LIXIL Group Corporation
CSR Management 2014

Reporting Period:
FY2013 (April 1, 2013 to March 31, 2014)
Applicable organizations:
Activities of affiliated companies, including LIXIL Group Corporation and LIXIL Corporation.
When the scope of application is limited for a particular item, this is pointed out in the notes, etc.
Cover image is Environmental education in Vietnam.

LIXIL Group Corporation CSR Management 2014
【INDEX】
CSR Policy

Environmental Activities

CSR Policy ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・03
CSR Promotion Structure ・・・・・・・・・・・・・・・・・・・・04
CSR Targets by Category and Results ・・・・・・・・・・・05

Environmental Principles ・・・・・・・・・・・・・・・・・・・・66
Environmental Vision ・・・・・・・・・・・・・・・・・・・・・・・67
Environmental Strategy ・・・・・・・・・・・・・・・・・・・・・68
Environmental Management ・・・・・・・・・・・・・・・・・72

Stakeholder Dialogue

Medium-term environmental Targets ・・・・・・・・・・76

Stakeholder Dialogue ・・・・・・・・・・・・・・・・・・・・11
Top Dialogue ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・11
Dialogue by Task ・・・・・・・・・・・・・・・・・・・・・・・・・・・11
Outline of Dialogues with Local Communities・・・・・12Material Balance ・・・・・・・・・・・・・・・・・・・・・・・・・・・80
Products and services
Eco-friendly design ・・・・・・・・・・・・・・・・・・・・・・・・84
Eco-product database ・・・・・・・・・・・・・・・・・・・・・87
Proposals to Our customers ・・・・・・・・・・・・・・・・・91

For Our Customers

Business Activities

Increasing Customer Satisfaction ・・・・・・・・・・・・・・14

Reducing Global Warming ・・・・・・・・・・・・・・・・・・92

Showroom Initiatives ・・・・・・・・・・・・・・・・・・・18

Recycling Resources ・・・・・・・・・・・・・・・・・・・・・・・93

Product Safety Initiatives ・・・・・・・・・・・・・・・・・・・・20

Preventing Pollution ・・・・・・・・・・・・・・・・・・・・・・・96

In Partnership with Our Suppliers

Compliance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・97

Procurement Policy ・・・・・・・・・・・・・・・・・・・・・・・・26
CSR Procurement ・・・・・・・・・・・・・・・・・・・・・・・・・・28

Intellectual Property Activities ・・・・・・・・・・・・・・・98

Communicating with Our Suppliers ・・・・・・・・・・・・29
Risk Management ・・・・・・・・・・・・・・・・・・・・・・・・・99
In Partnership with

Information Security ・・・・・・・・・・・・・・・・・・・・・・100

Society vand Local Communities
Water Resources Conservation Activities ・・・・・・・・31

Editorial Policy ・・・・・・・・・・・・・・・・・・・・・・・・・・・101

Forest Ecosystem Conservation Activities ・・・・・・・39
Participation in local Communities ・・・・・・・・・・・・41

Corporate GovernanceSee the Corporate Governance section on the LIXILIn Partnership with Our Employees

Corporation website

Basic Approach to Human Resources ・・・・・・・・・・44(http://www.lixil-group.co.jp/e/about/governance/system.htm)

Internal Communication ・・・・・・・・・・・・・・・・・・・・48

for information on the Corporate Governance Framework,

Promoting Diversity ・・・・・・・・・・・・・・・・・・・・・・・50

the Group Management Philosophy, Group Charter ofOccupational Safety and Health・・・・・・・・・・・・・・・53

Corporate Behavior and Internal Control Systems.

Creating a Better Workplace ・・・・・・・・・・・・・・・・・・56
Fostering Human Resources ・・・・・・・・・・・・・・・・・・60
Labor-management relations ・・・・・・・・・・・・・・・・63

1

CSR Policy
LIXIL has establisheda CSR Policy and a CSR promotion system
to ensure it makes greater contributions to therealization of a sustainable society.

2

CSR Policy
The LIXIL Group’s corporate social responsibility (CSR) initiatives are part of a process focused on realizing theGroup’s corporate philosophy, which aims to have “the Group’s superior products and services contribute toimproving people’s comfort and lifestyles.” Based on this corporate philosophy, we have set out CSR policies
under three priority themes: innovation, sustainable, and integrity. We signed the United Nations Global
Compact in July 2013. Aiming to respect the compact’s 10 principles in four areas, we have established“Exercising due diligence for human rights” and “Promoting procurement based on CSR” as themes for CSR
initiatives that we will begin advancing proactively in the fiscal year ending March 31, 2015.

CSR Policy
Link to Good Living—The LIXIL Group is committed to building and expanding worldwide “bonds” that lead to agood living and good life. Aiming to improve people’s comfort and lifestyles, we endeavor to pursue innovation todevelop better products and services, thereby contributing to the sustainable development of society.
In addition to our ongoing dialogue with stakeholders, we stand firmly committed to business activities rooted in
the concept of integrity.

Priority Themes

Planned Activities

1. To address the challenge of global climate change
and declining water resources, we will pursue
innovation in developing products and services thatwill help achieve a net zero energy balance in houses
and buildings as well as facilitate efficient use ofwater resources.

Innovation
1. Work to increase efficiency in the use of energy
and water resources
2. Work to build a senior-friendly, cooperation-basedsociety, focusing on healthy, safe and secure living
conditions

2. To address concerns over healthy, safety and secureliving conditions around the world, we will pursue
innovation in developing products and services thatwill improve sanitary conditions, mainly related toplumbing systems, as well as help build a society thatis senior-friendly and supportive of mutual assistance.

Sustainability
3. Contribute to conservation of the global
environment and development of local communities

3. To contribute to conservation of the global
environment and biodiversity as well as thedevelopment of local society, we will work to facilitatecommunication and cooperation with local
communities, NGOs and other organizations.

4. Ensure an appropriate work environment andresource allocation in supply chain operation

4. To ensure proper and fair operations of our supply
chain, we will work to facilitate communication andcooperation with our suppliers, with a focus on
creating an appropriate work environment andproper resource allocation as well as human rights
protection.

Integrity
5. Maximize customer satisfaction in cooperation withbusiness partners
6. Develop a corporate culture characterized bysuperb leadership and diversity

5. To ensure the safety and hygiene of our products
and services and maximize satisfaction of end users,
we will promote communication with customers andcooperation with business partners.

7. Promote speedy and transparent disclosure andshare social contribution visions with our
stakeholders

6. To help accommodate various social challenges, wewill develop a corporate culture that can foster strong
leadership, respect diversity in terms of nationality,
gender, race, age, values and others, and leverage ourstrengths linked to personnel diversity.
7. To win and maintain the trust of our shareholders
and investors and achieve sustainable growth insociety, we will promote speedy and transparent
disclosure of information and share our visions andplans for social contributions with our stakeholders tofacilitate mutual understanding on this issue.
3

CSR Promotion Structure
Establishing Promotional Systems
In the fiscal year ended March 31, 2014, under the management of the CSR Promotion Committee, four groups
responsible for four stakeholder groups—customers, suppliers, employees, and the environment—set targets
and advanced initiatives accordingly. In April 2014, to coincide with the launch of the Global Management
Committee (GMC), at which all members of the senior management team convene, we reorganized systems forpromoting CSR initiatives. For each of the regions and operating companies (each region of, and each operatingcompany in, Japan, China, Asia, North America and Europe), a person in charge of facilitating the four groups wasappointed, on the basis of which LIXIL Group’s global management system was created. The GMC determines
priority tasks of the Group, and the senior management team exercises its leadership in relation to such tasks.
* See here for more details on the GMC.
We signed the United Nations Global Compact in July 2013. Aiming to respect the compact’s 10 principles in fourareas, we have established “Exercising due diligence for human rights” and “Promoting procurement based on
CSR” as themes for CSR initiatives that we will begin advancing proactively in the fiscal year ending March 31,
2015.
* See the following link for information on LIXIL’s membership of the United Nations Global Compact

Identifying Materiality
As of July 2014, taking into account business areas and sizes and value chains, we are identifying priority tasks
that reflect the opinions of external experts and preparing action plans.From here on, LIXIL Group willappropriately disclose, on its website, information regarding identified priority tasks and developments andaccomplishments of activities based on midterm action plans. The identification of materiality (priority tasks) isthe process of putting into practice important themes of the CSR Policy and specific activities. This process has
been examined with reference to the item of Material Aspects in the GRI G4 Guidelines.

4

CSR Targets by Category and Results
Reduce global environmental burden Build recycling societyPart of a company’s responsibilities to society entails efforts to combat environmental issues, which also
represents a key proposition for humankind. Our integrated group-wide management system has served toincorporate the challenges facing the LIXIL Group, including our efforts to reduce environmental impacts throughreduced energy usage and strict compliance with environmental laws and regulations.
* Click here to learn more “Environmental Activities”* Click here for the scope of data collection

Enhance environmental performance (LIXIL Group’s medium-term environmental goal)
Task

KPI

FY2013

FY2013Our

FY2014

Targets

Results

Evaluation

Targets○

Improve

Number of bases

Overseas

5 subsidiaries

environmental

with newly

manufacturing

China: 2 plants,

acquisition of ISO

managementcquired ISO

subsidiaries: 5

Thailand: 2 plants,

14001 certifi

system*1

14001 certifi

Vietnam: 1 plantcation among

cationIncreaselogistics divisions
in JapanCheck accuracy ofHave third-party

methods forevaluation

evaluate

environmental

energy-saving

methods

contribution todata covered by

reduction of GHG

third-party

emissions fromwarranty

products*2

Warranty completed○

Unify evaluation

Extendproduct use
versus FY2012○

Contribute to

Energy reduction

1.3 times versus

1.34 times versus

1.5 times versus

reduction ofcontribution

FY2010 level

FY2010 level

FY2010 level

energy use in(reduction of(4,850,000 GJ)(5,030,000 GJ)(5,610,000 GJ)

civilian sector inenergy use forJapan byproducts versus

advancing1990 level × sales

performance ofvolume)products andpopularizing
them*2

×

Reduce total

Total energy

Reduce 9.0%

Reduced 8.5% versus

energyconsumption

versus FY2010

FY2010 levelversus FY2010

consumption inlevel(57,000,000 GJ)

level

procurement,(56,700,000 GJ)

Improved on intensity(56,600,000 GJ)

5Reduce 9.3%

manufacturing,basis, did not reachsales, and waste

target because

disposal*1

production volume
increased due to risein new housing starts
in Japan○

Reduce CO2CO2emissions at

Reduce 49.0%

Reduced 49.0% versus

emissions at

operating bases

versus FY1990

FY1990 levelversus FY1990

operating basesin Japanlevel(411,000 tons)

level

in Japan*2(411,000 tons)

Reduce water use

Water use

Reduce 50.0%(403,000 tons)○

Reduce 1.0%

Reduced 17.8% versus

Reduce 1.0%

in manufacturing

versus FY2012

FY2012 levelversus FY2013

activities*1

level(12,481,000 m3)

level(15,033,000 m3)

Reduced signifi cantly(12,356,000 m3)

due to closure of
Takaoka Plant

Supply chain management *2
Quality, cost, delivery plus the environment have served as important criteria for evaluating our supplier partners.
Starting in the year ended March 2013, we commenced efforts to ascertain and improve labor issues, humanrights and other social issue across our entire supply chain.
* Click here to learn more “In Partnership with Our Suppliers”

Build supply chain taking into consideration labor conditions and resource allocation
Task

KPI

FY2013

FY2013Our

FY2014

Targets

Results

Evaluation

Targets○

Japan: 85% (Percentage

Establish

Percentage ofJapan: 85%

Japan: 85%

commontransaction(Percentage of(Percentage ofprocurement

amountcompanies: 15%)companies: 15%)

policies andOverseas: 60%

Overseas: 62%

Overseas: Being

guidelines(Percentage of(Percentage of

calculated (Percentage ofcompanies: 15%)companies: 16%)

companies: 15%)of companies: 15%)○

Conduct

Percentage ofJapan: 100%, 10

100% Paid follow-up

questionnaire

prioritypriority surveyed

visits to 50

survey andsurveyed

items

companies in Japanfollow-up

items

Overseas: 100%, 11

and 16 companies

Overseas: Being

activities

complied withpriority surveyed

overseas

calculated (Percentage of

itemsJapan: 85% (Percentage
of companies: 15%)companies: 15%)

＊Japan: Procurement by operating bases＊Overseas: Procurement by operating bases

6

Product safety *2
We strive to be a leader in product safety activities because of our position as a manufacturer that carries
products supporting the comfortable and safe living of consumers. We have established a product safety
promotion system and created a culture and frameworks for supplying safe products. At the same time, weconvey appropriate information to consumers and strive to gain their understanding. We have established aculture of product safety as a corporation, which includes responding appropriately whenever any incident may
occur.
* Click here to learn more “For Our Customers”

Establish system for development of safe products and build product safety culture
Task

KPI

To prevent occurrence orApplication

recurrence, refl ect

percentage ofaccident information andproduct safety

quality information in

related regulations

designs and conduct(accidents in which

educational activities

products are cause

FY2013

FY2013Our

FY2014

Targets

Results

Evaluation

Targets

0 accidents

0 accidents○

0 accidents○

Twice a year○

4 timesor suspected cause)
Hold discussions with

Hold discussions

Once a2 times Heldexperts and continue

about productyear

discussions themed

product safety initiatives

safetyon consumer

and reform of systems

education and LIXIL
product safety
initiatives

Strengthen dissemination

Number of times

Twice a2 times Held productof information about

informationyear

safety seminars andParticipate inmaintenance, productdisseminated to

distributed safety

product safety

safety, and accident

customers

pamphlets inseminars,

Okinawa and Ehime

distributeprevention

maintenanceinformation, etc.

7

Fostering an Improved Corporate Culture (Human Resource Utilization) *2
Employees represent a key stakeholder supporting corporate activities. We have positioned diversity as one of
our top priorities in order to foster a corporate culture where employee can thrive as well as exhibit theircreativity and energy. Based on a careful analysis of our current workforce composition and human resource
utilization, we are focusing on developing the leaders of tomorrow and emphasizing support for women in theworkplace in Japan, in particular.
* Click here to learn more “In Partnership with Our Employees”

Encourage performance of diverse personnel and develop platform to enable employees to perform totheir full potential and advance
Task

KPI

Identify, train,

Percentage ofand promotewomen indiverse talented

managerial posts

personnel

Percentage of

FY2013

FY2013Our

FY2014

Targets

Results

Evaluation

Targets

3.3% (76 employees: up

○

4%

○

At least 30%○

At least 15%○

At least 123%

29 versus previous year)
30%

32.5%

women among(April 2014 new hires)

regularly recruited
new hires
Percentage of

15%

21.7% (percentage of

women

women among

participating in

employees dispatchedleadership training

for MBAs: 20%)

PromoteHolding ofunderstanding of

meetings

diversity andActivities of LIXIL

create

Women’s Network

12 times

13 times

times a year
Hold events

Nationwide conference:○

1 time;educational

area forums, etc.: 8opportunities

times

Hold events andexpand network

Expand andDevelopment ofHave special

Introduced subsidy

improve support

systems and rules

committee

system for fees for

systems

systems toconsisting ofextended childcare,

introduced andadvanceemployeeextended applicablepromote theirWork-Life-Flexibil

representatives

period of short working

use

ity

and management

hours for child rearing,consider andetc., increased anddevelop systems

improved various
measures8○

Entrench

In Partnership with Society and Local Communities *1
The LIXIL Group hosts dialogue sessions at its factories, showrooms, and storefronts on the themes ofcommunity contributions and community interaction with local governments, neighborhood associations, andstakeholders working and living in the local community.
* Click here to learn more “In Partnership with Society and Local Communities”

Promote communication with local communities
Task

KPI

FY2013

FY2013Our

FY2014

Targets

Results

Evaluation

Targets

△

Hold

Numbe

Hold at 30 plants, 12 sales

Held at 24 plants, 7 sales bases,

dialogues

r ofbases, and 2 stores (revisedand 3 stores Held more than 69

with local

dialoguduring period due to change

preparatory meetings and heldcommunities

es held

in number of bases)

dialogues suited to sites

Hold at 13
plants, 18
sales bases,
and 10 stores

Initiatives to Solve World Health Issues *2
In fiscal 2013 we officially approved of the U.N.’s Millennium Development Goals and began efforts to help
improve living spaces of people in poverty around the world and assisting with the construction of health andsafety facilities and institutions.
* Click here to learn more about the SISI 2018 Project

SISI 2018 project
FY2013

FY2013Our

FY2014

Targets

Results

Evaluation

Targets

Task

KPI

Provide children with hygienic

Number of school

Targets not set

More than 60

environments

toilets improved

becauseschools and morechildren 2018

Collaborate with UNICEF’s

and children

announced inthan 60,000

targetGlobal WASH Program,provided with

November 2013

children in China,

cumulative

which contributes to United

educationaland begun in

the Philippines,

total:

Nations Millennium

supportDecember 2013

and Kenya

2,018,000

Development Goal (7)-164,000

children[Scope of Activities]*1: Excluding companies that have been integrated for less than three years*2: LIXIL Corporation only

9

Stakeholder Dialogue
The LIXIL Group emphasizes ongoing engagementwith a broad range of stakeholders
through stakeholder dialogue sessions
to promote two-way communication.

10

Stakeholder Dialogue
Engagement Policy
LIXIL Group emphasizes the importance of engagement with a variety of stakeholders and holds two-way
dialogue sessionss. By answering the demands and expectations of society learned through these sessions, we
aim to contribute to the development of a sustainable society.

Top Dialogue
In order to promote general CSR management at the
LIXIL Group, we host dialogue sessionss between
senior management and relevant stakeholders.

Expectations for the LIXIL Group as it Seeks to
Become a Global Leader in Living and Housing
Solutions and the Purpose of Promoting CSR (heldon June 20, 2012)
The LIXIL Group’s social mission is to build and expand
worldwide “bonds” that lead to good living and goodlife. Three experts were invited to hold an opinion
exchange discussing the question of what society’s
demands are in relation to the promotion of CSR
management and what challenges LIXIL needs to takeon.

Dialogue by Task
Dialogue sessions were held on each of the tasks LIXILGroup needs to tackle. These sessions were held
under the guidance of each CSR Promotion
Committee group.

3rd Product Safety Dialogue —Building Collaborative Relationships that
Transcend Barriers and Establishing a Product
Safety Culture that Contributes to the Future (heldon March 25, 2014)
LIXIL has strengthened its initiatives in product safety
activities with the aim of achieving “superstar” LIXIL
Quality. The third product safety dialogue invitedlawyers, advisory specialists for consumers' affairs aswell as experts to share their views on product safety
activities that LIXIL should be carrying out.

【 List of dialogue sessions to date 】* 2nd Product Safety Dialogue — Product Safety Education that Delivers Peace of Mind to Customers and Leads
to Action (held on September 18, 2013)* 1st Product Safety Dialogue - LIXIL Initiatives and Consumer Education (held on January 9, 2013)11

Outline of Dialogue Sessions with Local Communities
Dialogue sessions with representatives of local government, community
associations and stakeholders who work and live locally were held at a LIXIL Groupfactory, showroom and store, based on themes such as community engagement
and community contributions.

List of LIXIL Corporation production plants where sessions were held
[Total to 25 locations、(of these, two dialogue sessions were held jointly by three plants or two plants)]
Date
Location
March 26, 2013
Shimotsuma Plant and Fujibana Plant (Shimotsuma City, Ibaraki Prefecture)
July 19, 2013
Ishige Plant (Joso City, Ibaraki Prefecture)
September 9, 2013
Otani Plant (Tokoname City, Aichi Prefecture)
October 22, 2013
Ariake Plant (Nagasu Town, Tamana County, Kumamoto Prefecture)
October 29, 2013
Ichinoseki Plant (Ichinoseki City, Iwate Prefecture)
November 21, 2013 Iwai Plant (Bando City, Ibaraki Prefecture)
November 25, 2013 Yokohama Plant (Midori Ward, Yokohama City, Kanagawa Prefecture)
November 29, 2013 Handa Plant (Handa City, Aichi Prefecture)
December 3, 2013
Yamato Plant (Sakuragawa City, Ibaraki Prefecture)
December 4, 2013
Ibuki Plant (Tarui Town, Fuwa County, Gifu Prefecture)
January 10, 2014
Hisai Plant (Tsu City, Mie Prefecture)
January 10, 2014
Nabari Plant(Nabari City, Mie Prefecture)
January 10, 2014
Aoyama Plant(Iga City, Mie Prefecture)
January 28, 2014
Tsuchiura Plant (Tsuchiura City, Ibaraki Prefecture)
February 4, 2014
Chita Plant (Chita City, Aichi Prefecture)
February 6, 2014
Tsukuba Plant (Tsukuba City, Ibaraki Prefecture)
February 12, 2014
Kashima Plant (Kashima City, Saga Prefecture)
February 21, 2014
Enokido Plant (Tokoname City, Aichi Prefecture)
February 25, 2014
Saga Plant (Taku City, Saga Prefecture)
February 27, 2014
Oyama Plant (Oyama City, Tochigi Prefecture)
March 7, 2014
Onomichi Plant (Onomichi City, Hiroshima Prefecture)
March 14, 2014
Kumayama Plant (Akaiwa City, Okayama Prefecture)
March 20, 2014
Kiryu Plant (Kiryu City, Gunma Prefecture)
March 25, 2014
Oyabe Plant (Oyabe City, Toyama Prefecture)
March 31, 2014
Tono Plant (Ena City, Gifu Prefecture)
Production subsidiaries are also listed as LIXIL plants.

List of LIXIL Corporation sales offices where dialogue sessions were held [Total to 7 locations]
Date
Location
November 27, 2013 Takamatsu Branch (Takamatsu City, Kagawa Prefecture)
March 17, 2014
Yamaguchi Branch (Yamaguchi City, Yamaguchi Prefecture)
February 26, 2014
Kumagaya Branch (Kumagaya City, Saitama Prefecture)
March 26, 2014
Aomori Branch (Aomori City, Aomori Prefecture)
March 6, 2014
Sapporo Branch (Higashi Ward, Sapporo City, Hokkaido Prefecture)
March 27, 2014
Funabashi Branch (Funabashi City, Chiba Prefecture)
March 11, 2014
Tokyo Nishi Branch (Tachikawa City, Tokyo)
List of LIXIL Corporation Viva stores where dialogue sessions were held [Total to 4 locations]
Date
Location
March 21, 2013
Super Viva Home Iwaki Store (Iwaki City, Saitama Prefecture)
February 28, 2014
Super Viva Home Itami Store (Itami City, Hyogo Prefecture)
March 5, 2014
Super Viva Home Kiyota Hitsujigaoka St. Store (Kiyota Ward, Sapporo City, Hokkaido
Prefecture)
March 5, 2014
Super Viva Home Teine Tomioka Store (Teine Ward, Sapporo City, Hokkaido Prefecture)
12

For Our Customers
LIXIL is committed to delivering products andservices with the customer close in mind.

13

Increasing Customer Satisfaction
CS* Activities
LIXIL Group seeks to provide products and services designed from the customer’s perspective, and to improvecustomer satisfaction through communication based on LIXIL’s corporate philosophy – “LIXIL CORE” – and sharedGroup values – “LIXIL Values.”* CS・・・Customer Satisfaction
Valuing Customers’ Opinions
We will value the opinions received from our customers, and provide products and services that our customers
are happy with.
All Employees are CS Specialists
Each and every employee shall always act with the customers in mind, and shall earnestly continue to pursue
customer satisfaction.
* See here for more information about “LIXIL CORE” and “LIXIL Values”

System for Using Customers’ Views to Help Make Improvements
We have collected data using the approximately 290,000 inquiries a month made by customers to our service
centers, including the Customer Service Center, Repair Center, and General Product Information Support Center;
this information is shared with relevant departments with the aim of implementing improvements and providing
better products and services.

14

Number of Inquiries, and Customer Satisfaction Survey
In FY2013, we received a monthly average of more than 290,000 inquiries, including questions and requests from
customers who were using (or thinking about using) our products, requests for repairs, and inquiries from our
suppliers. In addition, the Customer Service Center carries out a Customer Satisfaction Survey every six months
to check whether or not we are dealing with customers properly, and to verify the results achieved from ourday-to-day efforts to improve our level of service.

Six Sigma Adoption
LIXIL regards improving customer satisfaction as being a key priority for its business activities, and works topromote better manufacturing and services while always remembering to listen to the voice of customers (VOC).
We adopted and developed the Six Sigma system with the aims of promoting ongoing activities in this field andputting in place appropriate systems and corporate culture.

Six Sigma starts by listening to customers’ opinions and identifying areas for improvement. The next step is touse facts backed up by numerical analysis, instead of making judgments based on instinct or experience, to limit
variation in the quality of work or services, and to use this to improve quality. When carrying out these
improvement activities, we build cross-functional teams across companies and departments and implement
improvement projects aimed at tackling each challenge.

15

Through Six Sigma, in addition to visualizing the areas of our work that, from the customer’s perspective, require
improvements, and improving the quality of our products, we will also be implementing innovations in all of ouractivities, from service provision through to everyday administration.

Improvements in Customer Service Win LIXIL a “Best Technology Sector Contact
Center” award in the 2014 Contact Center Awards
LIXIL’s Customer Service Center, along with its partnercompanies, was the recipient of a “Best Technology
Sector Contact Center” award at the 2014 Contact
Center Awards, which showcase improvements in callcenter operations.
LIXIL was praised for its activities aimed at boosting
the quality of the replies given to customers, whilestill maintaining high call center productivity, and forthe “development of cutting-edge, operator-friendly
tools” involving the adoption of voice recognition
technology, improvements in the operator manual,and development of a customer-focused automatedresponse appraisal system.

16

Examples of Improvements Achieved Through Listening to Our Customers
Here we present some examples of improvements implemented after listing to the “voice of customers”
collected at our service centers.
* More examples can be seen on our Customer Support web-page, here（Japanese Only）●Voice of customer – I can’t seem to get throughI called the Customer Service Center several times over the course of the day, starting in the morning, but I
couldn’t get through.Not being able to get through when you are in a hurry is extremely annoying. Can’t you dosomething about this?
●Improvements implemented
We reviewed the product team composition at the Customer Service Center and allocated staff in accordancewith the number of inquiries received. In addition, improving the specialist capabilities and skills of the Center’s
staff has helped to make it easier for customers to get through. (Implemented from February 2013 onwards)
Before improvement／Percentage of inquiries successfully dealt with in September 2012：69%
After improvement／Percentage of inquiries successfully dealt with in February 2013：86%⇒An increase of 17 percentage points

Initiatives Aimed at Improving the Skills of Service Center Staff
Regular training sessions are held to strengthen operational knowledge and product knowledge so that service
staff are able to solve customers’ problems more smoothly.Prizes are awarded based on the skills levels ofservice staff, in order to increase motivation.
[Product training]

Using a toilet product in training to boost product knowledge[Award system]Winners of the customer service contest, which is held on a regular basis[Installation training] Fitting a sash window as part of installation training

17

Showroom Initiatives
The showroom is one of the few places where we have the opportunity to communicate directly with ourcustomers. LIXIL Corporation has showrooms in 98 locations throughout Japan (as of August 2014). At the
showrooms, besides making it possible for customers to view physical products, we also host special events suchas the Exhibition for Lifestyles new product exhibitions, to encourage a wider range of customers to visit the
showrooms.

Putting LIXIL Showroom Values into PracticeAt our LIXIL showrooms, we put LIXIL Showroom Values into practice, so that all showroom staff are constantly
striving to implement activities that increase customer satisfaction.
LIXIL puts “Good Living” into practice for the benefit of people all over the world.
At our showrooms, we provide the following in order to contribute to Good Living:•A place where customers can experience and achieve Good Living and a Good Home
•A place where we contribute to Good Living by increasing customer value (satisfaction) and creating trust andexcitement
By putting LIXIL Showroom Values into practice for every single customer that visits a LIXIL showroom, we
maximize customer satisfaction.
LIXIL Showroom Values
1. Not making customers wait, and not pestering customers (Reception)
2. Making things readily visible and easy to understand (Product displays, Installations, Signs)
3. Displaying attention to detail and consideration (Customer service, Hospitality)
4. Maintaining high quality and professionalism (Explanations, Proposals)

Developing our Showroom Coordinators
LIXIL showrooms are visited by a wide variety ofdifferent people, including building owners, otherbusiness users, and people from the local community.
For this reasons, we work hard to train our showroom
coordinators so that they are capable of identifying
the best way of helping each and every visitor to ourshowrooms and guiding them in the way that best
suits their needs. In our product training, we start off
from basic training for new coordinators, and thenmove on to more advanced training, tailored to theindividual coordinator’s existing knowledge andexperience, to ensure that coordinators are able tosuggest proposals that meet customers’ needs.
Coordinators are also tested regularly to verify thatthey possess the know-how required in order tosatisfy customers’ needs. A training curriculum has
been established to enhance know-how, techniqueand motivation in cases where there is room for▲Training for Coordinators
improvement. In addition, managers have been
appointed to oversee the maintenance of quality
standards in showroom operation. These managers
identify key issues in each region, and implement
improvement activities and training programs toensure that customers receive even better service.
18

Visitor Surveys
Customers who visit our showrooms are asked to fillout a customer service survey, with the aim of
improving our approach to showroom customer
service and our ability to explain products clearly. The
content of customer service survey responses iscommunicated to showroom coordinators, andeffective use is made of this information in showroom
operation. The survey results are also used as thebasis for implementing training aimed at enhancing
coordinators’ ability to present proposals that meetthe needs of each individual customer.

Results of FY2013 Customer Survey
The Survey was implemented at all 13 branches and 97
showrooms. Total number of valid responses: 120,859

Changing our Showrooms to Make it Easier for Customers to Find and Understandthe Information they NeedWe have been improving the arrangement of products within our showrooms and the content of our POP
materials to meet the needs of those customers who just want to look round the showroom on their own. We
have also installed large, touch-screen displays that customers can use to search for examples of LIXIL products inuse, or to get hints on achieving their own ideal home. Tools are also provided to help customers discuss theiroptions with family members after returning home.

▲Large, touch-screen display▼POP materials

19

Product Safety Initiatives
LIXIL Corporation recognizes that the source of its profits and of the trust of customers and the society is “quality.”On the basis of “LIXIL Corporation Quality Policy,” we constantly pursue the best quality with confidence in our
manufacturing and services, and any type of work we undertake.In particular, with awareness that a serious
quality defect stirs up customers’ anxiety leading to decline in reliability, we are working on solving issues in across-departmental manner, in accordance with “LIXIL Product Safety Principles.”[LIXIL Corporation Quality Policy]●LIXIL Corporation as comprehensive manufacturer, which supply a large number of useful building materials fora full existence, maintain and press for improvement in quality of LIXIL's products & service from a lot ofcustomers point of view all the time.
●LIXIL's outstanding QUALITY of our products & service present all customers safety & comfortable existence,and make a great contributed much to LIXIL's achievements

LIXIL Product Safety Principles
Product safety activities are our top priority as we seek to supply products that support consumers’ safety andpeace of mind on the assumption of superior LIXIL quality. We have set out the following Product Safety
Principles with the aim of thoroughly practicing product safety and we actively promote measures to achieve
product safety.
[LIXIL Product Safety Principles]
Innovation
Build a global top level system in the field of product safety
Work to develop innovative safety technology in the pursuit of total safety
Sustainability
Collect state-of-the-art product safety information, and always strive to improve product safety activities
Build a network of business partners and customers in order to secure safety across the entire product life-cycle
Integrity
Work honestly and sincerely on product safety activities in order to obtain the trust of each and every customer
Promptly disclose clear product safety information, with customers’ safety and peace of mind as our top priority

Product Safety Report Card
Every six months, LIXIL Corporation has a third party
compile a “Product Safety Report Card” for thecompany. A total of 147 items are assessed, fallingwithin five broad categories: “Building the Product
Safety System,” “Supplying Safe Products,”“Communication with Consumers,” “Dealing withAccidents,” and “Building a Product Safety Culture.”
The assessment results are used to set activity targets
for the company. In addition, a “Product Safety
Activities Report” is compiled on an annual basis; thisReport, which includes the views of external experts,
is used to help achieve further enhancements in
product safety in the following year.

20Enhancing Quality across the Entire Product Lifecycle
LIXIL implements measures to enhance quality at every stage from initial product concept development throughdesign, manufacturing and distribution to after-sales support provision, so as to ensure the delivery ofhigh-quality products and services and provide our customers with safety and peace of mind.

21

Handling Serious Product-related Accidents, and Measures to Prevent Recurrence
At LIXIL Corporation, within 24 hours of information being received about the occurrence of a product-related
accident, information is collected by the CS Division’s Risk Management Team, and an emergency notice is sent
to the relevant departments; a system is in place to implement an on-site response in close collaboration withthe customers service centers, and to carry out accident investigations, etc. Moreover, in accordance with thestatutory requirements relating to the implementation of the serious product accident reporting and disclosuresystem pursuant to the Consumer Product Safety Act, a report is made to the relevant authorities within 10 daysof receiving accident information. In FY2013, there were no new serious product-related accidents. To prevent
any recurrence, we ensure that accident information is taken into consideration at the design stage, and we also
undertake the development of new safety technology to stop accidents from occurring.
* Important information for customers using LIXIL products（Japanese Only）

22

Best Contributors to Product Safety Awards
In 2014, LIXIL was awarded an Excellence Award in the Large Manufacturer and Importer Category in the Ministryof Economy, Trade and Industry (METI) 8th Best Contributors to Product Safety Awards. In this year’s Awards,
LIXIL received particularly high praise for: (1) The measures that LIXIL has taken to prevent accidents caused bydeterioration due to aging, including the introduction of an industry-leading 10-year long-term warranty service
and inspection/traceability protection based on an inspection notification function; (2) Measures taken to clarify
the causes of past problems, and to take these causes into account when making improvements to products; (3)Measures taken to implement awareness-raising activities, making available information about product safety
both within the company and externally, for example through the establishment of the Safe Lifestyle Gallery.
* For more details (including an overview of the Awards, etc.), click here (PDF: 220KB)（Japanese Only）[Overall Evaluation]“The evaluation committee has been very impressed by the proactive measures taken by LIXIL to enhance
product safety awareness among both company employees and consumers, and by the contribution made to the
diffusion of a product safety mentality. It is anticipated that, thanks to the efforts made by LIXIL to integrate theper-merger experience of the various companies that LIXIL has acquired, and the putting in place of relevant
standards, these mergers will provide significant benefits (from a product safety perspective). The evaluation
confirmed that, since the mergers, the individual companies concerned have been working together toimplement effective product safety measures. The committee hopes that LIXIL will work to achieve further
improvements in terms of design and appraisal criteria, and realize additional achievements in the product safetyarea, so that it can take on the challenge of participating in these Awards again in the future.”

Safe Lifestyle Gallery
With the aim of helping to ensure that our customers can enjoy lasting peace of mind when using LIXIL products,
LIXIL has opened a “Safe Lifestyle Gallery” in the LIXIL Museum inside the LIXIL WING Building (in Koto-ku, Tokyo),which is operated with the aim of helping people to enjoy enhanced safety and peace of mind by showing theproper way to use LIXIL products, and educating people about the importance of regular inspections. In the“Product Safety Corner,” there is a display recreating a fire accident involving a shower-toilet, and in the “NITE
Corner” a video is played showing how the National Institute of Technology and Evaluation (NITE) implements
replication testing after product-related accidents have occurred. The “DIY Maintenance Corner” presents somekey ideas for helping consumers to continue to enjoy peace of mind while using LIXIL products over the long term,
and introduces a number of useful books relating to product safety and consumer education. The “Special
Exhibitions Corner” showcases the latest product safety and consumer education information and products,
along with the prize-winning entries from the 2013 Kids Design Award, which are examples of outstanding
child-friendly product design. As of February 2015, the Safe Lifestyle Gallery had been visited by around 2,000
representatives of consumer organizations, industry organizations and LIXL business partners, etc. There have23

been many positive comments from external visitors, who felt that the Gallery embodies LIXIL’s commitment toproduct safety.

▲ Burn damage to a shower-toilet that continued to be used after an accident (reproduction)▲ Example of improvements made to an electric oven designed for use in mini-kitchens, and a washstand where themirror fell off because of age-related deterioration (reproduction)

A selection of comments from the LIXIL Museum Survey (conducted in 2015)• “I felt that this was a very interesting concept. The pairing of potential accidents with products that could be
used to prevent them made it all very easy to understand.”• “Seeing the burnt toilet as soon as you entered the gallery came as a bit of a shock. As she has got older, mygrandmother has stopped cleaning the toilet and the gas cooker regularly, so this brought home to me that weneed to be careful.”• “The display of accidents is something that you don’t find at other companies; I could appreciate the intentionof using the museum to ensure that lessons from the past are utilized effectively in the future.”• “I think it would be good to expand the size of the Safe Lifestyle Gallery, so that more case studies can bepresented.”* For more information about the LIXIL Museum, click here
* For press releases relating to the Safe Lifestyle Gallery, click here （Japanese Only）

Holding Product Safety Dialogues
In order to help strengthen our product safety measures, LIXIL Corporation engages in dialogue with experts inthe field of product safety. In September 2013, we invited Ms. Furuya, Mr. Tateyama and Mr. Ogasawara of the
Nippon Association of Consumer Specialists (NACS), and Mr. Tanoe of OCN, to discuss the topic of “Product
Safety Education that Connects with Consumers and Inspires Practical Action.” In March 2014, we invited Dr.
Masao Mukaidono, Professor Emeritus at Meiji University, Ms. Furuya of the Nippon Association of Consumer
Specialists (NACS), and Attorney Mr. Gomi to discuss “Building Collaborative Relationships that Overcome
Barriers, and Building a Product Safety Culture that Will Contribute to a Better Future.

24

In Partnershipwith Our Suppliers
LIXIL promotes CSR procurement as part of its fair
operating practices with suppliers.

25

Procurement Policy
LIXIL Corporation's factories use a great amount of water in aluminum product surface finishing and otherprocesses. In order to reduce overall usage, we promote efficient use of water by carrying out detailed water
usage surveys at each factory (water intake, usage per process and water circulation system deployment),
installing water circulation systems, and implementing various other water conservation measures. We also
strictly manage wastewater, and are implementing various measures to minimize the impact of wastewater on
the natural environment.
<Fair and Impartial Trade Practices>
We will provide suppliers with equal and open opportunities, and solicit suppliers broadly.
When selecting suppliers, we will evaluate them fairly and impartially, paying due consideration to CSR aspects
such as environmental management, human rights, and workplace safety in addition to quality, cost, anddelivery.
<Adherence to Social Norms>
We will observe laws, regulations and rules related to procurement activities, and act in a way that gains thetrust of society.
<Respect for Human Rights and Consideration for Working Environment>
We will respect for the internationally declared standards of human rights, and pay due attention on ensuring
an appropriate working environment.
<Care for the Environment>
We will preferentially procure raw materials that have low environmental impact.
<Promotion of Mutual Prosperity with Our Suppliers>
We will conduct transactions in a way that promotes mutual growth as partners.

Supply chain management
Since the five-company merger of April 2011, LIXIL Group has developed the scope of its supply chain
management. In order to achieve sustainable development alongside our suppliers, we have promoted thedevelopment of a system to include CSR Procurement through our domestic and overseas procurement groups.
In order to promote thorough understanding by our suppliers, we have established standard LIXIL Procurement
Policy Guidelines for suppliers in agreement with our policy. As the next step, we have used a CSR Procurement
Survey to identify the current situation and implement follow-up improvement activities.
In FY 2013, we made a major revision to the questions contained in the "CSR Procurement Survey" for the
purpose of deepening our activities further. We aimed to establish standard "Procurement Policy Guidelines"
with Japanese suppliers accounting for 85% of the entire transaction amount and with overseas suppliers
accounting for 62% thereof, and to achieve 100% compliance of these suppliers with priority items regarded as
especially essential among the items of the "CSR Procurement Survey." We succeeded in reaching these targets.
We implemented follow-up improvement activities for suppliers with poor survey results. We will strengthen theimplementation of such activities for overseas suppliers.
* See here for details on the CSR Questionnaire Survey

26

Progress made in FY2013 (LIXIL Group as a whole)
FY2014 Targets

FY2013 Results

FY2014 Targets

Japan

Overseas

Japan

Overseas

Japan

Overseas

Percentage of transactions

85%

60%

85%

62%

85%

Being

(Percentage of companies)

(15%)

(15%)

(15%)

(15%)

(15%)

Targets

Task

KPI

Build a1、stablishment

supply chainof Procurementtaking into

Policy Guidelines

consideratio

2、Conduct

Percentage of priority

n laborquestionnaire

surveyed items complied

conditions

survey and

with

and

follow-up

Percentage of surveyed

resource

activities

items complied withallocation

calculated

(15%)
100%

100%

100%

100%

100%

100%

-

-

79%

84%

85%

85%

(Ver.in FY2014)[Scope of application]
Suppliers to all consolidated companies within the LIXIL Group,with the exception of LIXIL Corporation and groupcompanies merged within the past two years.
*Percentage of transaction amount・Japan: Procurement by operating bases
・Overseas: Procurement by operating bases

Priority themes of the Procurement Group with the goal of achieving further improvements from FY2014
onwards (LIXIL Group as a whole)
1. Procurement within Japan(suppliers: Japanese and overseas

Selection of tasks and activities that promote further

companies)

development of measures at suppliers

2. Procurement at overseas bases (suppliers: overseas andDevelop activities to the ASEAN region, including

Japanese companies)

China, South Korea, Thailand and Vietnam.

Selection of Business Partners
LIXIL Group provides equitable and fair business opportunities to its large number of business partners. The
selection process for business partners includes not only quality, cost and delivery, or QCD, but also a company’senvironmental conservation efforts, human rights, labor safety initiatives, in order to ensure that CSR activities
and other aspects are incorporated into all assessments and decisions.

Collection of compliance information from suppliers (suppliers of materials and subcontractors)
LIXIL Group aims to carry out corporate activities with the aim of being a useful company that is trusted widely
by society. For this reason, we have established an external legal office to receive information related tocompliance violations within the LIXIL Group.
* See here for more details（Japanese Only）

27

CSR Procurerment
Promoting CSR Procurerment

LIXIL Corporation has established "supplier assessment standards" for our suppliers and carried out overall
assessments of the reliability of companies, not only from the perspective of QCD (Quality, Cost and Delivery),technological capability and steady supply capabilities, but also in consideration of compliance and theenvironment. Furthermore, since FY2012 we have made regular checks on our suppliers' environmental
measures and legal compliance by developing more specific environment conservation questions and adding
new CSR-related questions from the perspective of promoting CSR procurement. In the future, we will continue
to strengthen our supply chain management by adding further targets to our supplier assessment standards inrelation to human rights and occupational safety, so that we are able to implement CSR procurement activities
on a global level.
Approach to CSR Procurement

Management of Chemical Substances for Business Partners
LIXIL has stipulated certain chemical substances for which the use in products and production processes in Japan isprohibited or controlled. A list of these controlled chemical substances can be downloaded below.
* LIXIL List of Controlled Substances (updated November 1, 2014)（Japanese Only）

CSR Procurement Survey Questions (FY2013)

CSR Questionnaire Survey

We believe it is essential to obtain sufficient
Overseas
In Japanunderstanding and cooperation from our suppliers inorder to “build a supply chain taking into
(Numbers)(Numbers)
consideration labor conditions and resource
1. CSR Operations
10
6
allocation”, which is one of the priority challenges of
the Procurement Group. We use a CSR Procurement
2. Fair Business8
8
Survey based on our Procurement Policy to
3. Human Rights
7
6
investigate matters such as environmental
4. Labor
13
9conservation, human rights, occupational safetymeasures and consideration for the local community.
5. Health & Safety
97
We carry out fair assessments of each question, and
6. Environmental
14
10
when a supplier scores poorly in the survey westrengthen support measures in order to promote
Conservation of the Planet
improvements and use the results to decide on which
7. Regional Contribution
52
suppliers to use. For the survey in fiscal 2013 onward,
we have added to the “CSR Procurement Survey” new
Total
66
48
questions in relation to such fields as “CSR
management,” “human rights,” “labor conditions,” “safety and health” and “regional contribution” (66 questions
in total), as we are in the process of identifying real situations of suppliers in the pursuit of substantial measures
for CSR procurement. Among the question items of the CSR Procurement Survey, we use 48 selective items for aquestionnaire targeting Japanese suppliers, excluding low-risk items.
CSR Procurement Survey Sheets (FY2013)* To suppliers overseas (116KB)* To suppliers in Japan (102KB)

28

Communicating with Our Suppliers
Promoting Quality Improvement Activities
In order to contribute to society through the supply of highly reliable products, it is essential that we build strong
partnerships with our suppliers. At LIXIL Corporation, we work hard to improve quality control in collaboration
with our suppliers. We carry out quality maintenance audits of existing suppliers as a way of maintaining andimproving a system that allows us always to provide a steady supply of high-quality products. During the audits,
we ask questions on topics such as process management and facilities management, the development ofcheck-sheets and testing. We implement improvements in collaboration with our suppliers when corrective
measures are necessary. Other initiatives include quality improvement seminars, the provision of support forlaunching new parts business, and the promotion of quality assurance activities for items procured overseas.
Thanks to these measures, in FY2012 we succeeded in achieving a major reduction of 30% against the previous
year in cases of malfunctions or trouble attributable to our suppliers.

Policy Briefings
We hold policy briefings for our suppliers and partners with the goal of increasing their understanding of LIXIL
Corporation's Policies. The 3rd LIXIL Corporation Supplier Policy Briefing was held in Tokyo on June 18, 2014, and475 representatives attended from 270 companies in the fields of supply and logistics. At the policy briefing, we
explained our overall policy, Procurement Policy and quality improvement measures and presented prizes andletters of thanks to the suppliers who made significant contributions in reducing costs and improving quality
during FY2013 (suppliers - two companies; logistics – two companies).

29

In Partnership withSociety vand Local Communities
Through continual dialogue with stakeholders LIXIL
is takes part in various activities together withsociety and local communities.

30

Water Resources Conservation Activities
Educational activities of water
As an enterprise dealing in home plumbing products, we endeavor tocommunicate the importance of water to children both in Japan andoverseas, and carry out activities aimed at raising awareness of local
water issues.
Activities in Vietnam
Although numerous plumbing products are manufactured in Vietnam, many parts of the country still lack proper
sanitation and environmental awareness is also at a low level. LIXIL maintains a leading share of Vietnam’s
sanitary ware products market and as a company that has built up a strong position in the market together withthe growth of the country, we hope to give back to Vietnamese society as well. Accordingly, we are working withlocal governments and international NPOs Bridge Asia Japan (“BAJ”) and Seed to Table (“STT”) to educate
Vietnamese children about water environment issues to allow them to think and act for themselves. In FY2013,
the 7th year of the program, we carried out activities in locations such as Hòa Bình Province in the north ofVietnam, Huế in central Vietnam and Hồ Chí Minh in the south. We gave presentations on the results of the
program at local factories, and carried out factory tours and exchange activities.

Activities in Japan
Employees from our regional sales departments makevisits to elementary schools to give lessons over two
periods. They use original educational materials to raisechildren’s awareness that water is a limited resource,
using the examples of the earth’s water circulation andwater problems. The lessons give the children theopportunity to reconsider their own lifestyles. Over the
four-year period between 2010 and 2013, 74 lessons
were given by 30 branches, and approximately 3,900
students took part. The participating children offered
numerous honest thoughts and opinions, including
surprise at just how much water each of us uses without
realizing, shock at the water situation in other countries,
and a desire to be more careful about how they use water in the future. The employees who gave the lessons
enjoyed the children’s enthusiastic responses and the serious approach they took to the lessons. The experiencegave our employees a great deal of satisfaction and helped their development.

31

Environmental education in Vietnam
Stance towards environmental education in Vietnam
In 2006 when LIXIL (at the time INAX Co., Ltd.) had the top
share of the sanitary ware market in Vietnam, LIXIL decided
that it wanted to do something for Vietnamese society as acompany that was establishing its own position along withthe development of Vietnam. Rather than simply providing
funds and materials, LIXIL searched for a partner thatwould support the future of Vietnam, and commenced
concrete activities in 2007 with an NPO with a strong trackrecord. This year marks the eighth year since LIXIL has been
involved in these activities. Using the knowledge we haveaccumulated as a company handling water-related
products, we aim to support education that is reallynecessary for the children that will support the future of Vietnam involving the theme of the water environment.
This education consists not of telling children not to throw garbage in the river because it makes the water dirty,
but of providing children an understanding of what makes rivers dirty and enabling them to think for themselvesin terms of what should be done in response. In accordance with this stance, LIXIL has prepared educational
materials based on local conditions, and it currently conducts activities twice a year in summer and winter aspractical environmental education for the local conditions with the international NPOs Bridge Asia Japan (BAJ)and Seed to Table (STT) and local employees in Vietnam.

Introduction of partners
Bridge Asia Japan (BAJ)
BAJ was established in 1993 for the purpose of conducting international cooperation
projects that serve as bridge between Asia and Japan, just like its namesake. BAJ focuses
its support in Vietnam on poor children. It commenced preparations for environmental
education around 2002 and fully launched these activities from 2004 in Hue in central
Vietnam. Thanks to the practical support of BAJ including the collection of valuable
resources such as plastic and the installation of septic tanks so that domestic wastewater
does not directly flow into rivers, activities in which local children think and act forthemselves have spread. LIXIL was conducted environmental education activities together with BAJ since 2007.
* Official website of Bridge Asia Japan (BAJ)
Seed to Table (STT)STT is a Japanese NPO that was established inJuly 2009 with the aim to protect local seeds,
nature, and culture together with the people of Vietnam and develop the economic base for improving
self-sufficiency and earning so that people can enjoy living together with family and friends. STT has created
opportunities for people to meet and talk, including the recording and communication of local knowledge suchas farming methods as it fosters leaders for the next generation while making efforts in food, farming, andcommunity building. These activities are focused on Hoa Binh Province in northwest Vietnam. Joint activities by
LIXIL and STT were started with environmental classes in Nam Sơn Commune in Hoa Binh Province in 2010, andactivities were subsequently expanded to Phu Vinh Commune and Dich Giao Commune.
* Seed to Table (STT)’s official Facebook page
*Seed to Table (STT)’s official website

32Latest activities July 16 to July 20, 2014
This marked the 15th time that activities were conducted, which consisted of classes on toilets and a survey of
local toilets in Thua Thien–Hue Province in central Vietnam and Hoa Binh Province in Northern Vietnam and atour of the Danang INAX factory in Quang Nam Province bordering Thua Thien–Hue Province. BAJ and STT staff
worked with four employees from the local subsidiary LIXIL INAX VIETNAM Corporation (hereinafter “LIXIL
VIETNAM”) and LIXIL INAX DANANG Manufacturing Co., Ltd. (hereinafter “Danang INAX”) and two visiting
employees from Japan to deepen exchanges with around 120 children through these activities.
[Details of the activities]■ Together with BAJ
In cooperation with BAJ, LIXIL provides environmental education throughout the year for all classes of students ingrades one to three at Thuy Xuan Elementary School and students in first grade at Lam Mong Quang Junior HighSchool (equivalent to the sixth grade of elementary school in Japan) that elect to take the course. Despite thefact that it was during summer vacation, the three days of activities were participated in by a total of 49 students,
consisting of 22 students in grades one to three from Thuy Xuan Elementary School and 21 students from Lam
Mong Quang Junior High School that continued environmental activities, as well as 6 students in grade 2 of juniorhigh school and grade 1 of high school from Huong Long Ward of Hue. They were taught by 6 BAJ staff members,
2 Danang INAX employees, 1 LIXIL VIETNAM employee, and 2 LIXIL employees. The Huong Long Ward is an area
where BAJ was active from 2008 to 2010, and LIXIL (at the time INAX Co., Ltd.) had conducted classes in that area
before. The activities were held at that time because there were requests from the children for BAJ to restartenvironmental activities.
Environmental activities at Lam Mong Quang Junior High School and toilet survey conductedin Hue City, Thua Thien–Hue Province (July 16)
Lam Mong Quang Junior High School is a school where environmental activities were conducted before, and thetown where the school is located is found in a sandy area sandwiched between the sea and a lagoon
approximately one hour from Hue by car. First, the children reported on their activities. The children of Lam
Mong Quang Junior High School reported on research comparing the amount of C02 absorbed by trees in theschoolyard and the amount of C02 exhaust by all students, the progress of vine growth observation and compost
making, and a comparison of the amount of C02 absorbed by trees in areas where students live and on thestreets in the center of town and the amount of C02 exhaust by cars on those streets. According to all the
research that was reported, the amount of exhaust by people and cars was lower than the absorption amount.
The children asked the principal who was listening to the presentation to replant trees in the schoolyard.
After that, classes using textbooks were held. Using this textbook, students learned about the historicalbackground of toilet use, the types and features of toilets, how to use toilets, and how to clean toilets. Danang
INAX employees that served as instructors conducted class by soliciting the opinions of students throughquestions likes “Where do you usually urinate?” The children replied with a mix of embarrassment andExplanation of vine growth records

Conducting class in a quiz format

33

Children exchanging opinions with friends

enthusiasm about current conditions, with answers such as “I urinate in the garden”, based on which possible
problems were studied.
In the afternoon, the children were divided into four groups and a survey was conducted on toilets in Hue. Eachgroup was accompanied by LIXIL employees and BAJ staff members to conduct a survey on the type of toilets,
toilet-related issues, etc. The group of elementary school students investigated the toilets at the homes of two
friends of group members (a flush toilet and a dry toilet). Both homes were those of typical farmers in the Thuy
Xuan area. When visiting each toilet, the students remembered the class on toilets they studied during themorning and thought about the types of toilets. They also recorded impressions such as “The floor of this toilet is
kept clean.” and “It must be difficult when it rains.”

Home of a farmer in the Thuy Xuan

Introduction of a toilet at home

Outdoor dry toilet

Environmental activities at Thuy Xuan Elementary School and summary of toilet survey conducted in Hue City
(July 17)
Thuy Xuan Elementary School is an elementary school in the suburbs of Hue City that was also visited in previous
environmental activities. In the morning, the students of Thuy Xuan Elementary School reported on the activities
conducted up until that point by introducing maps drawn on a poster introducing trees growing in the area andtheir favorite places in the area. After that, we went outside together with the children to see their favorite
places they had reported on before. LIXIL employees felt young again as they picked fruit from roadside trees,
fished using handmade nets they made together, and looked for antlions under the eaves of homes while
deepening interchanges with the children.

Explaining the trees growing in theregionExploring the back roads together withthe children that always use themGathering antlions together with thechildrenIn the afternoon, we returned to the elementary school for a summary of the toilet survey conducted in Hue City.
The photos taken the day before were organized on a poster while receiving advice from the LIXIL employees
who accompanied the survey. The children and employees that had grown familiar with each other over a periodof two days had a great time while summarizing the survey results on the poster. In addition to the survey results,
children also decorated the poster with memories of the environmental activities, such as “We learned about thestructure of toilets that you can’t see.” and “We had an interview together with that lady at the market.”34

Advice on the summary

Summarizing the survey results together

Completed with photos and pictures

Factory tour at Danang INAX (July 18)
On the third day, the children who participated in environmental education and school teachers were invited toDanang INAX to report on the environmental activities and take a factory tour. It is a long journey of a little lessthan three hours by car from Hue City to the factory. First, the children reported on the environmental activities
up until to then the Danang INAX employees. The children gave their report while feeling slightly nervous about
having to speak in front of many adults. In the factory tour that followed, students watched water tap hardware
being made at an actually operating production site. Factory tours are extremely rare in Vietnam. The children
asked questions to LIXIL employees while looking on with great interest at the production site that they normally
don’t have the opportunity to see. Feedback included: “It’s a very clean factory.” and “The toilet at the factory
was cleaner than any toilets we surveyed.” In the end, the children loudly exclaimed that they had a great time,leaving us with the feeling that the environmental activities had left quite an impression on the children.

Employees listening to the presentation

Watching with great interest thecompletion of water taps, a sight neverseen before

Head of the Manufacturing Department
explaining products to the children■ Together with STT
Environmental activities at Nam Sơn Commune (July 18)
Nam Sơn Commune is a rural community of about 1,500 people that cultivate crops including rice and corn in a
mountainous area of northern Vietnam approximately three hours by car from Hanoi. The commune consists ofseven scattered settlements where people live while using cropland located on the sides of steep slopes. STT
works together with LIXIL to encourage the use of indigenous plant varieties and farming methods that take thelocal ecosystem into consideration while conducting initiatives including surveys on living creature and making
sanitation improvements in cooperation with the local people. In addition, we provide assistance for toilet
construction in response to requests from villagers. Sustainable sanitation improvements are aimed for byproviding assistance for half of construction costs, and having each household pay the remaining amount andconduct the construction work. This year’s visit was the first in three years, and during this visit we conducted aclass and workshop on toilets for 66 children and youth group members. First, an original textbook called “Let’s
Think About Toilets” was used for a class taught by an employee of LIXIL VIETNAM aimed at teaching theparticipants how to appropriately use the toilets constructed so that they could be continued to be used in the35

future. While the class had to be conducted, showing the textbook because there was no projector, the children
were all smiles as they gathered close to the teacher and enthusiastically asked questions.

Residents of Nam Sơn Commune
working in the fields while wearing
traditional clothing

Class using an original textbook

Conducting class while encouraging
children to speak

After that, a workshop was held in which the results of a survey on settlement toilets were summarized. The
youth group members and other children made a presentation while using the photos and illustrations covering
the types of toilets, the role of toilets, and issues with toilets in each settlement. While the ratios differeddepending on the settlement, not many settlements had installed flush toilets, and soil saturation toilets (toilets
consisting of only a hole in the ground) accounted for 80% of the toilets in some settlements. During thepresentation, a future policy of first changing the soil saturation toilets to compost toilets was put forth.
Feedback included: “I understood the negative impact of soil saturation toilets.” and “When I go home, I will try
talking to my parents about improving the toilet at our home.”Workshop on toilets

Report on the current state of
toilets in the village

Commemorative photo withThrough these activities we were able to see children taking an interest in the environment and enjoying
studying about the environment, as well as improvements in the living standards of children, leaving us with theimpression that the activities that have been conducted up until now are gradually having a steady effect.
Furthermore, these activities have also given our employees in Vietnam an opportunity to feel a sense ofaccomplishment and fulfillment different from their day-to-day operations, and serving as a source of
encouragement in these day-to-day operations.
By conducting environmental activities and education, LIXIL aims to not only encourage the growth of children,
but also the continued growth of employees in order to contribute to the sustainable development of Vietnam.

36

Environmental activities participantsThua Thien–Hue

22 elementary school children in Thuy Xuan Elementary School, Hue

Province

6 students in Huong Long Ward of Hue
21 students from Lam Mong Quang Junior High School, Vinh My Commune, Phu Loc District

Hoa Binh Province

66 children and youth group members from Nam Sơn Commune, Tan Lac District

BAJ

Vietnam Office : Tokyo Office, Emiko Katayama ,Ly Ba Khuong, Pham Vu Tien
Nguyen Dinh Dong, Nguyen Tam Thuy Dung, Yuriko OshimuraInterpretation: Truong Dinh Lam

STTVietnam Office : Representative/ Mayu Inou,
Nguyen Thanh Tung, Nguyen Thi Thanh Loan, Do Thi Hoa

LIXIL

LIXIL VIETNAM General Affairs Department : Le Thi Tuyet Mai
LIXIL VIETNAM Human Resources Department : Nguyen Hong Hanh
Danang INAX Technology Department : Nguyen Quoc Vuong
Danang INAX Manufacturing Department : Vo Anh Loc
CSR and Environmental Affairs Promotion Department : Manager/ Toshihiro Kawakami
Asako Tadenuma

Developments up until now
Active period

Main activities

2007

-

Start of activities with BAJ and Save the Children (three-year contract)（Japanese Only）

April

Creation of original textbooks

June to August

Environmental education conducted in Yen Bai (north of Hanoi) and Hue

March

Invited children from Yen Bai and Hue to the Eco-Products exhibition in Hanoi and gave a2008

tour of INAX VIETNAM Co., Ltd. *1
June

Environmental education conducted in Yen Bai and Hue（Japanese Only）

December

Environmental education conducted in Yen Bai, Hue, and Qui Nhon

2009

June

Environmental education conducted in Yen Bai, Hue, and Ho Chi Minh（Japanese Only）

2010

-

Launched activities with BAJ and STT

January

Environmental education conducted in Hue and Qui Nhon. Gave factory tour of VIETNAM
TILE Co., Ltd. *2

July

Environmental education conducted in Nam Sơn Commune, Hoa Binh Province, Hue, and
Ho Chi Minh

2011

January

Environmental education conducted in Nam Sơn Commune, Hoa Binh Province, Hue, and
Ho Chi Minh

June to Augast

Environmental education conducted in Phu Vinh Commune, Hoa Binh Province, Hue, and37

Ho Chi Minh（Japanese Only）
Activities report by residents of Nam Sơn Commune, Hoa Binh Province and factory tour at
INAX VIETNAM Co., Ltd. *1（Japanese Only）
2012

February

Environmental education conducted in Phu Vinh Commune, Hoa Binh Province and Hue（Japanese Only）

July

Environmental education conducted in Dich Giao Commune, Hoa Binh Province and Hue
Activities report by residents of Phu Vinh Commune, Hoa Binh Province and factory tour at
LIXIL INAX VIETNAM Corporation（Japanese Only）

2013

March

Environmental education conducted in Dich Giao Commune, Hoa Binh Province and Hue
Activities report by students from Ngoi Sao and factory tour at LIXIL INAX Saigon
Manufacturing Co., Ltd. （Japanese Only）

AugastEnvironmental education conducted in Dich Giao Commune, Hoa Binh Province and Hue
Activities report by residents of Dich Giao Commune, Hoa Binh Province and factory tourat LIXIL INAX VIETNAM Corporation（Japanese Only）

2014

February

Environmental education conducted in Dich Giao Commune, Hoa Binh Province and Hue（Japanese Only）

July

Environmental education conducted in Nam Sơn Commune, Hoa Binh Province and Hue
Activities report by children from the suburbs of Hue and factory tour at LIXIL INAXDANANG Manufacturing Co., Ltd. （Japanese Only）*1. Currently LIXIL INAX VIETNAM Corporation*2. Currently INAX Saigon Manufacturing Co., Ltd.

38

Forest Ecosystem Conservation Activities
Forest preservation activities in Japan
We work with government, NGOs and NPOs to
conduct volunteer activities such as thinning forests
a nd w o odl a n d s, pl a nt ing tre e s a n d ot h e renvironmental improvements. We are currently
working with local communities in Mie, Nagano and
Ibaraki prefectures, where we carry out activities
twice each year, in the spring and autumn.
Activities in Mie Prefecture
In support of the corporate forest-building activities
promoted by Mie Prefecture, in 2008 we entered into
a forest preservation agreement with Iga City, andbegan activities in the Kamiawa area. By 2014 we had
planted approximately 0.76ha of mountain forest in
the Kamiawa area, and we plan to carry out thinningand pruning on a site of approximately 0.5ha.
Through the total ten times of activities, we carried
our thinning, tree-planting, installation of protective
netting, and carpentry for children.
Activities in Nagano Prefecture
In 2009, we launched activities in Achi Village,
Shimoina District as part of Nagano Prefecture’s“Adopt a Forest” forest promotion project. By 2014,
we had thinned and cleared approximately 16ha offorests in West Ward, Achi Village, and we now plan
to clear a 1,400 m work path. Between 2009 and June
2014, we held a total of nine activities sessions.
During FY2014, 135 people took part in clearing work
paths, and using chain-saws to thin the forest.
Activities in Ibaraki Prefecture
In 2009, we launched conservation activities tosupport mountain villages in Shishitsuka, TsuchiuraCity, Ibaraki in partnership with the Certified NPO for
Nature preservation and History Transmission of
Shishitsuka Satoyama. We carried out natureobservation in mountain village areas, maintainedwater resources and carried out maintenance onwater channels for wetland areas known as yato, andremoved foreign plants known to be harmful tonative species. Between 2009 and the end of October
2014, we held a total twelve times of activities
sessions.

39

Number of participants since FY2011 (Time October 27, 2014)
Number of participants
Base

Date of activities

Employees’

Local community
and

Employees’

Employees

Local government
Mie
Prefecture

NaganoPrefecture

IbarakiPrefecture

Totalfamiliesfamilies

October 29, 2011

23

93

35

151

November 3, 2012

28

92

19

139

April 20, 2013

47

60

17

124

June 11, 2011

35

28

12

75

November 3, 2011

13

23

17

53

July 2, 2012

9

29

15

53

November 3, 2012

5

22

17

44

June 1, 2013

10

34

10

54

June 7, 2014

12

27

23

62

October 27, 2014

12

28

33

73

June 18, 2011

13

66

7

86

November 5, 2011

10

58

7

75

July 7, 2012

7

53

3

63

November 10,2012

12

45

0

57

July 20, 2013

13

45

5

63

June 14, 2014

13

55

6

74

October 11, 2014

31

56

2

89

310

859

232

1,401

40

Participation in local communities
Holding dialogs in local communities
Since FY 2012, LIXIL’s offices have held dialogs on themes including local
exchanges with stakeholders in living in the community, local community
contributions, and the activities of local government, residents’associations, and local communities. Dialogs where held at a total ofthree business locations during FY 2012, namely one factory, one showroom, and one store. During FY 2013, thenumber of business locations where dialogs were held increased, as dialogs were held at 24 factories, 7 sales
offices, and 3 stores in order to conduct various discussions in each local community. During FY 2014, activities
will be conducted to deepen ties between offices and local communities.
* See here for details such as an overview of dialogs being held

Other community contribution activities
Social contribution spending (donations) for FY2013
Category

Amount

Ratio

Charitable contributions

245,367,578 yen

18.80 ％

Community investment

530,329,087 yen

40.70 ％

Commercial initiatives

528,000,000 yen

40.50 ％

1,303,696,665 yen

―

Total

※Scope of data collection: LIXIL Group and LIXIL Corporation
LIXIL makes donations to local governments, various associations, regional organizations, educational institutions,and other groups that conduct local community activities in Japan and overseas. The contributions are used for
purposes such as community revitalization, crime prevention and security maintenance in local communities,
and activities aimed at supporting disabled and elderly people.

Holding Noda Rice Field Wildlife School
Our Noda Office and Nanakodai Office in Chiba Prefecture haveconducted the Noda Rice Field Wildlife School in City’s citizens’ rice
field allotments at Egawa, Noda City, Chiba Prefecture that aims toteach the importance of biodiversity by growing rice. In December
2012, Noda City received a pair of oriental storks free of charge fromTama Zoological Park with the aim of helping the species (designatedas a species of animal designated for special protection in Japan) torecover in the wild, and Noda City began breeding the birds at facilities located within the city. Over the next few
years, the aim is to train chicks born to the pair to feed themselves and then to release them into the wild. Noda
Office and Nanakodai Office support the objectives of Noda City’s project, aimed at learning the importance ofprotecting environments where various organisms live by growing rice in fields using limited agrichemicals which
provide habitats for the diverse range of creatures (such as sludge worms, frogs, snakes, pond loaches andJapanese common catfish) needed for the oriental stork to survive as a creature at the top of the food chain.
Activities were held six times during FY 2013, starting with rice planting in April, and followed by grass cutting,natural observation, firefly observation, and rice harvesting. At the final activity of the year held on September
29 (Sunday), a total 37 employees and their family members held a harvest festival.

41

Sponsorship of an International Triathlon Event
Every year LIXIL serves as the main sponsor for the IRONMAN 70.3
Centrair Chita Tokoname Japan race with the aim of supporting local
communities through sport. The fifth triathlon held on June 1, 2014
was a high-level race in which athletes from Japan and overseas
gathered to compete for a spot in the world championship. The event
was a big success this year, as approximately 200 employees took partas competitors and as race operation and support volunteers.
* See here for the official website of IRONMAN 70.3
* See the news release IRONMAN 70.3 Centrair Chita Tokoname Japan for more details（Japanese Only）

Disaster Recovery Support Activities
Since the Great East Japan Earthquake Disaster in 2011, LIXIL Group has been involved in a variety of activities
aimed at helping the Tohoku Region to recover as quickly as possible. These have included the donation of
products to the Minna No Ie Toyo Ito Project, volunteering programs such as the IPPO IPPO NIPPON Project,recovery support activities in which the employees volunteer their time, and activities that make use of LIXIL
products and services. In support of the Fukushima Sakura Project, LIXIL Tohoku Branch were sent out as Tohoku
recovery support engineers as initiatives were launched for working together with local young people to support
the local economy while working to reconstruct and achieve sustainable development for damaged communities.
This fiscal year, LIXIL also plans to provide water-related products for the facilities at the Children’s Village
Touhoku that is scheduled to open in October 2014. In addition, in response to damage in the Republic of thePhilippines suffered as a result of the major typhoon Haiyan in 2013, reconstruction was supported through thecontribution of emergency assistance funds of 10 million yen and the donation of funds and goods madepossible through fundraising activities by employees of the LIXIL Group.
Main activities
Japan/Great East Japan Earthquake reconstruction assistanceCharity event

SMILE AGAIN ～YELL from KASHIMA (2011)

sponsorship through2nd IRONMAN 70.3 Centrair Chita Tokoname Japan (2011)

employee participation

Kids Workshop Carnival (2012, 2013)
LIXIL Takamatsu Showroom Charity Concert (2013, 2014), etc.

Charity event

Michinoku Photo Project (2011)

sponsorship

Tohoku Rokkonsai (2012, 2013)
VOICES meets Romantic Beat -Pray for Moon-(2012 年)
Fukushima Sakura Project (2014), etc.

Human resources

Human resources dispatchingdispatching
Product donation

Shirahama Reconstruction House Project in Kitakami Town, Ishinomaki City, Kogakuin
University (2011)
Minna No Ie Toyo Ito Project (2012, 2013)
Higashi Matsushima City Yamoto Higashi Day Care Center, Save the Children Japan (2012)
Ishinomaki Kazuma Community Center, Fondation SAKURA du Chateau de Fere (2012)42

Tsukahara District Assembly Hall, Odaka Town, Minamisoma City, Fukushima Prefecture(2014)
Children’s Village Touhoku, SOS Children’s Villages Japan (2014), etc.
Donations and

IPPO IPPO NIPPON Project (2011 to present)

sponsorship
Overseas/Republic of the Philippines
Donations

Approximately 10 million yen in assistance funds donated by the LIXIL Group through theauthorized NPO Japan Platform(2013)

LIXIL Philippines donated over USD 2,000 to the Philippine Red Cross (2013)
Donations from LIXIL Group employees contributed to recipients at the beginning ofDecember (2013)
LIXIL donated 10,000 bowls, plates, spoons, and children toothbrushes to UNICEF
Philippines (2013)
LIXIL and American Standard Brands jointly donated 10,000 simple pan-type toilets to the
UNICEF Philippines office (2014)* See the news release Fukushima Sakura Project (2014) for more details（Japanese Only）* Tohoku Future Creation Initiative* Minna No Ie Toyo Ito Project（Japanese Only）* Children’s Village Touhoku（Japanese Only）* See the news release Assistance for Damage from Typhoon Haiyan in the Philippines for more details（Japanese Only）

IPPO IPPO NIPPON Project
We have cosponsored the IPPO IPPO NIPPON Project, which is being
promoted by 375 companies (as of June 2014) throughout Japan,
with the cooperation of the Japan Association of Corporate
Executives since 2011. The project supports children indisaster-affected areas through the donation of practical teachingequipment to specialist schools and provides fine-tuned support ofactivities aimed at training people and revitalizing industry according
to the needs of disaster-affected areas. The fifth application period
ended on January 31, 2014, and the total assistance provided
through this project exceeded 1.3 billion yen. LIXIL will continue
supporting this project so that community-based activities andsupport for the young generation can continue in the future.
* [IPPO IPPO NIPPON Project] （Japanese Only）

Charity Concert Held to Support Disaster Recovery
A voluntary charity concert was held at LIXIL’s Takamatsu Showroom
on March 11, 2014, three years after the Great East Japan
Earthquake. Continuing from 2013, at this second concert there
were even more participants that gathered on the day of the concert
to express their hopes for recovery through music. Donations
totaling 92,524 yen were collected on the day, and the full amount
was donated to the Japanese Red Cross Society.

43

Practical lessons at a specialist school using
teaching materials
donated by LIXIL

In Partnership with Our
Employees
LIXIL is committed to offering great workplaceenvironments where the individuality of all
employees is deeply respected.

44

Basic Approach to Human Resources
In order to achieve our Management Vision of “becoming a global leader in the living and housing solutionsindustry”, LIXIL Group believes it is necessary to create a corporate culture that is superior to our global
competitors and to build a human resources platform that increases the vitality of our employees.
For this reason, we have defined the corporate culture pursued by the LIXIL Group as “Implement Meritocracy”,“Respect Diversity” and “Provide Equal Opportunity”, and promoted the development of human resource
platforms and operational improvements with the aim of establishing an advantage over our competitors in thefield of human resources.

Approach towards recruitment
LIXIL Group pays close attention to respect for humanrights when employing and recruiting employees, andworks hard to establish fair selection, employment ofdiverse human resources irrespective of social group,
and a labor platform that allows diverse humanresources to display their full potential.
In our recruiting activities, we look to hire people who
agree with the values defined in our “LIXIL VALUES”
and who are capable of showing this through their
behavior. Specifically this means “people who deliveron their commitments”, “people with the passion to
Employee makeup by gender for Japan
improve and take on new challenges”, “people capableand outside Japan (only directly employed)of open and honest communication” and “people whoare capable of thinking from the customer’s perspective
and acting with integrity and fairness”.
We also actively pursue the recruitment of external human resources to increase the global competitiveness ofour business, utilize human resources affiliated to our overseas subsidiaries when carrying out our global
operations, and recruit and utilize diverse talents, including foreign employees and women, in order to promote
diversity.
* See here for more details on LIXIL VALUES

45

Employee makeup by type of employment and by gender
GenderRegular staff *1

In Japan

17,95425.70

Female

5,328

7.60

Male

19,59728.00

Female

6,505

9.30

Male

37,55153.70

Female11,833

16.90

Subtotal

49,384

70.60

Male

2,841

4.10

Female

7,799

11.20

Male

266

0.40

Female

96

0.10

Male

3,107

4.40

Female

7,895

11.30

Subtotal

11,002

15.70

Male

40,65858.20

Female19,72828.20

Subtotal

60,38686.40

In Japan

2,691

3.80

Overseas

6,832

9.80

Subtotal

9,523

13.60

69,909100.00Regular staff total

In Japan

Overseas
Non-regular staff total

Directly employed Total

Indirectly employed *3

％

Male

Overseas

Non-Regular staff *2

NumberGroup total*1 Regular staff: Employees under a labor contract without the period of employment*2 Non-Regular staff: Employees under a labor contract with the period of employment*3 Indirectly employed: Temporary and subcontracted staff

Changes in the number of employees (Japan only)
Number of new hires
FY 2012

Regular staff

FY 2013

Of which,

Of which,

LIXIL Corporation

LIXIL Corporation

564 (336)

243(207)950(376)373(237)

Non-Regular staff

2,767

914

2,758

571

Total

3,331

1,157

3,708

944

(of which, new graduates)*Only in Japan46

Number of resigning staff
FY 2012

Regular

FY 2013

Of which,

Of which,

LIXIL Corporation

LIXIL Corporation

2,206

1,611

697

274

8.90%

8.90%

3.00%

1.60%

Non-Regular staff

2,463

521

2,372

687

Total

4,669

2,132

3,069

961

staff

Turnover rate **Only in Japan*The turnover rate uses the personnel chart for April 1 of the fiscal year as a basis for comparison with the number ofresigning staff until March 31 of the same fiscal year

* Data on LIXIL Group Employees (Annual Report, CSR-Related Non-Financial Data) (1,664KB)(Number of employees by nationality, number of managers and composition, average age, average continuous years of
employment, etc.)[Scope of Data Collection]
The organization being reported includes a total of groups / companies of the LIXIL Group: LIXIL Group Corporation and7*1of its subsidiaries and LIXIL Corporation’s major subsidiaries (10*2 companies in Japan and 26*3 groups /companies outside Japan). The number of groups and companies is 43 in total. The scope of the current report covers
the majority of the LIXIL Group Corporation’s consolidated subsidiaries as of March 31, 2014, but is not equivalent tothe scope of consolidation.
*1 LIXIL Corporation, LIXIL VIVA CORPORATION, Kawashima Selkon Textiles Co., Ltd., LIXIL Housing Research Institute,Ltd., HIVIC CO., LTD., JIO Corporation LIXIL REALTY, Corp.
*2 LIXIL Total Hanbai Corporation, Asahi Tostem Exterior Building Materials Co., Ltd., G TERIOR Corporation, LIXILSUZUKI SHUTTER CORPORATION, JAPAN HOME SHIELD CORPORATION, LIXIL Toyo Sash Shoji Co., Ltd., Dinaone
Corporation, TM.S Corporation, LIXIL Building Remodeling Sales Co., Ltd, LIXIL Total Service Corporation Japan*3 Permasteelisa S.p.A., TOSTEM THAI Co., Ltd., TOSTEM THAI MARKETING Co., Ltd., LIXIL Manufacturing (Dalian)
Corporation, A-S CHINA PLUMBING PRODUCTS Ltd., LIXIL INTERNATIONAL Pte. Ltd., PT. LIXIL ALUMINIUM INDONESIA,ASD Americas Holding Corp., LIXIL INAX VIETNAM Corporation, LIXIL INAX DANANG Manufacturing Co., Ltd., LIXIL INAXSAIGON Manufacturing Co., Ltd., LIXIL-Haier Housing Products (Qingdao) Co., Ltd., LIXIL Sanitary Fitting Manufacturing(Suzhou)Corporation, LIXIL (China) Investment Co., Ltd., LIXIL TAIWAN CORPORATION, and 11 other companies
consolidated subsidiaries[Data Collection Method and Period]
Data collection on numbers of employees is done on an original registration basis for each company. The number ofparticipants in various systems, etc.. is counted based on their usage during the fiscal year from April 1 to March 31.
Lost time injuries frequency rate and severity rate use data that is only collected for directly employed staff including
employees seconded to another Group companies.

47

Internal Communication
The LIXIL Group is actively engaged in internal communication so that employees can openly share their opinionswith a critical mind, based on the belief that it is important to continually change and take on challenges on yourown.

Implementation of an employee opinion survey
Continuing from FY 2012, an employee opinion survey called the LIXIL Sunrise Survey was conducted in
December 2013. From FY 2013, in addition to the 26 principal operating companies of the LIXIL Group, newcompanies were added to the scope so that all 42 companies of the LIXIL Group were covered by the survey.
Responses were obtained from 29,454 employees (out of 32,365 target employees, response rate of 91.0%) for a
total of 60 questions aimed at assessing matters including the degree of penetration of management strategy
and employee satisfaction. The purpose of this survey was to confirm the degree of penetration of the
management top vision, the degree of penetration of the corporate culture aimed for by LIXIL (respect fordiversity, provision of equal opportunities, and the implementation of meritocracy), the degree of practice of
LIXIL VALUES (shared values), and the state of engagement (connections between employees and the company)so that this information may serve as a reference point for future personnel policies and systems.
The survey results suggested that the company-wide policies and departmental actions taken in response to the
FY 2012 survey results have been effective and that there was a trend of overall improvement. As a result ofvarious efforts including the promotion of active participation of women through LIXIL Women’s Network andother efforts, leadership training conducted for all generations, and the promotion of the acquisition of paid
leave, there were particularly large improvements in the areas of the penetration of diversity, the provision ofopportunities for human resource development and education, and the work-life balance and acquisition of paid
leave. In addition, strong results have continuously been received since FY 2012 for the areas of delivering oncommitments and acting with integrity and fairness.
The survey results have been summarized in the LIXIL Sunrise Survey Report booklet for distribution to all
employees. In addition, we have compiled a chart allowing for comparison of company-wide averages andaverages of each department for each question, based on which feedback is being provided to every department.
Based on these results, workshops are held for each department and action plans are established throughdiscussions regarding the results and issues within departments. This use of survey results to lead to certain
action is one of our frameworks for utilizing the voices of employees in management.
* See here for more details on LIXIL VALUES

Holding internal events
Led by President Fujimori, in November 2013 submissions were acceptedwithin the Company for proposals on the topic of becoming global leaders.
The impetus for this was the Creating the Future Leader of Japan Project of
the Nihon Keizai Shimbun. LIXIL also participated in the Miraimen serial
newspaper column contained in the Nihon Keizai Shimbun, a leading
economic newspaper in Japan, every month from November 2012 toMarch 2014 in which managers of various companies would present topics
to students and ask for ideas in response. There were many responses fromstudents to the theme that was presented by President Fujimori. Internal submissions were accepted for themes
LIXIL employees should rightfully address in an aim for globalization, and 380 proposals were received from
employees ranging from young employees to executives, out of which three outstanding contributors were
decided on. At the awards ceremonies held at the end of the LIXPO 2014 new product exhibition for customers
at two locations (Tokyo and Chubu), over a total of 300 employees gathered with contributors as the centerpiece.
Talk sessions were also presented by members of top management, and the venue was filled with an atmosphereof enthusiasm.
48

Mutually sharing and exchanging information with employees
In order to give employees opportunities to learn more about the LIXIL Group, email magazines and booklet aredelivered within the Group on Group-related activities, news, and topics. In terms of email magazines, in addition
to the LIXIL TODAY that is distributed every day and the LIXIL MONTHLY that is distributed every month, the LIXILTIMES that allows each department to freely post news for each individual department was newly launched from
December 2013. LIXIL TODAY communicates in timely manner news on other workplaces and projects, such as
the opening of showrooms and factory groundbreaking ceremonies, while LIXIL MONTHLY disseminates
information to promote an understanding of topics such as the LIXIL brand, culture, and organizational structure.
In addition, the quarterly internal newsletter Link is distributed as a booklet. It is distributed so that information
on Group trends and messages from the president can be delivered to employees such as those on factory
production lines that don’t normally have many opportunities to use the intranet. We also ask that employees
take this internal newsletter home for use as a tool for sharing LIXIL’s activities and the state of workplaces withfamily members.
The April edition included features on internal brand penetration for FY 2014 and the results of internal
submissions on the theme of becoming global leaders. In addition, a dedicated intra-site was launched topromote reconstruction support for the Great East Japan Earthquake and diversity initiatives being implemented
by the Group, and efforts were made to share information internally on topics such as the voluntary activities of
the LIXIL Women’s Network.
In addition, continuing from 2013, the President & CEO held round-table discussions in Japan and overseas toaccept candid suggestions and opinions from employees. We actively establish opportunities for meeting with
employees at factory visits and events and when visiting branches and sales offices.

▲ Internal newsletter: Link

▲ Email magazine: LIXIL MONTHLY

49

Promoting Diversity
LIXIL Group has made a “LIXIL Diversity Declaration” and promised to promote diversity among all employees. As
we seek to achieve true globalization and increase the strength of the Group, it is essential that we build a
corporate culture that possesses creativity and energy. At LIXIL Group, we promote diversity across the entire
Group with the aim of achieving “Respect Diversity”, “Provide Equal Opportunities” and a “Implement
Meritocracy.”

LIXIL Diversity Declaration
The corporate culture of LIXIL drives to become a company that utilizes energy and innovation generated bydiversity for the business. We also aim to create an environment where everyone should not be content with thepresent and will achieve better results by continuously clearing self-imposed hurdles.
1. Respect Diversity
We will welcome differences among genders, ages, races
cultures,nationalities, beliefs, and backgrounds.
Energy and creativity generated by the open and passionate
discussion can be used as a source of a competitive edge.
2. Provide Equal Opportunity
We will provide equal opportunities and occasions to anyone thattries to demonstrates positive and proactive attitude regardless ofbackground.
3. Implement Meritocracy
We will fairly evaluate how much one put LIXIL VALUE in practiceand how much one performs.
In order to achieve this corporate culture, we will make our Diversity Declaration here and execute the following
activities.
1. Human Resources Measures
As our stretch goal, we will aim to reach 30% of diversity talents including female employees among the
newly promoted managers in FY2015. (The total numbers of internally promoted and externally hired
managers) 30% of new graduate hires in April 2014 will be made up of diversity talents including female
employees. We will establish teams and taskforces with diversity including female employees in order tocreate the opportunity to develop their talents.
2. Human Resources Development
The leadership development programs should include over 15% that are diversity talents including female
employees.
3. Improve the Environment
To promote WLF* (Work-Life-Flexibility) and performance by diversity talents including female employees,
we will establish programs such as child-care and Japanese language training.
4. Promote Our Corporate Culture
LIXIL Women's Network will be established to provide forums to help diversity talents and programs todevelop themselves while learning from each other. We will work together to promote advancement of
future opportunities of diversity talents including female employees. The President and his management will
give us a "Diversity Talk" to discuss diversity issues on a monthly basis.
*WLF: Aimed at achieving flexible ways of working so that high performance can continue to be realized throughchanging life stages

50

Promoting the active participation of womenAt LIXIL, we believe that the active use of female employees is essential for promoting diversity. The Human
Resources & General Affairs Headquarters has established the Diversity Promotion Office in order to promote theactive use of women. In addition, the We Do Action plan was formulated in August 2014 to accelerate the active
use of women. We will conduct activities in accordance with this plan going forward. On a non-consolidated basis,
while there were 22 female managers (0.9%) at LIXIL in March 2012, this was increased by approximately 5.7
times to 119 female managers (5.1%) in November 2014. These 119 employees can be broken down into 12
department managers or equivalent and above (2.2%), and 107 section managers or equivalent and above (5.9%).
In addition, there are 5 female executives (including the LIXIL Group) (4.5%), which can be broken down into 1
director, 2 senior managing executive officers (including 1 non-Japanese employee), and 2 managing executive
officers (the percentages are the ratios of the number of women total number of employees in each respective
position). We plan to further increase opportunities for women to be active going forward.
* News release on the WeDo Action plan（Japanese only）
Number and percentage of women managers
FY 2012FY 2013

Of which,

Of which,

LIXIL Corporation

LIXIL Corporation

Number of women managers

77

47

111

76

Total number of managers

2,847

2,189

3,062

2,280

Composition ratio

2.70%

2.15%

3.63%

3.33%

*Only in Japan*Calculated based on the qualification system of each operating company

Promoting Work-Life-Flexibility
LIXIL aims at achieving flexible ways of working so that high performance can continue to be realized throughchanging life stages as a policy for establishing a work-life balance. In September 2012, an expert committee
including members of the LIXIL Labor Union called the WLF (Work-Life Flexibility) Advisory Committee waslaunched, and as a result of repeated discussions between labor and management, the following systems wereintroduced and expanded as of April 2014.
* See here for overall work-life balance support policies
Aim

Contents of system revision

Promoting use of paid leave

Introduction of memorial leave, Promoting acquisition of relaxed leave

Reemployment of employees that

Introduction of career return systemhave resigned due to childbirth,childcare, or nursing careChildcare support

Extend the childcare leave period from a maximum of one and a half year to a
maximum to three years
Extend the reduced work hours for child care period for a maximum of until
completion of third year of elementary school
Introduction of the adjusted working time system (change work starting andending time) for employees providing childcare, expand application to pregnant

51

women as well
Formal introduction of extended daycare fee assistance
Provision of intranet and email environment during leave (will be introduced assoon as ready)Nursing care support

Assistance for amount equivalent to social insurance contribution during leave
Accumulated paid leave (lapsed paid leave) applied to absence for bonus
calculations※Conducted by LIXIL Corporation and some operating companies and subsidiaries

Promoting the employment of people with disabilities
LIXIL employs 392 people with disabilities, and its employment rate of people with disabilities is 2.04%. In
addition to the creation of employment opportunities, we also work to create workplace environments thatallows for the lively participation of everyone, and we provide ways of working in line with the characteristics ofdisabilities in a wide range of workplaces such as R&D, production, and various administrative fields.
Furthermore, in July 2014 we opened the WING NIJI in the Koto-ku, Tokyo, an employment center for people
with disabilities that takes into consideration the characteristics of disabilities as we take on the challenge offurther expansion of employment for people with disabilities.
Number and rate of disabled employees (persons)
FY 2012FY 2013

Of which,

Of which,

LIXIL Corporation

LIXIL Corporation

Number of disabled employees

733

375

952

392

Disabled employment rate *(%)

1.84%

1.96%

2.20%

2.04%

Notes: 1.Only in Japan
2. For employees at March 31 of the fiscal year
* Calculated based on the Employment Rate System for Persons with Disabilities under guidance of the Ministryof Health, Labour and Welfare.

Promoting reemployment after retirement age
LIXIL has adopted a reemployment after retirement age system. LIXIL offers reemployment for employees thathave reached the age of 60 on a request basis so that these employees can continue working using their wealthof experience and skills and pass on technologies to the next generation.
Reemployment ratio after retirement
FY 2012FY 2013

Of which,

Of which,

LIXIL Corporation

LIXIL Corporation

Number of employees retiring

209

165

172

110

Number of employees reemployed

128

98

145

96

61.20%

59.40%

84.30%

87.30%

Reemployment ratio

Notes: Only in Japan* See here for the scope of data collection

52

Occupational Safety and Health
The LIXIL Group states in its Group Charter of Corporate Behavior, “The Group promotes the mental and physicalwell-being of all workers by prioritizing safety to realize an ideal working environment without any work-related
accidents.” Accordingly, the group has implemented approaches to protect the safety and health of its
employees.

Occupational safety and health management system
Its active approaches to prevent accidents at work include the introduction of an occupational health and safety
management system. Furthermore, a “Health and Safety Committee” has been set up in each businessestablishment for the purposes of sharing issues relating to the health and safety at work, considering actions toimprove and implementing management based on the PDCA cycle.
Lost time injuries frequency rate and severity rate (Only in Japan)
FY 2012FY 2013

Of which,

Of which,

LIXIL Corporation

LIXIL Corporation

Frequency rate *

1.02

0.36

1.13

0.4

Severity rate *

0.01

0.01

0.01

0.003

LTIFR (Lost time injuries frequency rate) **

0.41

0.36

0.42

0.4

[Scope of data collection] LIXIL Corporation, 10 subsidiaries, and 7 Group operating companies*Only in Japan*Only directly employed* Calculated based on the method used in the Survey on Industrial Accidents of the Ministry of Health, Labourand Welfare** LTIFR: Lost time injuries frequency rate is the number of deaths and injuries due to industrial accidents
divided by the cumulative hours worked multiplied by one million (lost time is defined as any period of one day
or more)Production division initiatives
While the production division had been divided into a metals and construction materials company and a
housing and construction materials company following the LIXIL integration in April 2011, LIXIL’s seven domestic
regions and 40 domestic plants were reorganized in April 2014. Although differing occupational safety and healthmanagement systems (independent systems based on OSHMS and OHSAS) for each company had been
established up until then, it was decided to integrate these management systems. In addition, practical researchseminars are held for each of the seven regions and plants in Japan twice a month in an effort to confirm andinspect actual production sites while expanding and rolling out information aimed at thoroughly eliminating risk
factors for machinery and equipment. Safety
Accident ratio by type of work:
management officers have been appointed to all plants to
LIXIL Corporation’s domestic production division
lead the understanding of the cause and the taking of an
appropriate response in the event of an accident, and toshare the relevant information with all plants within two
business days. Based on the shared information, all plants
conduct checks to confirm that there are no risks ofsimilar disasters or accidents at each plant as efforts are
made to prevent recurrence at all plants.
*Short stop: A situation in which facilities had to be stopped
for a temporary problem although a malfunction did notoccur, or the occurrence of a spinning phenomenon (idlingwithout production) for which restoration to the originalstate was possible through simple processing.

53

(Example) Safety and health management system diagram

Health management
LIXIL actively supports the health promotion of employees in cooperation with the LIXIL Health Insurance Society.
With a basic policy promoting activities for health maintenance and improvement, the following efforts are madetogether with the Health Insurance Society.
・Increase the health awareness of every employee and improve awareness of health self-management
・Provide opportunities for disease prevention and health promotion for many people
・Develop comfortable working environments that take into consideration the health of every employee
As a concrete initiative, activities were commenced from FY 2012 to prevent the increased severity of diseases byconducting regular health checks for all employees every year and actively recommending examination by
medical institutions in coordination with the human resources department and Health Insurance Society for
employees identified to be at high risk for diabetes or hypertension based on these results. During FY 2013,
recommendations through interviews with a medical professional were provided to 112 employees, whichfaithfully led to examination by medical institutions.
In addition, interviews by industrial physicians are faithfully conducted with employees with long working hours
as part of preventive health efforts so that no health damage is caused.
Furthermore, the Health Insurance Society encourages not only the insured employees but also dependents toreceive clinical surveys, uterine cancer and breast cancer screening, dental checkups, etc., and provides
assistance for the medical fees. In addition, specific health guidance for employees age 40 or above was provided
for 960 employees during FY 2013.
FY 2012FY 2013

Clinical survey consultation

6,426

7,184

Uterine cancer and breast cancer screening consultation

1,082

1,219

Dental checkup consultation

285

179

Specific health guidance personnel Implementation

883

960

* Only LIXIL Corporation
We are implementing the Health Promotion Campaign so that employees can actively work on improving theirhealth. The system allows participants to acquire points for activities such as walking, dieting, and quitting
smoking that can be exchanged for a selection of prizes. During FY 2013, 5,634 employees and family members
participated in the campaign.
FY 2012
Health promotion campaign

5,504

FY 2013
5,634* Only LIXIL Corporation
At LIXIL, we believe that mental health initiatives are also important for health promotion. At each businesslocation, we implement mental health seminars and stress checks as part of efforts to ensure that every

54employee has a correct understanding of mental health and their own condition in order to encourage them totake preventive measures if needed. Furthermore, mental health management education is also provided for
managers that serve as the cornerstone of line care in an effort to create working environments where early
detection and early treatment is possible.
FY 2012
Mental health seminarStress check participants
Mental health management education for managers

FY 2013204

230(implemented eight times)(implemented ten times)

3,731

84

129

125

* Only LIXIL Corporation
Reinstatement support is provided for employees on leave due to mental illness through the Workplace
Reinstatement Program. This program is structured so that support can be provided based on the individual
conditions of employees on leave, from care during leave to support and follow-up after reinstatement.
Furthermore, we have assigned industrial physicians specializing in mental health at five locations nationwide toestablish a system that can support reinstatement without difficulty and provide consultations on mental healthmanagement.

55

Creating a Better Workplace
In order to establish working environments where every employee uses their full capabilities and continuallywork energetically, the LIXIL Group strives to develop environments that allow for a balance of both work andlife.

Work-life balance support
LIXIL has established systems that support a work-life balance in all of the various life events of employees.
Main work-life balance support systems
Name of system

Details

Working

Members of applicable departments can start and finish work within the flexible

Flextime system

structure
Leave

hours on a voluntary or planned basis
Relaxed leave

Three days a year (can be connected with weekends, national holidays, andconsecutive holidays)

Memorial leave

Two days a year

Long service leave

Leave and memorial goods presented to employees for long service (10 years, 20
years, and 30 years)

ChildbirthChildbirth leave

Six weeks before childbirth, eight weeks after childbirth (maternity allowance
provided from health insurance)

Spouse childbirthThree days a year (split acquisition possible)

leaveChildcareChildcare leave

Up to the child reaches a maximum of three years old (childcare leave benefit
provided from employment insurance until child reaches a maximum of one and ahalf years old)

Reduced working

Working hours can be reduced by one hour or two hours per day for employees

hours

caring for a child until they reach the third year of elementary school

Adjusted working

The work start time or work finish time can be adjusted by 30 minutes or one hour

time systemfor employees that are pregnant or caring for a child until they reach the third yearof elementary school

Nursing

Extended daycare

Extended daycare fee assistance provided for employees caring for a child until

fee assistancethey begin elementary school if extended daycare is required for business reasonsChild nursing care

Five days per year for each child until they begin elementary school requiring

leave

nursing care (maximum of ten days for up two or more people)

Nursing care leave

Once for every state requiring care for each person requiring nursing care, up to acare

total of 93 days (split acquisition possible)
Reduced working

Working hours can be reduced by one hour or two hours per day

hours
Monthly salary

Assistance for amount equivalent to social insurance contribution during leave

supplementation
Bonus

Lapsed days of accumulated paid leave (lapsed paid leave) handled as work

supplementation

attendance for bonus calculations

56

Nursing care leave

Five days per year for each person requiring nursing care (maximum of ten days forup two or more people)

Note：Conducted by LIXIL Corporation and some operating companies and subsidiaries

Usage of various systems
Usage of maternity leave system (persons)
FY 2012FY 2013

Of which,

Of which,

LIXIL Corp.

LIXIL Corp.

Number of persons who used the plan

291

231

300

228

Number of persons who returned to work

258

205

275

221

Return ratio (%)
88.70%
88.70%
91.70%
96.90%*Only in Japan*Number of employees under time control: The 12-month average number of regular staff (including managers) andcommissioned and part-time staff.
*Overtime hours of regular staff (including those of managers) according to the systems of individual operatingcompanies

Usage of childcare leave system (persons)Male

FY 2012

Number of persons who

FemaleTotal

Of which,

Of which,

Of which,

LIXIL Corp.

LIXIL Corp.

LIXIL Corp.

1

1

254

195

255

196

1

1

214

176

215

177

1

1

218

179

219

180

100.00%100.00%98.20%

98.30%

98.20%

98.30%

2

2

285

215

287

217

2

2

201

149

203

151

2

2

215

152

217

157

started using the system
Number of persons who
returned to work
Number of persons whoplanned to return to work *Return ratio (%)
FY 2013

Number of persons whostarted using the system
Number of persons who
returned to work
Number of persons whoplanned to return to work *Return ratio (%)
100.00%100.00% 93.50%
98.00% 93.50%
96.20%*Only in Japan*LIXIL Corporation: The acquisition rate of childcare leave by male employees (the rate of childcare leave acquirer
accounted for by male employees with spouse that gave birth) was 0.2% in FY 2012 (average number of days acquired:84) and 0.4% in FY 2013 (average number of days acquired: 41.5).
* Number of employees planning to return from care leave: The number of employees who use the care leave system
and who plan to return in the fiscal year. Return rate = (Number of employees returning from care leave) / (Number of
employees planning to return from care leave) (%); provided that when a change in the planned date of return pushes
the date into the previous or following fiscal year, the employee planning to return from care leave is accounted for in
the number of employees planning to return from care leave (denominator of return ratio) of the previous or following
fiscal year.

57

Usage of care leave system (persons)FemaleFY 2012

Number of persons who started

Male

Total

Of which,

Of which,

Of which,

LIXIL Corp.

LIXIL Corp.

LIXIL Corp.

2

1

7

5

9

6

1

0

8

6

9

6

1

0

8

6

9

6

100.00%-100.00%100.00%100.00%100.00%

3

3

7

5

10

8

2

2

7

5

9

7

2

2

7

5

9

7

100.00%100.00%100.00%100.00%100.00%100.00%using the system
Number of persons who
returned to work
Number of persons whoplanned to return to work *Return ratio (%)
FY 2013

Number of persons who started
using the system
Number of persons who
returned to work
Number of persons whoplanned to return to work *Return ratio (%)

Only in Japan* Number of employees planning to return from care leave: The number of employees who use the care leave system
and who plan to return in the fiscal year. Return rate = (Number of employees returning from care leave) / (Number of
employees planning to return from care leave) (%); provided that when a change in the planned date of return pushes
the date into the previous or following fiscal year, the employee planning to return from care leave is accounted for in
the number of employees planning to return from care leave (denominator of return ratio) of the previous or following
fiscal year.

Prevention of overwork

LIXIL promotes highly efficient and productive ways of working to achieve an optimal number of working hours.
Initiatives aimed at reducing overtime include the designation of Wednesday as a no-overtime day and thestipulation that employees should leave the office at the designate time as a general rule, as well as theintroduction of an overtime advance notice system as a means for encouraging employees to consciously reduce
overtime. In addition, follow-up on employees with long working hours is conducted jointly by the Human
Resources & General Affairs Department and the departments the employees belong to.
* See “Occupational Safety and Health” for details.
Meanwhile, we aim for a paid leave acquisition rate of 50%. As a measures for promoting this, we haveintroduced the relaxed leave and memorial leave systems that allow for the acquisition of paid leave for threeconsecutive operation days once a year.
Monthly average overtime work hours
FY 2012

Number of employees under time control*(persons)Total overtime work hours ** (hours)
Monthly average overtime work hours / person (hours)

FY 2013

Of which,

Of which,

LIXIL Corp.

LIXIL Corp.

27,661

20,35827,316

19,6535,860,669

4,391,880

6,274,345

4,511,732

17.7

18.0

19.1

19.1

Only in Japan*Number of employees under time control: The 12-month average number of regular staff (including managers) andcommissioned and part-time staff. However, LIXIL VIVA CORPORATION contains only regular staff.
** Overtime hours of regular staff (including those of managers) according to the systems of individual operatingcompanies

58

Number of days of annual paid leaves taken per person *FY 2012

Number of employees who are entitled to take paid leaves

FY 2013

Of which,

Of which,

LIXIL Corp.

LIXIL Corp.

28,051

16,154

31,78019,169179,285

113,888236,474

153,371*1(persons)Total number of days of paid leaves taken (annualized)*2(days)
Number of days of annual paid leaves taken / person(days)
6.4
7.1(36.2%)
7.4
8.0(41.7％)*Only in Japan*1 The number of regular staff (including managers) and commissioned and part-time staff (registered at March 31 of
the fiscal year)*2 Total number of days taken by qualified staff (excluding special holidays)

Social welfare

So that employees and families can live abundant and stable lives, LIXIL cooperates with the Labor Union, Health
Insurance Society, and LIXIL Smile Club* as it works to enhance social welfare centered around initiatives
including lifestyle improvements, life stage support, and mutual aid. Specifically, in addition to various systems
including group insurance, asset formation savings, employee stock ownership plan, and pensions, LIXIL also
operates a long service leave system in which leave and bonuses are provided after consecutive service hasreached 10 years, 20 years, and 30 years; a congratulation and condolence money system in which bonuses arepaid at the timing of life events including marriage, childbirth, and children entering schools; and various
consultation contact points for employees.
*LIXIL Smile Club: Welfare association for promoting the lifelong welfare of union members and their families
Main consultation contact points
Details of consultations

Contact point

Sexual harassment power harassment

Human Resources & General Affairs Headquarters, Humanconsultation contact point

Resources Department

Consultations on workplace concerns

LIXIL Workers Union

Legal consultation

LIXIL Workers Union

Consumer finance consultation

LIXIL Workers Union

Legal, tax, and health consultation

LIXIL Smile Club/general affairs section of each office

Loan and savings consultation

LIXIL Smile Club

Insurance consultation

LIXIL Smile Club

Concerns such as nursing care, health,

LIXIL Smile Club/general affairs section of each officemanners, traditions, and human relationships* See here for the scope of data collection

59

Fostering Human Resources
Basic stance
LIXIL’s basic policy is to develop human resources capable of putting the LIXIL VALUE into practice and full of thespirit of taking on new challenges.
Specifically, this consists of :1. Developing leaders capable of global management
2. Developing professionals capable of putting the LIXIL VALUE into practice
We are committed to the themes to the right in order to achieve these objectives.
Theme 1: Development of next-generation leaders
・Selection and development of leader candidate at all levels
Theme 2: Professional development
・Planning and promotion of department dedicated education
・Dissemination of philosophy, promotion of OneLIXIL activities* See here for more details on LIXIL VALUESAssessment framework (human resources performance rating system)
Assessments covering all employees are conducted on the two elements of performance and values based on
merit-based practice. An open system is managed in which the employee involved participates in goal-setting
and self-assessment and thorough feedback is provided on the assessment results through interviews withsuperiors.
The purpose of feedback
1. By reliably providing feedback, improve the level of satisfaction towards assessments and ensure fairness.
2. Aim to develop employees by looking back over past activities and sharing future expectations.
Human resources performance rating flow

Education systems
The educational structure of LIXIL Corporation can be divided into two large parts: the development of common,
interdepartmental, and basic skills required for all personnel, and technical training focusing on particularfunctions or a particular company. This educational structure is managed by the company-wide educational
committee to promote LIXIL’s activities and share and solve issues.

60Development of next-generation management leaders
LIXIL has put its energy into the cultivation of next-generation executive leaders who will show their leadership in
future-generation management. In 2012, LIXIL began its “Executive Leadership Training (hereinafter called “ELT”)”
for department manager level staff to enhance the leadership of executive candidates. This training is a one-year
program to inspire participants from various perspectives, which includes residential workshops at special
training facilities and at the Great Wall of China, Beijing, and a half-year of personal coaching. This enables
participants to learn about leadership, corporate strategy and global business. Participants take on the program
actively with enthusiasm, receiving opportunities to feel the actual expectations of the senior managerial
members including the president and CEO. In fiscal 2013, LIXIL established “Senior Leadership Training(hereinafter called “SLT”)” for personnel in mid-level positions to provide them with an opportunity to consider
their own leadership at an early stage, and “Junior Leadership Training (hereinafter called “JLT”)” for mid-career
personnel. In fiscal 2014, “Fresh Leadership Training (hereinafter called “FLT”)” was started for young personnel
in their twenties. Further, LIXIL has organized activities to nurture leaders so as to enable them to conductbusiness at a more global level, such as the gathering and dispatch of selected ELT graduates and leader
candidates of overseas group companies to business schools abroad, and the holding of workshops in Italy.

▲Executive Leadership Training▲Junior Leadership Training

Categories and usage of various training and education support systems(including overseas business locations)
Item

Training summary

Number of participants

New employee training

Basic training for employees newly entering the company

3,434

Hierarchical training

Training for each job position or level for developing the skills

10,465and capacities respectively required
Executive Leadership

Scope: Department head class (executive candidates)

Training (ELT)*

Purpose: Seeking global leadership

Senior Leadership

Scope: Section head class

Training (SLT)*

Purpose: Cultivating values and learning management skills

Junior Leadership

Scope: chief class (middle-level employees)

Training (JLT)*

Purpose: determining to become a leader and training basic skills

Management training

Training for employees being promoted to management

47
57
80

477

positions
Division training

Training for each division for developing the skills and capacities

21,392

respectively required for development, production, sales, andother divisions
Other Skill acquisition

Special independent training for industries and job categories,

training, etc.

including the acquisition of official qualifications

6,198*Only LIXIL Corporation
In addition, domestic companies have introduced systems for correspondence course recommendations and thepartial provision of participation costs to employees that have completed courses.

61

Employee career development support
As part of career development support measures, LIXIL has introduced an MBA acquisition system for young
employees. This system aims to provide employees with the opportunity for learning leadership, management
skills, and an international way of thinking in order to develop passionate young employees committed toconstant self-improvement and contribution to the expansion of LIXIL’s business. In response to internal
application, ten, eight, and five employees were selected in FY 2011, FY 2012, and FY 2013, respectively, and thesending of these employees to universities in Japan and overseas to study for an MBA has been commenced.
Significant career development systems and voluntary self-development systems at major companies
Item

System introducing organization

Internal application system

LIXIL Corporation

Number of participants
15

PT American Standard Indonesia
LIXIL Manufacturing (Dalian) Corporation
LIXIL-Haier Housing Products (Qingdao) Co., Ltd.
Qualification acquisition

LIXIL SENIOR LIFE

222

recommendation system

Kawashima Selkon Textiles Co., Ltd.
LIXIL VIVA CORPORATION
LIXIL Total Service Corporation Japan
LIXIL SUZUKI SHUTTER CORPORATION
Asahi Tostem Exterior Building Materials Co., Ltd.
LIXIL Manufacturing (Dalian) Corporation

MBA system

LIXIL Corporation

22

Self-report system*

LIXIL Corporation

14,263(Career building report)

Kawashima Selkon Textiles Co., Ltd.
Asahi Tostem Exterior Building Materials Co., Ltd.
JAPAN HOME SHIELD CORPORATIONG TERIOR Corporation
HIVIC CO., LTD.

62

Labor-management relations
The LIXIL Group believes that it is important to aim for business development and the stability and improvementof the lives of employees and to create an equal and responsible trust relationship between labor andmanagement.

Labor-management relations
Along with the integration of five companies at LIXIL (Tostem, INAX, Shin Nikkei, Sun Wave Corporation, Toyo
Exterior) in April 2011, the labor unions of each of the former companies were united to form the LIXIL Labor
Union (scope of membership: only regular staff at business locations in Japan). The LIXIL Labor Union has a union
shop system, and as of the end of March 2014, 85.4% of the total numbers of regular staff in Japan, or 14,031
employees, were union members. Labor-management negotiation meetings and group negotiations are regularly
held for labor-management discussions in an aim to share information on issues such as working conditions andthe working environment so that issues can be resolved together by labor and management. In addition, theLabor-Management Advisory Committee has been formed for important themes such as the revision of major
working conditions so that decisions are made after sufficient consideration and discussion. Management andlabor work together to communicate the working conditions and various systems introduced through thisprocess through means such as dissemination efforts that include system introduction through the internal
intranet and employee follow-up provide by the supervising general affairs departments. In addition, the union
independently compiles and distributes the Union Guide to all employees that contains information on the main
points of systems. In an aim to further deepen the trust relationship that has been established between laborand management and improve the corporate performance with labor and management in harmony, we will
strive to make further improvements to achieve working conditions befitting of a leading company in the housing
and construction materials industry.
Basic Labor-Management Agreement (excerpt)
Chapter 1. General provisions
Article 5. Rights of the company and the union
The company and the union shall mutual respect labor rights and management rights, and not interfere withthe legitimate exercise of these rights.
Chapter 4. Collective bargaining
Article 34. Principles of collective bargaining
Collective bargaining shall seek the peaceful and smooth conclusion of the matters being negotiated in a
spirit of sincerity and good faith with the company and the union on equal footing.
Chapter 5. Dispute resolution
Article 48. Peace obligation
The company and the union shall achieve peaceful and smooth resolution of issues by discussing all laborand management issues based on a spirit of mutual trust.
Article 49. Labor dispute adjustments
Both the company and the union shall work to smoothly resolve issues through discussions or groupnegotiations with a spirit of sincerity, and for disputes for which no compromise can be reached, the labor
relations committee shall be applied to for mediation or arbitration, and the company and the union shallwork to achieve a peaceful resolution to the dispute through that mediation or arbitration.
Main labor-management discussion and labor union meeting bodies
1.

Year-End Bonus Negotiations: group negotiation agenda consists of bonuses only; total of 4 times

2.

Spring Labor Offensive: group negotiation agenda consists of wages, bonuses, and working conditions; total of 4 times

3.

Central Labor Relations Committee: 9 times per year sharing information on company policies, sharing information onunion policies;

4.

Central Executive Committee: confirmation of progress of union activities, considering policy, sharing information oncompany policies; 10 times per year

5.

Central Committee: approval of union activities, sharing information on company policies; 9 times per year

6.

Safety and Health Committee: sharing information and considering policy for each business location; 12 times per year63

Labor union activities
The LIXIL Labor Union that was established in 2012 has implemented activities based on the slogan “ALL LIXIL:
Creating rewarding and motivating workplaces.” As LIXIL has undergone rapid transformations in its second year
this fiscal year, the significance of the labor union was considered once again in the Central Executive Committee
and Central Committee, and it was decided to base all union activities on the mission of “The union will strive tocreate, protect, and develop smiles for everyone.” The activity policy for the coming fiscal year will be formulated
in a manner that reflects this mission. A committee was held once again to confirm and further consider a system(extended daycare fee assistance) that was established on a trial basis in the WLF Advisory Discussion. During thecommittee, the formal adoption of the trial system and partial system revisions (shorter working hours forchildcare, etc.) were discussed, and as a result partial revisions were conducted from April 2014. Union activities
will be advanced based on the cooperation of all union members to achieve even more rewarding and motivating
workplaces.
* See here for details on work-life balance support

Issuance of a labor union newsletter
The labor union newsletter ALL LIXIL that the LIXIL Labor Union has published since FY2012 for the purpose of harmonizing union members after the integration anddeepening the understanding of union members towards the new working conditions
was renewed under the title TUNE with the start of the new system in FY 2012 for
distribution to all union members. The newsletter contains not only introduction of
exchange events and functions for union members and explanations on LIXIL’s new
personnel system, but also enhance content including articles focusing on branch
office activities and new feature articles in order to enhance the sense of unity among
members of the LIXIL Labor Union.

LIXIL Smile ClubThe LIXIL Smile Club was established independently from the labor union in October 2001 as a specializedorganization for handling welfare systems for the purpose of working to promote the lifelong overall welfare ofunion members and their families. By becoming an independent organization, the club has been able to expand
membership beyond the union framework and stably provide a high-quality social welfare system utilizing thesescale advantages. Currently (as of the end of March 2014), the LIXIL Smile Club has approximately 15,000
members consisting of members of the LIXIL Labor Union and six labor unions of companies within the Group.
The membership fees collected from these members and business revenues will be used as resources forworking to further enhance social welfare systems while supporting the stable and fulfilling living of members.
Introduction of main systems
Congratulation andWedding bonus, childbirth bonus, entering school bonus, condolence money, recovery

condolence money:

bonus, housing disaster relief money, etc.

Mutual aid and insurance

National Federation of Workers and Consumers Insurance Cooperative Insurance, Japan
Post Life Insurance, Group Long Term Disability Income Indemnity Insurance(Mamorukun), etc.

Savings and financing:Workers’ credit union (mortgages, car life loans, etc.)

Other forms of life

Various discount systems for ceremonial occasions, leisure, shopping, etc.

support(Magic Kingdom Club, Benefit One, Zwei, funeral services nationwide, etc.)

64

Environmental Activities
The LIXIL Group continually engages in proactive
efforts toward the environment in all processes
related to homebuilding with the hope of achieving
harmony between people’s lives and our naturalenvironment.

65

Environmental Principles

Our Vision and Promise
We the LIXIL Group believe in achieving harmony between how humankind lives and the earth that we live
on. We will conscientiously apply our environmental awareness across the entirety of what we do: what,
how, and for whom we create a better living setting.

The Principles We Apply
We the LIXIL Group are committed to achieving this vision. We will continuously improve our environmental
management systems, we will employ ecologically responsible practices throughout our operations, and wewill embrace vigorous communication with all of our direct and potential stakeholders.
Each of us, for our customers, undertakes to provide products and services that reflect and optimize thefull bounty of nature.We will fully evaluate and explore, along with our customers, what should be theappropriate living setting for the times ahead.
Each of us, in the regular course of business, accepts a duty to uphold environmental regulations andprevent pollution. We will pursue actions to reduce carbon emission, enhance recycling of resources, andpromote harmonious coexistence with nature.
Each of us, as part of a given area or society, seeks a deeper mutual understanding with the individual,
civic, nongovernmental and nonprofit entities that are among us. We will, by emphasizing cooperationand dialogue, advance together our own unique activities for preserving the environment.
66

Environmental Vision

We the LIXIL Group seek by 2050 the net zero balance between a full, bountiful way of living and an
acceptable burden on the earth's environment, leading the world in the housing and living amenities
industry.

We will introduce technical innovations that will achieve
net zero balance energy use in residences and buildings
as a total provider of housing and living requirements,
and contribute to global energy conservation and CO2 reduction.
As a global leader in our industry, for the products that we offer to all peoples of the world, we must be
relentless in reducing the direct or indirect environmental burden of all our business activities. And we will
also implement activities for the preservation and recovery of water resources and forestry ecosystems
throughout the world.Environmental Management

67

Environmental Strategy

Based on our Environmental Principles, we have prioritized three themes in our Environmental Strategy, and willachieve these without fail through execution of concrete actions.

Theme 1
As we offer products and services that reflect and optimize the full bounty of nature, we will also consider
future ways and standards of living, together with our customers.
Theme 2
We will conduct our regular business activities in a manner that will reduce carbon emission, enhance
recycling of resources, and promote harmonious coexistence with nature.
Theme 3
We will work to further mutual understanding with our stakeholders, and collaborate with them to takeactions in our own, original way.
In direct LIXIL business activities, we will focus on raising production efficiency and launching renewable forms ofenergy, to reduce CO2 emissions below 2010 levels (prior to corporate integration). Moreover, in areas that we
impact indirectly, such as the procurement of raw materials and the use and disposal of products, we will workon technical innovations for reducing, extending and conserving resources, and for the conservation and creationof energy, insulation and passive technologies. By doing so we will help to reduce energy consumption
throughout the entire product lifecycle to below 2010 levels (prior to corporate integration).

68

Environmental Strategy: Theme 1
As we offer products and services that reflect and optimize the full bounty of nature, we will also
consider future ways and standards of living, together with our customers.

We will make widespread a product line that reduces energy consumption per residence or building to azero-sum balance, through control technologies that enable a comfortable living environment.
Residences and buildings in the future will demand high-performanceinsulating window sashes and doors, in tandem with other productswith enhanced energy-saving functionality, we can significantly reduceenergy consumed in housing, including air conditioning and heatingenergy. And by combining this with solar power generation systems,
we are offering a product line-up that reduces overall energy
consumed per residence or building to a net of zero.

Our product line, incorporating control technologies for water needed in daily living, greatly reduces theamount of water used per residence or building.
Residences and buildings use vast amounts of water daily in baths,
toilets, kitchens and the like. We have a wealth of proven experience indeveloping and selling toilets, baths, showers and other items withadvanced water-saving functionalities. Building even further on thisbase, we are committed to a product line with even more advanced
water control technologies, to protect our precious water resources.

We will also introduce proprietary technologies related to renewable energy, and launch newenvironmental projects.
To achieve a low-carbon society, we must reduce the dependency on
fossil energy sources, and work proactively on the introduction ofrenewable energies, including that generated by wind and solar power,
as well as solar and geothermal heat. Furthermore, we will introduce
proprietary, state-of-the-art technologies for next-generation residential
solar power generation and wind power generation – technologies that
go beyond current technical boundaries. We will broadly popularize
these among the general public as new environmental projects.

69Environmental Strategy: Theme 2
We will conduct our regular business activities in a manner that will reduce carbon emission,
enhance recycling of resources, and promote harmonious coexistence with nature.

We will increase the number of self-sufficient plants that adopt environmentally-friendly ‘green’ power byintroducing renewable energy into the manufacturing process.
A great deal of the energy used at manufacturing sites to date has been
supported by fossil energy. By proactively introducing renewable energy into
our production activities, we aim to reduce to zero the amount of fossil
energy consumed. When introducing such energies, we will consider the
possibility of wind power generation, solar power generation andgeothermic power generation, taking account of regional characteristics. By
establishing power storage systems concurrently, we will also realize stableself-sufficiency for power generation.
We will reduce the amount of virgin raw materials used in procurement
through advanced recycling systems for the disposal of products.
Using our experience in the regeneration and reuse of waste materials
produced when renovating residences and other buildings, we will
accelerate closed recycling processes, in which products made mainly frommetals such as aluminium and copper are disposed by returning them as isto the original production process. This will reduce the energy required forthe procurement of raw materials.
We will reduce the amount of water resources used in manufacturing
processes by establishing a recycling system for water used in factories.
Large amounts of water of varying levels of purity are used at manufacturing
sites. At the same time, there are global concerns that water resources will
be depleted. We are working on the construction of water recycling systems
and more efficient use of water in manufacturing processes to reduce theamount of water used.
We will optimize our utilization of forestry resources, preserving
forestry ecosystems by creating guidelines and developing technologies
for procurement.
We use large amounts of timber resources as materials for kitchens, interiors
and other products, thus we will develop guidelines for their procurement
and use, and ensure that we use timber from forestry resources that arerecycled in a sustainable manner. We will also develop technologies formaterial modification and ubstitution.

70

Environmental Strategy: Theme 3
We will work to further mutual understanding with our stakeholders, and collaborate with themto take actions in our own, original way.

We will raise the environmental literacy level of all employees through an environment awarenesstraining program for employees.
With the set of common values based on our Environmental Principles andEnvironmental Vision, we are building a corporate culture where each
employee transcends job boundaries and takes personal action for the benefit
of society. Employees will also be proactive in regional communities in Japanand overseas. The mark for our training program shown here symbolizes thisspirit.

We promote environmental contribution activities that lead to cleaner water through on-site employee
classes and workshops.
LIXIL conducts educational activities for children in Japan and Asian
nations to communicate the importance of water in our daily life. In
Japan, employees will visit elementary schools to communicate directlywith children in on-site classes using original teaching materials.
Overseas, we collaborate with local NPOs to provide educational
support to children so that they can understand, think and take action
themselves.

We implement activities that will lead to the creation of beautiful forests through preservation of local
mountainous regions and tree-planting by employees.
At LIXIL, we understand the importance of preserving our ecosystems
and the multi-faceted functions of forests including water conservation.
We work together with local NPOs and municipalities through avolunteer program that promotes forestry awareness and conservation
activities. And at our manufacturing sites in Japan and overseas, wehave a tree-planting program where our employees and their families
work together with neighboring communities, authorities and others.

71Environmental Management
The LIXIL Group established the LIXIL Group Environmental Management Rules during FY 2012, and it has
implemented an environmental management system aimed at achieving the medium-term environmental
targets established in 2015 based on the LIXIL Environmental Vision. The LIXIL Group Environmental
Management Rules were applied to global companies, group companies, and subsidiaries in FY 2013. In addition,
ISO14001 certification that was individually acquired by Product Company factories was consolidated as ProductCompany certification, and ISO14001 certification has successively been acquired for Global Company factories
that had not acquired ISO14001 yet.

Environmental Promotion System
In July 2012, the LIXIL Group Environmental Strategy Committee (chaired by the President and CEO andcomposed of all executive officers) was reorganized into the CSR Promotion Committee. Environmental
management has been promoted at all group companies, including associated companies, under the new
system.
* Please see here for CSR Promotion Structure*The timing for the deployment of the environmental management system is at the discretion of each company
and operating company.
*The organizational structure diagram above displays the organizational structure as of FY 2013. The ProductsCompany was abolished as of FY 2014 and the SC Headquarters has been responsible for the production division.
Internal Auditing
Internal audits based on ISO14001 are conducted on the effectiveness and legal compliance of theenvironmental management system at the production facilities of LIXIL’s Products Company and Global Company.
At departments and operating companies other than production facilities, internal audits are conducted base on
the LIXIL Group’s unique environmental management system, the scope of which is gradually being expanded toinclude subsidiaries. In addition, legal compliance education and legal compliance audits were commenced by
the Head Office Environmental Department. While there were no major violations found in the audits, follow-up
is conducted in response to audit suggestions and improvements are confirmed.
72

Activities to Raise Employee AwarenessWith the aim of improving the environmental literacy of all LIXIL Group
employees, we endeavor to raise awareness of and share information on theeco-friendly initiatives being implemented by workplaces and individual
employees through the use of posters and an intranet website titled Our Eco
Actions on which all employees may post messages. During FY2013, theintranet website received a total of 126,693 visits and 2,484 messages. By
promoting the intranet website as a forum where our employees can learn
about the activities of LIXIL Corporation facilities in distant regions and share
their thoughts and actions regarding the environment, we aim to increase
the scope of internal communication and build a corporate culture thatencourages employees to act for themselves on environmental issues. We
have also worked to raise awareness by distributing a pamphlet to all
employees explaining the LIXIL Group’s Environmental Vision.
▲PosterandIntranet website “Our Eco Actions”

Awards and Recognitions
Recipient of a Prize at the Eco Products Awards
LIXIL was honored with the Chairperson's Award, Eco-Products Awards
Steering Committee, in the Eco-Products Category at the 11th Eco
Products Awards sponsored by the Eco-Products Awards Steering
Committee. LIXIL’s prize-winning products included the EcoAir 90, ahigh efficiency heating and ventilating unit that uses the heat ofindoor air being exhausted outdoors to keep the temperature ofoutside air as close to room temperature as possible, and Koko Eco, anovel method that can improve a home’s heat insulation performancefrom a single room in as little as one day by installing inner windows
or insulation panels on the windows, walls, and floors.
LIXIL has also been honored with the Minister's Prize, the Ministry ofEnvironment, in the Eco-Services Category at the 9th Eco ProductsAwards for its Tsufu-Sofu Design Support Service.
▲left: EcoAir 90, Right:Koko Eco* Click here to learn more about the high efficiency heating and ventilating unit EcoAir 90（Japanese Only）* Click here to learn more about the Koko Eco eco-friendly renovation method（Japanese Only）* Click here for the news release about our prize at the 11th Eco Products Awards（Japanese Only）* Click here for the news release about our prize at the 9th Eco Products Awards（Japanese Only）

Highest Financing Rating Obtained, Resulting from Environmental Ratings
SystemIn January 2012, in recognition of our efforts to reduce CO2 emissions,generate renewable energy through mega-solar plants and other initiatives,
recover resources from housing renovation waste materials and actively
promote biodiversity, the Development Bank of Japan (DBJ) granted LIXILGroup the highest environmental rating for our “particularly progressive
environmental initiatives” and provides financing based on this rating.
* See the following news release on the Environmental Ratings System for more details.（Japanese Only）

73

LIXIL Corporation’s Eco-First Commitment.
Under the Eco-First program, companies make a commitment to the Minister of the Environment to promoteindependent environmental conservation initiatives in relation to global warming, waste and recycling etc., withthe aim of promoting initiatives by industry-leading companies in the field of environmental conservation.
* See the Eco-First System section on the Ministry of the Environment website for more details（Japanese Only）

LIXIL Corporation has committed itself to actively promoting detailed initiatives and activities with clear targets
based on the priority themes for our environmental strategy set out in the LIXIL Environmental Vision, andaccordingly been accredited by the Ministry of the Environment as an “Eco-First Company”.

201 Minister of the Environment, Hiroyuki Nagahama (left) with Representative Executive Officer & Vice
President of Lixil Corporation and Lixil Japan Company President, Toshio Ohtake at the Eco-First Accreditation
Ceremony held on October 29, 2012

LIXIL Corporation’s Eco-First Commitment
LIXIL Corporation and its subsidiaries shall implement the following activities with the goals of minimizing theconsumption of energy through our business activities, aspiring to net zero balance energy use in the residential
and commercial sector, and contributing to future improvements in people’s comfort and lifestyles.

1. As we offer products and service that reflect and optimize the full bounty of nature, we will
also consider future ways and standards of living, together with our customers.

・By developing and selling highly effective heat-proof sashes and doors and products with enhanced powersaving and hot water saving functions, we will contribute to reductions in CO2 emissions in the residential andcommercial sector, including homes and office buildings, etc. In addition to maximizing energy use reductions inJapan through LIXIL products, we shall promote reductions in CO2 emissions and reduce emissions by 50% by
FY2015 compared with FY2010.

2. We will conduct regular business activities in a manner that will reduce carbon emissions,enhance recycling of resources, and promote harmonious coexistence with nature.

・In order to promote a low-carbon society, we will work to minimize energy consumption in all business activities
from procurement through to production and disposal and by FY2020 we will reduce CO2 emissions at ourJapanese offices by 60% in comparison to FY1990.
・In order to promote the recycling of resources, we will promote the commercialization of advanced sorting
technology for metal resources, such as aluminum found in disposed products, through participation inindustry-academic-government joint developments and promote technological innovations in the productmanufacturing process. We will increase the ratio of recycled raw materials used in our raw materials overall, an
area where we are already an industry leader. As part of our responsibility as a large-scale manufacturer, in
FY2012 we launched an Eco-Center in the Tohoku Region for collecting housing renovation waste to recover
resources to complement the centers already opened in the Chubu and Kanto regions, and by FY2015 we willhandle an annual 5,000m3 of waste materials in the Tohoku Region.
・In order to promote harmonious coexistence with nature, by FY2015 we will increase to 80% the ratio of
procured wood materials accounted for by processed materials made using raw wood materials accredited by74

Japanese and overseas third party accreditation organizations, materials produced through afforestation,
Japanese wood materials and wood offcuts and waste. We have contributed to reductions in forest clearing bypromoting the effective use of wood resources through the commercialization of advanced technologies forwood materials, including “bagasse board” (made using the fibrous remains of sugarcane after it has beencrushed), which we have made compatible with stringent quality specifications and spread from Japan to otherparts of Asia, “reinforced wood”, which is made through the combined molding of wood flour with resin, andwood material modifications with aim of promoting use of underutilized materials and fast-growing trees, etc.

3. As a member of local communities and society, we will work to further mutual understanding
with our stakeholders and collaborate with them to take actions in our own, original way.

・We will promote “Learning from Water” activities with the aim of teaching children both in Japan andoverseas the import role of water in our lives. In Japan, our employees will travel to elementary schools to give
lessons using original teaching materials in various regions, and overseas we will work in partnership with local
NPOs to support education while communicating with local children. By 2015, we will add one new overseas
bases to expand the scope of these activities.
・In order to conserve biodiversity and forests in the regions where our production bases are located, we will
promote “Caring for Forests” and “Bringing Forests to Factories” projects in which we carry out environmental
projects and the thinning and planting of forests in partnership with our employees, their family members, local
residents, local government and NPOs. By FY2015 we will add one new base to expand the scope of these
activities.
LIXIL Corporation will check the progress of the above initiatives and make regular public announcements of theresults, in addition to reporting to the Ministry of the Environment.

The Eco-first Promotion Council was established as an organization on December 9, 2009
with the aim of encouraging “Eco-First Companies” (officially accredited by the Ministry of
the Environment as leaders in the field of environmental conservation) to make steadyprogress in the implementation of individual Eco-First Commitments made to the Ministerof the Environment and to work in strong partnerships with other Eco-First Companies inorder to develop and strengthen leading and unique environmental conservation activities.
The organization was established a little over a year after the creation of the “Eco-First System” with the aim ofpromoting the development of the system by encouraging ongoing environmental initiatives by Eco-First
Companies and strong partnerships both with the environmental authorities and between Eco-First Companies.
* See The Eco-first Promotion Council website（Japanese Only）

75

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 business activities, but also the energy consumed indirectly across the entire spectrum of
influence of our products, from procurement of raw materials for manufacturing to the use and eventual
disposal of our products by our customers. Leading up to 2015, we have set ourselves the following three
medium-term environmental targets.
Product and Service Life Cycle76

Target 1
To 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 existing houses, 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 havedefined the amount of energy that could be saved by replacing the products fitted in 1990 with the latest of our
products as “energy reduction contribution,” and use this as a measure of our efforts to reduce energy in thehousehold sector. We aim to boost our energy reduction contribution for fiscal 2015 to double the fiscal 2010
level through further raising product performance and broader use of those products in the market. Our energy
reduction contribution in fiscal 2013 was 5.03 million GJ, a 134% 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 for the years from fiscal 2010 to fiscal 2015 will eventually reach 30 million GJ. By applying ourtechnologies to our growing overseas products business, we will also help to reduce energy consumption on a
global scale.

[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 throughimproved 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)

77

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 ratio of recycled raw materials at the procurement stage, improving production efficiency and making greateruse of renewable energy 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. We aim to reduce our total energy consumption by 10% from the fiscal 2010 level by fiscal 2015. Our totalenergy consumption for fiscal 2013 was 57.0 million GJ, a 8.5% reduction from fiscal 2010.

[Total Energy Consumption Calculation Method]
・Energy consumption (procurement)*1 = (amount of purchased raw materials) × (energy conversion coefficient*2)+(cost of purchasing parts/materials) × (energy conversion coefficient*3)
・Energy consumption (manufacture/sales)*4 = (electricity/fuel consumption, water intake) × (energy conversion
coefficient*5)
・Energy consumption (disposal) = (landfilled/incinerated quantity when products are disposed) × (energy conversion
coefficient*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
and other 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
distance method 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 201378

Target 3
We will reduce the CO 2 emissions of our Japanese sites to 50% of their fi scal 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 ourbusiness activities in Japan. Our total CO2 emissions from Japanese sites in fiscal 2013 amounted to 411,000
t-CO2, a reduction of 49% 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),・Natural gas: 2.108 (kg-CO2/m3),
・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_Aug-2012)79Material Balance
Scope of Data Collection
In principle, with the exclusion of some consolidated subsidiaries in consideration of their business size andcontent, the scope of the organization for which environmental impact data is reported comprises all operatingcompanies and their consolidated subsidiaries as of April 2013.Among non-consolidated companies, only a few
of the manufacturing and logistics companies have been included in the scope of reporting (LIXIL Logistics
Corporation and LIXIL BUILDING MATERIALS MANUFACTURING (SHANGHAI) CORPORATION); when theirbuildings are either owned or managed by operating companies of the LIXIL Group, non-consolidated
subsidiaries are considered to be under management by the LIXIL Group. Please note that the scope differs fromthe group of companies that are consolidated for financial reporting purposes. The calculation method used forenergy-savings contribution by product is given on page 12. Items outside the scope stated above are reported
on in separate notes on an individual basis.

■Affiliates of the LIXIL Group
LIXIL Corporation, LIXIL VIVA CORPORATION, Kawashima Selkon Textiles Co., Ltd., LIXIL Housing Research Institute,Ltd., HIVIC CO., LTD., JIO Corporation LIXIL REALTY, Corp., CLASSIS Corporation, LIXIL Group Finance Corporation■LIXIL Corporation's Major subsidiaries
・Major subsidiaries and affiliates in JapanSUN WAVE CORPORATION, LIXIL Total Hanbai Corporation, Asahi Tostem Exterior Building Materials Co., Ltd., G
TERIOR Corporation, LIXIL SUZUKI SHUTTER CORPORATION, JAPAN HOME SHIELD CORPORATION, LIXIL Toyo Sash
Shoji Co., Ltd., Dinaone Corporation, TM.S Corporation, Kuwata Co., Ltd., SUN WAVE KITCHEN TECHNO
CORPORATION, Oita Tostem Co., Ltd., Nishi Kyushu Tostem Co., Ltd., LIXIL Online Corporation, Tostem
Management Systems Co., Ltd., LIXIL Total Service Corporation, LIXIL ENERGY Co., Ltd., LIXIL RENEWAL
Corporation, LIXIL INFORMATION SYSTEMS CORPORATION
・Non-consolidated subsidiaries in Japan：LIXIL Logistics Corporation
・Major subsidiaries and affiliates outside JapanTOSTEM THAI Co., Ltd., LIXIL Manufacturing (Dalian) Corporation, LIXIL INAX VIETNAM Corporation, LIXIL INAXDANANG Manufacturing Co., Ltd., LIXIL INAX SAIGON Manufacturing Co., Ltd., LIXIL-Haier Housing Products(Qingdao) Co., Ltd., LIXIL BUILDING MATERIALS MANUFACTURING (SUZHOU) CORPORATION, LIXIL Sanitary Fitting
Manufacturing (Suzhou) Corporation, Four consolidated companies and one non-consolidated company outside
Japan【Procurement and Logistics Data】■Procurement: The scope of data calculation includes all bases and companies manufacturing products under theenvironmental management systems of the LIXIL Group. All raw materials, parts, and packaging materials used in the
products are included in the calculations. However, manufacturing facilities and office consumables are excluded. The
data covers 43 bases in Japan and 16 companies overseas.
■Logistics: The scope of data calculation extends only to those facilities designated by LIXIL Logistics Corporation
under the Law Concerning the Rational Use of Energy (Specified Shipper). The scope includes 17 of LIXIL Logistics’
facilities.

【Newly Integrated Companies】
In accordance with the LIXIL Group’s environmental regulations, taking into account the time required to analyze thestate of data collected before integration and to introduce environmental management systems, the LIXIL Group does
not begin to include environmental impact data until three years after a company is integrated into the Group. For thatreason, the data for Permasteelisa S.p.A. and ASD Americas Holding Corp. are not included in the data for fiscal 2013.

【Data Collection Period】From April 1, 2013 to March 31, 201480

Material Balance (INPUT)■Procurement
The amount used
Aluminum raw materials
Other metals

Rawmaterials

Plastics raw materials
Wood raw materials
Ceramics raw materials
Others
Metal parts
Plastic parts

Parts/
materials

Wood parts
Ceramic parts
Packaging materials
OthersEnergy consumption

FY 2012
157,875 t
78,204 t
32,231 t
214,084 t
393,829 t
11 t
100,815 t
129,925 t
103,503 t
236,986 t
14,789 t
149,471 t
38,095 thousand GJ

FY2013
148,882 t
86,567 t
39,765 t
268,735 t
531,006 t
8 t
117,407 t
126,232 t
102,051 t
262,207 t
17,692 t
254,086 t
37,983 thousand GJ

Quantity of
reduction

Compared withprevious year

112 thousand GJ

0.3％ decrease

Notes:
1. The weight of parts / materials is calculated based on purchase costs.
2. Data covers the manufacturing bases of LIXIL Corporation and its subsidiaries overseas,
Kawashima Selkon Textiles Co., Ltd., and HIVIC CO., LTD.

■Manufacture/sales
The amount used
Electricity
City gas
LNG
LPG
Kerosene
Fuel oil
DieselGasoline
Steam
Photovoltaic power generation *Energy consumption

FY 2012
953,977
91,00914,31816,7006,741
14,0452,858
8,434
161,757
8,080
16,409FY 2013thousand kWhthousand ㎥
t
t
kL
kL
kL
kL
GJ
thousand kWhthousand GJ

969,360
100,084
16,645
14,7583,766
11,9282,528
9,655
167,590
26
16,808thousand kWhthousand ㎥
t
t
kL
kL
kL
kL
GJ
thousand kWhthousand GJ

Quantity of reduction

Compared withprevious year

－400 thousand GJ

2.4％ increase

Quantity of reduction

Compared withprevious year

1.3 thousand GJ

6.6％ decrease* Data only covers facilities within the premises of our factories (in-house use only).

Water intake

FY 2012

Potable waterIndustrial water
Ground water

1,103
8,589
5,657
20.4

Energy consumption

FY 2013
1,552
6,484
5,040
19.0

thousand ㎥
thousand ㎥
thousand ㎥
thousand GJ

thousand ㎥
thousand ㎥
thousand ㎥
thousand GJ

Note: Data excludes a portion of LIXIL Corporation’s head office, branches, and sales-related consolidated companies, LIXIL Housing Institute, Ltd.,HIVIC CO., LTD., JIO Corporation, and CLASSIS Corporation.

Volume handled

FY 2012

Chemicals

6,669 tFY 20136,681

t

Quantity of reduction

Compared withprevious year

－12 t

0.2％ increase

Note: Data covers LIXIL Corporation and LIXIL VIVA CORPORATION.

■Logistics
The amount used

FY 2012FY 2013

Fuel(Crude oil equivalent)

46,451 kL

52,631

Energy consumption

1,800 thousand GJ

2,040

Note: Data covers LIXIL Logistics Corporation.

81

kL

Quantity of reduction

Compared withprevious year

thousand GJ－240 thousand GJ

13.3％ increase

Material Balance (OUTPUT)■Procurement (Scope 3)CO2 emissions
Aluminum raw materials
Other metals

Rawmaterials

Plastics raw materials
Wood raw materials
Ceramics raw materials
Others
Metal parts
Plastic parts

Parts/
materials

Wood parts
Ceramic parts
Packaging materials
OthersTotal

FY 2012961 thousand t-CO2
148 thousand t-CO2
78 thousand t-CO2
171 thousand t-CO2
84 thousand t-CO2
0.2 thousand t-CO2
499 thousand t-CO2
308 thousand t-CO2
87 thousand t-CO2
48 thousand t-CO2
33 thousand t-CO2
249 thousand t-CO2
2,667

FY 2013788 thousand t-CO2
162 thousand t-CO2
86 thousand t-CO2
214 thousand t-CO2
97 thousand t-CO2
0.1 thousand t-CO2
501 thousand t-CO2
302 thousand t-CO2
82 thousand t-CO2
47 thousand t-CO2
40 thousand t-CO2
329 thousand t-CO2
2,648

thousand t-CO2

thousand t-CO2

Quantity of
reduction

Compared withprevious year

19 thousand t-CO2

0.7％ decrease

Note: Data covers the manufacturing bases of LIXIL Corporation and its subsidiaries overseas, Kawashima Selkon Textiles Co., Ltd.,and HIVIC CO., LTD.

■Manufacture/sales (Scope 1 2)CO2 emissions
Electricity
City gas
LNG
LPG
Kerosene
Fuel oil
DieselGasoline
Steam

Total
The amount compensation ofcogeneration credit assumption *Total（After compensation）

FY 2012430 thousand t-CO2
193 thousand t-CO2
39 thousand t-CO2
50 thousand t-CO2
17 thousand t-CO2
38 thousand t-CO2
7 thousand t-CO2
20 thousand t-CO2
10 thousand t-CO2

FY 2013439 thousand t-CO2
211 thousand t-CO2
45 thousand t-CO2
44 thousand t-CO2
9 thousand t-CO2
32 thousand t-CO2
7 thousand t-CO2
22 thousand t-CO2
10 thousand t-CO2

804

thousand t-CO2

820

thousand t-CO2－15

thousand t-CO2－14

thousand t-CO2

Quantity of
reduction

Compared with previous
year

789

thousand t-CO2

806

thousand t-CO2－17 thousand t-CO2

2.2％ increase* Based on Rule of the Japan Voluntary Emissions Trading Scheme (JVETS) of the Ministry of Environment, Ver. 1 (Feb. 21, 2005)

Waste products emissions
Recycled
Land filled

Total

FY 2012FY 201388,985 t
50,184 t

109,574
49,982tt

Quantity of
reduction

Compared with previous
year

139,169 t

159,556t－20,387 t

14.6％ increase

FY 2013

Quantity of
reduction

Compared with previous
year3,604 thousand ㎥

24.9％ decrease

Note: Data excludes HIVIC CO., LTD., JIO Corporation, and CLASSIS Corporation.

Wastewater volume
Wastewater

FY 2012
14,456

10,851

thousand ㎥

thousand ㎥

Note: Data excludes a portion of LIXIL Corporation’s head office, branches, and sales-related consolidated companies, LIXIL Housing Institute, Ltd.,JIO Corporation and CLASSIS Corporation.

Amount of chemicals moved

FY 2012

Chemicals

377

Quantity of
reduction

Compared withprevious year

t

30 t

7.9％ decrease

FY 2013

Quantity of reduction

Compared with previous
year－16 thousand t-CO2

13.3％ increase

FY 2013348t

Note: Data covers LIXIL Corporation and LIXIL VIVA CORPORATION.

■Logistics (Scope 3)CO2 emissions

FY 2012Fuel(Crude oil equivalent)

123

thousand t-CO2

Note: Data covers LIXIL Logistics Corporation.

82

140

thousand t-CO2

［Total Energy Consumption Calculation Method］
・Energy consumption(procurement)*1 =(Amount of purchased raw materials)×(Energy conversion coefficient*2)+(Cost of purchasing parts/materials)×(Energy conversion coefficient*3)
・Energy consumption(manufacture/sales)*4=(Electricity/Fuel consumption, water intake)×(Energy conversion
coefficient*5)
・Energy consumption(disposal)=(Land filled/incinerated quantity when products are disposed)×(Energy conversion
coefficient*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
and other 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 (2005 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 the Law Concerning the Rational Use of Energy,
2010
・Water: conversion coefficient calculated from Japan Environmental Management Association for Industry (JEMAI) ・
Carbon Footprint Database Version 1*6. Conversion coefficient calculated from unit fuel consumption and unit calorific value using improved tons ×
distance method as specified in the Law Concerning the Rational Use of Energy (Measures Pertaining to Consigners)［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),・Natural gas: 2.108 (kg-CO2/m3), 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_Aug-2012)83

Products and services
Eco-friendly design
Design for environment initiatives

Design for environment (DfE) refers to design that has been conducted while giving consideration to theenvironment. This form of manufacturing aims to reduce the environmental impact as much as possible while
giving consideration to the life of the product.
By conducting unique assessments from the product planning phase, LIXIL complies with environmental laws andregulation as it works to develop eco-friendly products with even better environmental performance.

In product development, LIXIL conducts unique design for environment (DfE) assessments based on the stance ofDfE. In addition to compliance with environmentally-related laws and regulations, LIXIL assesses products at thethree stages of make, use, and return and aims to minimize the impact of products on the environment. Productswith high environmental performance are designated as LIXIL eco-products, and their characteristics areemphasized to customers through the Eco Mark that is displayed in the catalog and on the official homepage.
In product planning, LIXIL sets environmental targets for products being developed, and in design andprototyping, the level of target achievement is assessed. In final confirmation, LIXIL conducts final confirmationof the environmental information being emphasized.
The assessment details are periodically reviewed in an aim for even higher level design for environment.
* Please see here for LIXIL eco-products

84

Eco MarkThe Eco Mark is displayed on products that meet the public standards and LIXIL standards in design for environment
assessments.
Public standards conformity marks
These marks are displayed on products that meet legal standards, the standards of business organizations, or
third-party certification.
Major public standard marks
Products that meet the designated procurement item standards designated by the Act on
Promoting Green Purchasing.
Indicates the energy-saving performance based on the top runner standards of the Energy
Saving Act. A green mark indicates products that have attained at least 100% of energy-saving
standards, while an orange mark is displayed for products with less than 100% attainment
together with the energy-saving standard achievement rate and annual power consumption.
Products that meet the highest standards for formaldehyde dissipation rate designated in the
Building Standards Act (countermeasures to the sick-house syndrome).
Products that meet the dissipation rate standards from the 4 VOC (toluene, xylene,
ethylbenzene, and styrene) designated by the Committee for Standardization of Emission Rateof VOC From Building Products.
Products that meet the Housing Component VOC Display Guidelines formulated in compliancewith the dissipation rate standards from the 4 VOC (toluene, xylene, ethylbenzene, and styrene)
designated by the Committee for Standardization of Emission Rate of VOC From Building
Products.
Products that meet the humidity control building materials standards designated by the Japan
Construction Material & Housing Equipment Industries Federation.
Products for which quality control information was published in the guidelines of the Society ofInternational Sustaining Growth for Antimicrobial Articles based on results assessed inaccordance with ISO22196 defined by the International Standards Organization.
Products that meet standards that contribute to environmental conservation through means
such as reducing the impact of everyday life on the environmental as designated by the Japan
Environment Association.
Products that meet the definition of hot water-saving taps as defined in the housing andbuilding energy-saving standards of the Energy Saving Act.
Products that meet the definition of hot water-saving taps as defined in the housing andbusiness builder judgment standards of the Energy Saving Act.

85

LIXIL standards conformity markThis mark is displayed on products that meet assessment standards for the reduction of environmental impact at
the three stages of make, use, and return through the life of products designated by LIXIL.
Make
Products that meet usage amount standards for recycled raw materials designated by LIXIL.
Products that meet usage amount standards for environmentally-friendly wood such as certified wood andplantation forest wood designated by LIXIL.
Products that meet standards for raw material reductions through means such as revised manufacturingmethods and raw materials, and weight reduction as designated by LIXIL.
Products that meet usage amount standards for energy saving in construction through means such asrevised construction methods and reductions in construction materials as designated by LIXIL.
Products that meet waste lumber reduction standards through means such as revised construction methods
and improvements in packaging as designated by LIXIL.

Use
Products that meet the concentration standards for dissipation of harmful VOC (volatile organic chemicals)such as formaldehyde as designated by LIXIL.
Products that meet the energy-saving standards at the time of use as designated by LIXIL.
Products that meet the water-saving standards at the time of use as designated by LIXIL.
Products that meet the heat-resistance standards designated by LIXIL through means such as improving thethermal insulation of housing and contributing to a reduction in energy used for heating or cooling.
Products that meet thermal barrier standards including heat ray absorption and heat ray barriers as
designated by LIXIL.
Products that meet solar shading standards including reducing the indoor solar penetration rate throughsunlight avoidance as designated by LIXIL.
Products that meet lighting standards including being able to adjust lighting in the winter and shade in thesummer as designated by LIXIL.
Products that meet ventilation standards including enabling efficient ventilation while giving consideration
to trespassing and privacy.
Products that meet zero energy standards for features and materials that improve comfort and convenience
without using energy as designated by LIXIL.
Products that meet energy creation standards for features and materials that create energy every time they
are used as designated by LIXIL.
Products that meet antifouling standards including the enabling of long-term use in clean conditions while
reducing the amount of cleaning water and cleanser used as designated by LIXIL.

86

Return
Products that meet recycling standards such as facilitating disassembly and separation in order to recycle
resources as designated by LIXIL.
Products that meet reusable standards for reusing parts and materials to eliminate resource waste as
designated by LIXIL.

Laws and systems
Refer to the link below for laws and systems concerning products and the environment.
* Please see here for information on public incentives（Japanese Only）* Please see here for data related to laws and systems (LIXIL business information)（Japanese Only）

Eco-product database
List of supported products
Lists information regarding compliance to public standards and LIXIL standards for eco-products that meet designfor environment standards.
* Please see here for information on the Eco Mark*The following Eco-product databases and informations are all only Japanese.
Windows and shutters

Thermos X
Thermal insulation performance equivalent to conventional resin
has been achieved with a hybrid structure of conventional resin.
[Eco-standards compliance information]･Windows and shutters･Building, store design, curtain walls

Entrance doors, sliding doors

GrandelThe flow of heat from doors is controlled with excellent thermal
insulation performance (1.5 specifications) that supports even cold
areas.
[Eco-standards compliance information]･Entrance doors, sliding doors

Interiors

Woody line
Timber materials in compliance with F☆☆☆☆ and 4VOC standards
are used.
[Eco-standards compliance information]･Interior construction materials

87Exteriors

Carport Archifield
Possible to select the roofing material depending on the purpose, suchas heat ray absorption or blocking or dirt resistance.
[Eco-standards compliance information]･Exteriors

Tiles

Ecocarat Granas Visto
Breathes in and out the air in the house to keep a comfortable
humidity level whatever the season and reduces unpleasant odors andharmful substances.
[Eco-standards compliance information][Eco-effect]

Kitchen・Tiles・TilesKitchen Richelle SI
This tap that features available water stopping, small-flow water
discharge, and priority water discharge enables water consumption
reduction without you even being aware of it.
[Eco-standards compliance information][Eco-effect]

Bathroom･System kitchen･System kitchen

Unit Bathroom Spage
This eco-shower with a hand switch achieves significant water savings
through comfortable low water flow.

[Eco-standards compliance information][Eco-effect]
Wash and dressing room

・Unit bathroom

・Unit bathroom

Wash and Dressing Room Lumisis
The mirror cabinet is equipped with an anti-fogging coat thateliminated fogging without using any energy.

[Eco-standards compliance information][Eco-effect]

88

・Wash and dressing room

・Wash and dressing room

ToiletShower-toilet single unit toilet Satis G Type
This toilet achieves significant water-saving, using 4 L of water for large
flushes and 3.3 L of water for small flushes, and is compliant with the
Act on Promoting Green Purchasing.
[Eco-standards compliance information]･Residential toilets ･Public toilets ･Toilet hand washing[Eco-effect]
Water tap hardware･Residential toilets ･Public toilets

Sink Water Tap Cubia
Hot water and standard water savings are achieved through an
eco-handle that prevents wasteful hot water supply and water-saving
foam for comfortable washing.
[Eco-standards compliance information]･Water tap hardware[Eco-effect]

High-performance residential construction methods･Accessories･Water tap hardware

Thermal Insulation Modification Method Coco Eco

Makes it possible to improve insulation for some rooms by simply
attaching internal windows and insulation panels without having todestroy existing windows, walls, or floors.
[Eco-standards compliance information]･High-performance residential construction methods
Specified facility equipment

Ostomate Pack
The sink is SIAA bacteria-resistant in compliance with international
standards. Bacteria growth is controlled with the power of silver ion.
[Eco-standards compliance information]･Specified facility equipment

89Eco-effect calculation basis
Trial calculation conditions* Trial calculation conditions for the eco-effect of products
Water, electricity, and gas charges
Calculated based on representative information for Japan according to research from July 2014.
Could differ depending on factors such as region, time differences, and conditions.
Item
Water supply

Charge unit

For homes

and sewage

Source (data)

Remarks

Bureau of Waterworks Tokyo

Pipe diameter of 20mm, 30 m

Metropolitan Government

used per month

Bureau of Waterworks Tokyo

Pipe diameter of 50mm, 300 m(including tax)

Metropolitan Government

used per month

27 yen per kWh

New power charge guideline

Home Electric Appliances Fair

(including tax)

unit price

Trade Conference

13 yen per kWh

Agency for Natural Resources

Average for January to March(including tax)

and Energy (special high2011

265 yen per m

3(including tax)

chargeFor public use

Electricity

For homes

charges
For public use

700 yen per m

3

3

3

voltage)
Town gas

For homes

charge181 yen per m

3

Tokyo Gas

32 m used per month3

3

Tokyo Gas

Commercial seasonal contract(including tax)
For public use

121 yen per m(including tax)

LP gas charge

665 yen per m3

charges
Retailer ⇒ retail price for final

Japan LP Gas Association(including tax)
Kerosene charge

112 per L

consumerOil Information Center

National average kerosene(including tax)

(delivery) retail price*Consumption tax rate of 8%

CO2 emission factors
Item
Electricity

Emission factors
0.43

Unit

SourcekgCO2/kWh

Ministry of Economy, Trade and Industry, average emission factor for all
power sources

Town gas

2.23

kgCO2/m

3

LP gas5.98

kgCO2/m

3

Act on Promotion of Global Warming Countermeasures
Act on Promotion of Global Warming Countermeasures, Japan LP Gas
Association

Lamp oil
Water

2.49
0.23

kgCO2/L
kgCO2/mAct on Promotion of Global Warming Countermeasures
3

Estimates based on industry related tables (tap water only)

Product CO2 reduction effect (Example of mark display)
Displays the annual CO2 reductions for the latest LIXIL products that achieve reductions in
CO2 during use due to functions that reduce the environmental footprint through means
such as energy-saving and water-saving in comparison to products that were standard
around 1990.

90

Proposals to Our Customers
Launch of New “Living Solutions” Service
We have launched a new service (Tsufu-Sofu Design Support Service*2) through which we use comfort index
PMV*1 to make optimum window size, type and layout proposals to builders across Japan based on the design
blueprints and locations of the planned buildings with the aim of making summertime more energy-efficient andcomfortable. We regard wind as part of nature’s bounty and make proposals for more comfortable living in a waythat makes full use of wind in order to achieve energy savings. The energy-saving effects and innovative
initiatives offered by this service have been recognized outside the company, and at the 9th Eco Products Awards(hosted by the Eco-Products Awards Steering Committee) we were awarded the Minister's Prize, which is one of
the top prizes (Eco-Services Category).
* See “Tsufu-Sofu Design Support Service” for more details（Japanese only）*1 PMV (Predicted Mean Vote): a well-known index for measuring cool temperature sensation in order to assess
comfort in spaces. The level of comfort (PMV value) can be identified through a combination of six elements
related to the temperature environment (air temperature, mean radiation temperature, wind speed, relative
humidity, volume of clothing worn and metabolicrate).
*2 Sofu stands for “wind generation”; temperature differences in the air are utilized to generate the natural
movement of air even when there is no air current.
Development of Energy Savings and Water Savings Simulation Tool
We have released a web application containing an energy-saving andwater-saving simulator which allows people to make simple
simulations of the savings in heating and lighting costs and CO2
reductions they can achieve by upgrading their windows, doors andplumbing to the latest models. By making this available on our website,
we have made the facility available to all customers. We make use of
the application on tablet computers in our showrooms during sales
discussions and proposals with our customers.
* See here for more details on our energy-saving and water-saving simulator（Japanese only）
We propose the stance of “passive first” as a way to get ahead in energy-efficient housing.
We have issued two types of eco-housing proposal pamphlets, namely “Wisely Using Nature, Passive First” forprofessional users including builders and “Getting Ahead Living Proposal Achievable With No Waste” for general
constructors. These two pamphlets are based on the new eco-housing concept of passive first proposed by LIXIL
that encourages people to achieve comfortable living by wisely using nature, and support the housing andbuilding energy-saving standards established in October 2013.

▲PASSIVE FIRST▲Getting Ahead Living Proposal* Please see here for the Passive First news release（Japanese only）

91

Business Activities
Reducing Global Warming
We strive to carry out our daily business activities in a way that reduces carbon emissions, recycles resources,
and protects the environment. The entire company works hard to make improvements, including reductions in
CO2 emissions, in every process from procurement through to manufacturing and disposal.
Generating Solar Power at Our Factories
We have teamed up with local authorities (Nagasu Town in Kumamoto
Prefecture and Bando City in Ibaraki Prefecture) to build solar power
generation facilities on idle land at our Ariake and Iwai factories. Eachsite is equipped with 500 kW power conditioners that can generate
3.75 MW. Generated electricity has been sold to the local power utility
since March 2013. In addition, our Sukagawa Factory (located in
Sukagawa City in Fukushima Prefecture) has constructed the Tohoku
region’s first ever solar power generation facility called LIXIL Sukagawa SOLAR POWER next to the factory and in
May 2014 the facility began full-scale operations. The facility has a maximum generating capacity of 6.35MW andestimates suggest the facility will generate upwards of 7.8MW of electricity every year (enough to power about
1,400 homes for one year). All of the power generated by this facility will be sold to Tohoku Electric Power Co.,Inc.
* Please see here for the news release about our solar power generation facilities（Japanese only）
Utilizing Energy More Effectively
LIXIL’s Dalian Factory is working to utilize surplus energy more effectively. Its initiatives include using waste woodfrom the factory to burn as fuels in its boilers, with excess steam used to heat water that is used not only within
the factory but also sold to local vendors for use in production processes, swimming pools and showers.
Additionally, powdered wood waste is made into granulated fuel, which reduces the amount of waste the factory
generates. The results of similar environmental activities carried out in Japan and LIXIL’s factories overseas(energy conservation and waste reduction) are reported to senior management of the Production Division during
the Eco Factory Results Presentation held internally. Results are also used to improve the quality of futureenvironmental activities and rolled out at other sites within the company.
Eco-friendly Stores and Showrooms
We are fitting new showrooms, including our Kanazawa showroom that opened in November 2011, withinsulated glazing in all windows, the latest water-conserving toilets, high-effi ciency HVAC systems, solar panels(outdoor, rooftop) LED base and spotlights (c), motion sensor-controlled lighting in toilets, and other eco-friendly
equipment. Our Super Viva Home chain of home centers are also being similarly equipped with mist-coolingsystems, waterless urinals, water-saving toilets, gas air conditioners that do not consume electricity, electricity
demand monitors, solar panels, wind turbines (d), LED lighting, and other equipment to create even more
eco-friendly stores.

▲LED lighting in showroom▲Solar panels and wind turbines at Super Viva Home92

Saving Electricity in the Summer of 2013
We made thorough efforts to save electricity by setting air conditioning to 28°C at all our sites (except for certain
showrooms, etc.), cutting lighting by 50%, switching factories to nighttime operation, installing generators, andother measures. Furthermore, we encouraged workplaces throughout Japan to participate in our LIXIL Green
Curtain Project by growing green curtains. In FY2013 the number of participating sites rose to 60. We also held
an in-house competition.

▲Tsukuba Factory: emergency generator for water supply▲Green curtains at our Hukaya Factory (left) and Atsugi Showroom (right) (winners of the FY2013 in-housecompetition)

Recycling Resources
At LIXIL Corporation, we collect and sort all industrial waste products generated in our production processes
according to the 3R principle. Our development departments lead efforts to promote the recovery of resourcesfrom waste, and reduce waste product generation at the manufacturing stage. In the future, we plan to pursue
resource recycling on a global scale from the procurement of raw materials through to disposal of the product.
Waste materials recycling volume and landfill volume
FY2012FY2013

Recycling

88,985t

109,574t

Landfill

50,184t

49,982t

Toal

139,169t

159,556t

Ratio of waste materials recycled
FY2012FY2013

Reduction volume7,573t20,387t(year on year)(5.2% increase in reductions)(14.6% increase in reductions)

Recycling rate

77.3％

80.6％

(LIXIL’s Japanese factories only:98.9%)(LIXIL’s Japanese factories only:98.5%)*10 companies aggregate Organizations covered from fiscal 2012 (in Japan 8 companies, two overseas companies) has
been added.
*The recycling rate is the ratio of waste material volume turned back into resources, including valuable materials.

* See here for the targets and scope of the below data

93

Use of Recycled Aluminum Materials
The manufacturing process for aluminum parts and materials used in products such as sash windows is what
uses most energy in LIXIL Group business. We are implementing thorough initiatives aimed at reducing energy
consumption and we work hard to recycle resources so as to reduce energy consumption from the procurementof raw materials. LIXIL actively seeks to use as raw materials the recycled aluminum materials collected fromitems such as sash windows disposed of when dismantling housing, etc.

LIXIL Eco Centers
Following on from the launch of housing renovation waste collection with the goal of recovering resources at our
Eco-Center Tokoname in 2007 and Eco-Center Ibaraki in 2011, we recently launched a new business in Sendai City,
Miyagi Prefecture. We have received the cooperation of housing renovation businesses in the areas surrounding
Aichi Prefecture, Tokyo City, Chiba Prefecture, Kanagawa Prefecture, Ibaraki Prefecture and Miyagi Prefecture,and promoted the recycling of household equipment such as bidet toilets and water faucets, in addition towindow sashes, doors and carpets, etc.
Background to the Launch of LIXIL Eco Centers
In recent years, there has been an increase in efforts to recycle waste materials arising from the new
construction of housing or renovation work. However, scrapped household equipment often combines glass,waste plastic and wood waste, making it difficult to dismantle and sort. For this reason, it has often been sent tolandfill or thermal recycling (through which heat energy is collected) and initiatives in material recycling (throughwhich waste materials are recycled as resources) have been slow to develop. In an attempt to find a solution tothis challenge, we were the first housing equipment manufacturer to obtain a business permit for paying tocollect waste materials from housing renovations and using this to recycle materials.
In May 2007, we launched an industrial waste materials processing business in Aichi Prefecture at our INAX
Eco-Center Tokoname (now LIXIL Eco-Center Tokoname). In January 2011, we opened LIXIL Eco-Center Ibaraki
and in December 2012 we opened LIXIL Eco-Center Sendai, with the goal of accelerating measures aimed atbuilding a recycling society.
Role of LIXIL Eco Centers
We pay to collect waste materials, such as used products from new construction or renovation work, andtransport these to our LIXIL Eco-Centers. At the Eco-Centers we utilize the know-how we have accumulated as
manufacturers of housing equipment and building materials, such as plumbing products and sash windows. Our
experienced employees work by hand to dismantle and sort the wide variety of waste materials we collect. The
manual work carried out at LIXIL Eco Centers prevents materials from being sent to thermal recycling or landfill
sites and we have achieved a materials recycling rate of more than 90%.
The flow of housing renovation waste at LIXIL Eco-Center

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History of Our Eco-Centers
April 2005
June 2006

Launched initiatives aimed at construction and commercialization of recycling systems for wastematerials from renovations
Started demonstration tests recycling renovation waste materials at a pilot facility

April 2007

Relocated from the pilot facility to a single plot at the former Tokoname factoryMay 2007Opened INAX Eco-Center Tokoname (now LIXIL Eco-Center Tokoname). Started full-scalecollection of renovation waste materials from outside the company.
Selected by Aichi Prefecture as a “business that promotes the formation of a recycling society” (astatus awarded to leading recycling operators)
Introduced volume reduction facilities for waste plastics

September 2007
February 2008
March 2008
July 2008

Our housing renovation waste materials recycling business received “Ecotown Business”
accreditation
Acquired a waste disposal business permit from Aichi Prefecture

January 2011

Opened LIXIL Eco-Center Ibaraki

June 2011

Acquired a waste disposal business permit from Ibaraki Prefecture. Started business as INAX
Eco-Center Ibaraki.
Intermediate processing (selection) added to waste disposal business at the INAX Eco-Center
Tokoname.
Changed name from INAX Eco-Center to LIXIL Eco-Center

December 2011
April 2012
December 2012
January 2013

Opened LIXIL Eco-Center Sendai. Acquired a waste disposal business permit from Sendai City,
Miyagi Prefecture. Acquired a waste transportation business permit from Sendai City, Miyagi
Prefecture.
Opened LIXIL Eco-Center Sendai.

August 2013

Acquired a waste transportation business permit from Gifu Prefecture.

December 2013

Intermediate processing (compression) added to waste disposal business at the INAX Eco-Center
Tokoname.
Acquired a waste transportation business permit from Ibaraki Prefecture, Gunma Prefecture,
Chiba Prefecture, and Tochige Prefecture.
Acquired a waste transportation business permit from Tokyo, Saitama Prefecture, and Kanagawa
Prefecture.
Acquired a waste transportation business permit from Iwate Prefecture.

October 2013
November 2013
February 201495

Preventing Pollution
At LIXIL Corporation, we manage and monitor our factories in strict compliance with the Soil Contamination
Countermeasures Law and other environmental laws and regulations to ensure that soil and waterways in thevicinity of our factories are not affected by our operations. No infringements of laws and regulations occurred infiscal 2013.
Preventing Soil Contamination
We continue to manage our sites autonomously in strict compliance with the Soil Contamination
Countermeasures Law as our constituent businesses did before merging to create LIXIL Corporation. In
conjunction with the revision of the Soil Contamination Countermeasures Law, we have ensured legal complianceat sites entailing preparation of over 3000m2 of land for the purposes of reconstruction and new construction.
No cases of soil contamination were found in FY2013.
Reducing Water Usage and Maintaining Water Quality
LIXIL Corporation's factories use a great amount of water in aluminum product surface finishing and otherprocesses. In order to reduce overall usage, we promote efficient use of water by carrying out detailed water
usage surveys at each factory (water intake, usage per process and water circulation system deployment),
installing water circulation systems, and implementing various other water conservation measures. We also
strictly manage wastewater, and are implementing various measures to minimize the impact of wastewater on
the natural environment.
Water usage in our production activities
Water intake

FY2012FY2013996,000 ㎥

1,056,000 ㎥

Industrial water

8,544,000 ㎥

6,391,000 ㎥

Groundwater

5,645,000 ㎥

5,033,000 ㎥

19,800GJ

16,400GJ―

3,400GJ (17.2 % decrease)

Tap water

Energy consumption (GJ)
Energy consumption year on year (GJ)

* Excludes sales divisions and stores.
* See here for the targets and scope of the below data
List of Major Water Systems
Japan

Overseas

China

RegionMajor Water System

Hokkaido

Ishikari River

TohokuMogami River / Abukuma River

Kanto

Tone River / Tsurumi River / Ara River

Chubu

Kiso River / Yahagi River Oyabe River / ShŌ River

Kinki

Yodo River / Yamato River / Kumozu River

Chugoku

Yoshii River

KyushuEchigo River

Northern China

Biliuhe River / Hai River

Central China

Yangtze River Lake Tai Huai River

Southern China

Pearl River

Vietnam

Red River Hàn River Mekong River

Thailand

Chao Phraya River96

Compliance
Basic Approach and Promotion System
LIXIL Group believes that the word “compliance” means more than just observing laws, internal regulations andsocial rules; it also includes behaving in a moral way that considers other people’s points of view. In order to put
this form of compliance into action in a thorough way, we have enacted “Group Principles” and worked hard to
spread awareness so that all employees continue to uphold this approach. We have established a Compliance
Committee at the Group level with the aim of raising awareness and strengthening implementation ofcompliance. We give advice on the construction and operation of compliance systems by Group companies, andimplement measures such as the monitoring of legal compliance.

Compliance Education
LIXIL Group provides training based on our Group Principles so that each and every employee increases his or her
understanding of compliance. Specifically, all employees are given an A4-sized booklet and a pocket-sized booklet
containing the Group Principles, and are asked to keep these in an accessible location. In addition, every October,personnel at all workplaces are asked to read the Group Principles aloud together and all employees are asked tomake an oath that they will uphold the Group Principles. In this way we aim to increase awareness of the content
of the Group Principles.
Other initiatives include compiling case studies showing correct behavior in the many situations employees are
faced with in their day-to-day work, and making these case studies available on the company’s intranet.

Internal Reporting System
LIXIL Group has established an internal reporting system with the aims of collecting information on complianceviolations and acting promptly to prevent improper or illegal behavior.
In addition to building systems that allow direct reporting to managers via the intranet, a reporting system is also
operated using external lawyers as a consultation service. Both routes protect the privacy of the reporter, andare managed so as to prevent reporters from receiving adverse treatment.

Receiving Compliance Reports from Suppliers (materials suppliers andsubcontractors)
Through our corporate activities, LIXIL Group aims to be a socially useful company that is trusted by society atlarge. For this reason, we collect information from our suppliers (materials suppliers and subcontractors) aboutcompliance violations committed by LIXIL Group. We have established a consultation service at an external legal
office, and we try to prevent any additional violations by collecting information and acting appropriately.
* See here for more information（Japanese only）

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Intellectual Property Activities
Basic Approach to Intellectual Property Activities
LIXIL’s Group Charter of Corporate Behavior, which acts as a code of conduct for LIXIL Group companies, statesthat “The Group protects and makes appropriate use of its intellectual property as well as respecting theintellectual property rights of others” and LIXIL Corporation has set out its Intellectual Property Management
Rules based on this goal. The aim of the rules is to “Contribute to the development of the business and to
improvements in results at the same time as encouraging creative work at the company and preventing
infringements of the intellectual property rights of third parties,” and these rules form the basis for all
intellectual property activities at LIXIL Corporation.

Intellectual Property Activities System
LIXIL Corporation has established an Intellectual Property Division at its Head Office corporate divisions and has
established specialist units (or appointed specialist personnel) responsible for matters relating to the protectionof intellectual property rights at each strategic business unit and research facility. We hold a twice-yearly regularmeeting, and work to promote company-wide intellectual property activities in our day-to-day work in
partnership with the Intellectual Property Division.

Promoting the Acquisition of Intellectual Property Rights
LIXIL Corporation investigates whether there is prior art in the inventions created at its development
departments, and then makes a judgment on whether there is value, from a business point of view, in submitting
a patent application. This process has been set out under the Internal Rules on Patent Applications. We aim tocreate high-quality intellectual property rights through the thorough operation of these rules.

Preventing the Infringement of Our Intellectual Property Rights by Third Parties
If the intellectual property rights of third parties are infringed during the process of carrying out our business,there is a risk of lawsuits from third parties resulting in the suspension of sales or claims for compensation fordamages. In order to prevent this risk, LIXIL Corporation has set out internal rules for carrying out surveys andinvestigating third party intellectual property rights when starting out a new business, and we implement theserules thoroughly.

Education Regarding the Protection of Intellectual Property
In addition to the thorough implementation of rules, as part of the intellectual property activities described in
the above sections (“Promoting the Acquisition of Intellectual Property Rights” and “Preventing the Infringementof Our Intellectual Property Rights by Third Parties”), LIXIL Corporation actively pursues education that improves
the intellectual property knowledge and skills of employees whose work involves intellectual property. The
curriculum focuses on patents and design in the case of developers and researchers, and on trademarks in thecase of product planning staff. Training is also given to newly-hired employees.

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Risk Management
LIXIL Group Promotion System
LIXIL Group regards all uncertain factors with the potential to hinder the achievement of our management goals
as risks. For this reason, we have built a risk management system at each Group company. In order to promote
this system we have established the LIXIL Group Risk Management Committee chaired by the LIXIL Group
President as the highest decision-making body. Each Group company is managed under the same system. We
have established a controlling department at LIXIL Group Head Office with the aim of carrying out centralized
management of risk across the Group, and we have established risk management offices at each company. Whenmajor risks arise, the LIXIL Group Risk Management Council handles the situation and provides instructions.

LIXIL Corporation Promotion System
Besides establishing a controlling department at Head Office, LIXIL also manages risk horizontally through 20 risk
management groups. As part of our risk management promotion activities, risks are selected on a yearly basis
and assessments are carried out (assessments of impact, frequency and any weaknesses in prevention andfollow-up measures), targets are set, measures are proposed and an implementation schedule is formulated.
PDCA management is carried out on a quarterly basis with the aim of implementing measures, making
assessment and giving feedback.

Business Continuity Plans
In the light of the Great East Japan Earthquake, the flooding in Thailand, and the increased risk of future natural
disasters, we will continue to promote the formulation and development of business continuity plans across all
Group companies.

Outline of Risk Management Promotion System* reference：Latest Annual Report “ Business Risks / Principal Group Companies / Bases / History ”

99Information Security
LIXIL Group places particular importance on the protection of information assets as part of our risk management,
and with this goal in mind we have prescribed the Information Security Management Rules and promoted proper
information management.
We have centralized our information systems administration and management functions at the IT Promotion
Division and Group company LIXIL INFORMATION SYSTEMS CORPORATION (“LIS”).

Management System
LIXIL Group includes a diverse range of businesses and companies. We carry out self-assessments on theinformation security challenges that we are likely to face as part of our information management using
check-sheets based on the Information Security Management System (ISMS), and we use this as the basis for
implementing improvement activities. We have built a management system that includes monitoring by the IT
Promotion Division and LIS.
In the unlikely event that a problem arises, the IT Promotion Division, LIS, the Risk Management Promotion
Division, and the general affairs departments at each business and company work together to minimize thedamage, carry out a company-wide inspection to identify the cause of the problem, and promote improvements
to ensure the same problem does not happen again.

Information Security Initiatives
In order to protect information assets, we have implemented technological measures, such as security measureson our networks and automatic updates for anti-virus software. In order to prevent leaks of information from theiPads distributed to our sales representatives for use outside the company, we have developed a system for the
remote deletion of data contained in iPads in order to forestall potential leaks.
Furthermore, in order to ensure full compliance by our employees with information management rules, allemployees are obliged to undergo annual training through an e-learning program and to sign a “Pledge to
Uphold Information Security Management Rules”. In FY2013, these measures were successfully implemented for
100% of eligible employees.

Protection of Personal Information
LIXIL Group believes that the protection of personal information is an important responsibility, and we havedisclosed our philosophy and policies in relation to the protection of personal information under the Privacy
Policy on our website. By adhering to this policy and our internal rules, we seek to ensure that all our employees
handle personal information safely and appropriately.
Furthermore, in November 2005, LIS obtained Privacy Mark accreditation from the Japan Information Processing
Development Corporation (JIPDEC) as proof to our operating companies and suppliers of its ability to provide areliable service. As part of its ongoing management activities, LIS later passed its biannual renewal inspection
without any problems, and continues to maintain Privacy Mark accreditation.

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Editorial Policy
LIXIL Group has set out a CSR Policy that incorporates “Priority Themes” and “Planned Activities” in the field of
CSR, and we promote activities that contribute to the development of a sustainable society. We have establishedthe following priority theme -“Promote speedy and transparent disclosure and share social contribution visions
with our stakeholders”, and planned activities -“To win and maintain the trust of our shareholders and investors
and achieve sustainable growth in society, we will promote speedy and transparent disclosure of information andshare our visions and plans for social contributions with our stakeholders to facilitate mutual understanding on
this issue.”
The entire Group will provide appropriate and proper disclosures and reports, both within and outside thecompany, and build up a track record of dialog in order to construct ongoing relationships with our stakeholders
and use this as a way of achieving progress in our CSR activities.
We have decided to release information online only, and we will not be publishing a booklet. To replace thebooklet we have set up a CSR activities report page as part of the annual report provided to institutional
investors and we have merged our financial report with our non-financial report. Disclosures of information
made on this website will be used as the main tool for disclosing information so that we are able to communicate
information to a broad range of stakeholders. In addition to annual updates we will publish up-to-date
information as necessary. Significant information and activities related to the corporate governance of LIXILGroup as a whole are reported on the LIXIL Group Corporation website.
* See here for the FY2014 annual report* See here for the CSR and environmental activities of LIXIL Corporation Group
Organizations Covered in This Report
Activities of affiliated companies, including LIXIL Group Corporation and LIXIL Corporation.
When the scope of application is limited for a particular item, this is pointed out in the notes, etc.
Period Covered by This Report
Information relating to the period from April 1, 2013 to March 31, 2014 has been updated and announced as ofAugust 12, 2014.
Major Organizational Changes in the Reporting Period (April 2013 to March 31, 2014).
In Augast 2013, ASD Americas Holding Corp. was welcomed as a new member of LIXIL Group as a subsidiary of
LIXIL Corporation. Financial information has been merged, but non-financial data of the Permasteelisa Group and
ASD Americas Holding Corp. has not been included in the FY2013 report.
Inquiries on the Content of CSR Reports
LIXIL Corporation, Corporate Communications Division (Group Public Relations Department)
E-Mail: pr_hd@lixil.co.jp* See here for the LIXIL Group inquiries form（https://www.lixil-group.co.jp/e/contact.htm）
Please enter “CSR Reporting Inquiry” in the question field.
A questionnaire survey is carried out in related to the content disclosed on this website.
Please feel free to provide any opinions or impressions you have in relation to the CSR management and CSR
activities of the LIXIL Group. We will refer to your opinions in our future corporate activities and when disclosing
information.
* Click here
The LIXIL Group Corporation has received independent assurance from Deloitte Tohmatsu Evaluation andCertification Organization in order to ensure the reliability of “Annual Report 2014, Supplementary Data Book:
CSR-Related Non-Financial Data.”
・“Independent Third Party Assurance Report” on p. 13 of “Annual Report 2014, Supplementary Data Book:
CSR-Related Non-Financial Data” (1,618KB)：http://www.lixil-group.co.jp/e/pdf/ar_e_csrdeta.pdf

101