Governance ・・・Enhance LIXIL’s governance to maximize our corporate values.
Material

TargetAction plan

KPI

Target for FY2016

Target for FY2017

CorporateEstablish

Prepare and disclose

Number of times we・Implement Corporate Governance・Employ global best practice.

governanceglobal-standard

Corporate Governancereview the Corporate

Guidelines and commitments.

governance.

Guidelines.

Governance Guidelines

・Appoint independent outside(at least once a year)

directors as chairs of theEstablish a Group

Coverage of improved

Nomination, Compensation and・Set clear rules and procedures forgovernance system.

governance rules andAudit Committees.

business boards and otherIssues

procedures (%)

committee groups.
・Ensure 100% coverage ofimproved governance rules andprocedures.

Compliance

Develop

Build a new group

Establishment of・Establish compliance committees,

・Complete implementation of acomprehensive

compliance system andcompliance committees,or an equivalent structure for eachcompliance review mechanism.

and effective

clarify the rules.

or an equivalent structuretechnology business.

・Build a Group-wide compliancecomplianceat each technology

・Review the compliance guideline

system that operates effectively.

structure acrossbusiness and holdand compliance committees to・Convene at least two compliance

the Group.

committee meetingmake them more applicable to thecommittee (or an equivalent(number)Group as a whole.

structure) meeting per year at each

・Require regular reporting by heads

technology businessof each compliance committees.
・Establish appropriate Compliancefunction operating mechanism.
・Strengthen compliance at theheadquarter and each technology
business, including the recruitmentof compliance officers.
StrengthenGroup-wide:・Inspect high-risk regions and・Build a system for compliancecompliance-related

1. Basic training andimplement a compliance system

education and training.

education and training

commitment to Groupand training plan, based on the・Ensure 100% implementation rate

1. Develop training for

Code of Conduct (%)

observations.

for basic training and commitment

Group Code of Conduct

2. Implementation of・Develop training programs byto Group Code of Conduct.

and ensure eachtraining by regions andregions and corporate positions,・Ensure 100% implementation rate

employees'

corporate positions (%)

and a mechanism to monitor thefor training by regions andtraining record.

corporate positions.

commitment.
2. Strengthen training byregions and corporatepositions.
Create one central

Group-wide:・Inspect high-risk regions to・Introduce an effective and uniform

contact for

・Awareness of theobserve the current concern-raisingGroup-wide concern-raising system.

concern-raisers to reportconcern-raising systemsystem.

・Achieve 100% awareness ofand increase the(%)

・Actively publicize the existing

concern-raising system.

awareness across the・Reported

concern-raising system.

・Disclose the number of reported

Group.

(number)

・Create a template Concern-raisingconcerns and the summary of theguideline for use by Groupincident.

concerns

subsidiaries and affiliatedcompanies.
・Build a monitoring mechanism totrack concernsthat are reported

or under investigation.
・Boost the number of reported
concerns

outside of Japan by 10%

compared to FY2015.

Governance ・・・Enhance LIXIL’s governance to maximize our corporate values.
Material

TargetAction plan

KPI

Target for FY2016

Target for FY2017

Risk

Establish andEstablish a crisis

Coverage of the crisis

・Develop basic policy and guideline

・Facilitate swift and cooperative

management

operate a

management system tomanagement systemfor crisis management.

response to a crisis, by establishingGroup-wide

minimize the damage

across Group companies

・Establish a structure to escalate

effective communication systementerprise risk

when crises occur.

(%)

crisis incidents between the

between Group companies and themanagement

headquarter and individual

headquarter.

system.

technology businesses, by clarifying

・Achieve 100% adoption of theroles and departmental

crisis management system byresponsibilities.

Group companies.

IssuesEstablish a risk financeCoverage of an insurance

・Launch a comprehensive Japan・Implement an insurance

system to prevent

management systems

program to develop global liability

management system across all

financial losses andacross Group companies

insurance policy.

Group companies, targeting 100%minimize the damage(%)

coverage of non-life insurance

when crises occur.

regarding liability risks.

Establish a risk

Coverage of the risk

・Clarify risk definitions to ensure

・Establish a set of systems,

management system tomanagement systemcommon understanding

processes and rules to identify,

prevent crises.

across Group companies

throughout the Group.

analyze, evaluate and respond to(%)

significant risks (Boundary: allGroup companies.)

Information

Ensure strict

Establish andCoverage of Group・Complete analysis of current

・Create a Group Information

security

management ofimplement the Group

Information Security

information security practices atSecurity Policy.

information that

Information Security

Policy (%)

each Group companies.

・Ensure implementation of thishas beenPolicy.

policy across all Group

collected,companies.

created or

Create rules based onGroup-wide:・Taking into account the・Improve Group employees'

employed during

the Group Information

・Implementation ofobserved current practice,awareness of information

our business

Security Policy andinformation security

establish a management

security, and establish in-depth

activities acrossintegrate into all group

education (%)

structure for promoting

voluntary inspections andthe Group.

operation.

・Information security

information security across theinvestigation.

violation incidences

Group.

・Ensure 100% of employees in(unauthorized access,Japan have received information

loss of data, leakage,security education.

etc.) (number)・Reduce number of information
security violations (unauthorizedaccess, loss of data, leakage,etc.) to zero.

Governance ・・・Enhance LIXIL’s governance to maximize our corporate values.
Material

TargetAction plan

KPI

Target for FY2016

Target for FY2017

Intellectual

Maximize the1. Introduce Group IP

Plan and implement・Implement Group IP

・Streamline functions forproperty

value of theManagementways to reduce risks

Management Guidelines acrossassessing Group-wide IP.

(IP)strategy

Group's

Guidelines.

relating to ourthe Group.

・Build a system to monitor IP

intellectual

2. Create an internal

competitors, by・Create and operate a Group IP

creation, maintenance andproperty bymechanism forevaluating anddata system.

application at individual

operating aeffective information

quantifying the risk to・Convene IPC meetings totechnology businesses, as wellstreamlined

sharing of Group IP.

our IP from competitor

decide how to drive forward theas external IP disputes and IP

global IP

3. Extend the global

IP rights, andGroup-wide IP management.

contractual relationships.

governancereach and functionality

evaluating the LIXIL

・Trial a Business IP Committee

・Use monitoring results to plansystem.

of the IP Committee

Group IP portfolio(BIPC) at LWT and determine

how individual technology(IPC).

1) Proactive pursuit ofand implement an IP strategy

businesses should utilize the IP,

patents and design

and action plan.

and create a system to manage

Issuesapplications (number)their progress.

2) Patents and design
registrations that could
be violated by major
competitors (number)3) Cost savings basedon benefits from risk
reduction initiatives ($)
Launch pilot projects

Evaluation of new pilot

Create IP Strategy Guidelines

1. Begin using the IP Strategy

for IP ecosystemproject activities:

designed to transform the LIXIL

Guidelines derived from actual

activities.

1) Projects of IP

Group into a solutions provider

projects.

ecosystem activitiesby offering its IP to business

2. Evaluate actual projects(number and/or a ratio

partners. Verify guidelines

against the IP Strategyto all internal projects)

against actual examples toGuidelines.

2) Filed IP Applications

measure effective IP・Projects of IP ecosystem(number)management.

activities (80% of all internal

3) The times LIXIL
provided its own IP tobusiness partners(number)

projects)