0

TCFD Index*Scope: Significant violations with fines of US$10,000 or more

Human Resource Performance
Environmental Performance
Scope of Reportingstated above, details are specified in the footnotes.

Operating Companies of the LIXIL Group
LIXIL Corporation, LIXIL Living Solution Corporation, and LIXIL Group Finance Corporation

Major Consolidated Subsidiaries of LIXIL Corporation
Consolidated subsidiaries in Japan:
Kawashima Selkon Textiles Co., Ltd., BENIKOYA Ltd., Asahi Tostem Exterior Building Materials
Co., Ltd., LIXIL Window Products Inc., G TERIOR Corporation, HANDY TECHNO Co., Ltd.,
Dinaone Corporation, NITTO CERA Corporation, blisspa japan Inc., Grohe Japan KK, Omi
Chemical Pottery Corporation, LIXIL Total Hanbai Corporation, LIXIL SUZUKI SHUTTERCORPORATION, LIXIL Toyo Sash Shoji Co., Ltd., TM.S Corporation, LIXIL Total Service
Corporation, LIXIL RENEWAL Corporation, Kuwata Corporation, Oita Tostem Corporation, Nishi
Kyushu Tostem Corporation, LIXIL Sales Okinawa Co., Ltd., Fukunaga Glass And Building
Materials Sales Corporation, Sobue Industry Corporation, Safety Partners Corporation,
LIXIL OKINAWA SUZUKI SHUTTER CORPORATION, Sonitech Corporation, LIXIL Logistics
Corporation, Maruki Unyu Corporation, LIXIL Business Service Corporation, LIXIL Travel
Corporation, and LIXIL Insurance Service Corporation

LIXIL Group Corporate Responsibility Report 2019103

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Environmental Performance08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI

Consolidated subsidiaries outside Japan:

Corporation Procurement, Logistics and Product Usage Data

HUA MEI Sanitary ware Co., Ltd., Jiangmen LIXIL AS Sanitary Fitting Manufacturing Co.,
Ltd., LIXIL AS Sanitary Manufacturing (Tianjin) Co., Ltd., LIXIL AS Sanitary Manufacturing

Procurement:(Shanghai) Co., Ltd., PT AMERICAN STANDARD INDONESIA, LIXIL BUILDING MATERIALSAll raw materials, parts, and packaging materials used for products, which are managed by

MANUFACTURING (SUZHOU) CORPORATION, LIXIL Sanitary Fitting Manufacturing

each procurement department in LIXIL Water Technology and LIXIL Housing Technology are(Suzhou) Corporation, LIXIL Vietnam Corporation, LIXIL (Thailand) Public Co., Ltd., LIXIL India

included in the calculations. Manufacturing equipments and office supplies are excluded from

Sanitaryware Private Limited, LIXIL Korea Inc., PT LIXIL ALUMINIUM INDONESIA, LIXIL GLOBAL

the calculations.

External Evaluations & Awards

MANUFACTURING VIETNAM Co., Ltd., TOSTEM THAI Co., Ltd., LIXIL Manufacturing (Dalian)

Action Plan & KPIs

Corporation, LIXIL Suzuki (Hong Kong) Company, Ltd., American Standard Brands production

Logistics:

sites, and GROHE Group production sites

The scope of data calculation covers only the LIXIL transports which are designated as specified

Human Resource Performance
Environmental Performance

consignor by the Act on the Rational Use of Energy.

Consolidated Subsidiaries of LIXIL Living Solution Corporation
Products usage:

Scope of Reporting
GRI Index

Consolidated subsidiaries in Japan: LIXIL Housing Research Institute, Ltd., LIXIL REALTY, Corp.,

The scope of data calculation covers each brand’s products manufactured by LIXIL Water

and JAPAN HOME SHIELD CORPORATION

Technology, LIXIL Housing Technology, LIXIL Building Technology and Housing & Services Business.

TCFD Index

Consolidated Subsidiary of LIXIL Group Finance Corporation
Consolidated subsidiary in Japan: LIXIL HOME FINANCE, Corp.

LIXIL Group Corporate Responsibility Report 2019104

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Scope of Reporting08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI
External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performance

SCOPE OF REPORTING
Coverage

Independent Practitioner’s Assurance Report

its stakeholders and achieve sustainable growth that benefits

This report covers the CR activities of LIXIL Group

LIXIL Group Corporation has received the independentsociety.

Corporation, as well as LIXIL Corporation and other operating

practitioner’s assurance from Deloitte Tohmatsu

The LIXIL Group is committed to providing prompt andtransparent disclosure in order to earn the long-term trust of

We advance our Corporate Responsibility (CR) activities

subsidiaries.

Sustainability Co., Ltd. for FYE2019 human resourceby establishing lasting relationships with our stakeholders

Please click below for more information on human resources

performance data and environmental performance data

through appropriate disclosure, reporting, and dialogue.

performance data and scope of coverage (page 94 to 97)

marked with a ★ icon.

The details of our CR activities are disclosed on ourand environmental performance data and scope of coverage

website. We also provide an update on our CR activities in(page 98 to 104). For items with a more limited scope of

our annual report.

coverage, please refer to the footnotes for details.

For information on our corporate governance policies,WEB

please see the Corporate Governance section of our website.

CRHuman Resource Performance data andscope of coverage (P94)

Reporting Period

CREnvironmental Performance data andscope of coverage (P98)

Scope of Reporting
GRI Index
TCFD Index

Please direct queries on this report to:
To Link to Our Site or for Other Questions and Comments

We updated and published CR-related information for
FYE2019 (April 1, 2018 to March 31, 2019) on October 30,
2019. We plan to update the report for the next fiscal year in
October 2020.

LIXIL Group Corporate Responsibility Report 2019105

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > Scope of Reporting08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI
External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

LIXIL Group Corporate Responsibility Report 2019106

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > GRI Index

08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI
External Evaluations & Awards

GRI INDEXThis report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option.

GRI 102: General Disclosures
Indicator

102-1

Name of theorganizationa. Name of the organization.

Annual Report
P66 Corporate Data

102-2

Activities, brands,
products, andservicesa. A description of the organization’s activities.
b. Primary brands, products, and services, including
an explanation of any products or services that arebanned in certain markets.

Annual Report
P2 LIXIL Group’s Businesses

102-3

Location of
headquarters

a. Location of the organization’s headquarters.

Annual Report
P66 Corporate Data

102-4

Location ofoperations

a. N umber of countries where the organization operates,
and the names of countries where it has significant
operations and/or that are relevant to the topics coveredin the report.

Annual Report
P25 Global Manufacturing and Sales
Sites

Environmental Performance

102-5

Ownership andlegal forma. Nature of ownership and legal form.

Annual Report
P66 Corporate Data

Markets serveda. Markets served, including:i. geographic locations where products and services
are offered;ii. sectors served;
iii. types of customers and beneficiaries.

Annual Report
P2 LIXIL Group’s Businesses
P25 Global Manufacturing and Sales
Sites

a. Scale of the organization, including:i. total number of employees;
ii. total number of operations;iii. net sales (for private sector organizations) or net
revenues (for public sector organizations);
iv. total capitalization (for private sector organizations)broken down in terms of debt and equity;
v. quantity of products or services provided.

Annual Report
P25 Global Manufacturing and Sales Sites
P60 Consolidated 10-Year Summary
P62 Principal Group Companies
P66 Corporate Data
Annual Securities Report (Available inJapanese):
P2 1. Key Management Indicators
P8 3. Business Overview
P93 1. Consolidated Financial
Statements

Scope of Reporting
GRI Index

102-6

TCFD Index

102-7

102-8

Scale of theorganization

Information on
employees andother workers

a. Total number of employees by employment contract(permanent and temporary), by gender.
b. Total number of employees by employment contract(permanent and temporary), by region.
c. Total number of employees by employment type (full-timeand part-time), by gender.
d. Whether a significant portion of the organization’s activities
CR Report
are performed by workers who are not employees. If
P94 Human Resource Performance
applicable, a description of the nature and scale of work
performed by workers who are not employees.
e. A ny significant variations in the numbers reported inDisclosures 102-8-a, 102-8-b, and 102-8-c (such as
seasonal variations in the tourism or agricultural industries).
f. A n explanation of how the data have been compiled,including any assumptions made.

a. A description of the organization’s supply chain,including its main elements as they relate to theorganization's activities, primary brands, products, andservices.

CR Report
P60 Promoting Responsible
Procurement That Upholds theEnvironment and Labor Safety

102-9

Supply chain

102-10a. S ignificant changes to the organization’s size, structure,
ownership, or supply chain, including:i. Changes in the location of, or changes in,operations, including facility openings, closings, andSignificant changes
expansions;to the organization
ii. Changes in the share capital structure and otherand its supply
capital formation, maintenance, and alteration
chain
operations (for private sector organizations);iii. Changes in the location of suppliers, the structureof the supply chain, or relationships with suppliers,
including selection and termination.

Annual Securities Report (Available inJapanese):
P8 3. Business Overview
P11 4. Subsidiaries Overview

102-11

Precautionary
Principle orapproacha. W hether and how the organization applies the
Precautionary Principle or approach.

CR Report
P47 Environmental Management
P55 Reducing Water Usage andConserving Water in Business Activities
P62 Management of Chemical
Substances
CDP Climate Change Questionnaire
2018https://www.cdp.net/en/

102-12External initiatives

a. A list of externally-developed economic, environmental
and social charters, principles, or other initiatives towhich the organization subscribes, or which it endorses.

CR Report
P6 Supporting International Initiatives

a. A list of the main memberships of industry or otherassociations, and national or international advocacy
organizations.

CR Report
P18 Global Sanitation & Hygiene >Partnerships
P31 Diversity & Equal Opportunity >Empowering Women in the Workplace
P72 Human Rights > Our Approach &System
P75 Key Stakeholder Engagement

1. Organizational Profile

Action Plan & KPIs
Human Resource Performance

Report Page

102-13

Membership ofassociations

2. Strategy

102-14

Statement fromsenior decisionmakera. A statement from the most senior decision-maker ofthe organization (such as CEO, chair, or equivalentsenior position) about the relevance of sustainability
to the organization and its strategy for addressing
sustainability.

CR Report
P4 Message from the CEO
P5 Message from CR Committee
Chairperson102-15Key impacts, risks,and opportunities

a. A description of key impacts, risks, and opportunities.

Annual Report
P12 LIXIL’s Business Landscape
Annual Securities Report (Available inJapanese):
P17 2. Business-Related Risks

LIXIL Group Corporate Responsibility Report 2019107

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > GRI Index

08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRIGRI INDEX
3. Ethics and Integrity
102-16102-17

Values, principles,standards, andnorms of behavior

a. A description of the organization’s values, principles,standards, and norms of behavior.

Mechanisms
for advice andconcerns about
ethicsa. A description of internal and external mechanisms for:i. seeking advice about ethical and lawful behavior,and organizational integrity;
ii. reporting concerns about unethical or unlawful
behavior, and organizational integrity.

CR Report
P8 LIXIL CORE, LIXIL Behaviors
Annual Report
P58 Internal Control Systems
CR Report
P73 Human Rights > Concern-Raising
System102-23a. W hether the chair of the highest governance body is also
an executive officer in the organization.
b. I f the chair is also an executive officer, describe his or
her function within the organization's management andthe reasons for this arrangement.

Annual Report
P44 Board of Directors of LIXIL Group
Corporation
Annual Securities Report (Available inJapanese):
P50 4. (2) Corporate Officers
Website:About Us > Governance Framework
https://www.lixil.com/en/about/governance/framework.html

a. Nomination and selection processes for the highest
governance body and its committees.
b. Criteria used for nominating and selecting highest
Nominating andgovernance body members, including whether and how:selecting thei. stakeholders (including shareholders) are involved;
highest governanceii. diversity is considered;bodyiii. independence is considered;iv. expertise and experience relating to economic,
environmental, and social topics are considered.

Annual Report
P56 Procedures and Policies
Regarding the Nomination of Director
Candidates, the Removal of Directors,
and the Appointment and the Removalof Executive Officers
LIXIL Group Corporate Governance
Guidelines
P14 Article 20 Composition of
the Board of Directors, Article 22
Composition of Nomination Committee,
Compensation Committee, and Audit
Committee, Article 23 Policy for
Nomination of Director Candidates andRemoval of Directors
P16 Article 24 Policy for Appointment,
Election, Removal and Dismissal of
Executive Officers and Representative
Executive Officer (CEO)P20 Article 28
Independence Criteria
Website:About Us > Governance Framework
https://www.lixil.com/en/about/governance/framework.html

Chair of the highest
governance body

4. Governance102-18Governancestructurea. G overnance structure of the organization, including
committees of the highest governance body.
b. Committees responsible for decision-making one economic,
environmental, and social topics.

Annual Report
P50 Corporate Governance at the LIXILGroup
CR Report
P10 CR Management Structure102-19Delegating
authoritya. P rocess for delegating authority for economic,
environmental, and social topics from the highest
governance body to senior executives and other
employees.

Annual Report
P50 Corporate Governance at the LIXILGroup
CR Report
P10 CR Management Structure102-20Executive-level
responsibility
for economic,
environmental,
and social topics

a. W hether the organization has appointed an executive
level position or positions with responsibility foreconomic, environmental, and social topics.
b. Whether post holders report directly to the highest
governance body.

Annual Report
P50 Corporate Governance at the LIXILGroup
CR Report
P10 CR Management Structure102-21

Consulting
stakeholders
on economic,
environmental, andsocial topics

a. Processes for consultation between stakeholders and thehighest governance body on economic, environmental,
and social topics.
b. If consultation is delegated, describe to whom it isdelegated and how the resulting feedback is provided tothe highest governance body.

Annual Report
P50 Corporate Governance at the LIXILGroup
CR Report
P10 CR Management Structure102-22a. Composition of the highest governance body and its
committees by:i. executive or non-executive;ii. independence;iii. tenure on the governance body;
Composition of theiv. number of each individual’s other significant
highest governancepositions and commitments, and the nature of the
body and its
commitments;
committees
v. gender;
vi. membership of under-represented social groups;vii. competencies relating to economic, environmental,
and social topics;viii. stakeholder representation.

External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

Annual Report
P50 Corporate Governance at the LIXILGroup
Annual Securities Report (Available inJapanese):
P50 4. (2) Corporate Officers

102-24102-25

Conflicts of interest

a. Processes for the highest governance body to ensure
conflicts of interest are avoided and managed.
b. Whether conflicts of interest are disclosed to
stakeholders, including, as a minimum:
i. Cross-board membership;
ii. Cross-shareholding with suppliers and otherstakeholders;iii. Existence of controlling shareholder;iv. Related party disclosures.

LIXIL Group Corporate Governance
Guidelines
P12 Article 19 Role and Duties of theBoard of Directors
P19 Article 26 Duties of Independent
Outside Directors
Annual Securities Report (Available inJapanese):
P50 4. (2) Corporate Officers

LIXIL Group Corporate Responsibility Report 2019108

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

ESG Performance

Society

ESG Data, Scope of Reporting and GRI > GRI Index

08

GRI INDEXESG DATA,SCOPE OF REPORTING
AND GRI
102-26

ESG Data, Scope of Reportingand GRI
External Evaluations & Awards

102-27

Action Plan & KPIs

Role of highest
governance bodyin setting purpose,values, andstrategy

Collective
a. Measures taken to develop and enhance the highest
knowledge ofgovernance body’s collective knowledge of economic,
highest governanceenvironmental, and social topics.
body

Human Resource Performance
Environmental Performance102-28

Scope of Reporting

Evaluating
the highest
governance body’s
performance

GRI Index
TCFD Index
102-29a. Highest governance body’s and senior executives’ rolesin the development, approval, and updating of theorganization’s purpose, value or mission statements,
strategies, policies, and goals related to economic,
environmental, and social topics.

Identifying
and managing
economic,
environmental,
and social impacts

Annual Report
P36 LIXIL’s Material Issues
LIXIL Group Corporate Governance
Guidelines
P12 Article 19 Role and Duties of theBoard of Directors
P19 Article 26 Duties of Independent
Outside Directors
Annual Securities Report (Available inJapanese):
P50 4. (2) Corporate Officers
CR Report
P74 Stakeholder Engagement >Relationship with Stakeholders

a. Processes for evaluating the highest governance body’s
performance with respect to governance of economic,
environmental, and social topics.
b. Whether such evaluation is independent or not, and its
frequency.
c. Whether such evaluation is a self-assessment.
d. Actions taken in response to evaluation of thehighest governance body’s performance with respect
to governance of economic, environmental, andsocial topics, including, as a minimum, changes inmembership and organizational practice.

LIXIL Group Corporate Governance
Guidelines
P23 Article 32 Board of Directors SelfEvaluation

a. Highest governance body’s role in identifying andmanaging economic, environmental, and social topics
and their impacts, risks, and opportunities – including its
role in the implementation of due diligence processes.
b. Whether stakeholder consultation is used to support
the highest governance body's identification andmanagement of economic, environmental, and social
topics and their impacts, risks, and opportunities.

Annual Report
P50 Corporate Governance at the LIXILGroup
CR Report
P10 CR Management Structure
P11 Material Issues

a. Highest governance body’s role in reviewing theeffectiveness of the organization’s risk management
processes for economic, environmental, and social
topics.

Annual Report
P57 Internal Control Systems

a. Frequency of the highest governance body’s review of
economic, environmental, and social topics and theirimpacts, risks, and opportunities.

Annual Report
P52 Activities of the Board of Directors
and Board Committees
CR Report
P10 CR Management Structure102-30Effectiveness ofrisk management
processes

102-31

Review of
economic,
environmental, andsocial topics

102-32Highesta. The highest committee or position that formally reviews
governance body’s
and approves the organization’s sustainability report and role in sustainability
ensures that all material topics are covered.
reporting102-33

Communicating
critical concerns

a. Process for communicating critical concerns to thehighest governance body.

Annual Report
P57 Internal Control Systems

Nature and total
number of criticalconcerns

a. Total number and nature of critical concerns that werecommunicated to the highest governance body.
b. Mechanism(s) used to address and resolve criticalconcerns.

-102-35

Remuneration
policies

a. Remuneration policies for the highest governancebody and senior executives for the following types of
remuneration:i. Fixed pay and variable pay, including performancebased pay, equity-based pay, bonuses, and deferredor vested shares;
ii. Sign-on bonuses or recruitment incentive payments;
iii. Termination payments;
iv. Clawbacks;
v. Retirement benefits, including the difference
between benefit schemes and contribution rates forthe highest governance body, senior executives, andall other employees.
b. How performance criteria in the remuneration policies
relate to the highest governance body's and senior
executives’ objectives for economic, environmental, andsocial topics.

Annual Report
P54 Corporate Officer Compensation
Annual Securities Report (Available inJapanese):
P76 (4) Corporate Officer
Compensation
CR Report
P48 Environmental Management >Environmental Education and Internal
Evaluation

102-36

Process fordetermining
remunerationa. Process for determining remuneration.
b. Whether remuneration consultants are involved indetermining remuneration and whether they are
independent of management.
c. Any other relationships that the remuneration consultants
have with the organization.

Annual Report
P54 Corporate Officer Compensation
Annual Securities Report (Available inJapanese):
P76 (4) Corporate Officer
Compensation

102-37

Stakeholders’involvement inremunerationa. How stakeholders’ views are sought and taken into
account regarding remuneration.
b. If applicable, the results of votes on remuneration
policies and proposals.

-

102-38Annual totalcompensation ratioa. Ratio of the annual total compensation for theorganization’s highest-paid individual in each countryof significant operations to the median annual totalcompensation for all employees (excluding the highest
paid individual) in the same country.

-

102-39Percentage
increase in annual
total compensation
ratio

a. Ratio of the percentage increase in annual totalcompensation for the organization's highest-paid
individual in each country of significant operations
to the median percentage increase in annual totalcompensation for all employees (excluding the highest
paid individual) in the same country.

-

102-34

5. Stakeholder Engagement102-40

List of stakeholder
groupsa. A list of stakeholder groups engaged by the organization.

CR Report
P75 Stakeholder Engagement > Key
Stakeholder Engagement102-41

Collective
bargaining
agreements

a. Percentage of total employees covered by collective
bargaining agreements.

CR Report
P37 Rewarding Workplaces > LaborManagement Relationship

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ESG DATA,SCOPE OF REPORTING
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External Evaluations & Awards
Action Plan & KPIs

GRI INDEX
102-42

Identifying
and selecting
stakeholdersa. The basis for identifying and selecting stakeholders withwhom to engage.

CR Report
P74 Stakeholder Engagement > Our
Approach102-43

Approach to
stakeholder
engagement

a. The organization’s approach to stakeholder engagement,
including frequency of engagement by type and by
stakeholder group, and an indication of whether any ofthe engagement was undertaken specifically as part of
the report preparation process.

CR Report
P36 Rewarding Workplaces >Employee Opinion Surveys
P74 Stakeholder Engagement102-44

Key topics andconcerns raised

Annual Securities Report (Available inJapanese):
P8 3. Business Overview
P11 4. Subsidiaries Overview
Annual Report
P62 Principal Group CompaniesCR
ReportP105 Scope of Reporting

Entities includedin the consolidated
financialstatementsa. A list of all entities included in the organization’s
consolidated financial statements or equivalent
documents.
b. Whether any entity included in the organization’s
consolidated financial statements or equivalent documents
is not covered by the report.

102-46

Defining reportcontent and topic
Boundaries

a. An explanation of the process for defining thereportcontent and the topic Boundaries.
CR Report
b. An explanation of how the organization has implemented P11 Material Issues
the Reporting Principles for defining report content.

102-47

List of material
topicsa. A list of the material topics identified in the process fordefining report content.

102-48

Restatements of
informationa. The effect of any restatements of information given inprevious reports, and the reasons for such restatements.

102-49Changes inreportinga. Significant changes from previous reporting periods in thelist of material topics and topic Boundaries.

N/A

102-50

Reporting period

a. Reporting period for the information provided.

CR Report
P2 Contents
P105 Scope of Reporting > Reporting
Period102-45

Scope of Reporting
GRI Index
TCFD Index

Date of most recent
reportCorporate Responsibility Report 2018a. If applicable, the date of the most recent previous report. https://www.lixil.com/en/sustainability/
reporting/pdf/LIXIL_CR2018_en.pdf

102-52

Reporting cycle

a. Reporting cycle.

102-53

Contact point fora. The contact point for questions regarding the report orquestions regarding
its contents.
the report102-54Claims of reportingin accordance with
the GRI Standards

a. The claim made by the organization, if it has prepared areport in accordance with the GRI Standards, either:i. ‘This report has been prepared in accordance with
the GRI Standards: Core option’;ii. ‘This report has been prepared in accordance with
the GRI Standards: Comprehensive option’.

GRI content index

a. The GRI content index, which specifies each of the GRI
Standards used and lists all disclosures included in thereport.
b. For each disclosure, the content index shall include:i. the number of the disclosure (for disclosurescovered by the GRI Standards);
CR Report
ii. the page number(s) or URL(s) where the information P107 GRI Index
can be found, either within the report or in otherpublished materials;
iii. if applicable, and where permitted, the reason(s)for omission when a required disclosure cannot be
made.

External assurance

a. A description of the organization's policy and current
practice with regard to seeking external assurance forthe report.
b. If the report has been externally assured:i. A reference to the external assurance report,
statements, or opinions. If not included in theassurance report accompanying the sustainability
report, a description of what has and what has notbeen assured and on what basis, including theassurance standards used, the level of assurance
obtained, and any limitations of the assurance
process;ii. The relationship between the organization and theassurance provider;iii. Whether and how the highest governance bodyorsenior executives are involved in seeking external
assurance for the organization’s sustainability
report.

6. Reporting Practice

Human Resource Performance
Environmental Performancea. Key topics and concerns that have been raised throughstakeholder engagement, including:
CR Report
i. how the organization has responded to those key
P36 Rewarding Workplaces >topics and concerns, including through its reporting;
Employee Opinion Surveys
ii. the stakeholder groups that raised each of the key
topics and concerns.

102-51

102-55

CR Report
P11 Material Issues

102-56

CR Report
P105 Scope of Reporting > Reporting
PeriodCR Report
P105 Scope of Reporting

This report has been prepared inaccordance with the Global Reporting
Initiative (GRI) Standards: Core option.

CR Report
P106 Independent Assurance

LIXIL Group Corporate Responsibility Report 2019110Commitment

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ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRIGRI INDEXGRI 103: Management Approach
Indicator
103：Management Approach

103-1

Explanation of thematerial topic andits Boundary

External Evaluations & Awards

a. An explanation of why the topic is material.
b. The Boundary for the material topic, which includes a
description of:i. where the impacts occur;ii. the organization’s involvement with the impacts. For
example, whether the organization has caused orcontributed to the impacts, or is directly linked tothe impacts through its business relationships.
c. Any specific limitation regarding the topic Boundary.

CR Report
P11 Material Issues

a. An explanation of how the organization manages the
topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the management
approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives.

CR Report
P10 CR Management Structure
P11 Material Issues
P12 Corporate Responsibility Strategy
P13-27 Three Strategic Pillars
P30 Diversity & Equal Opportunity >Our Approach, Our System
P35 Rewarding Workplaces > Our
Approach, Our System
P38 Talent Development > Our
Approach, Our System
P41 Occupational Health & Safety >Our Approach, Our System
P47 Environmental Management > Our
Approach, Our System
P60 Responsible Supply Chain
Management > Our Approach &System
P63 Product Safety & Quality > Our
Approach, Management Structure
P67-68 Customer Satisfaction > Our
Approach & System, Implementing theSix Sigma Quality Management Method
P72 Human Rights > Our Approach& System, Human Rights Principles
P73 Human Rights > Concern-Raising
System
P78 Community > Our Approach &System
P86-93 Action Plan & KPIs

a. An explanation of how the organization evaluates the
management approach, including:i. the mechanisms for evaluating the effectivenessofthe management approach;ii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

CR Report
P84 External Evaluations & Awards
P86-93 Action Plan & KPIs

Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
103-2

103-3

The management
approach and its
components

Evaluation of the
management
approach

Indicator

Report Page

201: Economic Performance

Action Plan & KPIs

TCFD Index

GRI 200: Economic Topics
Report Page

201-1

201-2

Direct economic
value generated
and distributed

WebsiteInvestor Relations > Financial
Information
a. Direct economic value generated and distributed
https://www.lixil.com/en/investor/(EVG&D) on an accruals basis, including the basic
financial/components for the organization’s global operations
Website:as listed below. If data are presented on a cash basis,
For our retail investors > LIXIL Group
report the justification for this decision in addition to
overview
reporting the following basic components:
https://www.lixil.com/jp/investor/
i. Direct economic value generated: revenues;
private/about.html (Japanese Only)
ii. Economic value distributed: operating costs,
CR Report
employee wages and benefits, payments to providers
P75 Key Stakeholder Engagement >of capital, payments to government by country, andGovernment Authorities and Industrial
community investments;
Associations
iii. Economic value retained: ‘direct economic value
P78 Community > Our Approach
generated’ less ‘economic value distributed’.
& System > Social Contribution
b. Where significant, report EVG&D separately at country,
Expenditures
regional, or market levels, and the criteria used for
Annual Securities Report (Available indefining significance.
Japanese):
P93 1. Consolidated Financial
Statements

Financial
implications andother risks andopportunities due
to climate changea. Risks and opportunities posed by climate change thathave the potential to generate substantive changes inoperations, revenue, or expenditure, including:i. a description of the risk or opportunity and its
classification as either physical, regulatory, or other;ii. a description of the impact associated with the risk
or opportunity;iii. the financial implications of the risk or opportunity
before action is taken;
iv. the methods used to manage the risk or opportunity;v. the costs of actions taken to manage the risk oropportunity.

Annual Report
P12 LIXIL’s Business Landscape
CR Report
P49 Environmental Disclosures

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GRI INDEXESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI
201-3

Defined benefit
plan obligations
and otherretirement plans

External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
TCFD Index
201-4

a. If the plan’s liabilities are met by the organization’s
general resources, the estimated value of those liabilities.
b. If a separate fund exists to pay the plan’s pension
liabilities:
i. the extent to which the scheme’s liabilities are
estimated to be covered by the assets that havebeen set aside to meet them;ii. the basis on which that estimate has been arrived
at;iii. when that estimate was made.
c. If a fund set up to pay the plan’s pension liabilities is not
fully covered, explain the strategy, if any, adopted by theemployer to work towards full coverage, and the timescale, if any, by which the employer hopes to achieve fullcoverage.
d. Percentage of salary contributed by employee or
employer.
e. Level of participation in retirement plans, such as
participation in mandatory or voluntary schemes,
regional, or country-based schemes, or those withfinancial impact.

a. Total monetary value of financial assistance received by
the organization from any government during the reporting
period, including:i. tax relief and tax credits;
ii. subsidies;iii. investment grants, research and development
grants, and other relevant types of grant;
Financial
iv. awards;
assistance received
v. royalty holidays;
from government
vi. financial assistance from Export Credit Agencies(ECAs);
vii. financial incentives;
viii. other financial benefits received or receivable fromany government for any operation.
b. The information in 201-4-a by country.
c. Whether, and the extent to which, any government ispresent in the shareholding structure.

202-2

a. Percentage of senior management at significant locations
Proportion of seniorof operation that are hired from the local community.
management hiredb. The definition used for ‘senior management’.
from the local
c. The organization’s geographical definition of ‘local’.
communityd. The definition used for ‘significant locations of operation’.

203: Indirect Economic Impacts
Annual Securities Report (Available inJapanese):
P113 1. Consolidated Financial
Statements > Note on the Consolidated
Financial Statements > 14. Employee
Benefits

203-1

Infrastructure
investments andservices supported

a. Extent of development of significant infrastructure
investments and services supported.
b. Current or expected impacts on communities and local
CR Report
economies, including positive and negative impacts
P14-19 Global Sanitation & Hygiene
where relevant.
P78-82 Communityc. Whether these investments and services are commercial,
in-kind, or pro bono engagements.

203-2

Significant indirect
economic impacts

a. Examples of significant identified indirect economic impactsof the organization, including positive and negative impacts.
b. Significance of the indirect economic impacts in thecontext of external benchmarks and stakeholder
priorities, such as national and international standards,
protocols, and policy agendas.

CR Report
P14-19 Global Sanitation & Hygiene
P78-82 Community

a. Percentage of the procurement budget used forsignificant locations of operation that is spent on
suppliers local to that operation (such as percentage of
products and services purchased locally).
b. The organization’s geographical definition of ‘local’.
c. The definition used for ‘significant locations of operation’.

CR Report
P60 Responsible Supply Chain
Management > Procurement
Transaction Amount Breakdown byCountry

Operations
assessed forrisks related tocorruption

a. Total number and percentage of operations assessed forrisks related to corruption.
b. Significant risks related to corruption identified throughthe risk assessment.

-

Communicationand training aboutanti-corruption
policies andprocedures

a. Total number and percentage of governance bodymembers that the organization's anti-corruption policies
and procedures have been communicated to, broken
down by region.
b. Total number and percentage of employees that theorganization’s anti-corruption policies and procedures
have been communicated to, broken down by employee
category and region.
c. Total number and percentage of business partners thatthe organization’s anti-corruption policies and procedures
have been communicated to, broken down by type ofbusiness partner and region. Describe if the organization’s
anti-corruption policies and procedures have beencommunicated to any other persons or organizations.
d. Total number and percentage of governance bodymembers that have received training on anti-corruption,broken down by region.
e. Total number and percentage of employees that havereceived training on anti-corruption, broken down by
employee category and region.

CR Report
P88 Action Plan & KPIs > Fair
Business Practices

204: Procurement Practices

204-1
CR Report
P75 Key Stakeholder Engagement >Government Authorities and Industrial
Associations

Proportion of
spending on local
suppliers

205: Anti- Corruption

205-1

202: Market Presence

202-1

Ratios of standard
entry level wage by
gender comparedto local minimum
wage

a. When a significant proportion of employees arecompensated based on wages subject to minimum wage
rules, report the relevant ratio of the entry level wage
by gender at significant locations of operation to theminimum wage.
b. When a significant proportion of other workers (excluding
employees) performing the organization’s activities arecompensated based on wages subject to minimum wage rules, describe the actions taken to determine whether
these workers are paid above the minimum wage.
c. Whether a local minimum wage is absent or variable
at significant locations of operation, by gender. In
circumstances in which different minimums can be used
as a reference, report which minimum wage is being used.
d. The definition used for ‘significant locations of operation’.

205-2

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Strategic Pillars

Our People

Environment

Customers & Supply Chain

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ESG Performance

ESG Data, Scope of Reporting and GRI > GRI Index

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ESG DATA,SCOPE OF REPORTING
AND GRIGRI INDEX

205-3

ESG Data, Scope of Reportingand GRI

Confirmed
incidents ofcorruption andactions takena. Total number and nature of confirmed incidents ofcorruption.
b. Total number of confirmed incidents in which employees
were dismissed or disciplined for corruption.
CR Reportc. Total number of confirmed incidents when contracts with
P88 Action Plan & KPIs > Fairbusiness partners were terminated or not renewed due
Business Practices
to violations related to corruption.
d. Public legal cases regarding corruption brought against
the organization or its employees during the reporting
period and the outcomes of such cases.

206: Anti-Competitive Behavior

External Evaluations & Awards
Action Plan & KPIs

206-1

Human Resource Performance
Environmental Performancea. Number of legal actions pending or completed during theLegal actions forreporting period regarding anti-competitive behavior andanti-competitive
CR Report
violations of anti-trust and monopoly legislation in which
behavior, anti-trust,
P88 Action Plan & KPIs > Fairthe organization has been identified as a participant.
and monopoly
Business Practices
b. Main outcomes of completed legal actions, including
practices
any decisions or judgments.

302-2

Energyconsumption
outside of theorganizationa. Energy consumption outside of the organization, injoules or multiples.
b. Standards, methodologies, assumptions, and/or
calculation tools used.
c. Source of the conversion factors used.

CR Report
P99 Environmental Performance >Manufacture / Sales

Energy intensity

a. Energy intensity ratio for the organization.
b. Organization-specific metric (the denominator) chosen
to calculate the ratio.
c. Types of energy included in the intensity ratio; whether
fuel, electricity, heating, cooling, steam, or all.
d. Whether the ratio uses energy consumption within theorganization, outside of it, or both.

CR Report
P101 Environmental Performance >Total Energy Consumption Calculation
MethodReductionof energy
consumption

a. Amount of reductions in energy consumption achieved
as a direct result of conservation and efficiency
initiatives, in joules or multiples.
b. Types of energy included in the reductions; whether fuel,CR Report
electricity, heating, cooling, steam, or all.
P99 Environmental Performance >c. Basis for calculating reductions in energy consumption,
Manufacture / Sales
such as base year or baseline, including the rationale forchoosing it.
d. Standards, methodologies, assumptions, and/or
calculation tools used.

Report Page

301: Materials

GRI Index
TCFD Index

302-1

a. Total fuel consumption within the organization from nonrenewable sources, in joules or multiples, and including
fuel types used.
b. Total fuel consumption within the organization fromrenewable sources, in joules or multiples, and including
fuel types used.
c. In joules, watt-hours or multiples, the total:
i. electricity consumption
ii. heating consumption
Energyiii. cooling consumption
consumption within
iv. steam consumption
the organizationd. In joules, watt-hours or multiples, the total:
i. electricity soldii. heating soldiii. cooling soldiv. steam solde. Total energy consumption within the organization, injoules or multiples.
f. Standards, methodologies, assumptions, and/or
calculation tools used.
g. Source of the conversion factors used.

GRI 300: Environmental Topics Indicator
Indicator

Scope of Reporting

302: Energy

301-1

Materials used byweight or volume

a. Total weight or volume of materials that are used to
produce and package the organization's primary
products and services during the reporting period, by:i. non-renewable materials used;
ii. renewable materials used.

CR Report
P99 Environmental Performance >Procurement

301-2

Recycled input
materials used

a. Percentage of recycled input materials used to
manufacture the organization's primary products andservices.

-

301-3

Reclaimed
products andtheir packaging
materials

a. Percentage of reclaimed products and their packaging
materials for each product category.
b. How the data for this disclosure have been collected.

-

302-3

302-4

CR Report
P99 Environmental Performance >Manufacture / Sales

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ESG DATA,SCOPE OF REPORTING
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302-5

Reductions
in energy
requirements
of products andservices

303-1

Water withdrawal
by source

Water sources
significantly
affected bywithdrawal of watera. Total number of water sources significantly affected bywithdrawal by type:i. Size of the water source;
ii. Whether the source is designated as a nationally orinternationally protected area;iii. Biodiversity value (such as species diversity andendemism, and total number of protected species);
iv. Value or importance of the water source to local
communities and indigenous peoples.
b. Standards, methodologies, and assumptions used.

CR Report
P55 Sustainable Water Use >Identifying Water Risks in Our
Production Facilities

Water recycled andreuseda. Total volume of water recycled and reused by theorganization.
b. Total volume of water recycled and reused as apercentage of the total water withdrawal as specified inDisclosure 303-1.
c. Standards, methodologies, and assumptions used.

CR Report
P55 Sustainable Water Use >Introducing Wastewater Recycling
Systems

Environmental Performance
Scope of Reporting
303-2

TCFD Index

303-3

Operational sites
owned, leased,managed in,or adjacent to,protected areas
and areas of highbiodiversity value
outside protectedareas

a. For each operational site owned, leased, managed
in, or adjacent to, protected areas andareas of highbiodiversity value outside protected areas, the following
information:i. Geographic location;ii. Subsurface and underground land that may be
owned, leased, or managed by the organization;iii. Position in relation to the protected area (in the area,adjacent to, or containing portions of the protectedarea) or the high biodiversity value area outside
protected areas;
iv. Type of operation (office, manufacturing or
production, or extractive);v. Size of operational site in km2 (or another unit, if
appropriate);vi. Biodiversity value characterized by the attributeofthe protected area or area of high biodiversity
value outside the protected area (terrestrial,
freshwater, or maritime ecosystem);vii. Biodiversity value characterized by listing ofprotected status (such as IUCN Protected Area
Management Categories, Ramsar Convention,national legislation).

Significant impactsof activities,
products, andservices on
biodiversity

a. Nature of significant direct and indirect impacts on
biodiversity with reference to one or more of the following:i. Construction or use of manufacturing plants, mines,
and transport infrastructure;ii. Pollution (introduction of substances that do
not naturally occur in the habitat from point andnonpoint sources);iii. Introduction of invasive species, pests, andpathogens; Reduction of species; Habitat
conversion;
iv. Changes in ecological processes outside the naturalrange of variation (such as salinity or changes ingroundwater level).
b. Significant direct and indirect positive and negative
impacts with reference to the following:i. Species affected;
ii. Extent of areas impacted;
iii. Duration of impacts;
iv. Reversibility or irreversibility of the impacts.

Habitats protectedor restored

a. Size and location of all habitat areas protected or
restored, and whether the success of the restoration
measure was or is approved by independent external
professionals.
b. Whether partnerships exist with third parties to protect
or restore habitat areas distinct from where theorganization has overseen and implemented restorationor protection measures.
c. Status of each area based on its condition at the close of
the reporting period.
d. Standards, methodologies, and assumptions used.

CR Report
P101 Environmental Performance >Use of Productsa. Total volume of water withdrawn, with a breakdown by
the following sources:
i. Surface water, including water from wetlands, rivers,
lakes, and oceans;ii. Ground water;
CR Reportiii. Rainwater collected directly and stored by the
P100 Environmental Performance >organization;
Manufacture / Sales
iv. Waste water from another organization;
v. Municipal water supplies or other public or private
water utilities.
b. Standards, methodologies, and assumptions used.

Human Resource Performance

GRI Index

304: Biodiversity

303: Water

External Evaluations & Awards
Action Plan & KPIs

a. Reductions in energy requirements of sold products andservices achieved during the reporting period, in joules
or multiples.
b. Basis for calculating reductions in energy consumption,such as base year or baseline, including the rationale forchoosing it.
c. Standards, methodologies, assumptions, and/or
calculation tools used.

304-1

304-2

304-3

-

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ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRIGRI INDEX

304-4

IUCN Red
List species
and national
conservation
list species with
habitats in areas
affected byoperations

a. Total number of IUCN Red List species and national
conservation list species with habitats in areas affectedby the operations of the organization, by level ofextinction risk:
i. Critically endangered
ii. Endangerediii. Vulnerable
iv. Near threatenedv. Least concern-

a. Gross direct (Scope 1) GHG emissions in metric tons of
CO2 equivalent.
b. Gases included in the calculation; whether CO2 , CH4 ,N2 O, HFCs, PFCs, SF6 , NF3 , or all.
c. Biogenic CO2 emissions in metric tons of CO2 equivalent.
d. Base year for the calculation, if applicable, including:i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant changes in emissions
that triggered recalculations of base year emissions.
e. Source of the emission factors and the global warming
potential (GWP) rates used, or a reference to the GWP
source.
f. Consolidation approach for emissions; whether equity
share, financial control, or operational control.
g. Standards, methodologies, assumptions, and/or
calculation tools used.

CR Report
P102 Environmental Performance >CO2 Emissions by Scope
P101 Environmental Performance >CO2 Conversion Coefficients Used toConvert CO2 Emissions
P103 Environmental Performance >Scope of Data Collection

Other indirect(Scope 3) GHG
emissionsa. Gross other indirect (Scope 3) GHG emissions in metrictons of CO2 equivalent.b. If available, the gases includedin the calculation; whether CO2 , CH4 , N2 O, FCs, PFCs,
SF6 , NF3 , or all.
c. Biogenic CO2 emissions in metric tons of CO2 equivalent.
d. Other indirect (Scope 3) GHG emissions categories andactivities included in the calculation.
e. Base year for the calculation, if applicable, including:i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant changes in emissions
that triggered recalculations of base year emissions.
f. Source of the emission factors and the global warming
potential (GWP) rates used, or a reference to the GWP source.
g. Standards, methodologies, assumptions, and/or
calculation tools used.

CR Report
P102 Environmental Performance >CO2 Emissions by Scope
P101 Environmental Performance >CO2 Conversion Coefficients Used toConvert CO2 Emissions
P103 Environmental Performance >Scope of Data Collection

GHG emissions
intensitya. GHG emissions intensity ratio for the organization.
b. Organization-specific metric (the denominator) chosen
to calculate the ratio.
c. Types of GHG emissions included in the intensity ratio;
whether direct (Scope 1), energy indirect (Scope 2),
and/or other indirect (Scope 3).
d. Gases included in the calculation; whether CO2 , CH4 ,N2 O, HFCs, PFCs, SF6 , NF3 , or all.

CR Report
P101 Environmental Performance >CO2 Conversion Coefficients Used toConvert CO2 Emissions

305-5

Reduction of GHG
emissionsa. GHG emissions reduced as a direct result of reduction
initiatives, in metric tons of CO2 equivalent.
b. Gases included in the calculation; whether CO2 , CH4 ,N2 O, HFCs, PFCs, SF6 , NF3, or all.
c. Base year or baseline, including the rationale forchoosing it.
d. Scopes in which reductions took place; whether direct(Scope 1), energy indirect (Scope 2), and/or otherindirect (Scope 3).
e. Standards, methodologies, assumptions, and/or
calculation tools used.

CR Report
P102 Environmental Performance >CO2 Emissions by Scope

305-6

Emissions ofozone-depleting
substances (ODS)

a. Production, imports, and exports of ODS in metric tonsof CFC-11 (trichlorofluoromethane) equivalent.
b. Substances included in the calculation.
c. Source of the emission factors used.
d. Standards, methodologies, assumptions, and/or
calculation tools used.

-

305-3

305: Emissions

External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
305-1

Environmental Performance

Direct (Scope 1)
GHG emissions

Scope of Reporting
GRI Index
TCFD Index

305-2

Energy indirect(Scope 2) GHG
emissionsa. Gross location-based energy indirect (Scope 2) GHG
emissions in metric tons of CO2 equivalent.
b. If applicable, gross market-based energy indirect (Scope2) GHG emissions in metric tons of CO2 equivalent.
c. If available, the gases included in the calculation;
whether CO2 , CH4 , N2 O, HFCs, PFCs, SF6 , NF3 , or all.
d. Base year for the calculation, if applicable, including:i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant changes in emissions
that triggered recalculations of base year emissions.
e. Source of the emission factors and the global warming
potential (GWP) rates used, or a reference to the GWP source.
f. Consolidation approach for emissions; whether equity
share, financial control, or operational control.
g. Standards, methodologies, assumptions, and/or
calculation tools used.

CR Report
P102 Environmental Performance >CO2 Emissions by Scope
P101 Environmental Performance >CO2 Conversion Coefficients Used toConvert CO2 Emissions
P103 Environmental Performance >Scope of Data Collection

305-4

LIXIL Group Corporate Responsibility Report 2019115

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

ESG Performance

Society

ESG Data, Scope of Reporting and GRI > GRI Index

08

GRI INDEXESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI
External Evaluations & Awards

305-7

Nitrogen oxides(NOX), sulfur
oxides (SOX), andother significant air
emissions

CR Report
P100 Environmental Performance >Manufacture / Sales

306-3

Significant spillsa. Total number and total volume of recorded significant
spills.
b. The following additional information for each spill thatwas reported in the organization's financial statements:
i. Location of spill;ii. Volume of spill;iii. Material of spill, categorized by: oil spills (soil orwater surfaces), fuel spills (soil or water surfaces),
spills of wastes (soil or water surfaces), spills ofchemicals (mostly soil or water surfaces), and other(to be specified by the organization).
c. Impacts of significant spills.

N/A

Transport ofhazardous waste

a. Total weight for each of the following:i. Hazardous waste transported
ii. Hazardous waste imported
iii. Hazardous waste exported
iv. Hazardous waste treatedb. Percentage of hazardous waste shipped internationally.
c. Standards, methodologies, and assumptions used.

CR Report
P100 Environmental Performance >Manufacture / Sales

Water bodies
affected by water
discharges and/or
runoffa. Water bodies and related habitats that are significantly
affected by water discharges and/or runoff, including
information on:i. the size of the water body and related habitat;ii. whether the water body and related habitat isdesignated as a nationally or internationallyprotected area;iii. the biodiversity value, such as total number ofprotected species.

-

306: Effluents and Waste

Action Plan & KPIs
Human Resource Performancea. Significant air emissions, in kilograms or multiples, foreach of the following:i. NOxii. SOxiii. Persistent organic pollutants (POP)iv. Volatile organic compounds (VOC)v. Hazardous air pollutants (HAP)vi. Particulate matter (PM)vii. Other standard categories of air emissions
identifiedin relevant regulations
b. Source of the emission factors used.
c. Standards, methodologies, assumptions, and/or
calculation tools used.

306-1

Water discharge
by quality anddestination

Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

306-2

Waste by type anddisposal method

a. Total volume of planned and unplanned water discharges
by:i. destination;
CR Reportii. quality of the water, including treatment method;
P100 Environmental Performance >iii. whether the water was reused by another
Manufacture / Sales
organization.
b. Standards, methodologies, and assumptions used.
a. Total weight of hazardous waste, with a breakdown by
the following disposal methods where applicable:
i. Reuse
ii. Recyclingiii. Compostingiv. Recovery, including energy recovery
v. Incineration (mass burn)vi. Deep well injection
vii. Landfill
viii. On-site storageix. Other (to be specified by the organization)b. Total weight of non-hazardous waste, with a breakdown
CR Reportby the following disposal methods where applicable:
P100 Environmental Performance >i. Reuse
Manufacture / Sales
ii. Recyclingiii. Compostingiv. Recovery, including energy recovery
v. Incineration (mass burn)vi. Deep well injection
vii. Landfill
viii. On-site storageix. Other (to be specified by the organization)c. How the waste disposal method has been determined:
i. Disposed of directly by the organization, or otherwise
directly confirmed
ii. Information provided by the waste disposal contractor
iii. Organizational defaults of the waste disposal contractor.

306-4

306-5

307: Environmental Compliance

307-1

Non-compliancewith environmental
laws andregulations

a. Significant fines and non-monetary sanctions for noncompliancewith environmental laws and/or regulationsin terms of:i. total monetary value of significant fines;
CR Report
ii. total number of non-monetary sanctions;P103 Environmental Performance >iii. cases brought through dispute resolution
No. of Environmental Law Violations
mechanisms.
b. If the organization has not identified any non compliancewith environmental laws and/or regulations, a brief
statement of this fact is sufficient.

308: Supplier Environmental Assessment

308-1

New suppliers
that werescreened using
environmental
criteria

a. Percentage of new suppliers that were screened using
environmental criteria.

CR Report
P60 Responsible Supply Chain
Management > Promoting Responsible
Procurement That Upholds theEnvironment and Labor Safety

LIXIL Group Corporate Responsibility Report 2019116

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

ESG Performance

Society

ESG Data, Scope of Reporting and GRI > GRI Index

08

GRI INDEXESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRI

308-2

Negativeenvironmental
impacts in the
supply chain andactions taken

External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performancea. Number of suppliers assessed for environmental impacts.
b. Number of suppliers identified as having significant
actual and potential negative environmental impacts.
c. Significant actual and potential negative environmental
impacts identified in the supply chain.
d. Percentage of suppliers identified as having significant
actual and potential negative environmental impacts
with which improvements were agreed upon as a resultof assessment.
e. Percentage of suppliers identified as having significant
actual and potential negative environmental impacts
with which relationships were terminated as a result ofassessment, and why.

403: Occupational Health and Safety

CR Report
P61 Responsible Supply Chain
Management > Conducting andFollowing Up on Responsible
Procurement Surveys

Workers
representation
in formal joint
management–
worker health andsafety committees

a. The level at which each formal joint management worker
health and safety committee typically operates within theorganization.
b. Percentage of workers whose work, or workplace, iscontrolled by the organization, that are represented
by formal joint management-worker health and safetycommittees.

CR Report
P37 Rewarding Workplaces > LaborManagement Relationship
P41 Occupational Health & Safety >Our System

403-2

Types of injury
and rates of injury,
occupational
diseases, lost days,
and absenteeism,and number ofwork-related
fatalities

a. Types of injury, injury rate (IR), occupational disease
rate (ODR), lost day rate (LDR), absentee rate (AR),and work-related fatalities, for all employees, with abreakdown by:
i. region;ii. gender.
b. Types of injury, injury rate (IR), and work-related
fatalities, for all workers (excluding employees) whose
work, or workplace, is controlled by the organization,with a breakdown by:
i. region;ii. gender.
c. The system of rules applied in recording and reporting
accident statistics.

CR Report
P42 Occupational Health & Safety> The Occurrence of Work-Related
Accidents

403-3

Workers with highincidence or highrisk of diseases
related to theiroccupationa. Whether there are workers whose work, or workplace, iscontrolled by the organization, involved in occupational
activities who have a high incidence or high risk of
specific diseases.

-

403-4

Health and safety
topics covered informal agreementswith trade unions

a. Whether formal agreements (either local or global) withCR Report
trade unions cover health and safety.
P37 Rewarding Workplaces > Laborb. If so, the extent, as a percentage, to which various healthManagement Relationshipand safety topics are covered by these agreements.

403-1

GRI 400: Social Topics
Indicator

Report Page

401: Employment

401-1

a. Total number and rate of new employee hires during the
New employee
reporting period, by age group, gender and region.
hires and employee
b. Total number and rate of employee turnover during theturnoverreporting period, by age group, gender and region.

401-2

a. Benefits which are standard for full-time employeesof the organization but are not provided to temporary
or part-time employees, by significant locations ofoperation. These include, as a minimum:i. life insurance;ii. health care;iii. disability and invalidity coverage;
iv. parental leave;
v. retirement provision;vi. stock ownership;vii. others.
b. The definition used for ‘significant locations of operation’.

Scope of Reporting
GRI Index
TCFD Index

401-3

Benefits provided
to full-time
employees thatare not provided totemporary or parttime employees

Parental leavea. Total number of employees that were entitled to parental
leave, by gender.
b. Total number of employees that took parental leave, by gender.
c. Total number of employees that returned to work in thereporting period after parental leave ended, by gender.
d. Total number of employees that returned to work afterparental leave ended that were still employed 12 months
after their return to work, by gender.
e. Return to work and retention rates of employees thattook parental leave, by gender.

CR Report
P96 Human Resource Performance> Number of New Hires, Number ofRetirees and Turnover Rate-

404: Training and Education

404-1

Average hours of
training per year
per employee

a. Average hours of training that the organization’s
employees have undertaken during the reporting period,by:i. gender;ii. employee category

CR Report
P40 Talent Development > Annual
Training Hours and Costs per Employee

404-2

Programs for
upgradingemployee skills
and transition
assistanceprograms

a. Type and scope of programs implemented andassistance provided to upgrade employee skills.
b. Transition assistance programs provided to facilitatecontinued employability and the management of career
endings resulting from retirement or termination of
employment.

CR Report
P39 Talent Development > Overview of
Talent Development
P40 Talent Development > Offering
Diverse Educational Programs, Career
Development Support

CR Report
P31 Diversity & Equal Opportunity> Supporting a Healthy Work-Life
Balance402: Labor/Management Relations

402-1

Minimum notice
periods regarding
operationalchangesa. Minimum number of weeks’ notice typically provided
to employees and their representatives prior to the
CR Report
implementation of significant operational changes that
P37 Rewarding Workplaces > Laborcould substantially affect them.
b. For organizations with collective bargaining agreements, Management Relationshipreport whether the notice period and provisions for consultationand negotiation are specified in collective agreements.

LIXIL Group Corporate Responsibility Report 2019117

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

ESG Performance

Society

ESG Data, Scope of Reporting and GRI > GRI Index

08
ESG DATA,SCOPE OF REPORTING
AND GRIESG Data, Scope of Reportingand GRIGRI INDEX

404-3

Percentageof employees
receiving regularperformanceand careerdevelopment
reviews

CR Report
P40 Our People > Talent Development> Evaluation Framework

405: Diversity and Equal Opportunity

External Evaluations & Awards
Action Plan & KPIs

408: Child Labor
a. Percentage of total employees by gender and by
employee category who received a regular performanceand career development review during the reporting
period.

405-1

Human Resource Performance

Diversity of
governance bodies
and employees

Environmental Performance
Scope of Reporting
GRI Index
405-2

TCFD Index

a. Percentage of individuals within the organization’s
governance bodies in each of the following diversity
categories:
i. Gender;
ii. Age group: under 30 years old, 30-50 years old, over
50 years old;iii. Other indicators of diversity where relevant (such as
minority or vulnerable groups).
b. Percentage of employees per employee category in eachof the following diversity categories:
i. Gender;
ii. Age group: under 30 years old, 30-50 years old, over
50 years old;iii. Other indicators of diversity where relevant (such as
minority or vulnerable groups).

a. Ratio of the basic salary and remuneration of women to
Ratio of basic salarymen for each employee category, by significant locations
and remunerationof operation.
of women to men
b. The definition used for ‘significant locations ofoperation’.

408-1

Annual Securities Report (Available inJapanese):
P50 4. (2) Corporate Officers
CR Report
P95 LIXIL Group Human Resource
Performance > Number of Employees
by Type of Employment

406-1

Incidents of
discrimination andcorrective actions
taken

410-1

-

407-1

a. Operations and suppliers in which workers’ rights toexercise freedom of association or collective bargaining
Operations andmay be violated or at significant risk either in terms of:
suppliers in whichi. type of operation (such as manufacturing plant) andthe right to freedom
supplier;of associationii. countries or geographic areas with operations andand collective
suppliers considered at risk.
bargaining may be
b. Measures taken by the organization in the reportingat risk
period intended to support rights to exercise freedom of
association and collective bargaining.

--

Security personnel
trained in humanrights policies orproceduresa. Percentage of security personnel who have received
formal training in the organization's human rights
policies or specific procedures and their application tosecurity.
b. Whether training requirements also apply to third party
organizations providing security personnel.

-

411: Management Approach Disclosures

411-1

407: Freedom of Association and Collective Bargaining

a. Operations and suppliers considered to have significant
risk for incidents of forced or compulsory labor either interms of:
Operations andi. type of operation (such as manufacturing plant) andsuppliers at
supplier;
significant risk forii. countries or geographic areas with operations andincidents of forced
suppliers considered at risk.
or compulsory laborb. Measures taken by the organization in the reporting
period intended to contribute to the elimination of all
forms of forced or compulsory labor.

410: Security Practices

406: Non-Discriminationa. Total number of incidents of discrimination during thereporting period.
b. Status of the incidents and actions taken with reference
to the following:i. Incident reviewed by the organization;
ii. Remediation plans being implemented;
iii. Remediation plans that have been implemented,
with results reviewed through routine internalmanagement review processes;
iv. Incident no longer subject to action.

-

409: Forced or Compulsory Labor

409-1

-

Operations andsuppliers at
significant risk forincidents of childlabor

a. Operations and suppliers considered to have significant
risk for incidents of:i. child labor;
ii. young workers exposed to hazardous work.
b. Operations and suppliers considered to have significant
risk for incidents of child labor either interms of:i. type of operation (such as manufacturing plant) andsupplier;
ii. countries or geographic areas with operations andsuppliers considered at risk.
c. Measures taken by the organization in the reporting
period intended to contribute to the effective abolition ofchild labor.

a. Total number of identified incidents of violations
involving the rights of indigenous peoples during thereporting period.
b. Status of the incidents and actions taken with reference
Incidents ofto the following:
violations involving
i. Incident reviewed by the organization;rights of indigenous
ii. Remediation plans being implemented;
peoplesiii. Remediation plans that have been implemented,
with results reviewed through routine internalmanagement review processes;
iv. Incident no longer subject to action.

-

412: Human Rights Assessment

412-1

Operations thathave been subject
to human rights
reviews or impact
assessments

a. Total number and percentage of operations that havebeen subject to human rights reviews or human rights
impact assessments, by country.

CR Report
P73 Human Rights > Strengthening
Human Rights Due Diligence

LIXIL Group Corporate Responsibility Report 2019118

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > GRI Index

08
ESG DATA,SCOPE OF REPORTING
AND GRIGRI INDEX

412-2

ESG Data, Scope of Reportingand GRI
External Evaluations & Awards

412-3

Action Plan & KPIs
Human Resource Performance

Employee training
on human rights
policies orprocedures

Significant
investment
agreements andcontracts that
include humanrights clauses orthat underwent
human rights
screeninga. Total number of hours in the reporting period devoted
to training on human rights policies or procedures
concerning aspects of human rights that are relevant tooperations.
b. Percentage of employees trained during the reporting
period in human rights policies or procedures
concerning aspects of human rights that are relevant tooperations.

CR Report
P72 Human Rights > Instilling Human
Rights Principles within the Groupa. Total number and percentage of significant investment
agreements and contracts that include human rights
clauses or that underwent human rights screening.
b. The definition used for ‘significant investment
agreements’.

-

414-2

Environmental Performance
Scope of Reporting
GRI Index
TCFD Index
413-1

413-2

Operations withlocal community
engagement,
impactassessments,
and development
programs

a. Percentage of operations with implemented local
community engagement, impact assessments, and/or
development programs, including the use of:i. social impact assessments, including gender impact
assessments, based on participatory processes;
ii. environmental impact assessments and ongoing
monitoring;iii. public disclosure of results of environmental andsocial impact assessments;
CR Report
iv. local community development programs based on
P14-19 Global Sanitation & Hygiene
local communities’ needs;
P78-82 Community
v. stakeholder engagement plans based on stakeholder
mapping;vi. broad based local community consultationcommittees and processes that include vulnerable
groups;vii. works councils, occupational health and safetycommittees and other worker representation bodies
to deal with impacts;
viii. formal local community grievance processes.

Operations witha. Operations with significant actual and potential negative
significant actual
impacts on local communities, including:and potential
i. the location of the operations;
negative impacts on
ii. the significant actual and potential negative impacts
local communitiesof operations.

414-1

a. Percentage of new suppliers that were screened usingsocial criteria.

a. Total monetary value of financial and in-kind politicalcontributions made directly and indirectly by theorganization by country and recipient/beneficiary.
b. If applicable, how the monetary value of in-kind
contributions was estimated.

CR Report
P75 Key Stakeholder Engagement >Government Authorities and Industrial
Associations

416-1

Assessment of thea. Percentage of significant product and service categories
health and safety
for which health and safety impacts are assessed for
impacts of productimprovement.
and service categories

CR Report
P64 Product Safety & Quality >Enhancing Quality across Entire
Product Lifecycle

416-2

a. Total number of incidents of non-compliance withregulations and/or voluntary codes concerning thehealth and safety impacts of products and services
Incidents ofwithin the reporting period, by:
non-compliancei. incidents of non-compliance with regulations
concerning theresulting in a fine or penalty;
health and safety
ii. incidents of non-compliance with regulations
impacts of products
resulting in a warning;and services
iii. incidents of non-compliance with voluntary codes.
b. If the organization has not identified any non compliancewith regulations and/or voluntary codes, a brief
statement of this fact is sufficient.

CR Report
P65 Product Safety & Quality >Responding to Serious ProductRelated Accidents > Number of Legal
Infringements and Significant ProductRelated Accidents

417: Marketing and Labeling-

CR Report
P60 Responsible Supply Chain
Management > Promoting Responsible
Procurement That Upholds theEnvironment and Labor Safety

Political
contributions

416: Customer Health and Safety

414: Supplier Social Assessment
New suppliers thatwere screenedusing social criteria

CR Report
P61 Responsible Supply Chain
Management > Conducting andFollowing Up on Responsible
Procurement Surveys

415: Public Policy

415-1

413: Local Communities

Negative social
impacts in the
supply chain andactions taken

a. Number of suppliers assessed for social impacts.
b. Number of suppliers identified as having significant
actual and potential negative social impacts.
c. Significant actual and potential negative social impacts
identified in the supply chain.
d. Percentage of suppliers identified as having significant
actual and potential negative social impacts withwhich improvements were agreed upon as a result ofassessment.
e. Percentage of suppliers identified as having significant
actual and potential negative social impacts with which
relationships were terminated as a result of assessment,
and why.

417-1

a. Whether each of the following types of information isrequired by the organization's procedures for productand service information and labeling:i. The sourcing of components of the product or service;
ii. Content, particularly with regard to substances that
Requirements formight produce an environmental or social impact;
product and serviceiii. Safe use of the product or service;information andiv. Disposal of the product and environmental or social
labeling
impacts;
v. Other (explain).
b. Percentage of significant product or service categories
covered by and assessed for compliance with suchprocedures.

WebsiteBusiness Information TOP > Laws,
Regulations, and Institutions > Laws
and Institutions > Environmentally
Conscious Design and Eco-Products
http://www.biz-lixil.com/service/
law/eco_products/index.
html#lixTmplSectionBlock02(Japanese only)
CR Report
P49 Environmental Management >Environmentally Conscious Design

LIXIL Group Corporate Responsibility Report 2019119Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > GRI Index

08

GRI INDEXESG DATA,SCOPE OF REPORTING
AND GRI
417-2

a. Total number of incidents of non-compliance withregulations and/or voluntary codes concerning productand service information and labeling, by:
Incidents ofi. incidents of non-compliance with regulations
non-complianceresulting in a fine or penalty;
concerning productii. incidents of non-compliance with regulations
and service
resulting in a warning;
information andiii. incidents of non-compliance with voluntary codes.
labeling
b. If the organization has not identified any non-compliancewith regulations and/or voluntary codes, a brief
statement of this fact is sufficient.

417-3

a. Total number of incidents of non-compliance withregulations and/or voluntary codes concerning marketing
communications, including advertising, promotion, andsponsorship, by:i. incidents of non-compliance with regulations
resulting in a fine or penalty;
ii. incidents of non-compliance with regulations
resulting in a warning;iii. incidents of non-compliance with voluntary codes.
b. If the organization has not identified any non-compliancewith regulations and/or voluntary codes, a brief
statement of this fact is sufficient.

ESG Data, Scope of Reportingand GRI
External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance

Incidents of
non-complianceconcerningmarketingcommunications

Environmental Performance
Scope of Reporting

418: Customer Privacy

GRI Index
TCFD Index
418-1

Substantiatedcomplaints
concerning
breaches ofcustomer privacy
and losses ofcustomer dataa. Total number of substantiated complaints received
concerning breaches of customer privacy, categorizedby:i. complaints received from outside parties andsubstantiated by the organization;ii. complaints from regulatory bodies.
b. Total number of identified leaks, thefts, or losses ofcustomer data.
c. If the organization has not identified any substantiatedcomplaints, a brief statement of this fact is sufficient.

-

419: Socioeconomic Compliance419-1

Non-compliancewith laws andregulations inthe social andeconomic areaa. Significant fines and non-monetary sanctions for noncompliancewith laws and/or regulations in the social andeconomic area in terms of:i. total monetary value of significant fines;
ii. total number of non-monetary sanctions;iii. cases brought through dispute resolution
CR Reportmechanisms.
P86 Action Plan & KPIs
b. If the organization has not identified any non-compliancewith laws and/or regulations, a brief statement of thisfact is sufficient.
c. The context against which significant fines and nonmonetary sanctions were incurred.

LIXIL Group Corporate Responsibility Report 2019120

Commitment

Management and Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

ESG Performance

ESG Data, Scope of Reporting and GRI > TCFD index

08

TCFD INDEXESG DATA,SCOPE OF REPORTING
AND GRI

Category

DetailReport Page

ESG Data, Scope of Reportingand GRI

GovernanceIn order to promote Group-wide EHS activities, the Group EHS Committee wasestablished under senior managing executive officers. The Quality and EHS departments
for the LIXIL Group and LIXIL Corporation serve as Committee secretariats, overseeing
all our business organizations, head office departments, and consolidated
subsidiaries. The Group EHS Committee enlists the cooperation of the LIXIL Group
Executive Officers Committee, LIXIL Corporation Board of Directors, the Internal
Audit Committee, the Risk Management Committee, and the CR Committee for
its activities. These activities focus primarily on establishing a Group-wide EHS
management system, including promoting environmental strategies, organizing
effective management structures and reporting lines, and sharing and expandingorganizational and regional measures. We prioritize addressing climate change andother environmental issues in our business operation, and, as a living technology
company, promote environmental strategies to help solve social issues.

P47
Environmental
Management > Our
SystemStrategy

In 2016, the LIXIL Group announced its Environmental Vision 2030 medium to longterm targets, and established the LIXIL Group Environmental Sustainability Principles todefine our environmental philosophy and code of conduct. By 2030, we aim to achieve
an overall net zero balance between the environmental footprint of our business andthe positive environmental contribution we make through technological innovations andthe development of low-carbon, water-saving products and services. We are now also
developing a long-term vision that envisages how by 2050 LIXIL Group will contribute tosolving the increasingly serious environmental issues that we have witnessed in recent
years. We aim to announce this strategy in FYE2020.
LIXIL’s business is strongly linked to buildings, which consume energy in various forms
such as air conditioning and hot water supply. Energy used in buildings accounts forapproximately one third, or 32% (24% residential and 8% commercial), of global energy
consumption, and as a result, CO2 emissions from buildings have increased by 2.4 times
over the past 40 years. Without action, energy use by buildings is estimated to more thandouble by 2050, requiring urgent action in order to reduce anthropogenic greenhousegas emissions. In addition, with the depletion of the world’s water resources becoming
increasingly severe, approximately four billion people, or 40% of the world’s population,
are expected to be facing water stress in areas without stable water supply in 2050.

P21
Water Conservation& Environmental
Sustainability >Background, Our
Approach & Strategy
P47
Environmental
Management > Our
Approach

Risk
Management

Issues were selected considering:
1) Global trends
2) Relevance to the industries to which the LIXIL Group belongs3) Expectations of our stakeholders (customers, shareholders, business partners such as
suppliers, NGOs, etc.)
Material issues were selected by relevant business functions, and the CR Committee
approved the final list of material issues.
We developed mid-term action plans for material issues that include climate risks, andregularly evaluate the progress and results.

P11
Material Issues
P22
Water Conservation& Environmental
Sustainability >Opportunities andRisks for the LIXILGroup

Metrics andTargets

The LIXIL Group manages Scope 1 to 3 CO2 emissions. We aim to reduce Scope 1 and 2
emissions by 30% and Scope 3 emissions attributable to product use by 15% by 2030.
We set mid-term targets and action plans for 2020, and formulated a roadmap to 2030.

P22
Water Conservation& Environmental
Sustainability >FYE2021 Targets

External Evaluations & Awards
Action Plan & KPIs
Human Resource Performance
Environmental Performance
Scope of Reporting
GRI Index
TCFD Index

CR

Environmental Disclosures (P49)

LIXIL Group Corporate Responsibility Report 2019

121

LIXIL Group Corporation
36F, Kasumigaseki Building, 3-2-5, Kasumigaseki,
Chiyoda-ku, Tokyo 100-6036, Japanwww.lixil.com