LIXIL Group
Corporate Responsibility Report 2018

LIXIL Group
Corporate
Responsibility Report 2018

Contents

Message03

CR Management Structure andMaterial Issues Selection

─ 04	Message from CR Committee Chairperson &Support for the UNGC

MessageOur Approach
Our People

Customers & Supply Chain

65

Customers & Supply Chain

─ 31

A Fair & Rewarding Workplace─ 66

Responsible Supply Chain Management

─ 34Work Safety & Well-being

─ 69

Product Safety & Quality

─ 37

Talent Development

─ 73

Customer Satisfaction

Diversity & Equal Opportunity

75

Performance

CR Management Structure and MaterialIssues Selection

─ 40

─ 09

CR Management Structure

44

Environment

─ 10

─ 76

Human Resource Performance

Material Issues

─ 11

─ 45

Environmental Management

─ 80

Environmental Performance2020 Targets for Material Issues─ 47Greenhouse Gas Reduction

─ 52

Sustainable Water Use

89

Reporting─ 55

Sustainable Use of Resources

─ 90

Scope of Reporting─ 92

Global Reporting Initiative (GRI) Index

57

Society─ 58

Human Rights

─ 60

Stakeholder Engagement─ 62

Community

Performance
ReportingOur People

08

Environment
Society30

14

Our Approach─ 15

Corporate Responsibility (CR) Strategy

─ 16

Three Strategic Pillars

─ 17

Global Sanitation & Hygiene

─ 23

Water Conservation & Environmental Sustainability─ 26

Diversity & Inclusion

Corporate Governance

Reporting Period

Applicable Organizations

See the Corporate Governance section on the LIXIL Group Corporation

FYE2018 (April 1, 2017 to March 31, 2018)

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 2018

02

LIXIL Group
Corporate
Responsibility Report 2018

Message
Message from CR Committee Chairperson& Support for the UNGC
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain
Performance
Reporting

Message
LIXIL supports the UNGC as stated in the message from Yoichiro Ushioda, Chairman & CEO of LIXIL Group Corporation andwe express our commitment to Corporate Responsibility as stated in the message from Jin Song Montesano, Chair of the CR Committee.

LIXIL Group Corporate Responsibility Report 201803

Message > Message from CR Committee Chairperson & Support for the UNGC

LIXIL Group
Corporate
Responsibility Report 2018

Message
Message from CR Committee Chairperson& Support for the UNGC
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain
Performance
Reporting

Message

Message from CR Committee Chairperson & Support for the UNGC
 Message from the Corporate
Responsibility (CR) Committee
Chairperson

Kenya and Rwanda, but will also support acceleration of new
product development such as the Portable Toilet System, atoilet specifically designed for households in urban informal
settlements.

Every person on the planet
dreams of a better home,and LIXIL’s higher purpose
is to help them achieve thatdream – whether it is byrenovating their kitchen inTokyo or by installing their first
toilet in Nairobi. Our Corporate
Responsibility (CR) agenda
is core to LIXIL’s greater
purpose as a company, andin FYE2018 we reached newheights, both in terms of progress against our commitments
as well as global recognition from customers, business
partners, government stakeholders, and employees about thepositive contributions we are making to society.

In addition to expanding our social business, we continue
to advocate for greater dialogue on tackling the challenges
of sanitation and hygiene, too. LIXIL provided key remarks
at a Toilet Board Coalition-hosted round table about the“Sanitation Economy” at the sidelines of the World Economic
Forum in January 2018.

Significant progress was made with regard to our threestrategic pillars. As part of our efforts to improve Global
Sanitation & Hygiene, we further bolstered resources andexpertise with the integration of the fast-growing SATO social
business and the Social Sanitation Initiatives organization.
The new integrated unit is now led by Junichi Goto, who has
established strong business processes and a clear operating
rhythm that encourages faster decision-making, improved
communication flows, and better collaboration. This neworganization will not only enable SATO Toilet Systems toflourish as it expands into new markets such as

Regarding Water Conservation & Environmental
Sustainability, the Science Based Targets initiative validated
our greenhouse gas reduction targets in FYE2018.
Additionally, one of our Japanese window products, REPLUS, was recognized by the Minister of Environment for its
energy-saving benefits as well as how simple it is to add onto
an existing window, making it easy for our customers to beenvironmentally friendly.
On the topic of Diversity & Inclusion, a cross-functionalgroup of experts within LIXIL from R&D, product engineering,product design, marketing, and sales finalized LIXIL’s new“Universal Design” strategy. To ensure good governance,a senior-level committee was formed to ensure proper andtimely implementation of this initiative and its commitments.
Since the new CR strategy was implemented in FYE2016,
LIXIL’s activities have begun to receive external recognition,and even win some global awards. For the first time, LIXIL
was included in the Dow Jones Sustainability Asia/PacificIndex, FTSE4Good, and MSCI Japan Empowering Womenlistings in FYE2018. LIXIL joins the ranks of global firms
operating with strong sustainability agendas. LIXIL also won
a number of top prizes for its work to elevate awarenessand dialogue around the global challenges of sanitation andhygiene: the SABRE Award for Best Global Campaign, theGOLD STANDARD Award from Public Affairs Asia, and aJapan Bronze Award from the Public Relations Society ofJapan. While this recognition is indeed rewarding, the fuelthat drives our efforts is the growing pride among employees
who realize that, for LIXIL, it’s not just what we do, but how
we do it that matters. And this growing pride was confirmed
in our latest employee engagement survey, or Heartbeat,
which found that employees felt very positively about our CR
activities.
FYE2018 is focused on driving scale through strategic
partnerships. To contribute to the United Nations Sustainable
Development Goals (SDGs), such as effectively reaching the
key populations lacking access to safe sanitation, we must
scale our efforts, and partnerships designed around sharedgoals become a critical enabler to achieving them. We lookforward to sharing more details about these partnerships inthe coming months, as well as our broader efforts to deliveron our CR commitments.
Jin Song Montesano
Executive Officer and Senior Managing Director,
Public Affairs, Investor Relations, External Affairs,
and Corporate Responsibility,
LIXIL Group Corporation

LIXIL Group Corporate Responsibility Report 201804

Message > Message from CR Committee Chairperson & Support for the UNGC

LIXIL Group
Corporate
Responsibility Report 2018

Message
Message from CR Committee Chairperson& Support for the UNGC

 Support for the UNGC
The LIXIL Group has been a signatory of the United Nations Global Compact (UNGC) initiative since July 2013.

CR Management Structure andMaterial Issues Selection
Our Approach

The LIXIL Group will support and implement the 10 Principles of the UNGC in the areas of human

Our People

rights, labor, the environment and anti-corruption. We are also taking action towards accomplishing

Environment

the Sustainable Development Goals (SDGs) established by the UN, with a target date of 2030.

Society
Customers & Supply Chain
Performance
Reporting

Yoichiro Ushioda
Director, Representative Executive Officer,
Chairman & Chief Executive Officer (CEO),LIXIL Group Corporation
November 2018

LIXIL Group Corporate Responsibility Report 201805

Message > Message from CR Committee Chairperson & Support for the UNGC

LIXIL Group
Corporate
Responsibility Report 2018

Message
Message from CR Committee Chairperson& Support for the UNGC
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain
Performance
Reporting Commitment to the UN Global
Compact

The 10 Principles

HUMAN
RIGHTS

The LIXIL Group signed the United Nations Global Compact(UNGC) in July 2013 in full support with the principles set
out in the framework.
Our corporate philosophy is to contribute to improving
people’s comfort and lifestyles. To fulfill that aim throughour operational activities, we are driving a range of R&Dand various initiatives to help resolve global sanitation andhygiene problems as well as other social and environmental
issues.
To meet and exceed society’s expectations for the LIXILGroup, we must take active leadership as a comprehensive
living and housing solutions company. We will not only put
the UNGC’s 10 Principles into practice, but also assist theUN efforts towards achieving the Sustainable Development
Goals by providing our expertise in areas of sanitation to help
create a safe living space for all.

Principle 1: B usinesses should support and respect the protection of internationally proclaimed human rights; andPrinciple 2: m ake sure that they are not complicit in human rights abuses.

Principle 3: B usinesses should uphold the freedom of association and the effective recognition of the right to collective
bargaining;

LABOUR

Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.

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.

ANTICORRUPTION

WEB

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

United Nations Global Compact (External HP)

LIXIL Group Corporate Responsibility Report 201806

Message > Message from CR Committee Chairperson & Support for the UNGC

LIXIL Group
Corporate
Responsibility Report 2018

Message
Message from CR Committee Chairperson& Support for the UNGC
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment

 Sustainable Development Goals
The United Nations Sustainable Development Goals (SDGs)
is a concrete plan of action outlined in the Transforming ourworld: The 2030 Agenda for Sustainable Development resultsoriented document adopted by the United Nations General
Assembly in September 2015, consisting of 17 global goals
and 169 targets related to sustainable development.
The LIXIL Group reflects the SDGs approach in its
corporate responsibility strategy and uses the goals as abroad guideline when forming management decisions.

[Goal 1] End poverty in all its forms everywhere[Goal 2] End hunger, achieve food security and improved nutrition and promote sustainable agriculture[Goal 3] Ensure healthy lives and promote well-being for all at all ages
[Goal 4] Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all[Goal 5] Achieve gender equality and empower all women and girls[Goal 6] Ensure availability and sustainable management of water and sanitation for all[Goal 7] Ensure access to affordable, reliable, sustainable and modern energy for all[Goal 8] Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

Society[Goal 9] Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Customers & Supply Chain[Goal 10] Reduce inequality within and among countries

Performance[Goal 11] Make cities and human settlements inclusive, safe, resilient and sustainable

Reporting[Goal 12] Ensure sustainable consumption and production patterns[Goal 13] Take urgent action to combat climate change and its impacts[Goal 14] Conserve and sustainably use the oceans, seas and marine resources for sustainable development[Goal 15] 	Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification,and halt and reverse land degradation and halt biodiversity loss
WEB

United Nations Sustainable Development Goals (External HP)[Goal 16] 	Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective,
accountable and inclusive institutions at all levels[Goal 17] Strengthen the means of implementation and revitalize the global partnership for sustainable development

LIXIL Group Corporate Responsibility Report 2018

07

LIXIL Group
Corporate
Responsibility Report 2018

Message

CR Management Structure andMaterial Issues Selection
CR Management Structure
Material Issues
2020 Targets for Material Issues

Our Approach
Our People
Environment
Society
Customers & Supply Chain
Performance
Reporting

CR Management Structure andMaterial Issues Selection
We have a robust management structure for driving sustainability initiatives and have identified key issues
that matter the most to our stakeholders and to us.
LIXIL Group Corporate Responsibility Report 201808

CR Management Structure and Material Issues Selection > CR Management Structure

LIXIL Group
Corporate
Responsibility Report 2018

Message

CR Management Structure andMaterial Issues Selection
CR Management Structure
Material Issues
2020 Targets for Material Issues

CR Management Structure and Material Issues Selection

CR Management Structure
LIXIL’s Corporate Responsibility (CR) Committee wasestablished to align with the technology business operating
model that was established in April 2015. The CR Committee
succeeds the CSR Promotion Committee, which had
been in place since 2012, and works to ensure swifter
action in response to economic, environmental and social
sustainability issues.

Management leadership and coordination with thetechnology businesses is critical to achieve prompt andappropriate actions. Accordingly, Executive Officers incharge of the corporate functions, namely HR, Legal, Public
Affairs, Finance, Quality, Environment, Technology Researchand Marketing as well as representatives from each of thetechnology businesses have been appointed as members of

the CR Committee.
The outcomes from CR Committee meetings are presented
to LIXIL Group’s Board of Directors and Executive Officers
Committee for final approval, and decisions are immediately
communicated down from the Executive Officers to therespective functional divisions and swiftly executed.

Our Approach
Our People
Environment

Decision-Making Bodies· LIXIL Group Board· LIXIL Group Executive Officers’ Meetings Committee

Society
Customers & Supply Chain
Performance
Reporting

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, 2018

LIXIL Group Corporate Responsibility Report 201809

CR Management Structure and Material Issues Selection > Material Issues

LIXIL Group
Corporate
Responsibility Report 2018

Message

CR Management Structure andMaterial Issues Selection
CR Management Structure
Material Issues
2020 Targets for Material Issues

CR Management Structure and Material Issues Selection

Material Issues

The issues outlined in our corporate responsibility (CR)strategy and framework are based on a rigorous materiality
selection process, as described below, which enables us to
identify the issues that matter the most to our stakeholders
and our Group. We have set medium-term action plans
focusing on each of these material issues, and will be
disclosing the progress and results of related activities on thiswebsite.

Our Approach
Our People
Environment

Material Issues Selection Process
Selection

Society
Customers & Supply Chain
Performance
ReportingAssessment

Validation
and Approval

List of LIXIL Group’s Material Issues
Category

Material Issues*

Background and Reason

GovernanceCorporate governance*
Compliance*
Risk management*
Information security
Taxation strategy
Intellectual property strategy

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

Fair Business
Practices

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

Human rights due diligence*Issues were selected considering:
1) Global trends2) Relevance to the industries to which the LIXILGroup is a part of3) Expectations of our stakeholders (customers,
shareholders, business partners such as suppliers,
NGOs, etc.)

With the UN’s adoption of Guiding Principles on Business and Human Rights clarifying 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 agreater priority.

Labor Practice

The level of impact of each selected issue wasassessed considering:1) the Group’s mid-to-long-term business
opportunities, and2) the viewpoints of our stakeholders

Diversity and equal opportunity*
Occupational health and safety*
Employee hiring and retention
Labor-management relationshipWorking environment
Talent development
Local job creation

With global expansion, our business and organizational structure have become more complex anddiverse. We therefore need to grasp and manage appropriately risks related to occupational healthand safety across the Group.
Diversity is vital to innovation. Companies worldwide are increasingly focused on attracting andretaining high-caliber employees. We are actively promoting diversity in line with the LIXIL Diversity
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 cancause 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 a clear
direction towards future decarbonization. Global water shortage is intensifying and we need to do
more to protect water, energy and other natural resources throughout the LIXIL Group value chain,from procurement to production, distribution, product use and disposal.

Supply Chain

Supply chain management*

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

Stakeholder
Engagement

Stakeholder engagement andcollaboration*
R&D for solving social problems*
Contribution to Global Sanitation &Hygiene*

The UN Sustainable Development Goals have galvanized companies into helping solve
social problems. As a comprehensive living technology company, we need to cooperate withstakeholders and focus more on R&D designed to help solve social issues, such as graying society,hygiene and the environment.

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

LIXIL Group’s Material Issues*Highlights issues that require focused priority action

LIXIL Group Corporate Responsibility Report 201810

CR Management Structure and Material Issues Selection ＞ 2020 Targets for Material Issues

LIXIL Group
Corporate
Responsibility Report 2018

Message

CR Management Structure and Material Issues Selection

2020 Targets for Material Issues
2020 targets for specific material issues are determined as below. We will report our progress and results on each issue on this website and the CR report. For more details, please refer to the webpage ofeach initiative.

CR Management Structure andMaterial Issues Selection
CR Management Structure
Material Issues
2020 Targets for Material Issues

Our Approach
Our People

Governance
Enhance group governance to maximize our corporate values.

Engage all employees and officers in our business operations with a high standard of corporate ethics.

Corporate
Governance· Employ and establish global best practices as a company with nominating committee, etc

Anti-corruption· Establish a comprehensive global compliance program and structure, including: promoting
group-wide adherence to the Group Code of Conduct and global policy, holding businessand region-specific compliance committees, and conducting regular compliance reviews

WEB

Environment
Society

Fair Business Practices

Compliance

Customers & Supply Chain· Combine group-wide basic training, training by corporate positions and acknowledgmentprocess of the Group Code of Conduct, and achieve 100% implementation rate

Performance· Ensure 100% familiarity with the group-wide concern-raising system, “Speak Up!”, which
will be used to collect concerns raised by business partners

Reporting
Risk Management· Foster a culture where risks are owned by respective executives (risk owner) globally,and establish cooperation among risk owners, risk management department and audit
department to promote “risk countermeasures” to govern enterprise risks on a daily basis· Cultivate “risk management culture” globally to promote quick escalation when incidents
occur and implement action plans according to timelines in order to prompt appropriate
initial countermeasure· Comprehensively manage group-wide information security activities, and make thatmanagement measurable

Information Security· Establish a group-wide system that effectively prevent, detect and respond to violations, bydeveloping a local process that is based on global policies and guidelines

Detailed initiatives: Compliance (LIXIL)

Human Rights
Advance human rights across the business to operate as a responsible corporate citizen.

Human Rights
Due DiligenceCR· Conduct human rights due diligence globally to identify and reduce human rights risks for allof LIXIL’s stakeholders, including customers, employees and business partners· Respond quickly and sincerely if any human rights violations are identifies. Carry out
periodical reviews of the human rights due diligence framework and communicate initiatives
and processes with transparency

Detailed initiatives: Human Rights (P.58)· Ensure up-to-date policies that conform with national laws and suit individual company
conditions, and conduct regular training· Number of incidents including unauthorized access and leaks: 0

Intellectual Property· Maximize the value of the Group’s intellectual property by conducting PDCA for the global
IP governance structure and process· Hold an IP Committee meeting once every quarter (4 times annually)

WEB

Detailed initiatives: Corporate Governance, Compliance, Risk Management (LIXIL)

LIXIL Group Corporate Responsibility Report 201811

CR Management Structure and Material Issues Selection ＞ 2020 Targets for Material Issues

LIXIL Group
Corporate
Responsibility Report 2018

Message

CR Management Structure andMaterial Issues Selection

Labor Practice
Build a strong corporation and workplace where all employees can achieve their fullest potential.

CR Management Structure
Material Issues

Working Environment

2020 Targets for Material Issues

Our Approach
Our People

Labor Practice· Achieve 100% operational coverage of group-wide EHS management system

Human Resource
Development

Customers & Supply Chain
CR

Performance· Expand CO2 emissions reduction attributable to Group products and services by 1.36 times
compared to FYE2016*The survey is carried out once-every-two-years. The previous survey was conducted in 2017 and the next survey
will be in 2019

· Establish the culture of diversity and inclusion within our organization and with all
employees

Society

Contribute to realizing a sustainable society through innovative products and services, andimproving the environmental efficiencies over all operational processes.

· Increase favorable response rate by 10% in the work-life balance category of the groupwide employee engagement survey compared to the previous survey

Diversity and Equal
Opportunity

Environment

Environment*Includes data on water resource protection (indirect CO2 emissions reductions relating to water use)

Greenhouse
Gas Reduction /Sustainable Water
Use / Sustainable
Use of Resources· Provide common learning opportunities for 800 next-generation leaders across the Group

Reporting

Quality and Satisfaction
Strengthen relationships with customers through our products and services.
Product Safety· Continue to keep the number of serious product accidents across the Group at zero cases

Customer
Satisfaction· Conduct regular customer satisfaction surveys, and disclose results

CR· Complete water-risk evaluation across all production sites, determine and implement KPI
and targets for high-priority sites

Detailed initiatives: Greenhouse Gas Reduction (P.47), Sustainable Water Use (P.52),
Sustainable Use of Resources (P.55)

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

CR
CR· Reduce distribution-linked CO2 emissions by 5% compared to FYE2016· Achieve waste product recycling rate of Japan & Europe 95%, Asia 68%, North America
40%· Aim to expand the number of employees participating in the talent acceleration program(TAP) for next-generation leaders to 1,300 cumulatively (in Japan)

Detailed initiatives: A Fair & Rewarding Workplace (P.31), Diversity & Equal Opportunity (P.40),
Work Safety & Well-being (P.34) Talent Development (P.37)· Reduce CO2 emissions from Group activities by 8% compared to FYE2016· Achieve group-wide responsible procurement surveys coverage ratio* of 100% in Japanand overseas, conformity rate of 90%, and improvement rate of 100% (*based on purchasedamount)Detailed initiatives: Responsible Supply Chain Management (P.66)

Detailed initiatives: Product Safety & Quality (P.69), Customer Satisfaction (P.73)

LIXIL Group Corporate Responsibility Report 201812

CR Management Structure and Material Issues Selection ＞ 2020 Targets for Material Issues

LIXIL Group
Corporate
Responsibility Report 2018

Message

CR Management Structure andMaterial Issues Selection
CR Management Structure
Material Issues

Stakeholder Engagement
Proactively engage with LIXIL’s key stakeholders for better business management.
Stakeholder
Engagement andCollaboration

2020 Targets for Material Issues

Our Approach

Solution of Global
Sanitation andHygiene Issues· Promote stakeholder engagement activities by using global frameworks such as the SDGs
· Communicate and disclose accurate and transparent Information that is accessible to ourstakeholders· Improve the livelihood of 100 million people through sanitation and hygiene solutions

Our People
EnvironmentCR

Detailed initiatives: Stakeholder Engagement (P.60)

Society
Customers & Supply Chain
Performance
Reporting

LIXIL Group Corporate Responsibility Report 2018

13

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment
Society
Customers & Supply Chain
Performance
Reporting

Our Approach
We are committed to enhancing living spaces through responsible engagements
and initiatives around the world.

LIXIL Group Corporate Responsibility Report 201814

Our Approach > Corporate Responsibility Strategy

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy

Our Approach

Corporate Responsibility Strategy
LIXIL is committed to enhancing living spaces throughinnovative responsible engagements and initiatives aroundthe world.
At LIXIL, we believe that our living spaces - the environment
where we live, work and play - are critical to our daily lives andwell-being. As a result, we are committed to ensuring that thegrowth of our businesses contributes to improving the qualityof people’s lives, by delivering safe and comfortable products
and services through responsible and sustainable innovations.
Leveraging the scale and expertise of our four core technology
business units, we are focused on making a positive impact
in the communities in which we operate and on matters that
require urgent action.

About "LIXIL Vision for Sustainable Living"WEB

Video (3 mins)

PDF

Details (137KB)

Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability

Our Corporate Responsibility Mission

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

Diversity & Inclusion

Our People
Environment
Society
Customers & Supply Chain
Performance
ReportingGlobal Sanitation &HygieneWater Conservation& Environmental
Sustainability

Diversity &Inclusion

Promote and enable access to safe and hygienic sanitation
practices, especially for women and girls, while preventing theharmful transmission of diseases for children.

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

Embrace the diversity of people in society and within LIXIL.
This includes enhancing quality of life and well-being for theelderly and the physically disabled through LIXIL products
and services, as well as harnessing the intelligence andperspectives of LIXIL’s diverse workforce, as an engine for
growth and innovation.

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

Human Rights

Labor Practices

Quality and Satisfaction

Supply Chain

Stakeholder Engagement

Enhance LIXIL’s governance tomaximize 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 andworkplace where all employees
can achieve their fullest
potential

Strengthen relationships withcustomers through our
products and services

Through responsible
management of the overall
supply chain, deliver a stableportfolio of products and fulfill
stakeholder accountability

Proactively engage with LIXIL’s
key stakeholders

LIXIL Group Corporate Responsibility Report 201815

Our Approach > Three Strategic Pillars

LIXIL Group
Corporate
Responsibility Report 2018

MessageOur Approach

Three Strategic Pillars
We focus on making a positive impact in the communities in which we operate and on matters that require urgent action, leveraging our expertise.

CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment
Society

Global Sanitation & Hygiene

Water Conservation &Environmental Sustainability

Diversity & Inclusion“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 andinclusion within our organization and with all employees

P.17

P.23

P.26

Customers & Supply Chain
Performance
Reporting

LIXIL Group Corporate Responsibility Report 201816

Our Approach > Global Sanitation & Hygiene

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability〈Relevant SDGs〉

Our Approach

Global Sanitation & Hygiene
By 2020, improve the livelihood of 100 million people
through sanitation and hygiene solutions● Promote research and development of products that actively contribute toresolving sanitation issues● Create a business that improves sanitation facilities in developing countries
around the world

100,000,000

Diversity & Inclusion

Our People
Environment
Society
Customers & Supply Chain
Performance
Reporting

LIXIL is committed to promoting and enabling access to safeand hygienic sanitation practices, especially for women andgirls, while preventing the harmful transmission of diseases
for children.

One in three people in the world today live without access toproper sanitation

BackgroundAn estimated 2.3 billion people – One in three people in
the world today – live without access to proper sanitation, of
which approximately 900 million still defecate in the open
on a daily basis. These are figures with a devastating human
cost: 800 children under five years of age are estimated todie every day from diarrheal diseases caused by a lack ofclean water and sanitary living conditions.
The absence of safe, clean toilets is a particular threat towomen. Not only is it embarrassing for women and girls to
defecate outside, having to leave home or school to relieve
themselves increases the risk of assault. As a result, the lackof sanitary toilets is one of the primary reasons young girls
drop out of school when they reach puberty.

The impact of the sanitation crisis is felt throughout entire
nations and regions, crippling opportunities for growth anddevelopment. According to an Oxford Economics report onbehalf of LIXIL, global economic losses from poor sanitation

were estimated at US$223 billion (at 1 USD=100 JPY) in
2015, an increase of more than 20％ from five years earlier.
WEB

The True Cost of Poor Sanitation (LIXIL)

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment
Society
Customers & Supply Chain
Performance
Reporting

Activities
LIXIL has pledged to provide better sanitation to 100
million people by 2020. In addition to committing our own
substantial corporate resources to this goal, we are at theforefront of public-private partnership, learning withorganizations such as UNICEF, the Japan International
Cooperation Agency (JICA) and WaterAid. LIXIL is also amember of the Toilet Board Coalition, a wide-ranging global
alliance that aims to develop sustainable, scalable measures
to tackle the sanitation crisis.
Given the immense size and complexity of the global
sanitation issue, LIXIL is developing a number of products
to fit different markets, infrastructure and income levels, aswell as dealing with environmental constraints. Our primarysolutions are the SATO Toilet Systems, already commerciallyavailable, and the Micro Flush Toilet System, Green Toilet
System, and Portable Toilet System, which are all currently
under development. Each represents LIXIL’s dedication to
improving the quality of people’s daily lives.
LIXIL has also established the Social Sanitation Initiatives
organization to strengthen the framework behind ourcommitment to resolving the global sanitation crisis throughrevolutionary products and sustainable businesses.
WEB

Time for Global Action Episode I - LIXIL (26 mins)

PDF"Global Sanitation Solution" brochure (1.6MB)

LIXIL Group Corporate Responsibility Report 201818

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment
Society
Customers & Supply Chain
Performance
Reporting

The Joint Declaration on the Japan Initiative for
Hygiene Issues
LIXIL Corporation endorsed a joint declaration with the World
Toilet Organization, Saraya Co., Ltd., and the ANA BLUE
WING Program on sanitation and hygiene. The declaration
outlines our joint commitment to support the realization of
the United Nations Sustainable Development Goal 6 (SDG 6):
Ensure access to water and sanitation for all.
To work towards achieving Goal 6, the four participatingorganizations aim to offer sustainable solutions at anaffordable price. In order to achieve this, we all recognizethat Japan, with its advanced toilet culture, has a significant
role to play. We will utilize our accumulated knowledge andexpertise to promote activities aimed at resolving sanitation
issues around the world.

1.8 million
Approximately 9 million

Cumulative total of SATO units shipped
Number of people whose sanitaryenvironment has been improved

User relieves themselves*Based on no. of units produced and an average of five users per unit.

WEB

SATO Toilet Systems (Japanese only, LIXIL)

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

SATO:
Preventing the Transmission of Disease and Odors,
and Reducing Open Defecation
Having to defecate in the open, into an open pit, or over an
inadequate pit latrine exposes millions of people to odors
and disease. To combat this problem, LIXIL has developed
the SATO Toilet Systems, the first model created with funding
from the Bill and Melinda Gates Foundation and launched in
Bangladesh in 2013.
Depending on the model, users pour in 0.2 to 1 liter ofwater to flush away waste, after which the counter-weight
trap door closes to keep odors and flies away. SATO products
are safe for children, easy to clean, and affordable. Each one
is designed to suit the needs and preferences of users in▶How "SATO" Works

different regions. More than 1.8 million are provided for use,
enabling improved sanitation for nine million people. (As of
March 2017)

SATO product installation case in Bangladesh

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

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LIXIL Group
Corporate
Responsibility Report 2018

Message▶Countries where SATO products were shipped for use around the world

When the first pit fills up, for example, the flow of fecal mattercan be manually switched so it flows into the second pit. By
the time the second pit is full, the fecal matter in the first pit will
have dried and become manure that can be used for farming.
LIXIL’s new SATO V-TRAP model facilitates an easier switch
over between the two pits and greatly reduces the risk of
clogging by fecal matter. Furthermore, it reduces the volume
of water required to flush the fecal matter into the pit by morethan 80%.

CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars

13
1
2

14

16

12

Global Sanitation & Hygiene
119

Water Conservation & Environmental
Sustainability

3

4

8

Our People

5

New Funding to Accelerate Toilet Provision
Coverage

10

7

Diversity & Inclusion

15

6

The SATO Toilet Systems were selected for funding by the
Urban Sanitation Challenge program, led by the Canadiangovernment investment fund, Grand Challenges Canada.
LIXIL intends to use the one million Canadian dollar funding(approx. 92 million yen at 1 CAD=92 JPY) to build new
production and/or retail frameworks in a total of 11 countries,
spanning Nigeria, Tanzania, Ethiopia, Rwanda, South
Africa, Vietnam, Indonesia, Haiti, Ghana, Malawi and thePhilippines.

Environment
Society
Customers & Supply Chain
Performance
Reporting

1 Haiti

5 Zambia

9 Uganda

13 Nepal

2 Mauritania

6 Malawi

10 Kenya

14 Bangladesh

3 Ghana

7 Rwanda

11 Ethiopia

15 Indonesia

4 Nigeria

8 Tanzania

12 India

16 Philippines

To deliver sustained improvements to sanitary conditions foras many people as possible, LIXIL is focused on developing
SATO operations in a tailored way to meet local needs.
Producing SATO toilets locally keeps costs down andfacilitates broader distribution. Selling SATO toilets throughlocal partners creates employment and more concrete andentrenched local operations. By establishing a local Make,
Sell, Use cycle, individual regions can independently andconsistently improve their own sanitary conditions.

Announcement of SATO Toilet Systems, A New
Model to Meet Needs in India
India is striving to construct approximately 80,000 toilets a
day to help fulfill the government’s policy to eradicate open
defecation by 2019. In 2017, the LIXIL Group announced the
SATO V-TRAP in support of this policy.
The toilets recommended by the Indian government, Twin-Pit
Pour-Flush latrine systems, consist of two pits and a Y-junction
so that one pit can be filled up at a time.

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment
Society

Micro Flush Toilet System: Better Management of
Water Resources in Urban Environments

Green Toilet System: Safety Processing Human
Waste into Fertilizer

Using far less water per flush than a regular toilet, and recycling
sewage water to assist the flow in outside pipes, the Micro FlushToilet System significantly reduces the consumption of precious
clean water. It is particularly aimed at mitigating problems
related to scarce or unreliable water resources in urban
environments where the population is rapidly increasing.
Suitable for both stand-alone homes and multi-unitbuildings, the system prevents clogging of the sewage
system and features a comfortable sitting-type toilet that iseasy to clean and maintain. A flapper valve in the toilet bowl
is operated with a handle, and the valve and accumulated
water prevent odors from entering the room. A steeply angled
pipe connected to the toilet and sewage water system assists
the overall flow of waste.

The Green Toilet System safely processes human excrement
into fertilizer and provides that value to farmers throughthe creation of a viable business model. Solid and liquid
wastes are separated to prevent odors and prepared fortheir subsequent conversion into fertilizer, with maintenanceworkers collecting the waste from different tanks behind thetoilet and transporting it to a compost facility.
The Green Toilet System is aimed at communities withno water and sewage infrastructure, or that are too spreadout to justify a large sewage system. No water is used totransport the waste, circumventing the need for a traditional
sewage system. Additionally, the proper treatment of
human wastes protects groundwater and other resourcesfrom contamination. The system also creates employment
for collection services and compost facilities, providing afinancial incentive to prevent dumping.

Customers & Supply Chain
Performance▶ How "Micro Flush Toilet System" Works

Reporting

CASE STUDY

Providing the Green Toilet System in Refugee
Settlements with UN-Habitat
LIXIL Corporation worked with the United Nations Human Settlement
Program (UN-Habitat), which is tackling refugee settlement challenges indeveloping countries, to provide the Green Toilet System to the Kalobeyei
refugee settlement in Kenya.
Approximately 38,000 refugees live in the Kalobeyei settlement, andrefugees continue to flow into the settlement primarily from South Sudan.
Many of Kenya’s refugee camps are constructed as temporary emergency
sites, but the people in Kalobeyei tend to be long-term refugees who
have been in the settlement for over 20 years without being able to returnhome. Against this background, LIXIL is collaborating with local partners
to provide a long-term support to the Kalobeyei settlement to help the
refugees develop economic independence.
In addition to providing hygienic, safe toilets, the Green Toilet Systemaims to help refugees foster economic independence by using composted
fecal matter as manure for cultivating crops. We also conduct training
programs to ensure local people can maintain and manage the systemappropriately.

▶How "Green Toilet System" Works

Drain

Sanitary sewage
storage tank

Pump

LiquidSolid

Fertilizer

Soil Conditioner

Re-use sewage water to carry waste©Takeshi Kuno
Installing the system

Kalobeyei refugee settlement in Kenya

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment
Society
Customers & Supply Chain

Portable Toilet System: Hygienic, EfficientCollection of Human Waste
The Portable Toilet System is an in-home sanitation solution
designed for urban informal settlements that lack proper
sanitation infrastructure. It is being developed and fieldtested to offer disadvantaged households an ‘odorless’ toilet
from which human waste can be collected and treatedhygienically and efficiently.
The toilet is equipped with a removable cartridge, which istransported from individual homes to a designated collection
station, where the waste inside the cartridge is depositedand the cartridge cleaned. Professional waste treatmentcompanies then collect the accumulated waste from thestation and transport it to an offsite treatment site.
In informal settlement areas, where many of the poorest
people in developing countries live, it is difficult to build
sewage collection infrastructure or pit toilets, so hygienic
toilets are in short supply. LIXIL developed a portable toilet

system specifically for these areas, enabling us to introduce
compact, easy-to-install toilets for individual households anda hygienic and efficient system for collecting waste. LIXIL
has to date conducted a demonstration experiment in thePhilippines, and in the future, aims to reflect the opinions of
those who used them into product development.

▶How "Portable Toilet System" Works

Collection
StationTreatment
Site

The Toilets for All Project
The "Toilets for All" project aims to improve theunderstanding of global hygiene issues within Japan, andimprove basic sanitation in developing countries. Under
the Toilets for All project, for each LIXIL shower toilet soldin Japan, LIXIL donates one of its simple and innovative
SATO products to a developing country in Asia and Africa.
To ensure hygienic toilets swiftly reach regions and people
in dire need of improved sanitation, LIXIL is conducting the
project in cooperation with several organizations of the United
Nations and international NGOs. In 2017, the support ofconsumers resulted in 208,805 units for donation. Due to thesuccess of the project in 2017, the project is continued into
2018 from April through September.

Performance
ReportingToilets to be donated from FYE2018 project

208,805 units

WEB

Toilets for All (Japanese only, LIXIL)

ムンバイのスラム街

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Our Approach > Water Conservation & Environmental Sustainability

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability〈Relevant SDGs〉

Our Approach

Water Conservation & Environmental Sustainability
By 2030, achieve a net zero balance between LIXIL’s
environmental footprint and the positive environmental
contributions created through our products and services● Design products and services with consideration to lifecycle impacts andenvironmental efficiencies, and increase the sales share of this product portfolio● Lower the environmental burden of the overall business process by improving
energy and water efficiencies and resource recycling

Diversity & Inclusion

Our People
Environment
Society
Customers & Supply Chain
Performance
Reporting

The 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.

Approximately 32% of all energy consumed
in the world is used by buildings.

Background
Sustainable use of natural resources is ever more criticalfor our society, and given the nature of LIXIL’s business,there are multiple areas where our actions can make adifference. By 2030, approximately 47% of the world’s
population is expected to be living in areas of high water
stress. Additionally, LIXIL’s business is strongly linked tobuildings, which account for 32% (24% residential and 8%
commercial) of total global final energy use, and without

ENERGYCONSUMPUTION

action, energy use by buildings is estimated to more thandouble by 2050. With regards to other natural resources,
aluminum, one of LIXIL’s important raw materials, hasbeen identified as one of the priority materials in the metals
category and requires urgent attention.

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Our Approach > Water Conservation & Environmental Sustainability

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability

Activities
LIXIL Group Environmental Strategy
The LIXIL Group considers environmental challenges,
such as water conservation and environmental protection,
to be one of our most important business initiatives. Asa ‘Living Technology’ company, we are committed to ourEnvironmental Strategy, which pledges that LIXIL will provide
environmental solutions through our products and services.

Diversity & Inclusion

Our People
Environment
Society

Environmental Vision 2030

CASE STUDY

To mitigate global climate change, the Paris Agreement
set a long-term ambition to achieve a balance between
anthropogenic emissions by sources and removals by sinksof greenhouse gases in the second half of this century. In
order to contribute to this carbon-neutral future, the LIXILGroup created a new Environmental Vision in 2016. By 2030,
the positive environmental contribution from our products
and services will surpass the environmental footprint fromour entire business process, thus, achieving a NETZERO
Environmental Footprint. We will achieve this throughinnovative technologies, such as low-carbon and waterefficient technology, and also by reducing the environmental
impact of every process of the business, including
procurement, production, product use, and disposal.

LIXIL’s Targets Were Certified by the Science
Based Targets initiative
The LIXIL Group target for reducing greenhouse gases, based on its
Environmental Vision 2030, has been recognized as a scientifically basedtarget that complies with the Paris Agreement objectives under the Science
Based Targets (SBT) initiative, which is operated by international NGOs
including CDP, UN Global Compact (UNGC), and the World Resources
Institute (WRI). This is the first time worldwide that a company in thebuilding products sector has received approval. This target aims to reduce
scope 1 and 2 emissions*1 by 30% compared to the FYE2016, and to
reduce scope 3 emissions*2 resulting from the use of our sold products
by 15%. To achieve these targets, we are striving to use energy more
efficiently, introduce renewable energy sources, and actively promoting the
spread of superior environment-conscious products and services.

Customers & Supply Chain
Performance
Reporting
PDF

Press Release (274KB)WEB

The SBT initiative website (External HP)

Greenhouse
reduction
targets by 2030

Scope 1 & 2*1

Scope 3* (Use of products)
2

-30%
-15%

*1 Scope 1 & 2: greenhouse gas emissions caused through the company’s own use of fueland electricity.
*2 Scope 3: Greenhouse gas emissions resulting in the value chain including both upstream
and downstream emissions as procurement and the use of sold products.

LIXIL CHITA SOLAR POWER (Generated energy in FYE2018: approximately 6,300MWh)

LIXIL Group Corporate Responsibility Report 201824

Our Approach > Water Conservation & Environmental Sustainability

LIXIL Group
Corporate
Responsibility Report 2018

MessageCore Environmental Strategy Themes

CR Management Structure andMaterial Issues Selection

To achieve our Environmental Vision, we are focused on threecore areas, based on clearly defined targets and actions plans.

Our Approach

1

2

3

Greenhouse gas
reduction

Sustainable
water use

Sustainable useof resources

Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment

2020 Mid-term Targets

Society

The LIXIL Group has set 2020 mid-term targets and actionplans to help realize its Environmental Vision 2030. Thesetargets have been reviewed to reflect the LIXIL Group’s
Medium-Term Plan that was launched in April 2018.
More than 90% of the environmental impact through theentire value chain of the LIXIL Group occurs when our products
are used, making product and service initiatives an important
aspect in achieving our Environmental Vision 2030. The LIXILGroup has built a global environment management system,
uniting in a determined effort to gain a better understanding of
the environmental impact of our entire value chain and develop
global activities to reduce that impact.

Customers & Supply Chain
Performance
ReportingCR

Details about the environmental initiatives (P.44)

Environmental Issues
Improvement in environmental
value of our products andservicesGreenhouse gas
reduction

Environmental management

2020 Mid-term Targets

CO₂ reduction contribution through products andIncrease by 1.36 times (compared to FYE2016)services
CO₂ emissions through manufacturing andsales*1

Reduce by 8% (compared to FYE2016)

CO₂ emissions from use of sold products

Formulate KPI/target and implement measures
based on business plan

CO₂ emissions intensity basis by logistics

Reduce by 5% (compared to FYE2016)

Sustainable wateruse

Improvement of water use efficiency

・Complete the water risk analysis ofglobal production sites
・Select high-risk sites, formulate KPI/
target and implement measures

Sustainable useof resources

Waste recycling rate

Japan & Europe : 95%
Asia : 68%
North America : 40%

Coverage of EHS management system

100%

Number of environmental law violations*2

0Greenhouse gas
reduction
Environmental footprint
reduction from our entire
business process

KPI*1 CO₂ conversion factor is refered to the publication of each electricity company which our sites have a contract*2 Number of significant violations with penalty of operational suspension or fines

LIXIL Group Corporate Responsibility Report 201825

Our Approach > Diversity & Inclusion

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene〈Relevant SDGs〉

Our Approach

Diversity & Inclusion
By 2020, establish the culture of diversity and inclusion
within our organization and with all employees● Implement internal diversity initiatives around the world● Promote the development of universal design products and services that are“Good for one, Good for all”

Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment
Society
Customers & Supply Chain

LIXIL is committed to embracing the diversity of people insociety and within our firm. This includes enhancing qualityof life and well-being for the elderly and the physicallydisabled through LIXIL products and services, as well as
harnessing the intelligence and perspectives of LIXIL’s diverse
workforce as an engine for growth and innovation.

More than one in every five people around the world is projected to
be over the age of 60, with many people living either alone or with
their spouse only.

Performance
Reporting

Background
With major demographical changes predicted for the next several
decades, it is crucial to understand and embrace diversity andinclusion. By 2050, more than one in every five people around theworld is projected to be over the age of 60, with many people living
either alone or with their spouse only. Approximately 15% of theworld’s populations today live with some degree of disability, and thisrate is increasing every year.
Additionally, despite the fact that multiple studies suggest thatgender diversity correlates with less volatile and improved financial
performance of corporations, in Japan, female participation in theworlforce is still low compared to other countries.

LIXIL Group Corporate Responsibility Report 201826

Our Approach > Diversity & Inclusion

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment
Society
Customers & Supply Chain
Performance

Activities of LIXIL
Launch of the Universal Design Project
The LIXIL Group invests in developing universal design(UD), which enables the comfortable living for all people. To
further promote these activities , we launched a committee
led by senior managers in FYE2018.
The committee invited a diverse selection of members
from across the Group (marketing, sales, R&D, public
relations, etc.) to attend workshops to help formulateadvanced UD concepts and a framework for future UD
promotion.
Under this new framework, we will continue to work on
the UD project by pursuing ease-of-use, including usability,
accessibility, and highly sensitive LIXIL-style designs, so we
can develop products and services that meet the needs of
all customers.
WEB

Examples of LIXIL's Universal Design Products and Services

WEB

Details (Japanese only, LIXIL)

ToiletBathroom

Bathroom vanity

Honoka-Light

Push faucet

Wheelchair accessible vanity

Stairs, corridors, entrances

Entrance, exterior

Public toilet

Stairs with slip prevention

Slide system

Large remote control

Kitchen

Living room

In town

Hands free faucet

Non rail sash

Support rail UD

Universal Design Policy (Japanese only, LIXIL)

Reporting

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Our Approach > Diversity & Inclusion

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

The LIXIL Group Provides Universally
Accessible, Barrier-free, and Well-designed
Products for Public Spaces
Barrier-free experts encourage the placement of light-yellow
guiding blocks on all pathways, but many ambiance-sensitive
designers have avoided using them because the previous
yellow shade stood out too much, so it was difficult to fulfill
both parties’ needs. LIXIL Corporation developed new blocks
to guide people with sight impediments in a new cool-yellow
color that was equally visible but blended better with thesurroundings. The new blocks went on sale in FYE2018.

Our People

Launched Premio Serviced Homes for the Elderly
LIXIL Senior Life Company, which manages elderly homes,
launched Premio, LIXIL Group’s first contract-based facility
management business for serviced homes for the elderly.
Premio Kawaguchi, the first facility in the Premio series,
opened in March 2017. By using LIXIL products at elderly
homes, LIXIL can continuously assess how to improve its
product development for the elderly.
LIXIL also displayed a lineup of products for the elderly at
the 44th International Home Care & Rehabilitation Exhibition(H.C.R. 2017), the largest international home care andrehabilitation exhibition in Asia, further demonstrating its
commitment to inclusive design.

CASE STUDY

Universal Run:
Sports Prosthesis Experience Class
LIXIL aspires to the building of a universal society whose members can
all lead active and fulfilling lives while respecting each other. As part ofthat aim, we held "Universal Run: Sports Prosthesis Experience Class" atelementary school in Japan. We wanted as many people as possible toconsider and personally feel what universal means by talking with people
who wear artificial limbs and attending this program.
In FYE2018, 6,030 people from 80 schools participated in theelementary school "Universal Run" program.

Environment
Society
Customers & Supply Chain
Performance
ReportingStudents who wear artificial limbs

New cool-yellow color blocks

LIXIL Senior Life Company “Premio Kawaguchi”

WEB

Details about the activity (Japanese only, LIXIL)

Participants to the "Universal Run" program

Number of participating schools

LIXIL Group Corporate Responsibility Report 2018

6,030
80
28

Our Approach > Diversity & Inclusion

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Our Approach
Corporate Responsibility Strategy
Three Strategic Pillars
Global Sanitation & Hygiene
Water Conservation & Environmental
Sustainability
Diversity & Inclusion

Our People
Environment
Society

Universal Design:
Good for One, Good for All

Activities of LIXIL (Diversity of Employees)
LIXIL Diversity & Inclusion Declaration

LIXIL Corporation conducts "Universal Design: Good for One,
Good for All" school visit program to teach children about thesignificance of universal design concepts. LIXIL employees
create their own teaching materials and conduct lessons
for elementary school children. The program are designed
to highlight examples of universal design in nearby streets
and individual homes to deepen students’ understandingof diversity in terms of gender, age, nationality, ability, anddisability, and encourage them to think what they can doand how they can take action. In FYE2018, 1,290 children
from 21 schools took part in "Universal Design" school visit
program.
CR

We leverage our differences to create new energy and engagement in the workplace generated by open and honest dialogue across ourorganization. These efforts will enable our employees to build an entrepreneurial mindset that will drive growth and sustainable innovation.

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 ofgender 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.

Details about the activity (Japanese only, LIXIL)

Customers & Supply Chain
Performance
Reporting

CASE STUDYInternational Association of Universal Design(IAUD) Award

Disability

LIXIL Diversity& Inclusion
four focus areas
LIXIL has set four focus areas touphold its Diversity & Inclusion
Declaration, and each region will
promote initiatives to address
and improve the focus areas thatare the most relevant for eachcountry and region.

Culture & Identity

In 2018, LIXIL’s “Toilets for All” initiative won an International Association
for Universal Design (IAUD) award*. The project was highly praised forits scope, scale, passion, and implementation. The judges described theinitiative as “a life-saving innovation for the poorest regions of developing
countries that adds a new dimension to universal design.”*An initiative directed by the IAUD general incorporated foundation that awards groups andindividuals who conduct or propose activities designed to help achieve a society in which
the greatest number of people can live comfortably.

We will raise awareness, provide
education and resources, andproactively create a culture thatembraces, enables, values, andmaximizes the contributions of persons
with disabilities.

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.

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

Details about the diversity (P.40)

LIXIL Group Corporate Responsibility Report 2018

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity

Environment
Society
Customers & Supply Chain
Performance
ReportingOur People
We are committed to respecting the individuality of all employees
and offering a rewarding working environment.

LIXIL Group Corporate Responsibility Report 201830

Our People > A Fair & Rewarding Workplace

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People

A Fair & Rewarding Workplace
The LIXIL Group seeks to create a fair and rewarding workplace, develop a strong and cohesive corporate culture, and foster anopen atmosphere between the unions and the company.

Action plan

Conduct a regular employee awareness survey across the Group

KPI

Implementation of action plans derived from the global employee awareness survey across the Group (%)

Our People
A Fair & Rewarding Workplace

FYE2017Work Safety & Well-being
Talent Development

Target· Implementation of action plans derived from the 2015 global employee awareness survey across the Group: 100%Progress· Implemented actions in each organization based on the results of the Group-wide employee survey conducted during FYE2016· Set up the LIXIL Engagement Committee and shared best practices Group-wide via the intranet

Target· Implementation of action plans derived from the 2017 global employee awareness survey across the Group: 100%Progress· At least one department in all major Group companies created an action plan
· Promoted implementation of action plans in each country and region by offering stronger training programs for human resource
departments· Confirmed steps being taken to collect information on action plans from all regions worldwide and made proactive
improvements
The South Africa office developed a career matrix that outlines the necessary techniques and skills required for eachdepartment and job level, which it shares with employees

Diversity & Equal Opportunity

Environment

FYE2018

Society
Customers & Supply Chain
Performance
Reporting

Action plan

Hold regular discussions between the union and the company

KPI

Number of meetings of the Central Labor Relations Committee at LIXIL Corporation (Japan only)
Target· Hold nine meetings of the Central Labor Relations Committee annually(*Also hold regional Labor Relations Committees in order to share details of actions by Central Labor Relations Committee
and debate various issues)

Progress· Held nine meetings· Established smooth labor relations by promoting prompt communication, including meetings and councils, on each of thethemes stipulated under the basic labor-management agreement

Target· Hold nine meetings of the Central Labor Relations Committee annually to facilitate regular communication between the unionand company

Progress· Held nine meetings of the Central Labor Relations Committee annually· Maintained labor relations by promoting prompt communication, including meetings and councils, on each of the themes
stipulated under the basic labor-management agreement

FYE2017

FYE2018

 Our Approach to Personnel
Management
The LIXIL Group strives to create an environment thatencourages employee diversity, inspires pride in thecompany, and enables each individual employee to maximize
their productivity and their potential. We have focused on
improving our work styles to ensure employees’ enthusiasm
and motivation, and revising our human resource systems
to encourage employees to take paid holidays; this includes
offering more comprehensive childcare and nursing care
support, and promoting personal career development.

 Employee Opinion Surveys
In order for the rapidly evolving LIXIL Group to achieve
further integration as One LIXIL, we believe it is importantto understand our current situation and actively incorporate
employees’ views in improving working environments.
Accordingly, from FYE2016, we have combined employee
opinion surveys that were previously conducted separately
within each group subsidiary into one global survey.
Through the second global survey conducted in 2017, wewere able to collect opinions from 90.3% of the employeesin 21 different languages. That’s a total of 56,364 responses.
Since then, not only have we reported the results to the
managers of our major global organizations and disclosed
them to employees, we have also introduced an online
system that enables each employee to freely view andanalyze their own company’s results. The survey has helped
gain a solid understanding of each organization’s strengths
and issues, as well as enabled the development of action

LIXIL Group Corporate Responsibility Report 201831

Our People > A Fair & Rewarding Workplace

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity

Environment
Society
Customers & Supply Chainplans. As part of our group-wide inclusive actions, we also
introduced an internal communication tool in 2017, a systemthat enables an open communication not only between
management and employees, but also among employees.
We aim to reflect employees’ opinions in the management
quickly to support business efficiency and improved
productivity. In the same vein, we seek to clarify our future
strategy through our Medium-Term Plan, and conduct global
training to improve communication skills of managers acting
as mediators. Ensuring LIXIL’s thinking and targets arestrongly communicated and fully understood is an effective
way of nurturing employees’ empathy towards the Group’s
aims and strategies.

Supporting a Healthy Work-Life
Balancegave up work due to childbirth, childcare, or nursing care
commitments to be reemployed; we are subsidizing extended
daycare fees, providing subsidies equivalent to social security
premiums to employees on temporary nursing care leave,
and offering “Papa Childcare Leave” to male employees
whose partner has just had a baby.
From FYE2018, we introduced a telecommuting system for
employees with childcare or nursing care commitments, with
164 employees making use of that system in the first year.
LWT & LHT Asia (GROHE Sanitary Products Shanghai)
forbids employees from doing more than 36 hours ofovertime a month to promote a strong work-life balance.

Number of Maternity Leave Users ★
(Persons)

400

Reporting

100.5

100.0

Performance
At the LIXIL Group, the executive management team is
actively supervising the creation of a rewarding working
environment in which each and every employee can perform
to their full potential.
Holding active Work-Life Flexibility (WLF) Advisory
Discussions between the union and the company, LIXIL
Corporation is committed to enhancing the necessary
systems and cultivating the right atmosphere. We currently
have support practices in place for female employees looking
after young children, and are now focusing on supporting
our male employees with their childcare commitments,
in addition to supporting all employees looking after sickor elderly relatives. We have introduced a variety of new
systems, including hourly based paid holidays for all
employees, career return systems that allow employees who

101.4

300

(Persons)

400

100.0
95.9

300

93.5
309
4

100.0

(%)

100.0

100

97.9
95.7

97.9
95.4

311

286
6

75

7

50

200
305

304

280

25

100

0

0
FYE2016

103.5

(%)

100

FYE2017

FYE2018

Return to work ratio (Male, LIXIL Group total)
Return to work ratio (Female, LIXIL Group total)
Return to work ratio (Female, LIXIL Corporation)

95.5

291

Number of Child-Care Leave Users ★

93.0
300

290

Number of users (Male, LIXIL Group total)

75

Number of users (Female, LIXIL Group total)（百万t-CO2）*Directly hired employees in Japan only

50

200

Number of users (Male, LIXIL Group total)

Percentage
Staff
Working 1 Year After
Number of usersof(Female,LIXILStill
Group total)
Return to workLeave
ratio (Male, LIXIL Group total)
Childcare
Return to work ratio (Female, LIXIL Group total)

100

213

197

198

25

FYE2016

00
FYE2016

FYE2017

FYE2018

Return to work ratio (LIXIL Group total)

Return to work ratio (Female, LIXIL Corporation)

FYE2017

FYE2018

Male

100.0%

100.0%

100.0%

Female

92.8%

93.1%

97.8%

Total

92.9%

93.3%

97.8%

Return to work ratio (LIXIL Corporation)
Number of users (LIXIL Group total)
Number of users (LIXIL Corporation)*Current employment of original LIXIL employees in Japan at the end of the business period
one year after their return to work

*Directly hired employees in Japan only
*The FYE2016 figures have been revised on January 12, 2017

Number of users (LIXIL Group total)
Number of users (LIXIL Corporation)
Return to work ratio (LIXIL Group total)
Return to work ratio (LIXIL Corporation)

LIXIL Group Corporate Responsibility Report 201832

Our People > A Fair & Rewarding Workplace

LIXIL Group
Corporate
Responsibility Report 2018

Message

Number of Nursing-Care Leave Users ★

CR Management Structure andMaterial Issues Selection

20

Our Approach

15(Persons)

100.0
85.7

Our People

10

(%)

100

17
75
12

11

13

A Fair & Rewarding Workplace
Work Safety & Well-being

100.0

50

Environment
Society5

10

9(Days)

25
10

0

2

2

4

FYE2016

FYE2017

FYE2018

Number of users (Female, LIXIL Group total)
Number of users (Male, LIXIL Group total)

Customers & Supply Chain
Performance Preventing Overwork
LIXIL Group top management are proactively seeking to
improve productivity by eradicating long working hours andensuring a healthy work-life balance.
To encourage employees to actively reduce overtime,
LIXIL Corporation has designated Wednesdays to be a noovertime day and has implemented an advance declaration
policy for overtime. From FYE2016, managers and staff
are required to carefully manage their working hours.
Employees who consistently work long hours are interviewed
by an industrial physician to prevent mental/physical healthissues. The usage of paid leave has been increasing as of
FYE2015, when we introduced measures such as “memorial
leave,” which enables employees to take off time wheneverthey want for personal anniversaries, while we have also

10.5

9.2

9.4

8.8

9.1

8.1

FYE2016

FYE2017

FYE20180
5Return to work ratio (LIXIL Group total)*Directly hired employees in Japan only

Reporting

Paid Leave Days Taken per Employee ★
15

Talent Development
Diversity & Equal Opportunity

encouraged employees to take five consecutive days ofannual leave at a time. As a result, paid-leave usage is over
50% in 2017. We intend to continue working to increase thisratio even further.

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

Average Monthly Overtime Hours per Employee ★
(Hours)

25
20

17.8

21.2

21.8

16.9

17.1

FYE2017

FYE2018

15
15.3

10

FYE2016
LIXIL Group total
LIXIL Corporation*Directly hired employees in Japan only Labor-Management Relationship
The LIXIL Group believes that building mutual trust between
the unions and the company based on an equal relationshiphelps build a fair and rewarding workplace and leads toimproved business performance.
LIXIL Labor Union, which adopts a union shop systemfor original permanent employees of LIXIL Corporation,is comprised of 13,572 registered members as of March
31, 2018, a 100% membership rate. The number andratio of other LIXIL Group labor union participants andunion members are: LWT Americas (American Standard
America, Inc.)：328 members (100%); and LWT South
Africa (Grohe Dawn Watertech Fittings Division (Pty) Ltd.):
861 members (61.7%).
The fundamental labor-management agreement includes
items relating to health and safety and working conditions.
Labor-management consultations are conducted in the formof regular discussions and information sharing on businessstatus, working conditions, health and safety issues, etc., andthe union and the company work together to resolve issues.
When there are changes to working conditions and/or
other systems being introduced or revised through labormanagement consultation, the union and the company
cooperate to ensure employee awareness of the changes.
This is facilitated through posting the information on
the corporate intranet, cascading the information down
through relevant general affairs departments, and the union
distributing its own Union Guide to all union members.
FYE2018 human resource performance data indicated with ★ havereceived an independent practitioner’s assurance.
CR

Scope and details (P.90)

LIXIL Group Corporate Responsibility Report 201833

Our People > Work Safety & Well-being

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People

Work Safety & Well-being
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.

Action plan

Build a common Group EHS management system

KPI

Group-wide coverage of EHS management system (%)

Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Diversity & Equal Opportunity

Society·S et up a Group EHS Committee·F ormulate Group-wide operational rules (EHS manual, EHS governance inspection guidelines)

Progress·S cope of EHS performance data capture (employees): 98%·D eveloped and implemented Group Occupational Health and Safety Policy, core rules such as the EHS manual, and EHS
internal audit guidelines

Target·G roup-wide operational scope of occupational health and safety covered by the EHS management system: 98%

Progress·T he EHS performance data acquisition rate (in terms of the number of employees): 100％
·H
 Q EHS Department conducted internal audit of EHS managers of all businesses·T he EHS performance data collection and management system installation was completed. A monthly data collection andmanagement process was mandated

FYE2017

Talent Development

Environment

TargetFYE2018

Customers & Supply Chain
Performance
Reporting Our Approach
The LIXIL Group, in our Group Charter of Corporate Behavior,commits to “promoting the mental and physical well-beingof all workers by prioritizing safety in order to realize an ideal
accident-free working environment.” To this aim, we haveintroduced an occupational health and safety management
system and implemented a PDCA approach to help prevent
accidents at work.

LIXIL Group Occupational Health and Safety
Principles
LIXIL Group believes that all occupational injuries anddiseases can be prevented through internal initiatives, andwe aim to achieve zero work-related injuries and diseases. To
achieve this goal, we share a common core value that “eachperson is irreplaceable,” and we foster a company culture
where we always act with a “safety first” mindset.
PDF

LIXIL Group Occupational Health and Safety Principles (41KB)

LIXIL Group Corporate Responsibility Report 2018

34

0.26

0.20

0.04

0.15
0.02

0.10

LIXIL Group
Corporate
Responsibility Report 2018

Our People > Work Safety & Well-being

0.02
0.01

0

0.00

0.01

0.01

FYE2016

FYE2017

FYE2018

0

LTIFR*1 (Directly and indirectly employed stuff [left])
LTIFR (Contractor [left])
Severity Rate*2 (Directly and indirectly employed stuff [right])

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development

Severity Rate (Contractor [right])

Implementation System

The Group EHS Committee, chaired by the Group’s deputy
president and executive officer responsible for optimizing
production, sets common employee health and safety policies
and core EHS rules. Upon which Group-wide EHS management
systems are built and their applicable scope is extended.
We also have a Health and Safety Committee in eachbusiness segment, which discusses health and safety issues
to help generate continuous improvements.

Society
Customers & Supply Chain
Performance
ReportingWorking to Eradicate Work-related Accidents

dangers at work. That means pinpointing and eradicating any dangerous
elements relating to machinery, facilities, or unsafe action by workers,

OIFR ★

and sharing best-practice examples to avoid work-related accidents. To
prevent reoccurrence, we compare and analyze any similarities between
accidents that do occur, and instigates improvements. LIXIL Corporation

FYE2016

FYE2017

FYE20180

00from Japan and overseas can experience simulations of past accidents.

0each region to help promote further progress. For instance, LWT EMENA

also provides practical training sessions (“Anzen Dojo”) in which staff
Directly and indirectly
employed staff

Diversity & Equal Opportunity

Environment*1 Lost Time Injuries Frequency Rate: Number of lost-day occupational injury cases / Total
CASE STUDY
working hours × 1,000,000*2 Severity Rate: Total days lost due to occupational accidents / Total working hours × 1,000 （百万t-CO2）(Total days lost due to occupational accidents = actual days absent from work)
Scope: FYE2016 covers directly employed staff at production and non-production bases inJapan.
FYE2017 and FYE2018 cover directly and indirectly employed staff and contractor
The LIXIL Group seeks to actively prevent work-related accidents byat production and non-production bases in Japan and a majority of overseas
production bases.
ensuring all employees follow established safety rules and anticipate*Ex cludes LIX IL V IV A CO RP O RA TIO N

 The Occurrence of Work-related
Accidents

Contractor

Severity Rate and Lost Time Injuries Frequency
Rate ★
(LTIFR)(Severity Rate)

0.60

−

0

*OIFR：Occupational Illness Frequency Rate
Number of lost-day occupational illness cases / Total working hours × 1,000,000
Scope：FYE2016 covers directly employed staff at production and non-production bases inJapan.
FYE2017 and FYE2018 cover directly and indirectly employed staff and contractor at
production and non-production bases in Japan and a majority of overseas production
bases.
*Ex cludes LIX IL V IV A CO RP O RA TIO N

and LWT Americas attached spotlights to the back of their forklifts toprevent collisions with pedestrians walking behind blind corners when
the forklift is reversing. LWT Japan improved on this idea by switching the
spotlights for strip lights so that pedestrians notice the lights more easily.

0.12
0.52

0.50

0.10
0.46

0.40
0.31

0.30

0.02

FYE2016

FYE2017

FYE2018

Directly and indirectly
employed staff

0

0

0

Contractor

−

0

0

0.04

0.15
0.10

Number of Work-related Fatalities ★

0.08
0.06

0.26

0.20

0.02
0.01

0

LIXIL Water Technology (LWT) shares and develops best practices from

0.00

0.01

0.01

FYE2016

FYE2017

FYE2018

LTIFR*1 (Directly and indirectly employed stuff [left])0*Scope: FYE2016 covers directly employed staff at production and non-production basesin Japan.
FYE2017 and FYE 2018 cover directly and indirectly employed staff and contractor
at production and non-production bases in Japan and a majority of overseas
production bases.
*Ex cludes LIX IL V IV A CO RP O RA TIO N

Practical training sessions (Anzen Dojo)

LTIFR (Contractor [left])
Severity Rate*2 (Directly and indirectly employed stuff [right])
Severity Rate (Contractor [right])*1 Lost Time Injuries Frequency Rate: Number of lost-day occupational injury cases / Total
working hours × 1,000,000*2 Severity Rate: Total days lost due to occupational accidents / Total working hours × 1,000 （百万t-CO2）(Total days lost due to occupational accidents = actual days absent from work)
Scope: FYE2016 covers directly employed staff at production and non-production bases inJapan.
FYE2017 and FYE2018 cover directly and indirectly employed staff and contractor

LIXIL Group Corporate Responsibility Report 201835

Our People > Work Safety & Well-being

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity Work Safety & Well-being

Mental Health Care

Ensuring all employees are physically and emotionally healthy
is important for creating a vibrant and vigorous workplace.
The LIXIL Group seeks to support strong employee healthand well-being by providing various opportunities relating todisease prevention, health education and health promotion.
Working with the LIXIL Health Insurance Society, LIXIL
Corporation organizes its health support activities under the
LIXIL WELLNESS umbrella

We are also focused on caring for mental health, which isimportant in ensuring overall wellness of employees. We
have specialist industry physicians at our business sites,
and offer mental health management training for managers
to help create a working environment conducive to early
detection and early treatment. We also conduct seminars toensure all the employees have the correct knowledge to help
themselves, and offer a Workplace Reinstatement Program tohelp employees who have been on sick leave to facilitate theirreturn to the workforce.
To comply with new legal requirements on stress tests
introduced in FYE2017, we have been conducting stresstests each year between May and June from 2016. In
FYE2017, 84.5% of employees took the stress test, rising
to 93.9% in FYE2018. Workplaces with ten or more
respondents (departments, Group companies, sales offices)that were judged to be high stress locations are asked tocreate an action plan sheet, and alleviate any factors thatare causing stress. We also recommend workplaces to offer
a private appointment with an occupational physician toindividual employees judged to be under considerable stress.

Annual Medical Checkups

Environment
Society
Customers & Supply Chain
Performance
ReportingAll employees undergo annual medical check-ups, andindustrial doctors determine whether individual employee
require attention at work. In addition, employees with highhealth risks are encouraged to visit a doctor to enable themto continue working in a healthy and safe manner without
exacerbating their symptoms. Extra attention is paid to
encouraging priority cases (50 employees in FYE2017 and
37 in FYE2018) to visit a healthcare facility, and, as a result,
we achieved a 100% consultation rate. The LIXIL Health
Insurance Society covers basic medical examination fees forboth employees and their dependents.

Overseas Cases
To introduce a few of our international well-being
promotion activities, LWT & LHT Asia (LIXIL Thailand)
created exercise clubs designed to relieve stress and improvehealth awareness that all employees can attend after work.
The multiple clubs, ranging from badminton to futsal, havebeen in action, attracting over 1,200 participants. LWT & LHT
Asia (LWT China) also holds a health promotion club once
every two weeks to help relieve work-related pressure.

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

The LWT & LHT Asia (LIXIL China) healthclub puts on a show

FYE2018 human resource performance data indicated with ★ havereceived an independent practitioner’s assurance.

External Evaluations & Commendations
Health Promotion Event
We are actively encouraging exercise together with the LIXIL
Health Insurance Society. Since 2016, we have been holding
the LIXIL Walking Rally twice a year. The event held in thespring of 2017 drew the participation of about 2,000 people.

mental health education, and exercise promotion, received
high praise, and we received a top-class evaluation overall
thanks primarily to our superior systems and implementationof measures and policies.

As a result of these activities, the LIXIL Group has beenrecognized two years running in 2017 and 2018 as a certified
health and productivity management organization in thelarge enterprise White 500 category (a program operated by
Japan’s Ministry of Economy, Trade and Industry). LIXIL’s
health maintenance and promotion measures, which include
activities to prevent increasingly severe lifestyle diseases,

CR

Scope and details (P.90)

LIXIL Group Corporate Responsibility Report 201836

Our People > Talent Development

LIXIL Group
Corporate
Responsibility Report 2018

MessageOur People

Talent Development

CR Management Structure andMaterial Issues Selection

Action plan

Continue and optimize regular leadership training programs* in Japan and across the Group

Our Approach

KPI

Number of employees participating in leadership training

Our People

FYE2017

A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development

FYE2018

Diversity & Equal Opportunity

Environment
Society

ReportingTarget·N umber of participants: 200 employees

Progress·2
 37 employees participated in leadership training*·E xpanded development programs to enable all employees to take partTarget·N ext-Generation Human Resource Promotion Program: hold 5 classes for 116 employees at LIXIL Corporation (Japan only)

Progress· Numberof employees participating in the Talent Acceleration Program (TAP) for next-generation leaders: 116 employees,
5 classes (Japan only)

KPI
FYE2017

Customers & Supply Chain
Performance Personnel Development Initiatives

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

FYE2018

Percentage uptake of initial 3-year basic education (LIXIL Corporation, Japan only)
Target·－ *Newly added in FYE2018

Progress·－ *Newly added in FYE2018

Target·E
 nsure 100% introduction of three-year annual communication training (LIXIL Corporation, Japan only)

Progress·P ercentage uptake of three-year annual communication training: 100% (Japan only)·T he following number of employees participated in respective training:-1st-year training: 184 employees -2nd-year training: 147 employees -3rd-year training: 295 employees*“Leaders training” was changed to “TAP for next-generation leaders”

 Our Approach
Percentage uptake of initial 3-yearbasic education

100％

The LIXIL Group pursues talent development from a long-term
perspective in order to nurture personnel who can support the
LIXIL brand well into the future. As part of that process, we
focus on training next-generation leaders and employees after
evaluating global LIXIL personnel based on future businessneeds. To create a working environment in which all employees
can work and contribute enthusiastically, we support careerdevelopment from two angles: company-driven, strategic careerdevelopment, and self-motivated career development managed
by individual employees.

The LIXIL Group holds a People and Organization
Development (POD) with its CEOs in all major globalorganizations, and creates an annual next-generation training
plan to cover vital positions and help achieve our MediumTerm Plan. The next-generation training plan includes
general development such as seminars, on-the-job training,
strengthening of communication skills, and inter-company
transfer opportunities, and considers next-generation training
from a group-wide perspective in conjunction with multiple
departments.
In FYE 2018, we conducted the Global Challenge Program,
giving openly recruited employees of LIXIL Corporation achance to learn about our business in an overseas office
for a year. Additionally, this international work experience
is designed to help foster talent across the Group with theknowledge, experience, career independence, capability, andadaptability required for future global business.
LIXIL Corporation’s FYE 2017 career-support training
programs are developed for all managers based on theunderstanding that the best supporters for realizing
employees’ career ambitions are their managers. The
programs provide managers the right mindset and skills forhelping staff develop their careers, as well as for solving daily
management concerns. This program was officially launched
in FYE 2018.
In addition, we support both individual and organizational
growth through our open-recruitment job posting system
for specific positions. This seeks to improve the movementof company-wide personnel and ensure the optimum
placement of employees in order to match the needs ofspecific departments with employee ambitions.

LIXIL Group Corporate Responsibility Report 201837

Our People > Talent Development

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People
A Fair & Rewarding Workplace Our Approach to Talent Development

Training for Young Employees (Basic School)

LIXIL Corporation’s talent development consists of seamlesseducation and training programs when an employee ispromoted. The programs are designed to improve employees’basic skills, develop stronger expertise, and nurture nextgeneration managers. We have three types of educational
institutions, which are all intrinsically linked.

This established training system is designed to ensure young
employees in their first through third years of employment
can acquire the necessary competences to cope withhigher expectations and evolving roles within the company.
Our communication skills training for each year group, inparticular, focuses on developing the skills required to fostera flat and open corporate culture.

Work Safety & Well-being
Talent Development

1

Diversity & Equal Opportunity

Environment

2Society
Customers & Supply Chain

Basic School
Improving basic skills at each level and offering learning
opportunities to match employees’ enthusiasm for learning

Proactive Development of Company’s
Entrepreneurially Minded, Next-generation Leaders

Professional College

Improving the overall capability and expertise ofbusiness units and functional divisions

Our Talent Acceleration Program (TAP) is designed toproactively nurture the next generation of entrepreneuriallyminded management personnel, including young
employees in their 20s selected by open recruitment or

Next-generation Seminars

3

recommendation, middle managers in their 30s working
predominantly in the field, and division or section managers
in their 40s. We operate different training programs for eachof the three groups, focusing on fostering management
skills and a managerial mindset from an early stage. We arealso introducing an overseas MBA study program to help
employees with managerial experience acquire management
skills and develop an international outlook.

Providing proactive training forentrepreneurially minded employees

Performance
Reporting

Improve basic skills

Improve expertise

Next-generation initiatives

Basic School

Professional College

Next-generation Seminars

Essential skills training

Company or department specific education

TAP

Training and Education Support Programs
Conducted in FYE2018
Number ofParticipants

Item

Training Summary

New employee
training

Basic training for employees newly
entering the company

Training bycorporate positions

Training to develop skills andcapabilities required at eachposition level

Leadershiptraining (LT)Training to nurture next-generation
management personnel

120Management
training

Training for employees being
promoted to management positions

421

Division training

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

13,905

222
2,578*LIXIL Corporation only. Leadership training (LT) covers LIXIL Corporation and its subsidiaries

LWTJ

LHTJ

Finance

IT

HR

···

TAP

Sponsoring MBA
candidates

Career developmenttraining

New manager
training

S2 grade employee
training

Young employee
training

New employee
training

LJC

Communication
workshops

LIXIL Group Corporate Responsibility Report 201838

Our People > Talent Development

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development

Annual Training Hours and Costs per Employee(FYE2018)
Name of Company

Training
TargetTraining
Hours

Training
Costs

LIXIL Corporation

All

23.1 hours

91,395 Yen ★

LWT EMENA (Grohe AG)All

7 hours

21,817 Yen

LWT South Africa (Grohe Dawn
WaterTech Holdings Pty Ltd.)All

28 hours

17,014 Yen*Does not include online learning time such as e-learning.
*SCOPE: Directly hired employees only

Diversity & Equal Opportunity

Environment
Society
Customers & Supply Chain
Performance
Reporting Career Development Support
As well as offering a broad variety of training programs, LIXIL
Corporation also seeks to support individual employees’ selfmotivated learning. In 2014, we published an internal website
displaying a list of the correspondence courses and training
programs offered by the company. We provide future guidance
to employees, including case studies from senior colleagues.
LWT Americas offers a comprehensive LWTA University
training program for employees in America, Canada, andMexico. In addition to group lectures, the program uses
multiple resources such as Webinar, video, and electronic
books to meet a diverse range of employee needs. The
University offers 284 courses in total, from training designed
to improve leadership, management, and other basic skills to
specialized courses in specific fields such as compliance, theenvironment, health and safety, and product knowledge.
LWT EMENA is focused on expanding its e-learning
programs so that employees across a wide geographicalarea can take lectures. Employees can choose frommultiple online learning programs spanning product-related

Performance Evaluation Flowknowledge through leadership, multicultural understanding,and health management-related.

 Evaluation Framework
To ensure growth and positive results are fairly rewarded,
employees of all major LIXIL Group companies are reviewed
by their direct manager every six to twelve months, andan evaluated by at least two managers at the end of eachfinancial year.
LIXIL Corporation evaluates all employees to ensure
growth and accomplishments are justly awarded. Employees
are required to assess their own achievements against
objectives set at the beginning of the year, and managers
provide feedback in meetings on the performance evaluation
results. We nurture development by reviewing half-yearly
performance and communicating future expectations. To
secure fair evaluations, we develop managers’ personalevaluation skills through the Personnel Evaluation System
Manual or new manager training programs.
In addition to biannual staff review, LWT Americas
also conducts regular informal reviews. Going forward, we arelooking to increase the number of management-staff reviews,
and to introduce a new evaluation system that will help
employees and managers manage their target achievements.

Conducted at
the start ofeach half-year
periodDraft theme and objectives

Agreement on theme and objectives

Self-assessment

Initial performance review interview
Initial

Initial performance review meeting
Initial performance review

Conducted after
the conclusionof each halfyear period

SecondThird

Second performance review meeting
Second performance review

Third performance review meeting
Third performance review

Determination of final review rating

Assessment feedback

FYE2018 human resource performance data indicated with ★ havereceived an independent practitioner’s assurance.
CR

Scope and details (P.90)

LIXIL Group Corporate Responsibility Report 201839

Our People > Diversity & Equal Opportunity

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People

Diversity & Equal Opportunity
The LIXIL Group is committed to respecting diversity and recruiting and developing high caliber talent across the Group. We believethat harnessing the intelligence and perspectives of our diverse workforce is critical to driving growth and innovation.

Action plan

Promote the active participation of women in the workplace

KPI

Percentage of women among regularly recruited new hires (Japan only) (%)

Our People
A Fair & Rewarding Workplace

FYE2017Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity

Environment
Society

FYE2018·P ercentage of women among regularly recruited new hires in March 2016: over 30%

Progress·P ercentage of women among regularly recruited new hires in April 2017: 30.8%

Target·P
 ercentage of women among regularly recruited new hires (Japan only): over 30%

Progress·P ercentage of female new graduates (incl. those who completed graduate studies) employed: 31.5％(LIXIL Corporation, Japan only)

KPI
FYE2017

Customers & Supply Chain
Performance

TargetFYE2018

ReportingTarget·P
 ercentage of women participating in leadership training: over 20%

Progress·P ercentage of women participating in leadership training*: 20.8%

Target·P
 ercentage of women participating in Next-generation Human Resource Promotion Program: over 20%

Progress·T alent Acceleration Program (training for selected young employees) participation rate: 37.5％ (LIXIL Corporation, Japan only)

Create a staffing plan that encourages employment and development of people in local communities

KPI

Fulfillment of recruitment plans to increase the number of local factory employees (LIXIL manufacturing subsidiaries)

FYE2018

United under the LIXIL Diversity & Inclusion Declaration,
the LIXIL Group embraces diversity in gender, age, race,
nationality, values, background, etc., and turns the energy
and creativity generated by diversity into a source ofstrength. We aim to furnish a comfortable and friendly
working environment for all, enabling employees toapproach challenges with an entrepreneurial spirit, and be
appropriately evaluated for their performance.

Percentage of women participating in leadership training* (LIXIL Corporation, Japan only) (%)

Action plan

FYE2017

 Our Approach

Target·A chieve 100% of the recruitment plan (100 newly hired employees)

Progress·R ecruited 100 people (17 graduates from specialist high schools and 83 high-school graduates)·F requently visited schools in each area, and participated in job fairs

Target·A chieve 100% of the recruitment plan (200 newly hired employees)

Progress·2
 20 people recruited① 30 graduates from the National Institute of Technology② 5 graduates from junior colleges (2-year colleges)/ technical colleges③185 high school graduates·C onducted periodical school visits and the participation in career forums in the local communities

Promote the active participation of
women in the workplace

Percentage of female new graduates employed:

31.5

％

Create a staffing plan that encourages
employment and development of people
in local communities
Fulfillment of recruitment plans to increase the number of local
factory employees

Total:

220*“Leaders training” was changed to “TAP for next-generation leaders”

LIXIL Group Corporate Responsibility Report 201840

Our People > Diversity & Equal Opportunity

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity

Environment
Society
Customers & Supply Chain
Performance
Reporting

LIXIL Diversity & Inclusion Declaration
We leverage our differences to create new energy andengagement generated by open and honest dialogue across
our organization. These efforts will enable our employees
to build entrepreneurial mindset that will drive growth andsustainable innovation.
LIXIL has set four focus areas for promoting diversity
and inclusion: Gender & Age; Disability; Family & Life; andCulture & Identity, and promotes initiatives to address themost relevant focus areas for each country and region.
For instance, LWT South Africa selects people from ethnic
groups that are underrepresented in current management
positions and have traditionally found themselves in a
disadvantageous position, and employees from the factory
floor who exhibit potential leadership qualities, to participate
in a Future Leadership Program designed to teach the
management skills required for professional advancement.
As a global company, it is important to understand different
cultures in order to foster strong communication. In thatspirit, LWT Americas conducted a program to improve
employees’ understanding of values and work procedures inJapan, where the LIXIL Group Headquarter is located.
CR

LIXIL Diversity & Inclusion Declaration (P.29)

 Empowering Women in the
Workplace
The LIXIL Group believes the active participation of female
employees is vital to promoting diversity. In March 2012,
we had one female senior executive (1.0%) in the Group.

In March 2017, that number had risen to seven (11.9%),
including two directors, two senior managing executive
officers and three executive officers. As of March 31,
2017, the number of female managers increased to 687,
constituting 12.9% of total management personnel. In July
2017, the LIXIL Group was included in the MSCI Japan
Empowering Women Index (WIN), which selects companies
that champion gender diversity from among Japan’s top 500
companies in terms of market capitalization.
Number of female managers increased(FYE 2018 compared to FYE2012)

Approximately

6.8

for working mothers. Female employees intending to takechildcare leave use the provided tool and interview sheet
to help them communicate with their managers to design acareer path and support system, and ensure continued active
and rewarding work after the maternity leave.

times

LIXIL Corporation has set up the Diversity Promotion
Office to further advance careers for women. As a memberof “Male Leaders General Meeting (to promote the activerole of women)”, an initiative backed by the Cabinet Office,
we declared a WeDo Action* plan in August 2014, and are
facilitating the appointment of female directors, officers, andmanagers. As of March 2018, we had 168 female managers(6.1% of all managers), representing absolute growth ofapproximately 6.8 times compared to 22 female managers(0.9%) in March 2012.
*WeDo: Women Empowerment in a Diversified Organization*(): The ratio of women in all management positions*One female director and one female senior managing executive officer are from countries
other than Japan.
*Data excludes Senior Life Company of LIXIL Corporation

Number and Composition Ratio of Female
Managers ★
(Persons)
900
12.8
683

600
6.6

0

780

6.4

300

FYE2016

FYE2017

10

6.0

217

216

(%)
15

13.9

5

220

0

FYE2018

Composition ratio of female managers (LIXIL Group total)
Composition ratio of female managers (LIXIL Group in Japan)
Number of female managers (LIXIL Group total)
Number of female managers (LIXIL Group in Japan)

Taking the promotion of active female employees to thenext level, we are currently creating an environment in whichfemale employees can consistently develop their careers
even if they take time off for life events such as childbirth.
For example, we provide a Mamap career-building tool

*Directly hired employees only, data collected based on the qualification system used ateach operating company, as of March 31 of each fiscal year
Scope:
FYE2016 covers LIXIL Group in JapanFYE2017 and FYE2018 covers the entire Group（百万t-CO2）

LIXIL Group Corporate Responsibility Report 201841

Our People > Diversity & Equal Opportunity

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity

Other External Commendations of LIXIL Corporation· Received the highest level of
Eruboshi certification in 2017 from
the Ministry of Health, Labor andWelfare, which honors companies
that have actively promoted female
employment in accordance with
the Act on Promotion of Women’sParticipation and Advancement in the Workplace.
WEB

Details (Japanese only, LIXIL)

Environment
Society
Customers & Supply Chain
Performance
Reporting· In 2018, LIXIL was named as a Nadeshiko stock for thethird time. Nadeshiko brands are listed companies selectedby the Ministry of Economy, Trade and Industry and theTokyo Stock Exchange as providing outstanding professional
opportunities for women.
PDF

Details (Japanese only, 470KB)· Received the first Catalyst Distinction award from non-profit
Catalyst Japan in 2017, which honors women’s advancement,
and diversity and inclusion initiatives in the workplace.
WEB Fostering a Friendly Corporate
Culture Towards Sexual Minorities

 Employing Persons with
Disabilities

The LIXIL Group is working to create a work environment
friendly for LGBT and other sexual minority employees.
LIXIL Corporation held study sessions for employees andprovided badges and seals to employees who identified as
an LGBT Ally as a way to show their willingness to supportand understand.
The aim is to register at least two Allies in our 86 sites withover 50 employees, and so far, we have achieved that in 77%of the locations. Large numbers of Allies in Japan currently
share information through the LIXIL Ally network. Moreover,in February 2018, we invited people of sexual minorities to a
study session. Participants left the session having realizedthat they may have injured people unconsciously, or
determined to put what they had learned into practice andchange their regular behavior.

Many employees with disabilities work alongside those
without disabilities in the LIXIL Group because the Grouphas developed inclusive working environments, from R&D to
production, sales administration, and planning management,
to suit each individual’s specific disability. As of March, 2018,759 people with disabilities were employed across the LIXILGroup, representing 2.34% of the workforce (433.5 people
and 2.27% for LIXIL Corporation).
In 2014, LIXIL launched WING NIJI to provide support
for people with disabilities in the workplace. In addition toproper evaluation of work assignments and job development
opportunities, WING NIJI has been undertaking many
initiatives to determine the environments and conditions
required for people with disabilities and able-bodied people
to work together most effectively. For instance, introducing
large-font characters for people with impaired eyesight, andadjustable-height desks for people in wheelchairs.

最小サイズ
ヨコ 12.8 ミリまで

LIXIL Ally

Details (Japanese only, LIXIL)

ミニマムサイズ

LIXIL logo w7mm

An employee using software to enlarge text

LIXIL Group Corporate Responsibility Report 201842

Our People > Diversity & Equal Opportunity

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Our People
A Fair & Rewarding Workplace
Work Safety & Well-being
Talent Development
Diversity & Equal Opportunity

Environment
Society
Customers & Supply Chain
Performance
Reporting

LIXIL Corporation is also strengthening company-wide
efforts, including introducing sign language translation forstudy groups and conferences, and putting subtitles on
intranet videos for employees with hearing impediments.
Since 2012, LIXIL has been proactively employing
people with mental disorders and seeking to make various
efforts and considerations on business to improve working
environments to suit the capabilities and characteristics ofeach individual employee. For instance, we would ask people
who are prone to anxiety to do tasks that fit their pace ofwork, or leave an empty desk in front of an employee whogets distracted by other people around them, or allow them to
障がい者雇用率* 全体
work in a free space.
障がい者雇用率 うち
（株）
LIXIL
In May 2016, LIXIL Corporation received certification
障がい者雇用数 LIXILグループ合計
障がい者雇用数
うち
（株）
LIXIL
from the Ministry of Health, Labor and Welfare
as a leading
company in the active employment of persons with mental
and other disabilities.
By sharing these initiatives with other companies andgovernment institutions, LIXIL is seeking to help createa social structure in which people with disabilities canparticipate actively.

Number and Percentage of Disabled Employees ★
(Persons)

CASE STUDY

(%)

1,250

2.36

2.34

2.39

2.50

1,000

2.22

2.26

2.29

2.00

750

743

759

762

1.50

500

1.00

Frameworks Encouraging Employee Activities
The LIXIL Group has also established frameworks to support independent
employee activities so that each and every employee can work
enthusiastically and respect each other’s differences.
In 2017, LIXIL Corporation launched the LIXIL Diversity Network.
In addition to the currently operating women’s network, we have also

250

0.50
420

427

437

0

0
FYE2016

FYE2017

FYE2018

Employment rate* (LIXIL Group total)
Employment rate (LIXIL Corporation)
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

launched networks for employees involved in childcare and nursing carelife stages, employees with disabilities, and sexual minorities. People withan interest in any of these areas are actively encouraged to get together
on a personal level to share their troubles and resolve problems, andto improve individual skills and overall corporate value. For instance, toencourage more sales women, who still represent a small number in
the industry, to participate actively, we run a Women’s Sales Group inwhich experienced saleswomen offer support to younger colleagues. The
use of video conferencing enables female employees in areas with few
saleswomen nearby to connect with experienced people throughout Japan.
In FYE 2018, LWT Americas also set up Business Resource Groups

Creating Local Employment
Opportunities(BRG) such as millennials, working women, and multiple cultures, sothat employees from diverse backgrounds could meet people from similar
cultures and age groups and avoid feeling isolated. The company alsooffers programs that can provide employees with mentors from similar
backgrounds.

LIXIL Corporation supports the growth of employment
opportunities in the regions where we operate by employing
technical college and high-school graduates as local
permanent employees at our plants in Japan.

FYE2018 human resource performance data indicated with ★ havereceived an independent practitioner’s assurance.
CR

Scope and details (P.90)

LIXIL Group Corporate Responsibility Report 2018

43

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People

Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Society
Customers & Supply Chain
Performance
Reporting

Environment
With the desire to help people live in harmony with the Earth, we are committed to continuing
our efforts to be environmentally sound in every aspect of our businesses activities.

LIXIL Group Corporate Responsibility Report 201844

Environment > Environmental Management

LIXIL Group
Corporate
Responsibility Report 2018

Message

Environment

Environmental Management
In order to achieve our Environmental Vision 2030, the LIXIL Group has committed to reducing the environmental footprint of ourbusiness operations through launching a Group-wide Environment, Occupational Health and Safety (EHS) management system.

CR Management Structure andMaterial Issues Selection
Our Approach

Action plan

Build a common Group EHS management system

Our People

KPI

Group-wide coverage of EHS management system (%)

Environment

Target·E stablish a Group EHS Committee·F ormulate Group-wide operational rules (EHS manual, EHS governance inspection guidelines)·S tart collecting and reporting on Group-wide EHS performance data

Progress·S cope of environmental performance data captured (offices and companies): 96%·B uilt Group-wide EHS enhancement framework. Convened the first EHS Committee·D eveloped and implemented core rules such as the EHS manual and EHS internal audit guidelines. Trialed EHS internal audit·D etermined Group Occupational Health and Safety Policy

Target·G roup-wide coverage of EHS management system: 98%

Progress·E nvironmental performance data collection coverage (based on operation sites or companies): 100%
·H
 Q EHS Department conducted internal audit of EHS managers of all businesses·T he EHS performance data collection and management system installation was completed. A monthly data collection andmanagement has been mandated

Environmental Management
Greenhouse Gas Reduction

FYE2017

Sustainable Water Use
Sustainable Use of Resources

Society
Customers & Supply Chain
Performance
Reporting

FYE2018

Our Approach
In 2016, the LIXIL Group announced its Environmental Vision
2030 medium to long-term targets, and established the LIXILGroup Environmental Sustainability Principles to define ourenvironmental philosophy and code of conduct. By 2030,
we aim to secure an overall net zero balance between theenvironmental footprint of our business and the positiveenvironmental contribution we make through technologicalinnovations and the development of low-carbon, water-saving
products and services.
To achieve our Environmental Vision, it is vital that we
operate an effective environment management system,
and work to reduce environmental impact across our entire
business, from raw materials procurement through productdisposal. In 2016, we started operating under our newly
established EHS Performance Reporting Guidelines to help
strengthen Group-wide target management and monitoring
systems. We are looking to actively reduce environmental
impact across the Group by extending activities currently
implemented in Japan to all global operations.

Environmental Sustainability Principles
With the desire to help people live in harmony with the Earth,
we are committed to continuing our proactive efforts to help
create a sustainable society through every process of creating
a better home.
PDF

LIXIL Group Environmental Sustainability Principles (50KB)

LIXIL Group Corporate Responsibility Report 201845

Environment > Environmental Management

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People

Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Society
Customers & Supply Chain
Performance
Reporting

Promoting EHS
The LIXIL Group has set up the Quality & EHS Division
under CEO’s direct supervision, making group-wide efforts
to develop our EHS management system and promote
our environmental vision. Under employees responsible
for EHS staffed in each business organization, EHS
activities are promoted within the organization and at theconsolidated subsidiaries.
To promote group-wide EHS-related activities, theQuality & EHS Division acts as the secretariat to hold theGroup EHS Committee meeting. The committee covers all
business organizations and head office functions, as wellas the consolidated subsidiaries. In cooperation with the
LIXIL Group Executive Officers Meeting, LIXIL Corporation
Board of Directors, and the CR Committee, the Group EHS
Committee is establishing and expanding the scope of the
EHS management system in the Group, including promotionof environmental strategies and development of effective
management and reporting lines.

External and Internal Audits

Converted Economic Value

The LIXIL Group operates an internal audit system covering
the entire company. Its manufacturing factories conduct
internal audits according to ISO14001 standards andcheck the effectiveness and compliance of environmental
management systems. With regard to non-manufacturing
divisions and Group operating companies, we perform
internal audits based on the standards set in our own
environmental management system and are gradually
expanding the scope to include Group subsidiaries. We
work to ensure the effective operation of our management
system by following up on all audit points and confirming theimplementation of improvements.
From FYE2018, LIXIL’s EHS Management Division
started auditing employees responsible for EHS in all
business organizations. Furthermore, our 13
manufacturing sites in North America (8 sites in UnitedStates of America, 1 site in Canada and 4 sites in
Mexico) additionally implement the plan to acquire ISO

The LIXIL Group has calculated the total economic value ofour products in order to understand the positive and negative
impacts they have on the environment. We estimated theoverall running costs for water, gas, and electricity fromthe use of our toilets, water faucets, and kitchens to be
US$179.2 billion (19.4676 trillion yen) for our end users.
On the other hand, the positive value created from the useof our environmentally designed products, such as insulated
windows, doors, curtain walls, as well as water-saving andenergy efficient toilets, water facets, and kitchens, would
generate savings of approximately $59.7 billion (Approx.
6.4857 trillion yen) for end users. These calculations revealthat the running costs for our mainstream products are nearly
triple the potential savings that can be made by using ourenvironmentally designed products. As products account forover 90% of the Group’s environmental impact within our value
chain, in order to achieve our 2030 Environmental vision,
LIXIL is committed to producing even more environmentally
efficient products. To achieve this, we intend to analyze theenvironmental impacts of our products more thoroughly to
encourage better processes and more effective management.

14001 certification by FYE2020 in order to strengthen thegroup-wide environmental governance.

Environmental Education Initiatives

Group EHS Committee

LIXIL Corporation strives to inform and educate employees atvarious levels of the company about environmental initiatives.
The company conducts environmental training for new
recruits, provides Environmental Management System (EMS)
training for EMS promotion managers and operators in each
office, and distributes monthly reports on environmental
trends to top management, including directors, auditors, andthe CEOs of technology businesses.

LIXIL Group Corporate Responsibility Report 201846

Environment > Greenhouse Gas Reduction

LIXIL Group
Corporate
Responsibility Report 2018

Environment

Greenhouse Gas Reduction

Message

The LIXIL Group is focused on developing products and services that can help realize a low-carbon or decarbonized society, as wellas actively reducing greenhouse gas emissions in its operational processes.

CR Management Structure andMaterial Issues Selection*Our action plans, KPI, targets and performance share common targets for greenhouse gas emission reduction, water resource preservation, and sustainable resource use.

Our Approach
Our People

Action plan

· Pursue more environment-conscious product design and sales expansion strategies, taking into account the entire
lifecycle of both products and services· Improve CO2 emissions/units

KPI(1) Benefits from group-wide CO2 emissions reduction achieved from the products and services(2) Levels of group-wide CO2 emissions all places of business across the Group (Greenhouse Gas Reduction)(3) Distribution-linked CO2 emissions intensity (Greenhouse Gas Reduction)(4) Water Usage efficiency (Sustainable Water Use)(5) Recycling waste materials (Sustainable Use of Resources)

Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Target(1) Create a guideline for calculating the decrease in CO2 emissions to help achieve our mid-term target for FYE2017-21(1.36 times more efficient than in FYE2016), and monitor the FYE2016 result(2) Target -1.6% in FYE2017 compared to FYE2016 to achieve our new mid-term CO2 emissions target for FYE2017-21(-8% v. FYE2016)

Progress(1) Contributions from CO2 emissions reduction achieved from products and services increased by 1.08 times (comparedto FYE2016). Created Guideline for Calculation of Environmental Contribution to clarify calculation method for individual
products and services, and calculated results based on FYE2016 performance(2) CO2 emissions from operational processes increased by 5% (compared to FYE2016). Set targets and initiatives for eachbusiness organization in compliance with mid-term targets. Created Guideline for Calculation of CO2 Emissions from Value
Chain to clarify calculation method for all processes from procurement of raw materials through to product disposal

Society
Customers & Supply Chain

FYE2017

Performance
ReportingTargetFYE2018(1) Group-wide benefits from CO2 emissions reduction achieved from products and services increased by 1.16 times(compared to FYE2016) to achieve our mid-term CO2 emissions target for FYE2017-21(2) Levels of CO2 emissions across all places of business across the Group reduced by 3.2% (compared to FYE2016)
to achieve our mid-term CO2 emissions target for FYE2017-21(3) Reduce distribution-linked CO2 emissions by 2% v. FYE2016 (Greenhouse Gas Reduction)(4) Evaluate water risks at production sites and select focus sites with a view to improving water usage efficiency(Sustainable Water Use)(5) Achieve 95% waste produce recycling rate in Japan and Europe, and 62% in Asia, 22% in North America(Sustainable Use of Resources)

Group-wide levels of CO2 emissions
across all operational processes*(1) includes water resource conservation data (indirect avoided emissions and actual emissions related to water use)

Progress(1) Expand CO2 emissions reduction attributable to Group products and services by 1.17 times v. FYE2016(2) CO2 emissions from all places of business across the Group up 4.8% v. FYE2016 (down 0.9% as a ratio of sales)(3) Logistics-related CO2 emissions intensity up 1.5% v. FYE2016 (Greenhouse Gas Reduction)(4) Completed water-risk evaluation of production sites and determined KPI and targets for high-priority sites(Sustainable Water Use)(5) Waste product recycling rate: Japan & Europe 95%, Asia 63% ,North America 19% (Sustainable Use of Resources)

From FYE2016 level

4.8

% up

(Down 0.9% asa ratio of sales)

LIXIL Group Corporate Responsibility Report 201847

Environment > Greenhouse Gas Reduction

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People

Environment
Environmental Management

Improving Energy Efficiency of Products and Services
The LIXIL Group seeks to achieve a net zero balance between its environmental footprint and positive environmental contribution. A part of that drive involves setting guidelines for calculating CO2
emissions and positive environmental contributions through the use of our products, which will enable LIXIL to quantify the reduction of its environmental footprint through products and services. Goingforward, we intend to strengthen environmental designs that take into account the full product lifecycle, and expand our range of environment-conscious products.
CASE STUDYTOSTEM LW

TOSTEM Replus

INAX Ecoful Shower

Introduced in 2018, TOSTEM LW is a new window product consisting

While the level of thermal insulation of windows in newly built housesof a large glass door that slides open horizontally and boasts a “framemeets Japan’s 2020 energy-saving standards, this is not necessarilyof household CO2 emissions,in design,” which hides the surrounding frame from view from thethe case for existing houses. Introduced in 2017, Replus is a window

so conserving hot water isinside of the house. This window integrates both high thermal insulation

product that makes it possible to replace an existing window to anan effective way to reduce(heat transmission coefficient 1.00W/(m2K)*1) through its aluminum

aluminum-resin hybrid model in as little as 60 minutes using existing

emissions. The impeller built

and resin hybrid frame, which helps reduce CO2 emissions and energy

window frames. This product enables existing houses to improve

into the Ecoful Shower’s

Customers & Supply Chain

consumption for

their thermal

showerhead is designed toheating and air-insulation because

block half the shower holes

Performance

conditioning, with a

it can replace

while turning at high speed.

clear view thanks todouble sliding

By increasing the internal

its “frame in design,”

windows of allpressure, it creates a powerfulwhich is designed toages and models.

shower spray even with

Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Society

Reporting

Heating water constitutes 24%

perfectly fit the lines ofmuch less water. In fact,

the window frame.

the shower can reduce theamount of water used by 48%
compared to the conventional
Replacement image

Frame-in structure

LW

Side of Replus

10L/minute shower, thereby*1 C alculated internally using sliding 16522 triple pane (with krypton gas) within andwithout LowE green (5-10-1.3-11-5) JIS A 2102-1 and JIS A 2102-2.

*Although window-size construction is completed in as little as 60 minutes, terrace-sizeconstruction is completed in as little as 90 minutes.

conserving energy.

WEB

WEB

WEB

About the product (Japanese only, LIXIL)Heat transmission coefficient

1.00 W/(m ・K)
2

About the product (Japanese only, LIXIL)

Window-size construction
Integrates both high thermal
insulation through its aluminumand resin hybrid frame

As little as

60 minutes

Shortenreplacement
time

Ecoful Shower

About the product (Japanese only, LIXIL)Reduction amount rate of water(Compared to the conventional
shower)48%

LIXIL Group Corporate Responsibility Report 2018

Water and energy
saving with lessamount of water48

Environment > Greenhouse Gas Reduction

LIXIL Group
Corporate
Responsibility Report 2018

Shifting All Built-in Lights in Products to LED

Message

CASE STUDYCR Management Structure andMaterial Issues Selection

INAX Thermal Bath S

Our Approach
Our People

The Thermal Bath S is a highly insulated tub with a double thermal
structure, which consists of a thermal tub covering materials and a
special fold-up cover. As a result, the temperature of the water will drop
no more than 2.5°C over a four-hour period. Keeping water hot for longer

Environment
Environmental Managementmeans people don’t need to reheat the bath water as often, helping to
reduce energy consumption and CO2 emissions.

Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Society

The Japanese government’s Basic Energy Plan encourages
the use of Solid State Lighting (SSL)* in all newly shipped
products by 2020. To help achieve this target, LIXIL decided
to change the lighting in all of its manufactured products to
LED.
LIXIL has already changed all lighting that is used on
the exteriors of buildings and houses to LED, and is now
gradually shifting all kitchen and bathroom products to LED
lighting as well. Changing all products to LED lighting will
enable us to reduce CO2 emissions from lighting equipmentby 43%, or approximately 32,000 tons, compared to FYE
2016 levels.
*Solid State Lighting (SSL) = LED, organic electroluminescence (EL), laser, etc.

Customers & Supply Chain
Performance

Promoting the Construction of Net Zero Energy
Housing*
To help reduce household energy consumption, thegovernment has set a target for over half of the new houses
built by 2020 to qualify as net zero energy housing (ZEH).
However, as of FYE2017, that proportion was a mere 4.3%,
and it is clear that ZEH is not becoming more widespread.
In September 2017, LIXIL Corporation and TEPCO Energy
Partner established a joint venture company, LIXIL TEPCO
Smart Partners, tasked with promoting the spread of ZEH.
The company leases solar power generation systems tocustomers who purchase LIXIL’s ZEH materials, and receives
income from selling any surplus energy generated. In return,this effectively reduces the customer’s monthly payment for
their solar power generation systems to zero. LIXIL hopes toencourage the spread of ZEH by reducing high initial costs atthe time of purchase.
Solar power generation system

Reporting

Effective
cost:

Thermal Bath S

Customer

0yen
Income from surplus energy sales

WEB

About the product (Japanese only, LIXIL)*This is an abbreviation for "Net Zero Energy House." The term refers to housing thatsimultaneously offers a comfortable interior environment and a substantial reduction inenergy consumption, thanks to its high degree of insulation and high-efficiency facilities.
Moreover, it produces energy through photovoltaic power generation systems and otherequipment, and the yearly net amount of energy consumption is basically zero or lower asa result.

The temperature of the water will drop no more than 2.5°C over a fourhour period. Temperature change after 4 hours-2.5°C

Energy and CO2
reduction by improving
heat retention

Bisai

A door with LED lightning

WEB

Services for spreading ZEH (Japanese only, LIXIL)

LIXIL Group Corporate Responsibility Report 201849

Environment > Greenhouse Gas Reduction

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Joint Initiatives with Stakeholders
LIXIL’s Second “ECO for All” Project, “THINKHEAT: Let’s THINK about the People & Ecofriendly Temperature.”

the insulation and thermal properties of housing. The original
LIXIL thermometer is also distributed to Group employees inJapan to encourage them to become more aware of indoor
temperatures, and modify behavior accordingly.
WEB

THINK HEAT (Japanese only, LIXIL)Our People

Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Society
Customers & Supply Chain

As part of this project, LIXIL conducted an initiative together
with our customers on the importance of indoor temperature,
which can cause heatstroke or heat shock, and efficientuse of heaters and air-conditioning units, which constituteapproximately 25% of household energy consumption.
At showrooms around the country, we decided to distributeoriginal LIXIL thermometers in the summer of 2018 tocustomers who have asked for quotes on products to improveresidential insulation and thermal efficiency. The gift is designed
to increase awareness and interest in indoor temperatures andPromoting Energy Creation and
SavingEach business within the LIXIL Group sets targets andimplements initiatives in line with our medium-term goals,
which includes creating and saving energy in operational
activities. In FYE2017, we established the Guideline
for Calculation of Value Chain CO2 Emissions and are
currently implementing these guidelines Group-wide. We
are implementing a number of initiatives to reduce energy
consumption in all of our business processes, including
switching to LED lighting in our offices and installing systems
that encourage environmentally efficient use of commercial
vehicles in Japan.

Scope 1 and 2 CO2 Emissions ★

Performance(Thousand t-CO2)

1,500

Reporting

1,146

1,177

1,199

1,000
600

610

618

567

581

500

546
0
FYE2016

FYE2017

FYE2018

Scope 2
Scope 1
Coverage: LIXIL Group total (Partially excluded)
Stylish Shade for blocking the sunlight

Enlightenment poster of thinking the room temperature

LIXIL Group Corporate Responsibility Report 201850

Environment > Greenhouse Gas Reduction

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People

Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Society

Increasing Energy Efficiency

Shifting Factory Lightings to LED

A new environment-conscious building has been constructedat the GROHE Klaeng factory in Thailand. This building
integrates highly efficient equipment within its production
processes, and uses a solar power generation systeminstalled on its roof to reduce factory CO2 emissions byapproximately 700t /year. In addition, despite increasing
production volume by 20% compared to the previous year,
LIXIL’s Ariake factory in Kyushu, Japan, has managed toequalize daytime and nighttime electric power usage byreviewing the material department’s operational framework.
This initiative has successfully reduced the factory’s CO2
emission intensity by 6%.

LIXIL Corporation is actively promoting a shift to LED lighting
at its plants and distribution centers. We set out a plan tocomplete the shift to LED lighting at all Japanese factories
by 2020, and have already completed 80% of our target.
In January 2018, we successfully changed 6,096 lights at
the LIXIL Enokido plant, and reduced CO2 emissions byapproximately 327t/year. We are also gradually encouraging
a shift to LED lighting in international plants as well, withTOSTEM THAI completing the shift in March 2018.

Customers & Supply Chain
Performance
Reporting

GROHE Klaeng Factory

Establishing Solar Power Systems
LIXIL Corporation is contributing to the creation and spreadof renewable energy by operating large-scale solar power
generation facilities in unused spaces and on roofs ofbuildings at seven bases in Japan. The seven bases generate
approximately 32,400 MWh of power per year, equivalent
to the annual energy consumption of approximately 6,500
standard households in Japan.

Energy Savings at Manufacturing Sites
In July 2016, the GROHE Lahr Plant in Germany introduced
a new CHP unit,* replacing two inefficient boilers. The new
CHP unit is providing heat for two electroplating lines andcan supply up to 30% of the plant’s demand for electricity. In
addition to better overall energy efficiency, it also enables theplant to reduce CO2 emissions by 2,500 tons per year.
At the GROHE Hemer Plant, a CHP unit introduced in2015 is reducing 15% of the plant’s electricity consumption
from the use of “recovered heat,” generating a savings of
2,200 tons of CO2 per year.
All GROHE plants and distribution centers around theworld were successfully certified according to ISO 50001
Energy Management Systems by the end of 2016.

GROHE Lahr Plant in Germany

CDP Climate Change
questionnaire
LIXIL has been participating in the CDP questionnaire since2011 and actively disclosing our non-financial information.
PDF

Details about the CDP (External HP)

FYE2018 environmental performance data indicated with ★ havereceived an independent practitioner’s assurance.
CR

Scope and details (P.90)*A power generation system that uses a heat recovery unit to capture waste heat and turn it
into thermal energy

LIXIL Group Corporate Responsibility Report 201851

Environment > Sustainable Water Use

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Environment

Sustainable Water Use
The LIXIL Group promotes the conservation and sustainable use of water across the entire lifecycle of our products, from procurement through disposal.
*Our action plans, KPI, targets and performance share common targets for greenhouse gas emission reduction, water resource preservation, and sustainable resource use.

Enhancing the Water-Saving Features in Products and Services
The LIXIL Group is focusing on water conservation as a core theme for our 2020 Mid-term Targets. This includes enhancing the water-saving features in our products and services.

Our People

Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Society
Customers & Supply Chain
Performance
Reporting

CASE STUDYINAX SATISThe SATIS toilet, with its strong cleaning performanceand its water-saving functionality, is able to save

American Standard Water Saving
Toilets
American Standard offers a wide range of toilets thatup to 60% of water use compared to conventionalsave nearly 20% more water than the national code fortoilets that use 13L of water for each long flush. It

toilet water consumption and meet the strict criteria foris also possible to reduce the amount of water usedwater savings established by the U.S. Environmental

for cleaning the toilet thanks to AQUA CERAMIC,

Protection Agency’s WaterSense program. We havea sanitary ware material that will stay shiny for 100

a variety of products to match consumers’ tastes,

years, and which enables dirt to be easily washedincluding CADET PRO, a quality toilet at an affordable

away with just water.

price, VorMax UHET, an ultra-high efficient toilet,

GROHE SENSE GUARD

INAX Navish hands-free faucets

According to a survey of European households

The Navish hands-free faucets use automatic Eco

conducted by GROHE in 2017, 54% of households

Sensors to detect the presence of hands and otherhave experienced some form of water damage. In

objects, enabling water to be dispensed and stopped

response, GROHE developed the remote-controllable

without touching the faucet. Faucets equipped withGROHE SENSE GUARD. Used together with athe Eco Sensor function also separate hot and cold

smartphone app, it notifies users in the event ofwater, preventing unintended use of hot water anda pipe burst and automatically shuts off the waterenergy. Compared to conventional faucets, users can

supply to minimize damage.

expect to see energy savings of about 52%, and watersavings of about 31%.

and Lyndon, a popular
contemporary-styled toilet.
The bowl height of these
toilets also conforms to
the accessibility height asoutlined by the Americans
with Disability Act of 1990.
SATIS

WEB

AQUA CERAMIC

About the product (Japanese only, LIXIL)Reduction amount rate of water (Compared to theconventional toilets) Maximum

60%

Mixing high washingcapacity and super-saving
water

High efficient toilet, VorMax
UHET

WEB

WEB

About the product (LIXIL)

US government standard

Over

20%

GROHE SENSE GUARD

Water saving

LIXIL Navish hands-free faucets

About the product (LIXIL)

Used together with a smartphone app, it
notifies users in the event of a pipe burst andautomatically shuts off the water supply tominimize damage.

WEB

About the product (Japanese only, LIXIL)Reduction amount rate of water(Compared to the conventional faucets)

Approximately

LIXIL Group Corporate Responsibility Report 2018

31%

Water
saving52

Environment > Sustainable Water Use

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Cooperative Stakeholder
Initiatives
The First “ECO for All”: The My Bottle Promotion
Campaign

Our People

Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Society
Customers & Supply Chain
Performance
Reporting

LIXIL Corporation seeks to contribute to water conservationand environmental protection through the use of water
purification technology and the My Bottle campaign. The
My Bottle promotion campaign, launched in 2017, provides
original bottles to customers who inquire about water filter taps
in our showrooms, encouraging people to join us in conserving
water and protecting the environment. LIXIL’s water filter tap
helps reduce CO2 by using an eco-handle, and has the added
economic benefit of controlling daily running costs. If people fill
the My Bottle with water from the water filter tap in their houseand take it to school or the office, they also can reduce theamount of plastic bottle waste.

My Bottle promotion campaign poster

We have also changed the taps in all Japanese offices anddistributed original bottles to all LIXIL Group employees inJapan so that employees can participate in this activity.
WEB

The My Bottle Promotion Campaign (Japanese only, LIXIL)

Contribution to Communities by Supporting WaterConservation: The Turn Water into Food Program
Since 2012, GROHE has been participating in the “Water
for Life” project, which seeks to reduce water usage throughthe introduction of advanced technology and promotional
campaigns in the Middle East and Africa regions, wherewater is extremely scarce.
Part of the initiative revolves around the Turn Water into
Food program, conducted together with local food banks
since 2015. In this program, GROHE purchases foodpackages to donate to local families requiring support,
equivalent in monetary terms to the amount of money saved
by introducing GROHE water efficient products. To date,
the programs were conducted in Saudi Arabia, Egypt, andTurkey, and also extended to Jordan in 2018. In Jordan,
where schools are among the highest public spaces for water
consumption, water efficient taps were introduced in an allgirls high school. GROHE has already provided food support
to a total of over 2,710 families through the program.

Reducing Water Usage andConserving Water in Business
Activities
To help preserve water resources, the LIXIL Group is
working to further improve the efficient use of water in ourbusiness processes by developing tailored measures for eachproduction base.
The LIXIL Group uses large amounts of water for aluminumproduct surface finishing and other processes. In order
to conserve water, we study the level of water usage perfactory, including water intake, water usage per process,and the installation of water circulation systems. In addition,
we promote efficient use of water by building circulation
systems and engaging in other conservation measures, aswell as conduct strict wastewater management to protect andmaintain water quality.

People who received food by Turn Water into Food program

LIXIL Group Corporate Responsibility Report 201853

Environment > Sustainable Water Use

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People

Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Society
Customers & Supply Chain

Water Usages (Intake) ★

Identifying Water Risk in Our Production Facilities
With global water resources becoming increasingly
scarce, the LIXIL Group identified water supply risks
at production sites in order to better understand local
conditions and introduce appropriate countermeasures.
We used international evaluation tools such as the WWF
Water Risk Filter and the WRI AQUEDUCT to quantify local
characteristics and water usage. We analyzed 71 LIXIL Group
production sites around the world that use water in theirproduction process in FYE2018, and identified six high-risksites. We are currently promoting initiatives designed toalleviate water risks, starting with production facilities thatexhibit the greatest risk.

Introducing Waste Water Recycling Systems(Million m3)

21

14

7

0

17.76
1.65

18.01
2.21

18.05
2.25

4.47

3.78

3.48

5.59

5.31

6.39

6.05

6.71

5.93

FYE2016

FYE2017

FYE2018

Potable waterIndustrial water
Ground waterRiver water
Scope: Data covers a majority of the entire Group*Data excludes the tenants in the building that we cannot assess the water intake data.

Production Sites Categorized by Water Risk Level

Performance

FYE2016 excludes LIXIL Total Service Corporation

9%

6%

8%

Reporting

Total

39%

4%

Water Usages (Discharge) ★

71 sites
34%*A type of filtration membrane that enables water to flow through while blocking impurities
such as ions and other molecules.

(Million m3)

21

Water Risk Survey Results and Water Usage
0%

16.71

16.83

CDP Water questionnaire

3%

Total
39%

17,636,000
m

17%

3

High

7

Total
0

71 sites

FYE2016

FYE2017

FYE2018

Scope: Data covers a majority of the entire Group29%

Water risk
Low

16.79

14

12%

LIXIL Sanitary Fitting Manufacturing (Suzhou) Corporation
is a factory in China affiliated with LIXIL Water Technologythat has made a notable reduction in its water use. In 2015,
the factory installed a wastewater recycling system with an
RO membrane filtration system,* which can filter wastewater
generated in production processes such as machining andplating. The treated water is reused in production and toflush toilets. This new system is currently one of the biggest
contributors to saving water in the factory. For example, water
consumption per unit weight of products was reduced byapproximately 45% in FYE2017 compared to FYE2015 (presystem installation). In FYE2017, fresh water usage and costwere reduced by 36,927m3 and US$15,000, respectively.
Due to its success, similar projects are being rolled out inother LIXIL faucets factories
in Asia. Along with other watersaving projects, we are expecting
to see even more benefits fromreductions in fresh water use
INAX Suzhou Factory, China
and related costs.

*Data excludes the tenants in the building that we cannot assess the water discharge data.
FYE2016 excludes LIXIL Total Service Corporation

The LIXIL Group has been participating in the CDPquestionnaire since 2016 and actively disclosing our nonfinancial information to investors.
WEB

Details about the CDP (External HP)

FYE2018 environmental performance data indicated with ★ havereceived an independent practitioner’s assurance.
CR

Scope and details (P.90)

LIXIL Group Corporate Responsibility Report 201854

Environment > Sustainable Use of Resources

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Environment

Sustainable Use of Resources
The LIXIL Group promotes the sustainable use of raw materials across the entire lifecycle of our products, from procurement through disposal.
*Our action plans, KPI, targets and performance share common targets for greenhouse gas emission reduction, water resource preservation, and sustainable resource use.

Recycling Resources in Products
and Services

Recycling Rates ★

Recycling Resources in
Operational Activities

(%)

100

Our People

Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Society
Customers & Supply Chain

Up to 85% Recycled Raw Materials Used for
Products
In GROHE manufacturing plants of faucet fittings located inGermany, Portugal and Thailand, the alloy refining process inthe melting furnace is self-manufactured. Recycled materials
collected inside and outside of the factories are used for thebrass, which accounts for 70-85% of raw materials used
anually.

Performance
Reporting

The LIXIL Group ensures sustainable use of resources
through initiatives such as recycling waste materials
produced during its operations.
Based on the 3R principles - Reduce, Reuse, Recycle- LIXIL Corporation is committed to reducing industrial
waste products generated from manufacturing processes,
collecting and sorting waste, and recycling. Furthermore,during product development, we promote initiatives to reduceresource use and simplify construction, design products thatcan be easily disassembled for recycling, and reuse of partsand materials.

60

90

94

95

58

62

63

40
20

17

25

19

0
FYE2016

FYE2017

FYE2018

Japan & Europe
Asia
North America
Coverage: Data covers a majority of the entire Group

Reducing Factory Waste Materials

Emissions of Waste and Others ★

Recycling Complex Waste Plastics(Thousand t)

LIXIL Corporation’s Ueno-midori bathtub-manufacturing
factory uses plastic resin for its bathtub press molds,
wrapped in a protective polypropylene film to prevent thevolatilization of organic solvents. The resin and protective
film were previously disposed of as waste due to the difficultyof recycling materials with different material composition.
However, working together with a waste management
processing company, we found a successful way of reusing
the materials from 2016. The pulverized resin and film issorted, cleaned, and pelletized for reuse as resin pallet.
The factory has also worked efficiently to reduce wasteby minimizing defective products, as well as distilling and

500
400
300

423
367
124

200
100
0

140
103
FYE2016

GROHE Klaeng factory, Thailand

80

410
136

141

147

139

140

130

FYE2017

FYE2018

Recycled Outside the Group
Landfill
Sold
Coverage: Data covers a majority of the entire Group

LIXIL Group Corporate Responsibility Report 201855

Environment > Sustainable Use of Resources

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People

Environment
Environmental Management
Greenhouse Gas Reduction
Sustainable Water Use
Sustainable Use of Resources

Society
Customers & Supply Chain
Performance
Reportingreusing previously used solutions such as paint thinner. As aresult, the factory has been able to reduce the total volume
of waste by approximately 13% from 906 tons in FYE2016 to
834 tons in FYE2018.

Reduce Waste Wood Materials from EfficientCutting in China
The factory in Dalian, China, is striving to curb waste by
reducing waste wood materials by introducing more efficientcutting process and repurposing the remaining pieces ofwood material after cutting. The factory has managed toreduce the number of defect products by improving material
cutting processes, and is also reducing the volume of waste
wood materials by making parts from excess materials
created during the production process that were formally soldoff externally. Thanks to these efforts, the factory was able
to reduce the volume of waste wood materials by 1,600 t in
FYE2018 compared to FYE2017.

buried sludge volumes from FYE2016 to FYE2018, and cost
reduction. These initiatives, along with other community
activities such as tree planting and garbage collection,
helped TOSTEM THAI gain Level 4 in the Thailand Ministryof Industry’s GREEN INDUSTRY* commendation system.
We are now working to achieve the goal reducing new sludge
landfills to zero by FYE2019.
*The green industry commendation system operated by the Thai Ministry of Industry has
five achievement levels, and gives a level-specific Green Industry mark to each company
that fulfills the required environmental activities.

Recycling of Sludge in Thailand
TOSTEM THAI Co., Ltd., a LIXIL Corporation subsidiary, hasbeen working to reduce its biggest industrial waste product,sludge. In Thailand, the most common treatment of industrial
waste is to bury it. However, this method has recently been
criticized because hazardous materials have leached into
the soil and groundwater. Concerned with the current
process, we suggested to a local cement manufacturer about
turning the sludge into cement material, a common process
in Japan. The subsidiary worked with the government ofThailand to resolve the challenges by developing a suitable
recycling framework, resulting in an 86% reduction inAward ceremony for green industry promoted by Ministry of Industry of Thailand

FYE2018 environmental performance data indicated with ★ havereceived an independent practitioner’s assurance.
CR

Scope and details (P.90)

LIXIL Group Corporate Responsibility Report 2018

56

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment

Society
Human Rights
Stakeholder Engagement
Community

Customers & Supply Chain
Performance
ReportingSociety
We promote business activities and social contribution activities with upholding
the human rights of all stakeholders in our operations across the entire value chain.

LIXIL Group Corporate Responsibility Report 201857

Society > Human Rights

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People

Society

Human Rights
We aim to sustainably operate as a responsible corporate citizen that respects human rights.

Action plan

Create a LIXIL Group Human Rights Principles and promote awareness amongst all LIXIL Group employees

KPI

Implementation of Human Rights Principles learning across the Group (%)

FYE2017

Environment

Society

FYE2018

Human Rights

Target· 	Ensure full implementation across the Group

Progress· 	In Japan, LIXIL Corporation fully implemented a human rights policy education program in the form of quarterly interactive
departmental meetings

Target· Implementation of training in main LIXIL Corporation overseas subsidiaries: 100%Progress· Implemented training for over 3,700 employees of main LIXIL Corporation overseas subsidiaries (as of June 30, 2018)

Stakeholder Engagement
Community

Customers & Supply Chain
Performance
Reporting

Action plan

Create a framework for human rights due diligence

KPI

Status of creating an execution plan for human rights due diligence

FYE2017

FYE2018

Target· – (To be determind in FYE2018)

Progress· Determined KPI with Human Resources, Compliance, Auditing, and Purchasing Departments, and started surveying actual
conditions

Target· Create an execution plan for human rights due diligence in all Group companies, suppliers, and other business partners

Progress· Created the survey sheet with Human Resources, Compliance, Auditing, and Purchasing Departments, and decided to start
surveying from within Japan

Commitment
The LIXIL Group strives to uphold stakeholders’ humanrights in all of its operations, including end-users, business
partners or other suppliers, residents living near our factories
and facilities, and our employees. In March 2016, wepublished the LIXIL Group Human Rights Principles, whichalign with a number of international guidelines, including
the United Nations Universal Declaration of Human
Rights, the International Labour Organization Declaration
on Fundamental Principles and Rights at Work, and the
UN Guiding Principles on Business and Human Rights.
Furthermore, we will adhere to the higher commitment if
there are any discrepancies between the internationallyrecognized human rights standards and the laws andregulations of individual countries or regions.
Moreover, as a global company, we will strengthen humanrights due diligence processes* and disclose the results.
*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.

Human Rights Principles
LIXIL Group business activities are built on a fundamental
respect for human rights, and all efforts are made to ensure
our human rights principles are embraced across the Group.
PDF

LIXIL Group Human Rights Principles (76KB)

LIXIL Group Corporate Responsibility Report 201858

Society > Human Rights

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment

Society
Human Rights
Stakeholder Engagement
Community

Customers & Supply Chain
Performance
ReportingStrengthening Human Rights Due
Diligence
The LIXIL Group works to develop a deep understanding of
its human rights principles among all employees in Japan.
For example, in FYE2017, we made human rights issues inbusiness a topic of meetings held by individual departments,
outlining our management and general strategy, and got
employees to discuss the topic together.
In FYE2018, we established the Human Rights Due
Diligence Taskforce, comprising managers from corporate
responsibility, personnel, compliance, global auditing, andpurchasing departments. We created human rights due
diligence survey forms for each department and completed
a test run. Going forward, we will conduct official surveys,
starting in Japan.
The LIXIL Group is committed to implementing humanrights due diligence across all its global operations by 2020.
to help define and reduce LIXIL business-related humanrights risks for customers, employees, business partners, andother partners, and to respond swiftly and sincerely to any
human rights violations and ensure improvements are made.
We will also conduct regular reviews of our human rights due
diligence framework, and ensure highly transparent
disclosure of relevant content and processes.

Concern-Raising System
The LIXIL Group operates an internal concern-raising system
for reporting human-rights and other concerns relating to theentire Group, including overseas subsidiaries.
We welcome information from our business partners
such as suppliers and service providers on any potential
compliance violations by the LIXIL Group.
WEB

Concern-raising System (LIXIL)

LIXIL Group Corporate Responsibility Report 201859

Society > Stakeholder Engagement

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

CR Management Structure and Material Issues Selection

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

Target· Plan and execute top-level meeting with external experts· Establish a system to ensure timely communication of the content of the top-level meeting with the Board

Progress· Invited human rights experts for top-level meeting· Held a workshop on human rights, and a discussion at the executive officer level

Our success depends on the support of a broad range ofstakeholders. We are committed to proactively engaging with
our stakeholders (including customers, business partners,
community members where our operational facilities arelocated, shareholders, our employees and their families)
to collect and incorporate their opinions in our business
operations and social contribution activities.

Target· Establish a system to facilitate at least one top-level meeting each year
· Communicate the content of the top-level meeting with the Board· Disclose the content of the top-level meeting

Number of meetings with investors

Progress· Conducted top-level meeting on February 13, 2018, with external experts· Held a SDGs workshop and an executive-director level discussion

Action plan

Hold regular top-level meetings with external experts and disclose the content of these meetings

KPI

Number of top-level meetings held across the Group and meeting quality based on meeting content

Our People
FYE2017

Environment

Society
Human Rights
Stakeholder Engagement

FYE2018

Community

Our Approach

439

Customers & Supply Chain
Performance

Action plan

Hold regular stakeholder engagement meetings and disclose the content of these meetings

Reporting

KPI

Number of stakeholder meetings held across the Group and meeting quality based on meeting content
Target· Extend the reach of currently implemented mechanisms and encourage more sophisticated and effective engagement initiatives· Encourage the sharing and adaptation of successful engagement initiatives across the Group

Progress· Engaged at least once with each stakeholder· Collected and shared information on stakeholder engagement across the Group

Target· Hold at least one annual dialogue with each group of stakeholders (shareholders, employees, business partners, local residents,
end users, suppliers, etc.)· Establish a system for disclosing our engagement activities and resulting outcomes for internal and external audiences

Progress· Held at least one annual dialogue with each group of stakeholders· Created a website to disclose our engagement activities and resulting outcomes for internal and external audiences

FYE2017

FYE2018

Number of stakeholder engagement
meetings

Annual dialogue with each group of stakeholders(shareholders, employees, business partners, local
residents, end users, suppliers, etc)

Hold at least

LIXIL Group Corporate Responsibility Report 2018

160

Society > Stakeholder Engagement

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment

Society
Human Rights
Stakeholder Engagement
Community

Relationship with Stakeholders
At LIXIL, we invited an external expert to speak on the
topic of sustainability for the CR Committee, which consistsof respective officers from each functional division at thehead office as well as representatives from each technology
businesses. In FYE2018, the second top-level meeting
was held on the topic of stakeholder expectations on how
companies can contribute to the Sustainable Development
Goals (SDGs). The experts held a lecture on recent
sustainability trends, followed by an engaging discussion
on how and in what capacity LIXIL could maximize andeffectively contribute today and in the future. The workshop
and discussion will be reflected in our future CR activities.

Customers
CR

Details (P.73)

We incorporate customer opinions as well as

ReportingCR

products and services. We offer customer support

Details (P.30)

via telephone, email, and 135 showrooms globally.

The LIXIL Group boasts approximately 65,000
employees. We strive to create an inspiring
working environment that encourages diversity
and incorporates employee opinion expressed via
systematic global employee satisfaction surveys or
discussions between the union and the company.

SuppliersCR

Details (P.66)

We build and maintain strong relationships
with our suppliers by facilitating two-way
communication. In response to recent Responsible
Procurement Surveys, we share our procurement
policies, recognize current circumstances, andfollow through on promised improvements. We

NPOs,
NGOs and
Universities

We partner with NPOs/NGOs and universities in
the research and development related to global
sanitation, and support environmental education
for next-generation leaders.

also hold regular meetings with suppliers toshare information on regulatory trends and new
corporate purchasing strategies.

Customers & Supply Chain
Performance

Employees

provide timely and appropriate disclosure on our

The LIXIL Group operates 93 factories worldwide.

Local
Communities As a responsible corporate citizen, on top ofCR

Details (P.62)

Engaging in vigorous but transparent dialogue with

Government,
government authorities is a necessary process
Industrial
Association to help shape a sustainable society. As a partof this, we are involved in several associations

whose missions include engaging with government

respecting local culture and customs and creating

on behalf of their respective industry, including

responsible products and jobs, we also contributewindow sash, plumbing, metals, and otherto the development of the surrounding community

industrial and business associations. By being

in which we operate. We hold community

a member of these associations, we are up-

dialogues at factories and sales offices in Japan to

to-date with current and pending changes inencourage communication with local residents.

laws and international agreements that may
affect our industry. (Total political contributions(FYE2015-2017): less than JPY 1 million per year;

We hold 439 discussions this year with investors

Shareholders
and Investors around the world to help promote sustainable
WEB

Details (LIXIL)(FYE2018): less than JPY 1.1 million per year.
Total fees relating to industrial associations andgrowth and enhance corporate value. We disclose

others*: JPY 26.4 million (FYE2015); JPY 29.5

timely and transparent information in English

million (FYE2016); JPY 55 million (FYE2017);

and Japanese via our Annual Report (Integrated

JPY97.6 million (FYE2018).

Report from FYE2016), our Investor Relations web
pages, and the Tokyo Stock Exchange website.

*Total fees from FYE2015 and FYE2017 include ASD Americas
Holding Corp. (American Standard) and GROHE Group S.à
r.l.(Grohe), respectively.

LIXIL Group Corporate Responsibility Report 201861

Society > Community

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment

Society
Human Rights
Stakeholder Engagement
Community

SocietyCommunity
Implementation Framework

Initiative Examples

LIXIL Group focuses on making a positive social impact inpriority areas such as global sanitation and hygiene, water
conservation and environmental sustainability, and diversity
and inclusion, as well as areas where our expertise can makethe biggest difference. The "Endowments and Consulting
Review Committee", which our CEO serves as a memberof, is held on regular basis to screen, assess and prioritize
significant donations and sponsorships to ensure our profits
contribute to society appropriately and effectively.

Social Contribution Expenditures
FYE2016

FYE2017

FYE2018

Charitable
donations130.6 Million

122.8 Million

45.5 Million

Performance

Community
investments

856.8 Million

880.8 Million

658.2 Million

ReportingCommercial
initiatives

600.0 Million

600.6 Million

510.0 Million

Customers & Supply Chain

Scope: LIXIL Group (non-consolidated) and LIXIL Corporation (non-consolidates), and someof the subsidiaries of LIXIL Corporation (GROHE and American Standard)*Monetary and other contributions have been collected and categorized in accordance tothe London Benchmarking Group Guidance Manual (June 2015).

The German-modeled, dual-track training program,providing students with technical knowledge and professional
skills on plumbing as well as IT and English-language skills,
has been underway in Kurla district, Mumbai in India since2009, and has been expanded to New Delhi, as well as
Tondo district, Manila in Philippines. To date, GROHE has
helped over 1,100 young people pass the program, resulting
in a nearly 100% job placement rate on graduation. The
program, which increase the number of skilled plumbersthat can install GROHE’s premium products at the highest
professional standard as well as help develop the broader
industry, will be extended to Nairobi in Kenya in 2018.

Employee volunteer activities in three priority areas

LIXIL Community Day
In 2017, we started LIXIL Community Day, when executives
and employees from all workplaces and regions around theworld take part in social contribution activities during working
hours based on the three priority areas in the LIXIL Group’s
Corporate Responsibility strategy.
In the first year, approximately 3,500 employees from 15
countries took part worked for a total of 8,625 hours in 70
diverse projects, including installing hygienic toilet facilities inschools and homeless shelters, renewing barrier-free street
maps, and offering plumbing training to help conserve local
water resources. The projects had a positive impact on the
lives of over 16,000 people.

Youth Empowerment
Plumbing Skills for a More Secure Future
Underprivileged young people in many emerging countries
often lack the skills to secure stable employment, while atthe same time the local society suffers a chronic shortage ofskilled workers. GROHE addresses this issue through GROHE
Dual Tech, conducted in conjunction with Don Bosco Mondoe.V., a non-profit organization committed to supporting
disadvantaged youth.

GROHE Dual Tech students at the training facility in Mumbai

LIXIL Group Corporate Responsibility Report 201862

Society > Community

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment

Society
Human Rights
Stakeholder Engagement
Community

Natural Disaster Aid and Recovery
Support Disaster Recovery Initiatives in Japan
LIXIL Corporation has supported various recovery efforts
following the March 2011 earthquake and tsunami
in Northeast Japan and the April 2016 earthquake inKumamoto. These activities include donations of basic
daily necessities such as toilets and hand-washing facilities,
monetary donations, sponsoring recovery projects, andemployee-driven charity events. Employees are encouraged
to offer their time and expertise to help local communities
which often proves to be a valuable experience that improves
their engagement level.

Customers & Supply Chain
Performance
ReportingDonated windows and toilets to the “Playground-for-All” in Minamisoma as part of arecovery support projectWEB

Details about the activity (Japanese only, LIXIL)

Providing Safe Sanitation for Communities in Need
SATO products are innovative, life-saving, and low-cost
solutions that provides safe and hygienic sanitation. In
addition to growing the SATO business to reach more people
in Asia and Africa, LIXIL Group have been working with NGOs
to support communities with urgent needs.
We are committed to helping ensure a safe and sanitaryenvironment as part of disaster relief efforts. Inadequate
or damaged facilities and insufficient human resources indisaster areas increase the risk of further deterioration inalready poor sanitary conditions and the spread of disease.
The Caribbean island of Haiti, the poorest nation in thewestern hemisphere, witnessed a further deterioration in
its already lacking 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. With thehelp of NGOs like PWB and Food for the Poor, American
Standard donated 7,900 SATO products to towns and villages
in Haiti. SATO products were also delivered to survivors ofthe 2015 devastating earthquakes in Nepal with the help ofWaterAid.
Through private and public partners, we are also helping
rural communities with difficulties accessing adequate
sanitation. In 2016, few thousand SATO products weredelivered to Bangladesh with the help of BRAC, aninternational NGO. We will continue to work alongside
International NGOs such as WaterAid and Habitat for
Humanity, to help ensure a safe and sanitary environment forcommunities in need.

Through the "Toilets for All" initiative, we donate one SATO
toilet to developing countries in Asia and Africa for every
LIXIL integrated shower toilet sold.
WEB

Details about SATO products (LIXIL)

WEB

Toilets for All (Japanese only, LIXIL)

Teaching plumbing skills and how to improve hygiene to students in Haiti

LIXIL Group Corporate Responsibility Report 201863

Society > Community

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment

Society
Human Rights
Stakeholder Engagement
Community

Customers & Supply Chain
Performance
ReportingLocal Community Engagement
Holding Community Dialogues in Factories, Sales
and Retail Bases
LIXIL Corporation regularly holds community dialogues
with local stakeholders (such as local government officials,
business owners, residents etc) on how we can contributeback to the community. These are held at factories, sales andretail bases around Japan. In FYE2018, LIXIL Corporation
held community dialogues at 11 locations in Japan, attracting
over 90 participants. Over the past six years, we have held
over 110 community dialogues in total.
We cultivate meaningful relations with local residents andauthorities by implementing initiatives based on conversations
held during community dialogues, and ensure consistentcommunication and follow up after the initial dialogue. For
example, our Handa Factory in Aichi Prefecture started
to help local day-care centers with emergency evacuation
procedures after a Principal voiced concern that the
predominately female staff might not be physically capableof evacuating all the children safely on their own. The same
factory is also participating in a range of community-inspired
activities, including road accident prevention initiatives,
acceptinginternships,
factory visits frommunicipalities, andproviding classes
on product safety.

Community dialogue with the Kitami Sales Office of
Dohoku Sales Branch, Hokkaido Branch Office

WEB Details about the activity (Japanese only, LIXIL)

Public Toilet Cleaning Activities Foster a Spirit of“Omotenashi” in Chugoku and Shikoku Regions

public toilet cleaning initiative. The action was born in 2014
out of a desire to display a welcoming spirit to tourists visiting
Japan by providing spotlessly clean public toilets. In 2017, aband of 1,134 employees cleaned toilets in 96 visitor spots
across the region’s 24 well-known tourist areas.
This initiative has been certified by the Tokyo 2020 Official
Program (urban
development) for
fostering a spirit
for public service
through cleaning
activities, all in thename of creating auniversal society.

LIXIL Corporation employees work together with local
communities in Japan’s Chugoku and Shikoku regions on a

Collaboration with a Wide Range of Partner
Organizations
UNICEF

Working together to promote safe sanitaryfacilities in Africa.

Japan International
Cooperation Agency(JICA)

Promoting field trials of the no-water Green
Toilet System and water-saving Micro FlushToilet System in Kenya.

WaterAid

Cooperating to improve the lives of people
living in areas without hygienic toilets, inaddition to collaborating on a white paper thatanalyzes the socioeconomic losses associatedwith underdeveloped sanitary environments.

Toilet Board Coalition

Helping develop sustainable, large-scalepotential sanitation solutions as a founding
member of the multi-industry group.

NIJIIRO DIVERSITY

Conducting awareness surveys with the nonprofit organization to identify the issues LGBTand other sexual minorities encounter whenusing public toilets, with the aim of providing a
comfortable toilet space for all.

WEB

Partnership with UNICEF (LIXIL)

PDFSpecial Report: The True Cost of Poor Sanitation (10.2MB)

WEB

Toilet Board Coalition (External HP)

WEB

Activities with NIJIIRO DIVERSITY (Japanese only, LIXIL)

Cleaning of the toilet

Environmental, Cultural and Social Activities

Forest preservation
activities

Encouraging our employees and their families
to participate in voluntary activities toprotect forest and mountain environments
in cooperation with government, NPOs andforestry cooperatives.

Cultural activities

Promoting cultural activities in areas related
to our history, such as ceramic and textile
museums, gallery management and publishing.

Water, environment,
and universal design
educational activities

Offering educational classes at primaryschools on the global sanitation challenge,
environmental and universal design.

WEB

Forest preservation activities (Japanese only, LIXIL)

WEB

Educational activities (Japanese only, LIXIL)WEB

Cultural activities (LIXIL)WEB

Other Japan-based activities (Japanese only, LIXIL)

LIXIL Group Corporate Responsibility Report 2018

64

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society

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

Performance
ReportingCustomers & Supply Chain
We are committed to delivering customer-focused products and services andpromoting responsible supply chain management.

LIXIL Group Corporate Responsibility Report 201865

Customers & Supply Chain > Responsible Supply Chain Management

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Customers & Supply Chain

Responsible Supply Chain Management
The LIXIL Group seeks to ensure stable product supply and fulfill stakeholder accountability by identifying and addressing risks at
the procurement stage, and managing our processes across our supply chain.
Action plan

Extend our Japanese CR procurement process across the Group

KPI

Responsible procurement surveys coverage ratio (based on purchased amount) (%), and percentage of suppliers which
satisfy CR management standards (%) and improvement rate (%)

Our Approach
Our People
Environment
Society

Product Safety & Quality·P romote Group-wide awareness of the LIXIL Group’s procurement strategy· Implement existing CR procurement process across the Group

Progress·A chieved responsible procurement surveys coverage ratio of 85% in Japan and 80% outside of Japan*, CR management
standards conformity rate of 94% in Japan and 88% outside of Japan

Target· Achieve responsible procurement surveys coverage ratio of 90% in Japan and 90% outside of Japan· Achieve 90% conformity rate in Japan and 80% outside of Japan, and 100% improvement rate

Progress·C overage of supplier CR survey rates are 90％ in Japan and 90% outside of Japan· Conformity rate are 95％ in Japan and 85% outside of JapanFYE2017

Customers & Supply Chain
Responsible Supply Chain Management

TargetFYE2018

Customer Satisfaction

Performance*Excluding GROHE Group S.a.r.l., American Standard Brands and PERMASTEELISA GROUP during FYE 2015-2018

ReportingResponsible procurement surveys
coverage ratio(based on purchased amount)
Japan

90

％

Overseas90％

Responsible procurement surveys
conformity rate

Japan

95

％

Overseas

85％

LIXIL Group Corporate Responsibility Report 201866

Customers & Supply Chain > Responsible Supply Chain Management

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society

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

Procurement Policy
The LIXIL Group has established a Procurement Policy todevelop healthy business partnerships with counterparts
worldwide. This policy forms the basis of our overall supply
chain management. In FYE2018, the Group developed a
Procurement Compliance Policy to provide more detailed
guidance for the whole Group. We also compiled our Supplier
Code of Conduct and are working to ensure business
partners fully understand all the items they are required toadhere to.
Fair and
impartial
trade
practices

We will provide suppliers with equal and open
opportunities, and solicit suppliers broadly.
When selecting suppliers, we will evaluate themfairly and impartially, paying due consideration to
CR aspects such as environmental management,
human rights, and workplace safety, in addition
to quality, cost, and delivery.

Adherence tosocial norms

We will observe laws, regulations, and rules
related to procurement activities, and act in a
way that gains the trust of society.

Respect
for humanrights andconsideration
for working
environment

We respect internationally declared standards ofhuman rights, and pay due attention on ensuring
an appropriate working environment.

Care for theenvironment

We will preferentially procure raw materials thathave low environmental impact.

Promotionof mutualprosperity
with oursuppliers

We will conduct transactions in a way that
promotes mutual growth as partners.

Performance
Reporting

PDF

Promoting Responsible
Procurement that Upholds theEnvironment and Labor Safety

Procurement Transaction Amount Breakdown byCountry
2.2%

0.5%

2.2%

2.1%

5.3%

The LIXIL Group promotes responsible procurement. The
Supplier Assessment Standards used to select business
partners includes: quality, cost, and delivery (QCD) criteria
and technical capabilities as well as the ability to deliver
stable supply, sustainable use of resources, proper control
of chemical substances, compliance to human rights, andpromotion of labor safety. The supplier assessment criteria
are applied in both the selection of new partners and theregular inspection of existing partners. Having selected abusiness partner, we also conduct assessments of procured
products. We seek to strengthen responsible procurement
across our network of international business partners, which
has been extended by mergers and acquisitions.

Japan

87.7%

China
Austria
Thailand
Malaysia
other countries[Scope of application] Suppliers to LIXIL Corporation and its subsidiaries*Excluding GROHE Group S.a r.l., American Standard Brands, PERMASTEELISA GROUP

Flowchart for Important Suppliers Identification
Primary supplier

Working with Our Suppliers
Supplier Breakdown

Providing critical component/
product
YES

In terms of procurement transaction amounts, nearly 90% of
LIXIL Corporation suppliers are based in Japan, followed by
China, Austria, and Thailand. We determine our important
suppliers using the criteria in the flowchart below, prioritizingthem when we distribute our procurement strategies,
conduct surveys, and follow up on improvements.

Difficult to substitute
YES
Large-scale supplier(Monetary terms)

NO

YES

Meets criteria set in our
Supplier Policy
YES

Important SupplierSupplier Code of Conduct (156KB)

LIXIL Group Corporate Responsibility Report 201867

Customers & Supply Chain > Responsible Supply Chain Management

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society

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

Performance
ReportingResponsible Procurement Surveys
and Follow-up Action
LIXIL Corporation actively shares our Procurement Policy
and Supplier Code of Conduct to help steer our expanding
and increasingly complex supply chain network following
the five-company merger in 2011 and subsequent series ofinternational mergers and acquisitions.
We use responsible procurement surveys to gain a strong
understanding of business partners’ responses on 66
different survey items (46 for Japan, where low-risk items
have been removed).
In FYE2018, we visited over 100 suppliers inside andoutside Japan that performed poorly in our survey to set
targets for improvement and provide necessary support.
We attained our conformity targets of the current fiscal yearof 90% in Japan and 85% internationally on procurement
assessment items. The survey results serve as a valuable
evaluation tool deciding whether or not to continue dealings
with existing suppliers.

Management of Chemical
Substances
LIXIL Corporation has set rules on chemical substances thatare forbidden or require strict control for use in products and/or during production processes.
LIXIL’s list of controlled substances can be downloaded
from the link below:
PDF

Survey Sheets

Responsible Procurement Survey
OverseasJapan

1. CR operations

10

6

2. Fair business

88

3. Human rights

76

4. Labor

13

9

5. Health & safety

97

6.	Environmental
conservation of theplanet14

8

7. Regional contribution

5

2

Total

66

46

PDF

To suppliers overseas (118KB)

PDF

To suppliers in Japan (100KB)

Survey Results
FYE2016
Activities
Distribute Procurement Policy;
follow up survey results andrelated activities

Targets

KPI
Coverage ratio (based onpurchased amount)

FYE2017

Results

Targets

FYE2018

Results

Targets

FYE2019

Results

Targets

Japan

80%

82%

80%

85%

90%

90%

90%

Overseas*

60%

81%

60%

80%

90%

90%

90%

Japan

85%

94%

90%

94%

90%

95%

90%

Overseas*

85%

85%

90%

88%

80%

85%

80%

Japan

100%

97%

100%

100%

100%

91%

100%

Total conformity rate
Improvement rate

(Scope of application) Suppliers to LIXIL Corporation and its subsidiaries*Excluding GROHE Group S.a r.l., American Standard Brands, PERMASTEELISA GROUP
Japan: Procurement by operating sites in Japan
Overseas: Procurement by operating sites overseas

List of the Environment-Related Substances to be controlled by
LIXIL Corporation (updated on 15th of March, 2018) (418KB)

LIXIL Group Corporate Responsibility Report 2018

68

Customers & Supply Chain > Product Safety & Quality

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Customers & Supply Chain

Product Safety & Quality
The LIXIL Group is committed to maintaining and strengthening ties with our customers by ensuring superior quality in
manufacturing and services, and consistently improving our product quality management system to eradicate serious productrelated accidents.

Our Approach

Action plan

Make continuous improvements to the product quality management system

Our People

KPI

Number of serious product accidents across the Group

Environment
Society

Target· Zero cases of serious product accidents across the Group· Extend product safety strategy by setting specific KPI for each technology business

Progress· Four serious product accidents across the Group. Held a product accident conference to share details of the experience andconfirm countermeasures

Target· Number of serious product accidents across the Group: 0 cases

Progress· Critical product-related accident: 3 (single gas stove: 2, stove top ventilation cover: 1)· Critical product-related accidents were reported in product-related crisis management meetings, and potential corrective actions
were discussed· Information on critical product-related accidents were filed in the database and reviewed to determine if any corrective actions
were necessary. Product corrections and the awareness-raising on product-related precautions were carried out as necessary

FYE2017

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

FYE2018

Customer Satisfaction

Performance

Our Approach
The LIXIL Group firmly believes that product quality is the
key to earning the trust of customers and society, and asource of corporate profitability. To ensure that this belief isshared among all employees, we have published the LIXILGroup Quality Policy in 14 languages and are continuously
pursuing excellence in product manufacturing and services
around the world.
Significant product-related problems make customers
anxious and adversely affect our reputation for reliability.
That is why we pursue product quality management
initiatives such as confirming legislative compliance based on
the LIXIL Product Safety Principles.
Going forward, we intend to make consistent improvements
to our product quality management system, and work toensure consumers know how to use products safely.

Reporting
Action plan

Increase awareness of how to safely use our products

KPI

Rate of disclosed instruction manuals for main products on websites across the Group (%)

FYE2017

FYE2018

Target· Disclose instruction manuals online for all main products in Japan

Progress· Disclosed instruction manuals online for all main products in Japan· Plan to disclose instruction manuals for Group company main products in FYE2017

Target· Disclose instruction manuals online for all main products across the Group

Progress· 100% of user manuals for the LIXIL Group’s main products were published on the companies’ official websites· Publicly registered new main products as they went on sale

LIXIL Group Quality Policy· LIXIL strives for high quality in all processes, pursuingcustomer satisfaction and contributing to improving people’s
comfort and lifestyles.
· We generate the world’s highest quality, listening to ourcustomers and striving for excellence through KAIZEN
activities, specifically going and seeing for ourselves andthoroughly understanding the situation.
· We develop a management system that continuously
improves the quality of our employees, products, andprocesses, and aim for business growth.

PDF

LIXIL Product Safety Principles (40KB)

LIXIL Group Corporate Responsibility Report 201869

Customers & Supply Chain > Product Safety & Quality

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society

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

Performance
ReportingManagement Structure
LIXIL Corporation has established quality and EHS
headquarters under the direct control of the company
president, and we are continuously working to develop astrong company-wide product quality management system
to resolve quality issues. We have also 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) ineach company, who oversees product quality department efforts
to guarantee superior-quality products and services and resolve
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 ona quarterly basis for the LIXIL Group quality management
conference, and conduct regular management reviews.

Design & Development

Commercialization & Production & Sales

In addition to introducing Fault Tree Analysis (FTA) and
Failure Mode and Effect Analysis (FMEA) as a means ofassessing in the development stage, we also comply fully withall laws and regulations.
To help improve our ability to pinpoint and actively
incorporate customer opinion, we are conducting a full
review of our original Design Review Based on Failure
Mode (DRBFM), and working to strengthen implementation
frameworks, on-the-ground procedures, and assessor andfacilitator skills. We are also working to develop frameworks
to ensure accurate recognition and compliance with
global legislation and regulations as we continue to pursue
collaborative development projects around the world.

We only commercialize products that have undergone andpassed vigorous stress tests and quality checks for durability,
weather resistance, etc. Products that require specific safety
and quality labeling are clearly marked in our catalogues andother sales materials as meeting those criteria. We also strive
to ensure customers select appropriate products by providing
better, readily understandable product explanations, including
experience-based showroom displays and online videos, while
responding to queries through a new customer service route.

Material & Parts Procurement
We set quality-related standards to which our business
partners must adhere. If necessary, we will design joint
activity themes to help resolve quality-related issues.

Enhancing Quality across Entire
Product Lifecycle
To ensure customer safety, LIXIL Corporation is focusedon enhancing quality across the full lifecycle of all
products, from development through design, procurement,
manufacture, distribution, and after-sales support.

Design & Development

Material & Parts Procurement

In our development activities, wereflect the views of customers in
products. In addition, with utilizationof the Stage Gate System, we also
make examinations on LIXIL safety
standards, inclusive of laws andindustrial standards.

We require our suppliers to fulfill
a certain set of criteria, andcooperate with them to resolve
and improve on any issues.

Responding to Product Defects & Issues
We have a system in place for incorporating customer
opinions and experiences with regard to product-related
accidents and defects. We thoroughly investigate the cause ofany problem via the system, and implement improvements,
not only in product design, but across all processes frommanufacturing through to retail distribution. We also employ
a variety of methods to help prevent product defects andproblems, from pursuing organizational management
to ensure improvements are fully integrated, through todeveloping better governance frameworks for confirming
management is firmly implemented.
Commercialization,
Production, Sales

Responding to ProductDefects & Issues

We only commercialize productsthat have gone through andpassed vigorous stress tests andquality checks for durability,
weather resistance, etc. Productsthat require specific safety andquality labelling are clearlymarked in our catalogues andother sales materials as meeting
those criteria.

We have a system to incorporate
customer opinions andexperiences with regard to
product-related accidents
and defects, and thoroughly
investigate the root cause for
future improvements.

LIXIL Group Corporate Responsibility Report 201870

Customers & Supply Chain > Product Safety & Quality

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society

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

Performance
ReportingStage Gate System
In its product development, LIXIL Group categorizes the various
processes from research and development to commercializationand merchandising into ‘Stage’ and sets up ‘Gate’ between
transitions to subsequent stages, with high importance placedon evaluation reviews and management decisions. To raise thelevel of completion in design, quality, and production at eachstage, the Development, Production, and Sales Divisions
collaborate with each other on these matters while carrying themout as specific projects. The criteria for evaluation are also reexamined on an ongoing basis, to promote the development ofeven higher-quality products.

Responding to Serious Productrelated Accidents

GATE 1GATE 2GATE 3GATE 4GATE 5

Project start
approval

Business plan
approval

Final business plan
approval

Market launch & mass
production approval

Review

Customer opinion

Safety design

Safety checks

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

Number of Legal
Infringements andSignificant Product-related
Accidents

FYE 2016

FYE 2017

FYE 2018

Number of legal infringements

0

0

1

Number of significant productrelated accidents

2

4

3

Emergency Procedure for Responding to Accidents
Accident occurs

Customer
InformRespond

Division receiving the initial information
Reportwithin24 hours

LIXIL

Report major accidents
within 10 days

At LIXIL Corporation in Japan, whenever a product-related accident
occurs, information is gathered in the Quality & Six Sigma Division
within 24 hours from the receipt of notification, and an emergency
notice is sent out to relevant departments. The division in charge ofcustomer services reports such high-risk product-related accidents
directly to senior management to ensure a swift response.
The division also coordinates with other departments to implement
on-site response and investigation of an accident. A report is
submitted to the relevant authorities within 10 days as stipulated by
the government’s reporting and disclosure procedures on productaccidents under the Consumer Product Safety Act. To prevent areoccurrence, we reflect lessons learned from accidents in design
schematics, and proactively improve preventative safety technology.
Regarding suspected illegal occurrences, the technology or otherrelevant departments will ascertain if an infringement has occurred,and submit a report to the competent authorities. We follow a similar
process for suspected legal infringements as for product-related
accidents; namely, we conduct a thorough investigation of the cause
and decide appropriate countermeasures to prevent a reoccurrence.

Concept of Stage Gate System

Cooperate

Relevant divisions

Quality & Six Sigma Division
Personnel handling initial information
Serious Product Accident Committee
Regulatory reporting personnel
ReportAuthorities

Customer Services Division
Initial guidanceFirst report

Consumer Affairs Agency

InformInvestigate & compile an
Requestmeeting

effective response

RequestreportReportNational Institute of Technology & Evaluation(NITE)

LIXIL Group Corporate Responsibility Report 201871

Customers & Supply Chain > Product Safety & Quality

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment

Product Safety Education
LIXIL Corporation provides product quality education througha training framework tailored toward individual job types andlevels. In FYE2018, LIXIL Corporation conducted productsafety training for new technical-stream employees, andconducted training sessions for different job types on Japan’s
Electrical Appliance and Material Safety Act for approximately
200 employees.

Society

Customers & Supply Chain

Nurturing a Culture that Strives for Superior Quality
Product Manufacturing

Responsible Supply Chain Management
Product Safety & Quality
Customer Satisfaction

Performance
Reporting

LIXIL Group organizes LIXIL Quality Month each year in
November as part of its product safety promotion activities.
During the 2017 Quality Month, we conducted various activities
including clarifying product-quality management issues atindividual departments, study sessions to explore how toanalyze problems, and sharing examples of product quality
risk. Approximately 700 employees attended the group-wide
Product Quality Forum that took place in Quality Month, and inwhich we shared the best improvement activities from aroundthe world.

Conveying How to Use Products Safely
The LIXIL Group publishes product-specific instructions on
the website to ensure safe product use, along with videos
illustrating how to care for and clean products to ensure
appropriate use.
WEB

Product & installation manuals (Japanese only, LIXIL)WEB“How to” videos (Japanese only, LIXIL)

External Activities & Evaluations

FYE2018, the seminars were conducted in six different halls
to approximately 1,500 participants.

Safety Education Program“Thinking about Safety in the Home”
As part of its product safety-related activities, LIXIL
Corporation has developed a safety training program with
the not-for-profit Association of Corporation and Education(ACE) for 5th and 6th year elementary students, provided
free to school teachers and educators. In FYE2018, LIXIL
employees also used this program to give 34 lessons in 12
schools to approximately 1,000 children. The program also
won the Outstanding Performance Award at the Instructional
Materials for Consumer Education awards 2014 conductedby the National Institute on Consumer Education (NICE).
Lesson scene by an employee

FYE2018
Number of participants in safety education program

Approximately
Number of participated schools

WEB

1,000 students
12 schools

Details about the activitｙ (Japanese only, LIXIL)In addition, LIXIL also cooperates with Japan’s Ministryof Economy, Trade and Industry (METI) and the National
Federation of Regional Women’s Organizations to provide
a nationwide seminar program on product safety under
the theme: “Thinking about safety in the home.” Theseseminars provide an opportunity for children to think about
latent dangers in the home and how to prevent accidents. In

The 8th Product Safety Measures Excellent
Company Award System (2014)
After winning the Director-General for Commerce andDistribution Policy Award in 2010, LIXIL Corporation received
its second recognition from Japan’s Ministry of Economy,
Trade and Industry (METI) in 2014: the Excellence Awardin the large manufacturer and importer category for the
8th Best Contributors to Product Safety Awards program.
METI commended the company for its ground-breaking
10-year guarantee services and its commitment to studying
problematic products to improve functionality.

LIXIL Group Corporate Responsibility Report 201872

Customers & Supply Chain > Customer Satisfaction

LIXIL Group
Corporate
Responsibility Report 2018

Message

Customers & Supply Chain

Customer Satisfaction
The LIXIL Group is constantly enhancing its products and services across the Group to ensure continued and improved customer
satisfaction.

CR Management Structure andMaterial Issues Selection
Our Approach

Action plan

Monitor customer satisfaction levels and re-evaluate collected data to help improve satisfaction levels

Our People

KPI

Customer satisfaction survey towards all Group products and services (%)

Environment
Society

FYE2017

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

FYE2018

Target·E stablish a mechanism for measuring and disclosing customer satisfaction, and implement it across the Group

Progress·C onducted customer satisfaction surveys on product quality and customer support. Expanded scope of responses from callcenters only to: 1) product quality, 2) showrooms, 3) call centers, 4) after-sales maintenance, and 5) sales representatives
Result of customer satisfaction survey: 71.9%

Target·C ontinue initiative to improve customer satisfaction across the Group

Progress·C ontinued to use scope of responses expanded in FYE2017. Result of customer satisfaction survey: 70.5%

Customer Satisfaction

Performance

Our Approach

Reporting

Average customer satisfaction rate:

Comprehensive evaluation of five categories

70.5

％

To ensure that our customers enjoy all aspects of their living
spaces, the LIXIL Group focuses on developing products andservices that satisfy both construction-related commercial
customers and end consumers, while communicating withthem effectively. We work continuously to improve products
and services based on customer feedback and needs.

Implementing the Six Sigma
Quality Management Method
LIXIL Corporation considers customer satisfaction asignificant element of its business activities, listening
attentively to the voices of our customers (VOC), andchanneling those opinions into creating better products andservices. We have introduced and subsequently developed
the Six Sigma system to ensure this framework and culture
takes root.
The Six Sigma system involves listening to customer
opinions and pinpointing issues for improvement. Then,instead of making judgements based on instinct andexperience, we focus on facts derived from numericalanalysis to help control any variation in our work andservices, ultimately helping to lead to quality improvements.
One of the quality-improvement initiatives involves creating across-functional team in each Group company and division,and implementing projects to improve issues.

Reflect Commercial Customer
Opinions in Improving Our
Products and Services
LIXIL Corporation conducts satisfaction surveys of its
commercial customers. In FYE2018, we achieved anaverage of 70.5% in terms of the quality of our products andcustomer support, including showrooms, call centers, aftersales maintenance, and sales representatives.
In FYE2016, LIXIL Water Technology launched a productand brand evaluation survey targeted at global customers.

LIXIL Group Corporate Responsibility Report 201873

Customers & Supply Chain > Customer Satisfaction

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Going forward, we plan to extend the framework for measuring
and disclosing customer satisfaction to all Group companies,
and to set regional targets regarding customer satisfaction.

Professional User Satisfaction of Products andSupport Services

Our Approach
Our People(%)
90

Environment

80

Society

Customers & Supply Chain
Responsible Supply Chain Management

Customer Inquiries(%)(Thousand)

500

100

400

80

300

60

200

40

100

20

0

0
FYE201670

Accept callInquiries (monthly average)60

FYE2017

FYE2018

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

50

Product Safety & Quality

FYE2016

Customer Satisfaction

FYE2017

Satisfaction level of product quality

Performance

ショールームサポートの満足度

Showrooms satisfaction level of support services

営業担当者サポートの満足度

Sales people satisfaction level of support services

Reporting

アフターメンテナンスサポートの満足度

Maintenance satisfaction level of support services

コールセンターサポートの満足度

Customer call centers satisfaction level of support services

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

End user

We also collect approximately 300,000 comments from
customers each month through our customer service center,
repair center, and product information support center. Thisdata is stored in our database and shared with relevant
departments to encourage improvement measures, andultimately boost the quality of our products and services. For
example, we heeded customer opinion by improving the way
product explanations are displayed in our catalogues, andmade it possible to exchange individual parts for new ones.
Our customer service center conducts surveys on service
quality twice a year. We use the results to improve ourcommunications and enhance customer satisfaction.

We hold practical construction-related training workshops forcommercial customers on sashes, doors, exteriors, kitchens, andbathrooms with the aim of improving end consumer satisfaction.
We also conduct regular training for employees to improvetheir level of knowledge about our overall work and products
so that they can resolve any problems customers face.
Furthermore, we seek to boost motivation by offering rewards
for excellent customer service skills.
Product training

FYE2018

商品品質の満足度

Training: How to Improve
Customer Satisfaction

Customer
Service Center
100,000
inquiries per
month

Analysis(visualization)

VOC*
database

CS improvement
activities (making
effective use ofcustomers’
opinions)

A state of product knowledge
training using toilets

Products

Construction training

Contractor

OutletWindow sash installation training

Repair Center
150,000
inquiries per
month
General Product
Information
Support Center
40,000 inquiries
per month

Service
290,000 cases
per monthAward system

Showrooms

Improvement activities

An award recipient of the contest
regularly being conducted*VOC: Voice of Customer

WEB

Examples of service improvement through the VOC(Japanese only, LIXIL)

LIXIL Group Corporate Responsibility Report 2018

74

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain

Performance
Human Resource Performance
Environmental Performance

Reporting

Performance
We disclose the data on the number and composition of employees,
raw materials and energy used, CO2 and air pollutants.

LIXIL Group Corporate Responsibility Report 201875

Performance > Human Resource Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain

Performance
Human Resource Performance
Environmental Performance

Performance

Human Resource Performance
In 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:
1. Number of Employees by Type of Employment
2. Number of Employees by Country
3. Number of New Hires
4. Number of Retirees and Turnover Rate
FYE2018 Human Resource Performance Data indicated with★ have received the independent practitioner’s assurance.
Data for FYE2017 was revised based on the scope change.
See the Coverage on page 90.

Reporting

LIXIL Group Corporate Responsibility Report 201876

Performance > Human Resource Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

1. Number of Employees by Type of Employment ★

Our Approach

Thailand

7,837

China

5,122

Female

5,829

8.3%

Mexico

4,534

Total

23,954

34.1%

Vietnam

5,018

Non-

Male

3,311

4.7%

Germany

2,904permanent

Female

8,187

11.6%

USA

1,424

staff*2

Total

11,498

16.4%

South Africa

1,462

Male total

21,436

30.5%

Italy

65

Female total

14,016

19.9%

Portugal

672

Directly employed total

35,452

50.4%

Indonesia

650

3,405

4.8%

Hong Kong

41

38,857

55.3%

India

354

22,49532.0%

Netherland

63

8,957

12.7%

Singapore

100

Outside Japan total

31,452

44.7%

Other European region

514

LIXIL Group Grand total

70,309100.0%

Other Middle Eastern & African region

61

Other Asian region

281

Other American region

350

staff*1Japan

employed

Environmental Performance

ReportingIndirectly employed*

3Japan total
OutsideJapan

Directly

35,45225.8%

Society

Human Resource PerformanceJapan

18,125

Permanent

Directly

Ratio (%)

Male

Environment

Customers & Supply Chain

Number of employees(Persons)

Country

Number of employees(Persons)

Our People

Performance

2. Number of Employees by Country ★

LIXIL Group Human Resource Performance Data

Male total

employed Female total*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%.

Total

66,904*Directly employed, 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 201877

Performance > Human Resource Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message

3. Number of New Hires ★

CR Management Structure andMaterial Issues Selection

FYE2016

FYE2017

LIXIL
Corp.

Our Approach
Our People

Scope of Data Collection(Persons)

FYE2018

LIXIL
Corp.

LIXIL
Corp.

Environment

Permanent
staff

898

472

638

261

879

349

Society(new
graduates)

(517)

(323)

(329)

(155)

(374)

(245)

Nonpermanent
staff

561

360

1,911

286

1,887

385

Total

1,459

832

2,549

547

2,766

734

Customers & Supply Chain

Performance
Human Resource Performance
Environmental Performance

Reporting*Directly hired employees in Japan only

The LIXIL Group human resource performance data covers: LIXIL Group Corporation, its
four operating companies,*1 LIXIL Corporation’s 71 major consolidated subsidiaries (34companies in Japan*2 and 37 companies outside Japan),*3 LIXIL Living Solution Corporation’s
10 subsidiaries,*4 LIXIL Group Finance Corporation’s one subsidiaries,*5 and the number ofcompanies covered is 82 in total. Moreover, due to decision to sell Permasteelisa S.p.A., aconsolidated subsidiary in August 2017, businesses of the company and its subsidiaries areclassified as discontinued operations and excluded from the scope of data. While the majorityof LIXIL Group Corporation’s major consolidated subsidiaries as of March 31, 2018 are covered,please note that the scope of human resource performance data differs from the scope ofsubsidiaries for the consolidated financial report.
*LIXIL VIVA CORPORATION is excluded from the scope of Occupational Health and Safety.

Operating Companies of LIXIL Group Corporation*1
LIXIL Corporation, LIXIL VIVA CORPORATION, LIXIL Group Finance Corporation and LIXIL Living
Solution Corporation

4. Number of Retirees and Turnover Rate ★

Major Consolidated Subsidiaries of LIXIL Corporation
FYE2016

FYE2017

LIXIL
Corp.

FYE2018

LIXIL
Corp.

(Persons)

LIXIL
Corp.

Permanent
staff

624

290

679

250

687

259

Turnoverrate*1

2.60%

1.71%

2.80%

1.50%

2.86%

1.55%

Nonpermanent
staff

1,818

330

1,854

248

1,730

270

Total

2,442

620

2,533

498

2,417

529

*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 as a basis for comparison with
the number of retires through March 31 of the same fiscal year.

Consolidated subsidiaries in Japan:*2
LIXIL Total Service Corporation, Kawashima Selkon Textiles Co., Ltd., Kawashima Selkon Sewing
Ltd., Kawashima Bunka Jigyodan Ltd., Benikoya Ltd., LIXIL Logistics Corporation, Maruki Unyu
Corporation, LIXIL Window Products Inc., Handy Techno Co., Ltd., NITTO CERA Corporation,
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 Business Service
Corporation, LIXIL Travel Corporation, LIXIL Insurance Service Corporation, LIXIL Total Hanbai
Corporation, LIXIL SUZUKI SHUTTER CORPORATION, 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., LIXIL TEPCO Smart Partners Inc., blisspa japan Inc. and K-engine Inc.

LIXIL Group Corporate Responsibility Report 201878

Performance > Human Resource Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain

Performance
Human Resource Performance
Environmental Performance

ReportingConsolidated 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 Co ., Ltd., PT AMERICAN STANDARD INDONESIA, LIXIL Sanitary Fitting Manufacturing(Suzhou) Corporation, LIXIL Building Materials Manufacturing (Suzhou) Corporation, LIXIL
Korea Inc., PT LIXIL ALUMINIUM INDONESIA, Taiwan INAX Corporation, LIXIL Philippines Ltd.,
Co., LIXIL India Private Limited, American Standard Asia Pacific (Shanghai) Management Co.,
Ltd., A-S (China) Co., Ltd., HUAMEI Sanitary Ware Co., Ltd., Jiangmen LIXIL AS Sanitary Fitting
Manufacturing Co., Ltd., LIXIL AS Sanitary Manufacturing (Tianjin) Co., Ltd., LIXIL AS Sanitary
Manufacturing (Shanghai) Co., Ltd., LIXIL Australia Pty Ltd., AS America Inc., LIXIL Canada Inc.,
LIXIL Suzuki (Hong Kong) Company Ltd., LIXIL Suzuki (Macau) Company Ltd., LIXIL Housing
Products Manufacturing (Shanghai) Corporation, LIXIL Taiwan Corporation, AS Maquilla Mexico
S de R L de C V, Decorative Panels International Inc., ASB Ceramica Dominica SAS, LIXIL
Myanmar Ltd., Safety Tubs Company,LLC, AS Logistics Inc., LG-TOSTEM BM Co., Ltd., LIXIL
Trading (Shanghai) Corporation, LIXIL WINDOW SYSTEMS PRIVATE LIMITED, LIXIL International
Pte., Ltd.

Data Collection Method and Period
The number of employees is calculated on an original registration basis for each company,
mainly as of March 31, 2018.

Consolidated Subsidiaries of LIXIL Living Solution Corporation*4
Consolidated subsidiaries in Japan:
LIXIL REALTY Corp, JAPAN HOME SHIELD CORPORATION, LIXIL Housing Research InstituteLtd., JHS Engineering Corporation, First Inspection Service Inc., JHB Corporation, Home Energy
Corporation, Will Corporation, GHS Corporation, Jyuseikatsu SSI Co., Ltd.

Consolidated Subsidiaries of LIXIL Group Finance Corporation*5
Consolidated subsidiaries in Japan:
LIXIL Home Finance Corporation

LIXIL Group Corporate Responsibility Report 201879

Performance > Environmental Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain

Performance
Human Resource Performance
Environmental Performance

Reporting

Performance

Environmental Performance
The 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 reducethem.
Includes the following information/data:
1. Material Balance (INPUT): Material usage, Energy usage,
Water intake
2. Material Balance (OUTPUT): CO2 emissions, Waste
emissions, Water discharge, Air pollutant emissions
FYE2018 Environmental Performance Data indicated with ★
have received the independent practitioner’s assurance.
Data for FYE2016 and FYE2017 were revised based on thescope change.
See the Coverage on page 90.

LIXIL Group Corporate Responsibility Report 201880

Performance > Environmental Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment

LIXIL Group Environment Performance Data

Environmental Performance

ReportingElectricity

Procurement

Steam
FYE2016

FYE2017

FYE2018

City gas

Metals raw
materials

259 thousand t

266 thousand t

289 thousand t

Fuel oil

Plastics raw
materials

54 thousand t

58 thousand t

62 thousand t

Wood rawmaterials

147 thousand t

146 thousand t

150 thousand t

Ceramics
rawmaterials

462 thousand t

521 thousand t

447 thousand t

Total 922 thousand t

991 thousand t

949 thousand t

Material usage

Customers & Supply Chain

Human Resource Performance

Energy usage

1. Material Balance (INPUT) ★

Society

Performance

Manufacture / Sales

Raw
materials

LPG
LNG
Kerosene
Gasoline
DieselCoal

Difference from theprevious year

-42 thousand t

Year on year

95.7%

Photovoltaic
power
Generation generation
Generationofelectricity* from nonrenewablesources
Energy consumption

FYE2016
thousand
1,187,683
kWhthousand
144
GJ
thousand
175,476 3m
thousand
7,140
L
thousand
14,246kg
thousand
13,257kg
thousand
2,800
L
thousand
8,441
L
thousand
3,195
L
thousand15t

FYE2017thousand
1,109,943
kWhthousand
161
GJ
thousand
201,022 3m
thousand
5,924
L
thousand
16,215kg
thousand
13,435kg
thousand2,228
L
thousand
8,111
L
thousand
3,138
L
thousand0t

FYE2018
thousand
1,128,157
kWhthousand
168
GJ
thousand
204,334 3m
thousand
5,240
L
thousand
18,835kg
thousand
14,263kg
thousand2,222
L
thousand
7,814
L
thousand
3,053
L
thousand0t

24.0

thousandkWh

23.9

thousandkWh

24.0

thousandkWh

94,517thousandkWh106,257

thousandkWh102,861thousandkWh

20,654thousandGJ

21,968thousandGJ

22,471

thousandGJ

504 thousand GJ

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

Difference from the previous year

LIXIL Group Corporate Responsibility Report 2018

102.3%

81

Performance > Environmental Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment

Water intake

FYE2016

FYE2017

FYE2018

Potable waterIndustrial
water
Ground water

1,649 thousand m3

2,212 thousand m3

2,248 thousand m3

4,472 thousand m3

3,776 thousand m3

3,483 thousand m3

5,593 thousand m3

5,307 thousand m3

6,387 thousand m3

River water

6,050 thousand m3

6,713 thousand m3

5,932 thousand m3

Society
Customers & Supply Chain

Performance
Human Resource Performance

2. Material Balance (OUTPUT) ★

Manufacture / Sales

Total 17,764 thousand m3 18,009 thousand m3 18,050 thousand m3*Data excludes the tenants in the building that we cannot assess the water intake data. In FYE2016, LIXIL Total Service Corporation is excluded.

Difference from theprevious year

42 thousand m3 Year on year

100.2%

Environmental Performance

Reporting

Logistics
Energy usage
Fuel (Crude
oil equivalent)
Energyconsumption

FYE2016

FYE2017

FYE201844.9 thousand kL

43.8 thousand kL

45.9 thousand kL

1,740 thousand GJ

1,698 thousand GJ

1,778 thousand GJ*Data covers the services, which LIXIL Corporation was identified as the consigner.

Difference from theprevious year

80 thousand GJ Year on year

104.7%

Procurement (Scope 3)CO2 emissions

FYE2016

FYE2017

FYE2018

Metalsrawmaterials

1,327

thousand
t-CO2

1,323

thousand
t-CO2

1,458

thousandt-CO2

Plastics
rawmaterials

172

thousand
t-CO2

179

thousand
t-CO2

190

thousand
t-CO2

130

thousand
t-CO2

128

thousand
t-CO2

128

thousandt-CO2

Ceramics
rawmaterials

74

thousandt-CO2

77

thousandt-CO282

thousandt-CO2

Metalsparts

867

thousand
t-CO2

868

thousand
t-CO2

844

thousandt-CO2

Plastics
parts

354

thousand
t-CO2

351

thousand
t-CO2

361

thousand
t-CO2

146

thousand
t-CO2

146

thousand
t-CO2

140

thousandt-CO2

Ceramics
parts

92

thousand
t-CO2

104

thousand
t-CO2

124

thousandt-CO2

Others164

thousand
t-CO2

174

thousand
t-CO2

188

thousand
t-CO2

3,326

thousand
t-CO2

3,348

thousand
t-CO2

3,515

thousandt-CO2

166 thousand -CO2

Year onyear

Rawmaterials Woodrawmaterials

Parts/
Wood
materials parts

Total

Difference from the previous
year

LIXIL Group Corporate Responsibility Report 2018

105.0%

82

Performance > Environmental Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

Manufacture / Sales (Scope 1 and 2)

Water
discharge

FYE2016

FYE2017

FYE2018

CO2
emissions

FYE2016

FYE2017

FYE2018

Our Approach

Electricity

591.8 thousand t-CO2

600.0 thousand t-CO2

607.8 thousand t-CO2

Our People

Steam

8.6 thousand t-CO2

9.7 thousand t-CO2

10.1 thousand t-CO2

Environment

City gas379.0 thousand t-CO2

433.5 thousand t-CO2

440.1 thousand t-CO2

Fuel oil19.3 thousand t-CO2

16.1 thousand t-CO2

14.2 thousand t-CO2

LPG

42.7 thousand t-CO2

48.6 thousand t-CO2

56.5 thousand t-CO2

LNG

35.8 thousand t-CO2

36.3 thousand t-CO2

38.5 thousand t-CO2

Air pollutant emissions

FYE2017

FYE2018

Kerosene

7.0 thousand t-CO2

5.5 thousand t-CO2

5.5 thousand t-CO2

NOx

397 t

387 t

Gasoline

19.6 thousand t-CO2

18.8 thousand t-CO2

18.1 thousand t-CO2

SOx

37 t

49 t

Diesel8.2 thousand t-CO2

8.1 thousand t-CO2

7.9 thousand t-CO2

Soot and dust

524 t

571 t

Coal

34.2 thousand t-CO2

0 thousand t-CO2

0 thousand t-CO2

1,146 thousand t-CO2

1,177 thousand t-CO2

1,199 thousand t-CO2

22 thousand t-CO2 Year on year

101.9%

Society
Customers & Supply Chain

Performance
Human Resource Performance
Environmental Performance

Reporting

Total

Difference from theprevious year

Wastewater

16,715thousandm3

16,788thousandm3

Difference from theprevious year

Year onyear

44 thousand m3

Logistics (Scope 3)
CO2emissions

FYE2016119

FYE2017

FYE2017

FYE2018

Fuel (Crude
oil equivalent)

Recycled

124 thousand t

136 thousand t

141 thousand t*Data covers the services which LIXIL Corporation was identified as the consigner.

Landfilled

140 thousand t

147 thousand t

139 thousand t

264 thousand t

284 thousand t

281 thousand t

Year on
year

98.9%

-3 thousand t

100.3%*Data covers production sites subject to regulatory monitoring for NOx, SOx, soot and dust emissions.
*Data for FYE2017 was revised based on the calculation method change.

FYE2016

Difference from theprevious year

thousandm3*Data excludes the tenants in the building that we cannot assess the water discharge data. In FYE2016, LIXIL Total Service Corporation is
excluded.

WasteemissionsTotal

16,832Difference from theprevious year

thousand
t-CO2

117

5 thousand t-CO2

thousandt-CO2
Year onyear

LIXIL Group Corporate Responsibility Report 2018

FYE2018122

thousandt-CO2

104.3%

83

Performance > Environmental Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach［CO2 Conversion Coefficients Used to Convert CO2 Emissions］

Use of Products (Scope3)

・CO2 emissions (procurement) ＝ (Amount of purchased raw materials) × (CO2 conversion

CO2
emissions
Total

FYE2016
105,528

Our People

thousandt-CO2

FYE2017
115,651

thousandt-CO2

FYE2018
111,618

thousandt-CO2Society

Difference from theprevious year

-4,034 thousand t-CO2

Year onyear

Human Resource Performance
Environmental Performance

Reportingcoefficient)*7
・CO2 emissions (logistics) ＝ (Transported weight) × (Transportation distance) × (CO2 conversion
・CO2 emissions (product usage) = (Electricity, Fuel & Water consumption per each product) × (amount

96.5%

Customers & Supply Chain

Performance・CO2 emissions (manufacture & sales) ＝ (Electricity & Fuel consumption) × (CO2 conversion

coefficient)*8*Data for FYE2016 and FYE2017 was revised due to the expansion of the scope of energy consumption in FYE2018.

Environment

coefficient)*5＋(Cost of purchasing parts & materials) × (CO2 conversion coefficient)*6

of sales) × (CO2 conversion coefficient)*9*5 Emissions intensity from CFP (Carbon Footprint of Products) Communication Program, Basic Database Version 1.01

［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)× (Energy conversion coefficient)*3
・Energy consumption (logistics) ＝ (Transported weight) × (Transportation distance) ×(Energy conversion coefficient)*4*6 Emissions intensity from Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Version
2.4*7 Purchased 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 Emissions 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: 0.447kgCO2 /kWh (The Japan Electrical Manufacturers’ Association)
City gas: 2.23kgCO2 /m³ (Japan Valve Manufacturers’ Association)
Water: 0.23kg CO2 /m³ (Japan Sanitary Equipment Inductry Association)
Coefficients for other brands’ products are set by each brand or region of sales.

*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*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 of Rational Useof Energy (Measures Pertaining to Consigners)

LIXIL Group Corporate Responsibility Report 201884

Performance > Environmental Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message

3. Value Chain CO2 Emissions (Scope 3)

CR Management Structure andMaterial Issues Selection

Category

Our Approach

FYE2016

1

Purchased goods & services

FYE2017

FYE2018

3,326 thousand t-CO2

3,348 thousand t-CO2

3,515 thousand t-CO2

2

Capital goods

Our People

298 thousand t-CO2

196 thousand t-CO2

216 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

Environment

4

Upstream transportation & distribution

119 thousand t-CO2

117 thousand t-CO2

122 thousand t-CO2

5

Waste generated operations

387 thousand t-CO2

407 thousand t-CO2

386 thousand t-CO2

6

Business travel

8 thousand t-CO2

7 thousand t-CO2

7 thousand t-CO2

7

Employee commuting

28 thousand t-CO2

23 thousand t-CO2

26 thousand t-CO2

8

Upstream leased assets*1― thousand t-CO2― thousand t-CO2― thousand t-CO2

Human Resource Performance9

Downstream transportation & distribution*2― thousand t-CO2― thousand t-CO2― thousand t-CO2

Environmental Performance

10 Processing of sold products*― thousand t-CO2― thousand t-CO2― thousand t-CO2

105,528 thousand t-CO2

115,651 thousand t-CO2

111,618 thousand t-CO2

12 End of life treatment of sold products

485 thousand t-CO2

496 thousand t-CO2

470 thousand t-CO2

13 Downstream leased assets*― 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

110,329 thousand t-CO2

120,405 thousand t-CO2

116,525 thousand t-CO2

Year on year

97%

Society
Customers & Supply Chain

Performance

Reporting2

11 Use of sold products

14 Franchises*22

15 Investments*

2

Total

Difference fromthe previous
year-3,880 thousand t-CO2［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 Ver2.2 (Ministry of the Environment and Ministry of Economy, Trade and Industry)*1: Excluded from the calculation since they are already included in Scope1 or Scope 2*2: Excluded from the calculation since they are not or less relevant to our main businesses

LIXIL Group Corporate Responsibility Report 201885

Performance > Environmental Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message

Number of Environmental Law Violations

CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain

Performance
Human Resource Performance
Environmental Performance

Reporting

FYE2016

FYE2017

FYE2018

No. of environmental law
violations

0

0

0

Total amount of fines/
penalties from the above

0

0

0

Environmental liability

0

0

0

*Scope: Significant violations with fines of US$10,000 or more

Preventing Pollution through Strict Control of Chemical Substances
LIXIL Corporation has set rules on substances that are forbidden or require strict control foruse in products and/or during production processes. We manage and monitor our factories incompliance with the Soil Contamination Countermeasures Act and other environmental laws andregulations to ensure the soil and waterways around our manufacturing facilities are not affectedby our operations.

LIXIL Group Corporate Responsibility Report 201886

Performance > Environmental Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain

Performance
Human Resource Performance
Environmental Performance

Reporting

Scope of Data Collection
In principle, environmental performance data covers all operating companies and theirconsolidated subsidiaries as of March 31 2018, with the exclusion of some consolidated
subsidiaries considering their business size and content. Moreover, due to decision to sell
Permasteelisa S.p.A., a consolidated subsidiary in August 2017, businesses of the company
and its subsidiaries are classified as discontinued operations and excluded from the scope of
data. With regard to non-consolidated subsidiaries, subsidiaries operating in buildings owned
and managed by an operating company of the LIXIL Group are treated as being part of the
LIXIL Group. Major production plants of non-consolidated companies are also included in thescope. Please note that the scope of environmental performance data differs from the scope ofsubsidiaries for the consolidated financial report. Where scope of data is different to those statedabove, details are specified in the footnotes.

Operating Companies of the LIXIL Group

Consolidated subsidiaries outside Japan:
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 (Shanghai) Co., Ltd.,PT AMERICAN STANDARD INDONESIA, LIXIL BUILDING MATERIALS MANUFACTURING (SUZHOU)CORPORATION, LIXIL Sanitary Fitting Manufacturing (Suzhou) Corporation, LIXIL Vietnam Corporation,
LIXIL (Thailand) Public Co. Ltd., LIXIL Korea Inc., PT LIXIL ALUMINIUM INDONESIA, LIXIL GLOBALMANUFACTURING VIETNAM Co., Ltd., TOSTEM THAI Co., Ltd., LIXIL Manufacturing (Dalian) Corporation,
LIXIL Suzuki (Hong Kong)Company, Ltd., American Standard Brands production sites, GROHE Group
production sites

Non-consolidated Subsidiaries of LIXIL Corporation
Non-consolidated subsidiaries in Japan (Manufacturing sites):
Maebashi LIXIL Factory Corporation, Ichinoseki LIXIL Factory Corporation, TONO LIXIL Factory
Corporation, HIKONE LIXIL Factory Corporation, Ibuki LIXIL Factory Corporation

Consolidated Subsidiaries of LIXIL Living Solution Corporation
LIXIL Corporation, LIXIL Living Solution Corporation, 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 ENERGY Co., Ltd., LIXIL Window Products Inc., G TERIOR Corporation, HANDY TECHNO Co., Ltd.,
Dinaone Corporation, NITTOCERA Corporation, blisspa japan Inc., Omi Chemical Pottery Corporation,
LIXIL Total Hanbai Corporation, LIXIL SUZUKI SHUTTER CORPORATION, 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, LIXIL Insurance Service
Corporation

Consolidated subsidiaries in Japan:
LIXIL Housing Research Institute, Ltd., LIXIL REALTY, Corp., JAPAN HOME SHIELDCORPORATION

Consolidated Subsidiaries of LIXIL Group Finance Corporation
Consolidated subsidiaries in Japan:
LIXIL HOME FINANCE, Corp.

LIXIL Group Corporate Responsibility Report 201887

Performance > Environmental Performance

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

Corporation Procurement, Logistics and Product Usage Data
Procurement:
All raw materials, parts, and packaging materials, which are managed by each procurement department in
LIXIL Water Technology and LIXIL Housing Technology, used for products are included in the calculations.
Manufacturing equipments and office supplies are excluded from the calculations.

Our People
Environment
Society
Customers & Supply Chain

Performance
Human Resource Performance

Logistics:
The scope of data calculation covers only the LIXIL transports which are designated as specified
consignor by the Act on the Rational Use of Energy.
Products usage:
The scope of data calculation covers each brand’s products manufactured by LIXIL Water Technology, LIXIL
Housing Technology, LIXIL Building Technology and Housing & Services Business.

Environmental Performance

Reporting

LIXIL Group Corporate Responsibility Report 2018

88

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain
Performance

Reporting
Scope of Reporting
Global Reporting Initiative (GRI) Index

Reporting
Scope of reporting and chart on the comparison of our disclosure to the GRI Sustainability Reporting Guidelines

LIXIL Group Corporate Responsibility Report 201889

Reporting > Scope of Reporting

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain
Performance

Reporting
Scope of Reporting
Global Reporting Initiative (GRI) Index

Reporting

Scope of Reporting
The LIXIL Group is committed to providing prompt andtransparent disclosure, seeking to build long-term trustof our stakeholders while achieving sustainable growththat complements society. We advance our Corporate
Responsibility (CR) activities by establishing lasting
relationships with our stakeholders through appropriate
disclosure, reporting, and dialogue.
Details of our CR activities and related information aredisclosed on our website. We also provide an update of CR
activities in our annual report. Please also see the Corporate
Governance section of this website for information on our
corporate governance policies.

Coverage

Independent Practitioner’s Assurance Report

CR activities of LIXIL Group Corporation, as well as LIXIL
Corporation and other operating companies are covered in
the report.
Unless otherwise stated, information on Permasteelisa(which we decided to sell in August 2017), is not included.
The scope is provided in footnotes for matters that havenarrower coverage.

LIXIL Group Corporation has received independentpractitioner’s assurance from Deloitte Tohmatsu Sustainability
Co.,Ltd. regarding FYE2018 human resource performancedata and environmental performance data indicated with ★.

Please click below for further information on humanresource performance data and scope (page 76 to 79), and on
environmental performance data and scope (page 80 to 88)

Reporting Period
Updated CR related information for FYE2018 (April 1, 2017
to March 31, 2018) has been published on December 11,
2018. We plan to update the report for the next fiscal year in
October 2019.

PDF

Human resouce performance data and scope(P76)

PDF

Environmental performance data and scope (P80)

LIXIL Group Corporate Responsibility Report 201890

Reporting > Scope of Reporting

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain
Performance

Reporting
Scope of Reporting
Global Reporting Initiative (GRI) Index

LIXIL Group Corporate Responsibility Report 201891

Reporting > Global Reporting Initiative (GRI) Index

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment

ReportingGlobal Reporting Initiative (GRI) Index
GRI 102: General Disclosures
Indicator

Performance

102-1

Name of theorganizationa. Name of the organization.

Annual Report
P109 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 Regional Platforms
P4 Brand Portfolio

102-3

Location of
headquarters

a. Location of the organization’s headquarters.

Annual Report
P109 Corporate Data

102-4

Location of operations

a. Number of countries where the organization
operates, and the names of countries where it has
significant operations and/or that are relevant to
the topics covered in the report.

Annual Report
P68 Global Manufacturing and Sales
Sites

102-5

Ownership and legal
form

a. Nature of ownership and legal form.

Annual Report
P109 Corporate Data

102-6

Markets served

a. Markets served, including:i. geographic locations where products andservices are offered;ii. sectors served;
iii. types of customers and beneficiaries.

Annual Report
P2 Regional Platforms
P60 Review of Operations

Reporting
Scope of Reporting

Information on
employees and otherworkers

102-9

Supply chain

a. A description of the organization’s supply chain,including its main elements as they relate to theorganization’s activities, primary brands, products,
and services.

CR Report
P67 Working with our Suppliers

Significant changes tothe organization andits supply chain

a. Significant 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,
and expansions;ii. Changes in the share capital structure and othercapital formation, maintenance, and alteration
operations (for private sector organizations);iii. Changes in the location of suppliers, thestructure of the supply chain, or relationships
with suppliers, including selection andtermination.

CR Report
P78 Scope of Data Collection

Report Page

1. Organizational Profile

Society
Customers & Supply Chain

102-8

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-time and part-time), by gender.
d. Whether a significant portion of the organization’s
activities are performed by workers who are not
employees. If applicable, a description of thenature and scale of work performed by workers
who are not employees.
e. Any significant variations in the numbers reported
in Disclosures 102-8-a, 102-8-b, and 102-8c (such as seasonal variations in the tourism oragricultural industries).
f. An explanation of how the data have been
compiled, including any assumptions made.

Global Reporting Initiative (GRI) Index

102-7

Scale of theorganizationa. 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 andequity;v. quantity of products or services provided.

Annual Report
P2 Regional Platforms
P68 Global Manufacturing and Sales
Sites
P98 Consolidated 10-Year Summary
P104 Principal Group Companies

102-10

有価証券報告書 (Availabe in Japanese)
http://v4.eir-parts.net/v4Contents/View.
aspx?cat=yuho_pdf&sid=2687892
P2 1.主要な経営指標等の推移
P8 3.事業の内容
P71 1.連結財務諸表等
FINANCIAL RESULTS FOR THE FISCALYEAR ENDED MARCH 31, 2018 (IFRS)
http://v4.eir-parts.net/v4Contents/View.
aspx?cat=tdnet&sid=1578457
P29 FYE2018 CONSOLIDATED BUSINESSRESULTSCR Report
P77 LIXIL Group Human Resource
Performance Data

CR Report
P45 Environmental Management
P53 Conserving Water in Business
Activities, Reducing water usage infactories
P68 Management of Chemical
Substances
102-11

Precautionary
Principle or approacha. Whether and how the organization applies the
Precautionary Principle or approach.

CDP Climate Change
Questionnaire2017
CC2. Strategy, CC5. Climate Change
Risks, CC6. Climate Change
Opportunities
https://www.cdp.net/
sites/2017/63/9863/Climate%20
Change%202017/Pages/
DisclosureView.aspx (Log in required)

LIXIL Group Corporate Responsibility Report 201892

Reporting > Global Reporting Initiative (GRI) Index

LIXIL Group
Corporate
Responsibility Report 2018

Message102-12External initiatives

a. A list of externally-developed economic,
environmental and social charters, principles,or other initiatives to which the organization
subscribes, or which it endorses.

CR Report
P6 Commitment to the UN Global
Compact
P7 Sustainable Development Goals

Membership ofassociations

a. A list of the main memberships of industry orother associations, and national or international
advocacy organizations.

CR Report
P18 Activities
P19 The Joint Declaration on theJapan Initiative for Hygiene Issues
P61 Relationship with stakeholders

CR Management Structure andMaterial Issues Selection
Our Approach
Our People

102-13102-14a. A statement from the most senior decisionmaker of the organization (such as CEO, chair, orStatement from seniorequivalent senior position) about the relevance ofdecision-makersustainability to the organization and its strategy foraddressing sustainability.

Customers & Supply Chain

CR Report
P4 Message from CR Committee
Chairperson & Express our support
to UNGC

102-21

Annual Report
P97 Measures against Risks that May
Influence Management Strategy
P100 Business Risks

Performance

Reporting
Scope of Reporting

102-202. Strategy

Environment
Society102-19102-15Key impacts, risks,and opportunities

a. A description of key impacts, risks, andopportunities.

Global Reporting Initiative (GRI) Index

Delegating authority

3. Ethics and Integrity

102-16

Values, principles,standards, and normsof behavior

a. A description of the organization’s values,
principles, standards, and norms of behavior.

Annual Report
P17 LIXIL's People: Purpose-Driven
and Entrepreneurial
P95 LIXIL Group Code of Conduct,
Corporate Culture102-17

Mechanisms foradvice and concerns
about ethics

a. 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.

Annual Report
P94 Internal Control Systems andCompliance102-22

Annual Report
P86 Corporate Governance at the LIXILGroup
CR Report
P9 CR Management Structure

Executive-level
responsibility
for economic,
environmental, andsocial topics

a. Whether the organization has appointed
an executive-level position or positions withresponsibility for economic, environmental, andsocial topics.
b. Whether post holders report directly to the highest
governance body.

Annual Report
P86 Corporate Governance at the LIXIL
Group

Consulting
stakeholders
on economic,
environmental, andsocial topics

a. Processes for consultation between stakeholders
and the highest governance body on economic,
environmental, and social topics.
b. If consultation is delegated, describe to whom it
is delegated and how the resulting feedback isprovided to the highest governance body.

Annual Report
P86 Corporate Governance at the LIXIL
Group

有価証券報告書 (Availabe inJapanese)
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aspx?cat=yuho_pdf&sid=2687892
P17 2. 事業等のリスク
Websitehttps://www.lixil.com/en/investor/
strategy/risks.html
Business Risks

a. Process for delegating authority for economic,
environmental, and social topics from the highest
governance body to senior executives and other
employees.

Composition of thehighest governancebody and its
committees

a. Composition of the highest governance body andits committees by:i. executive or non-executive;ii. independence;iii. tenure on the governance body;iv. number of each individual’s other significant
positions and commitments, and the nature of
the commitments;
v. gender;
vi. membership of under-represented socialgroups;vii. competencies relating to economic,
environmental, and social topics;viii. stakeholder representation.

CR Report
P9 CR Management Structure

CR Report
P9 CR Management Structure
Annual Report
P81Board of Directors' EffectivenessEvaluation>Directors/Executive
Officers, Composition of the Membersof the Board of Directors
P82 Board of Directors of LIXIL Group
Corporation
P85 Reasons for Nomination as
Director
P86 Corporate Governance at the LIXIL
Group
P88 Independence Criteria of Outside
Directors
P89 Review of Corporate Governance
有価証券報告書 (Availabe inJapanese)
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aspx?cat=yuho_pdf&sid=2687892
P47 5.役員の状況

4. Governance102-18Governance structurea. Governance structure of the organization,
including committees of the highest governancebody.
b. Committees responsible for decision-making on
economic, environmental, and social topics.

Annual Report
P86 Corporate Governance at the LIXILGroup
CR Report
P9 CR Management Structure

LIXIL Group Corporate Responsibility Report 201893

Reporting > Global Reporting Initiative (GRI) Index

LIXIL Group
Corporate
Responsibility Report 2018

Annual Report
P81 Board of Directors' EffectivenessEvaluation>Directors/Executive
Officers, Composition of the Membersof the Board of Directors

Message
CR Management Structure andMaterial Issues Selection
Our Approach102-23Chair of the highest
governance body

Our People

a. Whether the chair of the highest governance bodyis also an executive officer in the organization.
b. If the chair is also an executive officer, describe
his or her function within the organization's
management and the reasons for this arrangement.

Environment

有価証券報告書 (Availabe inJapanese)
http://v4.eir-parts.net/v4Contents/View.
aspx?cat=yuho_pdf&sid=2687892
P47 5.役員の状況

102-25

WebsiteAbout Us>Governance Framework
http://www.lixil.com/en/about/governance/framework.html

Society

Annual Report
P85 Reasons for Nomination as
Director
P86 Corporate Governance at the
LIXIL Group

Customers & Supply Chain
Performance

Reporting
Scope of Reporting
Global Reporting Initiative (GRI) Index
102-24

Nominating andselecting the highest
governance bodya. Nomination and selection processes for thehighest governance body and its committees.
b. Criteria used for nominating and selecting highest
governance body members, including whether andhow:i. stakeholders (including shareholders) are
involved;
ii. diversity is considered;iii. independence is considered;iv. expertise and experience relating to economic,
environmental, and social topics are considered.

LIXIL Group Corporate Governance
Guidelines
http://www.lixil.com/en/about/governance/
pdf/CorporateGovernanceGuideline180625.
pdf
P13 Article 19 Composition of theBoard of Directors
P14 Article 21 Composition ofNomination Committee, Compensation
Committee, and Audit Committee,
Article 22 Policy for Nomination of
Director Candidates
P15 Article 23 Policy for Appointment
of Executive Officers
P17 Article 27 Independence Criteria
WebsiteAbout Us>Governance Framework
http://www.lixil.com/en/about/governance/
framework.html

Conflicts of interest

a. Processes for the highest governance bodyto ensure conflicts of interest are avoided andmanaged.
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
http://www.lixil.com/en/about/governance/
pdf/CorporateGovernanceGuideline180625.
pdf
P12 Article 18 Role and Duties of theBoard of Directors
P16 Article 25 Duties of Independent
Outside Directors
有価証券報告書 (Availabe inJapanese)
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P47 5.役員の状況

102-26

Role of highest
governance bodyin setting purpose,values, and strategy

a. Highest governance body’s and senior executives’roles in the development, approval, and updatingof the organization’s purpose, value or mission
statements, strategies, policies, and goals related
to economic, environmental, and social topics.

Annual Report
P86 Corporate Governance at the
LIXIL Group>Governance Structure(Corporate Responsibility Committee)

102-27

Collective knowledgeof highest governancebody

a. Measures taken to develop and enhance thehighest governance body’s collective knowledge of
economic, environmental, and social topics.

−

Evaluating the highest
governance body’s
performancea. Processes for evaluating the highest governancebody’s performance with respect to governance ofeconomic, 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 withrespect to governance of economic, environmental,
and social topics, including, as a minimum,changes in membership and organizational
practice.

Identifying andmanaging economic,
environmental, andsocial impacts

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 and management of economic,
environmental, and social topics and their impacts,
risks, and opportunities.

102-28102-29102-30Effectiveness ofrisk management
processes

Annual Report
P86 Corporate Governance at the
LIXIL GroupP89 Review of Corporate Governance
P94 Internal Control Systems andComplianceP96 Risk Management
CR Report
P9 CR Management Structure

a. Highest governance body’s role in reviewing theeffectiveness of the organization’s risk management Annual Report
processes for economic, environmental, and social P96 Risk Management
topics.

LIXIL Group Corporate Responsibility Report 201894

Reporting > Global Reporting Initiative (GRI) Index

LIXIL Group
Corporate
Responsibility Report 2018

Message102-31

Review of economic,
environmental, andsocial topics

a. Frequency of the highest governance body’s
review of economic, environmental, and social
topics and their impacts, risks, and opportunities.

Annual Report
P89 Review of Corporate
Governance>Number of Meetings Held
During FYE2018

102-32Highest governancebody’s role insustainability
reportinga. The highest committee or position that formallyreviews and approves the organization’ssustainability report and ensures that all material
topics are covered.

−102-33

Communicating
critical concerns

a. Process for communicating critical concerns to the Annual Reporthighest governance body.
P96 Risk Management102-40102-34Nature and total
number of criticalconcerns

a. Total number and nature of critical concerns thatwere communicated to the highest governancebody.
b. Mechanism(s) used to address and resolve criticalconcerns.

102-35a. Remuneration policies for the highest governancebody and senior executives for the following typesof remuneration:i. Fixed pay and variable pay, including
performance-based pay, equity-based pay,bonuses, and deferred or vested shares;
ii. Sign-on bonuses or recruitment incentive
payments;
iii. Termination payments;
Remuneration policies
iv. Clawbacks;
v. Retirement benefits, including the difference
between benefit schemes and contribution
rates for the highest governance body, senior
executives, and all other employees.
b. How performance criteria in the remuneration
policies relate to the highest governance body's
and senior executives’ objectives for economic,
environmental, and social topics.

CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain
Performance

Reporting
Scope of Reporting
Global Reporting Initiative (GRI) Index−

102-36102-37102-38Process fordetermining
remuneration−

List of stakeholder
groupsa. A list of stakeholder groups engaged by theorganization.

CR Report
P61 Relationship with stakeholders

102-41

Collective bargaining
agreements

a. Percentage of total employees covered bycollective bargaining agreements.

CR Report
P33 Labor-Management Relationship

102-42

Identifying andselectingstakeholders

CR Report
a. The basis for identifying and selecting stakeholders
P60 Stakeholder Engagement>Ourwith whom to engage.
Approach102-43

Approach to
stakeholder
engagement

a. The organization’s approach to stakeholder
engagement, including frequency of engagementby type and by stakeholder group, and an
indication of whether any of the engagement
was undertaken specifically as part of the report
preparation process.

CR Report
P31 A Fair & Rewarding Workplace
P60 Stakeholder Engagement

Key topics andconcerns raised

a. Key topics and concerns that have been raised
through stakeholder engagement, including:i. how the organization has responded to those
key topics and concerns, including through its
reporting;ii. the stakeholder groups that raised each of the
key topics and concerns.

CR Report
P31 A Fair & Rewarding Workplace102-395. Stakeholder Engagement

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P64 ④役員報酬等
Websitehttps://www.lixil.com/en/about/governance/compensation.html
Corporate Officer Compensation

102-44

6. Reporting Practice

有価証券報告書 (Availabe in Japanese)a. 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.

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 thehighest-paid individual) in the same country.

Percentage increasein annual totalcompensation ratio

102-45

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aspx?cat=yuho_pdf&sid=2687892
P64 ④役員報酬等
Websitehttps://www.lixil.com/en/about/governance/compensation.html
Corporate Officer Compensation

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.

Annual totalcompensation ratioa. Ratio of the annual total compensation for theorganization’s highest-paid individual in eachcountry of significant operations to the medianannual total compensation for all employees(excluding the highest-paid individual) in the same
country.

Entities includedin the consolidated
financial statementsa. 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.

有価証券報告書 (Availabe in Japanese)
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aspx?cat=yuho_pdf&sid=2687892
P8-13 3. 事業の内容、4. 関係会社の状況
Annual Report
P104 Principal Group Companies

102-46

Defining reportcontent and topic
Boundaries

a. An explanation of the process for defining thereport content and the topic Boundaries.
b. An explanation of how the organization has
implemented the Reporting Principles for defining
report content.

102-47

List of material topics

a. A list of the material topics identified in the process CR Reportfor defining report content.
P10 Material Issues

102-48

Restatements of
informationa. The effect of any restatements of information
given in previous reports, and the reasons for such
restatements.

CR Report
P10 Material Issues

CR Report
P78 Scope of Data Collection−

LIXIL Group Corporate Responsibility Report 201895

Reporting > Global Reporting Initiative (GRI) Index

LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

102-49Changes in reportinga. Significant changes from previous reporting
periods in the list of material topics and topic
Boundaries.

N/A

102-50

Reporting period

a. Reporting period for the information provided.

CR Report
P2 Contents
P90 Scope Of Reporting>Reporting
Period102-51

Date of most recent
reporta. If applicable, the date of the most recent previous
report.

Coporate Responsibility Report 2017https://www.lixil.com/en/sustainability/
reporting/pdf/LIXIL_CR2017_en.pdf

102-52

Reporting cycle

a. Reporting cycle.

CR Report
P90 Scope Of Reporting>Reporting
Period102-53

Contact point forquestions regarding
the reporta. The contact point for questions regarding thereport or its contents.

WebsiteTo Link to Our Site or for Other
Questions and Comments
https://www.lixil.com/en/contact/
questions/

Claims of reporting inaccordance with the
GRI Standards

a. The claim made by the organization, if it has
prepared a report in accordance with the GRI
Standards, either:i. ‘This report has been prepared in accordancewith the GRI Standards: Core option’;ii. ‘This report has been prepared in accordancewith 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 the report.
b. For each disclosure, the content index shall
include:i. the number of the disclosure (for disclosures
CR Report
covered by the GRI Standards);
P92-106 Global Reporting Initiativeii. the page number(s) or URL(s) where the(GRI) Index
information can be found, either within the reportor in other published materials;
iii. if applicable, and where permitted, the reason(s)for omission when a required disclosure cannot
be made.

Our Approach
Our People
Environment
Society
Customers & Supply Chain
Performance

Reporting
Scope of Reporting

102-54Global Reporting Initiative (GRI) Index

102-55This report has been prepared inaccordance with the Global Reporting
Initiative (GRI) Standards: Core option.

102-56External assurance

a. A description of the organization's policy andcurrent practice with regard to seeking external
assurance for the 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
CR Report
not been assured and on what basis, including
P91 Reporting>Scope Of Reporting>Inthe assurance standards used, the level ofdependent Assurance
assurance obtained, and any limitations of theassurance process;ii. The relationship between the organization andthe assurance provider;iii. Whether and how the highest governance bodyor senior executives are involved in seeking
external assurance for the organization’ssustainability report.

GRI 103: Management Approach
Indicator

Report Page

GRI- 103: Management Approach

103-1

Explanation of thematerial topic and its
Boundarya. 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 or contributed to the impacts, oris directly linked to the impacts through its
business relationships.
c. Any specific limitation regarding the topic
Boundary.

CR Report
P10 Material Issues

LIXIL Group Corporate Responsibility Report 2018

96

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People
Environment
Society
Customers & Supply Chain
Performance

Reporting
Scope of Reporting
Global Reporting Initiative (GRI) Index

103-2

The management
approach and its
components

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
P9 CR Management Structure
P10 Material Issues
P11-13 2020 Targets for Material
issues
P15-29 Corporate Responsibility
Strategy
P25 Water Conservation &Environmental Sustainability>2020
Mid-term Targets
P27 Diversity & Inclusion>Universal
Design Policy (Japanese only)
P34 Work Safety & Well-being>LIXILGroup Occupational Health and Safety
Principles
P35 Work Safety & Wellbeing>Implementation System
P45 Environmental
Management>Environmental
Sustainability Principles
P46 Environmental
Management>Promoting EHS
P58 Human Rights>Human Rights
Principles
P59 Human Rights>Concern-raising
System
P62 Community>Implementation
framework
P67 Responsible Supply Chain
Management>Procurement Policy
P69 Product Safety & Quality>LIXILGroup Quality Policy
P70 Product Safety &Quality>Management Structure
P73 Customer
Satisfaction>Implementing the Six
Sigma
Quality Management Method
Annual Report
P78 List of LIXIL's Material Issues,
Targets, and KPIs

103-3

Evaluation of the
management
approacha. An explanation of how the organization evaluates
the management approach, including:i. the mechanisms for evaluating the effectivenessof the management approach;ii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

CR Report
P5 Message from the Corporate
Responsibility (CR) Committee
Chairperson
P29 Diversity & Inclusion>International
Association of Universal Design(IAUD) award
P36 Work Safety & Well-being>External
Evaluations & Commendations
P42 Diversity & Equal
Opportunity>Other ExternalCommendations of LIXIL Corporation
P46 Environmental
Management>Promoting EHS>External
and Internal Audits
P72 Environmental
Management>External and Internal
AuditsGRI 200: Economic Topics
Indicator

Report Page

GRI- 201: Economic Performance

201-1

Direct economic
value generated anddistributed

a. Direct economic value generated and distributed(EVG&D) on an accruals basis, including thebasic components for the organization’s global
operations as listed below. If data are presented
on a cash basis, report the justification for thisdecision in addition to reporting the following basic
components:
i. Direct economic value generated: revenues;
ii. Economic value distributed: operating costs,
employee wages and benefits, payments toproviders of capital, payments to government by
country, and community investments;
iii. Economic value retained: ‘direct economic value
generated’ less ‘economic value distributed’.
b. Where significant, report EVG&D separately atcountry, regional, or market levels, and the criteria
used for defining significance.

WebsiteAbout Us>LIXIL at a Glance
https://www.lixil.com/en/about/about.
html
個人投資家の皆さまへ＞LIXILグルー
プの概略
https://www.lixil.com/jp/investor/private/
about.html(Japanese only)
CR Report
P62 Community>Implementation
framework>Social Contribution
Expenditures
有価証券報告書 (Availabe in Japanese)
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P71 1.連結財務諸表等

LIXIL Group Corporate Responsibility Report 2018

97

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach

201-2

Our People

Financial implications
and other risks andopportunities due toclimate change

Environment
Society
Customers & Supply Chain
Performance

Reporting
Scope of Reporting
Global Reporting Initiative (GRI) Index

201-3

201-4

Defined benefit plan
obligations and otherretirement plans

Financial assistancereceived fromgovernment

a. Risks and opportunities posed by climate changethat have the potential to generate substantive
changes in operations, revenue, or expenditure,including:i. a description of the risk or opportunity and its
classification as either physical, regulatory, orother;
ii. a description of the impact associated with therisk or opportunity;iii. the financial implications of the risk oropportunity before action is taken;
iv. the methods used to manage the risk oropportunity;v. the costs of actions taken to manage the risk oropportunity.
a. If the plan’s liabilities are met by the organization’s
general resources, the estimated value of thoseliabilities.
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 the employer to work towards fullcoverage, and the timescale, if any, by which theemployer hopes to achieve full coverage.
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 assistancereceived 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;
iv. awards;
v. royalty holidays;
vi. financial assistance from Export Credit Agencies(ECAs);
vii. financial incentives;
viii. other financial benefits received or receivablefrom any government for any operation.
b. The information in 201-4-a by country.
c. Whether, and the extent to which, any governmentis present in the shareholding structure.

GRI- 202: Market Presence

202-1

Ratios of standard
entry level wage by
gender compared to
local minimum wagea. 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 ofoperation to the minimum wage.
b. When a significant proportion of otherworkers (excluding employees) performing theorganization’s activities are compensated based on
wages subject to minimum wage rules, describe−
the actions taken to determine whether theseworkers are paid above the minimum wage.
c. Whether a local minimum wage is absent orvariable at significant locations of operation,
by gender. In circumstances in which different
minimums can be used as a reference, reportwhich minimum wage is being used.
d. The definition used for ‘significant locations ofoperation’.

202-2

Proportion of senior
management hiredfrom the local
community

a. Percentage of senior management at significant
locations of operation that are hired from the local
community.
b. The definition used for ‘senior management’.
c. The organization’s geographical definition of ‘local’.
d. The definition used for ‘significant locations ofoperation’.

−

有価証券報告書 (Availabe in Japanese)
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P86 1. 連結財務諸表等＞連結財務諸表注記＞14. 従業員給付

GRI- 203: Indirect Economic Impacts

203-1

203-2

CR Report
P61 Relationship withstakeholders>Government,
industrial association (Total politicalcontributions)

CR Report
P43 Diversity & Equal
Opportunity>Creating Local
Employment Opportunities

Infrastructure
investments andservices supported

a. Extent of development of significant infrastructure
investments and services supported.
b. Current or expected impacts on communities andlocal economies, including positive and negative
impacts where relevant.
c. Whether these investments and services arecommercial, in-kind, or pro bono engagements.

CR Report
P17-22 Global Sanitation & Hygiene
P62 Community

Significant indirect
economic impacts

a. Examples of significant identified indirect
economic impacts of the organization, including
positive and negative impacts.
b. Significance of the indirect economic impacts
in the context of external benchmarks andstakeholder priorities, such as national andinternational standards, protocols, and policy
agendas.

−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 ofoperation’.

CR Report
P67 Responsible Supply Chain
Management>Procurement transaction
amount breakdown by country

GRI- 204: Procurement Practices

204-1

Proportion of
spending on local
suppliers

LIXIL Group Corporate Responsibility Report 201898

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

205-1

Operations assessed
for risks related tocorruption

a. Total number and percentage of operations
assessed for risks related to corruption.
b. Significant risks related to corruption identified
through the risk assessment.

Communication andtraining about anticorruption policies
and procedures

a. Total number and percentage of governance bodymembers that the organization's anti-corruption
policies and procedures have been communicatedto, broken down by region.
b. Total number and percentage of employees thatthe organization’s anti-corruption policies andprocedures have been communicated to, broken
down by employee category and region.
c. Total number and percentage of business partners
that the organization’s anti-corruption policies andprocedures have been communicated to, broken
down by type of business partner and region.
Describe if the organization’s anti-corruption
policies and procedures have been communicatedto any other persons or organizations.
d. Total number and percentage of governance bodymembers that have received training on anticorruption, broken down by region.
e. Total number and percentage of employees thathave received training on anti-corruption, broken
down by employee category and region.

Annual Report
P78 List of LIXIL's Material Issues,
Targets, and KPIs>Fair Business
Practices>FYE2018 Review

a. Total number and nature of confirmed incidents ofcorruption.
b. Total number of confirmed incidents in which
employees were dismissed or disciplined forcorruption.
c. Total number of confirmed incidents whencontracts with business partners were terminatedor not renewed due to violations related tocorruption.
d. Public legal cases regarding corruption brought
against the organization or its employees during
the reporting period and the outcomes of suchcases.

Annual Report
P78 List of LIXIL's Material Issues,
Targets, and KPIs>Fair Business
Practices>FYE2018 Review−

Our Approach
Our People
Environment
Society
Customers & Supply Chain

GRI 300: Environmental Topics

GRI- 205: Anti-corruption

205-2

Performance

Reporting
Scope of Reporting
Global Reporting Initiative (GRI) Index

205-3

Confirmed incidentsof corruption andactions taken−

Indicator

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.

301-2

Recycled input
materials used

a. Percentage of recycled input materials used to
manufacture the organization's primary products
and services.

CR Report
P55 Sustainable Use Of
Resources>Recycling Resources in
Products and Services

301-3

Reclaimed products
and their packaging
materials

a. Percentage of reclaimed products and theirpackaging materials for each product category.
b. How the data for this disclosure have beencollected.

−

206-1

a. Number of legal actions pending or completed
during the reporting period regarding anticompetitive behavior and violations of anti-trust
and monopoly legislation in which the organization
has been identified as a participant.
b. Main outcomes of completed legal actions,
including any decisions or judgments.

CR Report
P81 LIXIL Group Environment
Performance Data>Material Balance(INPUT)

GRI- 302: Energy

302-1

a. Total fuel consumption within the organizationfrom non-renewable sources, in joules or multiples,and including fuel types used.
b. Total fuel consumption within the organizationfrom renewable sources, in joules or multiples, andincluding fuel types used.
c. In joules, watt-hours or multiples, the total:
i. electricity consumption
ii. heating consumptioniii. cooling consumption
Energy consumption
iv. steam consumption
within 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,in joules or multiples.
f. Standards, methodologies, assumptions, and/or
calculation tools used.
g. Source of the conversion factors used.

CR Report
P81 LIXIL Group Environment
Performance Data>Material Balance(INPUT)

302-2

Energy consumption
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
P81 LIXIL Group Environment
Performance Data>Material Balance(INPUT)

GRI- 206: Anti-competitive Behavior

Legal actions for anticompetitive behavior,anti-trust, andmonopoly practices

Report Page

GRI- 301: Materials

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

302-3

Energy intensity

Our Approach

CR Report
P81 LIXIL Group Environment
Performance Data>Material Balance(INPUT)

Reductions in energy
requirements ofproducts and services

a. Reductions in energy requirements of soldproducts and services achieved during thereporting period, in joules or multiples.
b. Basis for calculating reductions in energy
consumption, such as base year or baseline,
including the rationale for choosing it.
c. Standards, methodologies, assumptions, and/or
calculation tools used.

−a. Total volume of water withdrawn, with a breakdownby the following sources:
i. Surface water, including water from wetlands,
rivers, lakes, and oceans;ii. Ground water;iii. Rainwater collected directly and stored by theorganization;
iv. Waste water from another organization;
v. Municipal water supplies or other public or
private water utilities.
b. Standards, methodologies, and assumptions used.

CR Report
P54 Sustainable Water Use>Water
Usages (Intake)
P82 LIXIL Group Environment
Performance Data>Material Balance(INPUT)>Water withdrawal

Customers & Supply Chain
Performance

Reporting
Scope of Reporting

302-5

Global Reporting Initiative (GRI) Index

303-3

Water recycled andreuseda. Total volume of water recycled and reused by theorganization.
CR Report
b. Total volume of water recycled and reused as
P54 Sustainable Water Us>Introducing
a percentage of the total water withdrawal as
waste water recycling systems
specified in Disclosure 303-1.
c. Standards, methodologies, and assumptions used.

GRI- 304: Biodiversity

Reduction of energy
consumption

Environment
Society

CR Report
P84 Environmental Performance>Total
Energy Consumption Calculation
Methoda. Amount of reductions in energy consumption
achieved as a direct result of conservation andefficiency initiatives, in joules or multiples.
b. Types of energy included in the reductions;
whether fuel, electricity, heating, cooling, steam, or
all.
c. Basis for calculating reductions in energy
consumption, such as base year or baseline,
including the rationale for choosing it.
d. Standards, methodologies, assumptions, and/or
calculation tools used.

Our People

302-4

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
the organization, outside of it, or both.

304-1

a. For each operational site owned, leased, managed
in, or adjacent to, protected areas andareas of high biodiversity value outside protectedareas, 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
Operational sites
area, adjacent to, or containing portions of theowned, leased,
protected area) or the high biodiversity value
managed in, or
area outside protected areas;adjacent to, protected
iv. Type of operation (office, manufacturing or−
areas and areas ofproduction, or extractive);high biodiversity value
v. Size of operational site in km2 (or another unit, if
outside protected
appropriate);areas
vi. Biodiversity value characterized by the attributeof the 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).

304-2

a. Nature of significant direct and indirect impacts
on biodiversity with reference to one or more of thefollowing: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 andnon-point sources);iii. Introduction of invasive species, pests, andpathogens;iv. Reduction of species;−
v. Habitat conversion;
vi. Changes in ecological processes outside thenatural range of variation (such as salinity orchanges in groundwater 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.

GRI- 303: Water

303-1

Water withdrawal bysource303-2

a. Total number of water sources significantly
affected by withdrawal by type:i. Size of the water source;
ii. Whether the source is designated as a nationallyor internationally protected area;
Water sources
CR Reportiii. Biodiversity value (such as species diversity
significantly affected
P54 Sustainable Water Use>Identifying
and endemism, and total number of protectedby withdrawal of water
water risk in our production facilities
species);iv. Value or importance of the water source to local
communities and indigenous peoples.
b. Standards, methodologies, and assumptions used.

Significant impacts ofactivities, products,
and services on
biodiversity

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Reporting > Global Reporting Initiative (GRI) Index

LIXIL Group
Corporate
Responsibility Report 2018

Habitats protected or
restoreda. Size and location of all habitat areas protectedor restored, and whether the success of therestoration measure was or is approved byindependent external professionals.
b. Whether partnerships exist with third parties toprotect or restore habitat areas distinct from where −the organization has overseen and implemented
restoration or protection measures.
c. Status of each area based on its condition at theclose of the reporting period.
d. Standards, methodologies, and assumptions used.

IUCN Red List
species and national
conservation list
species with habitats
in areas affected byoperations

a. Total number of IUCN Red List species andnational conservation list species with habitats
in areas affected by the operations of theorganization, by level of extinction risk:
i. Critically endangered
ii. Endangerediii. Vulnerable
iv. Near threatenedv. Least concern

Message
CR Management Structure andMaterial Issues Selection

304-3

Our Approach
Our People
Environment
Society
304-4

Customers & Supply Chain
Performance

Reporting

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(Scope 2) GHG emissions in metric tons of CO2
equivalent.
c. If available, the gases included in the calculation;
whether CO2, CH4, N2O, 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 inemissions that triggered recalculations of baseyear 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
P83 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Manufacture/sales(Scope 1 and 2)
P84 LIXIL Group Environment
Performance Data>CO2 Conversion
Coefficients Used to Convert CO2
Emissions
P87 LIXIL Group Environment
Performance Data>Scope of Data
Collection

Other indirect (Scope
3) GHG emissions

a. Gross other indirect (Scope 3) GHG emissions inmetric tons of CO2 equivalent.
b. If available, the gases included in the calculation;
whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or
all.
c. Biogenic CO2 emissions in metric tons of CO2
equivalent.
d. Other indirect (Scope 3) GHG emissions categories
and activities 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 inemissions that triggered recalculations of baseyear 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
P82 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Procurement(Scope 3)
P83 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Logistics (Scope 3)
P84 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Use of products(Scope3)
P84 LIXIL Group Environment
Performance Data>CO2 Conversion
Coefficients Used to Convert CO2
EmissionsP83-85 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Value Chain CO2Emissions (Scope 3)
P87 LIXIL Group Environment
Performance Data>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, N2O, HFCs, PFCs, SF6, NF3, or all.

CR Report
P47 Greenhouse Gas Reduction
P84 LIXIL Group Environment
Performance Data>CO2 Conversion
Coefficients Used to Convert CO2
Emissions−

GRI- 305: Emissions

Scope of Reporting
Global Reporting Initiative (GRI) Index

305-1

Direct (Scope 1) GHG
emissionsa. Gross direct (Scope 1) GHG emissions in metrictons of CO2 equivalent.
b. Gases included in the calculation; whether CO2,
CH4, N2O, 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 inemissions that triggered recalculations of baseyear 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
P83 LIXIL Group Environment
Performance Data>Material
Balance>OUTPUT)>Manufacture/sales(Scope 1 and 2)
P84 LIXIL Group Environment
Performance Data>CO2 Conversion
Coefficients Used to Convert CO2
Emissions
P87LIXIL Group Environment
Performance Data>Scope of Data
Collection

305-3

305-4

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection
Our Approach
Our People

305-5

Reduction of GHG
emissions

Environment
Societya. GHG emissions reduced as a direct resultof reduction initiatives, in metric tons of CO2
equivalent.
b. Gases included in the calculation; whether CO2,
CH4, N2O, 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
other indirect (Scope 3).
e. Standards, methodologies, assumptions, and/or
calculation tools used.

Customers & Supply Chain
Performance

Reporting
Scope of Reporting

306-2

Waste by type anddisposal method

a. Total weight of hazardous waste, with a breakdownby the following disposal methods whereapplicable:
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 abreakdown 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)c. How the waste disposal method has been
determined:
i. Disposed of directly by the organization, orotherwise directly confirmed
ii. Information provided by the waste disposal
contractor
iii. Organizational defaults of the waste disposal
contractor

Significant spillsa. Total number and total volume of recorded
significant spills.
b. The following additional information for each spillthat was reported in the organization's financial
statements:
i. Location of spill;ii. Volume of spill;
N/Aiii. Material of spill, categorized by: oil spills (soilor water surfaces), fuel spills (soil or water
surfaces), spills of wastes (soil or water surfaces),
spills of chemicals (mostly soil or water surfaces),and other (to be specified by the organization).
c. Impacts of significant spills.

Transport ofhazardous waste

a. Total weight for each of the following:i. Hazardous waste transported
ii. Hazardous waste imported
iii. Hazardous waste exported
N/A
iv. Hazardous waste treatedb. Percentage of hazardous waste shippedinternationally.
c. Standards, methodologies, and assumptions used.

a. Production, imports, and exports of ODS in metrictons of 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.

305-6

Emissions of ozonedepleting substances
(ODS)

305-7

a. Significant air emissions, in kilograms or multiples,for each of the following:i. NOxii. SOxiii. Persistent organic pollutants (POP)
Nitrogen oxides (NOx),
iv. Volatile organic compounds (VOC)
sulfur oxides (SOx),
v. Hazardous air pollutants (HAP)and other significant
vi. Particulate matter (PM)air emissions
vii. Other standard categories of air emissions
identified in relevant regulations
b. Source of the emission factors used.
c. Standards, methodologies, assumptions, and/or
calculation tools used.

Global Reporting Initiative (GRI) Index

CR Report
P47 Greenhouse Gas Reduction
P82 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Procurement(Scope 3)
P83 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Manufacture/sales(Scope 1 and 2)
P83 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Logistics (Scope 3)
P84 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Use of products(Scope3)
P85 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Value Chain CO2Emissions (Scope 3)

CR Report
P83 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Air pollutant
emissions
306-3

GRI- 306: Effluents and Waste

306-1

Water discharge
by quality anddestinationa. Total volume of planned and unplanned water
discharges by:i. destination;
ii. quality of the water, including treatment method;iii. whether the water was reused by anotherorganization.
b. Standards, methodologies, and assumptions used.

CR Report
P54 Sustainable Water Use>Water
Usages (Discharge)
P83 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Water discharges
306-4

CR Report
P55 Sustainable Use Of
Resources>Recycling Resources in
Products and Services
P83 LIXIL Group Environment
Performance Data>Material
Balance(OUTPUT)>Waste emissions

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

306-5

Water bodies affectedby water discharges
and/or runoff

Our Approach
Our People

Society307-1

Non-compliance withenvironmental laws
and regulations

Performance

Reporting

Indicator−

a. Significant fines and non-monetary sanctions for
non-compliance with environmental laws and/or
regulations in terms of:i. total monetary value of significant fines;
ii. total number of non-monetary sanctions;iii. cases brought through dispute resolution
mechanisms.
b. If the organization has not identified any noncompliance with environmental laws and/or regulations, a brief statement of this fact issufficient.

401-1

CR Report
P86 Performance > Environmental
Performance > Number ofEnvironmental law violations

Report Page

GRI- 401: Employment

401-2

New employee
hires and employee
turnovera. Total number and rate of new employee hires
during the reporting period, by age group, genderand region.
b. Total number and rate of employee turnover
during the reporting period, by age group, genderand region.

CR Report
P78 Human Resource Performance> Number of New Hires Number
Retirees and Turnover Rate

Benefits provided tofull-time employeesthat are not provided
to temporary or parttime employees

a. Benefits which are standard for full-time
employees of the organization but are not provided
to temporary or part-time employees, by significant
locations of operation. These include, as aminimum: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 ofoperation'.

−

Parental leavea. Total number of employees that were entitled toparental leave, by gender.
b. Total number of employees that took parental
leave, by gender.
c. Total number of employees that returned to workin the reporting period after parental leave ended,by gender.
d. Total number of employees that returned to work
after parental leave ended that were still employed
12 months after their return to work, by gender.
e. Return to work and retention rates of employeesthat took parental leave, by gender.

CR Report
P32 A Fair & Rewarding Workplace> Supporting a Healthy Work-Life
Balance

GRI- 308: Supplier Environmental Assessment

Scope of Reporting
Global Reporting Initiative (GRI) Index

GRI 400: Social Topics

GRI- 307: Environmental Compliance

Environment

Customers & Supply Chain

a. 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
is designated as a nationally or internationallyprotected area;iii. the biodiversity value, such as total number ofprotected species.

308-1

308-2

New suppliers thatwere screened using
environmental criteriaa. Percentage of new suppliers that were screenedusing environmental criteria.

Negativeenvironmental
impacts in the supply
chain and actions
taken

a. Number of suppliers assessed for environmental
impacts.
b. Number of suppliers identified as having
significant actual and potential negativeenvironmental impacts.
c. Significant actual and potential negativeenvironmental impacts identified in the supply
chain.
d. Percentage of suppliers identified as having
significant actual and potential negativeenvironmental impacts with which improvements
were agreed upon as a result of assessment.
e. Percentage of suppliers identified as having
significant actual and potential negativeenvironmental impacts with which relationships
were terminated as a result of assessment, andwhy.

CR Report
P68 Responsible Supply Chain
Management > Responsible
Procurement Surveys and Follow-up
Action401-3−

GRI- 402: Labor/Management Relations

402-1

Minimum notice
periods regarding
operational changes

a. Minimum number of weeks’ notice typicallyprovided to employees and their representativesprior to the implementation of significant
operational changes that could substantially affectthem.
b. For organizations with collective bargaining
agreements, report whether the notice period andprovisions for consultation and negotiation are
specified in collective agreements.

CR Report
P33 A Fair & Rewarding Workplace>
Labor-Management Relationship

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

GRI- 403: Occupational Health and Safety
Workers
representation
in formal joint
management–worker
health and safetycommittees

Types of injury
and rates of injury,
occupational
diseases, lost days,
and absenteeism,and number of workrelated 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 a breakdown 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 theorganization, with a breakdown by:
i. region;ii. gender.
c. The system of rules applied in recording andreporting accident statistics.

CR Report
P35 Work Safety & Well-bein > The
Occurrence of Work-related Accidents

403-3

Workers with highincidence or high riskof diseases related totheir occupationa. Whether there are workers whose work, or
workplace, is controlled by the organization,
involved in occupational activities who have a highincidence 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)
with trade unions cover health and safety.
b. If so, the extent, as a percentage, to which various
health and safety topics are covered by these
agreements.

CR Report
P33 A Fair & Rewarding Workplace >Labor-Management Relationship

Average hours of
training per year per
employeea. Average hours of training that the organization’s
employees have undertaken during the reporting
period, by:i. gender;ii. employee category.

CR Report
P39 Our People > Talent Development> Annual training hours and costs per
employee

404-2

Programs for
upgrading employee
skills and transition
assistance programs

a. Type and scope of programs implemented andassistance provided to upgrade employee skills.
b. Transition assistance programs provided tofacilitate continued employability and the
management of career endings resulting fromretirement or termination of employment.

CR Report
P38 Our People > Talent Development> Our Approach to Talent Development
P39 Our People > Talent Development> Career Development Support

404-3

Percentage of
employees receiving
regular performanceand careerdevelopment reviews

a. Percentage of total employees by gender andby employee category who received a regularperformance and career development review
during the reporting period.

CR Report
P39 Our People > Talent Development> Evaluation Framework

403-1

Our Approach
Our People
Environment
Society403-2

Customers & Supply Chain
Performance

Reporting
Scope of Reporting
Global Reporting Initiative (GRI) Index

GRI- 405: Diversity and Equal Opportunity

a. The level at which each formal joint managementworker health and safety committee typicallyoperates within the organization.
b. Percentage of workers whose work, or workplace,is controlled by the organization, that are
represented by formal joint management-worker
health and safety committees.

Diversity of
governance bodies
and employees

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 (suchas minority or vulnerable groups).
b. Percentage of employees per employee category
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 (suchas minority or vulnerable groups).

Ratio of basic salaryand remuneration of
women to men

a. Ratio of the basic salary and remuneration of
women to men for each employee category, by
significant locations of operation.
b. The definition used for ‘significant locations ofoperation’.

CR Report
P35 Work Safety & Well-being >Implementation System

405-1

405-2

CR Report
P77 LIXIL Group Human Resource
Performance Data > 1. Number of
Employees by Type of Employment−

GRI- 406: Non-discrimination

406-1

Incidents of
discrimination andcorrective actions
taken

GRI- 404: Training and Education

404-1

有価証券報告書 (Availabe in Japanese)
http://v4.eir-parts.net/v4Contents/View.
aspx?cat=yuho_pdf&sid=2687892
P47 5. 役員の状況

a. Total number of incidents of discrimination during
the reporting period.
b. Status of the incidents and actions taken withreference 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.

GRI- 407: Freedom of Association and Collective Bargaining

407-1

Operations andsuppliers in which
the right to freedomof association andcollective bargaining
may be at risk

a. Operations and suppliers in which workers’ rights
to exercise freedom of association or collective
bargaining may be violated or at significant risk
either in terms of:i. type of operation (such as manufacturing plant)
and supplier;ii. countries or geographic areas with operations
and suppliers considered at risk.
b. Measures taken by the organization in thereporting period intended to support rights toexercise freedom of association and collective
bargaining.

−

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LIXIL Group
Corporate
Responsibility Report 2018

Message

GRI- 408: Child LaborCR Management Structure andMaterial Issues Selection
Our Approach
Our People

408-1

Environment
Society
Customers & Supply Chain

Operations thathave been subject
to human rights
reviews or impact
assessments

a. Total number and percentage of operations thathave been subject to human rights reviews orhuman rights impact assessments, by country.

−

412-2

Employee training on
human rights policies
or procedures

a. Total number of hours in the reporting period
devoted to training on human rights policies orprocedures concerning aspects of human rightsthat are relevant to operations.
b. Percentage of employees trained during thereporting period in human rights policies orprocedures concerning aspects of human rightsthat are relevant to operations.

CR Report
P58 Human Rights > Implementationof Human Rights Principles learning
across the Group (%)

412-3

Significant investment
agreements andcontracts that include
human rights clausesor that underwent
human rights
screeninga. Total number and percentage of significant
investment agreements and contracts that include
human rights clauses or that underwent humanrights screening.
b. The definition used for ‘significant investment
agreements’.

−

413-1

Operations withlocal community
engagement, impact
assessments,
and development
programs

a. Percentage of operations with implemented local
community engagement, impact assessments,
and/or development programs, including the useof: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
and social impact assessments;
iv. local community development programs basedon local communities’ needs;
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.

CR Report
P64 Community > Local Community
Engagement

413-2

Operations withsignificant actual andpotential negative
impacts on local
communities

a. Operations with significant actual and potential
negative impacts on local communities, including:i. the location of the operations;ii. the significant actual and potential negative
impacts of operations.

−

412-1

−

GRI- 409: Forced or Compulsory Labor

Performance

Reporting

GRI- 412:Human Rights Assessment

a. Operations and suppliers considered to havesignificant risk for incidents of:i. child labor;
ii. young workers exposed to hazardous work.
b. Operations and suppliers considered to havesignificant risk for incidents of child labor either in
Operations andterms of:suppliers at significant
i. type of operation (such as manufacturing plant)
risk for incidents ofand supplier;child laborii. countries or geographic areas with operations
and suppliers considered at risk.
c. Measures taken by the organization in thereporting period intended to contribute to theeffective abolition of child labor.

409-1

Scope of Reporting
Global Reporting Initiative (GRI) Index

a. Operations and suppliers considered tohave significant risk for incidents of forced orcompulsory labor either in terms of:i. type of operation (such as manufacturing plant)
Operations andand supplier;suppliers at significant
ii. countries or geographic areas with operations
risk for incidents ofand suppliers considered at risk.
forced or compulsory
b. Measures taken by the organization in thelaborreporting period intended to contribute to theelimination of all forms of forced or compulsory
labor.

−

GRI- 413: Local Communities

GRI- 410: Security Practices

410-1

Security personnel
trained in humanrights policies orproceduresa. Percentage of security personnel who havereceived formal training in the organization's
human rights policies or specific procedures andtheir application to security.
b. Whether training requirements also apply to thirdparty organizations providing security personnel.

−

GRI- 411: Rights of Indigenous Peoples

411-1

Incidents of violations
involving rights ofindigenous peoples

a. Total number of identified incidents of violations
involving the rights of indigenous peoples during
the reporting period.
b. Status of the incidents and actions taken withreference 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.

LIXIL Group Corporate Responsibility Report 2018

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LIXIL Group
Corporate
Responsibility Report 2018

Message
CR Management Structure andMaterial Issues Selection

GRI- 414: Supplier Social Assessment

414-1

New suppliers thatwere screened usingsocial criteriaa. Percentage of new suppliers that were screenedusing social criteria.

Negative social
impacts in the supply
chain and actions
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 with which improvements were agreed
upon as a result of assessment.
e. Percentage of suppliers identified as having
significant actual and potential negative social
impacts with which relationships were terminatedas a result of assessment, and why.

Our Approach
Our People
Environment
Society414-2

Customers & Supply Chain
Performance

Reporting

417-1

415-1

Political contributions

a. Total monetary value of financial and in-kindpolitical contributions made directly and indirectlyby the organization by country and recipient/beneficiary.
b. If applicable, how the monetary value of in-kind
contributions was estimated.

Requirements for
product and service
information andlabeling

a. Whether each of the following types of informationis required by the organization's procedures for
product and service information and labeling:i. The sourcing of components of the product orservice;ii. Content, particularly with regard to substancesthat might produce an environmental or social
impact;iii. Safe use of the product or service;
iv. Disposal of the product and environmental orsocial impacts;
v. Other (explain).
b. Percentage of significant product or service
categories covered by and assessed for compliancewith such procedures.

Websiteビジネス情報TOP＞法規法令・各種
制度＞法令・制度関連＞環境配慮設
計・エコ商品http://www.biz-lixil.com/service/law/
eco_products/index.html#lixTmplSectionBlock02 (Japanese only)

Incidents of noncomplianceconcerning productand service
information andlabeling

a. Total number of incidents of non-compliance withregulations and/or voluntary codes concerning
product and service information and labeling, 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 noncompliance with regulations and/or voluntary
codes, a brief statement of this fact is sufficient.

−

Incidents of noncomplianceconcerning marketing
communications

a. Total number of incidents of non-compliance withregulations and/or voluntary codes concerningmarketing communications, including advertising,promotion, and sponsorship, 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 noncompliance with regulations and/or voluntary
codes, a brief statement of this fact is sufficient.

−−

GRI- 415: Public Policy

Scope of Reporting
Global Reporting Initiative (GRI) Index

GRI- 417: Marketing and Labeling
CR Report
P68 Responsible Supply Chain
Management > Responsible
Procurement Surveys
and Follow-up Action

417-2
CR Report
P61 Relationship with stakeholders >Government, industrial association

GRI- 416: Customer Health and Safety

416-1

Assessment of thea. Percentage of significant product and service
health and safety
categories for which health and safety impacts are
impacts of productassessed for improvement.
and service categories

416-2

a. Total number of incidents of non-compliance withregulations and/or voluntary codes concerning thehealth and safety impacts of products and services
within the reporting period, 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 noncompliance with regulations and/or voluntary
codes, a brief statement of this fact is sufficient.

Incidents of noncomplianceconcerning the healthand safety impacts ofproducts and services

CR Report
P70 Product Safety & Quality >Enhancing Quality Across Entire
Product Lifecycle
417-3

CR Report
P71 Product Safety & Quality >Responding to Serious Productrelated
Accidents > Number of legal
infringements and significant productrelated accidents

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Reporting > Global Reporting Initiative (GRI) Index

LIXIL Group
Corporate
Responsibility Report 2018

Message

GRI- 418: Customer Privacy

CR Management Structure andMaterial Issues Selection
Our Approach

418-1

Our People

Substantiatedcomplaints
concerning breachesof customer privacy
and losses ofcustomer data

Environmenta. Total number of substantiated complaints received
concerning breaches of customer privacy,
categorized by:i. complaints received from outside parties andsubstantiated by the organization;ii. complaints from regulatory bodies.
−b. Total number of identified leaks, thefts, or lossesof customer data.
c. If the organization has not identified any
substantiated complaints, a brief statement of thisfact is sufficient.

GRI- 419: Socioeconomic ComplianceSociety
Customers & Supply Chain
Performance

Reporting
Scope of Reporting
Global Reporting Initiative (GRI) Index

419-1

Non-compliance withlaws and regulationsin the social andeconomic areaa. Significant fines and non-monetary sanctions for
non-compliance with laws and/or regulationsin the social and economic area in terms of:i. total monetary value of significant fines;
ii. total number of non-monetary sanctions;iii. cases brought through dispute resolution
mechanisms.
b. If the organization has not identified any noncompliance with laws and/or regulations, a brief
statement of this fact is sufficient.
c. The context against which significant fines andnon-monetary sanctions were incurred.

Annual Report
P41 List of LIXIL's Material Issues,
Targets, and KPIs > Fair Business
Practices > FYE2018 Review >Compliance violations across theGroup

LIXIL Group Corporate Responsibility Report 2018

107

LIXIL Group Corporation
36F, Kasumigaseki Building, 3-2-5, Kasumigaseki,
Chiyoda-ku, Tokyo 100-6036, Japanwww.lixil.com