LIXIL GROUPCORPORATE RESPONSIBILITYREPORT 2020

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action PlanINDEX
CONTENTS

Index

Commitment3

Our People

32

Society76- Message from the CEO

4

- Diversity & Equal Opportunity

34- Human Rights

78- Message from CR Committee Chairperson

6- Rewarding Workplaces

39- Stakeholder Engagement

83- Combatting COVID-19, Forging the New Normal

8- Talent Development

42- Community88- Supporting International Initiatives

10- Occupational Health & Safety

45- LIXIL CORE & Behaviors

12

CR Management Structure &Material Issues Selection

13- CR Management Structure

14- Material Issues

15- Corporate Responsibility Strategy

16

Three Strategic Pillars

17- Global Sanitation & Hygiene

18- Water Conservation & Environmental Sustainability

24- Diversity & Inclusion

27● Corporate GovernanceSee the Corporate Governance section on the LIXIL Group Corporation
website (http://www.lixil.com/) for information on the Corporate
Governance Framework, the Group Management Philosophy, Group
Charter of Corporate Behavior and Internal Control Systems.

External Evaluations & Action Plan

93

Environment49- External Evaluations & Awards

94- Environmental Management System

51- Action Plan & KPIs

96- Climate Change Mitigation and Adaptation

55- Scope of Reporting105- Sustainable Water Use58

- Independent Practitioner’s Assurance Report

106- Sustainable Use of Resources

61- Management of Chemical Substances

63

Customers & Supply Chain

64

Supplementary
Publication:
Databook- Responsible Supply Chain Management

66- Human Resource Performance Data

3- Product Safety & Quality

69- Environmental Performance Data

6- Customer Satisfaction

73- Independent Practitioner’s Assurance Report

12- GRI Index

13- TCFD Index

30

Reporting Period
FYE 2020 (April 1, 2019 to March 31, 2020)

PDF

S upplementary Publication:
Databook (581KB)

Applicable Organizations
CR activities of LIXIL Group Corporation, as well as LIXIL
Corporation and other consolidated subsidiaries are coveredin the report. The scope is provided in footnotes for mattersthat have narrower coverage.

LIXIL Group Corporate Responsibility Report 20202

Commitment

01

COMMITMENTManagement & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan

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

Commitment
Message from the CEO
Message fromCR Committee Chairperson
Combatting COVID-19
Supporting International Initiatives
LIXIL CORE and Behaviors

LIXIL Group Corporate Responsibility Report 20203

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Management & Material Issues

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Environment

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External Evaluation & Action Plan
Commitment > Message from the CEO

01

MESSAGE FROM THE CEOCOMMITMENT
LIXIL’s higher purpose as a company is to make better

Commitment

Concerning Global Sanitation & Hygiene, until now, LIXIL

that fulfilling this corporate mission leads to further growthhas been tackling the challenge through the developmentof our business as well as contributing to society and theand roll-out of its affordable SATO Toilet Systems to areas

communities we serve.

without sewers. However, the global COVID-19 pandemic

In FYE 2020, we accelerated our transformation,

Message from the CEO
Message fromCR Committee Chairperson

contributing to society and communities through our business.

homes a reality for everyone, everywhere. I firmly believe

has highlighted the critical need for people to wash theirstrengthening governance while simplifying thehands to prevent infection, together with the grave reality

organizational structure to enable swift decision-making inthat a large proportion of the world’s population does not

the rapidly changing business environment in Japan andhave access to sanitary handwashing facilities. As a swift

Combatting COVID-19

around the world. We also reviewed our business portfolio

response to protect the lives of many, LIXIL developed theSupporting International Initiatives

to focus on our water and housing technology businesses,

SATO Tap, a handwashing solution for households without

our core areas of expertise. In addition, we have built aaccess to running water. This affordable innovation is

structure that maximizes cross-regional synergies throughout

designed to ensure low contact, thereby reducing the spreadbusinesses and brands and accelerates strategic innovationsof disease, while minimizing water use. We are committed to

to expand the scale of our business and technologicalfacilitating sustained handwashing practices and improved

capabilities.

hygiene through its roll-out.

LIXIL CORE and Behaviors

Kinya Seto
Director, Representative Executive Officer,
Executive Officer and President, and CEO,LIXIL Group Corporation

In 2019, LIXIL was included for the first time in the

We are also pushing ahead in our collaborations with

Dow Jones Sustainability World Index (DJSI World), anvarious partners on sanitation and hygiene, including theindication that we have been recognized globally as aJapan International Cooperation Agency (JICA). Our Make acompany that focuses on sustainability as a part of theSplash! partnership with UNICEF is expanding its activities

overall business strategy. We are proud of this recognition

and will include promoting handwashing practices going

and are committed to improving our performance further

forward. We are excited that these activities with UNICEF

and continue contributing to achieving the United Nations

have the potential for LIXIL to make a substantial impact in(UN) Sustainable Development Goals (SDGs) by 2030 while

establishing the sanitary market in developing countries andsupporting the everyday lives of people around the world

will also be a meaningful collaboration for us in developing

through our products.

our business.

Regarding Corporate Responsibility (CR) activities, we

In the field of Water Conservation & Environmental

announced new goals for our three strategic pillars and have

Sustainability, we achieved our carbon intensity target

continued to strengthen the execution of our CR strategy oflast year, two years ahead of plan, and set our new

LIXIL Group Corporate Responsibility Report 20204

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Management & Material Issues

Strategic Pillars

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Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Commitment > Message from the CEO

01

COMMITMENT

Commitment
Message from the CEO
Message fromCR Committee Chairperson
Combatting COVID-19
Supporting International Initiatives
LIXIL CORE and Behaviors

Environmental Vision 2050, pursuing a net-zero carbon

prevent infection. The growing interest in environmental

footprint by 2050 in alignment with the Paris Agreement. We

sustainability and diversity around the world is also

are committed to further reducing our business activities’

impacting the role “the home” plays in people’s lives. New

environmental impact and accelerating measures to help

needs are emerging, such as desires to make the home

the world transition to a circular economy by providing eco-

eco-friendly, comfortable to live in with family members, as wellfriendly products and services. Leveraging its strength as

as a pleasant work environment. We believe that accelerating

a global leader in water conservation, resource circulation,user-centric innovations and creating further value by

and filtering technologies, LIXIL will continue to set highresponding to these new needs will lead to the sustainable

standards globally and elevate the environmental value ofgrowth of our business and contribution to society.

water among our employees and external stakeholders.

At LIXIL, we are ever more committed to supporting our

The execution of business strategies rests with ourcustomers and contributing to society. With our responsibility

employees. At LIXIL, we believe that the breadth ofas a corporate citizen always at the top of our minds, we willknowledge and different perspectives that employees ofcontinue to pursue swift implementation of our CR strategy

diverse backgrounds offer are the driving forces of growthwith a renewed sense of urgency.

and innovation. We also believe that an organization in which
each and every employee has a high sense of purpose leads
to sustainable growth. To revitalize our business in Japan, weare actively implementing a new HR program and initiatives
to transform into an organization based on meritocracy thatallows employees to exert their full potential. Furthermore,
we are implementing a global Diversity & Inclusion strategy,
which comprises fostering an environment where individuals
can play to their strengths and measures to attract andretain diverse talent, to build a diverse, inclusive culture
among all employees.
The spread of COVID-19 from the start of the year has
forced people worldwide to adapt to the “new normal.”Lives have changed rapidly and significantly, as workfrom-home became the norm due to travel restrictions to

LIXIL Group Corporate Responsibility Report 20205Commitment

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Commitment > Message from CR Committee Chairperson

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MESSAGE FROM CR COMMITTEE CHAIRPERSONCOMMITMENT

Commitment
Message from the CEO
Message fromCR Committee Chairperson

At LIXIL, we have completed another year of solid progress

LIXIL has committed USD 1 million to expedite the spreadin our Corporate Responsibility (CR) activities. As we striveof handwashing practices through this innovation and isto achieve our purpose to make better homes a reality

working proactively with both private and public sector

for everyone, everywhere, I am pleased to see that ourpartners, such as UNICEF, to bring this much-needed

commitment to improving society through our corporate

innovation to communities in need.

activities is building further pride among our employees andSince launching the Make a Splash! partnership witha deeper connection with business stakeholders. We believe

UNICEF to improve sanitation and hygiene in the developing

such progress is vital for the organization’s sustainable growth.

countries, we are making progress in accelerating advocacy

LIXIL’s CR activities have continued to gain global

and forming toilet markets to develop a sustainable

Combatting COVID-19

recognition, including a listing in the Dow Jones

sanitary environment in Kenya, Ethiopia, and Tanzania, in

Supporting International Initiatives

Sustainability World Index for the first time in 2019. We

collaboration with local governments. In FYE 2020, JPY 10

are honored to be recognized as a global sustainability

million from employees’ donation program Team Splash!

leader. This recognition only redoubles our commitment toand JPY 26 million raised from the 3rd annual Toilets for All

enhancing our performance. Reflecting the progress madecause-related marketing campaign in Japan contributed

so far and the changing business environment, we set new

to these efforts. Similar campaigns are now underway

goals for our three CR strategic pillars in FYE 2020.

worldwide to support LIXIL’s efforts to help improve global

LIXIL CORE and Behaviors

Concerning Global Sanitation & Hygiene, our award-

Jin Song Montesano
Director, Executive Officer and Senior
Managing Director, Human Resourcesand General Affairs, Public Affairs,
Investor Relations, External Affairs,
and Corporate Responsibility,
and Chief People Officer (CPO)

sanitation and hygiene.

winning social business SATO has helped change the lives

LIXIL is strengthening its partnerships with variousof 18.6 million people in over 38 countries thus far. We haveorganizations. Last year, we signed a memorandum of

made significant progress by expanding our reach to overunderstanding for collaboration with the Japan International

10 countries within a year. We have extended our timeline

Cooperation Agency (JICA) to improve sanitation and accessto achieve our original target of improving sanitation for 100

to clean water in developing economies. We are continuing

million people worldwide to 2025. Armed with the knowledge

to expand the network of support and cooperation including

we have acquired thus far, we are more determined thanemployees, end-users, and business partners around theever to meet the new target.

world to help solve global sanitation and hygiene challenges.

In addition, as a response to the global COVID-19

In the area of Water Conservation & Environmental

pandemic, we launched a new product in June 2020

Sustainability, we accomplished the carbon intensity

called SATO Tap, an affordable handwashing solution fortarget we set in 2016 two years ahead of plan. Our new

households in the regions in which SATO business operates.

Environmental Vision 2050 aims to achieve net-zero carbon

LIXIL Group Corporate Responsibility Report 20206Commitment

Management & Material Issues

Strategic Pillars

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Environment

Customers & Supply Chain

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Commitment > Message from CR Committee Chairperson

01

COMMITMENT

Commitment
Message from the CEO
Message fromCR Committee Chairperson

emissions from housing and lifestyle solutions, as well as

locking and unlocking, as well as automatic opening

participation numbers double from the previous year to over

our business operations, by 2050. In addition, we strive toand closing of existing entrance doors, with a single

15,000 employees across 33 countries.

become a leader in the field of preserving water and limited

remote control. This device provides support to people in

The unprecedented spread of the COVID-19 has made us

resources for future generations.

wheelchairs and the elderly by making it easier when going

think about ways to continue our business and contribute to

In Germany, GROHE converted all its production plants

in and out or answering the door. We have also presented asociety while putting our employees’ health and safety first.

to run on green electricity in July 2019, which has led toprototype of an AI toilet that uses image sensing technology

Across the globe, people have been forced to change how they

being awarded a top ranking at the German Sustainability

to check the health of the elderly, and will continue tolive and work; I believe LIXIL’s role in making better homes aAward. In Japan, we participated in the Ministry of thedevelop products and services that help enhance people’s

reality has grown even more critical in the “new normal.”Environment’s Practical Guide for Scenario Analysis in line

everyday lives.

LIXIL’s employees adapted swiftly to these changes

Combatting COVID-19

with the TCFD Recommendations, using LIXIL Housing

Supporting International Initiatives

Technology’s sash door and ZEH as examples and are

we formed new Global Diversity & Inclusion (D&I)

communities, such as setting up handwashing stands inalso continuing our shift to 100% renewable energy in our

department in September 2019 to implement unified D&I

hospital lobbies in Vietnam and creating and distributing

business centers. Furthermore, in response to the growing

strategies and measures across the organization. We haveface masks to medical personnel in North America andconcerns of social issues related to plastics, we formulated

since newly established D&I Committee, chaired by CEO

Mexico. We even had an employee lend their camper van

the Plastic Action Statement to clarify our direction.

Kinya Seto, to ensure concrete D&I actions are driven by

to a local hospital so frontline workers could have a place

Reflecting our leadership in water stewardship, LIXIL has

our most senior business leaders and executive officers.

to shower and rest outside of the hospital. Employees

been named in the CDP’s prestigious Water A List for theAlso, amid the worldwide protests against social and racial

are sharing information on their initiatives and sparking

second consecutive year.

injustice, we issued our D&I Statement, presenting the steps

collaborations across regions and geographies, and creating

LIXIL CORE and Behaviors

To foster a more inclusive environment in the company,

and engaged in numerous organic activities to help their

Regarding Diversity & Inclusion, we have committed

we will take to building a society free of discrimination andnew activities via our internal social media platform. I am

to ensuring all of our products and services are based oninequality. In recognition of our D&I initiatives, LIXIL has

confident these employee-led activities will be the driving

our Universal Design concept by 2030.* Our Resilienceagain been selected as a Nadeshiko Brand this year (which

force for new innovations, and that the collaboration

Toilet, which operates on a minimal amount of water duringhighlights Japanese corporations that actively promote women’s

happening amongst employees across countries and regions

emergencies, won the Japan Resilience Award 2019. We

employment and advancement) and has also been awarded

will make us a stronger and more vital company.

also established the Alternative Toilet designed to pursue anGold in the PRIDE Index for the third consecutive year.

In the current world where significant changes areinclusive facility that transcends the conventional boundaries

Pride in LIXIL’s commitment to a more sustainable

needed, we are committed to paving the way to tackle

created by gender, disabilities, age, and other differences insociety is felt throughout the company by employees andsocial challenges in collaboration with various stakeholders,

our headquarter building.

continues to grow. In FYE 2020, LIXIL Community Day, held

including our employees, customers, international

In September 2020, LIXIL began selling a retrofittableelectric door opener system called DOAC, which allows

annually across the organization for employees to contributeorganizations, and business partners.

to their local communities at their own initiative, saw the* Applicable for products and services provided in Japan

LIXIL Group Corporate Responsibility Report 20207

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Environment

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External Evaluation & Action Plan
Commitment > Combatting COVID-19

01

COMMITMENT

Commitment
Message from the CEO
Message fromCR Committee Chairperson
Combatting COVID-19

COMBATTING COVID-19, FORGING THE NEW NORMALAs a company that prides ourselves on supporting sanitary

To help fulfill one of our three strategic pillars: Global

environments and healthy living, the LIXIL Group was quick

Sanitation & Hygiene, LIXIL will invest approximately JPY

to establish a global team to help combat the COVID-19

100 million in encouraging the broader use of hand-pandemic and put various countermeasures in place towashing solutions, and we are working with UNICEF andprotect our customers, employees, and local communities.

other organizations to help prevent the spread of COVID-19

We are also pursuing initiatives that encourage the ongoing

through initiatives that advocate hand-washing and othertransformation in working styles, digitalization, productsanitary practices.

• We have built up online showroom-style customer service
and sales activities via computer, smartphone, or otherdigital tools.
• To boost our emergency response capabilities, we havebeen building a more decentralized production basedevelopment, and globalization in order to help shape ourspreading over multiple production sites. Then, in April

new normal post-COVID world.

2020, we launched a new system to promote greater
cooperation by unifying our global production system andDeveloping SATO Tap as a New Solution

supply chain.
• To prepare for the new normal, we are seeking to strengthen

Supporting International Initiatives
LIXIL CORE and Behaviors

Protecting the Safety of our Customers

Hand-washing is an effective way of preventing the spreadour range of touchless toilets, faucets, and IoT-drivenof COVID-19. However, this can be problematic primarily for

products. We are also focusing on the development ofdeveloping countries that do not have sufficient access to

products with superior ventilation capabilities and solutions

water or soap, sufficient hand-washing facilities, or an ingrained

designed to satisfy people choosing to work from home.

hand-washing culture. According to UNICEF, three billion• We issued informative advice on how to ventilate homes, etc.

people, or 40% of the world’s population, do not have basic
hand-washing facilities in the home, and that number canbe as high as 75% in the world’s least developed countries.
Our recently developed SATO Tap handwashingstation can generate a stable but frugal flow with minimal
water using water contained in a PET bottle and gravity.
To facilitate use in developing countries and other
underprivileged regions, we designed a handwashing stationthat can use PET bottles of various shapes and sizes and is

SATO Tap hand-washing solution using PET bottles

simple to design and manufacture with only two plastic parts
to keep both costs and prices low. We are scheduled to start
production of the SATO Tap in India and intend to expand
production into Africa as well in the future.

Navish hands-free faucet

LIXIL Group Corporate Responsibility Report 20208

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External Evaluation & Action Plan
Commitment > Combatting COVID-19

01

COMMITMENT

Commitment
Message from the CEO
Message fromCR Committee Chairperson

Protecting the Safety of our Employees

Protecting the Safety of our Communities• We were able to shift smoothly to telecommuting thanks• Employee volunteering: Anti-COVID-19 measures and new

to the solid digital technology base that we have been

product development:

gradually introducing for some time. That digital base also

A group of employee volunteers who wanted to help

enables us to hold town hall meetings with managers andprevent the spread of COVID-19 launched a virtual

employees all over the world and conduct online training.

working group to share and implement various ideas.

• To help forge a new normal, we are using digital tools toshields made using 3D printing technology to healthpromote even better internal communication.

workers and donating sanitizer, soap, and other items to• At manufacturing sites, we introduced a flexible shift

Combatting COVID-19

system, created a scheme that enables people toSupporting International Initiatives

commute without using public transport, and further

LIXIL CORE and Behaviors

The projects included donating medical masks and faceprogress our flextime and telecommuting systems and tostrengthened hygiene management.
• We gave all employees inside and outside Japan a one-off
COVID-19 benefit of JPY 50,000 or equivalent.
• Within Japan, we distributed masks made from curtain

local communities. They are also seeking to develop new
products using LIXIL technology.
• We are helping to prevent the spread of COVID-19 by
installing more of our SATO Toilet Systems for developing
countries and accompanying hand-washing facilities
in order to improve sanitation and encourage morewidespread hand-washing.

fabric remnants to employees, and provided digitalteaching materials on sanitation and hygiene issues tohelp support employees who have children.

Digital teaching materials on sanitation and hygiene issues for employees with children

Employee volunteers worldwide create and donate sanitary products

LIXIL Group Corporate Responsibility Report 20209Commitment

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External Evaluation & Action Plan
Commitment > Supporting International Initiatives

01

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

The UNGC 10 Principles

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

Commitment

HUMAN
RIGHTS

Message fromCR Committee Chairperson

Principle 3: Businessesshould uphold the freedom of association and the effective recognition of the right

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

to collective bargaining;

LABOUR

Principle 4: the elimination of all forms of forced and compulsory labour;of pioneering water and housing products. We will continue

Principle 5: the effective abolition of child labour; andto support and implement the Ten Principles of the United

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

Combatting COVID-19

Nations Global Compact (UNGC), and provide our expertise

Supporting International Initiatives

in areas of sanitation to help create safe and healthy living

LIXIL CORE and Behaviors

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

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

Message from the CEO

Principle 1: B usinesses should support and respect the protection of internationally proclaimed human rights; andspaces for all, as envisioned in the Sustainable Development

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

ENVIRONMENT

Commitment to the UN Global Compact

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

Goals (SDGs).
ANTICORRUPTION

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

The LIXIL Group signed the UNGC in July 2013 in full
support of the principles set out in the framework.
In order to help implement the UNGC Ten Principles in

The UNGC was proposed in 1999 by then Secretary-General Kofi Annan to

the four areas of human rights, labour, environment, andencourage companies and other organizations to pursue voluntary actions

anti-corruption, we became a member of some Global

to promote sustainable growth as good social citizens.

Compact Network Japan working groups (environmental
management, ESG, reporting, human rights due diligence,and human rights education) in FYE 2020, and begansharing information.
WEB

United Nations Global Compact

LIXIL Group Corporate Responsibility Report 202010

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External Evaluation & Action Plan
Commitment > Supporting International Initiatives

01

COMMITMENT

Sustainable Development Goals

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

The LIXIL Group reflects the SDGs approach in its corporate
responsibility strategy and uses the goals as a major

Commitment
Message from the CEO
Message fromCR Committee Chairperson
Combatting COVID-19

Global Sanitation & Hygiene

In March 2019, the LIXIL Group announced its support

guideline when forming management decisions. The

for the Task force on Climate-related Financial Disclosures

SDGs are a set of concrete action plans outlined in the(TCFD). In FYE 2020, we participated in the newly

Transforming our world: the 2030 Agenda for Sustainableestablished TCFD Consortium in Japan. We also pursued

Development, outcome-oriented document adopted by theproactive scenario analysis under the support program

UN General Assembly in September 2015, consisting of 17

provided by Japan’s Ministry of the Environment to help

global goals and 169 targets to be achieved for sustainable

companies perform scenario analysis of climate-related

development. The LIXIL Group will continue to contribute toachieving the SDGs through its business operations.

Water Conservation &Environmental Sustainability

business risks and opportunities in line with TCFD
recommendations. Going forward, we will strive to reflect
the results of the analysis in our management strategy andSupporting International Initiatives
LIXIL CORE and Behaviors

Endorsing the Task Force on ClimateRelated Financial Disclosures

CR

Three Strategic Pillars (P16)

PDF

Details about our winning at the 2nd Japan SDGs Awards

WEB

UN Sustainable Development Goals

enhance our information disclosure.
CR

Environmental Disclosures (P53)

Diversity & Inclusion

LIXIL Group Corporate Responsibility Report 202011

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Environment

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External Evaluation & Action Plan
Commitment > LIXIL CORE & Behaviors

01

COMMITMENT

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

LIXIL CORE PHILOSOPHY
Commitment
Message from the CEO

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

Message fromCR Committee Chairperson
Combatting COVID-19

LIXIL Behaviors

Supporting International Initiatives
LIXIL CORE & Behaviors

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

CR

Improving Understanding of LIXIL Behaviors (P40)

LIXIL Group Corporate Responsibility Report 202012Commitment

02

CR MANAGEMENTSTRUCTURE &MATERIAL ISSUESSELECTIONManagement & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan

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

CR Management Structure &Material Issues Selection
CR Management Structure
Material Issues
CR Strategy

LIXIL Group Corporate Responsibility Report 202013

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

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External Evaluation & Action Plan

CR Management Structure & Material Issues Selection > CR Management Structure

02

CR MANAGEMENTSTRUCTURE &MATERIAL ISSUESSELECTION
CR Management Structure &Material Issues Selection

CR MANAGEMENT STRUCTURE
LIXIL Group’s Corporate Responsibility (CR) Committee wasManagement leadership and coordination with the

The executive officers responsible for CR swiftly report

established to align with the technology business operating

technology businesses is critical to achieve prompt andthe results of CR Committee discussions and deliberations

model introduced in April 2015. The CR Committee meets

appropriate action. Accordingly, the CR Committee consists

to other executive officers and directors of the LIXL Group,

quarterly and works to ensure swifter action in response toof executive officers from corporate functions, including

enabling necessary decisions to be made. The executive

economic, environmental, and social sustainability issues.

Human Resources, Legal, Finance, Quality, Environment,

officers, who are in charge of promoting CR initiatives,

In FYE 2020, the committee discussed and determined new

R&D, Marketing, and Public Affairs/Investor Relations/

immediately indicate and communicate decisions made in

CR strategy, key human rights issues, and TCFD response.

External Affairs/Corporate Responsibility, and representatives

the CR Committee to their respective functions to facilitatefrom each technology business.

speedy, concrete action.

CR Management Structure
Material Issues
Decision-making bodies
LIXIL Group Board of Directors
LIXIL Group executive officers

CR Strategy

CR Committee(Chaired by Chief Public Affairs Officer)(Meets quarterly)

Human
Resources

Legal

PA/IR/EA/CR*

FinanceTechnology/Quality/Environment

Officers in charge

R&D

MarketingTechnology Businesses

LIXIL Water Technology representative
LIXIL Housing Technology representative

As of March 31, 2020
* Public Affairs/Investor Relations/External Affairs/Corporate Responsibility

LIXIL Group Corporate Responsibility Report 202014

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CR Management Structure & Material Issues Selection > Material Issues

02

CR MANAGEMENTSTRUCTURE &MATERIAL ISSUESSELECTION

MATERIAL ISSUESIn FYE 2016, the LIXIL Group identified the issues that

LIXIL Group’s Material Issues

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

Category

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

CR Management Structure &Material Issues Selection

results of our activities on our website. Going forward, we will

Governancecontinuously review these issues to reflect changes in the

Material issues*

Background and reason

Corporate governanceCompliance
Risk management
Information security
Taxation strategy
Intellectual property strategy

As a company that operates globally, maintaining strong corporate governance practices iscritically important to LIXIL. Our shareholders are also becoming more interested in corporate
governance, with the adoption of Japan’s Corporate Governance Code in 2015. While
expanding our global reach, our corporate governance was put to the test in 2015, when we
discovered accounting irregularities at an overseas subsidiary. To prevent recurrence of suchan incident and solidify our operating foundation, we must further advance our efforts tostrengthen our corporate governance, compliance, and risk management systems.

Anti-corruption
Transparent political relations
Fair business

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

Human rights due diligence

In accordance with the United Nations (UN) Guiding Principles on Business and Human
Rights, which clarifies the responsibility of companies to uphold human rights, it is becomingof greater importance for us to protect and respect human rights both within the LIXIL Groupand across our entire sphere of business influence.

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

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

Product safety
Customer satisfaction

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

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

The adoption of the Paris Agreement by 196 parties to combat climate change has set a clear direction
towards decarbonization. Global water shortage is also an increasingly serious issue. The LIXILGroup needs to do more to conserve water, energy, and other natural resources across the entire value
chain, from procurement through production, distribution, end use, and product disposal.

Supply chain management

Stakeholders have a growing interest in responsible supplier management as the world seeks todevelop international standards on sustainable procurement. The LIXIL Group’s manufacturing
footprint extends across Japan and other parts of Asia, Europe, North and South America, and the
Middle East, and we need to enhance supplier management in an even more responsible manner.

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

The adoption of the UN Sustainable Development Goals (SDGs) has inspired people,
companies, and other organizations to help solve social issues. As a maker of pioneering
water and housing products, we need to cooperate with stakeholders, and focus more on R&D
designed to help resolve social issues, such as aging, hygiene, and environmental issues.

environment surrounding the LIXIL Group.
Fair businesspractices

CR Management Structure
Material Issues* Compiled FYE 2016
* Highlights issues that require focused priority action

LIXIL Group’s Material Issues Selection Process
HumanrightsCR Strategy

Selection

Assessment

Issues were selected considering:
1) Global trends;2) Relevance to the industries to which the LIXILGroup belongs; and3) Expectations of our stakeholders (customers,
shareholders, business partners such as
suppliers, non-governmental organizations, etc.)
The level of impact of each selected issue wasassessed considering:1) The Group’s medium- to long-term business
operations and opportunities; and
2) The viewpoints of our stakeholders.

Labor
practice

Quality andcustomersatisfaction

Environment

Validation
and approval

Material issues were validated by officers from eachcorporate function, and the CR Committee approved
the final list of material issues.

LIXIL Group’s Material Issues

Supply chain

Stakeholder
engagement

LIXIL Group Corporate Responsibility Report 202015

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan

CR Management Structure & Material Issues Selection > CR Strategy

02

CR MANAGEMENTSTRUCTURE &MATERIAL ISSUESSELECTION

CORPORATE RESPONSIBILITY STRATEGYThe LIXIL Group believes that people’s living spaces — thedelivering safe and comfortable products and services throughenvironment where they live, work, and play — are criticalresponsible and sustainable innovations. We leverage ourto their daily lives and well-being. As a result, we arescale and expertise to pursue initiatives focused on ourcommitted to ensuring that any growth in our businesses

three strategic pillars, which cover global issues that require

contributes to improving the quality of people’s lives byurgent action and are closely linked to our field of business.

CR Management Structure &Material Issues Selection

About LIXIL Vision for Sustainable Living
PDF

Details (137KB)

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

CR Management Structure
Material Issues

Global Sanitation & Hygiene

CR Strategy

Promote and enable access to safe andhygienic sanitation practices, especially for women and girls, while
preventing the harmful transmission of diseases for children

Water Conservation &Environmental Sustainability

Diversity & Inclusion

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

Leverage the knowledge and perspectives of a diverse workforce asa key driver of growth and innovation, and improve quality of life
for all people through our products and services, irrespective of
their age, gender, and the level of disability

Sanitation for All

Zero Carbon and Circular Living

Inclusive for All

By 2025, improve the livelihood of 100 million people through sanitationand hygiene initiatives

By 2050, achieve net-zero carbon emissions from housing and lifestylesolutions as well as operations, and become a leading company based ona model that preserves water and natural resources for future generations

By 2020, establish the culture of diversity and inclusion within ourorganization and among all employees
By 2030, ensure all products and services* are based on LIXIL’s
Universal Design concept• Promote research and development of products that actively contributeto resolving sanitation issues• Expand and ensure self-sustainability of businesses that improve
sanitation in developing economies around the world• Foster a range of initiatives to tackle global sanitation and hygiene
issues across LIXIL's global business units• Design products and services with consideration to lifecycle impacts
and environmental efficiencies, and increase the sales share of thisproduct portfolio• Lower its environmental impact through efficient energy usage andadoption of recyclable energy to minimize carbon emission, realize
higher water usage efficiencies, and resource circulation throughout allof its business operations• Implement internal diversity initiatives around the world• Promote the development of universal design products and services
that are "Good for one, Good for all, Good for a lifetime"* Scope: Products and services in Japan (as of August 2019)

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

Human Rights

Labor Practices

Enhance LIXIL’s
governance to maximize
our corporate value

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

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

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

Quality andCustomer Satisfaction
Strengthen relationships
with customers through our
products and services

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

Stakeholder
Engagement
Proactively engage with
LIXIL’s key stakeholders

LIXIL Group Corporate Responsibility Report 202016

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03
THREE
STRATEGIC PILLARSManagement & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan

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

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

LIXIL Group Corporate Responsibility Report 202017

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action PlanThree Strategic Pillars > Global Sanitation & Hygiene

03
THREE
STRATEGIC PILLARS
Three Strategic Pillars

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

Highlight
Social Issue

People living
without a toilet

2

670 million
people(1 in 4)
● Global Sanitation & Hygiene● Water Conservation &Environmental Sustainability● Diversity & Inclusion

ProgressThose regularly
defecate outdoors

billionpeople

3.8 million units of SATO products to date

TargetShipped

Sanitation for All

Shipped to more than

38 countries

By 2025, improve the livelihood of 100 million
people through sanitation and hygiene initiatives

Improved the lives of

18.6 million people

Our Journey
Set up the Social Sanitation Initiatives organization(now the SATO Business division), which focuses onsanitation solutions

2016

2017

Launched Make a Splash! global partnershipwith UNICEF

2018

2019

Target:Improve thelives of
100 million
people2025
Revised target

Analyzed socioeconomic
losses from poor sanitation
Launched our Toilets for All project

Bangladesh SATO operation
moved into the black

LIXIL Group Corporate Responsibility Report 202018

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action PlanThree Strategic Pillars > Global Sanitation & Hygiene

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

Background

The impact of the sanitation crisis is felt throughout entire
nations and regions, crippling opportunities for growth andOur Approach & Strategy

An estimated two billion people — about one-quarter of thedevelopment. In 2015, global economic losses from poor

The LIXIL Group continues to strive towards the target ofglobal population — live without access to safe, sanitarysanitation were estimated at USD 223 billion.* Among theimproving the sanitary environments of 100 million people,

toilets. Among them, approximately 670 million people still

United Nations (UN) Sustainable Development Goals (SDGs)

but we have pushed out our target date from 2020 to 2025.

regularly defecate in the open. These figures come with afor 2030, Target 6.2 seeks to “achieve access to adequate

We hope that accelerating cooperation with various partners

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

to help expand our business will also help improve people’s

five die from diarrheal diseases caused by unsanitary living

defecation, paying special attention to the needs of womensanitary environments and quality of life.

conditions.

and girls and those in vulnerable situations.” This highlights

A lack of safe, clean toilets poses particular dangers for

Sanitation problems vary by region, depending on thethe need for collaboration between governments, non-availability of water resources, the level of urbanization,

women and children. There are countless cases of women

governmental organizations (NGOs), private companies, andand access to toilet facilities. The LIXIL Group’s Satoor children being sexually assaulted while trying to findvarious other sectors in tackling sanitation issues.

Business division is the primary driver of R&D and businesssomewhere private to relieve themselves. Sanitation issues
also contribute to the gender gap in education — the lack ofsanitary school toilets has been identified as a reason why
girls who have started menstruating feel they are no longer
able to attend classes.

operations tailored to the characteristics and needs of* According to “The True Cost of Poor Sanitation,” a 2016 survey
conducted by Oxford Economics, international NGO WaterAid, and the
LIXIL Group.

WEB

individual markets, including infrastructure, income levels,and environmental restrictions.

The True Cost of Poor Sanitation

Regional Issues and Solutions
RegionIssue

Solution

Features

Many households and schools
lack toilet facilities

SATO Toilet Systems

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

Inadequate water supply andfacilities

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

Difficulty of sewerage
infrastructure or pit toilet
installation

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

Urban areas

Rural areas with scatteredcommunities and slums
Slum in Mumbai

LIXIL Group Corporate Responsibility Report 202019

Commitment

Strategic Pillars

Management & Material Issues

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action PlanThree Strategic Pillars > Global Sanitation & Hygiene

03
THREE
STRATEGIC PILLARS
Three Strategic Pillars

SATO Toilet Systems
The SATO toilet systems are a range of simple, affordable

How SATO Toilet Systems Workthe country in 2013.

solutions intended for use in developing countries. Flushing

The SATO Toilet Systems are currently manufactured andrequires only 0.2-1 liter of water, using a counterweightsold in six countries in Asia and Africa. Including donations,trapdoor that otherwise remains closed to reduce odors andsome 3.8 million units have been distributed to at least 38

prevent insects, such as flies, from spreading bacteria.

countries, contributing to better sanitation for an estimated

The original SATO model, developed through dialogue with
● Global Sanitation & Hygiene

communities in Bangladesh, received a grant from the Bill● Water Conservation &Environmental Sustainability& Melinda Gates Foundation. Production and sales began in● Diversity & Inclusion

Countries Where SATO Toilet Systems Are Used
Bangladesh

2

Belize21 Mauritania

3

Benin

22 Mozambique4

BhutanARMENIA

5

15

6

21
30
14

1

29
Bangladesh

35

8

3

Benin

4 Bhutan9

6

5
6

5

36

33

Bolivia 38

22

Brazil23 Myanmar
24
4
24 Nepal

Bolivia
Brazil11
7 Cambodia

3
10 13 225Belize

27

20 Malawi

1
SWITZERLAND

2User relieves themselves

18.6 million people.

16

23

25 Nigeria
1
1 Bangladesh
26 Papua New Guinea37

2

Belize 7

20 Malawi

1

Bangladesh

2

Belize21 Mauritania

3

Benin

22 Mozambique

28Bhutan
Malawi
20 4

23 Myanmar

21 Mauritania
5 Bolivia

24 Nepal
25 Nigeria

20 Malawi
8 Cameroon

27 Peru

31
9 Congo21 Mauritania

3 Benin28 Philippines

22 Mozambique
6 Brazil

18 Cote d'lvoire
Mozambique
22 10
34
1 Bangladesh
Myanmar
Ethiopia
23 11

Bhutan29 Rwanda
17
Bolivia
5
Malawi30 20
Senegal23 Myanmar
7 Cambodia 26

26 Papua New Guinea

24 Nepal
8 Cameroon

27 Peru

6 Brazil
Mauritania
Somalia
31 21

9 Congo25 Nigeria

28 Philippines

7 Cambodia
Mozambique
32 22
South
AfricaPapua
Guinea 29 Rwanda
CoteNew
d'lvoire
26 10

2 Belize
24 12
Nepal
Fiji
19
20
3 BeninNigeria
Ghana
25 13

4

Peru
Ethiopia
27 11

1230 Senegal

Bangladesh

20 Malawi
7 Cambodia

8 Cameroon
MyanmarBhutan4
Papua
New Guinea 33 23
Tajikistan
26 14Guinea-Bissau

Belize32
8 Cameroon
21 Mauritania

Peru
5 Bolivia
Haiti
27 15

9 Congo
Nepal
Tanzania
34 24

28 12
PhilippinesFiji

31 Somalia

3 Benin

9 Congo22 Mozambique

28 16
6 BrazilPhilippines
India

10 Cote d'lvoire
Nigeria
Uganda35 25

29 13
RwandaGhana

32 South Africa

1
2

4

BhutanCote d'lvoire
Myanmar
23 10

29 17
Rwanda7 Cambodia
Indonesia

SenegalGuinea-Bissau
11 Ethiopia
Papua
New Guinea 30 14
Uzbekistan
36 26

5

Bolivia

Ethiopia
24 11
Nepal

8 Cameroon
30 18
SenegalKenya

12 Fiji
Peru
Vietnam37 27

6BrazilFiji
Nigeria
25 12

9 CongoSomalia
31 19
Madagascar

13 Ghana
Philippines
Zambia38 28

7

Cambodia

MalawiCote
d'lvoire
10
1 BangladeshSouth
AfricaGhana
Papua
New Guinea 32 20
26 13

8

Cameroon

2 Belize
Guinea-Bissau
Peru
27 14

9

Congo

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

33 Tajikistan

Somalia
Haiti
31 15

34 Tanzania

32 16
IndiaAfrica
South

35 Uganda

14 Guinea-Bissau
29 Rwanda

Tajikistan
Indonesia
33 17

36 Uzbekistan

Mauritania
Ethiopia
11
Tajikistan
33 21

15 Haiti
30 Senegal

Tanzania
Kenya
34 18

37 Vietnam

3 BeninHaiti
28 15Philippines

Mozambique
12
Fiji
Tanzania
34 22

31 Somalia
16 India

UgandaMadagascar
35 19

38 Zambia

10 Cote d'lvoire

4 Bhutan
India
29 16
RwandaMyanmarGhana
13
Uganda35 23

32 SouthAfrica17 Indonesia

36 Uzbekistan

11 Ethiopia

5 Bolivia
Indonesia
30 17
Senegal

Nepal
Guinea-Bissau
14
Uzbekistan
36 24

33 Tajikistan
18 Kenya

37 Vietnam

12 Fiji

6 Brazil
Kenya
Somalia
31 18

Nigeria
Haiti
15
Vietnam
37 25

34 Tanzania
19 Madagascar

38 Zambia

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

LIXIL Group Corporate Responsibility Report 202020

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action PlanThree Strategic Pillars > Global Sanitation & Hygiene

03
THREE
STRATEGIC PILLARS

Developing Products Suited to Local Conditions

Using Sato Operations to Nurture Human Capitaland Promote Hygiene Education

How SATO V-Trap Works

Adapting product development to local challenges andWe are collaborating with our partner companies andneeds is a vital element of sustainable social business.
We are developing a range of SATO Toilet Systems thatThree Strategic Pillars

needs. In India, for example, we developed the SATO V-Trap
toilet to address local problems of clogging and time-NGOs to establish regional production and sales systems.

TankA

are tailored to local sewage treatment methods and market

By driving the make-sell-use cycle, we seek to generateregional employment and enable autonomous, continuousInternal
内部ユニット
components

Tank
B

improvements in sanitation conditions.

● Global Sanitation & Hygiene

consuming installation.

● Water Conservation &Environmental Sustainability

The Indian government promoted a twin-pit system, but

who install SATO units and build toilet cubicles. Throughit was burdensome to switch from one pit to another, often

training programs offered in collaboration with NGOs, we● Diversity & Inclusion

support skill acquisition primarily among women and young

causing blockages in the mechanism. By replacing thestandard Y-shaped piping with a V-shaped one, SATO V-Trap

One such job-creation initiative is the training of workers

タンク A

タンク B

Tank AAタンク

toilet reduces the risk of clogging and requires approximately

タンク A

タンク B

Tank BBタンク

people. Reports in India showed a 200% increase in theearnings of several women who received our training.

80% less water per flush than conventional toilets. India

At the same time, we are working to drive people’s

achieved its target of eliminating outdoor defecation byawareness of the importance of sanitary toilet use. Unless

タンク A が一杯になったら

2019, and our SATO V-Trap toilet has helped to boost theratio of toilet use there.

棒で内部ユニットを回転させ、使用するタンクを A から B に切り替えて使用する

内部ユニットthey are used, installed toilets do not contribute to solving
sanitation issues. That is why we work with UNICEF andNGOs to promote understanding of the importance ofInternal
内部ユニット
components

sanitation and toilet use.
When collected waste
reaches the capacity limit ofタンク
thetankAAが一杯になったら

タンク
Tank AA

タンク
Tank BB

棒で内部ユニットを回転させ、
Rotatethe internal components
使用するタンクをからBに
witha bar to switchAtankfrom
切り替えて使用するA
to B
Installing SATO V-Trap toilet

Training program

LIXIL Group Corporate Responsibility Report 202021

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action PlanThree Strategic Pillars > Global Sanitation & Hygiene

03
THREE
STRATEGIC PILLARS
Three Strategic Pillars

Partnerships

BRAC, PSI, and Other NGOs

Solving sanitation issues is not something that the LIXIL

We work with experienced NGOs such as Bangladesh

LIXIL Corporation launched the Toilets for All project in 2017

Group alone can achieve. Our initiatives rely on collaborative

Rural Advancement Committee (BRAC) in Bangladesh

to spread awareness of global hygiene issues in Japan andpartnerships that utilize the strengths of various specialist

and Population Services International (PSI) in Kenya to

improve sanitation in developing countries.

organizations, NGOs, and business partners.

build the value chains that enable SATO installation, lobby

Under the project, in 2017 and 2018, for each LIXIL

governments to promote sanitation measures, and receive

integrated shower toilet sold in Japan, LIXIL donated one

UNICEF

feedback on product development.

of its SATO products to a developing country in Asia or

In 2018, LIXIL Corporation and UNICEF formed the Make a

JICA● Global Sanitation & Hygiene● Water Conservation &Environmental Sustainability● Diversity & Inclusion

Together with Japanese Customers

Africa. Through international organizations and NGOs, ourSplash! global partnership to improve sanitation for children

toilets were donated to priority groups of people in India,
Tanzania, and Rwanda, as well as Rohingya refugee camps

around the world. We launched the initiative in Ethiopia,

The LIXIL Group signed a memorandum with Japanin Bangladesh. Donations totaled 410,000 units over the

Kenya, and Tanzania to establish markets for hygiene-relatedInternational Cooperation Agency (JICA), the independent

two-year period.

goods and ensure the availability of affordable products foradministrative agency that coordinates overseas

people lacking toilets. We are working to expand this market-

development assistance for the government of Japan, to

integrated shower toilets to UNICEF. The donation for thedriven program.

cooperate on the goals of improving sanitary environments

full year totaled approximately JPY 26 million, which is being

In 2019, we donated a portion of the sales of ourand securing safe water in developing countries. This is theused to build the infrastructure to help install safe, sanitarydriven campaign to ensure access to toilets for all of thefirst cooperative endeavor between a private company andtoilets and to raise awareness of sanitary issues in local

nation’s citizens by 2025. We will also promote similar

JICA in this field, and we intend to accelerate progress bycommunities.

campaigns in other countries.

leveraging our mutual strengths.

In Tanzania, we have been cooperating on a government-

CR

Toilets for All Project (P85)

Toilet Board Coalition
The LIXIL Group is a member of the Toilet Board Coalition,a global alliance of public and private sector partners thataims to develop sustainable solutions to the sanitation crisis.
We assist with the running of the organization, mentor
entrepreneurs who tackle sanitation problems, and engage
in advocacy through the Toilet Board Coalition.

LIXIL Group Corporate Responsibility Report 202022

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action PlanThree Strategic Pillars > Global Sanitation & Hygiene

03
THREE
STRATEGIC PILLARS

External Recognition

Designing Toilets for the Future

In December 2018, LIXIL Corporation received the Deputy-

In 2018, LIXIL Corporation announced a partnership

Chief’s Award, given by Japan’s Minister of Foreign Affairs,with the Bill & Melinda Gates Foundation to develop andat the 2nd Japan SDGs Awards. The LIXIL Group’s efforts tocommercialize the world’s first household reinvented toilet,

tackle sanitation issues, including the development of SATO

an off-grid system able to treat human waste without waterproducts and the solving of challenges throughout the value

or sewerage facilities. Many regions around the world lackchain, as well as advocacy in collaboration with NGOs andeasy access to water, or face excessively expensive sewerage● Global Sanitation & Hygieneinternational bodies, have been recognized through various

installation and repair due to rapid urbanization. In such

● Water Conservation &Environmental Sustainability

awards.

areas, installing conventional flush toilets that require water

Three Strategic Pillars● Diversity & Inclusion• Deputy-Chiefs’ Award given by Japan's Minister of Foreign
Affairs, 2 Japan SDGs Awardnd• Grand Award, 2017 International Association for Universal
Design (IAUD) Awards (Toilets for All project)• Innovation of the Year Award, Responsible BusinessAwards (SATO)• Selection Committee Special Award, 7th Technology,

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

How Micro Flush Toilet System Works

Drain

Sanitary sewage
storage tankPump

Re-use sewage water to carry waste

LIXIL is leading the creation of experimental new toilet
systems.
We are also working to develop Micro Flush Toilet System

How Portable Toilet System Worksand Portable Toilet System, which aim to help solve issues incities and slums.

Management and Innovation Awards (SATO)• 2018 Good Design Award (SATO)• Red Dot Award 2018 (SATO V-Trap toilet)

Collection
StationTreatment
Site

2nd Japan SDGs Award ceremony

LIXIL Group Corporate Responsibility Report 202023

Commitment

Strategic Pillars

Management & Material Issues

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action PlanThree Strategic Pillars > Water Conservation & Environmental Sustainability

03
THREE
STRATEGIC PILLARSWATER CONSERVATION & ENVIRONMENTAL SUSTAINABILITY
Conserve water, energy, and other natural resources utilized in and by LIXIL products and services across the value chain fromprocurement through production, distribution, end use, and product disposal.

Highlight
Progress

Social Issues

Three Strategic Pillars

World energy
consumption● Global Sanitation & Hygiene

32%

is consumed
in buildings(residential: 24%, commercial: 8%)

4

DoublebillionThose likely topeopleexperience water
stress by 2050
(2 in 5)Global resource
consumption
by 2050● Water Conservation &Environmental Sustainability

Target● Diversity & Inclusion

Zero Carbon and Circular Living

CO2 emissions from operational processes

Target:30%

6.3%

reduction

reduction

CO2

By 2050, achieve net-zero carbon emissions from housing and lifestylesolutions as well as operations, and become a leading company based ona model that preserves water and natural resources for future generations

FYE 2016(base year)

FYE 2020

FYE 2030

Our Journey
Developed a Group-wide
environmental management andpromotion system, held a global meetingof the Environmental Committee

2016
Formulated Environmental
Sustainability Principles andEnvironmental Vision 2030

2017
Set the 2020 medium-termtargets, promoted
environmental initiatives at
each business base

Our GHG reduction target wasapproved by the Science Based
Targets initiative2018
Launched My Bottle
Promotion and
THINK HEAT campaigns

Endorsed the Task Force on
Climate-related Financial
Disclosures (TCFD)

2019

Formulated Environmental
Vision 2050,
joined RE100

2030

Named on the CDP Water A List which recognizes
companies exhibiting superior water resource
management for the second consecutive year

Target:Net-zerocarbonemissions

2050

Reduce carbon emissions
30% (v. FYE 2016)

LIXIL Group Corporate Responsibility Report 202024

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action PlanThree Strategic Pillars > Water Conservation & Environmental Sustainability

03
THREE
STRATEGIC PILLARS
Three Strategic Pillars

BackgroundThe 2015 Paris Agreement seeks to keep the rise in global

LIXIL Group Environmental Vision 2050

average temperature well below 2°C above pre-industrial
levels, and aims to limit that rise to 1.5°C. To achieve this,In FYE 2020, we formulated an environmental vision for

the world must reduce CO2 and other greenhouse gas

the LIXIL Group in the year 2050. Based on our Zeroemissions to net zero by 2050.

Carbon and Circular Living policy, by 2050, we aim to

In addition, an estimated 800 million people around the

reduce CO2 emissions from our business processes,● Global Sanitation & Hygiene

world today do not have access to safe drinking water. By

products, and services to net zero, and be a leader in the● Water Conservation &Environmental Sustainability

2050, over 40% of the world’s population won’t have access tofield of conserving water and limited resources for futurenecessary water supply due to the depletion of water resources.

generations.

● Diversity & Inclusion

Furthermore, global resource consumption is expected tomore than double by 2050. To help change this situation,
the world is gradually shifting from a one-way economy,
which mines resources, makes products in large quantities,
and eventually discards them, to a circular economy thatThree Focus Areas to Achieve Our Vision

closes resource loops.

CLIMATE CHANGE MITIGATION AND ADAPTATIONOur Approach & Strategy

Achieve Net-Zero GHG Emissions through Our Business Operations, Products, and Services

Modern lifestyles rely on large amounts of energy andresources. The LIXIL Group, which seeks to contributeto improving the comfort and lifestyles of people aroundthe world, plays a crucial role in conserving our global
environment.

WATER SUSTAINABILITY
Enhance the Environmental Value of Water Resources by Saving, Circulating, and Purifying Water

We strive to minimize environmental impacts both in ouroperations and through eco-conscious products and services
that fully draw on advanced technologies and know-how
related to life and living.
We are also committed to partnering with various

CIRCULAR ECONOMY
Help Transition to a Circular Economy and Preserve Natural Resources for Future Generations

stakeholders to foster an environmentally sustainable future
together.

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Environment

Customers & Supply Chain

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External Evaluation & Action PlanThree Strategic Pillars > Water Conservation & Environmental Sustainability

03
THREE
STRATEGIC PILLARS

Three Focus Areas to Achieve Our Vision
Climate Change Mitigation and Adaptation

Targets for Realizing the Vision
The LIXIL Group has set and is now implementing medium-medium-term plans going forward will be aligned with ourterm environmental targets to be achieved by FYE 2021. Our

Environmental Vision 2050.

The energy consumed by LIXIL Group products during theirThree Strategic Pillars

end-use phase accounts for over 90% of CO2 emissions of

FYE 2021 Targets

the entire lifecycle of LIXIL products and services, from raw
material procurement through to product disposal. At theIssues● Global Sanitation & Hygiene

LIXIL Group, we strive to reduce our environmental impact● Water Conservation &Environmental Sustainability

and aim to achieve net zero CO2 emissions by 2050 by

Improvement inenvironmental valueof our products andservices● Diversity & Inclusion

offering eco-conscious products and services.

Climate change
mitigation andadaptation

Water Sustainability
Climate change
mitigation andadaptation

As a leading company in the water-related product industry,
providing products such as toilets, kitchen systems, prefabricated bathrooms, and faucets, the LIXIL Group strives
to help achieve global water sustainability so that people canget the most out of the water they use.

Environmental footprint
reduction from ourentire business process
Water sustainability

KPI

2020 medium-term targets (FYE 2021)

2030 targets*3

CO2 emissions reduction
attributable to Group products andservices

Increase by 1.36 times (v. FYE 2016)-

CO2 emissions from places ofbusiness*1

Reduce by 8% (v. FYE 2016)

Reduce by 30%

CO2 emissions form product use

Formulate KPIs/targets and implement
measures based on business plan

Reduce by 15%

CO2 emission intensity per unit ofoutput in the distribution process

Reduce by 5% (v. FYE 2016)-

Improvement in water usage
efficiency at high-water risk bases• Complete the water risk analysis of all
production sites• Select high-risk sites, formulate KPIs/-

targets, and implement measures

Circular Economy
Circular economy

Recycling ratio of waste collectedfrom places of business• Japan & Europe: 95%• Asia: 66%• North America: 40%-

Coverage of the system

100%

-

Number of environmental law
violations*20-

The LIXIL Group uses a variety of resources, including
metals, timber, resin, and ceramics. In order to use
limited resources more sustainably, we promote circular
manufacturing practices that consider the entire productlifecycle, from raw material procurement through tomanufacturing, product use, and disposal.

Establishment of an environmental
management system*1 CO2 conversion factors are published by each electricity company with which our sites have a contract(factors that include emissions from renewable energy sources, etc.)*2 Number of serious violations with penalty of operational suspension or fines*3 Medium- to long-term targets approved by the international Science Based Targets initiative

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Environment

Customers & Supply Chain

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External Evaluation & Action PlanThree Strategic Pillars > Diversity & Inclusion

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

DIVERSITY & INCLUSION
Leverage the knowledge and perspectives of a diverse workforce as a key driver of growth and innovation.
Improve quality of life for all people through our products and services, irrespective of their age, gender, and the level of disability.

Highlight
Social Issue

1 in 5 people

aged 60+ by 2050

ProgressMany of those will be living inelderly-only households

Ratio of Female Participants in Stage 3of the Talent Acceleration Program (TAP)
for Next-Generation Leaders(selective training for young employees)

TargetResearchstudies:

External
announcements:

2

Exhibited News from the Toilet(AI-driven defecation-monitoring
system for residents in elderly carefacilities) as a reference technology at:

60
40

5

Result

80

37.5

29.2

33.3

20

20

20

20

* Scope: Products and services in Japan (as of August 2019)

Determined LIXIL Universal Design Policy

Target100

By 2020, establish the culture of diversity andinclusion within our organization and among all employees
By 2030, ensure all products and services* are based on
LIXIL s Universal Design concept

2012(FYE 2020)(LIXIL Corporation, Japan)

Inclusive for All

Our Journey

Research studies on supporting the daily livesof elderly people and people with disabilities• International Home Care andRehabilitation Exhibition 2019

• Combined Exhibition ofAdvancedTechnologies (CEATEC) 20190

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

2017

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

2018

Released Resilience
Toilet for use evenin times of disasters

2019
Toilets for All project won International
Association for Universal Design (IAUD) award2030
Set 2030 Universal Design targets

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External Evaluation & Action PlanThree Strategic Pillars > Diversity & Inclusion

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THREE
STRATEGIC PILLARS
Three Strategic Pillars

BackgroundOur Approach & Strategy

Many regions in the world are faced with an aging

The LIXIL Group aims to encourage all employees totechnology development, and public relations) to attend

population. By 2050, one in five people are projected to beembrace a diversity- and inclusion-driven culture by 2020.

workshops to formulate advanced UD concepts: easy toover the age of 60, with most of them living either alone or

In addition, we aim to ensure all our products and services

understand, easy to use, safe and secure, and easy towith their spouse only. Approximately 15% of the world’s

are based on LIXIL Universal Design concepts by 2030.*

love. Based on these concepts, LIXIL will develop and offer

population today also live with some degree of disability, andthis rate is increasing every year.

● Global Sanitation & Hygiene

Many people expect companies to develop products and● Water Conservation &Environmental Sustainability

services that can help improve the lives of a wide range of● Diversity & Inclusion

products and services that incorporate ideas from multiple*Scope: Products and services in Japan (as of August 2019)perspectives to enable all individuals of all ages to live fulland comfortable lives.

Universal Design Project

people, including the elderly and people with disabilities, aspart of a universal quest to realize a sustainable society in

In FYE 2018, the LIXIL Group established an exploratory

which all people can actively participate.

committee consisting of senior managers to promote UD-

The LIXIL Group focuses its efforts on universal design

related activities. The committee invited a diverse range(UD), a design philosophy that seeks to ensure everyoneof members from different functions (design, marketing,

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

Universal Design (Japanese only)

age, language, gender, ability or disability, or capability. We
prize the wide-reaching knowledge and perspectives of a

Easy to understandIntuitive

Clear purpose

diverse workforce, because they fuel growth and innovation,• Detectable by anyone• Can be properly recognizedincluding UD advancement.

• Uncomplicated• Multi-sensory information, such as sight, hearing, and touch

Easy to use

Easy to execute and operate

Flexible

Easy tounderstand• Simple to operate• Uses shapes and dimensions that support body movement and posture• Able to adapt along with changing physical capabilities andgrowing or aging families

Intuitive
Clear purpose• Uses layouts that follow the natural flow of movement• Able to select or add necessary functions• Ensures space needed to operate

Easy to use

Safe & secure

Easy to executeand operate
Flexible

Considerate of
all peopleChild-friendly

Easy to love
Can be used fora long time
Encourages smiles

LIXIL Universal Design Policy

Safe and secure

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

Easy to love

Can be used for a long time

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

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

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External Evaluation & Action PlanThree Strategic Pillars > Diversity & Inclusion

03
THREE
STRATEGIC PILLARS

Examples of Products and Services
Well Life Kitchen: Easy to Use While Sitting

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

equally visible but blends better with its surroundings. The
new blocks went on sale in FYE 2018.

In October 2018, LIXIL Corporation introduced a fully
updated version of its wheelchair-adapted Well Life kitchen

The LIXIL Group offers well-designed barrier-free products

range. This includes sink and countertop dimensions thatfor public spaces. This includes the guiding blocks forare easier to use from a seated position. Our Well Life

people with visual disabilities. Barrier-free experts encourage● Global Sanitation & Hygiene

kitchen also incorporates user feedback to facilitate steadierthe placement of dark-yellow guiding blocks on all pathways,● Water Conservation &Environmental Sustainability

side-to-side movement in a wheelchair. This approach isbut ambiance-sensitive designers tend to avoid using themnot only popular with wheelchair users, but also with many

because the yellow shade stands out too much. This has

elderly and other people who prefer to do their housework

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

from a less-tiring seated position.

LIXIL Corporation developed new blocks to guide people

Three Strategic Pillars● Diversity & Inclusion

with visual disabilities using a new cool-yellow color that is
New cool-yellow color blocks

Other Examples of LIXIL’s UD Products and Services
ToiletBathroom

Honoka-Light

Push faucetWEB

UD Ideas (Japanese only)

Bathroom
vanityWheelchair
accessible vanity

WEB

Public toilet

Stairs, corridors,
entrances

Entrance,
exterior

Stairs withslip prevention

Slide system

Large remotecontrol

Kitchen

Living room

In town

Hands-free faucet

Non-rail sash

Support rail UD

Well Life (Japanese only)

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Customers & Supply Chain

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External Evaluation & Action PlanThree Strategic Pillars > Diversity & Inclusion

03
THREE
STRATEGIC PILLARS

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

Many people flood into emergency shelters when a

The world is facing more natural disasters caused bydisaster hits, so the toilet facilities should be sufficient in

extreme weather events due to climate change. In

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

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

preparedness is becoming increasingly pressing. Sewage

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

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

● Water Conservation &Environmental Sustainability

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

Three Strategic Pillars● Diversity & Inclusion

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

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

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

USES

5L

5L

/ flushon regular setting

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

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

and gymnasiums that serve as emergency shelters when a

A toilet people use in everyday life ensuresdisaster strikes, as well as to public buildings that serve as

comfortable use even when water supply is disrupted.

disaster response centers. Rather than focusing solely on

Easy to clean and safe to use.

USES

1L

/ flush*1L

when water supply
is disrupted

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

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

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Environment

Customers & Supply Chain

Society

External Evaluation & Action PlanThree Strategic Pillars > Diversity & Inclusion

03
THREE
STRATEGIC PILLARS

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

LIXIL visits schools to conduct its Universal Design: Good

people to live invigorating lives while respecting those aroundfor One, Good for All program, which teaches children thethem, LIXIL offers education programs for elementarysignificance of universal design concepts. LIXIL employees

school students. As part of these educational programs, wecreate their own teaching materials and conduct lessons

hold Universal Run: Sports Prosthesis Experience Class atfor elementary school children. The program is designed

LIXIL Corporation’s Toilets for All initiative won aelementary schools in Japan.

to highlight examples of universal design in nearby streets

Grand Award in the International Association for● Global Sanitation & Hygiene

We want as many people as possible to consider andand individual homes to deepen students’ understanding

Universal Design (IAUD) Awards 2017. The project● Water Conservation &Environmental Sustainability

personally feel what universal access means by talking withof diversity in terms of gender, age, nationality, and ability

was highly praised for its scope, scale, passion, andpeople who wear artificial limbs and attending this program.

and disability, and encourage them to think what they can

implementation. The judges described the initiative

To date, the program has attracted 16,600 children fromdo and how they can act on it. In FYE 2020, the program

as “a life-saving innovation for those most in need in

233 schools (as of June 2020).

attracted 904 children from 10 schools.

developing countries that adds a new dimension toThree Strategic Pillars● Diversity & Inclusion

International Association for Universal
Design (IAUD) Award*

universal design.”* An initiative directed by the IAUD general incorporated
foundation that awards groups and individuals who conductor propose remarkable activities designed to help develop
a society in which the greatest number of people can live
comfortably.

Diversity of LIXIL Group Employees
The LIXIL Group aims to encourage all employees to embrace adiversity- and inclusion-driven culture by 2020, and to build
a corporate environment that encourages the involvementof a diverse range of personnel. Read on to find out more.
WEB niversal Run: Sports Prosthesis Experience ClassU(Japanese only)

WEB

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

Diversity & Equal Opportunity (P34)

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04
OUR PEOPLE

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action PlanOUR PEOPLE
We strive to respect the individuality of all employees
and create a rewarding working environment.

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

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Environment

Customers & Supply Chain

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External Evaluation & Action Plan
Our People > Highlight04

Highlight
TargetOUR PEOPLE

Our People

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

Diversity & Equal Opportunity

Ratio of women among
regularly recruited new hires

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

100 ( % )1500 (people)

80

Diversity & Equal Opportunity

Talent Development

69

TargetRewarding Workplaces

30%

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

40

1200

63

60

Target

58
33.2

31.5

30.5

over
30.0

20
0

1300

■ RatioFYE 2019

FYE 2020

1195

1265

1300

900
600

people300(LIXIL Corporation, Japan only)

FYE 2018

1078

0

FYE 2021(Target)FYE 2017 FYE 2018 FYE 2019 FYE 2021

Number(Target)Rewarding Workplaces

Occupational Health & Safety

Group-wide coverage of global employee awareness survey

LTIFR (Directly and indirectly hired employees)
1.5

(%)
100

Progress

88

90

90

92

(LIXIL Corporation, Japan only)

0.44

50
25
0

FYE 2014 FYE 2016 FYE 2018 FYE 2020
* Survey conducted every two years

1.15

1.02

1.2

1.2

0.9

Result

75

92%

1.2

0.6

0.52

0.46

0.54

0.44

0.3
0

FYE 2017 FYE 2018 FYE 2019 FYE 2020

LTIFR (Lost Time Injuries Frequency Rate):
Number of occupational injury cases involving days
away from work / Total working hours × 1,000,000

LIXIL

Industry average (Japanese manufacturing)

Source: Ministry of Health, Labour and Welfare's "Survey on
Industrial Accidents (Surveys on establishments (with 100 or
more employees) and general construction)"

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Environment

Customers & Supply Chain

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External Evaluation & Action Plan
Our People > Diversity & Equal Opportunity

04
OUR PEOPLE

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

Our Approach
United under the LIXIL Diversity & Inclusion Declaration,

Our People

the LIXIL Group embraces diversity in gender, age, race,
nationality, values, background, etc., and turns theDiversity and Inclusion Statement
The LIXIL Group issued this emergency Diversity and Inclusion Statement in July 2020:

energy and creativity generated by diverse talent into
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

a source of strength. We aim to furnish a comfortableand friendly culture and working environment for all,

“We are at a point in time where we all, as individuals

As a global company with operations in over 150

enabling employees to approach difficult challenges withand as companies, are forced to face some difficult

countries, we have committed ourselves to treating

an entrepreneurial spirit, and be fairly evaluated for theirtruths on issues of diversity, equality, and inclusion. The

everyone fairly and equally. However, we must reflect

performance.

tragic death of George Floyd and the subsequent events,

and assess if we are truly doing all that we can to ensure

demonstrations, and actions in the US and across theequality and tolerance within our company and with our

globe serve as a stark reminder that we must do more as

stakeholders.”

Our Systemsociety to put an end to racial injustices and inequality.
We set up our Global Diversity and Inclusion department
in FYE 2020. In the first year, we analyzed our current
level of diversity and inclusion worldwide. Going forward,

The statement includes some concrete policies we intend to implement. The LIXIL Group remains committed to

we will determine a unified global diversity and inclusionconsidering what we need to do to be able to solve these issues and to acting upon whatever initiatives we determine.

strategy, set targets, and implement measures to deal with
relevant issues in individual countries and regions.

Examples of Our Commitments
Accelerating diversity inStrengthening measures to

Demonstrating our commitments

representation, and enhancing theembed equality and inclusivity

not only within LIXIL, but also tohiring and promotion of diverse

across the organization, in orderenhancing focus on inclusion among

talent at all levels.

to retain diverse talent within thestakeholders, including holding

organization.

those with whom we do businessaccountable to our standards.

PDF

LIXIL Diversity and Inclusion Statement (195KB)

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Our People > Diversity & Equal Opportunity

04
OUR PEOPLE

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

Gender & Age
Empowering Women in the Workplace

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

Promoting the active participation of female employees ispaths and support structures with their managers andAt the LIXIL Group, the executive management team actively

an essential part of creating an environment in which eachsustain a fulfilling career after they return to work.

supervises the creation of a rewarding working environment

employee can demonstrate their own individual strengths

We have also set relevant regional targets for increasing

through their work. At the LIXIL Group, the CEO is leading

the percentage of women working in LIXIL Water Technology

our commitment to encouraging the full participation of(LWT) Americas, LIXIL Asia, and other locations outside

female employees.

Japan, and are making efforts to achieve the targets. These

necessary systems and cultivating the right atmosphere toinclude, for example, the percentage of women in eachsupport a good work-life balance, enabling employees toprofessional class or ethnic group.

maintain a high level of performance throughout different

We consider a diverse range of people, including women,in our succession planning for major positions within thein which each and every employee can perform vigorously totheir full potential.
LIXIL Corporation is committed to enhancing theGroup. We also set a 20% target for female participation

life stages. We have introduced a variety of new systems,in the young employee grade of LIXIL Corporation’s Talent

including telecommuting, hourly based paid holidays, and

Acceleration Program (TAP) to nurture our next generationof corporate managers, and we achieve that target every
year. Furthermore, the number of female managers in LIXIL
Corporation has risen from 22 (0.9%) in March 2012 to 171(5.7%) in March 2020.

Number and Composition Ratio of Female Managers ★

Number of Maternity Leave Users ★

(Persons)
900(Persons)
400

We are also working to create an environment wherefemale employees can consistently develop their careers

13.9
780

14.1
819

14.0

(%)
15

99.4

93.0

813
10

600

103.5

300

96.0

career-building tool for working mothers. Our aim here is to

75

257

249
300

encourage female employees preparing to take maternity
or childcare leave to use this tool to explore potential career

91.8

300

even if they take time off for life events such as childbirth.
As part of this effort, we have developed the Mamap

6.0

5.6

220

213

219

FYE 2018

FYE 2019

FYE 2020

5.8

0

5

200

0

100

Composition ratio of women among managers (LIXIL Group total)
Composition ratio of women among managers (LIXIL Group in Japan)
Number of female managers (LIXIL Group total)
Number of female managers (LIXIL Group in Japan)
Scope: The entire Group (Excludes Permasteelisa Group. FYE 2020 data also excludes
consolidated subsidiaries in Japan with 100 or less directly hired employees.)* Directly hired employees only, data collected based on the qualification system used ateach operating company, as of March 31 of each fiscal year.

(%)
100

97.2

50

198

169

176

25

0

0
FYE 2018

FYE 2019

FYE 2020

Return to work ratio (LIXIL Group total)
Return to work ratio (LIXIL Corporation)
Number of users (LIXIL Group total)
Number of users (LIXIL Corporation)* Directly hired employees in Japan only (FYE 2020 data excludes consolidated
subsidiaries with 100 or less employees.)* Number of employees who started maternity leave during each fiscal year

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External Evaluation & Action Plan
Our People > Diversity & Equal Opportunity

04
OUR PEOPLE

career return systems that facilitate the reemployment of

Number of Child-Care Leave Users ★

Number of Nursing-Care Leave Users ★

employees who gave up work due to various reasons suchas childbirth, childcare, or nursing care commitments,

Our People

or relocation because of their partner’s transfer. We also
subsidize extended daycare fees and fees for employees’
children to attend unlicensed daycare centers. More male

Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety(Persons)

400

300

employees whose partners have just had a baby are using
our Papa Childcare Leave system thanks to the newly
available extended leave and flexible scheduling options,and more users are further extending their childcare leave
after taking leave for the number of days available under the
Papa Childcare Leave system.
LIXIL Water Technology (LWT) & LIXIL Housing Technology(LHT) Asia (GROHE Sanitary Products Shanghai) forbids

100.0
97.9
95.7
311

100.0

97.9

100.0
99.5
98.2

92.4

7

263
11

200

304

252

249

11

75

15

100.0

106.3

6

75

50

10

25

5

FYE 2020

0

0

50

15

13

0
FYE 2018

FYE 2019

Return to work ratio (LIXIL Group total)

to promote a strong work-life balance.

Return to work ratio (Female, LIXIL Group total)

Number of users (Male, LIXIL Group total)

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

FYE 201925

10Return to work ratio (Male, LIXIL Group total)

FYE 2018

17

4

employees from doing 36 or more hours of overtime a month

Percentage of Staff Still Working 1 Year After Childcare Leave

(%)
100

100.0

21
17

238

0
FYE 2019(Persons)
20

(%)

7

100

FYE 2018

100

FYE 2020

Number of users (Female, LIXIL Group total)* Directly hired employees in Japan only (FYE 2020 data excludes those working at
consolidated subsidiaries with 100 or less employees)* Directly hired employees in Japan only (FYE 2020 data excludes those working at
consolidated subsidiaries with 100 or less employees)

FYE 2020

Male

100.0%

100.0%

88.9%

Female

93.1%

96.8%

96.8%

Total

93.3%

96.9%

96.4%

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

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Our People > Diversity & Equal Opportunity

04
OUR PEOPLE

Our People
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety ulture & Identity
C
Fostering a Friendly Corporate Culture
towards Sexual Minorities

Then in September 2019, the LIXIL Group endorsed

Encouraging Employee Activities

Since April 2017, the LIXIL Group has been working to

the “Support the Recruitment and Retention of Talent by

create a friendly working environment for sexual minority

Instituting Marriage Equality in Japan” viewpoint published

The LIXIL Group has established frameworks to support

employees. In March 2019, LIXIL Corporation made someby the American Chamber of Commerce in Japan (ACCJ)

independent employee activities.

improvements to its human resources system and working

recommending that the Japanese government extend theenvironments. For instance, we have started treating same-right to marry to sexual minority couples.

sex partners as dependents and applying the relevant
congratulation or condolence leave and financial payments,

LIXIL Corporation launched the LIXIL Diversity Network
in 2017, which encourages employees to get together
voluntarily to share and solve their problems and to improve

Promoting Multi-Cultural Understanding

arranging times and locations for undergoing health checks,

individual skills. In addition to the Women’s Network
launched in 2013, we have created four more networks forand recognizing employees’ preferences for either male or

LIXIL Corporation factories accept foreign-national apprentices.

disabilities, sexual minorities, people involved in childcare

female uniforms.

To enable these apprentices to work enthusiastically in Japan,

or nursing care life stages, or those interested in otherWe are also promoting internal activities to expand

we believe it is important to build better communication, so

issues. For instance, we run LIXIL Women’s Sales Group

understanding and support. In FYE 2018, we created a

we hold events to help promote understanding of Japanese

to help increase the active participation of saleswomen inseries of online lectures relating to sexual diversity and haveculture and Japanese language study sessions.

the traditionally male-dominated construction industry andbeen encouraging employees to watch them. We seek to

It is essential for a global company to understand different

increase the number of allies who understand and support

cultures in order to foster strong communication. In thatsexual minorities through venues such as study sessions, andspirit, LWT Americas conducted a program to improve

distribute Ally badges and stickers to employees who support

employees’ understanding of values and work procedures inthis initiative. We encourage allies to share information throughJapan, where the LIXIL Group headquarter is located.

to provide a venue for proactively sharing and solving any
issues or problems that women in particular might have.

the LIXIL Ally network and seek to deepen understandingby arranging opportunities to interact with sexual minorities.

Encouraging the Promotion to Management Positions

Thanks to these efforts, in March 2019, we achieved our targetof having two or more allies in each of LIXIL Corporation’s 86

LWT South Africa selects staff who have potential leadershipbases in Japan with 50 or more employees.

qualities from among its factory workers and from particularethnic groups who have traditionally found themselves ina disadvantageous position and are underrepresented incurrent management positions. These employees join a Future
Leadership Program designed to develop the necessary skills to

Sexual minority-friendly logo

advance to management positions in the future.

LIXIL Women’s Sales Group

LIXIL Group Corporate Responsibility Report 202037

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Our People > Diversity & Equal Opportunity

04
OUR PEOPLE

opportunities, WING NIJI has been undertaking manywith mental disorders and seeking to make various efforts

employees with hearing disabilities, offers sign language

initiatives to explore the type of environments and conditions

and considerations to improve working environments to suitclasses for hearing people to enable all employees to workthat would enable people with and without disabilities tothe capabilities and characteristics of individual employees.

enthusiastically whatever their hearing ability.

work together most effectively. For instance, the office

For instance, we ask people who are prone to anxiety to do

introduced software that increases the font size for peopletasks at their own pace, or leave an empty desk in front of

networks for women, multi-cultural employees, or employeeswith impaired eyesight and adjustable-height desks foran employee who gets distracted by other people aroundcurrently involved in childcare or nursing care, so thatwheelchair users.

them or allow them to work in a free space.

In addition, our Mimishiru team, run primarily by

In FYE 2018, LWT Americas also set up employee

Our People

employees from diverse backgrounds can always find a
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

LIXIL Corporation is also strengthening company-wide

In May 2016, LIXIL Corporation was certified by Japan’s

mentor and never feel alone or isolated. In terms of concrete

efforts, including introducing sign language interpretation in

Ministry of Health, Labour and Welfare as a leading

activities, we broadcasted a panel discussion held totraining sessions and other meetings and putting subtitles oncompany in the active employment of persons with mental

coincide with International Women’s Day to all our businessintranet videos for employees with hearing disabilities.

and other disabilities. We aim to help create a socialbases, and we also held discussions with our product

Since 2012, we have been proactively employing people

structure in which people with disabilities can participate

development and marketing departments on topics suchas developing products for mothers looking after children,and designing communication for people from Asianbackgrounds.

Disability
Employing People with Disabilities

actively by sharing these initiatives with other companies

Number and Percentage of Employees with Disabilities ★
(Persons)

2.54

1,250

2.39

2.43

1,000

2.29

2.26

2.33

762

784

823

750

(%)

2.50
2.00
1.50

500

1.00

Many employees with disabilities work alongside those
without disabilities in the LIXIL Group because we havedeveloped inclusive environments in different workplaces,from R&D to production, sales administration, and planning

250
437

438

FYE 2018

FYE 2019

0

Employment rate (LIXIL Group total)

As of June 1st, 2019, 458.5 people with disabilities wereEmployment rate (LIXIL Corporation)of the workforce.* In 2014, LIXIL Corporation launched its
WING NIJI office that focuses on employment of people withdisabilities. In addition to supporting people with different
disabilities to perform their work assignments, conducting
career aptitude evaluations, and offering job development

0.50* Calculated based on the Employment Rate System for Persons with
Disabilities by the Ministry of Health, Labour and Welfare.
FYE 2020 human resource performance data indicated with ★ havebeen assured by a third party.

DATA

Scope and details(Supplementary Publication: Databook / 581KB)

0

management, to suit each individual’s specific capabilities.
employed across LIXIL Corporation, representing 2.33%

458.5

and government institutions.

FYE 2020

Number of employees with disabilities (LIXIL Group total)
Number of employees with disabilities (LIXIL Corporation)* Directly hired employees in Japan only (FYE 2020 data excludes those working at
consolidated subsidiaries with 100 or less employees)* LIXIL Corporation data for FYE 2018 and FYE 2019 include Senior Life Company Ltd.
* Employee numbers on June 1 of each fiscal year. However, the numbers of employeeswith disabilities for FYE 2018 and FYE 2019 are the numbers recorded on March 31
of respective years.
* The percentages were calculated based on the Employment Rate System for Persons
with Disabilities issued by the Ministry of Health, Labour and Welfare.

Job instruction at WING NIJI

LIXIL Group Corporate Responsibility Report 202038

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Our People > Rewarding Workplaces

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

Our Approach
The LIXIL Group strives to create an environment that

Our People

encourages employee diversity, inspires pride in thecompany, and enables each employee to maximize theirproductivity and potential. As part of this, we have been

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

focusing on improving our workstyles and revising ourhuman resources systems to foster employee enthusiasm

Promoting More Flexible and Diverse Working Styles
In FYE 2020, the LIXIL Group launched a new comprehensive human resources program to revitalize its
business in Japan called Kawaranaito LIXIL, which includes a drive to change working styles. We strive tocreate business environments that enable employees to communicate openly and equally and adopt themost efficient working style to suit a particular situation.

and motivation. This includes encouraging employees totake paid holidays, offering more comprehensive childcare
and nursing care support, and promoting proactive personal

Teleworking System Reform

career development.

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

We have expanded our work-from-home system to include satellite offices. We are also promoting new, diverse, and productive
working styles that enable employees to flexibly choose where and when they work, and what tools they want to employ
depending on the type of work that they do and their individual work-life balance. When launching the new telework system
in FYE 2020, we abolished the previous upper limit on the number of days an employee could work remotely so the system
could be employed more flexibly. We have also strengthened our IT and other systems to cope with the gradual increase in thenumber of employees opting to use the telework system.

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

Change Our Working Style! NEXT
LIXIL Corporation has promoted fresh employee thinking and human resource
measures through its Change our Working Style! campaign. In addition to the teleworksystem, we have implemented various measures to make flexible working styles morefeasible, such as encouraging employees to take more paid leave, relaxing flextime
conditions, and enhancing our IT infrastructure. The results of our FYE 2020 employee
opinion survey suggest that our efforts are starting to pay off, with the satisfaction score
for work-life balance increasing compared to the previous survey. Going forward, we willdevelop Change Our Working Style! campaign into Change Our Working Style! NEXT tohelp employees utilize adapted systems to work more efficiently.

LIXIL Group Corporate Responsibility Report 202039

Commitment

Management & Material Issues

Our People

Strategic Pillars

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Our People > Rewarding Workplaces

04
OUR PEOPLE

Our People

Improving Understanding of
LIXIL Behaviors

Employee Opinion Surveys
We conduct biennial opinion surveys of all employees

The LIXIL Group emphasizes working styles that help

We work to ensure that employees understand the three

worldwide who are under direct employment contracts.

employees achieve high output efficiently. To that aim, top

LIXIL Behaviors, which serve as a guideline on how

The surveys had been previously conducted separately

managers are proactively seeking to improve productivity byindividual LIXIL Group employees think and act in their

within each Group company, but we combined them into

eradicating long working hours and ensuring a healthy work-

daily work. To help that process, LIXIL Corporation set up

one common survey in FYE 2016.

life balance.

an internal social media group called Behaviors Lounge in
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development

Preventing Overwork

In the third survey conducted in FYE 2020, we collected

LIXIL Corporation provides information on time

which we conduct relay interview with our CEO and other

opinions from 92% of target employees in 21 different

management to all employees to help increase awarenesschief officers, and offered special menus associated withlanguages. That’s a total of 55,000 responses. The resultsof the need to work efficiently. Clarifying the definition

each of the three behaviors in our staff cafeterias.

collected from major global organizations were thenof working hours is helping improve the quality of timereported to management and employees. We have also

management. Employees who consistently work long hours

introduced an online system that enables them to view andare interviewed by an industrial physician to prevent any

analyze each organization’s results, so that they can gain

consequent issues with their mental or physical health. Aftera solid understanding of their organization’s strengths andwe started encouraging employees to take five consecutive

weaknesses and develop action plans. We will continuously

days of annual leave at a time, and to take leave to celebrate

improve grassroots initiatives and create an easy,

special personal anniversaries, the usage of paid leave has

comfortable working environment by taking various actions,

been increasing since FYE 2015, exceeding 50% in FYE 2018.

Occupational Health & Safety

both big and small, from holding assemblies to encourageinter-organization communication to having discussions
centered around senior management messages to deepen
Relay interview with our chief officers

understanding of our management policies.

Paid Leave Days Taken per Employee ★

Average Monthly Overtime Hours per Employee ★
(Hours)25(Days)

15

21.8
10.5

10

8.1

5

FYE 2018

10.4

10.9

9.5

9.7

FYE 2019

FYE 2020

LIXIL Corporation

LIXIL CORE and Behaviors (P12)

17.1

22.9

18.3

17.5

FYE 2019

FYE 2020

15
10

LIXIL Group total

CR

20

23.6

* Directly hired employees in Japan only (FYE 2020 data excludes those working at
consolidated subsidiaries with 100 or less employees)

FYE 2018
LIXIL Group total
LIXIL Corporation* Directly hired employees in Japan only (FYE 2020 data excludes those working at
consolidated subsidiaries with 100 or less employees)

LIXIL Group Corporate Responsibility Report 202040

Commitment

Management & Material Issues

Our People

Strategic Pillars

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Our People > Rewarding Workplaces

04
OUR PEOPLE

Our People

Labor-Management Relationship
The LIXIL Group believes that building mutual trust between

LIXIL Corporation supports the expansion of employment

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

responsible relationship helps create a fair and rewarding

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

local permanent employees at its plants.

LIXIL Corporation has established a labor union which
adopts a union shop system for permanent employees of theDiversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

Creating Local Employment Opportunities

Local Employees Hired at LIXIL Plants

company, and achieved a membership rate of 100% (as of(Persons)

March 31, 2020).

250

The fundamental labor-management agreement includes
items relating to health and safety and working environments.

220
200

Labor-management consultations are conducted in the form of
regular discussions and information-sharing on business status,
working conditions, health and safety issues, etc., and the union

230

200
200

216
200

150

and the company work together to resolve any issues. When
working conditions and/or other systems are newly introduced or100

revised as a result of labor-management consultations, the union
and the company cooperate to ensure employees are aware of
the changes. This is facilitated by posting the information on thecompany intranet, passing the information down through relevant

50

FYE 2018

FYE 2019

FYE 2020

TargetResult* LIXIL Corporation plants in Japan only

general administration departments, and distributing copies of theUnion Guide compiled by the union to all union members.

FYE 2020 human resource performance data indicated with ★ have beenassured by a third party.

DATA

Scope and details(Supplementary Publication: Databook / 581KB)

LIXIL Group Corporate Responsibility Report 202041

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Our People > Talent Development

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

Our Approach
The LIXIL Group pursues talent development from a long-

Our People

expand the LIXIL brand well into the future. As part of thatprocess, we focus on training next-generation leaders andDiversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

Global Challenge Program: Nurturing Future Global Human Resources

term perspective in order to nurture personnel who canemployees after evaluating global LIXIL talent based on

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

future business needs. To create a working environment
in which all employees can work with high engagement,
we support career development from two angles: strategic
company-driven career development, and self-motivatedcareer development managed by individual employees.

Our System
The LIXIL Group holds People and Organization
Development (POD) conferences with its CEOs in all
major global organizations, and creates an annual nextgeneration training plan to cover key positions and help
achieve our Medium-term Plan. From FYE 2019, we havecreated a list of approximately 600 potential successors
for 160 major Group positions worldwide. This enables us
to ensure business continuity even in times of emergency
and to build a future-looking system for strategicallyselecting successors. We devise training plans for eachof the listed successors that are designed to build theirindividual strengths and address development areas
by providing business assignments and job transfer

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

Selecting Primarily Young Employees
through Open Recruitment
Each year, we offer open recruitment opportunities to all
employees (excluding managers) via our intranet. Over 40
employees, primarily in their twenties, apply each year. They
undergo selection procedures including an interview conducted
in English with an office outside Japan, and selected
applicants are then dispatched overseas. We sent the second
group of employees (14 persons) to five countries (Thailand,
the Philippines, China, the US, and Germany) in FYE 2019.
We plan to send the third set of employees in FYE 2021. Eachdispatched employee creates their own career plan prior to
departure, and receives regular advice and support throughinterviews with the Japan office and mentors, enabling them togrow through their international on-the-job training.

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

opportunities and offering mentor and leadership training.

LIXIL Group Corporate Responsibility Report 202042

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Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Our People > Talent Development

04
OUR PEOPLE

Overview of Talent Development
LIXIL Corporation’s talent development programs are

LIXIL Training System
Company-wide: improving fundamental skills

Company / division-specific: improving expertise

Next-generation education

❶

❷

❸

Career-support training

Company / function-specific trainings

Education for selected employees

designed for employees in all layers to improve fundamental
skills, develop stronger expertise, and grow as next-

Our People

generation managers. We have three types of virtual
educational institutions, which are all intrinsically linked.

Basic School for Improving Fundamental Skills

Diversity & Equal Opportunity

1

Rewarding Workplaces

This training system is designed to help employees at each level

Talent Development
Occupational Health & Safety

Essential
skillstrainings

improve fundamental skills and offers learning opportunities to match
their enthusiasm for learning so they can acquire the necessary

foster flat communications and an open corporate culture.
2

S2/Es2 grade employee training

LHTJ

Young employee training
for year 1, 2 and 3 employees

LBTJ

New employee orientation training

LJC

LWTJ

Commontraining
for sales reps

Finance
Optional
trainings

competencies. Our communication skills training for each year group,in particular, focuses on developing the skills required to

New manager training

Englishlanguage
trainings

Professional College for Improving Specialist Skills

Distance learningIT

Online courses

HROpen training…

TAP-1*2

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

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

Each division offers its own training opportunities to

Basic School

improve specialist knowledge, with the aim of improving the*1 Planned and organized by individual companies/functions*2 Talent Acceleration Program

Professional College * 1

Next-Generation Seminars

comprehensive strength and specialist expertise of our businessdivisions and functional departments.
3

Next-Generation Seminars to Nurture Future
Company Leaders

Our Talent Acceleration Program (TAP) consists of three subprograms, and is designed to help employees in their twenties toforties foster management skills, a managerial mindset, and an
entrepreneurial mindset, all from an early stage. We also offer anoverseas MBA study program to help employees with managerial

Training and Education Support Programs Conducted in FYE 2020
Item

Training Summary

New employee training

Basic training for employees newly entering the company

Corporate position-specific training

Training to develop skills and capabilities required at each position level

Talent Acceleration Program (TAP)

Training to nurture next-generation management personnel

72

Management training

Training for employees being promoted to management positions

373

Division training

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

experience to enhance management skills and develop aninternational outlook.

Participants

389
1,393

38,339* Scope: LIXIL Corporation only. Talent Acceleration Program (TAP) covers LIXIL Corporation and its subsidiaries.

LIXIL Group Corporate Responsibility Report 202043

Commitment

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Our People > Talent Development

04
OUR PEOPLE

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

Offering Diverse Educational Programs

Career Development Support

communicating what they expect from individuals. Managers
also hold regular one-on-one interviews with their employees

LIXIL Corporation is strengthening career development

LIXIL Corporation’s career-support training programs, started

during each evaluation period to foster motivation andand training for employees of all ages as part of its

in FYE 2017, are developed for all managers based on themutual understanding. To secure fair evaluations, we sharecomprehensive human resource program, Kawaranaito

understanding that the best supporters for realizing employees’

our policies and approach to the evaluation process with our

LIXIL, to revitalize its business in Japan. In FYE 2020, we

career ambitions are their managers. The programs provide

employees through the Personnel Evaluation System Manual

launched the LIXIL MANABO! learning management systemmanagers the right mindset and skills for helping staff develop

and position-specific training programs.

as part of our drive to build an environment in which any

their careers, as well as for solving daily management concerns.

employees can study whenever they want to.

In addition, we support both individual and organizational

LIXIL Water Technology (LWT) Americas offers agrowth through our open-recruitment job posting system forcomprehensive LWTA University training program to satisfy

internal open positions. This seeks to encourage the cross-a diverse range of employee needs. In addition to classroomfunctional movement of personnel, and to ensure the optimum

trainings, the program uses multiple resources such asplacement of employees in order to match the needs of specificwebinars, videos, and e-books to prepare a wide selection

business units with employee ambitions.

Performance Evaluation Flow
PE: every half year
BE: o nce at the
beginning of eachfiscal year

Draft theme and objectives

Agreement on theme and objectives

Self-assessmentof courses, ranging from general courses on fundamental
business skills such as leadership and management,
through to specialized courses in specific fields such as

Evaluation Frameworkcompliance, environment, occupational health and safety,

To ensure growth and positive results are fairly rewarded,

and product knowledge. LWT EMENA focuses on expanding

employees of all major LIXIL Group companies review theirits e-learning programs so that employees across a wide

performance against their goals with their direct manager,

geographical area can take the courses. Employees canand are evaluated by at least two managers at the end ofchoose from online learning programs on various topics fromeach fiscal year.

product-related knowledge, leadership, to compliance.

PE: every half year
BE: o nce at the end ofeach fiscal year

Training Hours

Training Costs

LIXIL Corporation

22.9 hours ★

66,474 Yen ★

LIXIL Group

11.27 hours

22,223 Yen* Scope: Directly hired employees only (Excludes Permasteelisa Group.
FYE 2020 data also excludes those working at consolidated subsidiaries
in Japan with 100 or less directly hired employees.)* Training hours include online learning

SecondSecond performance review meeting
Second performance review

Third

Third performance review meeting
Third performance review

Determination of final review rating

ways: through evaluation on individual performance over
Assessment feedback

the past half year, and through behavior evaluation to help
Name of Company

Initial performance review interview
Initial performance review meeting
Initial performance review

Under its evaluation framework revised in October 2019,
LIXIL Corporation assesses employees’ performance in two

Annual Training Hours and Costs per Employee (FYE 2020)

Initialnurture employees and encourage their personal growth. All
employees assess their own achievements against objectives
set at the beginning of the relevant evaluation period anddetermine final review rating by going through an evaluation
process. Managers seek to nurture their employees by giving
feedback in interviews on each employee’s performance and* PE and BE refer to performance evaluation and behavior evaluation,
respectively
FYE 2020 human resource performance data indicated with ★ have beenassured by a third party.

DATA

Scope and details(Supplementary Publication: Databook / 581KB)

LIXIL Group Corporate Responsibility Report 202044

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Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Our People > Occupational Health & Safety

04
OUR PEOPLE

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

Our Approachoccupational health and safety, all with the aim of achieving

The LIXIL Group, in our Group Charter of Corporate

Our People

Behavior, commits to promoting “the mental and physicalwell-being of all workers by prioritizing safety to realize

LIXIL Corporation has set up an Anzen Dojo where visitors
PDF


LIXIL
Group Occupational Health and
Safety Principles (41KB)

an ideal working environment without any work-related
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development
Occupational Health & Safety

accidents.” As for the measures we are pursuing to ensure
zero work-related accidents and zero occupational illnesses,

Anzen Dojo

ongoing improvements.
can simulate past occupational accidents. Fifty employees
from inside and outside Japan visit the Anzen Dojo 10 times
a year. Each technology business also boasts its own Anzen

Efforts to Eradicate Work-Related Accidents

Dojo offering consecutive training sessions for new hires andtransferred employees.

we have introduced an occupational health and safety

In order to prevent work-related accidents, all employees

management system and implemented a PDCA approachin the LIXIL Group are encouraged to comply thoroughly

to help prevent accidents at work. We also promote healthwith the rules. We also establish systems that enable eachmanagement for greater corporate value by enhancing

employee to predict danger and take action to prevent

Our logistics department held its seventh forklift safety

employee health.

accidents from happening.

competition in FYE 2020. Twenty employees from all

Forklift safety competition

over Japan competed in the competition designed to

Our System

Safety Meetingspromote safe driving and raise safety awareness across theworkspace.

Our occupational health and safety management system is

We hold cross-technology safety meetings three times a

based on the Occupational Health and Safety Assessment

year to share and help develop positive examples of how

Series (OHSAS) and involves implementing Group-wide

to ensure occupational safety. From FYE 2020, employees

policies and core rules and conducting internal audits.

in charge of safety at each business base have been

In FYE 2020, LIXIL Water Technology (LWT) conducted a

GROHE has adopted OHSAS 18001, and four of ourinvited to join function managers at these meetings forrisk assessment of hazard sources and highlighted ways tobusiness locations in North America are aiming to shift fromenhancing communication and the speedy development ofprevent accidents from an employee’s perspective.

OHSAS 18001 to ISO 45001 certification.

occupational safety ideas.

We submit monthly reports to senior management

Safety promotion function managers at each technology

detailing our initiatives and their performance in order tobusiness conduct legal compliance audits at all businesshelp promote occupational safety-related activities across thebases, obtain a good understanding of effective safety

Group. We operate specific health and safety management

activities at each location, and share that information

systems at each of our business bases and hold Healththrough the intranet or at joint meetings attended by

and Safety Committees on a single technology business or

representatives of each business base.

location basis. We also share and discuss issues related toHazard Source Risk Assessment

Training session Anzen Dojo

A forklift safety competition

LIXIL Group Corporate Responsibility Report 202045

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Strategic Pillars

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Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Our People > Occupational Health & Safety

04
OUR PEOPLE

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

0.12

Rewarding Workplaces
Talent Development
Occupational Health & Safety

0.10

0.46

0.44

0.40

0.08
0.33

0.31

0.30

Diversity & Equal Opportunity

0.54

0.52

0.50

Our People

0.26

0.06

0.25

0.04
0.021

0.014
0.013

0.019
0.012
0.004

0.012

FYE 2017

FYE 2018

because we believe it is important to ensure every employee

employee health support framework through which company

is physically and mentally healthy in order for us to build annurses facilitate collaboration between occupational physicians

enthusiastic, vigorous workplace.

and relevant departments.

We set up the LIXIL WELLNESS project in 2015 incooperation with the LIXIL Health Insurance Society to use
enhance employee health. The project focuses are to:

0.02

0.007
0

To implement these initiatives, we have established an

joint corporate and health union resources, and maintain and

0.20
0.10

The LIXIL Group promotes sound health management(Severity Rate)

0.60

Driving Health Management

FYE 2019

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

FYE 2020

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

OIFR*3 ★
FYE 2017

FYE 2018

FYE 2019

FYE 2020

-

0

0

0

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

Contractors

Scope: FYE2016 covers directly employed staff at production and non-production basesin Japan.
FYE2017 and FYE2018 cover directly and indirectly employed staff andcontractors at production and non-production bases in Japan and a majority of
FYE 2017 FYE 2018 FYE 2019 FYE 2020
overseas production bases.

Number of Work-Related Fatalities ★
0

0

1

0

Contractors

-

0

0

0

Scope: Covers directly and indirectly hired employees and contractors at
production and non-production bases in Japan and production bases
outside Japan (excluding some bases).
* Excludes Permasteelisa Group and LIXIL VIVA Corporation*1 Lost Time Injuries Frequency Rate (LTIFR): Number of occupational injury
cases involving days away from work / Total working hours × 1,000,000*2 Severity rate: Total work days lost due to occupational accidents / Total working
hours × 1,000 (Total work days lost means actual days away from work)*3 Occupational Illness Frequency Rate (OIFR): Number of occupational illness
cases involving days away from work / Total working hours × 1,000,000● Employees

Workplace「LIXIL WELLNESS（ウェルネス）」とは、LIXIL（会社）と LIXIL 健
康保険組合がみなさんの健康の為に連携を強化し、相互に資源や強保健師

Directly and indirectly
employed staff● Supervisors

みを活用する LIXIL 流の“コラボヘルス”を指します。
「LIXIL WELLNESS」を推進することにより、みなさん一人ひとりがこれまで以上にいきいきと健やかに毎日を過ごせることを目指します。
このパンフレットでは、「LIXIL WELLNESS」について、皆さんに● Occupational

physicians● Relevent

departments● Company

nurses● Health

Insurance
Society“知ってもらいたいこと”、“協力して欲しいこと”をお伝えします。

Brochure of LIXIL WELLNESSLIXIL WELLNESS health support framework

LIXIL Group Corporate Responsibility Report 202046

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Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Our People > Occupational Health & Safety

04
OUR PEOPLE

Health Maintenance Initiatives
Strict Smoking Ban
LIXIL Corporation and its subsidiaries decided to ban

Our People

to occupational physicians for private consultation. Any

We also work together with the LIXIL Health Insurance

workplace with 10 or more respondents that has been

Society to arrange health seminars given by external

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

lecturers on topics selected to suit the needs of individualplan sheet to resolve the underlying causes.

workplaces or job types. In FYE 2020, we held seminars on

We are also strengthening our mental health support systemvarious themes from protecting mental health to building

smoking on the premises of all business bases and facilitiesby allocating occupational psychiatrists in multiple Japanesephysical health, including, more specifically, how to prevent

in Japan from April 2020, and to forbid all employees frombases to facilitate a more targeted specialist approach.

back pain or falling down, and women’s health.

Health Education Programs

Health Promotion Events

We create programs tailored to specific employees such

Given the importance of daily efforts to maintain health,as new hires and supervisors, through which company

we work with the LIXIL Health Insurance Society to actively

smoking during working hours. This policy is designed toDiversity & Equal Opportunity
Rewarding Workplaces
Talent Development

help maintain and promote the health of our employees andall the other people who use our facilities.

Annual Medical Checkups

nurses provide information on topics such as mental health,encourage exercise. Since 2016, we have held our biannual

All employees undergo annual medical checkups, anddisease prevention, and improvement of health-related lifestyle

LIXIL Walking Rally as a way to encourage employees to

occupational physicians determine whether individual

factors. In FYE 2020, we held a total of 42 sessions with 1,168

develop their own exercise routines, drawing some 2,000

employees require arrangements specific to their jobs. In

participants. In particular, we ensure all newly appointed

participants each time.

addition, employees who exhibit health risks are encouraged

managers receive training on mental health management,

Occupational Health & Safety

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

to visit a medical institution to ensure early detection andas part of efforts to create work environments that facilitate

health promotion campaign, in which we seek to promote

treatment of any diagnosed illness. We are especiallythe early detection and treatment of mental health issues.

physical health by setting up courses that can help employees

rigorous in encouraging employees with high health risks

improve their diet, exercise routines, and daily life habits.

to visit medical specialists, so we can help them reduce
the risk of illness and support them to continue working

Supporting Return to Workin a healthy and safe manner. The LIXIL Health InsuranceSociety covers basic medical examination fees for both

We support employees’ return to work following sickness

employees and their dependents.

absence based on our Return to Work Program. From careduring absence to follow-up support after return, relevant
departments, supervisors, occupational physicians, andMental Health Measurescompany nurses align with each other to provide support
suited for individual mental and physical conditions.

We conduct annual stress checks as part of our mental
health support, with a response rate of 94.7% in FYE 2020.
Employees suffering from high stress levels are referred

Health seminar given by an external lecturer

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Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Our People > Occupational Health & Safety

04
OUR PEOPLE

Our People
Diversity & Equal Opportunity
Rewarding Workplaces
Talent Development

Setting Up Helplines

KENKO Kigyo Kai Participation

Overseas Cases

LIXIL Corporation has established a helpline offering mental

Maintaining and enhancing health is a challenge for all

To introduce a few of our international well-being promotion

and physical health advice through which employees canworkers, extending beyond the activities of any individual

activities, LWT & LHT Asia (LIXIL Thailand) created exercise

receive specific individual advice and specialist support fromcompany. The LIXIL Group is part of KENKO Kigyo Kai,clubs designed to relieve stress and promote healthcompany nurses via email or telephone.

an organization that aims for active and effective healthawareness that all employees can attend after work. The

The LIXIL Health Insurance Society has set up its own

promotion activities by sharing and utilizing healthmultiple clubs, ranging from badminton to futsal, attract overmental and physical health support line where employees

management expertise. We hope this association will

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

can seek advice via telephone, web, or face-to-face interview

develop into a group of leading companies in the healthholds a biweekly health promotion club to help relieve work-from external doctors and public health nurses not only

promotion sphere, and, by extension, set a strong example

related pressure.

about health and medical treatment, but also about child-for promoting health management in our society at large.

raising and nursing care.

Occupational Health & Safety

METI Health and Productivity Certification
The LIXIL Group is recognized under the 2020 CertifiedHealth & Productivity Management Outstanding
Organizations Recognition Program run by Japan’s Ministryof Economy, Trade and Industry (METI). This certification
recognizes our health maintenance and improvement
measures, including mental health education, exercise

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

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

promotion, and initiatives to help reduce the risk of lifestylediseases and other illnesses. LIXIL VIVA Corporation is also
certified under the same program.

FYE 2020 human resource performance data indicated with ★ have beenassured by a third party.

DATA

Scope and details(Supplementary Publication: Databook / 581KB)

LIXIL Group Corporate Responsibility Report 2020

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Commitment

05
ENVIRONMENTManagement & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan

ENVIRONMENT
We proactively pursue environmentally conscious initiatives across all of our processes
based on our earnest desire to help people coexist in harmony with our planet.

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

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Environment

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External Evaluation & Action Plan
Environment > Highlight05

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

ENVIRONMENT
CO2 emissions reduction attributable toGroup products and services

1.36

TargetEnvironmenttimes

CO2 emissions
from places ofbusiness (Scope 1 and 2)

Emission intensity
per unit of output
Target(Thousand t-CO2)
2,000

-7.5

(Times)
1.5

1.36

1.29

1.21

Climate Change Mitigation
and Adaptation

1.0

Sustainable Water Use

0.5

400

Sustainable Use of Resources

0

0

1.00

800

FYE 2016

Management of Chemical Substances

FYE 2019

FYE 2020

1,134

FYE 2021(Target)

1,132

1,063

565

587

525

1,043

(%)
0

94

96

61

62

547

567

538

503

FYE 2016

FYE 2019

FYE 2020

FYE 2021(Target)

96

-50

40

34
25

27

19

0

FYE 2018

Emission intensity per unit of output

FYE 2019

Japan and Europe

FYE 2020

Waste and other emissions(Million t-CO2)
150(Million m3)
20(Thousand t)
500

5

5

114

5

117

18.1
16.9

15

16.7
13.9

16.1
13.2

90

60

112

109

112

10

250

5

125

0

0

30

0

FYE 2018

FYE 2019

FYE 2020■ Category 11 (Use of sold products) ■ Other
Scope of coverage: Data covers a majority of the entire GroupFYE 2018

FYE 2019

FYE 2020■ Intake ■ Discharge
Scope of coverage: Data covers a majority of the entire Group* Excludes tenanted properties, etc. that we can’t access to assess the water intake

139

118

103

142

162

185

125

127

123

FYE 2018

FYE 2019

North America

411

407

406

375

FYE 2021(Target)Asia (excluding Japan)

Water usage

117

66

50

Scope 3 emissions

120

95

90

75

-20

-40

■ Scope 1 ■ Scope 2

(％)
100

-30

540

95%

(In Japan and Europe)

-10

-14.3

1,200

Target

-8.0

1,600

Environmental Management System-8%(v. FYE 2016)(v. FYE 2016)

Waste recycling ratio

FYE 2020■ Sold as valuables ■ Recycled outside the Group■ Landfilled or incinerated
Scope of coverage: Data covers a majority of the entire Group

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Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Environment > Environmental Management System

05
ENVIRONMENT

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

ENVIRONMENTAL MANAGEMENT SYSTEM
We are operating a Group-wide management system to reduce environmental risks and realize Environmental Vision 2050.

Our Approach

Our System

In 2019, the LIXIL Group updated its Environmental Vision

In order to promote Group-wide environmental activities, weto contribute to improving people’s comfort and lifestyles

established the Group Environmental Committee chaired

once a year, which is attended by the Group CTO supervisingand a better future for our global environment. We will doby the Group’s chief technology officer (CTO). The headenvironmental activities, and employees responsible forthis by reducing environmental impacts in all businessoffice environmental management department serves asenvironmental management from each business organization.

processes from raw materials procurement through the end-

the committee’s secretariat, overseeing all our businessAt the meeting, participants confirm the Group’s environmentalof-life of products. Based on the new 2050 vision, we aimorganizations, head office departments, and consolidated

policy, strategy, and emergency response process, which

to reduce carbon emissions from our business processes,

subsidiaries. The Group Environment Committee enlists thethey then share and implement in each of their individual

products, and services to net-zero, and to be a leader in thecooperation of the LIXIL Group executive officers andjurisdictions as a means of strengthening corporate governancefield of preserving water and limited resources for future

the Board of Directors, the Risk Management Committee,

and improving performance.

generations.

and the Corporate Responsibility (CR) Committee for its

The Group Environmental Committee holds a regular meeting

At the end of each business year, committee members meet

Realizing the Environmental Vision will require

activities. These activities focus primarily on establishing a

for a management review session where they look back onbuilding an effective Group-wide framework, whichGroup-wide environmental management system, including

the past year’s activities, formulate plans for the coming

includes an environmental philosophy, code of conduct,

promoting environmental strategies, organizing effective

business year, and revise the Group’s overall vision andand a management system. To lay the foundation for

management structures and reporting lines, and sharing andmedium-term targets.

environmental target setting, monitoring, and information

expanding organizational and regional measures.

disclosure, we established Performance Data Reporting
Guidelines in 2016 and have been implementing thembased on the LIXIL Group Environmental Sustainability
Principles. By developing this framework and foundation, we
are uniting the entire Group in reducing environmental risks
and realizing the Environmental Vision.

Group Environmental Committee

Internal TCFD study session during an environmental Committee meeting

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Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Environment > Environmental Management System

05
ENVIRONMENT

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

LIXIL Group’s Environmental Sustainability Principles

External and Internal Audits

Environmental Education and Internal Evaluation

Philosophy

The LIXIL Group operates an internal audit system covering

We strive to inform and educate employees at different

the entire Group. Our factories conduct internal audits inlevels of the Group about environmental initiatives. We

Striving to help people live in harmony with the earth,strict accordance with ISO 14001 standards and check the

conduct environmental training for new recruits, provide

the LIXIL Group is committed to continuing oureffectiveness and compliance of environmental management

Environmental Management System (EMS) training forenvironmentally sound efforts in every aspect of oursystems. With regard to non-manufacturing departments

EMS promotion managers and operators at each site, andbusiness activities.

and Group operating companies, we perform internal audits

distribute monthly reports on environmental trends to top

based on the standards set in our own environmental

management, including the Group’s directors, executive

management system and are gradually expanding

officers, auditors, and the CEOs of technology businesses.

Code of Conduct

the scope to include Group subsidiaries. We work to ensure• Continually improve environmental management systems
and performance

In addition, we evaluate and award environmental activities

the effective operation of our management system by

led by employees at each site. For top management, wefollowing up on all audit points and confirming

introduced a stock-linked compensation program that evaluates• Adhere to rigorous compliancethe implementation of improvements. From FYE 2018,

and further incentivizes their contribution to the Group’s• Develop and provide environmentally sound products andthe head office environmental management department

medium- to long-term improvement in corporate value,

started auditing employees responsible for environmental

including environmental performance. These mechanisms

management in all business organizations.

help promote environmental activities across the Group.

services• Reduce environmental impact in every process ofthe business operation• Proactively communicate with all stakeholders

We are promoting ISO 14001 certification of all production
sites to strengthen environmental governance acrossthe Group. Already, 71 sites have obtained certification, andPDF

LIXIL Group Environmental Sustainability Principles (50KB)

13 sites in North America are on track, which will bring theratio of certified sites to 91.3%
PDF

List of ISO-certified sites (55KB)

Environmental education for new hires

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Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Environment > Environmental Management System

05
ENVIRONMENT

Environmentally Conscious Design
LIXIL Corporation conducts an environmental assessment

Environmental Disclosure
Product-Related Environmental Assessment Stepsat each stage of the product development process to ensure

management decision-making by appropriately evaluatingcompliance with environmental laws, and to help reduce

Environment

We are establishing systems to assist environmental

Product planningthe environmental impact of products in all three lifecycle

Set environmental targets for new
products to be developed

stages: produce, use, and dispose.

risks and opportunities and clearly understanding
the financial impacts of climate change on our futurebusiness operations. Our head office environmental

Designing and testing

Compare each evaluation criteria against
standards and existing products

Environmental Management Systemmanagement department provides information to top
management derived from various analyses on regulatory
trends; carbon tax, emissions trading, and energy cost

Climate Change Mitigation
and Adaptation

Final confirmation

Final check of strong selling points

forecasts; and the estimated financial impacts of capital
investments and environmental measures. To promote

Sustainable Water Use
Sustainable Use of Resources

Eco product marketing

Showcase selling points in catalogs andother marketing materials using eco
labels and graphs

Management of Chemical Substances

environmental investment, we require calculation of carbon
reduction benefit in investment decision-making processes.
In March 2019, the LIXIL Group announced support for
the Task Force on Climate-related Financial Disclosures

Evaluation Criteria for Product-Related Environmental Assesment(TCFD), and has been disclosing information based on theStage

TCFD recommended items. In FYE 2020, we used the TCFD

Items to be considered

Eco product features

Reducing major component materials and parts

Resource-saving

Additional reductions from using recycled materials

Recycled material use

Efficient assembly and construction

Construction-saving

continue to help solve social issues through our business

Using lawful, sustainable wooden materials

Lawfully logged wood

activities, and work to further enhance our information

Reducing energy and water usage in everyday living

Energy- and water-saving

Improving performance using natural energy and zero energy use

Energy-creating / zero energy

Ease of maintenance and cleaning

Dirt-proofing, easy cleaning

profit the CDP, earning us an A, the highest grade, in CDP

Responding to sick-house countermeasures

F ☆☆☆☆ , etc.*

Water Security 2019, and A- in CDP Climate Change 2019.

Material recyclability of main component materials and parts

Recyclable design

Reusability of main component materials and parts

Reusable

Produce

Use

Disposeframework to conduct a scenario analysis of our window
sash and door businesses and net zero energy house(ZEH) business (see P** for results). Going forward, we will

disclosure that will enable us to build more trust with our
stakeholders.
We also respond to questionnaires from international non-

DATA

T
 CFD Index (Supplementary Publication: Databook / 581KB)WEB

Details about our CDP results* F☆☆☆☆ (four-star) is the highest rating in the formaldehyde emissions level rating scheme

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Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Environment > Environmental Management System

05
ENVIRONMENT

Response to the TCFD
In light of the LIXIL Group’s aspirations set forth inof our business to safer homes and lifestyles even more

Environmental Vision 2050, we analyzed the projected

important.

Steps of Analysis

impacts of climate change on our business in the year 2030.

Environment

In FYE 2020, we applied this analysis to our sash and door

Step 3

Step 1

Assess risks and opportunities

Step 2

Evaluate financial impacts

Step 3

Identify response measuresbusinesses and our ZEH business.
We will use these scenario analysis results to draft response

Environmental Management System

Step 1

Climate Change Mitigation
and Adaptation

We organized risks and opportunities by identifying

Sustainable Water Use

measures and formulate action plans. We also plan to apply
this scenario analysis process to other businesses in the
LIXIL Group.

the business impacts of climate change and climate
measures and assessing the size of those impacts qualitatively.

Sustainable Use of Resources
Management of Chemical Substances

Step 2Given the significant financial impacts of a carbon tax andassociated rise in fuel and material prices from a move toward

Risks and Opportunities Identified as High Impact in Step 1

decarbonization, we find it crucial to minimize such impacts
by investing in environmental technologies and driving
manufacturing innovation. Because natural disaster impacts

Expected business impacts
Category
Risks

Opportunities· Carbon tax sharply increases fuel taxes and electricity rates· Stronger regulations raise energy efficiency standards· Use of alternative and recycled materials is mademandatory· Increasing production efficiency reduces costs· Demand for ZEHs, high-insulation, and renewable energy
products increases· Increased demand for sustainable raw materials promotes
sustainability

Renewable energy policy· Demand declines because feed-in tariff and othersubsidies level out· Service markets related to ZEHs and renewable energy are
createdto realize a 2ºC scenario. Thus, it is important that we

Technology investment· Cost of investing in manufacturing processes rises· Innovation in manufacturing processes is encouraged

seize this business opportunity by increasing promotional

Market changes· Raw material prices rise

· Alternative materials are developed

Extreme weather· Cost of natural disasters grows· Supply chains are disrupted· Business opportunities for disaster risk-reducing products
expand· Implementation of BCP measures increases resilience

are expected to intensify in a scenario of worsening climatechange, we reaffirmed the need to conduct risk management
at each business site and build a resilient supply chain.

Regulatory strengthening

Our results also suggested a potential rise in demandfor ZEH-related products. An increase in energy retrofits ofexisting housing, in addition to new construction, is needed

communications to customers and responding to public
policy changes. Growing disaster risks may increase demandfor products that reduce these risks, making the contribution

LIXIL Group Corporate Responsibility Report 202054

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Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan

Environment > Climate Change Mitigation and Adaptation

05
ENVIRONMENT

Environment

CLIMATE CHANGE MITIGATION AND ADAPTATION
We have set out to achieve net-zero greenhouse gas emissions from business processes, products, and services.

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

We provide products and services with improved home insulation that help reduce heating and air conditioning demand as wellas ones that use renewable energy. We also provide IoT-enabled solutions for eco-conscious lifestyles and solutions that address
natural disaster and health risks of climate change.

RE-PLUS (TOSTEM)

Ecoful Shower (INAX)

LW is an innovative window product consisting of a large

While the level of thermal insulation of windows in newly

Heating water constitutes 24% of household CO2 emissions.

glass door that slides open sideways and a built-in frame

built houses meets Japan’s 2020 energy-saving standards

Reducing the amount of hot water used, therefore, isthat is almost invisible from inside the house. This productthanks to net zero energy house (ZEH) promotion activities

an effective way to reduce emissions. The impeller built into

offers high thermal insulation (heat transmission coefficientdriven by the Japanese government, this is not necessarily thethe Ecoful Shower’s showerhead is designed to close off half of

1.00W/(m2K))* through its aluminum-resin hybrid frame,case for windows in existing houses. RE-PLUS is a window

the showerhead’s holes while

Sustainable Use of Resources

which helps reduce CO2 emissions and energy consumption

product that enables existing windows to be replaced with an

spinning at a high speed.

Management of Chemical Substancesfrom heating and air conditioning. The built-in frame

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

As a result, the increased

provides a clear, wide view, and is designed to perfectly fit

existing window frames. Since introducing this product, weinternal pressure creates

the lines of the window frame. LW won the Nikkei Sangyo

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

Shimbun Awardby complementing the sliding-door window frame launcheddespite using considerablyof Excellence atin 2017 with a new frame for decorative windows in 2018.

less water. In fact, thisthe 2018 Nikkei

We are seeking to improve the level of thermal insulation of

showerhead can reduce

Superior Products

windows in current housing by extending the scope of windows

the amount of water used by

and Services Awards,

that can be upgraded, from sliding doors most commonly

48% compared to traditional

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

shower heads (10 liters/

Environmental Management System
Climate Change Mitigation
and Adaptation
Sustainable Water Use

2019 Construction

minute), thereby saving energy.

Materials andFacilities Grand Prize.
LW installed room

Built-in frame design* Calculated internally using JIS A 2102-1 and JIS A 2102-2 standards formeasuring the two-way thermal transmittance of Low-E green (5-10-1.311-5) model of sliding 16522 triple-pane glass (with krypton gas).

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

WEB

Replacement image

WEB

About the product (Japanese only)WEB

About the product (Japanese only)

About the product (Japanese only)

Cross-section
image

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Environment

Customers & Supply Chain

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External Evaluation & Action Plan

Environment > Climate Change Mitigation and Adaptation

05
ENVIRONMENT

Automatic Heating Faucet (INAX)

IoT-Enabled Smart Post Delivery Box (LIXIL)

Promoting the Construction of ZEHs (LTSP)

INAX’s Automatic Heating Faucet for public restrooms will

The growth of online shopping in recent years has increased

To help reduce household energy consumption,

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

the Japanese government has set a target requiring over 50%

water dips below the 21 to 26ºC range, which is considered

number of redeliveries as well, this is cited as reducingof new houses built by 2020 to qualify as ZEHs.* ZEHs are

comfortable for washing hands. This faucet also incorporates

labor productivity and increasing CO2 emissions. LIXIL

not expanding at the desired pace, though. To help address

our Ecoful feature, releasing the minimum amount of waterlaunched its IoT-enabled Smart Post Delivery Box in 2018,

this situation, LIXIL Corporation and TEPCO Energy Partner,

required for users to feel that they have cleaned their

which enables two-way communication between the box

Inc. established a joint venture company, LIXIL TEPCO

hands properly. This new method of ensuring the optimum

and a smartphone, sending notification of deliveries andSmart Partners Incorporated (LTSP), in September 2017.

temperature and volume of water for washing hands has

enabling users to accept multiple separate deliveries. In a

The company leases solar-power generation systems to

successfully reduced energy use by 92% compared todemonstration experiment conducted in 2019 in the Koto

customers who purchase LIXIL’s ZEH materials, and receives

traditional electric water heaters. As a result of its simple

and Edogawa districts of Tokyo, we confirmed the benefits ofincome from any surplus energy sold. In return, the actual

design and innovative, eco-friendly approach, the faucet

this product in cutting emissions through fewer redeliveries,

cost customers pay each month for their solar power generation

Sustainable Use of Resources

won the top award for excellence at the Environment andand plan to expand the product lineup going forward.

systems is zero yen. LTSP’s new Tatetoku Value service,

Management of Chemical Substances

Equipment Design Awards hosted by the Association ofwhich was launched in 2018 to help reduce customers’

Building Engineering and Equipment.

monthly electricity bills, won the Agency for Natural

Environment
Environmental Management System
Climate Change Mitigation
and Adaptation
Sustainable Water Use

Resources and Energy Director-General’s Award at the FYE2019 Energy Conservation Awards. We intend to use these
services to promote the spread of ZEHs, help customers live
comfortably and healthily, and help mitigate global warming.

Solar power generation system

Effective
cost:

Customer

0yen
Income from surplus energy sales

WEB

About the product (Japanese only)WEB

About the product (Japanese only)WEB* Stands for net zero energy
houses. ZEHs realizeboth a comfortableindoor environment anda substantial reduction
in energy consumption
with high insulation andhigh-efficiency equipment.
A ZEH also produces
energy with a solar orother power generation
system, thereby reducing
the annual net amount ofenergy consumption toalmost zero or less.

About the product (Japanese only)

LIXIL Group Corporate Responsibility Report 202056

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Environment

Customers & Supply Chain

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External Evaluation & Action Plan

Environment > Climate Change Mitigation and Adaptation

05
ENVIRONMENT

Promoting Energy Creation and Saving
Increasing Energy Efficiency

Environmentof renewable energy.

Installing High-Efficiency Cogeneration Systems

Using Renewable Energy

We aim to increase energy efficiency in manufacturing

We are installing equipment to improve energy efficiency in

We are also focused on using renewable energy to reduce

through site-specific initiatives, such as by identifying issues

production processes.

CO2 emissions.

in production processes and conducting equipment reviews.
Environmental Management System

We are promoting strict energy-saving activities in factories and offices, the development of energy efficiency technologies, and use

The Otani Plant in Aichi, Japan, for example, installed flow

Our GROHE production plant in Lahr, Southwest Germany,

LIXIL Corporation is generating and promoting the use ofhas replaced two inefficient boilers with a cogeneration

renewable energy by operating megawatt-scale solar power
plants in previously unutilized spaces at eight manufacturing

Climate Change Mitigation
and Adaptation

meters to quantify steam use, making it possible to identify thesystem,* contributing to an annual CO2 emissions reduction

location of leaks. In FYE 2020, it reduced steam use by 44%,of 2,550 metric tons. Our GROHE plant in Klaeng,sites in Japan. Together, these eight sites generate someSustainable Water Use

equivalent to 1,089 metric tons of CO2. The Shimotsuma Plant

Thailand, built a new eco-conscious building in 2017 that33,800 MWh of electricity annually, enough to powerin Ibaraki, Japan installed an IoT-enabled monitoring system

now operates high-efficiency production equipment. A

approximately 6,800 Japanese households.

on its combustion furnaces, which were difficult to improve

photovoltaic system on the roof helps cut an estimated 700

due to a safety concern. This system enabled more suitable

metric tons of CO2 per year.

Sustainable Use of Resources
Management of Chemical Substances

operation of the furnaces and a reduction in fuel use.
The Hokkaido Distribution Center in Japan began combining
freight with other companies in the industry to address poor

All GROHE plants and distribution centers around thewith partner companies by

metric tons annually. We also converted to 100% renewableworld were successfully certified according to ISO 50001

energy at the LIXIL headquarters, Kyoto showroom, andEnergy Management Systems by the end of 2016.

INAX MUSEUMS, achieving an annual carbon reduction of
2,000 metric tons. We plan to continue shifting to renewableloading efficiencies and a driver shortage — issues faced
across Japan. This helped reduce combined driving distance

In FYE 2020, all GROHE production sites achieved a shift
to renewable energy, reducing CO2 emissions by 48,000* A power generation system that uses a heat recovery unit to capture

energy across the entire LIXIL Group.

waste heat and turn it into thermal energy.

55,200 kilometers annually,a 22.7% reduction in CO2emissions intensity per
tonne-km. We are also
replacing existing lighting
at our Japanese factories
and distribution centerswith LED lighting. At least
95% of lighting has alreadybeen converted to LED.
LIXIL Kanto Distribution Center in JapanGROHE Lahr Plant in Germany

LIXIL Chita Plant in Japan

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Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Environment > Sustainable Water Use

05
ENVIRONMENTSUSTAINABLE WATER USE
The LIXIL Group adds environmental value to water resources through technologies that save, recycle, and purify water.

Enhancing the Water-Saving Features in
Products and Services

We provide products and services that reduce water consumption, such as water-saving toilets, water faucets, and smart water
controllers. Going forward, we plan to increase our offering of water quality solutions that draw on purification technologies.

Environment
SATIS (INAX)

Studio S Low-Profile Toilet (American Standard)

GROHE SENSE GUARD (GROHE)

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

According to a survey of European households conducted bywater-saving functionality, can save up to 73% of water

strict criteria for water savings, established by the US

GROHE in 2017, 54% of households have experienced someused compared to conventional toilets that use 13 liters ofEnvironmental Protection Agency’s WaterSense program,form of water damage such as those caused by water leakage.

water for each long flush. Its AQUA CERAMIC sanitaryware

and save nearly 20% more water than the standard criteria

In response, GROHE developed the remote-controllable

Sustainable Use of Resourcesmaterial repels waste during each flush, making day-to-day

set by the governmental organization. We seek to enhance

GROHE SENSE GUARD. Used together with a smartphone

Management of Chemical Substancescleaning easier and keeping it sparkling like new for 100 years.*

the variety of products to match consumers’ tastes,

app, it notifies users in the event of a burst pipe andincluding the Cadet PRO, a quality toilet at an affordable

automatically shuts off the water supply to minimize damage.

Climate Change Mitigation
and Adaptation
Sustainable Water Use* Or up to 70,000 back-and-forth scrubs with a toilet brush. Assuming two
scrubs on the same spot 365 days a year.

price, the Studio S Low-Profile Toilet, an ultra-highefficiency toilet, and Lyndon, a popular contemporarystyle toilet. The
bowl height of these
toilets also conforms
to the accessibility
height guidelines
as outlined by theAmericans with
Disability Act of
1990.

SATIS

WEB

AQUA CERAMIC

About the product (Japanese only)

Studio S Low-Profile Toilet

WEB

About the product

WEB

About the product

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External Evaluation & Action Plan
Environment > Sustainable Water Use

05
ENVIRONMENT

Environment
Environmental Management System
Climate Change Mitigation
and Adaptation

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

Saybrook Filtered Kitchen Faucet (American Standard)

GROHE Blue (GROHE)

Navish Hands-Free faucet uses the automatic Eco Sensor

Saybrook Filtered Kitchen Faucet, which introduces INAX’s

Using a specialized filter cartridge, the GROHE Blueto detect the presence of hands and other objects, enabling

filtering technology from Japan, can remove impurities

household water system dispenses chilled or carbonatedwater to be dispensed and stopped without touching thesuch as lead, chlorine, and small particles contained in tap

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

faucet. The faucet equipped with the sensor function also

water to provide safe drinking water, with an improved taste.

temperature water to a desired temperature. Given that as

separates hot and cold water, preventing unintended use of

Smaller than most and innovatively designed, the filter canmuch as seven liters are required to produce a single liter

hot water and energy. Users can save approximately 52%

be installed for easy access above deck at countertop level,of bottled drinking water, GROHE Blue also contributes toenergy and 31% water compared to conventional faucets.

or below deck on the inside cabinet wall, where its compact

the conservation of water resources. The system also helps

size doesn’t infringe on storage space. Easy access to clean

cut CO2 emissions by 61% compared to bottled water andwater helps prevent plastic water bottle usage and home

reduce plastic waste.

Sustainable Water Use

water delivery, helping to reduce the environmental footprint.

Sustainable Use of Resources
Management of Chemical Substances

WEB

About the product (Japanese only)WEB

About the product

WEB

About the product

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Society

External Evaluation & Action Plan
Environment > Sustainable Water Use

05

Improving Water Efficiency and Protecting
Water Quality in Business Activities

ENVIRONMENT

At sites that use water for manufacturing, we work to identify water-related business risks in each region and take appropriate steps
to improve water efficiency, recycle water, and manage wastewater.

Identifying Water Risks at Production Sites
Environment
Environmental Management System
Climate Change Mitigation
and Adaptation

In order to better understand local conditions and introduce

in FYE 2017. Thanks to the increased accuracy of evaluation

The LIXIL Group is promoting efficient water resource use

appropriate measures to address the problem of increasingly

tool databases, we have been able to conduct morethrough water recycling. In FYE 2019, we used 1,066,486

scarce global water resources, the LIXIL Group started

accurate risk-level assessment in each region and improvem3 of recycled water.

conducting surveys in FYE 2017 to identify water risks atenvironmental performance at each site. This brought the

68 production sites that use water in their manufacturing

number of high-risk sites to zero in FYE 2020.

processes. We used international evaluation tools such as theSustainable Water Use

Introducing Wastewater Recycling Systems

At our sanitaryware factory in Suzhou, China, forexample, we installed a water recycling system that treats

Because these evaluations focused on volume-related

manufacturing wastewater for reuse. Wastewater fromWWF Water Risk Filter and WRI Aqueduct to conduct datawater risks, going forward, we will look closely at risks

machining and plating is processed through a reverse

Sustainable Use of Resources

analysis and quantify local characteristics and the state ofrelated to water quality, regulations, and reputation to ensure

osmosis (RO) membrane filtration system* and fed back into

Management of Chemical Substances

water use. Now we are taking steps to install water recycling

sustainable operation of our production sites.

the production process. Through proactive initiatives at othersystems and use recycled water at sites identified as high risk

factories in Asia and North America where water scarcity
poses a serious risk, we will seek to further expand recycled

1%
Percentage of Production Sites by Water Risk Level

Water Risk Survey Results and Water Usage(FYE 2020)(FYE 2020)

water use and reduce our water footprint.

18%
0%
4%

0%

Total
37%

4%

15,476,000

Total

m

68 sites

38%
3

Water risk

Low

Low

0%

21%

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

15%

Total
48%

15,496,000
m3

37%

40%
Water risk

0%

2%

35%

High

Water risk

Low

High

High

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

INAX Suzhou factory in China

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External Evaluation & Action Plan
Environment > Sustainable Use of Resources

05
ENVIRONMENTSUSTAINABLE USE OF RESOURCES
We promote the sustainable use of raw materials across the entire lifecycle of our products, from procurement through production, end use, and product disposal.

Saving and Recycling Resourcesin Products and Services

We develop our products for long life and sustained value. We do this by using recycled raw materials, designing for durability andreuse, making functional parts of existing products replaceable and upgradable, and expanding our offering of products
as a service.

Environment
Environmental Management System
Climate Change Mitigation
and Adaptation

Wooden Decks Madefrom 100% Recycled Materials

Upgradable Design

Renting and Leasing
Comfortable Bathroom Spaces

KIRARA STAGE Mokucho is an artificial timber deck with

Some LIXIL kitchen faucets are designed so that just the spout

Our mobile bathroom product, withCUBE, solves thethe natural character of wood, made from 100% recycled

portion can be replaced with one that has a built-in water

bathroom challenges distribution centers and other work

materials. This range of decks uses medium-density

purifier. Upgrading is simple and takes only a minute. Thisfacilities face. This product as a service is available for rent

Sustainable Use of Resources

fiberboard (MDF) wood dust, which is generated from

eliminates the need to replace the entire faucet and reducesor lease, offering new ways to expand or renovate bathroom

Management of Chemical Substances

LIXIL’s wood-cutting processes and usually reprocessed

waste when the faucet reaches end-of-life.

facilities and thus improve workplace quality. It can be

Sustainable Water Use

as fuel, mixed with plastic collected and recycled by local

shipped as a completed bathroom space as high-quality

authorities.

as conventional bathrooms, and installed in as little as one
day.* And since it can be installed and removed withoutmajor construction, withCUBE can help reduce resource
inputs and waste from the product lifecycle.

Upgrading the spout
Completed deck image

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

KIRARA STAGE Mokucho (Japanese only)

Spout with built-in water purifier

WEB

Kitchen faucets (Japanese only)* Installation of withCUBE only. Preparatory construction to install water
and wastewater lines and electrical wiring may be required separately.

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External Evaluation & Action Plan
Environment > Sustainable Use of Resources

05
ENVIRONMENT

Recycling Resourcesin Operational Activities
Proactively Using Recycled Materials

Environment
Environmental Management System
Climate Change Mitigation
and Adaptation

We practice strict standards for the appropriate management and reduction of waste. In collaboration with stakeholders, we aremaking continued efforts to minimize new resource inputs and to further promote reuse and recycling.

Working with Stakeholders
to Eliminate Industrial Landfill Waste

Examples of Plastic Reductionin Packaging and Packing Materials

At GROHE water faucet factories, we carry out alloy smelting

The Nabari Plant in Mie, Japan has succeeded in selling its

As the marine plastic problem grows more serious, the LIXIL

in in-house furnaces, and use recycled brass collected in andpreviously discarded wood shavings as biomass fuel. This

Group is working to reduce single-use plastic.

outside the factories for this process. Around 70 to 85% ofrequired convincing wood suppliers to join an organization

the brass we use is recycled.

that certifies their timber as legally compliant and thenpackaging to paper, reducing the amount of plastic our

We changed the plastic used in INAX Aqua Powergetting its shavings approved by biomass power plants. The

customers throw away compared to similar products weto use more recycled aluminum. Refining aluminum toplant completed this system in April 2020, bringing its wood

have sold in the past. Eliminating clear plastic makes it

Sustainable Use of Resources

produce new ingots uses large amounts of electricity andshavings waste to zero.

difficult for customers to see the actual product in-store, soManagement of Chemical Substances

water. Reusing aluminum scraps, however, can drasticallySustainable Water Use

LIXIL Corporation factories in Japan are making efforts

Our factories in Rayong and Rangsit, Thailand, are also

we accentuated the printed image on the packaging to show

reduce the energy needed to manufacture aluminumworking to convert waste into resources. They successfully

products, thereby cutting CO2 emissions as well.

converted materials previously landfilled, such as sludge andOur distribution function has also launched a project tomold and ceramic scraps, into ingredients for making concrete.

reduce, reuse, and recycle stretch film used for transporting

This reduced landfill waste generated by the two factories

products. By making steady progress in reducing single-use

in FYE 2020 by some 47,000 metric tons (a year-over-year

plastic in transport alongside manufacturing and retail, we

reduction of 15.2%), raising

aim to achieve reductions

their recycling rates to 90.5%.

across our supply chain.

the product at its real-life size and colors.

TOSTEM THAI, meanwhile,
has earned a Level 4 ratingin the Thailand’s Ministry ofIndustry’s Green Industry
commendation system. The
company aims to attain Level
5, the highest rating, bybuilding an eco-conscious
network with suppliers andFeeding raw materials into the aluminum smelterbusiness partners.

Award ceremony for green industry
promoted by Thailand's Ministry ofIndustry

Paper packaging of INAX Aqua Power

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Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan
Environment > Management of Chemical Substances

05
ENVIRONMENTMANAGEMENT OF CHEMICAL SUBSTANCESThe LIXIL Group strives for appropriate management of chemical substances and reduction of substances of concern across all of its business processes.

Our Approach

Managing Chemicals
in Operational Processes

Reducing Substances of Concern
in Products

Since the 2002 World Summit on Sustainable Development(WSSD) agreed to aim to ensure “that chemicals are used and

LIXIL Corporation appropriately manages chemical

In new product development, we are prioritizing the

produced in ways that lead to the minimization of significant

substances in all its business processes in accordance with

reduction of substances of concern in our products inadverse effects on human health and the environment”

the local laws and guidelines stipulated by each market inaccordance with strong societal demands. We are also

Environmental Management Systemby 2020, we have witnessed a considerable strengthening

which it operates, such as the EU RoHS directive or REACH

working together with our business partners to findClimate Change Mitigation
and Adaptationin chemical substance management worldwide. The LIXIL

regulation.

alternatives to any substances of concern included in ourEnvironment

Sustainable Water Useexisting products.

Group has also introduced various initiatives across all of
its business processes to appropriately manage chemical
substances as well as reduce substances of concern

Sustainable Use of Resourcesthat can have negative impact on human health andManagement of Chemical Substances

environment, and contribute to improving people’s comfort
and lifestyles and resolving environmental pollution issues.
PDF

Design development

Procurement

Management of Chemical Substances (304KB)

Production

Our System
LIXIL Corporation’s corporate functions of Environment,
Procurement, and Quality partner with the Technology
function under the direction of the chief technology officer

Information sharing

We seek to reduce substances of concern inproducts based on the concept of Design forEnvironment, and lower the risks relating to them.

We obtain and manage information on
chemical substances from our business
partners, and use that information for handlingraw materials and providing information bothinternally and externally.
We seek to reduce and manage substancesof concern in manufacturing processes, andminimize the amount used in products oremitted into the environment, or the impact on
the health of factory workers.
We provide information on substances ofconcern to ensure comfortable product use,
and respond swiftly to customer inquiries.

Rank Guideline for the Control ofChemical Substances
LIXIL Corporation is implementing appropriate control ofchemical substances through its control guideline thatdetails any substances prohibited for use in its products andthose that may be used under strict management, as well as
how to handle them.
To further enhance our efforts, we have newly established
Chemical Substances Management Rank Guidelines inJanuary 2020 after reviewing List of the EnvironmentRelated Substances to be controlled by LIXIL Corporation,
which was established as a guideline in 2015.

to ensure appropriate management of chemical substancesin products. Based on the solid partnership, they workto establish a chemicals management framework for

PDF

L IXIL Corporation's Chemical Substances Management
Rank Guidelines (443KB)

LIXIL products (e.g., management infrastructure, strong
governance mechanisms), track regulatory trends related tochemical substances, and implement measures to ensure
appropriate management.
LIXIL Group Corporate Responsibility Report 202063Commitment

06

CUSTOMERS &SUPPLY CHAINManagement & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan

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

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

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Customers & Supply Chain

Environment

Society

External Evaluation & Action Plan
Customers & Supply Chain > Highlight

06

CUSTOMERS &SUPPLY CHAIN
Customers & Supply Chain

Highlight

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

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

Responsible Procurement Survey
Customersatisfaction

TargetResponsible Supply Chain
Management
Product Safety & Quality

100 (%)

Customer Satisfaction

75

70.5

70.6

73.5

FYE 2018

FYE 2019

FYE 2020

70%

Coverage ratio(based on purchased amount)Target90%

100 (%)

90

90

FYE 2018

FYE 2019

95

94

FYE 2018

97

90

75
50

(Japan)

25
0

70.0

FYE 2020

FYE 2021

89

90

FYE 2019

FYE 2020

FYE 2021

100

100

100

FYE 2019

FYE 2020

FYE 2021(Target)50
25
0

FYE 2021

100 (%)

Conformity rate

75

(Target)Target90%

50(Japan)25
0

Improvement rate of low-rated suppliers

100 (%)(Target)91
75

Target100 %50(Japan)25
0

FYE 2018

LIXIL Group Corporate Responsibility Report 2020

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External Evaluation & Action Plan

Customers & Supply Chain > Responsible Supply Chain Management

06

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

Our Approach & System
The LIXIL Group’s procurement is based on the Ten

Customers & Supply Chain

Principles of the United Nations Global Compact (UNGC)

Promoting Responsible Procurement That
Upholds the Environment and Labor Safety
The LIXIL Group is committed to responsible procurement.

We also conduct regular inspections of our existing partners.
The LIXIL Group employs the process outlined below todesignate important suppliers, which will be prioritized whenin the four areas of human rights, labour, environment, andanti-corruption. In accordance with the UNGC principles

Monitoring Existing Business Partners

Selecting New Business Partners

sharing procurement policies, conducting surveys, andchecking progress towards improvement.

Responsible Supply Chain
Management

as well as our Procurement Principles and Procurement
Compliance Policy, we seek to build sound partnerships

Our Supplier Assessment Standards used to select business

Based on transaction value, approximately 90% of LIXIL

Product Safety & Quality

with global suppliers to carry out procurement activities.

partners include criteria in the following areas: quality, cost,

Corporation suppliers are located in Japan, followed by China,

Our LIXIL Group Code of Conduct also specifies thedelivery, technical capabilities, and ability to deliver stable

Austria, and Thailand. For major suppliers in Japan, we holdethical behavior that is expected of all our staff, including

supply; environmental consciousness, such as sustainableannual meetings to explain responsible procurement policies

prohibition of bribery.

use of resources and proper control of chemical substances;and request cooperation with surveys.

Customer Satisfaction

Meanwhile, our Supplier Code of Conduct compiled inhuman rights; and labor safety. We require new business

FYE 2018 requires that suppliers respect human rights,

partners to understand and accept our Supplier Code ofobserve international labor standards, preserve the global

Conduct. Once suppliers are selected, we also conduct

environment, and ensure fair business conduct. At the sameassessments of their products.

time, we request that they demand equivalent standards
from their own suppliers.
Additionally, in January 2020, we created Green
Procurement Guidelines outlining our policy and standards

Primary supplier

LIXIL Corporation ascertains the compliance of new
business partners by checking written responses to surveysof labor management, occupational health and safety, anticorruption, and other practices.

for procuring parts and materials that exert the least impact
on the environment. We ask our business partners tounderstand and support our environmental initiatives andprocurement activities based on these guidelines.

Procurement Transaction Amount Breakdown by Country
Japan
China
Austria

PDF

Procurement Principles (92.9KB)

PDF

Supplier Code of Conduct (156KB)PDF

Green Procurement Guidelines (287KB)

Flowchart for Important Suppliers Identification

2.2%
2.2%
5.3%

0.5%
2.1%

Thailand
Other countries

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

Malaysia

Scope of application:
Suppliers to LIXIL Corporation andits subsidiaries* Excluding GROHE Group, American
Standard Brands, and Permasteelisa Group

Provides criticalcomponent/productNO

Meets criteria set in
our Supplier Principles

87.7%

YES
Important supplier

YES

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External Evaluation & Action Plan

Customers & Supply Chain > Responsible Supply Chain Management

06

CUSTOMERS &SUPPLY CHAIN
Customers & Supply Chain

Conducting and Following Up on
Responsible Procurement Surveys
The LIXIL Group identifies supply chain risks by conducting

suppliers and LIXIL’s procurement department, allowing

responsible procurement surveys and checking subsequentefforts to be focused on improving any problems that areprogress. Survey results form part of the basis for selecting

uncovered. The widening of the survey scope in Japansuppliers or determining whether to continue business withresulted in a lower conformity rate for FYE 2020, and wean existing partner.

are working to improve this rate by offering guidance on

Responsible Supply Chain
Management
Product Safety & Quality
Customer Satisfaction

Number of Responsible Procurement Survey
Questionnaire Items
CSR management

5

Fair business

12

Human rights

8

Labor

6

Occupational health and safety

7

Conduct responsible procurement surveys for chosen

Conservation of the global environment

7

suppliers, covering CSR management, fair business,

Contribution to the community2

human rights, labor, occupational health and safety,

Total

47

Details of the process are outlined below.

potential improvements.

Select suppliers to be surveyed based on previous year’s

specify and mitigate risks.

GROHE is also utilizing the same framework to help
1transaction value, etc.
2

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

Compile survey results, classifying suppliers with sub-

PDF

Survey form (447KB)

Responsible Procurement Survey Results

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

Activities

FYE 2018

KPI

Targets

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

Distribute Procurement
Principles, follow up
on survey results andrelated activities

to understand because it dovetails more closely with our
Supplier Code of Conduct, revised in FYE 2018, and enables
online responses. This has lightened the survey load for bothResults
90%

Targets
90%

Results90%

FYE 2020
Targets
90%

Results
97%

FYE 2021
Targets
90%

Japan

90%

Overseas*1

90%

Japan

90%

95%

90%

94%

85%

89%

90%

Overseas*1

80%

85%

80%

88%

80%

87%

-*2

Japan

100%

91%

100%

100%

100%

100%

100%

（581）

90%

（123）

90%

（697）

90%

（116）

90%

（1,212）

90%

（234）

90%

Total conformity rate

LIXIL Corporation reviewed its responsible procurement
survey in FYE 2019. The new 47-question survey is easierFYE 2019

Improvement rate

Scope of application: Suppliers to LIXIL Corporation and its subsidiaries. Figures in parentheses represent the number of applicable companies.
Japan: Procurement by operating sites in Japan, Overseas: Procurement by operating sites overseas*1 Excluding GROHE Group and American Standard Brands*2 Not decided yet as the scope is now under reconsideration

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Customers & Supply Chain > Responsible Supply Chain Management

06

CUSTOMERS &SUPPLY CHAIN
Customers & Supply Chain

Strengthening Support for International
Business Partners through Training
LIXIL Corporation provides training for procurement staff

training sessions, procurement departments at individual

at factories outside Japan as part of efforts to deepen

factories have started formulating their own plans, andunderstanding of responsible procurement and improvestrengthening their visits and the support offered tobusiness partner support.

business partners.
We will continue offering training designed to promote

Responsible Supply Chain
Management

Comprehending Social Demands
and On-the-Job Training

responsible procurement by improving the support eachfactory can provide to their business partners.

Product Safety & Quality
Customer Satisfaction

In FYE 2019, we conducted training for procurement
departments at our factories in China. Lectures led bymembers of the head office procurement department
provided information on the importance of responsible
procurement and related social trends, enhancing theunderstanding of the company’s challenges under our
Procurement Principles. In addition to that, personnel fromlocal and head office procurement departments jointly
visited business partner factories to provide on-the-job
training and assist with aspects requiring improvement.
Local staff commented on how the experience reinforced theunderstanding of the importance of CSR, and inspired themto utilize insights gained through the training to help theirbusiness partners with improvement activities.

Training Results: Each Factory Follows
Commitment by Business Partners
In FYE 2020, the factories that had received training in
the previous year followed up their business partners’commitments more widely. Using what they learned in the

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External Evaluation & Action Plan
Customers & Supply Chain > Product Safety & Quality

06

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 systems with the aim of eradicating serious product-related accidents.

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

Customers & Supply Chain

our customers and society. To ensure that this belief is shared among all employees,
we have published the LIXIL Group Quality Principles in 14 languages and arecontinuously pursuing excellence in product manufacturing and services aroundResponsible Supply Chain
Management

the world. Serious product-related problems make customers anxious and adversely

Product Safety & Quality

such as confirming legislative compliance based on the LIXIL Product Safety Principles.

Customer Satisfaction

affect our reputation. That is why we pursue product quality management initiatives
We will continue to enhance our product quality management systems, and work toensure our customers know how to use products safely.
PDF

LIXIL Group Quality Principles (106KB)

PDF

LIXIL Product Safety Principles (40KB)

Our System
LIXIL Corporation set up the Quality Assurance division in Technology function, which
reports directly to the company president, and works to develop robust companywide

Nurturing a Culture That Strives for Superior Quality Product Manufacturing
The LIXIL Group works to build a culture that focuses on enhancing quality throughout
the year, not only during the traditional Quality Month. We measured the level ofawareness of quality via a survey of all Group employees and embarked on a process togenerate further improvements.

Stimulating Daily Awareness and Sharing
Best Practices at Our Product Quality Forum
We have been using internal social media since FYE 2019 as one of
our tools for raising awareness year-round. We explain our Group Quality
Principles and post CEO messages, and we also proactively shareexperiences of actual cases that can be used as reference by individual
departments for improving quality going forward.
At our Product Quality Forum held each year in November, we reward standout
quality improvement initiatives selected from all LIXIL Group companies worldwide and share thoseachievements across the Group. In FYE 2020, we posted a video globally on our internal social media,
which attracted approximately 500 live viewers and was replayed by approximately 1,800 people.

product quality management systems and resolve any quality-related issues. The LIXILGroup has appointed a quality manager for LIXIL International who oversees quality
control outside Japan.
We have integrated important functions of development, manufacturing, and sales
into two of our technology companies, and strive to achieve ultimate quality in eachbusiness operation. We have appointed a chief quality officer (CQO) in each company
who oversees product quality department efforts to guarantee the quality of products
and after-sales services and resolve any quality-related issues. In addition, our sales
and services team in Japan manages individual quality management systems as afunctional department in the pursuit of quality customer service.
CQOs and other relevant members meet on a biannual basis at the LIXIL Group

All-Employee Awareness Survey and Action Plan
We conducted our first survey on quality awareness in
FYE 2020, targeting all employees at all Group companies
in Japan. We obtained a good grasp of how aware our
employees are about quality by targeting not only design
and production areas, but all other departments as well,including sales and corporate departments. We are now
formulating an action plan for each department based on thesurvey results. Looking ahead, we plan to conduct an annual
survey to check how successful our initiatives have been.

Favorable

Not favorable

Favorable score

Items onqualityawarenessquality management conference, and conduct regular management reviews.

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

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

better, readily understandable product explanations, including
experience-based showroom displays and online videos, in orderto ensure that customers select appropriate products. We also
have a customer service center to respond to queries.

Responding to Product Defects & Issues

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

Design & Development
During the development stage, we aim to strengthen our ability
to pinpoint fresh customer value by introducing techniques suchas fault tree analysis (FTA), failure mode and effect analysis(FMEA), and design review based on failure mode (DRBFM),
which are used globally to assess risks that may arise whenusing products.
Furthermore, to help conserve our environment, we areworking to expand sales of environment-conscious products,
and are actively developing our future environmental strategy
vision. We are also developing frameworks to ensure accurate
recognition of and compliance with local and internationallaws and regulations as we continue to pursue collaborative
development projects around the world.

Materials & Parts Procurement
We set quality standards to which our business partners must
adhere. We also design joint activity themes to help resolve
quality-related issues whenever necessary.

Commercialization, Production & Sales
We only commercialize products that have undergone andpassed rigorous stress tests and quality checks for durability,
weather resistance, and other properties. Products that require
specific labeling to indicate conformance with safety and quality
standards are clearly marked in our catalogues and other sales
materials as meeting required criteria. We also strive to provide

Stage Gate System
In product development, the LIXIL Group categorizes thevarious processes from research and development tocommercialization and merchandising into “stages” andplaces “gates” between transitions to subsequent stages.

We have a system in place for incorporating customer opinions withregard to product-related accidents and defects. We thoroughly
investigate the cause of any problem via the system andimplement improvements, not only in product design, but acrossall processes from manufacturing to retail distribution. In order toprevent product defects and problems, the improvement process
also covers not only pursuing organizational management to ensure
improvements are fully integrated, but also developing governanceframeworks to promote better management.

Under this system, we ensure evaluations are carried out
and management decisions are made properly. To raise
the level of completion in design, quality, and production,
the development, manufacturing, and sales departments
collaborate with each other at each stage of the development
process. The criteria for gate evaluation are also re-examinedon an ongoing basis to promote the development of evenhigher-quality products.

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

Materials &parts procurement• Quality terms-based procurement from our
suppliers• Joint improvement initiatives

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

Customer opinion

Safety design

Project start approval

GATE 2Business plan approval

GATE 3

Final business plan approval

GATE 4Market launch &mass production approval

GATE 5

Review

Safety checks

Monitoring quality
information
Responding to productdefects & issues

GATE 1• Reflecting customer opinions byinvestigating problems and implementing
improvement frameworks* The above concept is developed into practical working solutions by our
individual business divisions and regions.

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Responding toSerious Product-Related Accidents

FYE 2018

FYE 2019

FYE 2020

Number of legal infringements

1

1

1

Number of serious product-related accidents

3

8

7

At LIXIL Corporation in Japan, whenever a product-related
accident occurs, the product quality department collects

Customers & Supply Chain

Number of Legal Infringements andSignificant Product-Related Accidents

information within 24 hours of receiving notification, andsends an emergency notice to relevant departments. If

Emergency Procedure for Responding to Accidents
Accident occurs

Customer
Informan accident that could have a serious impact occurs,
the customer service center reports it directly to senior

Product Safety & Quality

cooperates with other departments to formulate on-sitemanagement to ensure a swift response. The center also
responses and thoroughly investigate accidents. We submit

Report major accidents
within 10 days

Customer Satisfaction

Department receiving the initial information

LIXIL

a report to relevant government authorities within 10 daysof an accident occurring as stipulated in Japan’s Consumer
Product Safety Act. We also seek to prevent a recurrence
by reflecting any lessons learned from accidents in product

Reportwithin24 hours

Responsible Supply Chain
Management

Personnel handling initial information
Serious Product Accident Committee
Regulatory reporting personnel

Consumer Affairs Agency

Cooperate

Relevant departments

Product quality department

ReportAuthorities

Customer service center
Initial guidanceFirst reportdesign, and proactively developing technologies that help
ensure accident prevention and safety.

RespondInformRequestmeeting

Investigate & compile aneffective response

RequestreportReportNational Institute of Technology & Evaluation (NITE)

Regarding suspected legal infringements, our technology
or other relevant departments will ascertain if an infringement

Materials Safety Act for approximately 450 employees in

has actually occurred, and submit a report to the authorities

different job types across 10 offices.

concerned. We follow a similar process for suspected legal
infringements as we do for product-related accidents, namely,
we conduct a thorough investigation of the cause and implement

Offering Information on How to Use
Products Safely

LIXIL Corporation provides product quality training tailored to

Today, houses are designed to last much longer than in
the past. In recognition of these changing trends, LIXIL
Corporation offers a maximum 10-year LIXIL Long-term

appropriate countermeasures to prevent a recurrence.

Product Safety Education

Long-Term Guarantee to Facilitate Long,
Safe Customer Use

The LIXIL Group publishes product-specific instructions for

Guarantee Service that enables customers to use products

all major products on the website to ensure safe productsafely over a longer period of time.

use, along with videos illustrating how to look after and clean
products to ensure appropriate use.

individual job types and levels. In FYE 2020, we conducted
product safety training for new technical-stream employees,

WEB

Product manuals (Japanese only)

and training sessions on Japan’s Electrical Appliance andWEB

How-to videos (Japanese only)

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

Raising Consumer Safety AwarenessAs part of its product safety-related activities, LIXIL

LIXIL Corporation creates opportunities for consumers to

Corporation has developed a safety training program inconsider how to ensure safety and prevent accidents in thecooperation with NPO the Association of Corporation

home, by conducting themed lectures on safety in the home

Responsible Supply Chain
Managementand Education (ACE) for fifth- and sixth-year elementaryat product safety seminars hosted by the National Federation

students, and provided this program free of charge to schoolof Regional Women’s Organizations and other consumer

Product Safety & Quality

teachers and educators. LIXIL employees also participate inorganizations. In FYE 2020, we held seminars at five different

this program, and, in FYE 2020, delivered 10 lessons at four

locations for approximately 490 participants. We also

schools to approximately 350 children. The program has won andelivered lectures to school teachers and consumer centers

Award of Excellence at the 9th Commendation on Instructionalon four occasions, attracting approximately 120 attendees.

Customers & Supply Chain

Customer Satisfaction

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

Product safety seminarWEB

Details about the activity (Japanese only)

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

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

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

Responsible Supply Chain
Management

and end consumers. Developing and providing

Product Safety & Quality

expectations and communicating effectively

Customer Satisfaction

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

products and services that fulfill customer
with relevant stakeholders are vital to improving
customer satisfaction. LIXIL Corporation’sMarketing function and Quality Assurance division
work consistently together to improve our products
and services based on customer feedback.

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

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

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Implementing the Six Sigma Quality
Management Method

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

Customer Service Center
100,000 inquiries /mth

LIXIL Corporation considers customer satisfaction

End usera significant element of its business activities. In order

Customers & Supply Chainand channel those opinions into creating better products

Product Safety & Quality

judgements based on instinct and experience, we focus on

Customer Satisfaction

Products

Services

General Product Information
Support Center
40,000 inquiries /mth
Outletpinpointing issues for improvement. Then, instead of making

300,000 cases /mth

Showrooms* VOC: Voice of Customers

facts derived from numerical analyses to help control any variation

Improvement activities

in our work and services, ultimately helping lead to quality
improvements. We have established a cross-functional team

VOC*
database

Contractor

and services, we have introduced the Six Sigma system.
This system involves listening to customer opinions andCS improvement activities(making effective use of customers’ opinions)

Repair Center
150,000 inquiries /mth

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

Responsible Supply Chain
Management

Analysis(visualization)WEB

Examples of service improvement through the VOC (Japanese only)

across Group companies to promote the improvement initiatives.

Reflecting Commercial Customer Opinions
in Our Products and Services
LIXIL Corporation conducts satisfaction surveys of ourcommercial customers. In FYE 2020, we achieved

Professional User Satisfaction of Products
and Support Services

Customer Inquiries（%）
90(Thousand)

(%)

500

100

400

80

300

60

200

40

100

20

80

satisfaction rates of 78.3% in terms of product quality,70

and 73.5% in terms of customer support (the average of60

satisfaction levels achieved by showrooms, call centers,
aftersales maintenance, and sales representatives).
We also collect approximately 300,000 comments from050

FYE 2018

FYE 2019

FYE 2020

Satisfaction level on product quality

customers each month through our customer service

Satisfaction level on showroom services

center and product information support center. This data is

Satisfaction level on services by sales reps

stored in our database and analyzed to encourage relevant

Satisfaction level on call center support

Satisfaction level on after-sales maintenance0
FYE 2018

FYE 2019

FYE 2020

Response rate
Number of inquiries (monthly average)
Inquiries: By phone, email or fax
Response rate: Number of responses / Total number of inquiries

departments to implement improvement measures andultimately boost the quality of our products and services. In

to customers who have recently contacted the center tomystery shopping surveys. We use the results to improve ouraddition, our customer service center sends a questionnairerate the quality of service received, and also conducts

communication and enhance customer satisfaction.

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Customers & Supply Chain

Training: How to Improve Customer
Satisfaction

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

commercial customers on window sashes, doors, exteriors,

Club in Japan, LIXIL Corporation is seeking to improve

kitchens, and bathrooms with the aim of improving end

customer satisfaction by providing information andconsumer satisfaction. We also conduct regular training

services that will enable customers to use purchased items

for employees to improve their level of knowledge about

comfortably and safely over a long period of time.

Responsible Supply Chain
Management

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

Examples of available services:

Product Safety & Quality

boost employee motivation by offering awards for excellent• Ability to extend guarantee period free of charge

customer service skills.

• Long-term guarantee service (additional payment required

Customer Satisfaction

for a five or ten year guarantee)

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

Construction trainingWEB

LIXIL Owners Club (Japanese only)

Carport foundation construction training

Recognition system
Award recipients of a regularly-held
customer service contest

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07
SOCIETY

Management & Material Issues

Strategic Pillars

Our People

Environment

Customers & Supply Chain

SocietySociety

External Evaluation & Action Plan

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

Society
Human Rights
Stakeholder Engagement
Community

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External Evaluation & Action PlanSociety > Highlight07
SOCIETY

SocietyHighlight

Stakeholder Engagement
TargetProactively engage with LIXIL' s key stakeholders.

Meeting with investors

Human Rights
Stakeholder Engagement
Community

回
357times357（ 2020 年 3 月 期 ）(FYE 2020)

LIXIL Community Day participants

approximately

15,000 employees(FYE 2020)

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HUMAN RIGHTS
We are committed to operating as a sustainable, responsible corporate citizen that respects human rights.

Our Approach & Principles
Based on the LIXIL Group Human Rights Principles, we strive
to uphold the human rights of all stakeholders, includingSocietycustomers, suppliers and other business partners, residents
living near our factories and offices, and our employees.

Human Rights
Stakeholder Engagement
Community

Human Rights Principles
LIXIL Group business activities are built on a fundamental
respect for human rights. The LIXIL Group Human Rights
Principles, established in March 2016, align with international
standards, including the International Bill of Human Rights,
the International Labour Organization (ILO) Declaration on
Fundamental Principles and Rights at Work, and the United
Nations (UN) Guiding Principles on Business and Human
Rights, and we seek to instill a solid understanding of theprinciples among all officers and employees. If there are any
discrepancies between the internationally recognized humanrights standards and the laws and regulations of individual

Other Principles

LIXIL Group
Human Rights Principles
Our commitment

LIXIL Group bases the formation of its corporate principles
upon a fundamental commitment to uphold human rights.
• Code of Conduct• Charter of Corporate Behavior

Our approach• Occupational Health and Safety Principles• Respect the human rights of customers• Respect the human rights in the workplace• Respect the human rights of business partners• Due diligence• Remedy• Education/instilling• Personal Data Protection Principles

Our engagement

WEB

Personal Data Protection Principles

PDF

Procurement Principles (93KB)• Cooperation with stakeholders• Reporting
PDF• Procurement Principles
PDF

Code of Conduct (3MB)

PDF

Charter of Corporate Behavior (48KB)

PDF

Occupational Health and Safety Principles (41KB)

LIXIL Group Human Rights Principles (76KB)

countries or regions, we adhere to the higher commitment.
If any contradictions exist, we seek a way of respecting
internationally recognized human rights standards while
complying with local laws and regulations.

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Our System

Human Rights Risk Management Process

LIXIL Group established the Human Rights Due Diligence
Task Force in FYE 2018, comprising members from a broad
range of departments including Corporate Responsibility,

Society

Human Resources, and Compliance, with the aim ofrights due diligence processes* as a company that operates

Human Rights
Stakeholder Engagement
Community

Commitment

Analysis & evaluation

Corrective action

Maintain a clear grasp of human rights
issues we face by communicatingwith stakeholders, and determine ourhuman rights principles and key issues.
Reflect human rights elements in othercorporate principles and policies.

Conduct human rights risk assessment

Pinpoint any human rights issues within

across our operations and supply chain,

LIXIL based on the results of our humanthe results of which will be analyzed andrights risk assessment, and implement

evaluated by the Human Rights Duemeasures to reduce human rights-

Diligence Task Force.

related risks.

Information disclosure

strengthening and ensuring strict adherence to humanglobally. Going forward, we will extend the scope of theseprocesses to the entire Group and provide transparent
reports on our performance. LIXIL Group has signed the UN

Regularly disclose relevant information
through our corporate responsibility
report and website.

Global Compact, and is a member of the Human Rights Due
Diligence and the Human Rights Education Working Groups

Concern-raising systemof the Global Compact Network Japan.

Receiving reports from materials suppliers, subcontractors, and other business partners* Human rights due diligence: 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.

Conducting consistent human rights training

CR Management Structure

As of March 31, 2020

Human Resources

Human Rights Due Diligence Task Force

Legal
Report

PA/IR/EA/CR*
Finance

CR Committee

Decision-making bodies

・LIXIL Group Board of Directors
・LIXIL Group executive officers

Report(Chaired by Chief Public
Affairs Officer)

Technology/Quality/Environment(Meets quarterly)

R&D

Officers in chargeMarketingTechnology Businesses

LIXIL Water Technology representative
LIXIL Housing Technology representative

ReportAdministrative office:Corporate Responsibility officeInstruction& support

Members:
Corporate Responsibility officeCompliance department
Risk Management department
Human Resources function
Quality Assurance division
Logistics・Procurement division

Each base
Each department

Instruction& support* Public Affairs/Investor Relations/External Affairs/Corporate Responsibility

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Commitment:
Human Rights Principles and
Key Human Rights Issues(1) Provide equal opportunity andprohibit discrimination

The LIXIL Group is working hard to strengthen our humanSociety
Human Rights
Stakeholder Engagement
Community(5) Ensure occupational health and safety
Providing employees, customers, visitors, business partners,

rights due diligence. After deciding our principles in FYE

Providing fair and equitable employment and otherand anyone else on our business premises with a safe and2016, we conducted risk mapping in FYE 2017 in ouropportunities irrespective of race, color, religion, national or

hygienic working environment that fulfills international,

Corporate Responsibility (CR) Committee, which is madeethnic origin, ancestry, age, disability, gender, pregnancy,

national, and/or industry-defined standards.

up of executive officers in charge of different head officemarital status, sexual orientation, gender identity orfunctions and representatives of our individual technology

expression, political or personal belief, or union membership,businesses. We invited human rights NGO Business forand prohibiting discrimination on these grounds.

Social Responsibility (BSR)* to present a lecture on social
trends relating to business and human rights and pinpointed

Providing a working environment that is free from

(2) Prohibit forced and child labor

any human rights risks in LIXIL product life cycles. Then
Prohibiting forced labor, bonded labor and other forms ofsought external consulting support to help create a survey

labor by restraint, indentured labor or prisoner labor, andsheet of 76 relevant items and conduct a test survey runlabor procured through slavery or human trafficking. Child

across our head office functions.

labor is also prohibited.

The LIXIL Group has investigated the extent of the humanthe results of the above measures, the LIXIL Group Code of
The Human Rights Due Diligence Task Force determined(7) Legal, fair, and transparent acquisition anduse of personal data
Complying with laws and regulations, internal rules, and(3) Respect freedom of association and collective
bargaining

Conduct, and global trends on human rights.
the following seven key issues that should be focused

discrimination, harassment and bullying of any kind, andany other offensive or disrespectful conduct.

in FYE 2018, our Human Rights Due Diligence Task Forcerights impact of our business operations by considering(6) Prohibit harassment

relevant guidelines relating to personal information. Ensuringpersonal information is obtained fairly and lawfully and isstored and handled in such a way as to prevent improper

Guaranteeing employee freedom of association andacquisition, use, transfer, disclosure, or leakage.

approving the exercising of collective bargaining.

on to help reduce potential human rights risks. Theseseven issues were submitted to and approved by the CR(4) Ensure decent wages and working hours

Committee, Board of Directors, and executive officers. The
key issues will be reviewed based on the results of our human

Paying wages that meet statutory standards, and prohibitingrights risk assessment to be conducted every three years.

exceeding the statutory maximum number of working hours.

* The human rights NGO BSR: A global non-profit organization thatspecializes in the development of sustainable business strategies andsolutions.

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Society
Human Rights
Stakeholder Engagement
Community

Analysis & Evaluation:

Corrective Action:

Specifying Human Rights Risks

Measures to Reduce Human Rights Risks

We are introducing several methods, centered primarily aroundhuman rights risks. Currently, we have not identified any

Going forward, we will continue developing initiatives to help

the investigations by our Human Rights Due Diligence Task

items requiring an urgent response, but we are working on

fully understand and reduce human rights risks through ourForce, to enable us to fully understand and address potential

improvements to help reduce potential future risks.

FYE 2021 human rights risk assessment. Furthermore, weare engaging in various activities to promote the upholding of

Method(responsible department)

Human rights risk assessment(Human Rights Due Diligence
Task Force)

Occupational safety audit(Quality Assurance division)

Employee opinion surveys(Human Resources function)

DetailWe conduct human rights risk assessment every three years. In FYE 2021, we are surveying our staff atsenior manager level or higher who work in departments that are closely linked to the key human rights
issues and who can provide global support. The assessment is based on a test run which was conductedin head office departments in FYE 2018 and covers the seven key human rights issues. We will analyze
the results of the assessment to fully grasp potential future risks and take action to reduce them.

(1) to (7)We conduct an annual occupational safety audit of Japanese bases through checklists, questionnaires,and onsite visits to confirm compliance status primarily with laws and regulations relating to the key
human rights issues. We audited 55 Japan bases in FYE 2020.
We are working on any necessary responses based on the audit results, and holding information-sharing
meetings between LIXIL Housing Technology (LHT) Japan and LIXIL Water Technology (LWT) Japan.

(2), (4), (5)We regularly conduct employee opinion surveys of all global employees. Each department seeks to make
improvements based on the survey results. We also reflect the survey results in our global strategies andmeasures for promoting diversity, inclusion, and other factors.

(1), (4), (5),(6)

CR
Community dialogue(Corporate Responsibility
office)Relevant
key issues

CR

Training• Compliance education and training for all employees• Convey human rights-related information on internal social
media that all employees can access• Hold seminars in the CR Committee run by human rights NGO
BSR

Employee Opinion Surveys (P40)

Our Japan-based factories and sales and retail bases seek to understand human rights and other risks
by conducting community dialogues with various local stakeholders. We have held more than 130 suchdialogues over the past eight years.

human rights and the addressing of human rights risks.

Preventing Human Rights Violations at Factories,
Bases, and Suppliers• Correct problems discovered during occupational safety audits(1), (2), (7)• Respond to opinions voiced through community dialogues(reduction of noise, improvement of factory working
environments, etc.)

 ocal Community Engagement: Community Dialogue in Factories and Sales andLRetail Bases (P91)• Confirm status of human rights initiatives through responsible
procurement surveys

Responsible procurement
surveys(Logistics・Procurement
division)

We confirm the status of human rights-related initiatives by asking our suppliers to complete aquestionnaire.
The surveys not only consider human rights issues, but also cover areas of CSR management, fairbusiness, labor, occupational health and safety, conservation of the global environment, and contribution
to the community.

CR(1) to (7)Conducting and Following Up on Responsible Procurement Surveys (P67)

Other relevant activity: Group enterprise risk management (ERM)

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Future Plans
Concern-Raising System

undergoing health checks, and recognizing employees’
preferences for either male or female uniforms (if factories• Concern-raising system that is available to all Group

Society
Human Rights
Stakeholder Engagement
Community

Human Rights Risk Assessment and Initiatives to
Reduce Risk

that allocate uniforms have the appropriate toilet andemployees, including those at subsidiaries outside Japanchanging facilities). We also launched WING NIJI office,We will conduct human rights risk assessment as detailed

We receive concerns through LIXIL Compliance Hotline –where we provide support for workers with disabilities andbelow, pinpointing issues that require addressing to reduce

Speak Up!, which is available online in 16 languages. In

create a comfortable working environment for all regardlesspotential risks, and take action.

Japan, we also have a direct reporting process for voicing

of ability or disability.
FYE 2021:

concerns to managers and compliance officers as well as an
option to report concerns via a third-party law firm.

CR

Three Strategic Pillars: Diversity & Inclusion (P27)

We are conducting a human rights risk assessment of staff at

CR

Diversity & Equal Opportunity (P34)

the senior manager level or higher who work in departmentsthat are closely linked to the key human rights issues and who

WEB    Concern-Raising System• Occupational safety

can provide global support (from July 2020).

We ensure appropriate management of working hours. We also

FYE 2022:

support the promotion of good health, encourage teleworking

Based on the results of our FYE 2021 human rights risk

In Japan, we have established a contact point via an external

and implement flexible shift systems in response to infectious

assessment and after examining the survey items, we will

law firm. We receive reports from overseas countries via thedisease outbreaks, and strengthen hygiene management.

conduct a human rights risk assessment of all employees.

• Receive reports from materials suppliers, subcontractors, andother business partners

LIXIL Compliance Hotline – Speak Up!
WEB    Receiving Compliance Information from Business Partners

CR

Occupational Health & Safety (P45)PDF

LIXIL's Response to COVID-19 (399KB)

Re-Examining Key Human Rights Issues
After conducting both surveys, we will re-examine the validity

Promoting Respect for Human Rights in the
Workplace

Advocacy and Community Support for Upholding
Human Rightsof the key human rights issues, taking into account the type,• Create workplaces that uphold diversity• Support UNICEF’s Children’s Rights in Sport Principles

Internal and External Information Sharing

We have a network of allies among staff who understand• Became the first Japanese company to announce support forand support sexual minorities. We view same-sex partners

the American Chamber of Commerce in Japan’s proposal to

We will inform employees and other stakeholders about the key

as spouses and create a comfortable working environment

recognize the right of sexual minority couples to marryhuman rights issues and related topics that LIXIL will address.

for all and apply certain human resource systems. This
includes providing leaves and payments for congratulatory

scale, and impact of potential human rights risks.

• Donate SATO Toilet Systems for developing countries to refugee
camps

or condolence events, arranging times and locations for

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

Our Approach
The LIXIL Group’s success depends on theSocietysupport of a broad range of stakeholders. We arecommitted to proactively engaging in dialogue

Customers

with all of our stakeholders, including customers,
Human Rights
Stakeholder Engagement
Community

Employees

business partners, members of the communities
where our operational facilities are located,shareholders and investors, and our employees
and their families, to collect and reflect theirBusiness
partners

NPOs & NGOs

opinions in our business operations and corporatesocial responsibility activities.

Relationship with Stakeholders
The LIXIL Group invites external experts toLocal
communities

hold sustainability workshops for the Corporate

Educational
andresearch
institutions

LIXIL
Group

Responsibility (CR) Committee, which consists ofexecutive officers from each functional division in thehead office and representatives from each technology
business. So far, we have held lively discussions
around various themes, such as contributing toShareholders& investors

Government
authorities

Sustainable Development Goals (SDGs) throughour business, and reflected the content of those
discussions in LIXIL Group initiatives.

Internationalorganizations

Industrial
associations

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SOCIETY

Key Stakeholder Engagement
Customers

Society
Human Rights

CR

Details (P73)

We incorporate customer opinions, and provide timely
and appropriate disclosure on our products andservices. We offer customer support via telephone,email, and 130 showrooms worldwide.

Stakeholder Engagement
Community

SuppliersCR

Details (P66)

We build and maintain strong relationships with our
suppliers by facilitating two-way communication. Basedon the results of our responsible procurement surveys,
we share our Procurement Principles, recognize
current circumstances, and follow through on promised
improvements. We also hold regular meetings with
suppliers to share information on regulatory trends andnew procurement strategies.

Local Communities

CR

Shareholders and Investors

WEB

Details

We held 357 discussions this year with investors
around the world to help promote sustainable growthand enhance corporate value. We disclose timely andtransparent information in English and Japanese throughour Annual Report (Integrated Report from FYE 2020),
our investor relations web pages, and the Tokyo Stock
Exchange website.

Employees

CR

Details (P32)

The LIXIL Group boasts approximately 76,000
employees. We strive to create an inspiring working
environment that encourages diversity and incorporates
employee opinions expressed through regular global
employee opinion surveys or discussions between theunion and the company.

Details (P88)

The LIXIL Group operates 97 factories worldwide. As a
responsible corporate citizen, in addition to respecting
local cultures and customs and creating responsible
products and jobs, we also contribute to the developmentof the communities in which we operate. We holdcommunity dialogues at factories and sales bases in Japanto encourage communication with local residents.

NPOs, NGOs, and
Educational and Research Institutions

Government Authorities andIndustrial Associations
Engaging in vigorous and transparent dialogue withgovernment authorities is necessary to shape asustainable society. As part of this process, we are
involved in several industrial and business associations
whose missions include engaging with public authorities
on behalf of their respective industries, including
window sashes, plumbing, and metals. Participatingin these associations helps keep us up-to-date withcurrent and pending changes in laws and international
agreements that may affect our business.
(Total political contributions: Less than JPY 1.1 million in
FYE 2018; Less than JPY 0.8 million in FYE 2019; Less
than JPY 0.3 million in FYE 2020)(Total fees relating to industrial associations and others:
JPY 97.6 million in FYE 2018; JPY 86.2 million in FYE
2019; JPY 64.5 million in FYE 2020)* ASD Americas Holding (American Standard) and GROHE Group(GROHE) have started to be included in the above calculation from FYE2015 and FYE 2017, respectively, following mergers and acquisitions,and Permasteelisa Group from FYE 2019.

We partner with non-profit organizations (NPOs), nongovernmental organizations (NGOs), and educationaland research institutions to facilitate research anddevelopment related to global sanitation, and support
environmental education for the next generation.

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SOCIETY

Society

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

with stakeholders to help promote its Three Strategic Pillars.

My Bottle Promotion Campaign● Global Sanitation & Hygiene

We are taking determined action for reducing plastic waste

Toilets for All Project

together with customers through our My Bottle Promotion
campaign. The campaign, launched in 2017, gives bottles

Human Rights
Stakeholder Engagement
Community

End-user customers, professional customers such aswith the LIXIL logo to customers who ask for a pricebuilding contractors, and LIXIL employees are participating

quotation on water filter faucet systems at our showrooms.

in our Toilets for All project, which was launched in 2017

LIXIL water filter faucet systems help reduce waterwith the aim of deepening understanding of sanitation

consumption and CO2 emissions through their Eco-Handles

problems in developing countries and encouraging

and other functions. People can reduce plastic bottle waste

improvements.

by filling their bottles with filtered tap water and bringing

In 2017 and 2018, for each LIXIL integrated shower toilet

them to school or the office.

sold, LIXIL Corporation donated one of its innovative SATO

In 2017, we have also distributed LIXIL bottles to all LIXIL

Toilet Systems to a country in Asia or Africa. Those donations

Group employees in Japan and replaced the taps in our

totaled 400,000 units over the two-year period, helping

offices across Japan with LIXIL water filter faucet systems to

improve the sanitation for some two million people.

encourage our employees to conserve water.

In 2019, we donated a portion of the sales of ourintegrated shower toilets to UNICEF through Make a Splash!

My Bottle,
My Style.

partnership with the organization. The donation totaled
approximately JPY 26 million, which is being used to build
the infrastructure to help install safe and sanitary toilets, andマイボトルに変える。
それは、一人ひとりにできる
エコアクション。

to raise awareness of sanitation in local communities.
WEB

Toilets for All Project (Japanese only)CR

Make a Splash! (P22)ペッペッ
トボトルを多く使う暮らしから、トボトルを多く使う暮らしから、
マイボトルを持つ暮らしへ。
マイボトルを持つ暮らしへ。
ひとつの変化が、地球環境によい影響を与え、ひとつの変化が、地球環境によい影響を与え、暮らしのクオリティまで高めていく。
暮らしのクオリティまで高めていく。
自分もはじめてみよう。
自分もはじめてみよう。
Children with the donated SATO toilets

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SOCIETY● Water Conservation & Environmental Sustainability

ventilation, and other ideas for creating living environments

THINK HEAT:
Let’s THINK about Eco- and People-Friendly
Temperaturesthat can help achieve both good health and environmental
conservation.

SDG House
LIXIL is cooperating on the SDG House project which tackles
SDGs in the housing sector to help achieve sustainable
cities and communities. The SDG House project has been

Society
Human Rights
Stakeholder Engagement
Community

THINK HEAT is a program that provides us diverse

designed primarily by professors Norichika Kanie and Hiroto

opportunities to consider with stakeholders the importance

Kobayashi from Keio University Graduate School and full-timeof indoor temperature, which can cause heatstroke or heatlecturer Norihisa Kawashima from Meiji University around theshock, and the efficient use of heaters and air conditioners,

concept of creating housing that offers ultimate comfort for

which account for approximately 28% of household energy

both residents and society at large. Under that concept, theconsumption. Our aim here is to help promote climate

team has built a model house that it hopes will become thechange mitigation and adaptation.

gold standard by 2030 by conducting quantitative testing

We also work with local authorities through our Cooland evaluation of SDGs-related impacts across all processes

Peace Project to build awareness of how to prevent indoor

from design through construction and operation.

heatstroke and install sunshade protection. In addition to

The SDG House, designed by Kawashima’s architecture firmholding a seminar on how to prevent indoor heatstroke in

Nori Architects, was completed in March 2020. Its passive

Kumagaya City, Saitama, we also worked with experts on someWorking with Kumagaya City on testing in houses

design utilizes renewable energy and incorporates various

verification testing in 2019 in houses of monitors of the city

ingenious features including energy conservation and energy

and uninhabited houses equipped with external Style Shadecreation measures, sustainable materials and construction

sun blinds, all to help prevent heatstroke in the city. We plan

methods, water conservation, natural disaster preparedness

to develop this project with other local authorities going forward.

and response, and IoT functionality. LIXIL has provided a

Our ECO Sharing through Windows Project, launched inrange of products that can help achieve SDGs including

Kyushu in 2019, is a cooperative initiative involving local

washbasins and system kitchens with Eco-Handles, thebusiness partners, local authorities, and customers in which

Resilience Toilet* that can be used during natural disasters,

we donated awnings to public child care centers for every

energy- and water-saving

fixed unit of CO2 we managed to reduce through the sale of

toilets, and bath units andthermal windows and other eco-friendly products.

exterior doors that offer

We also visit elementary schools to give lessons on thetheme of Healthy Living and Good for the Environment anda high degree of thermal
Conducting lessons in elementary schools in Saitama with business partners

have reached 2,720 children in 38 schools so far. In 2019,
we worked with local business partners on experiment- andexperience-based classes focusing on thermal insulation,WEB

 HINK HEAT: Let’s THINK about Eco- and People-FriendlyT
Temperatures (Japanese only)

insulation.
* Originally designed for public
facilities, so requires special
plumbing

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SOCIETY● Diversity & Inclusion

on transgender employment and toilet use and awareness of

Universal Run: Sports Prosthesis Experience Classtransgender issues. The survey results highlighted a clear need
to offer a more diverse range of toilet options and encourage the

Our Universal Run: Sports Prosthesis Experience Class
program, launched in 2017, provides children with aSociety
Human Rights
Stakeholder Engagement

Cooperating with Various Organizations

broader acquisition of correct transgender knowledge.
In addition, our Fact-Finding Survey on Public Toilet Usechance to enhance understanding of diversity. Thanks to theby Children with Intellectual or Developmental Disabilities thatcooperation of athletes who use artificial limbs in sports, thiswe conducted together with the Foundation for Yokohama

experience-based class and discussion offers an opportunity

Rehabilitation Services revealed several distinct findings,

to change the way children perceive people with disabilities.

including the fact that many such children feel they are not

To date, the class has attracted 16,600 students from 233

good at dealing with toilet dirt, odor, or sound and that they try

schools (as of Marchto get out of accessible toilet rooms. LIXIL is now considering

31, 2020). The classes

creating “spacious toilets” that can be used by both men

are organized together

and women that take into account any surrounding smells,with schools and local

sounds, and light in order to make them easier for children

authorities, and ourwith developmental disabilities and their caregivers to use in a

local employees join in

more relaxed manner. In fact, the spacious toilet solution could

the classes, too.

also fulfill other needs, such as elderly couples who need toCommunity

accompany each other into the toilet and sexual minorities.
WEBU
 niversal Run: Sports Prosthesis Experience Class(Japanese only)

UNICEF

Working together to promote safe sanitaryfacilities in Africa.

Japan
International
Cooperation
Agency (JICA)

Promoting field trials of the water-saving
Micro Flush Toilet System in Kenya.

WaterAid

Cooperating to improve the lives of people
living in areas without hygienic toilets,and compiled together a white paperthat analyzes the socioeconomic losses
associated with poor sanitation.

Toilet Board
Coalition

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

NPO
Nijiiro Diversity

Conducted awareness surveys with this NPO
to identify issues LGBT and other sexual
minorities encounter when using public
toilets, with the aim of creating a safe andcomfortable toilet space for all.

Board of
Education, Tanabe
City, Wakayama

Held toilet-related disaster preparedness
classes at Obo Elementary School in Tanabe
City in order to train junior volunteers to help
manage regional disaster preparedness.
Provided experience-based opportunities
for students to learn about the structure anduse of toilets such as our Resilience Toilet
that can be used during natural disasters.

Going forward, we intend to cooperate with variousorganizations to promote public toilets that are easy for all touse by developing a firm understanding of the toilet needs● Diversity & Inclusionof a diverse range of users

Survey on Toilets for Universal Use

such as wheelchair users,
people with infants, elderly

We conduct surveys on toilet use together with universities,

people, overseas visitors

NPOs, and companies in order to help realize a society

to Japan, ostomates, andwhich offers toilets that all people can feel comfortable andsexual minorities.

safe when using. We publicized the results of the following
two surveys in FYE 2020.
Our Study Group on All-Gender Use of Office Toilets
that we established together with Kanazawa University and
Comany Inc. surveyed over 30,000 people working in officesWEBP artnership with UNICEF

PDF

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

PDF S
 tudy Group on All-Gender Use of Office Toilets survey results(Japanese only) (1.9MB)WEB

T oilet Board Coalition

WEBA ctivities with the NPO Nijiiro Diversity (Japanese only)

PDF F
 act-Finding Survey on Public Toilet Use by Children withIntellectual and Developmental Disabilities (Japanese only) (1.2MB)

PDF

T oilet-related disaster preparedness lessons at Obo Elementary
School (Japanese only) (2.5MB)

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SOCIETY

Society
Human Rights
Stakeholder Engagement
Community

COMMUNITY
As a corporate citizen, we are working on various activities to help solve community-specific problems.

Our Approach & System
The LIXIL Group focuses on making a positive

LIXIL Community Day

social impact in priority areas including Global

Our LIXIL Community Day is a day when executives and employees from all workplaces and regions

Sanitation & Hygiene, Water Conservation &around the world take part in corporate citizenship activities relating to our three strategic pillars during

Environmental Sustainability, and Diversity &working hours. Employee participation in the LIXIL Community Day more than doubled in FYE 2020

Inclusion, as well as in areas where our expertisecompared to the previous year, with approximately 15,000 employees in 33 countries taking partcan make the biggest difference. Our CEO isin community cleaning, tree planting, school visit programs, recycling activities, and other projects.

a member of our Endowments and Consulting

Outstanding initiatives were recognized through the LIXIL Community Day Awards.

Review Committee, which meets regularly toWEB

Canal cleaning in MilanLIXIL Community Day (Japanese only)

screen, assess, and prioritize significant donations
and sponsorships in order to ensure our profits● Global Sanitation & Hygiene Category

contribute to society appropriately and effectively.

Raising awareness of the importance of sanitary environments through cleaning
activities in Indian schools

LIXIL India Sanitaryware, LIXIL Water Technology (LWT)
Asia Paciﬁc (India)

Community Development Expenditures

Providing girls in Kenya with handmade cloth napkins to enable them to go to schooland benefit from in-school educational opportunities during menstruation

LWT Japan (LWTJ) sales division, IT department, bathroom
business division, LIXIL Japan Company (LJC) (Japan)(Million Yen)FYE 2018

FYE 2019

FYE 2020

Charitable
donations

45.5

81.2

70.7

Community
investments

658.2

1,147.8

1,161.0

Commercial
initiatives

510.0

510.0

* FYE 2018 data excludes Permasteelisa Group* Categorization is based on the London Benchmarking
Group's Guidance Manual

520.0● Water Conservation & Environmental Sustainability Category
Making eco-bricks* from plastic waste and donating them to an environmental organization* Bricks made by filling empty PET bottles with used plastic bags

Taguig Office, LWT Asia Pacific (Philippines)

Cleaning canals in MilanGROHE Italy, LWT EMENA (Italy)

Conserving 144 drums of water (28,705 liters) in two weeks through various watersaving measures

LIXIL Housing Technology Japan (LHT-J) human resourcesand general affairs division (Japan)● Diversity & Inclusion Category
Providing food for people in need

S Sales, NC Retail Sales Ofﬁce, LWT Americas (US)Supporting communities by collecting and donating food, toys, and other goods

Singapore regional office, LWT Asia Paciﬁc (Singapore)● Let’s Do It Together Category
Recycling milk cartons and teaching about separating waste

LIXIL China, LWT Asia Paciﬁc (China)

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SOCIETY

Initiative Examples
Providing Safe Sanitation for Communities in Needwitnessed a further deterioration in its already insufficient

Solving Sanitation Problems in Nearby Communities

sanitary environment following the 2010 earthquake.

Society
Human Rights
Stakeholder Engagement
Community

SATO Toilet Systems are innovative, life-saving, low-cost

American Standard engineers worked with Plumbers without

LIXIL Americas is engaged in tackling sanitation problems

solutions that provide safe and hygienic sanitation for people

Borders (PWB) to teach students at Haiti Tec Technicalwithin the US. We donate LIXIL products to NGOs thatin developing countries. In addition to expanding the SATO

and Professional Training Center plumbing skills and how

provide accommodation for poverty-stricken families andbusiness to reach more people in Asia and Africa, the LIXIL

to improve hygiene. In addition, the company donatedveterans with disabilities. Teaming up with universities andGroup has been working on donation activities with non-

7,900 SATO products to towns and villages in Haiti andpublic agencies, we also worked to raise public awarenessgovernmental organizations (NGOs) to support communities

surrounding countries with the help of NGOs like PWB andof sanitation problems among residents of Lowndes County,

in urgent need, including disaster areas. We are committed

Food for the Poor. SATO products were also delivered to

Alabama, where 80% of homes are not connected to theto helping ensure a safe and sanitary environment as part ofsurvivors of the 2015 devastating earthquake in Nepal withpublic sewage system. Going forward, we plan to explore theour disaster relief efforts.

the help of NGO WaterAid. Through these activities, wepossibility of establishing local sewage treatment, and use

Inadequate or damaged facilities and insufficient humanare working to help provide access to adequate sanitation

our products to improve the facilities of 300 households.

resources in disaster areas exacerbate already poor sanitary

to people living in disaster-affected areas so that they can

Meanwhile, LIXIL Asia Pacific donated funds and American

conditions and the spread of disease. The Caribbean island

feel safer. In 2016, several thousand SATO products wereStandard products to a 500-bed facility set up to houseof Haiti, the poorest nation in the western hemisphere,delivered to Bangladesh with the help of Bangladesh Rural

people infected with COVID-19 in the Philippines.

Advancement Committee (BRAC), an international NGO
working to support people suffering poverty worldwide.

Joining Forces to Reduce Ocean Plastic

Year 2018 saw the launch of our Make a Splash!
partnership with UNICEF. Focusing on countries in Asia

GROHE supports the Pacific Garbage Screening project thatand Africa, we will continue working with UNICEF and otherbrings together an interdisciplinary team of natural scientists,

United Nations (UN) bodies, along with international NGOs

engineers, marine biologists, and architects working tosuch as WaterAid and Habitat for Humanity, to increase

collect plastic waste before it damages ecosystems inpublic awareness of the importance of safe and sanitary toilets.

oceans and rivers. Approximately 80% of marine plastic
waste originates on land and flows into the sea via rivers.

CR

Global Sanitation & Hygiene (P18)

The project seeks to develop floating platforms that can beCR

Toilets for All Project (P85)

placed at the mouth of rivers to extract plastic particles fromthe water.

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

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SOCIETY

Society
Human Rights
Stakeholder Engagement
Community

Turn Water into Food Program: Contributing toCommunities by Supporting Water Conservation

Alleviating Drought-Induced Water Shortages

The German-modeled, dual-track training program, which
provides students with technical knowledge and professional

At the request of the Indonesian government, LIXIL Indonesia

skills on sanitary installation as well as IT and English-

Since 2012, GROHE has been participating in the Water

has extended support for local residents who suffered waterlanguage skills, has been in place in Mumbai, India sincefor Life project, which seeks to reduce water usage

shortages from summer droughts, and provided approximately

2009. The program was then expanded to New Delhi andby introducing advanced technology and promotional

700m3, or 15% of water used by residents in summer.

the Tondo district in Manila, the Philippines. To date, overcampaigns in the Middle East and Africa, where water isextremely scarce.
Part of the initiative revolves around the Turn Water into

1,200 young people have taken part in the program, andYouth Empowerment: Sanitary Installation Skills
for a More Secure Future

Food program, conducted together with local food banks

near 100% of students have been placed in jobs upon theirgraduation. Training highly skilled installers also helps solve
local sanitation problems and therefore also contributes tosince 2015. In this program, GROHE purchases foodUnderprivileged young people in emerging countries often

the fulfillment of the UN Sustainable Development Goals

packages to donate to local families requiring support,

lack the opportunities to learn the knowledge and skills(SDGs), in particular Goal 6 “Clean Water and Sanitation.”equivalent in monetary terms to the amount of money saved

to secure stable employment, while at the same time theby introducing GROHE water efficient products. To date,

local society suffers a chronic shortage of skilled workers.

the program has provided food support to a total of over

GROHE addresses this issue through GROHE Dual Tech

2,710 families in Saudi Arabia, Egypt, Turkey, and Jordan.

training program, conducted in conjunction with Don

Additionally in Jordan, which was added in 2018 as a new

Bosco Mondo, a German non-profit organization (NPO)

LIXIL Americas also trains future plumbers through its Traderecipient country of the donation, water efficient taps werecommitted to providing education and professional training

Up program. As part of this program, we got together withintroduced in an all-girls high school, where schools arefor disadvantaged young people internationally.

Tools & Tiaras, an NPO involved in career training for female

among the top public spaces for large water consumption.

Career Training: Supporting Female Students
Interested in Construction

students interested in entering the construction industry.
LIXIL volunteer employees helped hold a summer campin New Jersey, the US, where one of our offices is located.
Tools & Tiaras provides job experience and mentoring
opportunities for female students interested in enteringa trade, such as electricians, carpenters, or plumbers,
all professions in which women have been traditionally
underrepresented.

Receiving food through the Turn Water into Food program

GROHE Dual Tech students at the training facility in Mumbai

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SOCIETY

Supporting Children

Local Community Engagement: Community
Dialogue in Factories and Sales and Retail Bases

Through its Christmas Tree Activity, GROHE staff helped

Society
Human Rights
Stakeholder Engagement
Community

We are currently using these ideas to develop new
initiatives and are keen to continue this opinion exchange sothat we can work to strengthen our relationships with local

three organizations: Two of them support children whose

At its factories and sales and retail bases in Japan, LIXIL

families struggle with poverty or alcoholism, the third of

Corporation regularly holds community dialogues withthem is a youth welfare service. The children’s wishes werelocal stakeholders, such as local authorities, neighborhood

hung on Christmas trees at the GROHE plants in Hemer andassociations, schools, NPOs, and local companies, on how

Porta Westfalica as well as at the brand’s headquarter in

we can cooperate and communicate with and give backDüsseldorf, and GROHE employees made the wishes cometo the community. We have held over 130 community

true. LIXIL Thailand also sought to strengthen community

dialogues in total since 2012.

communities and contribute to regional societies.
WEB

Details about Community Dialogue (Japanese only)

LIXIL Omotenashi Toilet Cleaning at Tourist Site
In 2014, Shikoku area staff started the LIXIL Omotenashi

bonds by fulfilling children’s wish lists at Christmas, andFor example, our Handa Plant in Aichi helps local day-holding several events to coincide with Children’s Day, incare centers with emergency evacuation procedures after aJapanese spirit of hospitality by ensuring that visitors werewhich it provided games and quizzes for about 375 local

principal voiced concern that the predominately female staff

greeted with clean toilets. As a toilet manufacturer andchildren and their families.

might not be physically capable of evacuating all the children

retailer, LIXIL has expanded this unique initiative to 60

safely on their own. LIXIL VIVA Corporation brought together

areas in 30 prefectures throughout Japan from Hokkaido toparticipants from community councils, schools, and centers

Kyushu. In FYE 2020, 2,378 employees cleaned toilets inproviding employment and support for people with disabilities,

320 public facilities together with local companies.

Toilet Cleaning at Tourist Site initiative to express theand facilitated an exchange of views on issues such as disaster
preparedness, employment for people with disabilities, andwork experience for junior high-school students.

Gifts given to children through the Christmas Tree Activity

Community dialogue (LIXIL VIVA)WEB

L
 IXIL Omotenashi Toilet Cleaning at Tourist Site initiative(Japanese only)

Toilet cleaning initiative

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External Evaluation & Action PlanSociety > Community

07
SOCIETY

Disaster Relief and Reconstruction Activities in Japan

Other Community Development Activities

LIXIL provides a variety of natural disaster support includingSocietyproduct and monetary donations. When typhoons Faxai
and Hagibis hit Japan in September and October 2019respectively, we carried out free inspections and adjustment

Human Rights
Stakeholder Engagement
Community

Environmental
conservation
activities

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

Cultural activities

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

Sanitation,
environment, anduniversal design
educational
activities

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

of LIXIL products, donated relief money and offeredemergency supplies in hard-hit areas such as Chiba.
Having provided LIXIL doors and windows for temporary
housing facilities in Iwate, Miyagi, and Fukushima as partof our activities to support the reconstruction effort after the
March 2011 earthquake in Northeast Japan, we subsequently
collected aluminum materials from those facilities that had
served their purpose, and recycled them to help makethe Tokyo 2020 Paralympic Torches. (LIXIL will serve as a
Presenting Partner of the Tokyo 2020 Paralympic Torch Relay.)
We have also applied our long years of experience indisaster response research to the development of our
Resilience Toilet,
which can beWEB

Environmental conservation activities (Japanese only)

WEB

Cultural activitiesWEB anitation, environment, and universal design educational
S
activities (Japanese only)WEB

Other Japan-based activities (Japanese only)used in the same
way as always
even during
times of natural
disaster or water
outage. We willcontinue to strive
to provide disaster
relief through our
products.

Paralympic Torch (Photo credit: Tokyo 2020)

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EXTERNAL
EVALUATION& ACTION PLAN

Management & Material Issues

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Our People

Environment

Customers & Supply Chain

Society

External Evaluation & Action Plan

EXTERNAL EVALUATIONS& ACTION PLAN
We display external evaluations and our FYE 2021 action plan.

External Evaluation& Action Plan
External Evaluations & Awards
Action Plan & KPIs

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External Evaluation and Action Plan > External Evaluations & Awards

08
EXTERNAL
EVALUATION& ACTION PLAN
External Evaluation& Action Plan

EXTERNAL EVALUATIONS & AWARDS
Evaluations of the Group and Subsidiaries
Award

Award

DJSI World Index (for the first time)
DJSI Asia-Pacific Index (for the third consecutive year)

S&P/JPX Carbon Efficient Index

FTSE4Good Index Series, FTSE Blossom Japan Index(for the fourth consecutive year)

2020 Health and Productivity Management Certification(for the fourth consecutive year)

MSCI Japan Empowering Women Index (WIN)(for the fourth consecutive year)

Eruboshi (L Star) certification(certified based on Japan's Act on Promotion of Women’s Participation
and Advancement in the Workplace)

S&P Japan 500 ESG Index(for the second consecutive year)

Silver in corporate catalog category, Japan BtoB Advertising Awards 2019
Given to our Water & Kitchen Technology Book vol.4, which includes overview of our CR activities

Nadeshiko Brand (for the third consecutive year)

Convention Excellence Award from Japanese Association for an Inclusive Society
Presented collaborative research compiled by the Study Group on Use of All-Gender Office Toilets

CDP Water Security A List Company(for the second consecutive year)

GROHE: German Sustainability Award 2019
One of the top three Most Sustainable Big Companies in Germany

Gold (the highest award level), Pride Index 2019
(for the third consecutive year)
Also selected for Best Practice award

GROHE: The B.A.U.M. Environmental and Sustainability Award
from Germany’s corporate network B.A.U.M.

External Evaluations & Awards
Action Plan & KPIs

LIXIL Group Corporate Responsibility Report 2020

Germanrman SustainabilityAward 2020
TOP 3 Germany’s Most
Sustainable Big Companies

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EXTERNAL
EVALUATION& ACTION PLAN

Evaluations of Our ProductsAward

Product or brand being awarded

iF DESIGN AWARD 2020

INAX, GROHE, LIXIL, TOSTEM, Kawashima Selkon Textiles
27 awards

External Evaluation& Action Plan
External Evaluations & Awards
Action Plan & KPIs

19 products from INAX, GROHE, American Standard, TOSTEM, LIXIL
2019 Good Design Awards

Parts for Daily Living Award,"CHO" MONODZUKURI Innovative Parts
and Components Awards 201913th Kids Design Awards

Good Design Best 100: INAX Resilience Toilet for natural disasters, INAX Wall Hung Shower Toilet Remote Controller (354-1768)
Good Focus Award: INAX Resilience Toilet for natural disasters

Water filter cartridge JF-K10, JF-K11

12 products
Excellence Award (METI Minister’s Award) in the Designs that Contribute to the Safety and Security of Children category:
INAX Resilience Toilet for natural disasters
PDF

2019 Construction Materials and Facilities Grand PrizeNews release (Japanese only) (646KB)TOSTEM LW

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ACTION PLAN & KPIS

EXTERNAL
EVALUATION& ACTION PLAN

GOVERNANCE

External Evaluation& Action Plan

Corporate GovernanceOn track

Develop Global Standard Governance
FYE 2021 targets

External Evaluations & Awards

FYE 2020 progress details• Restructure governance system as a company with nominating committee, and adopt and embraceglobal best practices.

• To ensure transparent processes and deliberation, we revised our existing regulations andimplemented some new ones after reviewing our corporate governance guidelines and regulations
concerning the Board of Directors in October and December 2019.
• Established Governance Committee as a voluntary and permanent committee under the Board of
Directors.
• Announced plans to merge LIXIL Group Corporation and LIXIL Corporation, which will strengthen
monitoring and supervision.
• Revised and clarified Nomination Committee’s systems and operations.

• Rebuild governance rules and procedures for all Group companies, clarify their execution, regulation,
and approval.

• Held governance seminars for Group companies in Japan.
• Revised jurisdiction rules to suit organizational changes in overseas Group companies.

Action Plan & KPIs

Needs attention
Progress level

ComplianceReorganize Group-wide compliance system and clarify compliance rules
FYE 2021 targets• Establish a system for conducting compliance reviews of appropriately defined business units at afrequency determined using a risk-based approach (annual or biennial).
• Establish an effectively functioning system by creating a framework to operate and improve our Groupwide compliance system and allocating appropriate resources (budget and human resources).
• Establish a system for holding compliance committee meetings or alternative meetings for eachappropriately defined business unit at least twice a year, and reporting the results in a timely mannerto the Group compliance committee.

FYE 2020 progress details

Progress level• Conducted the specified number of compliance reviews (at each overseas business unit), completed
reporting by March, and reflected the results in FYE 2021 measures.
• Established compliance committees or alternative meeting structures in all overseas business units.
Distributed compliance guidelines, including fundamental rules.
• Held meetings for each committee two to four times a year, submitted meeting agenda and minutes
to each compliance committee, and built a framework for timely reporting of meeting results to theGroup compliance committee.
• LIXIL Group compliance committee met four times a year.

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EVALUATION& ACTION PLAN

Strengthen compliance education and training across the GroupFYE 2021 targets• Maintain and improve Group Code of Conduct basic training and pledge mechanism.
• Create a central framework for planning and tracking history of compliance education and training.
• Basic training completion and pledge rate: 100%
• Training completion rate by region and employee level: 100%External Evaluation& Action PlanFYE 2020 progress details

Progress level• Basic training completion and pledge rate: 77.6%
98% in Japan, 53.7% overseas (LWT EMENA: 45.6%, Americas: 85.6%, APAC: 10.7%, LIXIL Africa:
99.5%, LBT: 3.1%, four LHT companies (G2J): 99.3%)* G2J is the abbreviation for Global to Japan. G2J factories are manufacturing facilities located outside
Japan that manufacture products for the Japanese market.
* Overseas data incomplete as pledge was delayed due to COVID-19 pandemic.
• Training completion rates by region and employee level were uneven; targets not achieved. Continue
to implement in FYE 2021.

Unify Group-wide concern-raising system and ensure familiarity
External Evaluations & Awards
Action Plan & KPIs

FYE 2021 targets• Ensure LIXIL Compliance Hotline — Speak Up! is well known and used as a common system acrossthe Group to track and manage concerns raised.
• Use Speak Up! as a point of contact for customers and business partners to raise compliance-related
concerns.
• Disclose important compliance indicators, including number and summary of concerns raised.

FYE 2020 progress details

Progress level• Familiarity with the internal concern-raising system in Japan: 63.3% (from compliance survey
conducted FYE 2019). Number of concerns raised: 240 in Japan, 145 overseas (Total: 385)
• Conducted compliance events in each region principally in October and November to promote
education and build awareness.
• Regarding number and summary of internal concerns, we are currently preparing the internal
communication of concerns lodged outside Japan, and external disclosure is still pending.

Risk Management
Establish a risk management framework that seeks to reduce the frequency and minimize the damage of critical eventsFYE 2021 targets

FYE 2020 progress details• Foster a culture in which risks are owned by respective executives (risk owners) in all globalorganizations. Encourage risk owners and the risk management, financial, and audit functions tocooperate in the promotion of risk countermeasures to control enterprise risks on a daily basis.

• Developed risk management systems in all Group companies.
• Reassessed important Group risks at the beginning of the year, evaluating them by region on aquarterly basis, and monitoring response.

• Cultivate a risk management culture across all global organizations to ensure timely escalation ofincidents, and formulate timeline-driven action plans to ensure appropriate initial countermeasures.

• Crisis management systems developed in all Group companies.
• Based on the crisis management system, crisis events that occurred in Japan and overseas were
escalated in a timely manner to the Group HQ.
• Created a handbook for local companies to ensure thorough initial response and Group-wide
implementation of the escalation rules. Distributed this to local managers via the risk manager
stationed in each region worldwide.

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EVALUATION& ACTION PLAN
External Evaluation& Action Plan
External Evaluations & Awards
Action Plan & KPIs

Information Security
Formulate and instill Group Information Security Policy
FYE 2021 targets• Ensure the ability to manage and measure activities formulated under the Group Information Security
Policy.
• Ensure the security incident response framework is functioning across the Group.
• Ensure prompt responses to changes in security-related environments.
• Ensure an up-to-date and fully acknowledged policy that complies with all local laws and suits
individual company circumstances.
• Update the content of security training for employees to reflect changes in the surrounding
environment.
• Implement an auditing and improvement PDCA cycle as a means of assessing security.

FYE 2020 progress details

Progress level• Reworked a number of detailed information security rules.
• Currently conducting information security assessments of five Group companies in Japan.
• Currently performing security assessments of overseas Group companies. GROHE assessment completed.
• Completed outline for LJSS incident response framework.
• Targeted email attack training: conducted twice for 20,000 employees*• Information security pledge: 30,000 employees*• Information security awareness training (e-learning): conducted for 30,000 employees** Targets: LIXIL Corporation, Group companies in Japan, Dalian factory, TOSTEM Thailand, and LIXIL Vietnam• Information security incidents: 0 incidents that caused real harm, 7 incidents of ID fraud• Set and agreed to common rules to encourage stronger global security.
• Strengthened cyberattack surveillance; Introduced managed security services (MSS) in APAC and Africa.

Intellectual Property Strategy
Introduce a Group Intellectual Property Management Guideline and an IP sharing system, and strengthen the global reach and function of the IP Committee
FYE 2021 targets• Maximize the value of the Group’s intellectual property by conducting PDCA for the global IP
governance structure and processes.
• Hold Global IP conferences to share strategies (at least twice a year).

FYE 2020 progress details

Progress level• Clarified global systems for IP functions and strengthened coordination framework.
• Determined and launched management policy for domain names and power brands.
• Conducted two global IP conferences with senior overseas IP managers (August 2019, February 2020).

Launch and explore an IP strategy pilot project and form a Group IP strategy
FYE 2021 targets• Determine a global IP strategy based on the growth strategies of each technology business.
• Prepare an IT infrastructure for implementing the global IP strategy.

FYE 2020 progress details

Progress level• Implemented an IP strategy pilot project.
• Decided to introduce a global IP administration platform, launched introduction project (February 2020).

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EXTERNAL
EVALUATION& ACTION PLAN
External Evaluation& Action Plan
External Evaluations & Awards
Action Plan & KPIs

FAIR BUSINESS PRACTICES
Anti-Corruption, Transparent Political Relations, and Fair Business
Determine Group-wide compliance policies, and conduct compliance reviews and compliance education and training
FYE 2021 targets• Create, communicate, and implement regional and national policies for areas that require them basedon global policies and guidelines.
• Establish appropriate review and application frameworks for procedures based on regional andnational policies.
• Establish frameworks for conducting compliance reviews by technology business or other appropriate
operational unit at the annual or biennial interval determined using a risk-based approach. Uncover,analyze, and respond to risks in corresponding policy areas.
• Establish fixed programs to help minimize the risk of corruption in the supply chain and distributors.

FYE 2020 progress details

Progress level• Achieved 100% coverage of global compliance policies and guidelines.
Coverage ratios by overseas business unit were uneven; targets not achieved. Continue to implementin FYE 2022.
• Training completion rates were uneven by region/specific compliance policy; targets not achieved• Number of compliance violations: 0• Conducted compliance reviews of overseas business units at the required interval, completed
reporting by March, and reflected the results in FYE 2021 measures.
• Determined global guidelines for implementing business partner due diligence. Plan to conduct
training in FYE 2021 and beyond.

OUR PEOPLE
Diversity and Equal Opportunity
Promote the active participation of women in the workplace
FYE 2021 targets

FYE 2020 progress details• Achieve at least 30% ratio of women among regularly recruited new hires (LIXIL Corporation, Japanonly).

• Ratio of female new graduates employed (incl. those who completed graduate studies): 30.5%• Achieve at least 8% ratio of women among managers (LIXIL Corporation, Japan only).

• Ratio of women among managers: 5.7%

• Achieve female participation rate in leadership training programs of at least 20% (LIXIL Corporation,
Japan only).

• Female participation rate in stage 3 of the Talent Acceleration Program (selective training for young
employees): 33.3%

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EVALUATION& ACTION PLAN

Rewarding Workplaces
Conduct regular employee opinion surveys across the Group targeting approximately 55,000 employees
FYE 2021 targets• Achieve engagement index of 39% (10% increase on the 35% score achieved in FYE 2018).

• Engagement index: 35%• Decided to conduct a different survey from the one illustrated on the left (see below) from now on.
Achieved engagement score of 56% (+10% y/y) in Japan telecommuting survey (response rate: 62%,
with sales offices, HQ, and divisions accounting for 64% of responses).
• Plan to conduct a Group-wide employee opinion survey at the end of July 2020. We seek to accelerate
the cycle of improvements by increasing the frequency of the survey from once every two years to fourtimes a year from FYE 2021.

• Achieve favorable response rate in the work-life balance category of 46% (10% increase on the 42%score achieved in FYE 2018)• Favorable response rate: 44%

External Evaluation& Action Plan
External Evaluations & Awards

FYE 2020 progress details

Progress level

Action Plan & KPIs

Hold regular discussions between the union and the company
FYE 2021 targets• Hold nine meetings of the Central Labor Relations Committee annually (LIXIL Corporation, Japanonly).

FYE 2020 progress details

Progress level• Maintain cooperation by promoting regular communication between the union and the company.
• Held nine meetings of the Central Labor Relations Committee over the year.

Create a staffing plan that encourages local employment and talent development
FYE 2021 targets• Achieve 100% fulfillment of our recruitment plan that aims to increase the number of local factory
employees (LIXIL manufacturing subsidiaries).

FYE 2020 progress details

Progress level• Achieved 94% fulfillment of the plan (216 people recruited, incl. 1 university graduate, 25 specialist
high school graduates, 17 junior college (two-year college)/technical college graduates, 173 highschool graduates).

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EVALUATION& ACTION PLAN
External Evaluation& Action Plan
External Evaluations & Awards
Action Plan & KPIs

Talent Development
Continue Talent Acceleration Program for next-generation leaders and optimize training programs
FYE 2021 targets

FYE 2020 progress details• Achieve 1,300 participants in the Talent Acceleration Program (TAP) for next-generation leaders(Japan only).

• TAP-1/2/3 participants: 70• Number of participants to date: 1,265• Achieve 100% uptake of initial three-year basic education (Japan only).

• Percentage uptake: 100%First year follow-up training: 192, second year communication training: 217, third year communication
training: 161

Progress level

Occupational Health and Safety
Build a common Group-wide occupational health and safety management system
FYE 2021 targets• Achieve 100% coverage of the occupational health and safety management system across the Group.

FYE 2020 progress details

Progress level• Achieved 100% acquisition of the occupational health and safety performance data (based on
number of employees).
• Conducted regular internal audits of occupational health and safety management frameworks andtheir operation at each business unit.

ENVIRONMENT
Environmental Management System
Build a common Group-wide environmental management system
FYE 2021 targets• Achieve 100% coverage of the environmental management system across the Group.

FYE 2020 progress details

Progress level• Achieved 100% acquisition of environmental performance data (offices covered).
• Conducted regular internal audits of environmental management frameworks and their operation ateach business unit.
• In process of obtaining certification of the environmental management system (ISO 14001) for all LWTAmericas factories.

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EVALUATION& ACTION PLAN
External Evaluation& Action Plan
External Evaluations & Awards

CO2

CO2

Climate Change Mitigation and Adaptation, Water Sustainability, and Circular Economy

Improve environmental value our products and services can offer and reduce environmental impacts across the entire process of our business
FYE 2021 targets

FYE 2020 progress details• CO2 emissions reduction attributable to Group products and services: expand by 1.36 times v. FYE2016• Pursue environmentally-conscious designs that consider the entire product lifecycle.
• Promote the sales expansion of environment-conscious products and services.

• CO2 emissions reduction attributable to products and services: expanded by 1.29 times (amount of
CO2 emissions reduced: 65,868 thousand t-CO2)• Benefitted from environment-conscious EMENA faucet business.
• Achieved solar-panel installation targets early with LTSP’s Tatetoku Value service.

• CO2 emission intensity from places of business across the Group: reduce by 8% v. FYE 2016
• CO2 emission intensity from transportation carried out in Japan by LIXIL as the consigner: reduce by 5%• Improve water usage efficiency at high-water risk bases.
• Achieve waste recycling ratio from places of business of at least 95% in Japan and Europe, 66% in Asia,and 40% in North America.

• CO2 emission intensity from places of business: reduced by 14.3% (Total volume down 6.3%)• CO2 emission intensity from transportation: reduced by 2.8%
• Achieved targets in three high-water risk bases.
• Waste recycling ratios: 96.2% in Japan and Europe, 90.4% in Asia, and 26.6% in North America• Began procuring 100% renewable energy at LIXIL WING campus and all GROHE factories.
• Achieved a great improvement in waste recycling at LWT Asia (Rangsit and Rayong in Thailand).

Action Plan & KPIs

Progress level

SOCIETY
Human Rights
Create LIXIL Group Human Rights Policy and promote awareness among all LIXIL Group employees
FYE 2021 targets• Implement human rights due diligence globally, and define and reduce LIXIL Group business-related
human rights risks for customers, employees, business partners, and other stakeholders.

FYE 2020 progress details

Progress level• Introduced various means focusing especially on surveys by Human Rights Due Diligence Task Force
to facilitate a better understanding and handling of potential human rights risks.
• Complemented existing measures by planning a survey of all employees focusing on LIXIL’s key
human rights issues and potential future human rights risks.
• Conducted compliance education and training directed at all employees.
• Conveyed information on human rights on internal social media that all employees can access.

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EVALUATION& ACTION PLAN
External Evaluation& Action Plan
External Evaluations & Awards
Action Plan & KPIs

Create a framework for human rights due diligence
FYE 2021 targets• Respond swiftly and sincerely to any human rights violations and instigate improvements, regularly
review human rights due diligence frameworks, and ensure highly transparent disclosure of due
diligence activities and processes.

FYE 2020 progress details

Progress level• Employed the existing concern-raising system.
• Maintained the Human Rights Due Diligence Task Force’s process decision-making approach andexchanged opinions at least once a year.
• Determined seven key human rights issues requiring a focused effort to reduce potential human rights risks.

Stakeholder Engagement
Help solve sanitation issues
FYE 2021 targets• Improve the sanitary environments of 100 million people.

FYE 2020 progress details

Progress level• Shipped 3.8 million units of our SATO Toilet Systems to over 38 countries, reaching 18.6 million people.
• Goal to reach 100 million people extended to FYE 2026 (from FYE 2021).

Research and develop products that can help solve social issues
FYE 2021 targets• Conduct 10 or more research activities using digital or other technologies.
• Contribute to society by publicly announcing some of our research results.

FYE 2020 progress details

Progress level• Conducted five research activities.
• Made two external announcements.
• Exhibited News from the Toilet, an AI-driven defecation management system for residents in elderly
care facilities, as a reference technology at the International Home Care and Rehabilitation Exhibition
2019 and Combined Exhibition of Advanced Technologies (CEATEC) 2019.
• Conducted Cool Peace Project, an awareness-raising initiative aimed at spreading knowledge on how
to prevent indoor heatstroke (monitoring indoor temperatures in regular houses, including elderly
households, and investigating the benefits of Style Shade sun blinds).

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EVALUATION& ACTION PLAN
External Evaluation& Action Plan
External Evaluations & Awards

CUSTOMERS & SUPPLY CHAIN
Responsible Supply Chain Management
Extend our CR procurement process from Japan to the entire GroupFYE 2021 targets• CR survey of Group-wide suppliers
Achieve coverage ratio of 90% in Japan, 90% overseas (based on purchased amount).
Achieve 90% conformity rate.*
Coverage area: Suppliers to LIXIL Corporation and its subsidiaries
Japan: Procurement at domestic operations, overseas: procurement at overseas operations* Overseas data undetermined as coverage area undergoing review

FYE 2020 progress details

Progress level• Coverage ratio
97% in Japan, 90% overseas*
Greatly expanded Japan survey coverage ratio in FYE 2020.
• Average conformity rate
89% in Japan, 87% overseas*
Will continue follow-up activities, and expect to achieve the targets as planned in FYE 2021
* Exclude American Standard Brands

Action Plan & KPIs

Product Safety and Quality
Make continuous improvements to the product quality management system
FYE 2021 targets• Maintain zero cases of serious product accidents across the Group.

FYE 2020 progress details

Progress level• Serious product-related accidents: 7(single gas stove: 2, side-hinged outward-opening window: 1, gate doors: 1, double-sliding windows:
1, sliding shutters: 1, general-purpose door: 1)• Conducted product-related crisis management meetings to make reports and discuss corrective actions.
• Filed information on accidents in the database and reviewed them one by one to determine if any
corrective actions were necessary. Carried out product improvements and awareness-raising on safe
use as necessary.

Monitor customer satisfaction levels and re-evaluate collected data for further improvements
FYE 2021 targets• Conduct customer satisfaction surveys on products and services across the Group, and continuously
monitor and disclose results.

FYE 2020 progress details

Progress level• Continued to conduct the surveys and expanded the scope to:1) product quality
2) showrooms3) call centers4) after-sales maintenance5) sales representatives• Customer satisfaction level: 73.5%

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Scope of Reporting

09
SCOPE OF REPORTING

SCOPE OF REPORTING
Coverage

Independent Practitioner’s Assurance Report

its stakeholders and achieve sustainable growth that benefits

This report covers the CR activities of LIXIL Group

LIXIL Group Corporation has received the independentsociety.

Corporation, as well as LIXIL Corporation and other operating

practitioner’s assurance from Deloitte Tohmatsu

subsidiaries.

Sustainability Co., Ltd. for FYE 2020 human resource

The LIXIL Group is committed to providing prompt andtransparent disclosure in order to earn the long-term trust of

Scope of Reporting

We advance our Corporate Responsibility (CR) activities
by establishing lasting relationships with our stakeholders

Please refer to the Supplementary Publication: Databook

performance data and environmental performance data

through appropriate disclosure, reporting, and dialogue. The

for the target organizations for human resource performance(only those environmental performance data that are

details of our CR activities are disclosed on our website. We

and environmental performance data.

disclosed in the Supplementary Publication: Databook)marked with a ★ icon.

also provide an update on our CR activities in our Annual
Report (Integrated Report from FYE 2020).
For information on our corporate governance policies,

DATA

Supplementary Publication: Databook (581KB)

Please direct queries on this report to:please see the Corporate Governance section of our website.
WEB

To Link to Our Site or for Other Questions and Comments

Reporting Period
We updated and published CR-related information for FYE
2020 (from April 1, 2019 to March 31, 2020) on October 30,
2020. We plan to update the report for the next fiscal year in
October 2021.

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Independent Practitioner’s Assurance Report10
INDEPENDENTPRACTITIONER’S
ASSURANCE REPORTINDEPENDENT PRACTITIONER’S ASSURANCE REPORT（TRANSLATION）

Independent Practitioner’s Assurance Report
Mr. Kinya Seto,
Director, Representative Executive Officer, Executive Officer and President, and CEO
LIXIL Group Corporation

Independent Practitioner’s
Assurance Report

October 27, 2020

Masahiko Sugiyama
Representative Director
Deloitte Tohmatsu Sustainability Co., Ltd.
3-2-3, Marunouchi, Chiyoda-ku, Tokyo

We have undertaken a limited assurance engagement of the Human Resource Performance Data indicated with ★ for the year ended March 31, 2020 (the “Human Resource Performance Data”) included in the “LIXILGroup Corporate Responsibility Report 2020” (the “Report”) of LIXIL Group Corporation (the “Company”).
The Company’s Responsibility
The Company is responsible for the preparation of the Human Resource Performance Data in accordance with the calculation and reporting standard adopted by the Company (indicated with the Human Resource
Performance Data of the Report).
Our Independence and Quality Control
We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior. We apply International Standard on Quality Control 1, Quality Control for Firms that
Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements, and accordingly maintain a comprehensive system of quality control including documented policies andprocedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Human Resource Performance Data based on the procedures we have performed and the evidence we have obtained. We conducted our limited
assurance engagement in accordance with the International Standard on Assurance Engagements (“ISAE”) 3000, Assurance Engagements Other than Audits or Reviews of Historical Financial Information, issued by
the International Auditing and Assurance Standards Board (“IAASB”) and the Practical Guideline for the Assurance of Sustainability Information, issued by the Japanese Association of Assurance Organizations for
Sustainability Information.
The procedures we performed were based on our professional judgment and included inquiries, observation of processes performed, inspection of documents, analytical procedures, evaluating the appropriateness ofquantification methods and reporting policies, and agreeing or reconciling with underlying records. These procedures also included the following:
・ Performing interviews of responsible persons and inspecting documentary evidence to assess the completeness of the data, data collection methods, source data and relevant assumptions applicable to the sites.
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in alimited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement.
Limited Assurance Conclusion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Human Resource Performance Data is not prepared, in all material
respects, in accordance with the calculation and reporting standard adopted by the Company.
The above represents a translation, for convenience only, of the original Independent Practitioner’s Assurance report issued in the Japanese language.

Member of
Deloitte Touche Tohmatsu Limited

LIXIL Group Corporate Responsibility Report 2020

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LIXIL Group Corporation
2-1-1 Ojima, Koto-ku, Tokyo 136-8535, Japanwww.lixil.com