CR Activities (FY2012-2015): Targets and Results
Overall ThemeTaskKPI

FY2015 Targets

FY2015 Results

Improve environmental management systems*1

Number of newly ISO14001 certifiedsites

・Prepare for the migration to FY2015
standards in FY2016
・Expand the number of ISO14001
accredited Group company sites inJapan・Completed prepations for migration
・12 LIXIL Logistics Corporation sites newlycertified

Establish a uniform method of evaluation ofenergy-saving products*2

Verified accuracy of evaluation
methods

Established a new Environmental Vision 2030.
Assess global energy efficiency
Set KPIs considering the benefits from CO2
achieved from energy-saving products
emissions reduction achieved through low-carbon
and set new targets
and water-efficient products.

Volume of energy efficiency (productenergy efficiency achieved v. 1990 xsales volume)

2.0 times v. FY2010 level

Reduce global environmental
footprint
Establish a recycling society

Contribute to reduction of energy consumption
by consumers in Japan through improving
performance and reach of energy-saving
Improve environmental performance products*2(Achieve the LIXIL Group's medium
Reduce overall energy consumption acrossterm environmental goal)procurement, manufacturing, sales anddisposal*1

Supply chain management*3
Establish a supply chain withconsiderate work environment andresource allocation

Volume of overall energy consumption Maintain 10% reduction v. FY2010

9.9% reduction v. FY2010

Reduce CO2 emissions at operational sites inJapan*2

Volume of CO2 emissions

Maintain 50% reduction v. FY1990

55% reduction v. FY1990

Reduce water use in manufacturing*1

Volume of water use

Assess level of global water use andset new targets

Created EHS performance reporting guidelinesand developed definitions of clean and waste
water volumes. Performance will be assessed
globally from FY2016.

% in terms of transaction amountJapan: Procurement at Japan
Share the LIXIL Group's procurement policy andJapan: 85% (15% of companies)
operational sites
guidelines with business partners
Overseas: 60% (15% of companies)
Overseas: Procurement at operationalsites outside Japan
Conduct questionnaire surveys and follow-up
activities% of conformance of surveyed items(%)

Incorporate lessons learned from previous
Number of new significant productaccidents and product-quality issues in therelated accidents resulting from ordesign stage and in training to avoid recurrencelikely due to product defects
and proactively prevent accidents.

Product safety*2

Continuously review product safety actitivies
and operations through regular dialogue withstakeholders

Number of product safety dialogues
conducted

Strengthen communication of information on
maintenance, product safety and accident
prevention

Discover, hire and nurture diverse talent

Promote a healthy corporate
culture, and efficient humanresource utilization*20 accidents

1 accident (A panel underneath the sink of akitchen system dropped)

4 dialogues

4 dialogues
1. Held the 5th LIXIL Product Safety Dialogue
with external industry experts
2. Engaged in 2 dialogues with comsumerorganizations
3. Engaged in 1 dialogue with a group ofuniversity professors

Number of communication activities to6 activities
customers

9 communications activities held:
1. Participated in 2 Product Safety Seminars heldby the Ministry of Economy, Trade and Industry(Hokkaido and Okayama)
2. Participated in 2 Consumer Education Festa
held by the Ministry of Education, Culture, Sports,
Science and Technology (Oita and Gifu)
3. Presented at 3 industry organizations (Tokyo:2, Fukuoka:1)
4. Issued 2 press releases on educational
materials for primary schools

Percentage of female management
staff

30% or above of managers appointed

30.1% of managers appointed

30% or above

37.4% of new recruits joining in April 2016

20% or above

22.5%

12 or more meetings a year

276 meetings

Host events and expand network

1. Held 4 forums, 6 workshops and a nationalsummit. Canvassed for examples of active female
staff (41 entries)
2. Encouraged self-development and expanded
the Women's Network significantly to include
manufacturing sites

Encourage use of the systems
implemented and ensure that theytake root. Explore other support
measures.

1. Assessed the extent of the use of spport
systems and promoted more active use
2. Explored various possible measures in the WLF
Advisory Discussion

Number of locations in which dialogues Hold dialogues at 22 sales locations
are heldand 5 stores

Held dialogues at 14 plants, 15 sales locations, 3stores and 1 other operational site (somelocations held more than 1 dialogue)

Number of children receiving
improvements to school toilets andeducational support

Improved school toilets and provided educational
support to over 1.2 million children in China, thePhilippines, Kenya, Vietnam, and India. Goingforward, rather than limiting ourselves tosupporting school toilets, we aim to improve
sanitary environments for 100 million people by2020, by expanding the simple pan-type SaTo
toilet operations as a sustainable business thatcan be scaled up.

Percentage of female regular new
recruits
Percentage of women participating inleadership training
Number of meetings held

Promote understanding of and hold educational
Build a vibrant, diverse workforce as opportunities on diversity
a solid platform for enhancing futureperformance

LIXIL Women’s Network activitiesEnhance support systems to encourage work-life Maintain and improve related systems
flexibilityand rules

Address global hygiene andsanitation issues

Hold dialogues with local communities

Provide children with clean and hygienic
environments. Cooperate with UNICEF WASH
program to help achieve the 7th UN Millenium
Development Goal.

Japan: 88.9% (27.4% of companies)
Overseas: TBA (42.2% of companies)

Japan: maintain 90% or above (46questions)Japan: 96.3%
Overseas: maintain 90% or above (66 Overseas: 98.6%questions)

Establish a safe productmanufacturing operation and aculture focused on product-safety

Partner with the society and localcommunities*1

1.37 times v. FY2010 level

Scope of activities:*1 Excludes companies that are within three years from integration*2 LIXIL Corporation only
*3 Suppliers to LIXIL Corporation and consolidated subsidiaries of LIXIL Group Corporation

Expand reach to facilities beyond
schools (Numerical targets underdiscussion)

Medium-term Environmental Targets

To achieve the mission that we set forth in our Environmental Vision, we switched from reducing carbon dioxide emissions
to reducing our energy consumption itself, setting ourselves the goal of reducing energy consumption across the entire life
cycle of our products. In other words, we will strive to reduce not only the energy consumed directly by our businessactivities, but also the energy consumed indirectly across the entire spectrum of influence of our products, fromprocurement of raw materials for manufacturing to the use and eventual disposal of our products by our customers. From2010 to 2015, we had set ourselves the following three medium-term environmental targets.

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

Energy consumption in the residential and commercial sector in Japan has risen steadily, reaching 4.837 billion GJ in 2009.
Poorly insulated houses with older fittings and equipment make up the majority of Japan’s estimated 58 million existinghouses, and are thought to account for most of the energy consumed by the residential sector.
Based on our assumption that the average energy efficiency of such houses stands at the 1990 level, we have defined theamount of energy that could be saved by replacing the products fitted in 1990 with the latest of our products as “energyreduction contribution,” and use this as a measure of our efforts to reduce energy in the household sector. We aimed toboost our energy reduction contribution for fiscal 2015 to double the fiscal 2010 level through further raising productperformance and broader use of those products in the market. Our energy reduction contribution in fiscal 2015 was 5.11million GJ, a 137% increase against fiscal 2010.
Moreover, since energy generation/saving products and water-conserving products continue to reduce energy
consumption until they are replaced or decommissioned, we estimate that our cumulative energy reduction contribution
from fiscal 2010 to fiscal 2015 reached 26.8 million GJ. By applying our technologies to our growing overseas products
business, we will also help to reduce energy consumption on a global scale.

Energy Consumption and Our Energy Reduction Contribution
in Japan’s Residential and Commercial Sector ★

[The LIXIL Group’s Energy Reduction Contribution Calculation Method]

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

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

Target 2
We will reduce our total domestic and overseas energy consumption related to procurement,
manufacture/sales, and disposal by 10% from the fiscal 2010 level by fiscal 2015.
We will implement policies to manage the energy consumed at each product life cycle stage, including improving the ratioof recycled raw materials at the procurement stage, improving production efficiency and making greater use of renewableenergy at the production and sales stages, improving the efficiency of the transportation stage through the use of
returnable packaging and compact packaging and improving product recycling at the disposal stage. Our total energy
consumption for fiscal 2015 was 56.1 million GJ, a 9.9% reduction from fiscal 2010.

Total Domestic and Overseas Electricity Consumption★
★
★

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

LIXIL Group operating companies in Japan and overseas, together with their consolidated subsidiaries andnon-consolidated subsidiaries under the management of operating companies, as of April 2015

Target 3
We will reduce the CO2 emissions of our Japanese sites to 50% of their fiscal 1990 level by theend of fiscal 2015.
Reducing our energy consumption to achieve Target 2 will also help to reduce the direct CO2 emissions from our businessactivities in Japan. Our total CO2 emissions from Japanese sites in fiscal 2015 amounted to 364,000 t-CO2, a reduction of55% from fiscal 1990 emissions.

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

[CO2 Conversion Coefficients Used to Convert CO2 Emissions］・Purchased electricity: Japan 0.378, China 0.764, Korea 0.489, Thailand 0.567, Vietnam 0.427, and Indonesia 0.653(kg-CO2/kWh)3・Natural gas: 2.108 (kg-CO2/m )・LPG: 3.002 (kg-CO2/kg)
・Kerosene: 2.492 (kg-CO2/L)・Fuel oil: 2.71 (kg-CO2/L)
・Diesel：2.624 (kg-CO2/L)
・Gasoline: 2.322 (kg-CO2/L)
・Purchased steam: 0.06 (kg-CO2/MJ)
Sources ：Guidelines for Calculating Greenhouse Gas Emissions for Businesses (Ministry of the Environment), 2005
GHG emissions from purchased electricity. Version 4.4 (World Resources Institute), 2012★：The LIXIL Group Corporation has received third-party assurance from the Deloitte Tohmatsu Evaluation and Certification
Organization for the data in FY2015.